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OPERATING ASPECTS

21st July 1931, Page 56
21st July 1931
Page 56
Page 56, 21st July 1931 — OPERATING ASPECTS
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Which of the following most accurately describes the problem?

of Passenger Transport

EFFECTS OF TRADE AND WEATHER ON TRANSPORT

rnHE latest annual report of Birming

ham Corporation's transport department shows a net profit of £249,071, as compared with £270,963 in the previous year. The tramways and omnibus committee states that there was a decrease of passengers on the trams, buses and trolley-vehicles of over 4,000,000.

The year has been the most difficult one in the history of the undertaking, due to bad trade and adverse weather conditions. Many works have been entirely shut down for long periods, whilst others have been on continuous short time. As a result the department has lost not only the worker as a passenger, but also his family, because of the shortage of money.

The committee desires to impress upon the council the fact that a bus must earn £350 profit per annum to cover its capital charges, and the council will, therefore, appreciate the costliness of meeting the demand for transport during the morning and evening " rush " periods, because every additional vehicle put into service places the department in a worse financial position. Many buses complete only four journeys a day, and over 70 per cent. are lying in the garages during the slack hours.

The development of the housing estates on the outskirts of the city has considerably accentuated this difficulty. The housing estates are, in reality, small towns with their independent shopping B38 centres and facilities for amusement and recreation. This results in an acute peak in the morning and early evening, with practically no mid-day or late evening traffic.

Despite the fact that during the year additional bus services have been inaugurated and the number of buses in service has been increased by 65, the total gross profit from all services falls short of the previous year's gross profit by 111,000. This reduction in the_gross profit would, states the committee, have been much greater had it not been for the exceptionally low operating costs of the motorbuses.

The policy of the committee in purchasing the bus undertaking out of revenue, although financially sound, tends to obscure the financial position of the department. Neither depreciation nor loan charges appears in the accounts in respect of the garages and vehicles, and this results in a much larger net profit being shown than • would otherwise be the case. If the bus undertaking had been capitalized, an additional charge of £105,419 would appear in the accounts, representing interest and sinking-fund payment, and the amount available for transfer to the reserve fund would have been only £52,349.

The total revenue of motorbus services was £856,712, or 15.983d. per busmile. Expenditure was incurred under the following headings, the figures per hus-mile being given in parentheses:—

Traffic, 1292,905 (5,465d.) ; repairs and maintenance, 1134,565 (2.51d.) power, 1127,837 (2.885d.) ; general, 132,742 (.611d.) ; licences, £28,862 (.539d.) ; and Birmingham superannuation scheme, 1926, £16,101 (.3d.). Thus the total expenditure was £633,015 (11.81d per bus-mile) and the balance carried to the net revenue and appropriation account was £223,697.

The revenue from the trolley-buses was £27,583, or 17.785d. per vehiclemile. The following are the various items of expenditure, with the figures per bus-mile given in. parentheses : Traffic, £10,021 (6.098d.) ; repairs and maintenance, £5,875 (3.575d.) ; power, £2,670 (1.625a.) ; licences, £1,592 (.969d.) ; general, 1956 (.582d.) ; and Birmingham superannuation scheme, 1926, 1584 (.355d.). The total expenditure was £21,698 (13.204d. per vehiclemile), whilst the balance remaining to be carried to the net revenue and appropriation account was £5,885.

Birmingham Corporation is the largest municipal operator in the country and in March last it was running vehicles of ADC, Guy, Leyland, Daimler and Railless make. Recently 10 Morris-Commercial buses and 60 A.E.C. chassis were ordered.

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Locations: Birmingham

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