Opinions from Others.
Page 35
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Should _Motor Manufacturers also Conduct a Business as Carrying or Hauling Contractors ?
The Editor, THE COMMERCIAL MOTOR.
[1,106] Sir,—This subject is certainly one which opens up a profitable field for discussion. 1 feel, too, that "the two .occupations are distinct." At the same time while I think this is correct in the abstract, I do not think it possible to make a hard-and-fast rule, as so much depends upon individual conditions. Looked at broadly, the practice seems opposed to commercial principles: hi the first place, two separate businesses are being carried on with the same capital; secondly, by competing with possible buyers, a certain saeritice of goodwill is hound to ensue. In the event of the carrying business being the principal asset, and its being simply a case of build, ing vehicles for this purpose, the practice has even less to commend it from a commercial point of view. The concern budding a few vehicles cannot, in practice, save the amount represented by the maker's profit, for they are not able to buy material so advantageously in the smaller quantities, and they are not so likely to posee.ss the necessary skill for satisfactory designing and constructing. While the maker may, in some cases, be justified in doing contracting work, the contractor is never justified in building his own vehicles, however extensive his business nay be, but, to return to the manufacturer, every day it is becoming more recognized that specialisation is necessary to ensure St1CCeSS. Thus, the maker is wisely advised who dicks to manufacturing only, and leaves selling to suitable agents throughout the country. As long as the demand exceeds the supply, most manufacturers are content; but, in these days, when everything is sacrificed to maintenance of maximum output. in order to reduce works costs, it is a great temptation—should stock commence to accumulateto seek some way in which dead capital can be put to earn some kind of dividend, in such a, case, the best plan is undoubtedly the formation of a subsidiary concern to conduct any hiring business. The accounts, etc., can then be kept separate, and the non-success of one concern need not materially affect the other. These conditions are far from uncommon in the pleasure-car trade. One of our largest concerns carries on an extensive hiring business, while many have interested themselves in companies formed to sell their particular car. In the taxicab trade, the formation of subsidiary concerns has in many cases been very good business, as it enabled output to be absorbed, and profits to be earned, where outsiders failed to come forward to develop the field. While the subject under discussion is somewhat different, these instances are quoted to indicate how impossible it is to answer the question either by a decided negative, or by a decided affirmative. As regards repairs. I think these are best left to depots, either independent or connected with the parent firm, which can make a speciality of the work. In the vase of centres around which large numbers of a particular vehicle are in use. the opening of a garage and repair shop is-advisable. Not only can all repairs he undertaken, but hiring can be done, and vehicles maintained by contract. To combine these things with manufacturing means that all will suffer to some extent, and, as the use of commercial motors increases, this decentralisation is bound to take place. Finally, as long as manufacturers do not go the way of car builders, and lock up capital in plant for outputs which cannot be absorbed, I do not think much thought will be given to contracting work. After all, a manufacturer's eeerk is to make cars—not to hire them, and, in any case, he cannot go on increasing his hiring fleet indefinitely. On the whole, the project is best left alone, or handed over to subsidiary depots which can combine contracting with repairing.—Yours faithfully, GEO. H. Ct7TBUSH. 49, Jamaica Street, Glasgow. Users' Experiences: Work for Carriers.
The Editor, Tin COMMERCIAL MOTOR.
L1,107 j Sir,—While THE COMMERCIAL MOTOR is the recognized authority on all matters pertaining to commercial vehicles, it also possesses without doubt a unique knowledge of the practical side of running these vehicles. Although, in the first place, it has one of the pioneers of motor-wagon carrying as Editor, it nevertheless deems it necessary to subject members of its staff to the martyrdom of personally visiting us and accompanying our wagons on their rounds, and I am afraid, in our eagerness to show our appreciation for these visits, and incidentally to impress your repre,sentative with our capabilities, he has met with some extraordinary samples of what we are pleased to call a day's work," and has doubtless thanked Providence that Tun Commencrat, MOTOR is run on more civilized lines than carrying companies. We carriers should enlarge the field of advantage to ourselves by utilizing your paper as a recognized medium in which to advertise for work. At present, we have no weekly paper which we can claim as our special representative for advertising our wants, and, as you can offer that accommodation, on most reasonable terms, I think we should do well to give the matter a fair trial. My belief is that, if we carriers concentrate our force on one journal, business men will not be long in taking the cue from us. If drivers and mechanics find it a good medium for obtaining work, as the weekly advertisements prove, I think employers should also be able to turn your paper to good account. There is another reason why Tun Commericree Movie is specially adaptable for the purpose, namely, that the past experience of yourself, Sir, must have brought you into touch with ninny who have the control of traffic in various points of the country, and who will no doubt in due course recognize the wisdom of the new departure I mention. We require a recognized channel, through which a carrier can approach his customers, and one which may also, in time, prove a means of drawing carriers closer together. At present, motor-wagon carriers are hampered i't this respect, by the forlorn notion that they are very big people and that the world is very small, whereas, the very reverse is the case, and it is our "very smallness" which hampers us in developing our businesses. A little co-operation would go a long way in raising us as a v-hole in the estimaticei of the public, and incidentally might improve the lot of the individual. Split up as ee are into small units, we provide a happy hunting ground for the business adventurer who is on the prowl for cheap transit. I was shown some rates, not long ago, which one of these gentlemen had obtained from some unfortunate individual, who must have quoted them in a state of abject mental depression. Rates like these only damage a causethey are no good to the public, for they do not represent conditions which can be maintained, and it would be to the interest of the whole carrying community that they should not be quoted. I fear, Mr. Editor. that in the question of reasonable co-operation we are like little children who require someone with experience to bring us together, and I commend this paternal act to one of the early fathers of the motor-wagon-carrying industry. Perhaps, I am mistaken, but I fancy I have seen on indication of your intention to do so. I say, " Good luck to
you in this matter." Our log sheet for the past week is as follows: earnings.
£66; tonnage, 159; mileage. 1,176; percentage of work done, 95; coke used, 12 tons 15 cwt.; oil used (geese, 20 gallons; oil used (cylinder), 10!, gallons.—Yours faith fully, MOTOR-WAGON CARRIER.
7,Th1s Journal will be happy to do anything to further the maintenance of proper rates, as undue "cutting" is bad for all. We insisted upon that point in our " Motor Hiring and Contracting" Special Number of 15th October, 908. At the same time, free competition is the natural law of 1business. especially in a comparatively-new line. The practices of the Pirnitnie Removal and Warehousing Association might serve as a model.
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