EIGHTH SCHEDULEProvisions relating to Purchase of Property of Provincial Operating Companies, &c.
PART IIIRules for Determining Compensation for Severance.
1
An estimate shall be made of the additional cost per car mile which would have been incurred by the company during the last completed financial year preceding the date of the passing of this Act in operating public service vehicles on the following assumptions :—
(a)
that the transfer to the Board had taken place immediately before the beginning of that financial year; and
(b)
that such reduction of overhead or other expenses had been effected during that year as might reasonably have been effected in view of that transfer.
2
The compensation for severance shall be calculated by multiplying the additional cost per car mile so estimated by five times the number of car miles run during that year in the provision of services of public service vehicles to which the restrictions imposed by section seventeen of this Act do not apply.