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T.A.T. Hear Compensation Dispute on 1949 Acquisition

28th May 1954, Page 37
28th May 1954
Page 37
Page 37, 28th May 1954 — T.A.T. Hear Compensation Dispute on 1949 Acquisition
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Which of the following most accurately describes the problem?

A CLAIM by Aber Carriers, Ltd., Welshpool, for greater compensation than the British Transport Commission would allow was heard by the Transport Arbitration Tribunal in London this week. The company's business, including 17 vehicles, four trailers and premises, was acquired by the Commission in January, 1949.

When the case opened on Tuesday, Mr. F. W. Beney, Q.C., for Aber Carriers, said that the parties agreed to £12,373 for the vehicles and trailers and £6,017 for other property, business and chattels, and that £145 should be deducted from these sums in respect of apportionments.

The claimants contended that £500 for the financial year 1945-46 and £400 for 1947-48 should be "added back" to arrive at a true appraisement of adjusted profit and loss for the threeyear period before acquisition. The C500 was an estimate for repairs to vehicles deferred through difficulty in letting the work done, whilst £400 was or repairs to property. It was a nonecurring item and should be treated as :apitai expenditure.

By far the most important matter, ontinued Mr. Beney, was the need for n adjustment in computing the net ■ rofits of the rapidly expanding busiess. During the three years before cquisition, the fleet had been more an doubled.

"Revenue rose from £20,000 in 1943 £33,509 in 1948. In the last 10 tonths before acquisition it went up a £35,500, equivalent for the full year £43,200," he said.

The Commission were offering a

multiplier of 3i but this might be a case where the maximum multiplier of five should be applied.

On the subject of adjustment for the depreciation and replacement of vehicles, the claimants considered a fairer method than the 20 per cent. diminishing proportion, which never wiped out the balance, would be a figure of 10 per cent., which wrote vehicles off completely in 10 years.

For the depreciation of buildings, furniture and fittings, the Commission had taken 4 per cent., but the claimants suggested 10 per cent.

Mr. Herbert Banks, the company's accountant, giving evidence, said that earnings had increased fairly rapidly from the time the company was started in 1933 until it was concluded. There had never been a serious recession.

The hearing was continued by the Tribunal on Wednesday.

4d. TOO HIGH FOR STATION CHARGE?

AN estimated charge of 4d. per vehicle departure for the proposed new bus station at Northfield, Keighley Road, Colne, is considered "rather high" by Colne Town Council. The station will be for buses of the Burnley, Colne and Nelson joint undertaking and Ribble Motor Services, Ltd.

The Minister of Transport has approved the construction of a further part of a station at Dudley. Hyde and Goole are to consider building stations, but Hastings has abandoned intentions of doing so because no agreement can be reached with the local bus company.


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