PURCHASE OF BUSES

Hawke's Bay Tribune, Volume XVII, Issue 213, 23 August 1927, Page 3

PURCHASE OF BUSES

RAILWAY DEPARTMENT’S AIM? TO ELIMINATE COMPETITION. VERBAL PROPOSAL REPORTED. A representative of the Railway Department recently called on several proprietors of buses running ™ the Hutt road in competition with the railways and suggested, verbally only, that the proprietors agree to sell out to the Department on valuation and without compensation, which would be paid if a local body took over privately-owned 'bus services (states an exchange). “It was plain,” stated uno ’bus proprietor, “that unless this course is agreed to the Department' will either put on buses of its own and operate ‘cut-throat,’ or seek legislation to achieve its object of running the private buses off the road.

NAPIER-HASTINGS BUSES. “The Railway Department’s representative.’’ added the busman, “had stated that the same procedure as was adopted in the purchase of buses running between Napier and Hastings would be followed, that com pensation would not be paid, but that the machines would be purchased on valuation. “Such a purchase was possibly well enough in the case of the Hastings buses.’’ said the busman, “but. it would be a very different matter from our point of view. The Hastings buses were not a paying proposition, ours are. From further statements made during the interview. I gathered that eventually the Department hoped to purchase all competing bus services in the Dominion.” STOLE THE CREAM. “I asked then whether it would not lie preferred from the Department’s point of view, as well as from our own. to pay us a decent price rather than adopt a policy or cutthroat competition, which 'must involve a heavy loss to the Department. The answer was given that the Department had looked into the figures and was prepared to stand the loss. It would not pay goodwill. The Department’s refusal to consider anything for goodwill is based on the argument that the buses have come in and stolen the cream of the traffic.” The secretary of the Railway Board was asked for a Departmental statement of the position, but after the matter had been referred to the board, which was in session at the time, it was stared that the Depart ment wished to make no statement at all.