THE DIFFICULTIES OF MOTOR COACH OWNERS.
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The Views of a Number of Prominent Proprietors Upon Taxation, Licence Regulations, the Stabilization of Fair Rates, and the Prospects for the Coming Season.
AMOST important gathering or motor coach owiters takes place to-day (Tuesday) at Nottingham, at the invitation of the Commercial Motor Users Association, under the chairmanship of the president of the National Council of that Association, Mr. E. S. Shra.pnell-Smith, C.B.E. There are many matters in connection with the running of motor coach services which call for careful consideration, and many pi.oblems that require to be solved.
We have been in correspondence with a number of the leading coach owners with a view to the elucidation of these problems, and it seems to us that if we give a, précis of the expressions of opinion that we have received prior to the meeting the air will be materially cleared. We have asked coach owners a series of questions the first three of which were :—(1) Whether facilities should be sought from the Government for the transference of a licence from any vehicle laid up to any unlicensed substitute vehicle. (2) If it would assist owners if licences were dated from any date, such as is done in the' case of an insurance policy. (3) Whether the issuing of oneday licences would enable operating companies to reduce the number of idle days.
The majority of the replies received seem to favour the suggestions contained in our questions, and, in 051' summary of the .views received by us, it must he taken that the -Opinion of our correspondent is in favour unless we specifically .say otherwise. The replies to the other questions follow:— C .P. Rymer, Ltd., Wallasey.
"We find that, on an average, three months in the year is the maximum time that out motor coaches can be, even approximately, fully used. " With regard to the need for the formation of a separate National Motor Coach Owners' Association, the only reason for the establishment of such a body is the question of rates, which would be its primary function' although; of course, it can be useful in many 'other ways. The only way in which an association could be successfully created would be to have, as a first principle of its programmb, an attempt to stabilize rates in the different districts.
"With regard to the influence of last year's bad trade on the motor Coaching season, we think that the effect will be to lessen the number of operators :in the coming season, -whilst we think it will also retard the evolution of new vehicles rather than otherwise, as there is no surplus capital available At the moment for experimenting. •
"You ask if it would be sound policy to write down the capital .valuation of machines and plant in view of the lower cost of replacement. We certainly think it advisable to do this if it is at all possible.; but, generally speaking, it could net all be done in one year, but should be spread over a period of years.
"As to the best policy for thecoming season we would prefer a etabilized and fair price to go right season, the season. Change of fares during the eeascm does more harm than good, by causing the public to think that further Deductions could be made if sufficient pressure is brought to bear, or they abstain from travelling.
" The best way to ensure greeter stability for the motor coachindustry is, in our opinion, for every owner thoroughly to understand' working costs, and for the trade to be coached to the fullest possible extent in this important subject." Boon's Depositories, Ltd., 96, Acre Lane, London, S.W.2.
" Instead of the proposal that licences should he dated freer any date, we should suggest that only a pro rata amount or perhaps a little over) should be paid for the licence from the date when taken out to the next quarter-day. We do not think that one-day licences will be a commercial proposition, as they would involve more trouble than they would be worth.
" With regard to a Coach Owners' Association, we do not think that they would ever be able, to deal with the question of rate-cutting. One has only to 'refer back to the M.T.A. meetings of 1921 and 1922 and their programmes and resolutions, and to inquire whether those resolutions were kept. " In our opinion, the only possible way to maintain rates would be the combine of all coach owners in areas or districts, the pooling of all work and ali coaches, and the distribution of work in correct proportions as the orders are remitted to them, in comparison with the number of vehicles owned by the member doing the work, but we consider that, whilst we have the owner-drivers or the man with one or two coaches to contend with, this proposition would not be altogether satisfactory, especially as things are to-day; and again, of course, there is always the possibility of a new roan starting and cutting. We are afraid that the only remedy for this will be the survival of the fittest, but we would welcome any suggested remedy that could be adopted by the whole of the members in a district.
" The influence of last year's bad trade on the coaching season, coupled with the existing motor taxation, will prevent developments, and we think that coach owners this year will only license during the snort profitable part of the Beason. Probably some coach owners will reduce their fleets. •
"Our view is that the present type of vehicle for a charelbanes is quite wrong, being based On the conception of the lorry chassis. Last year's season showed that the moat profitable vehicle was the 50 to 25-seater that could run on a light 2-ton chassis. Our experience has been that these vehicles ere far more profitable to rue than 28 or 14-seaters, although. the 14-seater on a 1-ton chassis would be equally as profitable at holiday resorts.
" We think that a 20 per cent, depreciation, as is usually adopted by auditors, is quite insufficient. The amount of writing-down should be 33k per cent, per annum to allow for the scrapping of the vehicle in three years, The greater allowance ought to be agitated for with a view to its being accepted by the Commissioner of Taxes. We might add that this point is usually best sight of by small coach owners when tendering for work.
"With regard to fares for the coming season, we consider the basia of ticket rates should be the railway charges. In all eases they should be a little under, excepting on Bank Holidays and for special parties, and the signature of all coach owners running daily trips to certain specified places should be obtained for the non-cutting of the accepted ticket rate.
" In our opinion, the beat way to ensure the greatest stability for the motor coach industry would be the formation of an association excluding all firms that are directly or indirectly running omnibus services."
W. W. Williams and Son, 64, Locking Road, Weston-super-Mare.
"Our vehicles are idle from October 1st, as it does not pay to take out a licence for the small amount of work that can be done after that date, but we could certainly have done some runs in October and kept our drivers on to the end of that month had it not been for the high cost of the licences. In our opinion, the beet form of tax is one on petrol con-sumption • then we could use our coaches whenever an order was offered during the six months of present idleness, as football teams often require transport. "One-day licences would assist us very much doring this six months, although it seems as if it would entail too much work for Government departments.
"I agree with the need for co-operation. Had the owners of coaches in this district agreed to a paying" minimum rate per mile, we should have had a very much better season last year. Many coach owners took big parties for long runs at fares which did not pay."
United Service Transport Co., Ltd., 143, Chpllant Road, London, S.W.9. " We are not in favour of the one-day licences. It would open the way to fraud, as it would not be possible to assign a new colour for a particular day.
"It is not to be expected that there will be much, or R30
any, improvement during th,e coming motor coach aeasoe largely owing to the results of the bad year of 1.922; nor h there likely to-be much, or any, development of long-distance runs, because of the keen competition from railways. .
"We do not admit the need for a National Motor Coach Owners' Association, end, moreover, think it impossible ta fix minimum rates that could generally apply, as conditions vary so much, especially in the case of inland towns and seaside resorts.
In our opinion, with regard to.rates for the coming season, they should be started on a low basis in order to cultivate the demand, for bookings for private parties, but no one should cut rates to such an extent as to show a loss. The day for high rates, such as prevailed in 1922, is past and gone. The rates, once fixed, should be adheredto
"The way in which to ensure greater stability for the motor coach trade is for all owners in a district to combine to arrange their programmes, fixing terms, and agreeing to a -penalty clause. This seems to be the only possible way to prevent cutting. The system has been tried in several towns with a fair amount of success."
E. C. Hartley, 96, Argyll Street, Dunoon.
" I do not see, the need for a National Association for motor coach owners. Loral co-operation is best, because local conditions alone are the surest guide to the minimum in fares, whilst fair and unrestricted local corn-petition is the most reliable way to secure this minimum.
"I think that in the coming seaeon coach owners will only license their vehicles for the busiest periods, and I should not be surprised if fewer coaches are ordered from the makers.
" The present system of taxation is one that'etrangles all progress, either in the development of new services or the evolution of new types of vehicle. " I am in favour of starting the new season with reduced fares, which, however, should he maintained throughout the season. Last year's lost profits cannot be regained, but cheap fares will provide full coaches. "I do not think that much greater stability can be secured for the motor coaching industry, as it relies on the public demand for entertainment, sold wilt prosper so long as it provides novelty at a cost within the means of the general public, and with a degree of comfort, that can be compared with that provided by the average picture-house. I do, however, think that some stability can be gained by a return to the system of taxation on petrol consumed."
Road Motors, Ltd., Langley Street, Luton.
"We do not think that it would be practicable to arrange for licences transferable from one vehicle to another, or for licenee,s to be dated from any date, and we are of the opinion that there are strong objections to the issuing of one-day licences, for this would enable pirates to start'unf air competition at the busy times to the prejudice of those running regular services.
" We think that the yearly writing-off of 20 per cent. would fairly deal with the question of depreciating value."
Thomas Copp, 119, High Street, Ilfracombe.
" Aftea many yeaes of experience in this district, I feel justified in saying that it is absolutely beyond me to suggest a. practical means by which minimum rates may be established.
"Last year's unfortunate experience in the coach trade will certainly have scene influence upon the coming sea,sen ; but, so far as I am -concerned, I am only making one small addition to my fleet and converting two of my present vehicles to pneumatic tyres, in order to keep pace with the times, although, from a financial point of view, the wisdom of this step is largely open to question.
" With regard to faxes, I think it advisable to start the season on a reasonably low basis, and to adhere to those fares right throughout tbe season. If it be possible to get agreed rates amongst proprietors, oech rates should be fixed and held to for the whole season, hut this is the sort of thing I dream about without having any hopes of seeing it realized."
P. Longhorn and Sons, Longhorn's Garage, New Washington, Durham.
" Considering the possibility of accident, etc., we think it most desirable that a licence should be transferable to a similar Vehicle. If one-day licences were issued, the number of our idle days would-most certainly, be lessened. We regularly lay up two-thirds of sur char-a-banes fleet for eight months of the year."
" We appreciate the desirability of agreement. amongst coach owners with regard to rate maintenance. " We are hoping that the improvement in trade will give motor coaching during the coming season the much-needed fillip.
" We have taken the step of writing-down the value of our vehicles in view of the depreciated market. 'We anticipate booking most of our coaches at 14d. per passenger-mile.
" We believe that the greatest stumbling-block to the motor coach industry is the present, excessive method of taxation. A fair method, in our opinion, would be a small tax, say, 4d. per gallon, on the petrol consumed. The hackney carriage proprietor who has to pay down the duty in a lump suns at. the beginning of the year before he can commence to earn a shilling is at a great disadvantage, compared with an auctioneer, who has to pay a licence fee of £10, for the auctioneer can deal in thousands of pounds' worth of business. straightaway."
Great Yarmouth Motor Coach Co., 139, King Street, Great Yarmouth.
" With regard to the influence of last year's bad trade on the coming motor coach email', we do not feel justified in forecasting, with any degree of confidence; in this matter. .111 actual operating conditiens, competition will probably remain SS severe—those dropping out through had trade last year being replaced by new entrants. Date-cutting may even be mere marked, and rather lower fares become the rule.
"With regard to the best way in which to ensure greater stability for the motor coach industry, amongst other measures we regard a national scheme of co-operative advertising as of 'first importance. "Probably the greatest stumbling-block to the successful operation of motor coaches is rate-cutting." • Penryn and Falmouth Motor Co., The Praze, Penryn.
"We have only been able to use our coaches a little over one-half of the 'possible or licensed days. "We certainly think the issuing of one-day licences would reduce the number of idle days, but, at the same time, we should be satisfied with the concession of weekly licences,. "We think a National Motor Coach Owners' Association should deal with the question of rates, 'differentiating accord ing to district. .
" With regard to rates for. the coming season, without any binding agreement to maintain prices it will be impossible to obtain high rates, and will simply result in the continuance of the suicidal pulley of last year. "Jo our opinion, the greatest stumbling-block to the succeisful operation of motor coaches has been lack of experience on the part of many of the novices who have, in recent years, plunged into the business, and who, unfortunately, by their methods, created the impression that excessive profits were being made in the business."
Weston Motor Co., Regent Street, Weston-super-Mare.
"From April to September 30th last year we averaged three working days per week, and certainly think that the issuing of one-day licences would reduce the number of idle days.
" We think the fixing of minimum rates essential. The 'cutting of fares last year produced such poor -returns that the small car, which otherwise might have been popular, had no chance. In our opinion, the season should be started with reasonable fares, and these should be adhered to in order to create some confidence amongst the public. "Firm control through sonic definite form of organization would, we think, secure greater stability for the motor coach industry. Our great difficulty has been the cutting of prices by men who have no idea of running costs."
The Scottish General Transport Co., Ltd., Carmyle House, Bothwell, N.B.
"We think the transfer of licence from any vehicle laid up to any unlicensed substitute vehicle would be a very useful and welcome arrangement, but might be regarded by the Government as impracticable, owing to the abuse to which it might be subjected by unscrupulous owners. A more accept
able method might be for owners to pay licence duty on the greatest number of vehicles in service at any one time. The issuing' of one-day licences would certainly reduce the...number of idle days. If, however, the duty was fixed at a nominal sant per vehicle with a charge on petrol, daily licences would be unnecessary.
" The question of rates depends so largely on circumstances and local conditions that we fear even minimum rates would Le found unworkable. There are so many: small owners that it would be difficult to being everybody into line and keep them there.
The stability of the motor coach industry is, in our opinion, largely dependent upon the elimination of wasteful competition, regular and punctual services; and comfortable vehicles. The greatest stumbling-block to successful operation is the uncontrolled ` pirate ' competition, which is calculated to reduce the margin of profit to such a meagre figure that it arrests development and deprives the public of the improvements in vehicles and service which all well-organized transport concerns would otherwise willingly afford."
Caledonian Automobile Serk icas, Ltd., 27, Hope Strzet, Glasgow.
"Even if a National Motor Coach Owners' Association were in existence, we think it would be impossible to bind the members to the adoption of a paricuiar scale of charges, and we cannot see any means whereby the minimum rates could be stabilized.
Writing-clown capital value is undoubtedly a question which will leave to be faced by all moter coach owners who were established in business in, say, 1920, when the purchase price of vehicles and plant was so very high.
Regarding rates for the present year, we think the bAter way is to fix rates on the basis of present casts, and to adjust the rates as the costs fall.
"With regard to the stability of the industry, only evolution will make the motor coach industry stable. Experience
and time alone will solve the problem. The greatest stumbling-block is, undoubtedly, the ownerwho cuts without knowing why he does so. The reputable firm that looks ahead and makes allowance in its charges for depreciation and for the usual business emergencies is really unable to compete with the man who makes no steal allowances."
P. J. Ryan, 24, -Mann Street, London, S.E.
"Regarding the suggestion as to the transference of licences, I think a better method would be to substitute, for the present tax' a tax on petrol, so that the vehicle using the road would be the vehicle on which the tax would fall.
" I think rates will have to be reduced in order to compete with the railways.
" The present tax is the greatest stumbling-block to the motor coach industry."
The Scottish Motor Traction Co., Ltd., East Fountainbridge, Edinburgh.
" We agree with the suggestion rewarding the transference of licences. We are of opinion thatIcence.s should be valid for the period they are taken out from, and should date from day of issue. This would certainly help us, and would, we are certain, help the licensing authorities.
"If an association of motor coach owners is formed, such sa association should not, in our opinion, deal with rates, but should go out on the bigger questions, such' as legislation affecting the industry. An association of the kind should devote its whole time and energies to the shaping of regulations, which, while protecting the public, will give the coach proprietor a maximum of freedom for working his business.
" With regard to rates, the best policy is to fix the rates at what is fair for the journey involved, even although it may be a lower rate than one is really able to get. We are not. believers in fixing fares at a high level because you think you can obtain them easily, and we are just as much against fixing fares on a low basis, owing to the fact that, if you find your rates too low, it is very difficult to get them increased. . .
"The only way in which to ensure greeter debility for the motor coach industry is to map out interesting tours.; .make the faces as low as possible consistent with a fair return on the capital involved ; give good reliable service both with men and machines; and run the tours as advertised, whether there be few or a lot of passengers (as nothing sours the public more than planning a tour and then the coach proprietor stating that there is not sufficient passengers to warrant him running that particular tour). " We cannot see that there is any one outstanding stumbling-block to the successful working of motor coaches, cathough there are many minor. ones. We are of opinion that what motor coach proprietors have most to fear is more or less restrictive legislation, which will make the business so expensive to work that the public will not pay the prices, and that is where a motor coach proprietors' association can do most good."