"Defence of the Realm" Losses Commission,
Page 18
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The Hearing of the Claim of the Gamage-Bell Motor Cab Co., Ltd., for £29,807.
Before the Defence of the Realm Losses Royal Commission, held at Spencer House, St. James's, on Friday, an application was made by the liquidator of the Gamage-Bell Motor Cab Co., Ltd., for £29,807 compensation in respect to the taking over.by the Royal Flying Corps of their works and storage at Rbury Bridge Road, Pimlico, on 1st February, 1916. Sir James Woodhouse presided.
Statement of the Case.
Mr. Wootten, in stating the case for the claimant, said the claim had now, been considerably modified. The company was formed in 1909 and paid its way down to the year 1915, and made a profit. The profit for the year 1914 was, roughly, £2000. In that year and since that date the premises had been in the market as a going concern at a price of £60,000.
• Negotiations had been started in 1914, but they were stopPed by reason of the war. In 1915 the business was not successful, the profit and loss account for that year, after writing off various sums, showing a loss of £2017. In December, 1915, by reason of the darkened streets the difficulties in obtaining drivers and petrol, spare parts, and so on, the cabs were taken off the streets. On the 20th December, 1915, at a meeting of the directors, the managing director reported that he was seeking munition contracts, and advised them that, in the event of non success, they should propose at the next general meeting that the company be wound up. That report was adopted by the directors. The position at the time of the requisition was this : the normal business of the company was suspended. They were seeking a fresh outlet in munition work, and, failing the obtaining of that, they proposed at the next general meeting of the company to propose a resolutipn for its winding up. Consequently, on the 5th March, 1916, an extraordinary general meeting was held, and a resolution was passed for the voluntary winding up of the busi'less of the company, Sir David Burnett being appointed liquidator. Proceeding, Mr. Wootten dealt at some 'length on the presentation of the company's claim to the commissioners. There were, he said, two assumptions upon which the claim could be based. There was the assumption that the company would have continued on the premises and engaged in business as a munition firm. That assumption would not have been far-fetched, because he thought it would be agreed that the premises were admirably adapted for that purpose. On the other hand, there was the assumption that the company would have failed to get munition work, and would go into liquidation, realizing a reasonable price for plant and machinery, and would have made arrangements to dispose of its cabs and other rolling stock. It was the latter of the two alternatives that had been adopted in presenting the claim. There was no claim for goodwill or disturbance of business, but there was a loss sustained by reason of the sale of motorcabs, rolling stock, and spare parts, being a forced sale, instead of by liquidation. The cabs were purchased at £375 each six years ago, and they were sold, roughly, at the price of £100 per cab, including spare parts.
The Liquidator's Evidence.
Sir David Burnett, liquidator of the company, giving evidence on behalf of the application, stated that the floor space of the premises was 65,000 sq. ft. The sum which the premises would have brought in to the company, on a repairing lease, but for their occupation by the Government, would have been £3250. The. area was just 1i acre, and in his opinion there would have been no difficulty in obtaining a tenant on lease on that basis. The premises were specially adapted for an engineering business, and were very suitable for practically any business, because there was so much floor area. From his experience the demand for such premises had increased since the war. The value of the plant and machinery left on the' premises had been agreed upon at 81353. As to the life of the machinery, some of it would be two or three years, and some of it, of course, much longer. They were compelled to, remove the cabs as they'could not get storage for •them. In reply to Mr. Samuels, who appeared on, behalf of the Crown, witness said he understood the company had an application as to whether they would sell, but not whether they would let the premises. They said they would sell for £60,000. It was singularly eligible property, • and there was less risk CM • of these premises being vacant than the majority of premises. The premises could be let on a repairing lease for 21 years, but that was a very different thing to lesting them to the Government for a year or so. They would, he thought, lose their market by this occupation of the premises. With regard to the life of cabs of this character, he thought that with ca,re there should be some value remaining even after 10 years. As to the forced sales, he thought he could have done better if he had had more time.
The Chairman : You mean you would have got a better • pr'co if you had been ale:e to keep them on these premises, and to sell them on the premises? Witness replied in the affirmative. Mr. Breach, a member of the firm of Messrs. Fairbrother, auctioneers and land valuers, gave evidence to the effect that he had inspected the premises in question. They occupied a very fine position, and had a floor space of 65,000 sq. ft. In his opinion there would have been no difficulty in February, 1916, having regard to the demand for premises for engineering pnrposes, in obtaining a rental of £4000 a year.
Prospects of Letting.
Mr. Samuels : What do you say about the prospects of letting premises of that sort? Witness said it might take a month or longer. Everybody knew the difficulties in finding tenants, but these premises were particularly adapted for many purposes. Given drivers and facilities, he did not think there would be any difficulty in ordinary circumstances in finding tenants for these premises at £4000 a year. A member of the Commission having observed that the circumstances now prevailing werii abnormal, witness said he did not think there would be any difficulty in obtaining within a few weeks a tenant at the rent Ile had mentioned.
Evidence of War Office Surveyor.
Captain Wise, one of the surveyors of lands for the War Office, stated that he had carefully inspected the premises referred to in this case, and in his opinion the proper rental at the present time would be £1875 a. year. He based his figures on the prices which had been paid for similar buildings in various parts and on the prices now being asked in .the district. The premises were constructed for a motorcab garage, and at the present time.he thought it would be impossible to let them to any other cab company.
Mr. Samuels: Do you think there is a prospect of getting another tenant if the War Department had not come in?
Witness replied that the possibili.ies were fair, and a tenant might probably be got by 25th March at the rental he had named.
Mr. Samuels: What is your opinion about getting a tenant at £4000 a year?
Witness: I think it is impossible. • Mr. Samuels: With regard to the plant and machinery (£1353)—assuming that the Flying Corps do not take it over what do you say is a fair rental for that part of the machinery? Witness: Inasmuch as the machinery would be kept in good running order, and well looked after, I consider 10 per cent, would be a fair rental.
Statistics from the Accountant.
Mr. .Tilley, accountant, who had made an investigation of the business on behalf of•the Crown, gave statistics showing, amongst other things, that there bad been profits made by the company in 1911, 1912, and 1913, and losses in 1914 and 1915. In the four years before 1916 the takings were £49;265, £46,690, £35,048' and '227,255 respectively. In the opinion of his firm, no taxicab would last: more than four years.
In reply to Mr. Wootten, witness said the company had considerable (Wets in stocks and shares, which could have been Well employed, in munition business. . • • Mr. Hudlass, Royal Automobile Club engineer, said he had seen the cabs which belonged to the applicants, and, taking them all round, he had come to the ,conclusion that an allround price of about £80 each was a fair and reasonable sum for the cabs. ' • .
The Commissioners' decision 'was to determine payment at the rate of £2000 a year, together with a lump sum of £2210. The decision on the question of reinstatement was reserved