YELLOW CABS, LTD.

Evening Post, Volume CXIII, Issue 26, 1 February 1932, Page 10

YELLOW CABS, LTD.

TRADING TRIALS IN

SYDNEY

The interim report of the directors of Yellow Cabs of Australia, Ltd., states that the result to 20th January, 1932, shows no improvement on that for the financial year ended 30th' June last. This was .to-be expected, seeing that no improvement in conditions generally was experienced during the period reviewed.' It was, however, inevitable owing to the increased difficulties which. have operated against the company in Sydney.' ' "The position to-day as regards Sydney is such that impending State legislation, if,passed,:will have thecffect o£ terminating your company's activities in that centre. Your directors, while exercising every.legitimate endeavour to obtain legislative recognition of' the company's trading rights on something like a competitive basis .with the individual units engaged in the business, have been compelled to explore other avenues of activity for the employment of that part of shareholders' capital which is invested in fixed assets in.the State of New South Wales. The company's immediate future prospects can be said to be largely dependent on the result of these efforts, and to the course of legislation in New South Wales. "In other respects, the outlook for the industry is brighter, and much more hopeful than for some time past. Both in Victoria and New South Wales the authorities have recognised that operating licences should be limited and issued with careful discrimination, if the requisite standard necessary for a public utility service is. to be'attained and maintained.

"The company's financial position has been rendered easier by the realisation of Government securities to the extent of £21,970. Although a capital loss was sustained, your directors consider it wise to avail themselves of the improving market for these securities, and reduce the company's liability to its bankers. These funds were obtained in Mny, 1931, to provide finance for the return of capital to shareholders."