NO COMPENSATION

Sun (Auckland), Volume III, Issue 873, 17 January 1930, Page 10

NO COMPENSATION

BUS COMPANY CREDITORS DISAPPOINTED IMPECUNIOUS GOVERNMENT? Cabinet lias declined to compensate the creditors of the Mount Eden Bus Company, Limited (in liquidation) for the losses it suffered through the enactment of the Motor Omnibus Act in 1926. requiring the company to charge a penal fare, despite the fact that the Public Petitions Committee i of the House recommended favourable j consideration of the claim of £IO,OOO. In notifying creditors of Cabinet’s | decision, the liquidator. Air. G. Grey I Campbell, comments:—“The financial : position in which the Government ; finds itself has evidently influenced i Cabinet in its decision.” Intimation of the result of the | petition was received from the Minis- ( ter of Health, the Hon. A. J. StallI worthy, who presented it to Parliament, who expressed regret that Cabinet could take no further action. “I am keenly disappointed that the Government has found itself unable to give you more satisfaction in the matter, notwithstanding all the representations made on your behalf,” the Minister states. “It would have given me great pleasure to have advised you otherwise.” The liquidator has written to the creditors in these terms: —“It would appear that there is no possibility of obtaining any compensation from the Government. It was hoped that from this source something would have been obtained in order to pay unsecured

’ creditor® either the whole or portion of their account. I regret, therefore, having now to advise creditors that j they can expect nothing in settle- | ment of their claim. Xo effort was j spared by the committee of creditors and myself in the endeavour to secure assistance from the Government, and the fact that we got unanimous recommendation from the House indicated that our claim was considered a fair and just one.” The claim for compensation was based on the ground that, by having to charge the penal fare under the Omnibus Traffic Act, its business which commenced in October, 1925, was interfered with. The City Council acquired the company’s vehicles in 1927 for £15,427. which the company considered was below valuation. The company owed £12,550 to creditors when the business in the western suburbs section ceased, but when assets were realised there was nothing left to pay them.