The Motor Omnibus World.
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The Voluntary Liquidation of the Manchester District Motor Omnibus Co., Ltd.
An extraordinary general meeting of the directors and shareholders of this Company was held in the Cannon Street Hotel, on Tuesday, December 4th, for the purpose of confirming a resolution for voluntarily winding up the undertaking. Mr. A. E. Hardman, who occupied the chair, said that at the last meeting a motion was carried, unanimously, in favour of winding up. Since then, the directors had been approached by a few shareholders, and a circular letter had been sent out advocating delay. Those in favour of this course held 6,731 shares. On the other hand, those in favour of the board's proposal held 39,649 shares, and, in addition, the directors had been promised 12,232 VOWS, which had, however, come in too late for use upon the present occasion. The board having given full consideration to the question of postponement could not agree to the same. Ile propose4 that the Company be wound up voluntarily, and that Met E. I. Husey, of the firm of Messrs. Jackson, Pixley, Browning, Husey and Company, 58, Coleman Street, E.C., be
appointed liquidator. Mr. J. F. Allbright seconded the motion. Mr. Morgan, a shareholder, whilst expressing the belief that the collapse was not due to any fault of the board, but was caused by the great opposition to motor omnibuses in Manchester, asked the chairman to give some details as to the financial position of the concern.
The chairman said that 75,000 shares had been applied for, and allotted; and on a los. basis, ;637,500 had been received. The promotion expenses amounted to ;.13,160; they had spent on the garage and equipment, rent, rates and sundries, 4'3,500; establishment charges had amounted to £2,200. Forty buses had been contracted for at a total amount of £30,000. The actual amount paid had been £12,300. Traffic expenses, insurance, etc., amounted to Z3,435. Altogether, there had been a total approximate expenditure of 4'4,743, and there was, at the present moment, in the bank, a credit balance of 44,000. Satisfactory. arrangements had been made with the bus construotian companies with whom they had contracts. Eleven buses, which cost a little under £800 each, were the actual property of the Company, and he believed they could be liquidated at about 25 per cent. off. So far as he could judge, if there was voluntary liquidation there would remain about -49,00o, which would admit of 2S. 6d. per share being distributed.
Mr. A. E. Healey said he would like to urge a little more consideration before the extreme and violent step proposed was taken. He had heard nothing from either the chairman or the directors to justify such a course, which amounted to the most ignominious collapse, in the annals of British enterprise, of any respectable flotation. Only nine months ago, they asked for ,6200,000, and 75,000 shares were taken up. Now, in a most unbusinesslike fashion, without having a printed statement of accounts before them, they were asked on a few figures, rapidly spoken by the chairman, and which he (the speaker) could not follow, to put an end to this enterprise. The chairman made something out of the fact that the meeting a fortnight ago was unanimous, but if it was known that a board had come to a certain definite decision, and had got sufficient proxies. the supineness and indifference of the British public a great. What should have been done was to have taken the shareholders into the confidence of the board a little earlier. There were many men in Manchester, and elsewhere, who had subscribed from ,C5 to .6.1,000 on the statements of the prospectus. These had been absolutely ignored, for it was the large shareholders, who were practically the promoters, who had got frightened and wanted to cut their losses. He was sorry for the publicity which had to be given to these matters, but it could not be avoided in the face of the refusal of the directors to afford reasonable information, and which refusal was little less than a public scandal. The chairman had said he held 39,000 proxies, but of these shares 13,000 were held by the promoters; the contractors, who were also personally interested, of course, held 20,000.
Therefore, the number of impartial shareholders in favour of the motion was less than those who advocated delay. The chairman, interrupting, said that Mr. Healey was Incorrect, and stated that one of the contractors had voted .00 late.
Mr. Healey went on to say that it was quite impossible to go into several matters, when the chairman, at the stroke of the clock, and without putting any written or printed statement before them, made, a mere verbal explanation. la placing a judged case before those present, the whole affair was a public scandal, and an ignominious collapse. The British public had been invited to put their money into this presumably seaworthy ship, but, at the first squall, the captain and officers proposed to abandon the craft. Was such a course consistent with the traditions of British enterprise? Was it not cowardly, because they received a rap on the knuckles, to throw up the sponge? It was nothing but a bogey to say that, if there was not voluntary liquidation t once, they might lose everything. The British Transport
ndicate had received £i2,250 in cash; those who profited the most were now the most nervous. It. was nothing to the shareholders if the business had been so mishandled that a sufficient profit had not come to certain persons; the board should not consider so much the persons who had received shares as those who had put down their sovereigns, in Manchester and elsewhere. There was public opinion behind this agitation which had been started to rectify a great wrong., and prevent a great disaster, for as one connected with, and having interests in, the motor industry and its accessory industries, he had no hesitation in saying that the abandonment of this undertaking would be severely felt. Why was it proposed to wind up the Company? Simply because the residents of a small section of the route which was covered had complained, and had influenced the Watch Committee. Was it right that a great public industry should go down, without a struggle, for the convenience of a few residents? Fifty years ago, there were many persons who objected to the scream of the steam engine, but now everyone desired railway stations nearer their houses. In the same way as the opposition to the railways had passed away, so would the opposition to the motorbus vanish. There would be a proper bus very soon, and then what fools the shareholders of this Company would look in, say, six months or a year. Even at present, a similar scheme to this was being put forward for Liverpool and district.
Mr. Morgan : With the same success? (Laughter.) Mr. Healey went on to say that, in his opinion, it ill-became the directors to make merry upon such an occasion ac this. (Hear, hear.) The speaker proceeded to read a letter from Mr. Collingwood, saying that he heartily supported the agitation against the board. He (Mr. Healey), however, wished to state that his action was not against the board; he wished to get the directors upon his side. They had listened too long to, and had been too much influenced by, the promoters and others. The speaker was going on to read a letter from Mr. Bainbridge, when he was inter
rupted by the chairman, who said : " He has not given you his proxy." Mr. 1 leaky; " Perhaps he has been got at, too. (" Oh, oh !") Proceeding, Mr. Healey said that he had received many letters from shareholders expressing indignation at the proposed winding up, and, in conclusion, he moved an amendment to the effect that the meeting be adjourned until the 12th instant, for further information, and that, in the meantime, a full statement of accounts be stmbmired to a committee of shareholders.
Mr. Morrell, in seconding the amendment, said he was not a Manchester man, and did not know whether it was the general practice there to take a kicking lying down. He, however, was utterly opposed to such a pusillanimous line of action.
The chairman said that if there was liquidation, all tfie accounts would be made out.
Upon a division, five voted for the amendment and against.
Before the resolution was put, Mr. Healey said he wished
announce that, if it was carried, he and his friends would at once take steps to bring about a compulsory liquidation, so that the directors could be examined on oath with regard to cerium matters.
The chairman said the directors were perfectly prepared to meet anything of that kind. Mr. Morgan asked who would recompense the shareholders for the expense of compulsory liquidation. Mr. Healey said that any inconvenience or loss to the shareholders would be caused through the action of the chairman and the directors in refusing information.
The chairman to Mr. Healey : Do you imply fraud? Mr. Healey : Certainly not. But I say you improperly refused me information in an impertinent letter, in which you stated that the board could not consent to the company being kept in a state of suspended animation until the opposition to motorbuses in Manchester had abated.
The resolution wa,: carried by is votes to 3, and the proceedings terminated.
The Chief Constable of Brighton, Mr. W. B. Gentle, has fixed a time schedule for motorbuses in that town, b■ taking a number of trips upon the vehicles himself.
Further action in respect of the voluntary liquidation of the Manchester District Motor Omnibus Company. Limited, is threatened, and we understzmd that a committee of the shareholders will institute an action in the High Court.
Owners who have suffered the rejection of certain types of motorbuses on purely technical grounds, and who have to endure the mortification of seeing identical vehicles at work, in the Metropolis. for more fortunate competitors, may recognise a golden bridge in Section 5 of the 1869 Act, and we believe that many of our supporters will follow the article on pages 308 to 310, as well as our Editorial references, closely.
Mr. John. Stirling advises us that he o ill put on the market, for next year, a 28-3511.p. chassis, designed for roads where the gradients are heavy, or fot country services. This model will retain all the distinctive features or the Scott-Stirling standard " Pioneer " type, which has proved its ability to work so quietly in London traffic, but will be made somewhat heavier to stand the greater strains imposed.
At a meeting of Lewisham Borough Council, on the sth instant, the Rating Committee reported having considered a reference to it from the Council as to the advisability of rating motor omnibus proprietors having routes in the borough, on the basis of profit earned within the borough, as applicable to the tramways. The Committee was advised that it had no power under the Valuation Metropolis Act, 1869, or any other Statute, to rate omnibus routes.
Several London motor omnibus companies are experimenting with the use of paraffin carburetters. This journal has, for a long time past, advocated the fitting of two tanks, one to contain petroleum spirit, and the other paraffin. Even if operating companies become large users of the heavier Borneo grades of spirit, some of which reach as high a specific gravity as o.780, it will be found advisable to have a small auxiliary tank for starting purposes, to contain the lighter spirit.
The Chief Commissioner of Police for the Metropolis has directed, in accordante with powers vested in him by Acts 2 and 3 Viet., cap. 47, section so for regulating the route of all carriages during the hours of Divine service, that every motor omnibus shall, while passing places of worship on Sundays, Christmas Day, and Good Friday, do so at a slow pace, so as not to cause unnecessary vibration, and that there shall be no changing of gears, blowing of horns, or other unnecessary noise, within a reasonable distance of each side of any such edifice, except it be done to prevent an accident. The London County Council has requested that these regulations shall be made to apply to the schools maintained by the Council, but we fail to see that the cases are parallel.
The London General Omnibus Company, Limited, has been summoned for an infringement of the Metropolitan Public Carriage Act, which the police allege to have occurred during the recent strike of motorbus drivers. It is stated that an unlicensed man was allowed to drive a motor omnibus, and the police do not regard the case as being one of " unavoidable necessity," which allows for the engagement of unlicensed substitutes, in cases of emergency, for periods not exceeding 24 hours.
So great has been the interest in Mr. Thomas Clarkson's paper on " Steam as a motive power for public service vehicles," which was published, at length, in our issues of November 22nd to December 6th, that a third meeting of the Institution of Mechanical Engineers has been found necessary in order to allow the numerous speakers to pass their remarks. Mr. Clarkson is to reply, on the various points raised, at the adjourned meeting, which will be held to-morrow (Friday) night at Storey's Gate, St. James's Park, S.W., at 8 o'clock.
The appeal of the Mersey Railway Company from the injunction granted by Mr. Justice Warrington (see " Tint COMMERCIAL MOTOR, March isth, 1906, page 6), ordering it to desist from carrying on the business of omnibus proprietors, on the ground that the services were not incidental to or eons sequential upon the power given to the company in its Act, and the operation of which injunction has been stayed during the interval, came before Lords Justices Vaughan Williams, Fletcher Moulton, and Buckley, last week. Their Lordships held that the company had not been running its omnibuses so as to bring them within its statutory powers, and agreed to isostpone the confirmation of the order of Mr. Justice Warrington so as to enable the defendant company to modify its system in such a way as to supply omnibus facilities only for passengers going to or from the railway stations. Whilst taking the view that the railway company bong fide started the omnibuses for the purpose of the passenger traffic of the railway, and not with any intention of including in its business the business of an omnibus company as an independent speculation, their Lordships felt that the business had been conducted in such a way as not to
differ from an undertaking of the latter class. They held, however, that there was no reason, based on any law or on good sense, why the company should not collect and distribute passengers from its railway services. As the oom pony is prepared to abandon. separate fares for persons travelling between in termsdiate points, and to give an under taking that it will, in future, make all fares to or from some one of its stations, to the exclusion of fares to and from places neither one of which is such a station, thereby limiting its omnibus traffic to passengers going to or coining from the railway, a settlement is likely to be arrived at which will determine the dispute between the Birkenhead Corporation and the company, pending the obtaining of fresh powers by the company, " Vanguard " service No. 4 was extended, on December 3rd, to King's Cross, so that it now runs from Wandsworth to King's Cross, via Putney, Hammersmith, Shepherd's Bush, Notting Hill, Oxford Circus, Totter ham Court Road, and Euston Road.
The London General Omnibus Company started a new service from Barnes to Oxford Circus on Monday, December loth. As this service runs over much the same route as the " Vanguard" service No. 4, they may be said to be in competition. An interesting feature of this competition is that the " Vanguard " service is worked entirely by Milnes-Daimler omnibuses, and the " General "service entirely by De DionBouton vehicles.
Our Fortnightly Census: total recorded, 795.
From the following figures it will be seen that a net increase of only six vehicles has taken place since our last returns, the total then being 789 buses.