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Higher Compensation for Small Men: £130,000 for Company

27th May 1955, Page 43
27th May 1955
Page 43
Page 43, 27th May 1955 — Higher Compensation for Small Men: £130,000 for Company
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Which of the following most accurately describes the problem?

IN a decision announced in London 1 last Friday. the Transport Arbitration Tribunal increased the compensation payable by the British Transport Commission to Mr. Selwyn Shute, Argyle Street. Swansea, and Mr. F. G. Hoppe, Mumbles Road, Mumbles, Swansea, both one-vehicle operators.

As reported in The Commercial Motor on May 6, the Commission offered Mr. Hoppe a multiplier of 2. whereas he claimed one of five. Another point in dispute in his case was the deduction to be made in respect of hire-purchase interest on a vehicle acquired hie him in April, 1948. The purchase agreement was in force only during the last of the three years immediately preceding the nationalization of his business.

Interest Added Mr. C. Montgomery White, president. said that the Tribunal acceded to Mr: Hoppe's claim to have £308 2s. 6d. for hire-purchase interest added hack to the profits of the third year, subject to the deduction of £52 front the profits of each of the three years (3 per cent. of £1,738, which was the liability imposed on the Commission).

Mr. Hoppe had failed to prove that the increased carrying capacity of his business could have been profitably used in the two earlier years.

After stating that the Tribunal found that the average net annual profit was £1,333, Mr. White went on: "Mr. Hoppe had, in our judgment, a very nice 'hale business from which he could hope to derive a livelihood by a considerable expenditure of energy and hard work."

The Tribunal lixed a multiplier of about 3.1, giving Mr. Hoppe £4,332 compensation for cessation of business. His total compensation was £5,946.

Mr. Shute also elaimed a multiplier of five as against three proposed by the Commission, aud the Tribunal awarded him one of just under 31. This made his compensation for cessation £3,401, and the total, £4,800.

The Tribunal in Edinburgh have confirmed an agreement by the B.T.C. to pay J. R. Carmichael and Co., Ltd., Leith, £130.000 compensation.


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