PRINCIPLES OF FARE FIXATION
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WHERE monopolies prevail, the VV public is entitled to benefit by such low fares as it may be possible to introduce, as a result of any surplus over and above an adequate profit to give a suitable return on capital. In defining a reasonable profit, regard should be had to the considerable risks which the road-transport business involves and to the high standard of efficiency of management, which is essential in the public interest.
These views were expressed by the Western Traffic Commissioners in their decision on an application affecting the .Torquay operations of the Devon General Omnibus and Touring Co., Ltd. The Commissioners added that, in their view, they were entitled to take into consideratiOn financial results that were disproportionate to the money laid oat upon an undertaking.
They concluded that, on a number of the Devon General services, the fares were unreasonably high. The COMpany's average receipts per mile on services operating entirely within Torquay were 13.99d.
The Commissioners decided that 1.1d, per mile would be a reasonable basis for ordinary single and return fares, with the minimum fare of ld. Such a rate would, they considered, provide an adequate profit.
MORE BUSES FOR GLASGOW?
LASGOW Town Council has decided to remit to the transport committee the investigation of the possibility of making various new departures, including the substitution of buses for tramcars on certain routes.
LEYLANDS FOR LONDON.
THE additional IN trolleybuses that I. have, as reported in last week's issue of The Commercial Motor, been ordered by London Transport, will he Leyland 70-seaters with metal bodies by the chassis maker.
"EAST KENT" DEALS PAY WELL
ABSORPTION of the Isle of Thanet transport business and Dover COIporation's system has brought successful results for the East Kent Road Car Co. Ltd. The fact was mentioned' by Mr. Sydney E. Garcke (chairman) at the company's .21st ordinary genetal
meeting. .
During the year under review, the company also acquired certain other lesser undertakings, which have been • co-ordinated with the main business and are giving improved results. Already, said Mr. Garcke, the travelling public and the shareholder were benefiting from the rearrangements effected.
The profits at Dover admitted of a contribution to the corporation, which partners the company in the operation
of the local transport services, " think that, so far as their transport interests are concerned," said Mr. Garcke, "the ratepayers are better oil than they have ever been before."'