City Council Faces Claim for £40,000

Sun (Auckland), Volume I, Issue 201, 14 November 1927, Page 13

City Council Faces Claim for £40,000

G.O.C. BUS COMPENSATION SERVICE TAKEN OVER The hearing of claims against the Auckland City Council for a total of £42,904 in respect of buses taken over from the General Omnibus Company and Hiaett, was commenced before the Assessment Court this morning. Mr. Justice Herdman is presiding and has with him Mr. G. R. Hutchinson. for the City Council, and the Hon. E .W. Alison, for the bus companies. Mr. V. R. Meredith and Mr. Armstead appear for the plaintiffs and Mr. A. U. Johnstone and Mr. J. Stanton for the City Council. It was stated by Mr. Meredith that originally there were three claims, the .third being that of the Mount Eden Passenger Transport Company, but that had been settled. The G.O.C. company claimed in respect of 35 buses. The total claim had been for £35,485, but one bus, valued at £990, had not been handed over, so the diaim now stood at £34.495. In respect of the claim by Hieatt, the original was for £9,559, but one vehicle had not been handed over and it was now £8,409. • VALUE AS GOING CONCERN’' it. was suggested by Air. Meredith that the G.O.C. fleet should be valued on the basis of a going concern, and not by the method of valuing each vehicle separately. A properly organised service had an entirely different value from a heterageneous collection of buses. It was also contended that, when legislation was confiscatory and against private rights, it should be interpreted generously and against the persons whom the conditions favoured. The claim of £1,150 for the garage equipment and plant, which was included in the amount claimed, would probably be settled between the parties. His Honour: But is .the City Council taking over the garage? You must be careful not to entrench on goodwill. Mr. Meredith said he was aware of that. In evidence, R. J. David, adjuster, said the G.O.C. buses varied in condition, but were in fairly good order. He detailed his method of valuing and said buses were not worth more today than when new if valued individually. The price asked was a fair one. (Proceeding.)