MERTHYR'S BUSES SHOW A PROFIT.
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A municipal Service which Shows a Substantial.Frofit for the First Year's Working.
MHE Merthyr Tydfil borough Areal_ surer has just presented to the council a summary of the financial 'situation of the bus. undertaking at the end of the first completed year of operation. The period of trading dealt with is that from August 15th, 1924,' to August Itith, 1925. The bus fleet increased to 12 vehicles in this period, and, on the basis that the vehicles have been in operation a year, the profit amounted to an average of £250 per 'bus
per annum. • The net profit of £2,904 made in the year represents 20 per cent, on the capital of the undertaking, i.e., 115,500, and is arrived at after making all capital and loan charges and balancing all working and maintenance costs against 'the gross revenue of the undertaking.
The council's Act of 1920 empowered the creation of a reserve fund of twofifths of the total existing loans on the enterprise, and it was resolved to make no allocation of the profits to the relief of rates, but to vote the whole of the £2904 to form the nucleus of a reserve which was fixed at a maximum of £6,200.
On the motion of Mr. John Williams, chairman of the bus committee, a resolution of thanks was accorded the bus manager (Mr. D. F. Adey), for the successful working of the services. Mr.
Williams characterized the. results as showing that Merthyr owned one of the most successful municipal 'birs services in the country.
Returning thanks, Mr. Adey said that, whereas the service would again show a . profit in the current year, he wished to warn the 'council not to expect .a profit on such large scale to he maintained. Wages would incfrease, he said, and the effect of the railway campaign. of cheap fares and more frequent trains must not be underesti
mated. • It Was reported that the Pontypridd Urban District Council delegates had promised to recommend the sanctioning of ,the services between Merthyr Tydfil and 'Pontypridd which the Merthyr authorities wish to establish. This will involve fleet eitensions and plying for hire on a route 12 miles long. The council decided to press the PolityPridd Council to expedite its decision.
The credit side of the accounts show that traffic receipts ambunted to £14,502, whilst on the debit aide traffic expenses absorbed £7,563, cost of repairs and maintenance £1,353 (buses £1,100 and garage 1283)-, and general expenses 11,296. The 'gross profit, which is carried to the net revenue account, is returned at £4,587—a most satisfactory result.