Nationalization of Goods Road Transport
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THECommission is under a statutory duty to give a notice of acquisition in respect to any undertaking, the activities of which consist wholly or partly of the operation of Aor B-licence vehicles, if (i) it was conducted during any part of 1946, and (ii) its goods-transport activities in 1946 consisted, to " a predominant extent." of " ordinary long-distance carriage" for hire or reward (see next page for explanation of these expressions).
The Commission may enter into an agreement with an undertaker liable to acquisition not to serve a notice of acquisition, or to withdraw a notice already given if, having regard to its duties under Sec. 3 (I) (See "The British Transport Commission," pages 64-65), the Commission thinks it expedient to make an exception by reason of the special character of the undertaking, or by reason of the goods
carried, or the locality served by the undertaking. The agreement may be subject to conditions, and if they be broken, the Commission may serve notice of acquisition as if no agreement had been entered into (Sec. 39 (I)).
If an undertaker contends that he should not have received a notice of acquisition, he may serve a counternotice on the Commission, and if the Commission does not withdraw the notice of acquisition, the question is determined by the Transport Arbitration Tribunal (Sec. 40 (2). and (3)). (See " Transport Arbitration Tribunal' on this page).
If an undertaker contends that he should have received a notice, he may serve a notice on the Commission requiring B29 that body to serve a notice of acquisition, and if it does not do so, the question is determined by the Transport Arbitration Tribunal (Sec_ 40 (4)). (See "Transport Arbitration Tribunal" on the previouS page).
There are special provisions for cases where an undertaking has been merged in another since November 28, 1946 (Sec. 43).
The notice of acquisition has to specify the date on which the transfer of the undertaking to the Commission is to take effect; if an arbitration arises, this date may be postponed to one month from the determination of the arbitration proceedings (Sec. 44).
"ORDINARY LONG-DISTANCE CARRIAGE" "Ordinary long-distance carriage" is defined as the carriage of goods, by the person carrying on the undertaking, for a distance of 40 miles or upwards, measured along the route actually taken, in one goods vehicle, or a succession of goods vehicles, in such circumstances that the vehicle, or any of them, is at some time during the carriage more than 25 miles from its operating centre (Sec. 39 (2) and (3)).
"Operating centre" is defined at length in Clause 58, but, generally speaking, is the premises specified in the application for the A or B licence relating to the vehicle as the permanent base or centre from which it is intended that the vehicle will normally be used for the purpose of carrying goods for hire or reward. Where, in 1946, a B licence was subject to a condition that the vehicle should be used for carriage of goods for hire or reward in a district limited by a distance from a specified point, the operating centre is that specified point.
[Note that two conditions have both to be fulfilled: (0 the goods have to travel more than 40 miles, and (ii) one of the vehicles carrying them must at some time, while it is carrying them, be more than 25 miles from its operating centre. Therefore, it is not "ordinary long-distance carriage" (i) for goods to be carried more than 40 miles if the vehicle is always within 25 miles of its operating centre; or (ii) for goods to be carried for less than 40 miles, even if the vehicle be more than 25 miles from its operating centre.
It would seem that the 40-mile journey limit applies separately to each parcel of goods, so that if a vehicle makes a round tour more than 25 miles from its operating centre, picking up and delivering various parcels, only those parcels which travel more than 40 miles count as " long distance."
It would also seem that goods may be carried any distance by a series of vehicles, provided that none of them ever goes more than 25 miles from its operating centre.] "A PREDOMINANT EXTENT" The activities of an undertaking are to be deemed to have consisted, to a predominant extent, of ordinary longdistance carriage for hire or reward if either-of the following conditions be satisfied: (a) Total weight of the goods which were the subject of ordinary long-distance carriage for hire or reward in goods vehicles of the undertaking exceeded half the total weight of all the goods carried in all the goods vehicles of the undertaking (whether under A, s B or C licences and whether carried for hire or reward or not). (b) Receipts of the undertaking for ordinary longdistance carriage for hire or reward exceed half the total value to the undertaking of the services of the vehicles, obtained by adding to the receipts from carriage for hire or reward, a sum in respect of carriage otherwise than for hire or reward, equal to the charge which could reasonably have been made if they had been carried for hire or reward (Sec. 41 (1) and (5)).
If there be not sufficient evidence for the Arbitration Tribunal o conclude definitely whether one or other of the conditions has been satisfied, the Tribunal may, nevertheless, determine that the activities of the undertaking did consist, to a predominant extent, of ordinary long-distance carriage for hire or reward, on such information as is available (Sec. 41 (1)).
The following traffics do not count as goods carried on ordinary long-distance carriage: Liquids in bulk in a tank permanently fixed to the vehicle, or 'in a tank not so fixed, of which the capacity is not less than 500 gallons; goods B30 of a special character which under statute may be carried only in a vehicle constructed or adapted to statutory requirements; ordinary furniture removals; meat; livestock; felled timber in a specially constructed vehicle; any carriage effected wholly in vehicles specially constructed to handle abnormal indivisible loads; and the carriage in a vehicle in which no other goods are being transported for hire or reward, of apparatus or equipment ancillary to the operation of such a specially constructed vehicle (Sec. 39 (2)).
[Note that these exempted traffics are in effect addec. to the short-distance traffic for determining the "pre dominant extent," whether by weight or receipts.
The necessary calculations may be easier to understand after studying the following examples:—
Example A (i) Total weight of goods carried on ordinary long-distance carriage for hire or reward in Aor B-licence vehicles (no exempted traffics) 5,000 tons.
(ii) Total weight of all goods carried on Aor B-licence vehicles (including exempted and undertaker's own traffic) 9,000 tons.
(iii) Total weight of goods carried in C-licence vehicles (not for hire or reward) 2,000 tons. As 5,000 tons does not exceed half of 9,000 tons plus ( 9,000+2,000 2,000 tons 1 — 5,500 tons the under taking is not liable to be taken over.
If the undertaker has no C-licence vehicles, he would, on the figures given, be liable to be taken over, because 5,000 tons does exceed half of 9,000 tons.
Example B (i) Total weight of goods carried on ordinary long-distance carriage for hire or reward in Aor B-licence vehicles (including 500 tons • exempted traffic, e.g., furniture removals) 5,000 tons.
(ii) Total weight of all goods carried on A-, Band C-licence vehicles (exclusive of longdistance exempted traffic referred to above, but including undertaker's own traffic) 9,000 tons. Total weight of (i) (5,000 tons), after deduction of exempted traffic (5,000 — 500 = 4,500 tons), does not exceed half of (ii) (9,000 tons) after addition of (9,000+500 exempted traffic — 4,750 tons so the undertaking is not liable to be taken over.
Example C (i) Receipts from ordinary long-distance carriage for hire or reward in Aor B-licence vehicles (exclusive of exempted traffics) £5,000.
(ii) Estimated reasonable charges for carrying goods carried otherwise than for hire or reward in all vehicles (inclusive of exempted traffics) £4,000. As £5,000 exceeds half of £5,000 plus £4,000 £5,000+ £4,000 — £4,500), the undertaking is liable 2 to be taken over.] CONVERSION OF VOLUME TO WEIGHT
The following provisions apply for converting volume to weight, where goods were carried for hire or reward and the charges were calculated by reference to volume:—
(a) Where the scale of charges was by weight, but the weight was to be calculated by reference to the volume, the weight is to be calculated on the same basis (Sec. 41(2)). (b) Where the goods were charged for by volume ascertained by authorized calibration marks, the weight is to be calculated at such ratio of weight to volume as is customary in relation to those goods in the appropriate trade or industry (Sec. 41 (3)). (c) Where the goods were charged for by volume ascertained otherwise than by calibration on the vehicle, the weight is to be calculated at 1 ton for every 80 cubic ft. (Sec. 41(4)).
[Note that these provisions apply only to-goods carried for hire or reward; there stems to be no provision for similar conversions when ascertaining the total weight of goods carried in vehicles for the purposes of Sec. 41 (1)..
Example A.—Suppose that goods are agreed to be carried for 10s. a ton, that 1 ton is agreed to equal 50 cubic ft., and the volume carried under the contract is 1,000 cubic ft.; weight to be taken is, therefore, 1,000
= 20 tons.
50 Example 11.—If goods being carried in vehicles with authorized calibrations, and to be paid for in accordance therewith, are in the industry customarily agreed to weigh 1 ton per 100 cubic ft., and the volume carried under the contract is 1,000 cubic ft., weight to be taken 1,000 — 10 tons.
100 Example C.-1f goods are carried by volume measured otherwise than by means of calibrations on vehicle, e.g., before being put in the vehicle, and volume carried under the contract is 1,000 cubic ft., weight is to 1,000
be taken as --= in tons.
80 The goods carried in all cases might be the same, but, on account of the different methods of measuring, the results are different.] CONTROLLED VEHICLES Where the whole or any part of an undertaking was under the control of the Minister by virtue of a Road Haulage Organization Agreement for any part of 1946, the undertaker may require the Commission to serve a notice of acquisition; if he does not do so, the conditions of Sec. 39 (1) have to be satisfied in respect to that part of 1946 wh:n the undertaking was not subject to the Agreement (Sec. 42 OM Where any vehicle was, during 1946, on hire to the Minister under the General Conditions of Hire of Goods Road Motor Vehicles, then either (a) the undertaking is to be taken to have started on the date the agreements ended; or (b) if the undertaker so elects, the receipts test in Sec, 41 41) shall be applied, sums received from the Minister being treated as receipts from ordinary long-distance carriage of goods (Sec. 42 (2)), THE ASSETS TRANSFERRED Unless otherwise aareed between the Commission and the undertaker, and subject to the Commission's power to disclaim certain contracts, all property held and contracts made for the purposes of the undertaking (except as mentioned below) are transferred to tile Commission, freed from any mortgage or similar encumbrance (liability for which, therefore, remains on the undertaker) (See. 45 (1) and (2)).
Where activities other than the operation of Aor B-licence vehicles are carried on, the undertaker may give notice to the Commission within the prescribed time that he desires tLat specified property or contracts may be retained, and they will not be transferred unless it is reasonably necessary for the purposes of the Commission that they shou:d be (Sec. 45 (1)).
Certain items, including cash and contracts of personal services as a director (other than a managing director or a director whose functions are substantially those of an employee), are excluded from transfer (Sec. 45 (5)).
An undertaker must, within 14 days of the date of transfer, supply the Commission with particulars of all property acquired, and contracts entered into or varied on or after November 19, 1945. The Commission may disclaim any such property or contract if the acquisition, or making or variation as the case may be, was not reasonably necessary for the purposes of the undertaking, or was an act of unreasonable imprudence on the part of the undertaker (Sec. 46).