Operating Aspects of
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PASSENGER TRANSPORT
TILLING CO. CLAIMS OVER £3,000,000 FROM LONDON TRANSPORT
Arbitration Tribunal Hears Big Claim for Transfer of London Business ON Monday last the London Passenger Transport Arbitration Tribunal commenced to hear a claim by Thomas Tilling, Ltd., against the London Passenger Transport Board for over £3,000,000, in respect of the transfer of part of the company's undertaking to the Board.
On behalf of the company, it was explained that, substantially, the figures had been agreed, and the Tribunal would have to deal largely with matters of principle, upon which there was disagreement.
In October last the company claimed stock based on the capitalization of its profits ; the main claim was for £3,595,540, whilst £152,888 was claimed in respect of severance. A claim in connection with apportionments was for £20,613. These figures had, however, -been reduced to £3,162,912, £116,531 and £20,113 respectively.
In order to comply with the London Passenger Transport Act, the Tribunal would have to ensure that the considerations paid for the transfer of the various undertakings involved were equitable in relation to each other, whether they were prescribed in the Act or reached by agreement.
It was explained that the Tilling undertaking was established in 1847 with one horsed bus, and in 1859, when the system had considerably expanded, the London General Omnibus Co., Ltd., was formed. In 1887 the present concern of Thomas Tilling, Ltd., was founded, For the company, it was stated that an effort had been made to secure from the Board information concerning other settlements that had been made, but this had failed.
In reply, counsel for the Board mentioned that 52 settlements had been made on the same basis, and were similar to the settlement in connection with the tramways and bus undertaking of the Metropolitan Electric Tramways Co„ being based on the assets and five years' purchase of profits. The whole of the documents relating to the agreements with independent operators would be brought into court and evidence would be given in connection with them.
It was further explained that the amount of consideration received by the common-fund group of companies (this consisted of five undertakings, including the London General Omnibus Co., Ltd., their earnings being added together and averaged over three years) was about £78,000,000, and by the Metropolitan Railway Co., £20,000,000. The total of £98,000,000 represented 90 per cent, of the total considerations made.
When the Tribunal resumed consideration of the case on Tuesday, counsel for the company stated that the Underground group capitalized dividends and the Tilling concern capitalized profits, and that profits and dividends in the group were substantially the same thing.
It was argued that, if Tilling's had based its claim on the same standard of profits as that of the L.G.O.C., it would have been much larger. It was contended that the M.E.T. settlement was part of the Underground group settlement, and was not separate.
In reply to the chairman, Mr. J. Scholefield, K.C., counsel for the company, remarked that capitalization was, perhaps, an incorrect term. Thomas Tilling, Ltd., sought perpetuity of past profits. He stated that he should contend, when details of the agreements with 52 independent operators were brought into Court, that these were wholly irrelevant. If necessary, he would obtain an interpretation on the appropriate sections of the Act from the Court of Appeal.
The Court adjourned until Wednesday, and the procepding will be reported in next week's issue.