Motor-Omnibuses Do Not Pay.

Dominion, Volume 1, Issue 22, 21 October 1907, Page 5

Motor-Omnibuses Do Not Pay.

~,.■,..'.. -; -*- ■ : DIRECTORS EXPLAIN. . " ' The motorTomnibus in .London does not pay, and is notjikely to do so for.some time to ■come, said" Mr. Henry Hicks, deputy-chair-man of tho London General Omnibus Com-, pany, at the Company's meeting on Septom--' ber 5. ■ The question-(says the "Daily Mail") "was,;one of several raised by 'shareholders after the explanation of the loss on the halfyear's working given by Sir John Pound, the chairman. ' His statement included as ■■ causes of the loss:—(1) High price of provender; (2) higher price of petrol; (3) police stringency as ■ regards motor-omnibuses; (4) cold arid rain,' meaning 'a ''loss"of f thousSp!ds,,a ,week;, (5) new tubes; (6)','bver-deyclopmont of tho' London County Co'uncili traniways;'.'(7)\competition of motor-omnibuses and cut in fares. Sir John Pound stated, however, that the directors'were in conference .with the railway and ornnibus companies to" readjust facilities, and enable them' to,work at' a. profit. Omnibus miles had been' reduced frorii 10,600,000 to 15,900,000. Reduction in fares meant a drop of ,£16,600, or, in two years, £37,,000. A' loss of £20,700 was due to the smallest number of' passonger's per omnibus mile. , , !. ' SUPPLY EXCEEDS DEMAND. : What were the prospects, ho asked, of the density of traffic improving?. Public service vehicles wore more numerous than could nowbe profitably; employed. The!most glaring instance was probably, that of the L.C.C. electric trams. At certain points, a procession of these huge "traffic congesters" almost touched, one another, carrying only a fair load.for a quarter of the number. It seemed to him a mattor of calculation with'regard to certain motor-omnibus companies now running at a loss how long/their financial arrangemerits would permit, their continuing ■' as .going concerns. Some horseomnibus companies and proprietors had already withdrawn their motors. His shareholder's might' expect some relief, therefore, and he could not- imagine that ! the public would provide capital for a now venture. At present'the demand of London traffic had been exceeded by the supply, but it would in tho end right itself, and then they might look for their receipts, to-return to their former loveK The company's men were now much more efficient, and when the present claims wero cleared off the compensation' item'should be at a lower, rate per motor. The total net liability of tho company, £1,381,000, was more than' covered by the assets, consisting ■' of properties, ■ stock-in-trade, and plant, and in addition they had cash' and investments (taken at cost) of over £200,000. The company, was, therefore, in an exceptionally strong position to withstand tho present strain. ..,..,'■... , ! HORSES 1 , OR MOT6RS?",,.' Mr. Henry Hicks stated that there was as yet no chance of obtaining an improved type of motor. Their cars were constantly under repair, but they had not ninety off the road, as had been stated. Tho new amalgamated company, had. thrown hundreds of motor-om-nibuses upon the streets, and had damaged the General and the Road Car Company as well. Tho result would- bo a smash up before very long among some of them. (Hear, hear.) Much as they themselves were hurt,; they could stand the loss; they were'in a better position for the future than any of the others; some of them would not, he ventured to prophesy, stand-up for very long. Ho did not believe•' that.motor-omnibuses had; been run in, London at a profit at all.' He confessed that, all their drivers were not "driving ...angels," but the directors wero doing everything possible. Although ho did not think horse-omnibuses would ever be eliminated, from the streets of London, yet ho thought that it might be possible to make motor-omnibuses pay.