Does Profit Disprove Rate-cutting?
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'WHEN Messrs. W. Matthews and VI' Son, Lee Mill, applied for the renewal of a B licence and the addition of a vehicle on a hiring allowance, the Western Licensing. Authority, Mr. A_ F. Nicholson, called for the production of the applicant's operating costs and record books.
Mr. Matthews admitted that an allowance for depreciation had been omitted from his costs record. It showed, said Mr. Nicholson, that the applicant's methods were not perfect.
It also appeared in evidence toat the applicant had not been paying the correct grade of wages, and when Mr. H. Cooke, for the objecting operators, referred to this subject, Mr. Nicholson, observed: " There will be other steps taken, whatever the result of the application."
The applicant said that he had refused to join an association because he took the view that, if charges were forced up too high, local authorities were likely to acquire their own vehicles. Moreover, members of the association were unable, he said, to prevent price-cutting.
If, said Mr. D. F. Nash, for Mr. Matthews, the applicant had been tendering on a false basis and at uneconomic rates, as alleged by the objectors, the accounts would not be found to produce net profits each year. In giving his decision, the Licensing Authority said it was quite clear that the standard wages were not being paid. It also seemed that full costs had not been taken into consideration in the preparation of tenders. On the other hand, the auditor's accounts showed the business to be profitable.
He could not conclude, therefore, that the rates were uneconomic; neither was there proof, in his view, of traffic abstraction from other operators.
With reference to the renewals, Mr. Nicholson said that he had decided to defer this question pending an investigation through the Ministry of Labour. The matter would be referred to the Conciliation Board. In the meantime, the existing licences would continue.
An additional hiring allowance Was refused.