INCREASED FARES OPPOSED

Press, Volume LXXII, Issue 21908, 8 October 1936, Page 16

INCREASED FARES OPPOSED

EVIDENCE BEFORE TAXI COMMITTEE

SUGGESTION FOR CONTROL BY RAILWAYS DEPARTMENT

(press association telegram.)

DUNEDIN, October 7. The Taxi Enquiry Committee heard further evidence to-day. . A G. Hunt, of Roslyn Taxis, suggested charging for the carnage of luggage. In order to limit the number of taxis, the witness suggested the establishment of depots in certain districts; then when the business warranted it the fleet of any depot could be increased. , , ~ Roy Patrick Steel, who founded the Gold Star Taxis and introduced reduced fares and the commission payment on the basis of 33 1-3 per cent said that the average earning of drivers was £5 or £5 10s weekly, working 146 to 160 hours fortnightly. He thought the fares charged gave a reasonable return. An increase would be disastrous, as fewer people would then use taxis, with the resultant unemployment. He opposed the limitation of taxis as leading to monopolies. He said he would favour regular hours and fixed wages if they had universal application Effect of Higher Fares E. R. Grace, an accountant, said that until recently he was the auditor of the Silver Fern Company. He submitted figures of the operations of the Silver Fern Company. The policy of the company had been to keep fares down In order to maintain or increase turnover. Any increase in the existing fares would reduce the number of users. If users were reduced, the number of cars would be reduced, and consequently if the number of .cars were reduced, the number of drivers must be reduced. In his opinion, increased fares would eventually put some companies out of operation. He estimated that Silver Fern drivers drove 95 miles daily and were actually driving five hours a day. The average nngs were about £5 a week. An important thing in the taxi business was to keep the wheels moving. if possible. 24 hours of the day. Eight or 10 years ago. taxis were a luxury, and since then companies had succeeded. Drivers had had a fair living and the public had had good facilities. In addition, the owner of capital had had a good return for his risk. He held the opinion that if it had not been for cheap fares the Silver Fern Company would not be in business todav. Payment by Commission In answer to the chairman (Mr P. M. Butler), Mr Grace said that he agreed with the policy of paying by commission, not for driving men, but because it seemed fair to him. The owner risked his cars and capital, and if there were no business .e suffered. Similarly, the driver risked his time ana if there were no business he also suffered He would not favour wager, but if wages were made compulsory hj did not see why drivers should not hj paid at least £4 12s 6d a week. The wheels could be kept moving cn wages as well as on commission, provided that the fares were sufficiently attractive W O. Kempthorne, now of Omakau. but until a week ago a taxi proprietor in Dunedin, submitted two long written statements, in which he outlined with considerable detail his views on the industry. He favoured the amalgamation of taxi services and town deliveries under one form of unified control. He advocated some form of public control, preferably by the Railways Department, which, he said, had the necessary organisation, both in the cities and in country towns. To place taxis and deliveries under its control would merely be to extend its present operations. Eliminating Overhead Costs He said that heavy overhead costs and unnecessary mnning were involved in the industry as it was at present constituted. Taxi services could bo made to pay at a charge of sixpence a mile under unified control. As Mr Kempthorne had had 17 years’ experience as a taxi proprietor, he was questioned at length about the history of the industry in Dunedin, He said that the only companies which went cut of existence were the original Red Band, the original Gold Band, and the Original Gold Star. He knew of from 12 to 20 owner drivers who had ceased -to operate. He expressed the opinion that there were twice" as many accidents as there should be, the chief reason being the speed of the modem car.

The hearing was adjourned until tomorrow morning.