Yorkshire Traction Want 10 0 /0 Yield on Capital
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" XPERIENCE has shown that in JLi these days of ever increasing labour and commodity costs, expenditure estimates covering a period up to two years are considerably wrong. The figure now envisaged is £130,000 gross, hut if . it can only be reached in a phantom year ending two years hence, then there is little prospect of the target ever being achieved," said Mr. F. A. Stockdale, at Barnsley on Monday, when the Yorkshire Traction Co., Ltd., applied to the Yorkshire Traffic Commissioners for permission to increase fares in order to yield an extra £52,000 in a year.
Mr. Stockdale went on: "It is therefore maintained that it is both fair and reasonable for the company's income to be so increased as to produce £130,000 gross profit in 1957, which will mean 10.08 per cent, on the capital employed."
Earlier, Mr. Stockdale had said that a year ago proposals were put forward which, in a full year, would produce £136.000. The application was not granted in full but, With the benefit of higher fares on express services, would have yielded £134,000 in 1957 if costs had remained steady.
Profit Less Than Reasonable It was estimated that the gross profit for 1956 would be £113,500, but as the grant was not in full the figure was reduced to £108,500. 'Higher costs had cut the total gross profit to £97,748, or £32,000 'less than the figure considered by the Commissioners to be not unreasonable four years ago.
Mr. Stockdale said that after allowing for resistance, it was estimated that the current proposals would produce £52,000 in a full year, of which £43,000 would accrue in 1957.
The application included a proposal to withdraw workers' returns. "In the opinion of the company," said Mr. Stockdale, "preferential fares for
workmen can no longer be justified in principle, but so as to minimize the effect between stages where, at the present time, workmen's return tickets only arc issued, the substituted single or ordinary return fare will be such that the increased cost will be no more than 2d. for the return journey."
Mr. S. Hill, a financial expert, who appeared for Barnsley Borough Council and I t urban authorities, said the company's resistance figure of £5,500, and the 10.08 per cent, yield on the capital employed, were too high. Two rural councils also objected.
The Commissioners reserved their decision.
[Other news of fares appears on page 25.1 AGREEMENT ON FARE RISE THE corporations of Hartlepool and West Hartlepool have agreed to a Id. increase in 2id. and 3d. fares on the controversial inter-town bus service. The rises will take effect on February 11.
HULL LOSS NEXT YEAR?
FOR the first time in three years, Hull Transport Department faces a loss in 1957-58. There was a surplus of £22,714 last year, and one of about £6,780 is expected this year. The loss in the forthcoming year is estimated at £36,200, the expected final deficit being £6,700.
BIG C.U.T.C.S.A. ORDER
QPERATORS of over 300 Leyland • buses in Montevideo, the C.U.T.C.S.A. undertaking has placed a new order, worth over £250,000, for Leyland Worldmaster buses with twopedal control. The vehicles will be similar to those placed in service in the city and other parts of Uruguay last year. C.U.T.C.S.A. is a co-operative undertaking.