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Commissioner and Uneconomic Competition

2nd November 1945
Page 36
Page 36, 2nd November 1945 — Commissioner and Uneconomic Competition
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Which of the following most accurately describes the problem?

IN support of recent applications for 1 authority to operate new stage. carriage services between Malton and Dritheld and Mallon and Bridlington, stress was laid upon the reduction still applied to the bus-travel facilities provided in the districts concerned, as compared with pre-war days. Refusing the applications, the Regional Transport Commissioner—Major F. S. Eastwood—stated that he was satisfied there was a need for augmented -services, but existing operators must be given opportunity to supply the public need.

The applications, into which the Commissioner held an inquiry at Bridlington, were made by Mr. 1-1 Hodgson, of DuggIeby, who asked for permits to provide stage-carriage services between Malton and Driffield On four days per week, and between Malton and Bridlington on one day per

week. He had the support of the Bridlington R.D.C. and the Bridlington U.D.C. Objections were put forward by East Yorkshire Motor Services, Ltd., the West Yorkshire Road Car Co., Ltd., and the L.N...E.R.

Stating that he sought particularly to provide facilities for the farming community, Mr. Hodgson pointed out in his evidence that farmers sometimes entrusted him with cheques to be cashed on their behalf at a town bank. For the bus company principally involved—East Yorkshire Motor Services, Ltd.—it was emphasized that were services in the districts in question w cut only because of war-time need for economy in fuel, rubber and inan power. The submission was made to the Commissioner that the applicant's proposed services would be uneconomic, and that they would involve abstraction of traffic from the company's services in question, which-Were already unremuneratitte, even_ if there be an agreement with applicant as to fares and timing.

The West Yorkshire Road Car Co.. Ltd., objected On similar grounds., The L.N.E.R. objection pointed out that there are three passenger stations in the area involved.

In reply to the objections, it was submitted that the applicant had proved need for the services he pro posed. The case was one in which large vested interests were ranged against enterprise by a small operator.

Refusing the applications, in a reserved decision, the Commissioner took the view that if a newcomer were to be granted stage-carriage permits in respect-of the two routes in question, he could . provide services only by taking traffic • from the existing operators, and uneconomic competition would result.

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