TAXI SERVICES

Otago Daily Times, Issue 23005, 7 October 1936, Page 3

TAXI SERVICES

INQUIRY INTO OPERATIONS COMMITTEE'S SITTINGS OPENED EXISTING CONDITIONS DISCUSSED An indication that a great volume of evidence is likely to be presented was given when the Committee of Inquiry set up by the Government to inquire into the conduct of taxi and town carrying services began its Dunedin sittings in the Council Chambers yesterday The committee, which consists of Messrs P. M. Butler (Wellington), James Walker (Masterton) and H. B. Smith (Transport Department, Wellington), made fixtures which will occupv its time at least until Friday.. The evidence Which was presented yesterday related solely to taxi services, and the witnesses favoured a form of control that would eliminate price cutting and would enable drivers to earn better wages and obtain more favourable conditions. At the opening of the hearing the chairman (Mr Butler) stated that the committee desired to prepare its report as soon as possible in order that the chaotic conditions which existed elsewhere could be eliminated. ' The committee felt that taxi services had almost monopolised the inquiry up to the present, and they desired to pay attention to town carriers. DRIVERS ON COMMISSION The first witness was Mr H. J. Hastie, manager of Gold Band Taxis, who opened his evidence by denying a published report that no taxi company had ever closed its doors in Dunedin owing to financial difficulties. He gave the names of three companies, which, he said, had gone bankrupt. and had been absorbed by his company. In - reply to the chairman, Mr Hastie said that his drivers were employed on commission under a purely verbal agreement. Going on to deal with the question of taxi services in general, he said that in June last there were 120 taxis in Dunedin. In 1926 there were only three companies in the city, and they were paying their* drivers £4 12s 6d a week for 60 and 70 hours work in alternate weeks. Fares then were 33 1-3 per cent, higher than they were to-day. The year 1931 was a critical time in the taxi business in Dunedin. At this stage four drivers started to operate on fares that were cut up to 40 per cent., and for the first time the paying of drivers on commission was introduced. The effect was that all other drivers :.ad to follow suit. For a considerable period following this the average wages of his company s drivers were £4 6s lOd a week, and, except at Christmas and Easter, the hours wer? not excessive. If specified wages and limited hours were introduced it would be necessary to employ twice the present number of drivers, and the companies could not exist under the existing charges. The present position, Mr Hastie added, was that there were 14 companies in Dunedin, and his company, which was the pioneer, was stifled in all directions. He found that country trips were being quoted at 4d a mile or less An endeavour was made to induce the City Council to fix the fares, but the operators were told that they must reach a unanimous decision. Mr Lewin: No. . The chairman: That would be impossible. COUNCIL AS COMPETITOR Mr Hastie said that the present position was that the City Council was a competitor with the taxis and was running buses from dances and to various points in the city late on Saturday night. The council was a competitor and yet it was the body which made the rules of the game. He estimated that there would be 140 taxi drivers in Dunedin, and the earnings of his company's employees were 25 per cent, of their total takings. If the present drivers in Dunedin were each to earn £5 a week it would be necessary for the people of the city to spend £ 145,600 a year on taxis. He could not imagine such a sum being expended. At the present time many drivers must be existing on revenue which should be set aside for renewals. Mr Hastie expressed himself as being strongly in favour of a limitation of the number of taxL on a population basis. Hie company favoured the regulation of drivers' hours of work (including ownerdrivers), a compulsory standard of wages, the regulation or standardisation of fares, and standard requirements as to the fitness of drivers and vehicles. He considered that in Dunedin 70 taxis could cope with all the work. Twelve cars could carry 300 gassengers from the suburbs to the ailway Station in an hour. In reply to the chairman, he said that there was at present no alternative to payment on commission. All companies must pay on the same basis, and if one company cut fares the others must follow suit. The cut'of 33 1-3 per cent, in fares was the biggest catastrophe that had ever happened in the taxi business, though he admitted that increased business had compensated to some extent for losses in other directions. He admitted that the conditions in Dunedin were not as bad as those disclosed in reports from the north. DRIVERS' HOURS OF WORK Asked by Mr W. Herbert, who appeared for the drivers, how many hours drivers worked at present Mr Hastie replied: "I could not say? Mr Herbert: Would it be 90 hours? Mr Hastie: It is quite possible. Mr Herbert said that drivers told him that u they did not earn £3 10s in any one week Mr Hastie made their wages up to that amount. Mr Hastie: That is so, if it is a slow week. Asked why men were on duty from 7.30 on Saturday morning until 3 or 4 o'clock on Sunday morning, Mr Hastie said that his company must do the same as others. Mr James Phillips (a director of Silver Band Taxis) asked Mr Hastie whether, if fixed wages and hours came into effect, his company could carry on with the existing fares. Mr Hastie: No. Mr Phillips: That meanc that you are in favour of higher fares? Mr Hastie: When* award wages and conditions are in operation. Asked if he considered that the installation of meters would stop price-cutting, Mr Hastie agreed that they would be an advantage. OUTLINE OF COSTS Explaining how his company fixed 25 per cent, as fair commission, Mr Hastie said that operating costs per mile were 4.43 d without commission and 6.23 d with commission added. The average takings were 7.23 d per mile, showing a profit of Id per mile, out of which the fleet must be maintained. His com-

pany had paid no dividends since payment on commission came into operation. He suggested that payment on a basis of the number of passengers might be introduced. At present his company would take five passengers to St. Clair and back for 3s, and the same fare would be charged for one person. The chairman: If we reduced the number of taxis, what should be done' Mr Hastie: I suppose those who were eliminated would have to be compensated. Mr Smith: Would you say that the public would be rendered more efficient service if the whole industry were organised? Mr Hastie: If it were co-ordinated —undoubtedly. He added that at present the companies would be paving about £SOO a year for rents and £3OO or £4OO a year for telephones. A co-ordinated industry could operate from one depot. LACK OF INSPECTION In reply to the chairman Mr Hastie said that his cars had never been inspected by the licensing authority, the City Council. The chairman drew his attention to the council's bv-laws providing for inspections of taxis. "Do you mean to tell me," Mr Butler asked, "that these inspections have never been attended to? " Mr Hastie: I am quite positive. In reply to further questions Mr Hastie said that taxi drivers were allowed by traders tc purchase cars on very simple terms. The chairman: Have you heard evidence that cars can be obtained without deposit? Mr Hastie: Very near it. A DRIVER'S STATEMENT Mr John Weitzel, a Blue Star driver, who formerly drove for the Gold Band Company, and who had previously answered a question, said that he had nothing further to add but was prevailed upon by the chairman to give evidence. His statement was mainly concerned with the hours worked by drivers. He said he had worked on occasions right through a week-end, with time off only for meals. His average weekly hours with the Gold Band Company would be about 100. The highest wages he h.ad ever made in one week was £ 13. The chairman: You would be feeling pretty tired by the time you finished. . The witness was unable to say how many hours a driver could work before a point of fatigue was Mr Hastie: Was it our policy to compel you to work long hours? Mr Weitzel: We were not compelled, but we were expected to. In reply to a further question, he recalled an occasion when Mr Hastie refused a hire because witness was " dead beat." He was in worse physical condition than before he started driving. His wages would very rarely be below £3. ANXIOUS FOR IMPROVEMENT Evidence on behalf of White Star Taxis, Gold Star Taxis, Ltd., and City Taxis, Ltd., was given by Mr J. Moffitt, who said that the three companies were more or less under one control. It was recognised, he said, that the present methods of operating taxis were responsible for shocking working conditions in many quarters, and the companies which he represented were anxious to help to have the conditions improved. Thi, could only be brought about by regulation and control by a public authority. Mr Moffitt quoted figures on which he estimated operating costs at 7Jd per mile, and went on to express the opinion that the following factors were essential for the stabilisation of the business:— Compulsory and universal use of taxi meters. Standardisation and fixation of fares, with an increase on existing rates. Limitation of cabs within the city to one for each 1000 of population. Regulation of working hours to 55 per week. Fixation* of wages at £4 5s per week. Provision for proper and adequate inspection of operators as regards adhering to regulations. Amplifying these points Mr Moffitt expressed the opinion that there should be an amalgamation of some of the smaller companies, thereby reducing overhead costs. It was suggested that the proposed hours and wages could be tried for a period of 12 months. He outlined a system under which waste mileage would be eliminated by the establishment of suburban depots and community depots. Mr Moffitt objected to the action of the City Council in running late buses on Saturday nights at a time which previously was a period of peak loading for taxis. He comolained that there was serious overloading of the buses, which would not be permitted among taxi drivers. He quoted figures showing that the earnings of 18 drivers over a period of three months ranged from £3 7s 8d to £5 0s 2d. The men worked shifts of nine hours, but, if they thought there was work offering after that, they could go into the depot. The average working time was about 70 hours a week, and only 30 or 40 per cent, of this was actual driving time. A CHANGE IN OPINION Mr Lewin asked the witness if his advocacy of increased fares and the use of taxi meters represented a change of opinion. Mr Moffitt said that the object of the present proposals was to eliminate price cutting Mr Lewin referred the witness to a letter written on September 10, 1935, and signed by him and other operators ft stated: "Any increase in fares would immediately involve a loss of prestige with our clients." The letter added thai the adoption of a meter system would not overcome the operators' difficulties, and a request was made that they should be heard by the council before they were compelled to install meters. Mr Lewin added that he did not criticise the change of view, but wished to point out that the opinions expressed at the time at which the letter was written did not assist the council in its efforts to bring the operators together. In reply to Mr T .ewin, Mr Moffitt said he would be'prepared to place before the council a scheme for financing the installation of meters. In answer to Mr Herbert, Mr Moffitt said he did not intend to influence the committee in proposing the wages and hours which he mentioned, but he was definitely of opinion that they represented an improvement on existing conditions. Mr W. J. Hodge, of Kiwi Taxis, asked Mr Moffitt if he thought the present fares showed a reasonable margin of profit. Mr Moffit: Under present conditions, yes. KEEPING UP TO DATE In reply to the chairman, Mr Moffitt said it was necessary to keep up to date in respect of cars. The latest cars attracted business, and the practice of his company was to change a car every two years. He did not favour a standardisation of the bodies of cabs. Mr A. G. Hunt, a partner in Roslyn Taxis, said his company worked on a wage basis. He submitted a copy of a letter which he had sent to the Minister of Trans-

port alleging that drivers were working over 100 hours a week and that they were luckv if they earned £5 a week. He suggested the use of meters to avoid the cutting of fares, proposing that the Government might assist the companies in meeting the cost. He submitted proposals in respect of wages and conditions, and went on to say that his company worked out all costs at 7Jd per mile and earnings at 83d. He suggested hat there should be some form of national control over taxi services, either governmental or by a board. The hearing was adjourned until this morning.