HINTS FOR HAULIERS.
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' The National Road Transport Clearing House, Ltd., and its Scheme of Operations.
IOPENED the series of articles of which this is the fourth, by a somewhat cryptic reference to mass: production. in connection with road transport: That reference was not, at the time, pursued to its conclusion, but just left as such. The omission was only seeming : I made it with deliberate intent, so that I might return to the subject later. The time for that return is now. ,
I pointed out that the' haulier's case differed from. that of the manufacturer in that the former has machinery available—his vehicles—for mass production to the limit of his capacity. His difficulty was in getting raw materials—loads—and that, having got his raw materials, he simultaneously acquired a market for. his finished product, the delivered load, so that his troubles are more or less at an end when the raw materials are made available to him in sufficient quantities. The pressing need of the haulage contractor to-day is some means whereby his raw material can be collected together, so that he can draw upon it as he could upon stock stored in a warehouse. .
Individual enterprise to that end on the part of the haulier himself is good, and, in reasonably favourable circumstances (for example, while trade is good), may prove to be sufficient. In the absence of such auspicious conditions, however, it falls short of being a complete success. It results, only too frequently, in a temporary glut, followed by a slump, the latter being brought about, in the main, by the circumstance that (and this applies particularly in connection with a " one-man" concern) the carrying of loads suspends, for the time being, any active search for more business.
The Problem of Ensuring Constant Operation.
To have too much to carry for a few weeks, and then, for another few Weeks, to have nothing profitable to do, or, maybe, even nothing at all, is worse than useless, for maximum output for half-a-dozen weeks, at the low rates now prevailing, will not suffice to carry one over a single whole week of idlenese. Indeed, this lamentable circumstance is one of several reasons, for the frequency with which failure has dogged the steps of the small haulier, and there is no trade or industry in the country Which can tell so many tales of rapid and complete loss as can the haulage industry.
How, then, are we to mend matters? How are we to arrange for a steady run of loads, week after week, so that the haulier can keep his output, the product of his massed production, his weekly mileage —and paying mileage at that—at a maximum I The ideal means is a clearing-house, or chain of clearinghouses, clearing-houses as they are pictured in theory; depots to which all merchants, or at least the majority of them, will bring their loads or instructions about their loads ; places to which the majority of hauliers will go for loads, or for corresponding instructions. At such depots, or by the operations of those in control of the depots, the merchant will obtain means for prompt and reliable collection and delivery of the loads at reasonable charges. The haulier, for his part, will obtain regular work, at reasonable and fairly paying rates. The merchant gets all the advantages of road transport over rail. He obtains them at a cost which, if it is not less than that of rail carriage—and frequently it is even less—is seldom dearer than rail rates. He eliminates, at least Ewe handlings, with the concomitant risk of damage and need for extra packing. .There is no delay, no report that the wagon containing his consignment has been left in a siding,
and the danger of lost and broken packages is practically eliminated. Withal, he need not maintain his own fleet, which might have to be twice the size necessary for his average needs, in order that it may be big enough for the peak loads, and would, therefore, be correspondingly idle, at huge expense, during slack times. The haulier, for his part, as the direct result of regular work being available, can actually, and with profit to himself, accept lower rates than would otherwise be possible, for the reason that the ideal clearing-house relieves him of practically all Ms overhead or establishment charges.
The clearing-house people, naturally, have to be i paid. Their revenue s derived from the payments made by the merchant for the goods carried. It is in the form of a percentage, based on the direct charges for haulage. It is, therefore, to the interest of the clearing-house operators to keep business flowing as fast as possible, and, above all, they should encourage and suppcirt the haulier, so that he has no inducement to try to deal direct with the merchants himself. That is the ideal.
Now' the idea of a clearing-house is as old as transport itself. The principle is of even wider application, as witness the bankers' clearing-house for cheques. The theory I have just now enunciated. The practice, unfortunately, falls, as a rule, very far short of the ideal • at least it does in connection with road transport, and so far as the poor haulier is concerned. The reason is not far to seek. I explained the matter in an earlier article. The business has hitherto been mainly handled by merchants, who have but one object in view—the reduction of rates. The chance of the haulier, who has no organization capable of supporting him against such taktics, is a forlorn one. Hence the ill repute of the
clearing-house. I have seen clearing-houses and freight exchanges almost innumerable rise, and then fall, their departure being mourned by none.
How the Clearing-house Can Help.
Nevertheless, and notwithstanding all these faults and failures, there has long been, and is now more than ever, a real and pressing need for a live clearing-house, conducted on fair and proper lines. I have always realized this ; indeed, common sense, allied to any pretentions to a knowledge of the facts, would deride any other view. I have been, from that point of view, disappointed at the recurring failures, and at the short-sighted, narrow-viewed policy which has brought about the disasters. At least, however, they left room for hope, and as it is in the nature of things, whenever a real demand exists, that. the demand will ultimately, be met, I looked patiently and with certainty for the arrival of a real clearing-house.
When, the other day, I saw the advertisement by the National Road Transport Clearing House, Ltd., in The Daily Mail, I wondered—just wondered. I read it with mixed feelings. I liked it for its frankness, its free publication of rates. That I regarded as a good sign, for these times. True, the rates appeared, at first glance, to be low, so low that it might be difficult for the ordinary haulier to compete. That, however, I put on one side for careful consideration. I did not, however, care for the. tone of the remainder of the advertisement, which rather gave the impression that the company possessed, or would shortly possess, a vast fleet of 10-ton Scammels, with which they would, in time of short trade, compete with devastating effect against the small haulier, so that the recent win over the Railways Bill might avail us nothing.
Well, I have weighed up the rates. They are not so bad. If the clearing-house performs its proper function, and relieves those hauliers who work with it of overhead charges, and if the percentages charged by the clearing-house were not excessive, they might prove to be good rates. I have also made a direct personal investigation into the actual operations of the clearing-house itself, and I am very well satisfied. It is true that a new broom sweeps
clean and that the conditions may deteriorate. One matter which I certainly consider of supreme importance is a readysettlement of accounts. The ha.ther must necessarily treat every job as a ready money transaction, and it is vital -Ghat a clearing house should obtain quick payments in order that it may,
itself, pay quickly. I will, however, watch that point also. Next week I will tell all about my inves
tigation, and what I learned. THE SK0TC11.