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Are Fare Increases Outdated ?
Page 88
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FARE increases instituted last September by the North Western Road Car Co., Ltd., met unusually strong passenger resistance. This was reported by the chairman, Mr. T. Robert Williams, at the company's annual meeting last week. He said the time had come when they must seriously consider whether future fare increases would produce any appreciable increase in gross revenue.
"We may have to conclude that the answer to further substantial increases in costs is a serious curtailment, if not the complete elimination, of unremunerative services," he said. "If this occurs, it will be inevitable that a number of our staff will have to be dismissed."
At present, the company were operating 54 per cent. of their stage services below cost, which represented nearly 37 per Cent, of the stage-carriage mileage.
Traffic revenue in 1957 showed a decrease of £68,478 compared with the previous year's figure, and there was a drop of 11 per cent. in the number of passengers carried. Express service revenue fell by more than 20 per cent.. but the overall increase in costs was £30,107. or 1.28 per cent.
The year which has passed has been one of the most disappointing in the history of the company," Mr. Williams declared. However, £220,660 was spent on new vehicles, which were delivered in time for the 1958 summer season. These included 20 dual-purpose vehicles with improved seating, for use on the longer stage-carriage routes.