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A PROJECTED BUS AMALGAMATION.

4th May 1926, Page 26
4th May 1926
Page 26
Page 27
Page 26, 4th May 1926 — A PROJECTED BUS AMALGAMATION.
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Which of the following most accurately describes the problem?

The Capital of One Important Company Increased to Enable Another Prominent Organization to be Acquired.

AT. the twelfth ordinary general meeting of the Northern General Transport Co., Ltd., of Chester-leStreet, which was held on April 22nd, the chairman, Mr. R. J. Howley, C.B.E., in presenting the annual report made reference to the proposal of the directors to increase the capital of the company from £500,000 to £700,000, the principal object being to purchase the undertaking known as the Sunderland District Transport Co., Ltd., who since substituting motor omnibuses for tramcars about two or three years ago have built up a large bus system in the Sunderland neighbourhood. The approval of the debenture shareholders of the Sunderland District Transport Co. is still required to render the negotiations ready for completion. When the purchase is

complete it will constitute what will Probably be the largest deal in North of England motorbus history, for at the present time the Sunderland company have a fleet of 58 units, and control a network of routes covering between 60 and 70 miles of roadway and linking up many important centres.

Dealing with the financial outcome of the past year, the chairman said the position was quite satisfactory. The divisible surplus was £53,664, (£8,305 was brought in from the previous year), or £4,359 more than that for the previous year, a figure which was very gratifying when it was taken into account that £43,000 has been set apart for renewals, or almost £10,000 more than the provision made under the same head in 1924. Turning to the expenditure side, Mr. Howley stated that the company had spent £384,802 on land, buildings, rolling stock, plant, etc. This constituted an increase of about £104,000 over the sum expended in 1924, and, as a result, expenditure during the year had absorbed practically the whole of the sum which had been provided for such purposes. It was not advisable, he added, that the policy should be carried too far. A large part of the renewals fund should be represented by liquid resources and available when desired. For that reason, and with a view to making provision for the growing requirements of the undertaking, the directors had decided to offer immediately to shareholders £118,750 ordinary shares of kI each for subscription at par, in the ratio of one new share for every four shares now held. They had received an offer to take up at par, free of cost to the undertaking, any shares of the issue which were not subscribed for by the shareholders or their nominees, and the total increase proposed was £200,000.

Discussing the reason for this increase, Mr. Howley said that the provision was being made primarily in order to take over the business of the Sunderland District Transport Co., Ltd., who would transfer their large fleet of vehicles and their garages and other buildings to the Northern General Transport Co., Ltd., in exchange for a share interest in the latter. The absorption, he added, would bring to a close the unnecessary competition which had been carried on along certain routes where the two companies ran in opposition. Despite all efforts on the part of the management of the two undertakings there had frequently been cases of racing between drivers of opposition buses, and the competition had been very expensive to both. There would, therefore, be an immediate economy in that direction.

Mr. Hawley went on to discuss the progress made by the Northern General Transport Co., Ltd., during 1925, and said the fleet now totalled 241 units, an increase cf 65 vehicles as compared with the number in use in 1924. Pneumatic tyres, he continued, were fitted to the ne-w vehicles, and the same class of equipment was being provided for older vehicles as they were brought into the. depot for overhaul. During the• past 12 months several new services had been

"opened up, and, whilst the development stage of the business was nearing completion, he anticipated that their vehicles would deal with a steadily increasing number of passengers for several years.

He also mentioned the very live interest displayed by workmen in the company's business, and cited instances "whore they had been very materially responsible for popularizing the " Northern" .services and retaining patronage in the face of competition. The employees, as wage-earnerp, were directly improving their own position by such measures, said Mr. Howley, for they had by far the largest interest in the business, as could be gleaned from the fact that last year Os. 5d. was paid in wages and salaries out of every taken in fares on the company's system.

The meeting agreed to theproposed increase in capital of the company by £200,000.

The Sunderland District Transport Co., Ltd., who about two years ago completely supplanted their trams by motorbuses, have since that date increased their route mileage from 16 to about 60, and now control the following services:— Miles. Sunderland to South Hetton 11.10 Sunderland to Durham ... 13.90 Sunderland, Ilyhope, New Rif ksworth, and Sunder laud (circular) 7.60 Sunderland to Herrington B ern ... 5.81 Easington Lane, Houghton, le-Spring, and Chester-leStreet Ryhope Village, New Silicaworth, and Herrington llonghton-Ie-Spring and Seaham Harbour ...

New Washington, Herrington, and Hetton... 6.20 The company have modernized their eatablishment at Philadelphia, a few miles from Sunderland, and built up an up-to-date garage and maintenance

6.10 mild overhaul depot, where each unit is regularly overhauled, the usual period bearafter the completion of each 4,000 to 5,000 miles.. In addition; a comprehensive overhaul of each bus is made each year.

The present fleet comprises 58 units, about half of which are mounted on giant pneumatic tyres, Dunlops in the main being used. Many cif the heavier units are shod with Henley air-cushion tyres, which have given very satisfac tory results. The fleet includes 12 26-seater A.E.C. buses, the remainder being A.E.C. and Bristol 30-seaters. All are comfortable vehicles of the singledeck saloon type.

The management of the company reached a decision to change over from tramcars to motorbusea by reason of the fact that an expenditure of £160,000 would have been necessary to relay the original 16 'miles of tramway track, without taking into account the cost of extensions which were urgently required in order fully to cope with the requireMonts of the residents of the important industrial neighbourhood served.


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