LONDON TRAFFIC.

Dominion, Volume 1, Issue 299, 11 September 1908, Page 7

LONDON TRAFFIC.

COMPETITION—SfoKSte,' MT6'R)'' AM)" TUBE. (BT TF.LEGEAPn—rEESS /ESOCUTION^CqrTIiIGTn'.) Ldndon, - September '"9; ' The London General Omnibus Company carried 12,658,000 fewer- pasßengersi-in"1907 than in 1906. This' "Was ''chiefly owing' to' the competition of.tho,t,ube railways. COMPETITION AND! AMALGAMAT'IONv . . The London General. Omnibus, ; CoinpaAy is by far the oldest Established,"and" for' many years enjoyed a practical monopoly of London omnibus traffic. Then the . London .Road., Car appeared on the scene 5 , r 'a'ilH after' a''fetrugfele' gained a footing, and ;both''companies prospered.' But with the adveiit''of ! tho motor ,; omnibus l and the railway tube,.' a'-fiercer'-'conipetition set in. Of the motor omnibus companies, the Vanguard soon became a formidable rival to the older concerns, and Homo papers state that recently all the companies have' shown very bad results. The "Daily Mail" on June 26 mentions a report that the London General Omnubus Company lost J3200,000 during tho past year. ' 3'V'" i .i. -~o" C> . v ~~Z The competing companies; of' them;have looked for relief from competition by an amalgamation, and the "Daily Mail" recently stated that "an amalgamation between tho three great London, omnibus—.companies,-the-London General, the London Eoad Car, and tho Vanguard Motor-'bus, .has been. arranged. Negotiations have for some time been in progress, and they have now reached a definite conclusion. Tho G 'Tlastri/ji*'JX.oJ:6T)itins' Company, however, which it was expected would be included, stands out," The capital of the threo companies involved' in the .amalgamation is.as '''.i!hare"''< 1 . .. . '' 'Capital. Deben-V.., ' Issued tures. " Total. .London General . 1,023,592 - 300,000 : 1,3233)92 London Eoad Car... . 526.0(10-J50.000-4 ''676,000: Vanguard ... '665,006 ' 199,050 861,956 ; Grand totals.... j£2,215,4t>S JCGi9.OSO"je2.SG-iis l3 . "For the purposesalliance ■ (writes (he "Mail"), we und6rf;ti'itfl" this 'Mrse "omnibuses havo been UJiS'e'aoh' and the horses at as highi as, i3o.ench,>oof •conrsethe union is eminently/ dfsiTabl^^om' tho point of view of the tlirce "companies;-which' havo been suffering-severely'.fioinrfhc, ruinous, competition—it is said that the accounts of tho London General Omnibus Company:show, avloss. of ,£200,000 for the past year. At the same time, from the investment .point view? the terms of tho alliance will be closßly...scaiuied,. for if it is carried through on too high a basis of valuation the cortWflatioii "Wny iiten'Be face to face with the necessity of a' severo reduction of capital." B . , ;