Higher Fares for Three South Wales Operators: Others Apply
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Red and White's Second Bid Succeeds : Yorkshire Operators Want New Scholars' Contract Rates
THE South Wales Licensing Authority, who, in May, refused to grant a " blanket " increase in fares to Red and White Services, Ltd., has now authorized the company's revised application. Higher fares have
also been granted to the Western Welsh Omnibus Co., Ltd., and Merthyr Tydfil Corporation, but Neath and Cardiff Luxtry Coaches, Ltd., have been refused permission to increase rates between Cardiff and Swansea.
In Yorkshire, 17 bus undertakings are seeking revised and increased rates for scholars' contract tickets. Newcastlt upon Tyne is to try again.
Increases are also proposed by SunderlanZ, Grimsby, Lincoln and Maidstone municipal undertakings.
Mr. F. A. Stockdale, for Red and White, said that the " blanket" increase proposed in May (The Commercial Motor, May 27) would have raised revenue by an estimated £96,000 a year. The new application would bring in an extra £95,878, increasing profits to £171,239, or 5.26 per cent, of the capital employed.
For Western Welsh, Mr. Stockdale said that Most of the routes affected by the proposals were in the Monmouthshire valleys. If the application were granted, it would increase revenue by £31,000 in a full year. With this, the estimated profit at March, 1956, would be £118,000, or 6.06 per cent. of the capital employed.
Company Should Reap Benefit
Authorizing the Western Welsh increases, Mr. C. R. Hodgson, chairman, said that one of the main criticisms of the objectors had been the financial prosperity of the company.
"Jo our view, that prosperity is very largely due to the sound and careful policy of the company in years gone by," he continued. "We feel they should reap the benefit and not be penalized unduly because they have accumulated funds and run the company wisely in a financial sense."
Rejecting the application by Neath and Cardiff Luxury Coaches for an increase in fares on their service between Cardiff and Swansea, Mr. Hodgson said that the "very substantial" gross dividends of 22.7 per cent. paid in 1954 showed that the company were in a financially healthy state.
"There is a further reason," Mr. Hodgson went on. "It means that the long-distance runs in the west beyond Swansea would increase also, and that would mean a snowball which must be stopped rolling."
Mr. Hodgson added that if the company felt justified in making a further application after six months, it would be considered.
The Authority granted the company permission to bring their fares on the Swansca-Margam service into line with those of the South Wales Transport Co., Ltd., operating over the same route.
When Merthyr Tydfil Corporation H38 successfully applied last week to the South Wales Licensing Authority for
permission to increase their fares, it was stated that last year the transport department made its first profit for seven years. The surplus of £1,513 was likely to he turned into a loss of £14,083 next year, as the undertaking faced an increase of £25,333 in costs for 1956.
The proposed fare increases would bring in an additional £28,169, and the profit expected was just over £4,000.
Revised and increased rates for scholars' contract tickets are being sought by 17 Yorkshire bus undertak ings following a recommendation of the Yorkshire Regional Fares Committee.
In their application to the Yorkshire Licensing Authority, the operators have proposed that the existing rates for both term and yearly tickets for two or four journeys a day should remain.
A new feature is the provision for different charges, according to whether
the contract covers five or six days a week. Yearly rates are calculated at half the ordinary adult single fare plus
50 per cent., and the rates per term at a third of the cost of the yearly contract to the nearest 3d. above.
The proposed minimum is calculated from the 3d. ordinary adult single fare, instead of, as at present, the 2d. or 2id. rate, West Riding County Council and nine local councils are to object against one of the undertakings, the West Riding Automobile Co., Ltd.
Newcastle upon Tyne Transport Committee, who were recently refused permission by the Northern Licensing Authority to raise fares only at certain times of the week (The Commercial Motor, June 17), are making new proposals to the city council. In addition to a proposed revision in ordinary fares, based on a recommendation made by the Authority, they also suggest the abolition of workers' concession rates.
The new proposals are that the 1 id. rate should cover a distance of up to 1.1 miles, with id. for each succeeding halfmile up to 3.1 miles, when the charge would be id. for each additional mile.
The abolition of workers' weekly tickets and the lid. minimum ordinary fare were among suggestions for increasing income made by Mr. H. Jones, general manager of Lincoln Transport Department, in a report to the council on Tuesday. Other proposals, which Mr. Jones estimated would help to bring in an extra £16,600, were the revision of children's fares and an increase of id. in the charge on "football specials."
2d. Minimum Fare Maidstone Town Council, whose transport undertaking returned a deficit of £3,647 last year (see page 762), are to apply for permission to raise the minimum fare from lid, to 2d., and to abolish workers' and scholars' tickets.
Fare increases designed to yield an estimated £80,000 more in a year are being sought by Sunderland Corporation, who face an expected deficit of £47.000 on the transport undertaking by March 31, 1956.
One of the proposals is that id. be added to 40 per cent, of the present fares. It is also suggested that the price of the universal return ticket should be raised from 6d. to 8d., and that the first stage out of town on each route should he shortened to a mile for lid., with half-mile stages after the first.
Grimsby Town Council have approved a suggestion by the transport committee that workmen's returns should be abolished. Instead, it is proposed that a single ticket at half the normal ordinary single rate should he available before 8.45 a.m, on weekdays. The council also agreed that all Sunday fares should be raised by d.