Clearing Houses 'Necessary to Government Scheme
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THE position of clearing houses in relation( to the Government Haulage Scheme in particular and to post-war haulage in general was the subject for discussion at an informal gathering on December 2. The National Conference of Road Transport Clearing Houses had invited leading authorities in transport and the Press with a view to this subject being ventilated. A typical small haulier, owner of three vehicles, was also present and gave his views,
Mr. F. C. G. Mills, chairman of the Conference, pointed out that clearing houses were not provided for in the current Government scheme. and were excluded from the previous one. As the result, many clearing houses had received cancellations of contracts. The Hauliers' National Traffic Pool, formed to further the objects of the former Government scheme, was not a success either from the point of view of road-haulage operators or from that pf traders who were compelled to use the pool as a means for effecting move
nient of their goods. • Clearing houses, he pointed 'Mit, were originated through Chambers of Commerce, as the result Of the need 'for economy in fuel and man power during the past, war. Their survival and growth is a testimony to their efficiency. No operator can claim to have anything like their specialized knowledge and experience. He expressed the opinion that clearing houses were responsible for the development of long-distance road transport. Larger operators, following the example set, have been operating on clearing-house lines and working in the same way as clearing houses.
Controrof Clearing Houses?
He advocated the licensing of clearing houses, but that they ought to operate within the Government scheme as controlled undertakings, their operations being; in a sense, parallel to those of larger operators with .their unit controls.
The interests of the small operator and those of clearing houses are identical. Dealing with thie point of view of cost, he expressed tffe view that, by the employment of clearing houses, economies would be effected.
The Government scheme, he pointed out, is likely to react to the disadvantage of the small operator, for he would have to rely upon the unit controller for business and would not be able to maintain his contatts with his seastomers. Moreover, merchants, for their into sakes, will have to ensure that they retain the goodwill of unit controllers, and if the scheme goes through without emendation the small operator will lose his identity, as also will the clearing houses.
There is, too, he said, this feature, that the operation of the scheme will encourage the disreputable type of clearing house, because clearing houses Mriding traffic to unit controllers will do so at the fixed rate, but may charge their customers whatever they please.
He made, reference to the Waldorf Group, which, he pointed out, is comprised mainly of large transport companies which were linked up with the railway companies. The Waldorf scheme for the operation of transport during the .-ar was, in effect, the same as that now put forward by the Government, and can therefore be stated to be railway improvised.
By the end of the war, Mr. Mills prophesied, if this scheme continues unaltered, unit controllers will have direct control of the road transport of the country: they represent only big concerns and are in contact with all those who have goods to offer for transport-. The small operators will thus be entirely dependent upon the unit controllers for any traffic which they may get, and it is certain that such operators will be given only work which the larger operators do not want.
Merchants and traders will be at the mercy of the big operators, which, in effect, will mean the Waldorf Group, which is, practically, railway controlled. It is therefore incumbent on small operators to give the maximum of support to clearing houses.
Views of Transport Expert Mr. Frederick Smith opened his remarks by pointing out that whatever he said must be taken to represent his personal views and pot those of Lever Bros. In his view, the road-transport industry 4s at the crisis of -its history. A crisis, however, which 'is not entirely. without hope, because of the Government's acknowledgment that a roadtransport industry, healthy in its outlook and in every respect, must be kept in being.
It seems, he said, that the whole approach to the problem of road transport is based upon fundamental misconceptions. Whilst be did not accept the view that the officials of the M. of W.T. had allowed the activities of the Waldorf Group and other large vested interests to -weigh with them when' devising the Government scheme or had any intention of linking these groups up with the railways in order to get a controlled monopoly, he did think that these groups, having been the most vociferous, had' been able, through their contacts, to express their 'views to the Minister in a way which the smaller operators and, perhaps, the clearing houses, had been unable to do.
He thought that' the real function of clearing houses in the road-transport industry had been overlooked, and he suggested that in a country which should, so far as possible, porlerve every element of private enterprise, a position should not be allowed to arise in which organizations such as the road-transport clearing houses were driven out of existence, thus curtailing this element of private enterprise. The
virtues of the road-transport industry have been built up on initiative and, above all, on that essential element of personal service which it is utterly impossible to obtain from thelarger organizations_ In the preservation of that characteristic the clearing houses must play an increasing part.
The great weakness of the transport organization under War conditions has been the almost complete failure to co-ordinate the demands for transport. Not only is each Government Department a law unto itself, but each division within a Ministry is also in a similar position. In the Ministry of Food, 'of which Mr. Smith had personal experience, each commodity division takes the responsibility, for its own arrangements, for transport.
.The correct procedure for these Departments, he epined, was to look to some organization under the control of, or related to, the hauliers themselves, and he thought it safe to say that the clearing houses, if properly organized, not only on a national basis, but also regionally, could play a very important part in the co-ordination of the demand for transport, so that, not only in respect of road transport, but in respect of other forms, they can be, virtually, the bodies responsible for the allocation of traffic.
He thought it a grave weakness of the new Government scheme that the control is to be placed in the hands of operators individually interested in the traffic itself, and he suggested that the right line of approach would be the provision, as a link, of a clearing-house committee, and that around this should be erected an organization to receive from traders and from Government Departments, orders for the movement of traffic. He thought this a better idea than for the clearing houses to be associated as controlled undertakings within the Government scheme, as had been suggested by Mr. Mills.
Opinion of Small Operator
Mr. R. E. Perrott followed Mr. Smith. He said that he was -a small haulier operating three vehicles on long-distance haulage in conjunction with a clearing house. He stated that 'he had received considerable help from this, especially in obtaining back loads for his vehicles and in facilitating that essential quick tinru-ound of vehicles.
Mr. W. H. daunt said that he would like to support the previous speakers. There was, he said, no reference in the Government scheme to the valuable help which clearing houses had rendered and could render.
Mr. Caulfield Giles said he was disturbed at the cleavage in the ranks of hauliers which was threatened and the threat to divide C licensees from A and B licensees. The future of the industry depended on unity.