Northern General and U.A.S.

18th March 1955, Page 84

18th March 1955

Page 84

Page 84, 18th March 1955 — Northern General and U.A.S.

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Placed Needs Too High?

A LLEGATIONS that two large bus companies in the north had over" provided for their needs in applications for higher fares were made by objecting local authorities before the Northern Licensing Authority, last week.

Twenty-two local authorities opposed the application made by the Northern General Transport Co., Ltd., and their associated companies, and 30 objected to that of United Automobile Services, Ltd.

In fairness to the travelling public, the present scale of fares charged by the Northern General Transport Co., Ltd., and their associated companies, should be maintained for a year to watch results, the deputy treasurer of Durham County Council. Mr, J. Cadigan, declared.

He said that after having carefully studied the financial statements issued by the companies. he considered they had "over provided in their applications for higher fares.

Another Adjournment Sought

When the hearing began on Tuesday of last week. the 22 local authorities who were objecting to the proposals made a further unsuccessful attempt to secure art adjournment. The hearing, which should have begun the , week before, was deferred because the objectors said they would need more time to prepare their case (The Commercial Motor, last week).

Mr. J. L. R. Croft, for the applicants, said that since February, 1953, the companies had been faced with incleased costs of £203,000 in a year, When one of the assmfitted companies, Sunderland and District Omnibus Co.. Ltd„ made their last application for higher fares, they underestimated expenditure and overestimated revenue.

For the objectors, Mr. N. Harper said the applicants had not made out a reasonably clear case for higher fares. The companies, he said, were efficiently run and their shareholders were sitting pretty." He added that in the past they had always made more out of increases Than they had estimated.

Yield Untlefflestimoted

Mr. Cadigan said that when U.A.S. applied for higher fares in July last year, the estimated revenue given was about £113,000 less than the actual figure, Mr. W. Steer, for the local authorities, said that the British Transport Commission, who owned all the company's Shares. had taken about £2.8m, out of the undertaking and each year since had applied for help to make a profit. Even if the company were treated as a commercial concern, and not as a quasi-public utility authority, the existing profit was high.

Mr. F. Stockdale, for U.A.S.. said that the company's profit margin last. year was £440.000, equal to 7.1 per cent. on the capital employed. This, he submitted, was not unreasonable. If the application were rejected, the

margin would drop to 5.3 per cent, but, if approved, the profit would he about £395.000. equal to 6.4 per cent.

'Thirty-six per cent. of the company's stage services ran into rural areas and many were operated at a loss. Without assistance, the unremunerative mileage would increase to 40.4 per cent, and some of the services might have to be cut.

Decision was deferred.

NO FREE PASSES?

PASSES issued to councillors and corporation officials to allow them to travel free on municipal buses Should be withdrawn. Newcastle upon Tyne Transport Committee have recommended to the city council. Legal opinioin is that the corporation have no powers to grant such passes.