Trent Costs:A.3p £716,000: Midland General Also Apply
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iNCREASED costs since 1938 amounted to £716,000 without allowing for depreciation, Mr. S. D. Herington told the East. Midland Licensing Authority last week, when he applied for an increase of id. in single fares between lid. and 6id. for the Trent Motor Traction Co., Ltd.
Higher rents, television, mobile shops and more new cars were keeping per)* off buses, according to Mr. K. Laing, traffic manager, Midland General Omnibus Co., Ltd., when he supported their joint application with the Notts and Derby Traction Co. for a id. increase in 2d. to 6id. ordinary single fares, and the introduction of a children's fare of 2id. where the ordinary rate was aid., and new rates for certain workmen's returns.
Blackwell Rural District Council objected to both applications. Opposition to Trent's proposals by three other local authorities was withdrawn.
.MnHerington said that 12 per cent, 'of the fares in the range concerned would not be affected by the proposals. They were not seeking an increase in Loughborough, where they ran the town service, but were to make another application for a 2d. minimum, whilst retainthe .3d. return.
The gross surplus on the company's capital was lid. a mile, or 8.63 per cent. "We think that is not an adequate return on which a business can be efficiently run," he said.
An increase of £34,770 was expected from the application he was supporting, said Mr. Laing. Wages had increased by £25,800 and depreciation by £10,074 since the previous application. Esti
mated gross profits for 1954 and 1955— without any increase in fares—were given as £44,000 and £37,000 respectively.
Asked by the Authority what happened to the two companies' surplus of £110,000 in 1953, Mr. J. Allen, secretary of Midland General, said that after taxation of £57,000 there was a residue of £53,000, of which £44,000 related to his company. Of this, £22,000 was transferred to reserVes and £22000 was paid in dividend to the British Transport Commission.
Notts and Derby, he said, incurred a loss of £51,000 on the sale pf their trolleybus system, and paid no dividend.
Decision on the applications, including that of Barton Transport, Ltd. (The Commercial Motor, last week) was expected to be announced this week,