S.T.R. on the Evil of Rate-cutting
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FROST and snow played havoc with hauliers, and roads were at their slipperiest last Friday night, when S.T.R., The Commercial Motor costs expert, paid his second visit to Wellingborough —a very enthusiastic centre of A.R.O., thanks, in part, to the chairman, Mr. H. Bagsliaw, and the energetic secretary, Mr. W. Eales.
Every one of those present was keenly interested in S.T.R.'s address, in which he warned them of the consequences of persistence in rate-cutting. This practice, S.T.R. pointed out, was bound to result in the gradual elimination of the small haulier—the hope of the railway companies.
He then outlined a simple scheme whereby each operator could arrive approximately at a minimum standard rate, which he should keep in mind when quoting for work. S.T.R. stated that, in his opinion, and in that of the leaders of the industry, rate-cutting was• largely the outcome of ignorance, not only of vehicle operating costs, but of the supplementary expenses, which, in the present state of the industry, were steadily increasing. He pointed out, further, that, with some such standard: as this available, the task of those who were endeavouring to stabilize haulage
rates would be considerably facilitated.... A keen discussion followed, much 574, it turning upon the effect which idle,
time would have on profitable rates.. S.T.R. explained that the attitude towards this problem must depend, to. some extent, upon the cause of.the idje. time. If, by poor service or for other reasons, a haulier were unable to -keep his vehicles fully occupied, such idle time could not reasonably be expected to be taken into consideration in fiing rates.
On the other hand, if the idle time were due to the nature of the work itself. —and an outstanding example quoted was that of furniture removal—suitable modification of the standard basis should be effected on lines which S.T.R. indicated.
Wellingborough was the venue • 'of S.T.R.'s first lecture in July, 1934.