NO COMPENSATION

Evening Post, Volume CIX, Issue 14, 17 January 1930, Page 8

NO COMPENSATION

BUS COMPANY CREDITORS DECISION OF THE CABINET (By Telegraph.) (Special to "The Evening Post.") AUCKLAND, This Day. The creditors of the Mount Eden Motor-Bus Company, Ltd., are not to receive compensation from the Government for losses suffered following the passing of the Motor Omnibus Traffic Act, Cabinet having declined to accede to a petition presented to Parliament last July. The petitioners, who asked for £10,000, received a favourable reception from the Public Petitions Committee of the House, which recommended favourable consideration being given to the request, a recommendation which Cabinet now announces its inability to adopt. The intimation has been conveyed to the liquidator, Mr. G. Grey Campbell, by the Hon. A. J. Stallworthy, who presented the petition, to Parliament. "From the above it would appear that there is no possibility of obtaining any compensation from the Government," Mr. Campbell says in a communication to the creditors. "It was hoped that from this source something would have been obtained to pay unsecured creditors either the whole or portion of their account. No effort was spared by the committee of creditors and myself in the endeavour to secure assistance from the Government, and the fact that we got a unanimous recommendation from the House indicated that our claim was considered a fair and just one. The financial position in which the Government finds itself, however, has evidently influenced Cabinet in its de-cision."

The City Council took over the company's vehicles i,n 1927 for the sum of fi.15,427, which the petitioners claim was insufficient. Had ample depreciation and the cost of overhauling and renovating the vehicles been allowed, the assessment would * have been £25,560. "When the activities, of the western suburbs section of the business ended the company owed creditors £12,850, but after realisation of t^ie assets there was nothing with which to pay them. .