No Final Divide nd by E.Y.M.S.
Page 27
If you've noticed an error in this article please click here to report it so we can fix it.
FOR the first time in their history, East Yorkshire Motor Services, Ltd., are unable to pay a final dividend. Mr. J. S. Wills, chairman, said last week that they had earned practically no profit in the year.
He gave as reasons the decline of traffic; higher operating costs, particularly wages; the long delay in raising fares to match costs, and the strike of last July. Apart from competition from private transport, Diesel trains were taking a larger share of the traffic. Television was another competitor.
Mr. Wills criticized the action of the Yorkshire Traffic Commissioners on December 14, 19.56, in granting only partially an application for higher fares made in the previous August. When the decision was announced, a new wage increase had already been promulgated.
Apparently, said Mr. Wills, objectors and the Commissioners had been impressed by a brief "Indian summer' which the company had enjoyed at the end of their financial year and were persuaded that the adverse trend of the preceding months had been fortuitous. This optimism was not borne out by events and a new application had to be made.
It was not until June 30, 1957, that the company were able to bring into effect fares which would enable them to cope with an adverse trend which had been recognized in the previous July.
Bus companies were forced to apply for higher fares in the most unfavourable psychological circumstances, months after tip rise in costs which created the need for them. By then the public had forgotten the cause. Up to the time of last July's bus strike, there had been a passenger decline of 5 per cent., but since that event it had risen to nearly 8 per cent. Benefit from higher fares was limited and expenditure must be cut to restore the company's finances. Services must be reduced, because other forms of economy had already been applied.
TEESSIDE DIFFICULT FOR SUB-CONTRACTING
THE difficulties in sub-contracting haulage work from Teesside were mentioned.at Stockton-on-Tees, last week, when F. Robinson (Stockton), Ltd., successfully applied to add a fourth vehicle to their A licence. Mr. F. Robinson, jnr., told the Northern Licensing Authority that if the application were granted, the company. would delete a 7-tonncr from their special A licence.
He said the company were having to do extensive sub-contracting, which was expensive and not always satisfactory. Their special-A licence operations included trunk services to London and other places. which were pioneered by his father in 1910.
OBITUARY
WE regret to announce the deaths of MR. THOMAS F. NASH and MR. SEYMOUR LAWSON.
Mr. Nash was chairman and technical director of C. Lindley and Co., Ltd. He had. been with the company nearly 40 years.
Mr. Lawson was for many years a superintendent of Crosville Motor Services, Ltd.