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Financial Deal Ends in Disp

28th September 1956
Page 70
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Page 70, 28th September 1956 — Financial Deal Ends in Disp
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Which of the following most accurately describes the problem?

Keywords : Business / Finance

1, Licensing Court

FINANCIAL transactions to facilitate

the purchase of the shares of Morecambe Motors (Silver Gse.y), Ltd:, by Mr. F. Webster, managing director of James Smith (Wigan), Ltd., resulted in the sale of Morecambe Motors' garage to Florence Motors, Ltd., to which-Mr. Webster was not a party.

This was stated before the North Western Licensing Authority at Blackpool, last week, when Florence Motors successfully applied for permission to make the garage, which was only a few yards from Morecambe Motors' picking-up point, their picking-up point..

Mr. James Booth, for Florence Motors, said that in May this year they received notice to quit their originating point in Regent Road, Morecambe. Mr. Webster had told Mr. R. R. Renton, managing director, that he was buying the shares of Morecambe Motors, but was not interested in retaining the Harbour Garage in Grove Street.

After negotiations with a Mr. Whitehead, the then chairman of the company, Mr. Renton purchased the garage and was authorized by the Licensing Authority to operate from there. There was no other site in Morecambe suitable for 10 coaches.

Cross-examining Mr. Renton for Smith's, who objected, Mr. H. Backhouse suggested that when Mr. Webster bolight the shares, the garage had already been sold and was not an asset, but the parking ground in Grove Street opposite, which. was Pow Morecambe Motors' originating point, Mr. Renton said he was told that this was an accommodatien transfer,. for financial reasons only.

Mr. Backhouse submitted that Florence had got a dispensation to operate from Harbour Garage behind Mr. Webster's back. He did not inform the Licensing Authority they would be in Morecambe Motors' lap. As soon as they were aware of it' they objected. There was no need for another operator in the area.

The Licensing Authority had always declined to move picking-up points from the back streets to the promenade at coastal resorts. If the application were granted. Florence Motors would Ile only 30 ft. away from Morecambe Motors. These operators had clashed many times in the traffic courts in the past few years, and it would not be good licensing to put them alongside one another.

Mr. Whitehead had admitted that he did not consider selling any part of the licence when he sold, the garage. Mr. Renton had bought only the structure, and he was now seeking to acquire an asset worth thousands of pounds on the strength Of it. The completion of the sale to Mr. Webster took place only last week, yet already Mr. Whitehead had given evidence against his purchaser.

Mr. F. Williamson, chairman, commented that Mr. Webster had chosen to relinquish the originating point at Harbour Garage.

Mr. Booth said it had never been suggested that Florence Motors had bought any part of Morecambe Motors licence. They were unable physically or legally to use their former originating point.

Despite Mr. Webstcr's strong objec tions, he had not seen fit to give evidence. Florence Motors had been granted extended tours on evidence of public need, and it was in the interests of the public that they should have a proper point. They were extended-tout operators only, and Morecambe Motors had not run extended tours, although they were licensed for them. since before the war.

The Licensing Authority then con sidered unopposed applications by Morecambe Motors to amend their originating point from Harbour Garage to Grove Street car park, opposite. Mr. Webster said it was pipposed that they should run extended tours in October this year.

Giving decision, Mr. Williamson said that on the merits of the dispute Florence Motors had made out a case. but, in any event, the public interest made it desirable. Morecambe Motors' application on their day-excursion licence would also be granted, but decision would be reserved for extended tours.


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