London Passenger Transport Act 1933

PART II Rules for Determining the Price to be Paid.

1 The price shall be determined upon a valuation of the buildings, premises, vehicles, plant, stores and equipment with an allowance for goodwill.

2 The valuation in the case of vehicles shall proceed upon the basis of first cost with a deduction in respect of depreciation calculated at the rate of twelve and one half per cent. per annum on the first cost in respect of the period between the date upon which the vehicle was first brought into use and the date of the transfer to the Board.

3 Except in the case of the Eastern National Omnibus Company Limited, the allowance to be made in respect of goodwill shall be ascertained by multiplying by five the average net profits of the part of the undertaking taken over ascertained in the following manner :—

(a) there shall be ascertained in the case of each company the average net profits per car mile from the operation of stage and express carriages, or in the case of the Maidstone and District Motor Services Limited, of public service vehicles for the three financial years last preceding the date of the passing of this Act, (after meeting all proper charges including adequate provision for the replacement or renewal of all assets subject to depreciation or obsolescence, which provision shall in the case of vehicles be calculated at the rate of twelve and one half per cent. per annum on the first cost);

(b) there shall be ascertained the total car mileage run by the stage carriages, or in the case of the Maidstone and District Motor Services Limited, by the public service vehicles operated by that company during the last completed financial year preceding the date of the passing of this Act in the provision of services within the London Passenger Transport Area which the company will require to discontinue by reason of the restrictions imposed by section seventeen of this Act;

(c) the average net profit per car mile ascertained under (a) multiplied by the total car mileage ascertained under (b) shall be deemed to be the average net profits of the part of the undertaking taken over.

4 In the case of the Eastern National Omnibus Company Limited the allowance for goodwill shall be ascertained by allowing two pence and one half penny per car mile for each car mile run by stage carriages owned by that company during the last completed financial year preceding the date of the passing of this Act in the provision of services within the London Passenger Transport Area which the company will require to discontinue by reason of the restrictions imposed by section seventeen of this Act.