BUS COMPENSATION.

New Zealand Herald, Volume LXVII, Issue 20465, 17 January 1930, Page 12

BUS COMPENSATION.

MOUNT EDEN COMPANY.

CABINET REJECTS PETITION.

CREDITORS DISAPPOINTED. The hopes entertained by creditors of the Mount Eden Motor-bus Company, Ltd., of obtaining compensation from the Government for losses suffered following the passing of the Motor Omnibus Traffic Act have been dashed to the ground L\v the announcement that tho Cabinet had declinod to accede to the petition, which was presented to Parliament last July. The petitioners, who asked for £IO,OOO, received a favourable reception from the Public Petitions Committee of the House, which recommended favourable consideration being given to tho request—a recommendation which the Cabinet now announces its inability, to adopt. The intimation has been conveyed to the liquidator, Mr. G. Grey Campbell, by the Hon. A. J. Stalhvorthy, who presented the petition to Parliament, in the following letter: "With reference to tho petition of the creditors of the Mount Eden Motor-bus Company, presented to Parliament, during the recent session, I now have to advise you that the terms of the petition and the recommendation of the Select- Committee have been considered by the Government, but I regret to say it was decided that no further action could be taken. 1 am keenly disappointed that the. Government has lourui itself unable to give you more satistaction in the matter, notwithstanding all the representations made on your behall. It would have given me much pleasure to have advised you otherwise."

Nothing for the Creditors. "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. I regret, therefore, having now to advise creditors they can expect nothing in settlement of their claim.

"No effort was spared by the committee of creditors and myself in the endeavour to securo 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 the Cabinet in its decision."

The Company's History. The company commenced operations in October, 1925." serving more particularly the Mount Eden district, but in the following January services to the western suburbs were also taken over. r lhe motor Omnibus Traffic Act came into operation from November 1, 1926, requiring the company to charge a penal fare. The petitioners claimed that thereby the. company's business was seriously interfered with, and the development of the western services was prevented. The City Council took over the company's vehicles in 1927 for the sum of £15,427, which,.the petitioners claim, was insufficient. Had ample depreciation and cost of overhauling and renovating the velficles been allowed, the assessment would have been £25,560. When the activities of the western suburbs section of the business ended the company owed the creditors £12,850, but after the realisation of the assets there was nothing with which to pay them.