Subsequent to this meeting legal opinion was obtained to the effect that the Company has the right under its franchise to increase fares up to. the maximum mitted and this opinion was cisculated to members of the Public Utilities Committee. The Treasurer and Controller submitted the Company's profit and loss and appropria-ion accounts for the year ended December 31, 1938, and details of the Imerease in "the monthly operating expenditure of the Company due to the fall in exchange, and pointed out that he was informed that the increase in receipts anticipated from the pro-Posed increased fares would amount only. to approximately 80 per cent. of the additional operating costs.
The Committee's recommendation together with the legal opinion and details submitted by the Treasurer and Controller were considered by the Council on May 31, when it was decided to request the Treasurer and Controller to communicate with the Company in order to secure further facts and figures in justification of the proposed increase in fares. In submitting the information required the Company stated that the inherent principle of its fares policy has been And still is to maintain a low economic level well within the scope of the low wage-earning industrial population for which the Company caters, and that the popularity of the service offered by the Company is evidence of public approval of the fares charged.
The Company further stated that fares were last increased in June 1993, since when there has been a considerable increase in operating costs which has been rendered still more serious within the last few days by the further drop in the sterling value of the local dollar to 6M pence '8s compared with 8%, pence when the Company's application was made to the Council on April 26, 1939.
Comparisions Quoted The Company asserted that the foregoing indicates that there is no disposition on its part to exploit the matter of fares to the detriment of ils passengers, and added that if any drastic increase in fares was made by the Company, the probable effect would be to restrict passenger movement and in addition to induce passengers to seek some alternative form of transportation, and so far as the profits of the Company are concern fed the tendency would be for them to diminish rather than ineccase.
The Company pointed out that the ]seale of fares now proposed, convert ed to sterling at 6% pence per dollar, equivalent to—20° of a penny per mile—ist Class of a penny per mile—3rd Class Tuese figures compare with 465 of a penny per mile in Birmingham, 50 of a penny per mile in Liver-
"72 of a penny per mile in Manchester.
conclusion, the Company asserted that it has been due to the Prudent if not conservative financial policy hitherto pursued that it has been' possible to defer the present increase for so long.
Further in support of the proposed increases, a statement was submitted giving particulars with regard to the company's share capital, net profits after providing for renewals,. dividend distributions and allocations to Feserve, for the years 1953 to 1938
The matter was again considered by the Council on June 14, when, in the light of the further information submitted, the conclusion was arrived at by members that the proposed creases in fares were moderate and Justified, and the Council unanimously approved the application of the
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