BELL BUS SERVICES

Dominion, Volume 29, Issue 221, 15 June 1936, Page 6

BELL BUS SERVICES

Purchase by State CHANGE-OVER ON JULY 1 Arrangements have been .made for Ihe taking over by the Railways Department oC the bus services at present operated by the Bell Bus Co., Ltd., on the Wellington - Ngaio - Khandallah route, and these services will be operated by the Railways Department as from July 1, 1936. “The whole of the negotiations have been carried through amicably as between the vendors and the Railways Department,” said the Minister of Railways, the Hou. D. G. Sullivan, in announcing the purchase. ‘ln view of tlie projected elcctrilieat ion of the Wellington-Johnsonville area, Parliament in October last passed the Railways (Wellington-Johnsonville) Act, 1935. Under this Act the Railways Department obtained special rights with respect to the operation of passenger transport services in the Wellington-Khandallah-Johnsonville area, and arrangements were then made with the Bell Bus Co.. Ltd., for the department to take over the assets of that service as from the time when the electrification of the Wellington-Johnsonville lino became an accomplished fact. The arrangement also provided that. the valuation placed on the assets of the service as at October, 1935, should be the price paid when the service was actually taken over by the Railways Department —which would be approximately two years subsequent to that date—with the department having to accept responsibility for all depreciation due to fair wear and tear which occurred in the meantime. “Soon after the present Government came into office the General Manager of Railways (Mr. G. H. Mackley) reopened the question, and, with the Government’s approval, the. arrangement was reviewed, further discussions taking place between the general manager and the Bell Bus Co. which have resulted in the present agreement, whereby the department, takes over and operates the bus service from Hie beginning of next month. ’