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DEVON GENERAL'S COSTS DOUBLED

6th April 1951, Page 43
6th April 1951
Page 43
Page 43, 6th April 1951 — DEVON GENERAL'S COSTS DOUBLED
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Which of the following most accurately describes the problem?

OPERATING costs of the Devon General Omnibus and Touring Co., Ltd., were now twice as great as before the war. said Mr. W. T. James, 0.B.E., chairman, in his annual report. The higher fuel tax imposed in the 1950 Budget increased annual expenditure by £36,000 and the recent wage rise for staff by £30,000. Consequently, the company now had to apply for permission to increase fares.

During the year under review, the company's vehicles covered 10,180,000 miles—much the same as in the year before—but traffic receipts were £24,000 lower. Decreased public spending power was evident in the change in demand from expensive long day tours to the shorter and cheaper half-day tours. The number of passengers carried did not vary appreciably.

The company had spent about £100,000 on new vehicles last year.