READING'S BUSES SHOW A PROFIT:'
Page 26
If you've noticed an error in this article please click here to report it so we can fix it.
Some Aspects of the Financial Returns Dealing with the Municipality's Bus Operations During the Past Year.
T'Reading Corporation established its municipal motorbus service in December, 1919, when a route between Tilehurst and Caversham Heights was opened up, but it actually obtained powers under an Act of 1914 to provide and run motorbuses and trolley-buses in the borough. In the intervening years considerable expansions of the system have taken place, and, at the end of the year covered by the latest report of Mr. J. M. Calder, A.M.I.E.E., A,M.I.Mech,E., the general manager and engineer of the tramways and motors department, i.e., March 31st, seven distinct services were in operation.
The rapid development of the bus system is largely attributable to the fact that special consideration has been paid to the provision of increased passenger transport facilities in districts hitherto inadequately served, and the success attending these efforts is clearly reflected in the growing number of passengers carried, the annual increases which have been recorded during the eight complete years that the municipal service bas been established being quite substantial..
The actual figures are shown below, in conjunction with other statistics which permit interesting comparisons to be made:—
It will be noted that the increases in the number of passengers carried are not altogether proportionate to the higher annual mileages, and the passengers carried per bus mile actually fell from 7.82 in 1921 to 5.94 in 1927, although there was a slight recovery in the past year. Then, too, the average fare paid per passenger has shown a gradual decline since 1922. The deduction to be made from these figures is not that the original rate of progress is not being maintained, but rather that the service is being developed in the public interests and, as such, it is hardly to be expected that new districts can contribute the same volume of traffic to the whole as those in which the bus has become firmly entrenched.
In the year with which we are dealing the operation of Reading's motorbuses and tramways yielded a gross pro
fit of 123,146, as compared with a gross surplus of 117,931 in the previous year, 120,383 in 1=-26, and 120,501 in 1924-25. After meeting interest and sinking-fund charges, etc., the net profit on the undertaking is shown to be £7,183, as compared with £3,936 a year earlier, £5,951 in 1925-26, and £6,272 in 1924-25.
The surplus on the Motorbuses account was £3,187 in 1927-28, a highly successful return, especially when set against that for the previous year, when a loss of £517 was shown on the
working of the bus fleet. Of this year's surplus £5,000 has been applied to the borough fund in relief of the rates and the remaining 12,183 to the reserve and renewals fund.
An analysis of the bus revenue account for the pest year's operations shows income at 1.3.9,912 and outgoings divided as follow :—Traffic expenses, £15,871; cost of repairs and maintenance, £9,723; cost of petrol, £4,031; general expenses, £1,506; added to which are contributions to depreciation fund (£1,671), to accident fund (£1,000), tied to superannuation fund (£2,871). The parcels express service resulted in an addition of £1,233 to the total revenue, and an expenditure of 11,080 was incurred in connection with the administration of this service.
Reduced to a per-mile basis, the bus revenue was 14.605. and the expenditure (including depreciation) 12.005., the latter being the lowest return since the institution of the service and comparing with 12.8515. in 1926-27, 13.914d. in 1925-26, 14.995d. in 1924-25, 15.1735. in 1923-24, 18.563d. in 1922-23, 21.249d. in 1921-22, and 19.8075. in 1920-21, When we published our analysis of municipal bus services in May last, the Reading Corporation had 26 buses in use, consisting of 13 Guys (four 52seater six-wheelers, seven 26-seaters and two 20-seaters), 10 A.R.C.8 (nine 46-seaters and a 20-seater), two Karrier 32-seater six-wheelers and a Thornycroft 52-seater. The past year wit nessed the introduction of six-wheeled buses in both single-deck and doubledeck forms, and, judging by the comments of the travelling public, their comfortable riding qualities are highly appreciated. Other Mx-wheelers are to be brought into service to replace obsolete types of double-deck bus.
In reviewing the passenger transport situation in Reading, Mr. Calder has something to say concerning bus competition, and mentions that close observation of the activities of those proprietors responsible for it reveals strong efforts on their part to deal with traffic within the borough boundary at similar fares to those prevailing on the municipal vehicles and, in some cases, at lower fares. He expresses the hope that measures will be taken to suppress this breach of the regulations so far as concerns traffic within the borough, 'which, he contends, rightly belongs to the corporation.