More Evidence to be Called in
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Metropolitan Area Take-over Bids
THE Metropolitan Licensing Authority is in future to require
statements by applicants for take-over licences that they will continue to serve a reasonable number of the same customers as the vendor of the business. The Authority, Mr. D. I. R. Muir, announced this in his reserved decision on the inquiry called by him into licences held by C. E. Dormer (Leyton), Ltd., and C. E. Dormer (Islington), Ltd. (The Commercial Motor, October 28).
He proposed to take no action against the company's licences, said Mr. Muir, and added: "This does not mean that I approve of the methods adopted by the applicant companies, whereby licences were obtained by sending to the Licensing Authority evidence precisely calculated to make him believe that the Dormer business and customers were to be taken over, as well as the vehicles.
"By presenting evidence of this kind, the applicant companies made the Licensing Authority, potential objectors and, so far as I have been able to ascertain, the Dormer customers believe that the Dormer business was to be taken over by companies with similar names."
If his predecessor had known the true facts at the time of the application by Dormer (Leyton), Ltd., said Mr. Muir, he had no doubt that he would have called the company to a public inquiry. If, at that inquiry, evidence of need had been given only by Harris Lebus, Ltd., some searching questions would no doubt have been asked about the validity and relevance to the applications of supporting letters from Dormer customers and of the purchase of the goodwill of part of the Dormer business.
The disclosures in the Dormer case, went on the Authority. had shown that something more was needed than the preseni evidence which had satisfied the Authority in take-over cases In future a statement would be required by the applicant that he intended, subject to the grant of a licence, to carry on the haulage business of the vendor, and to serve a reasonable number of the same customers.
"This requirement," said Mr. Muir, "will ensure that the applicant is in no doubt that he cannot obtain a licence on the strength of the surrender of the licence of a vendor of a business unless he takes over and runs that business. Furthermore," added Mr. Muir, "the statement would be a clear statement of intention which, if not fulfilled, would enable the Authority to consider the exercise of his disciplinary powers."
In all the circumstances, said Mr. Muir, he would grant the application by Merchandise Transport, Ltd., to add 38 vehicles to its A licence, those 38 vehicles being at present specified on the licences of the Dormer companies. He would also grant a B licence for two vehicles at present on a B licence for C. E Dormer (Islington). Ltd