The Future Lies with the Industg Itself
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THE title of the paper read by I Mr. J. S. Nicholl, M.Inst.T., C.A. (-Canada), at the C.M.1.1.A. conference on Wednesday, November' 10, was " The Future of Rates and Service in the Read Motor Transport Industry."
In choosing the recent T.A.C. report, in conjunction with the Baillie report on wages, he thought that therein lay a fair opportunity for the transport industry to put its house in order. In putting the matter of wages and con, ditions of employment first, Mr. Nichol' 'was of the opinion that when once a rates structure had been established it should be reasonably permanent, although he appreciated that such factors as general trade cbaditionS and fluctuations in the cost of living must inevitably cause certain fluctuations.
A rates structure, he said, must be founded upon operating costs which allow for the fullest compliance with the law in regard to driving hours, speeds and similar matters. He was riot unconscious of the fact that many operators pursued a policy of evasion in such matters and such. operators would either be compelled to operate ufteconomically or admit publicly to past evasion of the law, in the attempt to justify an increase in their rates.
Uniformity Essential.
In dealing with the conditions governing the carriage of geodS,' the author stressed the need forinstittiting uniformity, otherivik there could be but little effectiveness in the uniformity of the rates charged.
In this connection there was the matter of cubic measurement in relation to weight, the liability which the carrier accepts and the nature of the risks for which he accepts responsibility, loading and unloading conditions and many other factors, all a which must have a direct bearing on the matter.
Mr. Nicholl attached considerable importance to a rates structure, founded upon reasonably 'permanent operating conditions, as it Was most desirable to avoid rate increases which were likely to cause embarrassment to the . trader in the marketing of his goods.
He was not of the opinion that any rates 'a trueture could be built up with the aid of a simple formula. The most that can be done, he said, is to base .s.cales of rates upon a combined knowledge of running costs and traffic experience, and then to note how such rates work out under the test of actual experience and in conjunction with other similar eatinAte; for varying
quantities and journeys, Mr. Nichol' made a point that those who deal with the rates problem will have to approach it with their eyes open to the fact that existing rates are in many cases hopelessly unsound.