Mr.Wills' Warning on Non-paying Services
Page 25
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AA WARNING that unremunerative services, particularly i.n rural areas, would have to he reduced if costs continued tO rise, was given by Mr. J. S. Wills, chairman of East Yorkshire Motor Services, Lid., at the company's general meetin.g last week.
"If our real costs, particularly wages, continue to rise without a substantial reduction in the artificial costs represented by the tax on Derv," said Mr. Wills, " the point will soon be reached where further increases of fares would he of no benefit to us; that is to say, the law of', diminishing returns will begin to apply."
When that position was reached the only course left would be to reduce unremunerative services, particularly in rural areas. It was not -something which he liked to contemplate, but the remedy, he said, was in the hands of the Chancellor of the Exchequer.
Economies had been effected by the employment during the year of a number of lightweight vehicles.
The number of passengers, at 34im., and mileage, at just over 10m., had created new records. They were not, however, the result of a general upward trend in traffic, but were mainly attributable to the purchase of Messrs. Everingham Bros., Poeklington, towards the end gif Revenue at 023,000 was some 03,000 more than in the previous year. There was no doubt, however, that the poor weather experienced during the summer had materially affected receipts, for the Company were dependent to a large extent upon holiday-makers.
. The company's joint working agreement with Hull Corporation which began in June, 1934, continued to operate to the satisfaction 5,f both parties and m the travelling public.
A DAY LATER
BECAU.SE of the Christrrias holiday, the next issue of The Commercial Motor, dated December 31, will be published on Saturday instead of Friday.