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FARES AND COSTS SPIRAL

7th February 1958, Page 42
7th February 1958
Page 42
Page 42, 7th February 1958 — FARES AND COSTS SPIRAL
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Which of the following most accurately describes the problem?

WHETHER increased fares can ever cover the costs they are supposed to meet is problematical, according to Mr. R. J. Ellery, chairman of the Trent Motor Traction Co., Ltd. Addressing longservice employees, last week, he said the whole question was now ruled by the law of diminishing returns.

"It has been most marked that, as a result of the last two increases in fares, there has been a very considerable stiffening in passenger resistance," he said. "At the same time, our level of fares, even in 1958, shows only a modest increase compared with the general level of fares which applied before the war."