TAXI SERVICES

Otago Daily Times, Issue 23006, 8 October 1936, Page 2

TAXI SERVICES

COMMITTEE'S INQUIRIES VIEWS OF OPERATORS INCREASED FARES OPPOSED The view that an increase in taxi fares would be detrimental to the interests of the industry was expressed in the evidence which was given yesterday before the committee of inquiry set up by the Government to investigate the conduct of taxi and town carrying services. The committee, which consists of Messrs PM. Butler (Wellington, chairman), James Walker (Masterton), and H. B. Smith (Transport Department, Wellington), is holding its sittings in the Council Chambers. CHARGE FOR LUGGAGE Continuing his evidence, Mr A. G. Hunt, a partner in Roslyn Taxis, suggested that there should be a charge for the carriage of luggage. As a means of putting into effect a scheme for limiting the number of taxis, the witness suggested that depots might be established in certain districts. If it were found that business warranted it in any one district, the fleet of that depot could be increased. In reply to the chairman, Mr Hunt said that when his firm changed one of its cars for a new model there was an immediate increase in busi"Tsked whether he was in favour of the standardisation of cabs, he stated that such a scheme would reduce expenses, but the car must be made attractive. , Mr Hunt told the chairman that his cars had never been inspected by the City Council. One taxi driver had asked him to state that in 17 years his car had never been mSDGCtcd Mr Smith: Would you say there are too many taxis in Dunedm? Witness: Not in rush periods.

PRESENT FARES SUFFICIENT, Mr O G. Stevens made a statement on behalf of five taxi firms—Are, Silver Band, Kia Ora, Kiwi and Blue Star. These companies, he said, operated 21 cars, and there were 25 drivers working either as ownerdrivers or on a commission of onethird of the takings. He claimed that the views of these firms were substantially endorsed by the Silver Fern Company, which had u drivers and 10 cars. They were agreeable to the payment of wages, but both employers and drivers suggested that there should be no alteration in fares. ...It would be shown that an increase in fares would so deduce the public use of taxis that employment would also be reduced. ~,.,, Mr R. P. Steel said that he came to Dunedin from Invercargill in 1931 and established, with others, Gold Star Taxis, reducing fares and starting the system of payment, on commission. In 1932 he, with other drivers, established Silver Fern Taxis. The capital was £360. sux persons contributing £6O each. The firm started with three cars, and this number was immediately increased to six. When he left the Silver Fern Company, of which he was manager, a few months ago it had 13 cars. The company, commenced business in the midst of the depression, drivers being employed on one-third commission. He stated that the company was mainly supported by the working man. •The chairman remarked that from what he knew of the working man in recent years he had not had much to spend on taxis. He asked what Mr Steel meant by the working man. , . Mr Steel replied that he meant wage-earners.

FINANCIAL RETURNS SUBMITTED

Mr Steel submitted confidentially to the committee information with respect to the amounts paid to Silver Fern shareholders who had been bought out of the business, the amount which he received, and the profits paid by the company. The wages of the drivers would be between £5 and £5 10s. He knew that at one time seven of them were paying income tax. The average hours would be from 140 to 160 a fortnight, and the men worked only on alternate Sundays. As manager of the Silver Fern Company he dismissed only one man in four years. Mr Steel, who stated that he now had no connection with the taxi business, expressed the opinion that the present fares should show a good return. If fares were increased the effect would be disastrous, and the taxi business would go back to the position existing in 1931, when one firm catered for the needs of practically the whole of Dunedin. When fares were reduced in 1931 more people were brought into the industry, and the wheels were kept running. LIMITATION OPPOSED Mr Steel expressed himself as being opposed to the limitation of the number of taxis, the danger of which was that it might lead to a monopoly. He believed that, on the present fares and with the zone system of fixing charges, regular hours of work and compulsory wages could be introduced. He was strongly opposed to any suggestion that there should be one big company operating in Dunedin. In reply to a question, he said that there was something wrong with the management of a company that could not make its business pay on the existing fares. Mr H. J. Hastie, manager of Gold Band Taxis, asked Mr Steel whether some increase in fares would not be necessary if drivers' hours were limited to nine per day Mr Steel replied that in the Silver Fern Company this would involve reorganisation, but not -n increase in costs. THE COMMISSION SYSTEM The chairman: Why did you bring in the commission system? Mr Steel: Because it made the drivers keener. The chairman expressed the opinion that, from the evidence, the original Gold Star Company could not have carried on if it had had to pay award wages, but Mr Steel disagreed with this statement. Asked how the Silver Fern Company managed to obtain six cars, Mr Steel said that the company put down £6O on each and bought them. No financial statement was given to the vendor company. The chairman (expressing surprise): Do you mean that you could go to the company and get six cars by putting £6O down on each? Mr Steel: I do. The chairman pointed out that when Mr Steel and others came to Dunedin from Invercargill award wages were being paid to drivers. He asked Mr Steel whether he thought he had conferred a benefit on the city by introducing the commission system.

Mr Steel replied that the drivers were willing to accept the conditions and were satisfied with their earnings.

In reply to a further question, he admitted that one of the dangers of the commission system was that it was inclined to make drivers speed. • Mr Steel submitted a letter from the head officer of the Labour Department stating that in the Silver Fern Company all drivers received wages as high as the award rates, and in some cases higher. When the hours exceeded those specified in the award, overtime was invariably paid. COMPANY'S' POLICY Mr E. R. Grace, an accountant, said that until recently he was auditor of the Silver Fern Company. Mr Steel was, in his line of work, one of the best business men witness had ever met. Mr Grace submitted figures with respect to the operations of the Silver Fern Company. The policy of the company had been to keep fares down in order to maintain or increase turnover. The company met the purposes of those likely to use the cars with the object of getting the best out of its business. Any increase in the existing fares would reduce the number of users. If users were reduced the number of cars would be reduced, and consequently if the number of cars was reduced the number of drivers must be reduced. In his opinion increased fares would eventually put a number of companies out of operation. He estimated that Silver Fern drivers drove 95 miles daily, and were actually driving five hours a day. The average earnings were about £5. The important thing in a taxi business was to keep thfe wheels moving, if possible, 24 hours of the day Eight or 10 years ago taxis were a luxury, and since then companies had succeeded, the drivers had had a fair living, and the public had had good facilities. In addition, the owner of the capital had had a good return for his risk. He held the opinion that if it had not been for cheap fares the Silver Fern Company would not be in business today. In answer to the chairman, Mr Grace said that he agreed with the policy of paying by commission, not for the purpose of driving men but because it seemed fair to him. The owner risked his cars and capital, and if there was no business he suffered. Similarly the driver risked his time, and if there was no business he also suffered. He would not favour wages, but if wages were made compulsory he did not see why drivers should not be paid at least £4 12s 6d a week. The wheels could be kepj; moving on wages as well as on commission provided that the fares were sufficiently attractive. PUBLIC CONTROL FAVOURED Mr W. O. Kempthorne, now of Omakau, but until a week ago a taxi proprietor in Dunedin, submiitted two lengthy written statements in which he outlined with considerable detail his views on the industry. He favoured an amalgamation of taxi i-rvices and town deliveries under one form of unified control. He advocated someiform of public control, preferably by the Railways Department, which, he stated, had the necessary organisation both in the cities and country towns. To place taxis and deliveries under its control would merely be to extend its present operations. He pointed out the heavy overhead costs and unnecessary running involved in the industry as it was at present constituted. He expressed the opinion that taxi services could be made to pay at a charge of sixpence per mile under unified control.

As Mr Kempthorne had had 17 years' experience as a taxi proprietor, he was questioned at length with respect to the history of the industry in Dunedin. He said that the only companies which went out of existence were the original Red Band, the original Gold Band, and the original Gold Star. He knew of from 12 to 20 owner-drivers who had ceased to operate. He expressed the opinion that there were twice as many accidents as there should be, the chief reason being the speed of the modern car.

The hearing was adjourned until this morning.