MOTOR BUS FLEET.

Auckland Star, Volume LVIII, Issue 41, 18 February 1927, Page 5

MOTOR BUS FLEET.

COURT TO DECIDE VALUE.

ROYAL COMPANY'S SERVICE.

COMPENSATION OF £2S,Bti6 CLAIMED

Claiming £28,866 as compensation for the fleet of 28 buses, plant and garages taken over by the Auckland City Council in October last, the action brought by the Royal Motor Bus Co. was commenced at the Suprema Court this morning before Mr. Justice Stringer, who had with him as assessors the Hon. E. W. Alison (for the Royal Motor Bus Co.) and Mr. G. Hutchison (Tor the City Council). Mr. V. R. Meredith appeared for the plaintiff, and Mr. J. Stanton for the Citv Council.

In opening his case, Mr. Meredith said the Royal Motor Bus Co. started in October, 1924, with two buses, and the organisation had continued for a period of two years. In 1925 the company merged with the Black and White Bus C-0., but when the Motor Omnibus Act was brought into force there was no alternative but for the company to hand the service in to the City Council. The Act gave the licensing authority, which in this instance was the City Council, power to fix the fares, time-tables and anything else, which meant that the opponent of the bus company was given control. The obvious effect of the Act was to force the bus company to sell. The private owner running a transport service in the city and suburbs had no option but to say to the council: '"Take over my service." The Act must be looked at in general effect, and the general effect was to make the private owner sell or be faced with ruin. The proof of the pudding was in the eating, and all the services or particular routes had been handed in. The penal clause in the Act compelling bus companies to charge twopence more than the trams on tram routes came into operation on November 1, 1920, and when the fleet of buses was taken over in October it was just at the beginning of the summer months, when the takings and profits would be largest. The value must, said Mr. Meredith, be assessed on the business done at that particular time. The council took over the fleet on October 26, since when the council had had the use of it. The complete fleet of 28 buses, ready to carry on a service was, i said Mr. Meredith, of a far greater value than 28 separate buses. The fleet aggregate value had a totally different bearing as to whether it was profitbearing or not. "The council claims, I understand, that the value of the fleet is merely the value of each individual bus and item connected with it. We claim that the value is the value of the fleet of buses as a running transport service, which gives an enhanced value to the individual items connected with it. The test of the value is this: If the fleet of 28 buses had. been burned in one night, what stun would have to be paid for a fleet of 28 buses ready to carry on the service next day if it were possible to get them? You could not go to a man and say, '111 buy seven or eight second-hand fully-equipped buses from you,' and offer him merely the value of each separate bus," said Mr. Meredith. It would be necessary to have the one make of bu3 in order that the parts would be standardised. The price that would have to be paid next day to replace a complete fleet and continue a transport service was the real value of the fleet. The evidence he would call would first be of the value of each individual bus, and secondly the collective value of them as a fleet running a service. The claim put before the Court was an honest and correct one. On the question of depreciation and life of a bus. Mr. Meredith said that nobody could what the life of a bus was, because it depended upon the conditions it was run under, the roads being allimportant.- A bus had only depreciated 100 per cent when it was found unprofitable to keep it in repair. The fleet now being considered had been run on concrete roads, and under the most perfect I conditions. "I want to mention this ! fact," said Mr. Meredith, "which gives us a value in an outside way. On the day prior to the council being served with a notice to take over the service one of the buses was completely burned by fire. That bus was insured for £550, and the insurance company paid over the full amount in hard cash. And insurance companies do not give away good money for nothing," concluded Mr. Meredith.

Frederick D. Martin, manager of the Royal Motor Bus Co., said the type of bus used was the Reo, and all were kept in good running condition. The Reo had the advantage of being a bus of which spare parts could easily be secured, and at a-quarter or a-third of the cost of spares required for some other makes of buses. At midnight on October 24 the council took over the buses, and next day made an offer of £14,620 for the buses, plant, everything. (Proceeding.)