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DETAILS OF THE PROPOSED BRIGHTON MERGER REVEALED

28th July 1933, Page 62
28th July 1933
Page 62
Page 62, 28th July 1933 — DETAILS OF THE PROPOSED BRIGHTON MERGER REVEALED
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Ministry of Transport Inquiry Occupies Two Days and Discloses Interesting Plans 4S briefly announced in last week's issue, the Ministry of Transport inquiry into the proposal to form a company representative of the interests of Thos. Tilling' Ltd., and Brighton Corporation took place on Wednesday and Thursday last. A public poll on the subject will, as foreshadowed in last week's issue, be held to-day (Friday). At the inquiry a large number of in terests was represented, and a fair amount of opposition was forthcoming.

Early in the proceedings it was suggested that the sale of the tramways would be. illegal and that the inquiry was ultra vires, but the inspector who heard the appeal, Mr, W. Henderson, K.C., pointed out that any submission or argument would be included in his report to the Minister.

It may be recalled that, in 1928, Brighton Corporation and Thos. Tilling, Ltd., entgred into negotiations with a view to amalgamating their undertakings. In 1931 a Bill was promoted for the formation of a transport board, which would have had a monopoly in its area. The measure was, however, rejected, but later negotiations were reopened, and a new agreement has been reached.

It is not now suggested that the new company should have monopolistic powers. The parties to the proposals asked the Minister whether he was prepared to agree to the amalgamation.

The profits would be shared on a fixed basis, and the new company would be directed by three representatives of the private concern and two of Brighton Corporation, the chairman being a Tilling director. The ordinary shares would be held by the Tilling organization, and the agreement would be in force for a minimum of 42 years.

Provision is made for Hove Corporation to join the undertaking, its share of the profits being paid out of the surplus allocated to Thos. Tilling, Ltd.

Mr. C. J. Spencer, an important official of the London Passenger Transport Board, in giving evidence, stated that, in his opinion, the scheme under consideration was the only possible means for dealing with the transport services. He also explained that under • the Brighton Consolidation Act, 1931, the corporation had power to abandon its tramways if the merger were not proceeded with.

It was shown that the average profits on the tramways during the past three years were £30,284 per annum, the surplus of the Tilling organization being £62,509, whilst it was expected that the new company would make a yearly average profit of £84,473. Dbring the year ended March 31, 1931, the trams carried 26,000,000 persons, the buses conveying 38,000,000.

During the second day's proceedings it was explained that the proposed company should deduct from the corporation's share of the profits the cost of reinstating the highways, as the result of abandoning the trams, the expense being estimated at £31,153. On March 31 last there was a debt of £55,932 outstanding _ on the trams.

In support of the scheme, it was submitted on behalf of Thos. Tilling, Ltd., that, even should Brighton Corporation decide to run its own buses, there would be the same difficulties in connection with routes and fares as obtain at present with regard to the trains. Moreover, tho Traffic Commissioners would probably not license additional bus services when efficient facilities of this class were already in existence.


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