Red and White Co.'s Dividends Queried: Birmingham to Apply
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AT Newport, last week, it was the turn of Red and White Services, Ltd., to submit their application for higher fares to the South Wales Licensing Authority and to hear the criticisms ...)f objectors. For the applicants, it was submitted that 65 per cent, of all services were operated at a loss or at no profit to the company. Of the total mileage operated, 45 per cent. was unremunerative.
The revisions proposed, which, in the main, affected return fares, would augment revenue by £83,500 a year, it was stated. On current costs, the company would make a profit of £63,000 this year, or £30,000 less than last year. The application was called for by the rapid rate at which costs were overtaking earnings_ Profits " Underestimated " For the objectors, Mr. Meurig Evans claimed that an increase in revenue was unnecessary. At the hearing of an application in 1952, he said. the company underestimated profits by £90,000. There was a gross disparity in the estimating, and the company had been persistently pessimistic. They had capitalized their depreciation fund and paid excessive dividends.
When the State purchased the company in 1950, said Mr. Evans, assets of £1,250,000 were included. The subscribed capital was about £250,000. "The fact is that shareholders had already milked the company dry before the British Transport Commission came in.,,
Instead of asking the public to pay higher fares to meet the cost of depreciation the proper way would be to obtain more share capital. After the applicants had agreed to modify some of the proposals, the application was granted.
I Grant Recommended
Services to Treforest Trading Estate, run by Pontypridd Urban District Council, were resulting in a weekly loss of £206, it was revealed recently when application was made for revised charges on some routes, the abolition of workmen's fares on services to the estate and for permission to increase the statutory maximum fare per mile. The South Wales Licensing Authority stated that he would recommend the application to be granted.
Expecting a loss of £300,000 in the year ended March 31 last, Birmingham Corporation are to apply immediately for increased fares. The decision to do so was delayed until the Budget had been presented, for it had been hoped that if the tax on fuel was reduced by half, the transport department could have avoided the need for higher fares. At present the corporation are paying £750,000 a year in fuel tax.
Reading Corporation, which also expect a loss on last year's working, are to reduce services still further.
ita Speaking recently, the chairman of the transport committee declared that the public revealed a lack of appreciation of the undertaking's position which nearly amounted to deliberate evasion of paying not only the correct, but the whole, fare.
Burnley, Colne and Nelson Joint Transport Board and their joint okrators have applied for permission to abolish workmen's concession fares, and to replace certain children's special charges by half-fares.
The Scottish Licensing Authority has approved the application of Highland Omnibuses, Ltd., Inverness, for permission to raise charges. Except in Inverness itself, single fares generally will rise by 10 per cent. and returns by 20 per cent. In Inverness, the lid. minimum adult single fare becomes 2d., and the 2d. ticket costs 2id.
R6V AT AMSTERDAM 'T'HE new Perkins R6V engine is being exhibited at the Amsterdam Show by Willem van Twist N.V. The Dutch D.A.F. vehicle incorporating the R6V is being displayed, also the new Dodge 7-ton oiler described on pages 308-311.
In addition to the Dodge, and the new Seddon described on page 297, the following British chassis are on view: A.E.C,, Albion, Austin, Bedford, Commer, Dennis, Ford, Guy, Karrier, Leyland, Morris, Morris-Commercial, Sentinel and Standard. There are 19 German makes.
Holland, France, Belgium, Germany, Austria, Sweden, America, Italy and Great Britain are represented at the Exhibition. Great Britain and Germany share the honours in stand space and prominence, Laurence J. Cotton telephones from Amsterdam.