RAILWAY v. ROAD TRANSPORT.
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Results of Rate Increases—Growing Diversion of Traffic to the Roads—The Birmingham Small Parcels Traffic Scheme.
THE RECENT discussions before the Rates Advisory Committee of the Ministry of Transport, and the evidence adduced by responsible transport authorities, serve to set in relief, not only the rapid progress of the road facilities, but also their great potentialities in the immediate future.
The :rates increases, in January last, served to stimulate a wide diversion, to the road vehicles, and the area of competitive enterprise has been increased to an astonishing extent. As an illustration, ono might take the illuminating instances given by Mr. J. I, Clewes, the transport manager for . Messrs. Liptons, before the Committee on July 21st, showing that it was now possible to make regular .. weekly deliveries for distances in excess of 100 miles at lower rates than those offered by the railway authorities.
This evidence is strikingly confirmed 'by a memorandum submitted to the Committee by the Railway and Transport Committee of the Birmingham Chamber of Commerce, from which the following passages are extracted ;—
• " The total effect of the increase of January, 1920, is not yet clear. , During a period of unprecedented production-for a starved market, it has been difficult for many trades (especially thos-e dealing in articles or material of value) to ,pass on the' increased cost of their products. It Is felt, however, that this condition of things is transitory, and that the inevitable resumption of competitive conditions, not merely in the home markets, but throughout international commerce, will make it difficult to pass on the -increase with the same facility, and the existing heavy impost will act as a severe handicap in the conduct of business."
Rate Increases and Road ,Competition.
After pointing out that the increase on low value traffic has already led to a cessation of business in some directions, a curtailment of the distributing area in 'others, and a diminution, in the volume of export • traffic, the Committee express; the following interesting opinions regarding the possibilities of road competition :—
"Many firms report that in respect of highvalue traffic, the effect of the increase -upon the actual cost is negligible (in some instances not more than .1,per c*.nt.), but though, at first sight, it would appear that the higher categories could bear some additional burdens, it has to be remembered that the competition of other transport interests enters into•the problem, and renders the proposal one of doubtful . utility.'
" Under the existing rates there has been a growing diversion of traffic to the road services, and when the value of snoh services comes to be more. appreciated the diversion will be of a more rapid' character. ,, Not only do the road services give a more expeditious delivery, but they ensnre a considerable elimination of the expenses of packing, which the Policy of the railways has forced up to a high standard, and, additionally, over vast areas of the country, it is possible for firms to deliver—either by their own vehicles or hire—at cheaper rates than those charged by the railway companies. Nor does this apply only to traffic for short distances. Between Birmingham and London, Liverpool, Manchester, Bristol, etc., distances of 100 miles and upwards, it is now possible to deliver by road more cheaply than by rail in Classes 2, 3, 620
4 and 5, and, it is safe to predict, that, if any considerable advance is made in existing rates, the only limit to the diversion of class traffic from the rails, except for small parcels, will be the absence of an adequate supply of road vehicles to do the work. "
"This inverted state of affairs calls for senouS consideration, and the Chamber cannot.get away from the conviction that there is something radically wrong with the organization and management of the railways, when it is possible to carry 5 tons of hardware, by road, from Birmingham to London, cheaper than the _railways can convey it in 300 ton train loads, in quicker time, with an elimination of considerable expenses in packing, and with a marked reduction in breakage and loss."
--On the evidence, the Chamber arrives at the conclusion that the railway rates are already dangerously near the equilibrium, and that any marked increase, such as now under contemplation by the railway authorities, will not serve to increase revenue, inasmuch as the imposition of higher figures will only kill-the traffic altogether.
Quantitative Goods Distribution by Road Motor.
It would appearthat the railway managers are themselves not a little apprehensive. They are allowing wleomfortable margin in their calculations to over the prospective deflection of' traffic, or its total cessation, in respect of many low-priced commodities.
There is one feature in the Birmingham report which deserves attention, namely, the problem of the distribUtion of " smalls." At the present time this large and remunerative business is practically a perquisite of the railway companies. It bears very high rates per rail, but the companies largely control -it, because the motor interests have, speaking generally, 'very inadequate facilities for collecting and distributing small lots throughout the large area of population. The latter have proved• their ability to compete in bulk loads ; the larger field of small parcels awaits their attention. In some areas efforts are being made in this diree.tion, and especial attention is directed to the scheme which haS-been set up under the Birmingh,am Chamber of Commerce, whereby traffic in all quantities can be'sent.to a central depot and distributed therefrom throughout the whole of the Midland area. Some of the large distributing firms are, already sending several loads weekly under this arrangement in bulk lots, and it is found that after the additional costs of distribution, the gross charges are,much smaller, than those charged by the railway companies on similar consignments, and more expeditious deliverieSeare guaranteed.
We have, pleasure •in giving a map showing the area covered by this scheme, and the following roughly represent the delivery charges from Birmingham central depot :— Birmingham only (3 miles radius): 56 lb., 8d. ; 84 lb., 9d. ; 1124a., Is. ; and 6d. per cwt. for heavier lots up to 2 tons, but packages must not exceed 3 ewt.
Traffic for South Staffordshire: 13s. 4d. per ton, plus 3d. per package for delivery (up to 2. tons accepted). For the remainder of the area shown on the map the charges are (a) up to 30exiiles, £1 per ton, plus 3d. per package for delivery; (b) 30 to 50 miles, £1 5s. per ton, plus 3d. per package for delivery. These figures are extracted from a circular recently issued by the Chamber.
There appears ample scope for the extension of such arrangements to other localities, and a wide field of trade is offered to enterprising motor interests.