"North-Western Bids Too Modest"
Page 57
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THE North Western Road Car Co., Ltd., were asking for the first time to pass the cost of an increase to their passengers because it was in their own interest. The company had been too modest in the past and the tide was still rising. They would be earning only just over 5 per cent. on the capital invested if no increase were granted, and they were asking for nearer 11 per cent., said Mr. S. D. Herington, for the company, when they applied for higher fares to the North Western Traffic Commissioners, at Stockport, last week.
Mr. Herington said that to meet increased costs and running expenses the company required 1138,254 a year. The proposals to introduce a 2d. minimum fare, to add Id. or id. to all single fares, and to raise workmen's fares by doyble the corresponding single fare increase, would bring in an estimated £.137,818.
Stage services accounted for 82.94 per cent. of the whole mileage, and were running at a loss. Costs in 1956 were times those in 1939, and by 1958 would be three times as much. In the past seven years the average figure spent on the replacement of vehicles was £270,754.
Increased costs had to be borne several months before fares could be raised, and the delay this time had already cost them £28,552. Some £370,000 had been lost in this way since the war.
Submissions by 14 local councils who objected included suggestions that the company might receive more money than they needed if rationing continued, and that the application should be postponed until the effect of increased traffic and . cuts in services caused by rationing could be estimated. Part of the general reserve of £290,000 should have been used as a cushion to absorb the increases. Mr. Herington said it would be unfair to postpone decision. The application had nothing to do with the emergency, and there was no evidence of any Saving in wages or running costs.
Mr. F. Williamson, chairman, said it seemed that substantially the company must have something like the additional revenue a`sked for to maintain their services. Decision would be reserved until certain anomalies had been ironed out_ by discussion between the company and some of the objecting councils.