Services Which Operate at a Loss
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FARES increases on services operated by Western S.M.T. Co., Ltd., and Scottish Omnibuses were approved by the Northern Traffic Commissioners at Carlisle last week.
Mr. R. M. Palmer, for the applicants, said that the basic reason for the application was the increased costs resulting from the wage award to bus employees which, in a full year, would amount to £242,700. The total net income of the Western S.M.T. in 1960 was £766,775 and with the increased costs this would drop to £452,000 in a full year. If approved the application would bring in £715,000 which was still "far short " of the 1960 figure.
No less than 41 per cent, of the Western S.M.T. services were operating at a bass, said Mr. Palmer. Services operating in the Northern area showed a loss of 3.02d. per mile during 1960. Scottish Omnibuses were in a similar position, but their application was in respect of services which made "only brief excursions into England."
Mr. J. A. T. Hanlon, the chairman, granting the application, said: "These wage awards are something over which the company has no control. Nevertheless we have to accept that this money has to come from somewhere, We feel there is no alternative but to allow this company to recoup its additional costs in
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LODGE PROFIT DROPS
GROUP net profit after taxation of Lodge Plugs, Ltd., for the year ended March 31, 1961, was £83,849, against £95,680 for the previous year. Final dividend is 15 per cent., less tax. making 20 per cent.