Red and White Refused "Blanket" Application
Page 45
If you've noticed an error in this article please click here to report it so we can fix it.
THE South Wales Licensing Authority refused last week to grant a " blanket " increase in fares to Red and White Services, Ltd. Mr. C. R.
• Hodgson, chairman, said that to grant the application would be a retrograde step.
On hearing the decision, the Western Welsh Omnibus Co., Ltd. withdrew a similar application.
Mr. M. Holmes; for Red and White, said it was estimated that the company's costs this year would be up to £121,000, which would leave a profit, before taxation, of £89,000. This would represent a return on capital of only 2.47 per cent. If, however, the application succeeded, the profit would be £171,000.
representing a reasonable return of 5.26 per cent. He applied for a blanket increase so that, with the exception of those who paid the minimum fare of lid. and others who travelled the shorter journeys, every class of passenger would make fair contribution to the additional revenue needed.
Mr. E. J. Phillips, general manager of the company, said there was dire need of an increase in fares.
Mr. J. L. T. Price, representing Tredegar Urban District Council and the Western Valleys Travelling Committee who objected, submitted that the company had paid their way very well. If the blanket application were granted it might well be the first step back to the chaotic situation prevailing before 1950.
" We agree with a great deal of what the objectors have said," said Mr. Hodgson, "namely, that it took a long time to establish this tapering system in getting fares on a satisfactory basis for all companies in South Wales. The Red and White are the only company who have come to us with an application of this nature."
He thought it was not unreasonable to ask for 51 per cent. on the capital employed, but the Authority could not grant the application in its present form.
"We have no doubt that an application in another form, which we recom mend, will be put forward and, if so, it will receive our consideration." Other objectors were the Pontypool, Neath and Abercarn Councils.
MARCH REGISTRATIONS
THE registration of new vehicles for March, excluding cars and motorcycles, took a big jump as compared with the previous month. The total for March was 20,381 and for February 15,586. Whilst all categories, with the exception of tractors, showed an increase, the main contributor was "other goods" at 13,785 as against 10,547.
The full figures are given in the table below.