15 Councils Fight East Kent Rise
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ARGUMENTS that the East Kent Road Car Co., Ltd., were in a strong financial position, and that a recent fare increase was not required to keep them running satisfactorily, were presented on behalf of 15 local authorities at an appeal hearing, in Canterbury, on Monday.
Mr. Harold Willis, Q.C., for the appellants, said that when the application was made there was no justification for an increase. It was the sixth application since 1951, and the fourth to be granted.
For the company, Mr. H. R. Herbert said dividends had remained constant at 81 per cent. since 1946. "The dividend is the only thing that has remained constant," he said. "Wages, costs, fuel tax and every other item of expenditure have risen greatly."
The company needed £73,375 to pay the net dividends. In the year ended September, 1955, there was a balance of £8,000 after paying taxes and dividends and allowing for depreciation. Before, there had been a balance of £117,000.