George Replies to His Critics
Page 22
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Statements Made by This Character in a Series of Articles Written by S.T.R. Have Aroused Much Interest and Some Criticism AMONGST letters which appeared in the issue of " The Commercial Motor" dated December 4, Mr. H. R. Caulfield Giles and Me. C. E. Jordan criticize sonic of the remarks which I made in a conversation with S.T.R., as reported by him in the series of articles " Solving the Problems of the Carrier,"
Both these gentlemen should note that in that discussion S.T.R. and I were dealing with long-distance traffic, and, so far as that is concerned, I am of opinion that C licensees should not be allowed needlessly to compete with professional road hauliers. I was not criticizing the use of C-licensed vehicles on local deliveries and specialized services, as, no doubt, work of that description can be carried out more economically and effectively by the ancillary user.
I have had 25 years' experience of road transport and in that time there was plenty of opportunity to study the methods of all kinds and types of operator. I have noticed that a very large percentage of C licensees treat their vehicles as part of their plant and their drivers as work's employees. Separate accounts are not kept and none of these concerns has any idea as to what are its transport costs. There are some large concerns operating vehicles under C licences which do appreciate' that the transport department should be self-contained with its,own personnel, provision for maintenance and costing, and so on; these, however, are in the minority.
Now the road-transport industry of professional hauliers is endeavouring to stabilize road rates, and this is a very difficult task, largely because of the diversity of opinions as to the basis for such stabilization. Large combines and the railways, acting through the Road and Rail Regional Corn-, mittees, are, as to the majority, of the opinion that railway rates and classifications should apply. In that event the result will be a considerable increase in most road rates, which would then be found to have increased considerably as compared with pre-war rates. Such increase would appear to justify C-licence holders applying to the authorities for more licences for vehicles, on the plea that in that way they can more effectively counter the attitude of what will then appear to them to be a combination of road'transport industry and railways. One inevitable result of such a procedure would be that the small haulier, who' is the backbone of the industry, would go to the wall. It is true that, in certain areas, influential operators are endeavouring to devise a goods classification and rateS schedule for road transport which is distinct from that of the railways and is logically founded on cost, plus profit. It may well be, however, that the vested interests, as represented by the abOve-mentioned combines, acting in concert with the railways, will try to obstruct such a schedule. It is significant, having in mind the conditions which prevailed in pre-war days, that the railway companies have never raised any olajection to the procedure by which C licences were freely issued.
, It must be remembered, considering the position of C licensees, that they are in many ways and for many reasons advantageously placed, as compared with A and B licensees.
(1) The amount paid for the licence is less.
(2) The premiums for comprehensive and third-party insurance are lower, and the terms of insurance, especially in regard to excess, are more favourable.
(3) Their overheads are lower.
(4) Wages of drivers and the amounts paid in overtime • arc lower than those which A and B licensees must pay.
(5)-There is no provision in respect of payment of drivers for a guaranteed week.
(6) C licensees are not compelled to pay the special overtime rates when their drivers are away for 36 hours.
(7) They. do not pay goods-in-transit insurance. (8) The maintenance costs are lower.
All these factors tend to the disadvantage of.professional small hauliers and it was these things which I had in mind when I stated that, in my view, the operations of C licencees on long-distance 'work should be restricted.
I do agree that if any concerted attempt be made to raise the level of road haulage rates to that of rail rates, ancillary users must, for their own sake, take some action to protect themselves against what would virtually be a monopoly. I also admit that the most natural procedure would be for them to apply for more licences for vehicles, so that they could be independent of the railways and the large combines of road operators.
There should, however, be some other way of achieving this, which, as I have stated, involves entering into keen competition with small operators, as well as increasing road congestion. It seems to me that the ancillary user would be better advised to join forces with the small hauliers in oppoSition to these vested interests; so that the one would utilize the services of the other tb break any attempt to
form a monopoly. GEOROE.