E.Y.M.S. Wrong on Fares Yield
Page 47
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THE miscalculations of East Yorkshire Motor Services, Ltd., had been amazing. They were £12.744 out on one month's operations, despite their assurances to the Commissioners at the September hearing that the estimates were accurate.
This was submitted to the Yorkshire traffic Commissioners, at Bridlington on Tuesday, by Mr. A. B. Giasspool. He was objecting for Haltemprice, Beverley • and Hedon Councils to the company's application for increases in stage fares.
Maj. F. S. E.astwood, chairman, said they had called a further inquiry because of information supplied by E.Y.M.S.
Mr. F. A. Stockdale. for the company, said that at the first hearing on September 19 (The Commercial Motor. September 28), it was estimated that at September 30, increased revenue from an award which came into effect on April 1 would be £27,100. in contrast to their estimate of £72.659. In consequence, they had asked for an increase to bring in £69,000 in a full year.
Their estimates were inaccurate, and at the second hearing on October 2 (The Commercial Motor. October 5). when the final receipts of stage, excursion and tour and contract services were available, the total had become £31.375.
The Commissioners reserved their decision and, on November I. when the company were able to get a clear picture of revenue for the first time, it was found that the final figure was £44,242, yielding a figure of 5 per cent on the capital employed.
Express services and expenses were responsible for the discrepancy, which was £17,142 in excess of the original estimate, and the Commissioners were informed at once. There was, however. a new factor. A wage award in November, which would increase costs in the current year by £18,750. would wipe out the error.
Mr. C. R. H. Wreathall, general manager of E.Y,M.S.. said an increase of 12+ per cent. in the company's share of receipts from express services run by the Yorkshire pool over an area from Newcastle upon Tyne to Coventry was a big surprise.
Mr. Glasspool submitted that this third hearing had shown the need for the councils' objections. Even counting the recent wage increase, E.Y.M.S. were still asking for more than they needed. Fuel rationing would reduce costs.
Mr. Stockdale submitted that the question was whether or not the trading results of the past financial year showed a likelihood of reasonable profit in the current year. The Commissioners had accepted in the past that a yield greater than 5 per ccnt, was not unreasonable.
It was not now the time to assess the effect of rationing. The situation was not the same as in the post-war years. No peak-hour services were being cut, and the company would have the same overheads in maintaining the numbers of buses and crews.
Decision was reserved.