COMPENSATION SOUGHT.

Auckland Star, Volume LVIII, Issue 235, 5 October 1927, Page 16

COMPENSATION SOUGHT.

FORMER BUS PROPRIETORS. PETITION TO PARLIAMENT. (By Telegraph. — Parliamentary Keporter.> WELLINGTON, Tuesday. Claiming that they lost heavily by reason of the unfair competition on the part of the Auckland City Council and had suffered grave injustice under the provisions of the Motor Omnibus Traffic Act, 1926, S. H. Gallagher and R. Sterling, formerly proprietors of the AucklandPoint Chevalier motor bus service, seek compensation to the extent of £3403 in the petition presented to the House by Mr. H. G. R. Mason. Petitioners say that from June, 1923, till October, 1020, they conducted a service between tfae city and Point Chevalier, their buses being the principal means of conveyance, ana providing a safe and efficient service. Sixpence per cash trip was charged/where a shilling was charged formerly. On December 23, 1925, Without warning, the Auckland City Council commenced to run three buses on the route, charging fourpence cash. The council's service was insufficient of itself, and the fare charged constituted unfair competition, as public money was used to destroy private enterprise. Both petitioners and the council lost financially owing to the ruinously low fares charged. Between December 23, 1925, and October, 1926, petitioners lost £2403, that sum representing the difference between the earnings of the service in respect of actual passengers carried at City Council rates and the fares charged prior to the institution of the council service. Petitioners claim that the population of Point Chevalier district more than doubled itself, almost wholly 'as - a result of their efficient service. When the Legislation of 1926 came into force petitioners were compelled to withdraw their jbuses, and to sell them to the council. By reason of the proviso in the Act, the council could not take into account goodwill in respect of the service which petitioners had built up at considerable trouble, diligence and expense. When the City Council took over the omnibus service between the cfty and Point Chevalier the fare was increased from fourpence to sixpence. Petitioners allege that as, their services had principally contributed to the great growth in population at Point Chevalier they would, in the ordinary course, have been entitled to goodwill, and by.reason of the Act of 1926-27 suffered grave injustice, practically amounting to confiscation. They value the goodwill at £1000, and seek compensation to that extent, plus £2403 for losses sustained owing to "unfair competition by the Auckland City Council."

The signatures of about a thousand sympathisers, mostly Point Chevalier residents, are attached to the petition.