INCREASE IN FARES.

Auckland Star, Volume LXI, Issue 165, 15 July 1930, Page 8

INCREASE IN FARES.

OTAHUHU SERVICES.

TRANSPORT BOARD'S

DECISION.

RECOMMENDATION ADOPTED,

The Passenger Transport Company's application for an amendment of the scalo of fares for the Otaliuhu, Papatoetoe and Mangere services was settled at a special meeting of the Auckland Transport Board this morning, when a recommendation, prepared by MiY G. C. Gorrie, accountant, was adopted.

Mr. Gorrie reported that in order to ensure a dividend of eight per cent 011 the capital of the company it would either be necessary to increase all cash fares 0110 and three-quarters per cent, or all fares, workers' weekly, concessions or cash fares, one and a quarter per cent. The company, however, did not wish to raise all cash fares, nor was it the wish of the residents that workers' weekly and concession tickets be increased. It appeared to him that an increase of three and a half per cent 011 the cash fares which the company proposed to increase would ensure a dividend of eight per cent. However, without running into halfpennies and farthings, it was impossible to raise the fares by only three and a half per cent. Moreover, the residents, onco they were satisfied that some increase was necessary to allow the company a profit, would not restrict such increase to an amount only equal tc eight per cent. They would be agreeable to twfcnty per cent 011 the present capital, allowing a dividend of ten per cent.

Mr. Gorrie added that there was at present an unlisted return fare of 1/3 from Panmure to the city and suggested that it be raised to 1/5 to keep it in lino with tlio others.

Members of the Passenger Transport Company, Ltd., and of the local authorities, who opposed the increase in fares, were present at the meeting and stated their views of the problem. Mr. X. B. Spencer, of the Passenger Transport Company, opposed Mr. Gorrie's report in that at the time he was acting as technical adviser to the local bodies. He suggested that the increase should be made 011 workers' weekly tickets and concession- cards, as an increase in the cash fares would tend to drive passengers to seek for other means of transport'. He added that the company would be forced to cut out apprentices' concessions if they could not make profit in any other way. The loss for the first six months of this year had been £1200 and would probably be £2500 by the end of the year.

Mr. Baildon asked what had causal the loss, and Mr. Spencer said that while the company were using bigger buses the takings mile for mile were less. zine tax alone accounted for £2500 a

year. Mr. R. W. F. Wood, representing the local bodies, claimed that Mr. Gome's report was made en unaudited balance for the first six months of the year, and Mr. H. A. Stedman redded that the local •bodies felt that any increase should be .one which would not give the company an undue profit.

Mr. Gorrie admitted that his report was made on unaudited figures, but thought that if the recommendations were caried out they would enable the company to make a profit.

"An increase in fares is due to the company," said Mr. J. A. C. Allum, the chairman. "They must have a reasonable return on their capital If they do not find Mr. Gorrie's recommendations working satisfactorily they are at liberty to come to the board at any time they like."