The Motor Omnibus World.
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Fiat Motors, Ltd., of Long Acre, has just received a repeat order for six omnibus chassis from the NorthEastern Railway Company, which had ten similar chassis last year.
Two interesting reports will be found on page 159. The first of these, in regard to the Much Wookon licenses, is the outcome of the proceedings which we briefly mentioned in our issue of the 2151 November last (Vol. VI, No. 141, page 270). It will be noted, with regret, that Blackburn has failed in its application for powers to run motorbuses.
A Further Offer.
Messrs. Wheatley Kirk, Price and Company will offer 72 motorbuses, on behalf of the receiver appointed by the mortgagees of the London Power Omnibus Company, Limited, together with the extensive garage and equipment at Langton Road, Crickletvood, on Wednesday, the 6th proximo. The sale will be held on the premises, and • will begin at it a.m.
Other Arrangements Made. Mr. Justice Neville, on Tuesday . morning last, had in the list for his court the application of the Dunlop Rubber Company, Limited, for a compulsory winding-up order against the Vanguard Motorbus Company, Limited. Nobody attended to represent the petitioning company, and the Judge declined to allow other creditors who were present to be substituted. In the result, on the company's agreeing to pay everybody's costs, the petition was dismissed.
Acceleration.
The Executive Committee of the C.M.U.A. has unanimously passed the following resolution : "That this committee suggests to the R.A.C. the undertaking of a series of acceleration tests, extending over one or two days, such tests to be held at an early date, and in respect of public-service vehicles which are constructed to comply with the Metropolitan Police Regulations, limited to a maximum of 35h.p. (R.A.C. rating), and to carry a standard, double-deck omnibus body." We hope it may be possible to arrange these for an early date.
The Reduction of Skidding.
The Highways Committee of the Westminster City Council report that, it having long been noticed that the granite chippings, which have been used for ballasting asphalt carriageways, after being ground into powder form, with the generally oily nature of the dirt, make a substance in which motor vehicles easily skid, it gave instructions for a trial of suitable sharp sand for ballasting asphalt roadways. Ballast composed of Thames sand and crushed Thames ballast-sand has accordingly been tried on the asphalt paving of Victoria Street, for some weeks past, and, being satisfied that these materials are superior to granite chippings, the Committee has decided in favour of their use.
Vanguard Proceedings.
In the Chancery Division before Mr. Justice Warrington, on Monday, Mr. Gore-Browne, K.C., moved, on behalf of the plaintiff in the debenture holder's action—Parsons v. The Vanguard Motor Bus Company—for the appointment of a receiver and manager of the business• of the defendant company. The grounds on which the application was based were that the directors of the Vanguard Company had endeavoured to drive the debenture holders into a line of action prejudicial to their interests by threats that the business would be discontinued; and that the security of the debenture holders was seriously imperilled and jeopardised by the manner in which the business was being conducted. Mr. Gore-Browne stated that the Vanguard Motor Omnibus Company was registered on 4th January, 1907. To provide capital, debenture stock carrying interest at six per cent. was created for 4.500,000, and secured by a trust deed. The initial issue of the stock was for .200,000. During 1907, the company issued a further LI 10,000 worth of stock, as security for an advance of ,5o,000. Last month the trustees for the debenture holders, who are Sir Alfred Newton and Lord Armstrong, learned without any previous warning that the company had made a conditional agreement with the London General Omnibus Co. for the amalgamation of the two businesses. One of the terms of the amalgamation was that the unsecured creditors of the Vanguard Co. should be paid in full, but that the debenture holders should
accept 16s. in the for their stock and that the rate of interest should be reduced from six to five per cent., and in the amalgamated company Vanguard debentures were to take third place. Mr. Gore-Browne proceeded, in order to show that pressure was brought to bear upon the debenture holders to induce them to fall in with this arrangement, to relate conversations which Mr. Wheeler (Chairman of the Vanguard Co.) had with the debenture holders' trustees, and quoted from a speech Mr. Wheeler made to a meeting of the debenture holders. Mr. Wheeler said the company had trade creditors to the extent of ,4'4o,000 and that the majority of them were pressing for payment ; and that unless the amalgamation scheme went through the company could not possibly carry on business, and must at once go into liquidation. On another occasion, he spoke of three petitions having been presented for the winding up of the company and a number of writs having been issued. To a meeting of debenture stock holders, Mr. Wheeler said : " Can our company be carried on at a profit sufficient to pay the debenture interest? The directors say deliberately that it cannot, unless at least £5o,000 is provided for working capital, and the only manner in which such a sum can be raised is by a security placed in front of your debentures." Continuing, Mr. Gore-Brow-ne mentioned that a motion for the appointment of a receiver was being made in another court by a nominee of the Vanguard Company. Mr. Upjohn, K.C. (for the company) : " It will be discontinued if this motion is refused."
Proceeding, Mr. Gore-Browne quoted from the trust deed setting fortb,. the debenture-holders' security, a clank to the effect that the security was enforceable if the company threatened not to carry on the business. He submitted. that the statements of Mr. Wheeler constituted such a threat. Dealing with the alleged jeopardy to the debenture stock holders' interests, Mr. GoreBrowne said the trustees found that since March 3ist further mortgage debenture stock amounting to 4'75,800. had been issued to secure a loan by the Bank of ‘,25,000. The position of affairs showed the greatest possiblejeopardy to the debenture holders. Thetrade debts were over .4.4o,000—only .25,000 was being borrowed to meet them, so that further petitions might be expected. Then when a winding-uporder was made the debenture holders would find £75,000 of debentures ranking with them, without the estate having obtained any accession of capital. Jeopardy arose through the company giving outside persons this enormous security. The crash must come sooner or later, for the company could not long conduct its finances in this extravagant way. This additional stock had been raised on absolutely ruinous terms, and he was desirous of finding out from Mr. Wheeler what those terms were, and, therefore, he asked for cross-examination.
After the affidavits filed on behalf of the company had been read, Mr. Justice Warrington said he felt he ought not to accede to the applieatiorb for cross-examination. It was asked for, not for the purpose of disproving anything Mr. Wheeler had stated in the affidavits, but for the purpose of obtaining a roving commission with a view of establishing a case which the plaintiffs had not hitherto established.
Mr. Cozens Hardy also addressed the Court on behalf of the plaintiff, and his Lordship, without calling on the defence, said that in his opinion there had been no threat by the company, and even if what Mr. Wheeler said could be construed as a threat, there was no evidence that he was authorised by the company to state that they would not carry on the business, but, as a matter of fact, his Lordship regarded Mr. Wheeler's remarks as a private expression of opinion. Therefore, the security was not enforceable; nor did he think, having regard to the contract entered into between the debenture holders and the company, that the assets were in jeopardy. This wasnot a case in which the court ought to consider it just and convenient, before the security became enforceable, to. stop the business from being carried on, by the appointment of a receiver.
[It had been expected that Mr. Wheeler croufcl have been oross-examined on big aflidavits.—au,
We continue to hear good reports of the wearing qualities of Shrewsbury and Challiner tires, some 24 sets of which were fittedto heavy vehicles in the Olympia Show.
At an extraordinary general meeting of the Fylde Motor Service Co., Ltd., held at Manchester, a resolution was passed that the company be wound up voluntarily, and that Mr. John Cameron, managing director, be appointed liquidator.
Another Sequel.
At an extraordinary general meeting of Motor Vehicles, Ltd., held at Bury r(Lanes.), a resolution was passed declaring that the company cannot, by reason of its liabilities, continue business, and that it be wound up voluntarily. Mr. J. L. Merchant, accountant, Bury, was appointed liquidator.
Services at Swansea.
The two applications before the Corporation of Swansea, in regard to services to the Mumbles, are from the following parties (I) The Pontardawe Motor Car Company, Ynismeudwy, SWansea Valley ; (2) Mr. Charles E. Beynon, Laneston, Cromwell Street, Swansea. The British Wagon Company, Limited, of Rotherham and Swansea, advises us that it is in no way interested in the proposed services. The Continental Caoutchouc uml Guttapercha Company, Hanover, has arranged for a loan of .,too,000 from the Kommerz und Diskonto Bank, redeemable at a premium of three per cent., and subject to interest at the rate of 41 per cent, per annum. This amount will be devoted to strengthening the working capital.
South-coast Excursions.
The excursions that were run by the Sussex Motor Road Car Company, Limited, last year with its Thornycroft chars-a-bancs proved very popular on the south coast. The ccmpany is preparing to extend the facilities this year all along the south coast, from Hastings to Bournemouth, and it will be possible for passengers in the seaside areas of these towns to visit the beauty spots of the neighbourhood. Several new too-mile tours are to be arranged, of which we hope to give particulars after Easter, but, in the meantime, it is interesting to learn that the company is building a number of improved chars-abanes bodies, which are to be known as motor coaches, and which are the designs of Mr. Douglas Mackenzie, M.I.A.E., consulting engineer to the oompany. These will be built by Christopher Dodson, Limited, and will have a canopy and a glass screen at the back. The seats will be arranged so that each row is five inches above the row in front, and by this means everyone will get a clear view. It is intended to employ Thornycroft, Milnes-Daimler, and M. 0. C. chassis, a number of which are now in hand for the approaching season. Much WooIton Licences.
Before the Lord Chief Justice, Mr. Justice Ridley, and Mr. Justice Darling, in the Divisional Court, last week, a ruling was asked for on the refusal of the magistrates of Much Woo!ton, near Liverpool, to state a case in a prosecution of John Ansonia for plying for hire with a motor omnibus without a license.
The facts of the case, as set forth in an affidavit presented to the Court by the magistrates, were that the defendant was in the habit of plying between Liverpool and Much Woo1ton. The Urban District Council of the latter place refused to grant him a license, although he had one from Liverpool Corporation. Ansonia then exhibited a notice in his bus to the effect that no charge was made for the two-mile journey from the starting place in Wootton to the boundary, but that thereafter the charge to Liverpool would be 3d. He was summoned for plying for hire without a license and fined -LI and ten guineas costs. The magistrates con
sidered the notice a device to evade the statute and regarded the request to state a case as frivolous.
Mr. Justice Darling : Why was the license refused?
Mr. Rigby Swift, for the justices, said the ground of refusal was that there was a sufficient service of buses in Much Woolton and also that John Ansonia's vehicles were of a cumbrous type and unsuited to the roads of the district. Mr. Swift added that the prosecution was taken under the Towns Police Clauses Act, 1889, and by its provisions the driver of a vehicle plying for hire was at liberty to take passengers into a prescribed area but not to stand or ply for hire within the prescribed area. To have been on the safe side, the bus should have returned from Wootton to the Wcx-)Iton boundary empty.
Mr. H. L. Riley, for the appellant, complained that, at a meeting of Woolton Urban District Council, the refusal of the license to Ansonia was moved by one director of the rival bus service, seconded by another, and voted upon by shareholders. (Laughter.)
The Lord Chief Justice : We are not considering these iniquities. The fact remains that the bus was unlicensed.
Mr. Riley urged that, as no passengers were invited to take seats in the bus at Vv'oolton and no fares were taken, Ansonia could not be said to ply for hire.
The Lord Chief Justice, in giving judgment, said the case was one quite worthy of being considered, and on the whole he thought the magistrates ought to have stated a ease. Still, having heard the arguments on both sides, he came to the conclusion that the magistrates were not far wrong when they said the defendant's action was merely a device to evade the law. The rule must be discharged. Mr. Justice Ridley agreed, and Mr. Justice Darling, in signifying his concurrence, said with a smile that this was not so much an evasion of the Act of Parliament as a deliberate attempt to drive an omnibus through it.
The appeal was dismissed with costs. and we note that Mr. Ansonia has sincebeen fined on five summonses.