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North Western's Fares Rise Granted

22nd June 1962, Page 35
22nd June 1962
Page 35
Page 35, 22nd June 1962 — North Western's Fares Rise Granted
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Which of the following most accurately describes the problem?

AN application to increase the majority of stage carriage fares of the North Western Road Car Co.. Ltd.. and its 13 joint operators was granted in principle at a joint sitting of the North Western. East and West Midland Traffic Commissioners last week in Manchester. Fares below 4d. would not be affected. those between 44.d. and 54d. would be increased by Id., between 6d. and Is. Id. by Id., between is. 2d. and 2s. by 2d., between 2s. Id. and 3s. by 3d.. between

to Cut Bus Orders

earnings, before providing for tax. was 4,62 per cent. This year that was expected to drop to 3.38 per cent, and in 1963 to 2.82 per cent. This was not a figure any commercial concern could contemplate with equanimity. The figure for which they were now asking was 7.09 per cent. Mr. J. Stevenson, traffic manager, said that because of the economic position of the company, orders for the replacement buses for next year had had to be cut to 10.

Granting the company's application, the chairman, Mr. H. J. Thom, said the Commissioners' function was to ensure that such companies received sufficient revenue to enable them to operate in an efficient manner in the public interest. It seemed clear that Thames Valley had reached a position in which their ability to do so had been threatened .

Therewas no probability that the additional revenue would be used to increase dividends to the shareholders. It would obviously have to be used in the immediate future to restore the position where adequate sums could be set aside to reserve for replacement of vehicles. . 35. Id. and 4s. by 4d. and above 4s. Id. by 5d. Certain return fares would go up by an amount not exceeding double the increase on the appropriate single fare and school children's contract rates would be revised. Mr. F. D. Walker, for the company. stated that extra expenses totalling £107.855 had been incurred during the past financial year. It was estimated that the new fares would bring in an annual revenue of £108,986. North Western's traffic manager, Mr. D. L. Fytche, said that 47.64% of their stage carriage services were unremunerative. To be economic' a service must yield a minimum of 29.47d. per mile. He considered the new proposals to be reasonable and added that most traffic had declined in off-peak periods. In order to effect economies they intended to introduce more new vehicles which would have an estimated life of 12 years instead of eight. Objections were received from members of the public and local authorities. Mr. R. Gregory of the Wilmslow said that the company should examine their internal organization and try to stabilize their fares in some way. Mr. Fytche agreed that since 1951 there had been regular fare increases, but .015.215 had been lost as new expenses had been incurred and time had elapsed before the new fares could be introduced. • The chairman of the North Western Traffic Commissioners. Major-General A. F. J. Elmslie. said they would grant the application in principle, subject to the submission of the revised fares schedules to all areas concerned, and to their approval. The proposals would be agreed for one year,. after which the statistics for the current year and estimates for 1963/64 must be examined.

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