Licensing Problems Elucidated
Page 51
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A Coal Business and General Haulage.
(95) QUESTION: I have two 30-cwt. lorries, one of which is being replaced by a new -2-toriner. I use these for my own coal business as well as for carrying out occasional haulage for another concern, for which I travel distances of 30-50 miles. What class of licence shall I require?
ANSWER: You will require a Class B licence as a limited carrier, because you use the vehicles in your own business as well as for general haulage. If you were carrying the coal for someone else, then you could make application for a Class A licence, but this is apparently not the case. Your application will have to be for " discretionary " tonnage.
A Class B licence' is subject to certain limitations at the discretion of the licensing authority, in respect of the loads carried, the persons for whom they are carried, the districts in which the vehicles are operated, and the places between which the goods are carried.
The extra tonnage of the new vehicle should be included in your application. You must explain that this is a vehicle to be purchased as a replacement. it would be advisable for ou also to put in a claim for " hiring allowance."
Using an Authorized Vehicle for Breakdowns.
(96) QUESTION : We are coal, sand and builders' merchants and have applied for a Class B licence.
We are also garage proprietors and general engineers, and in this respect wish to know whether, in the event of one of obx own lorries or a client's car breaking doWn, we may tow it in with one of our ordinary vehicles, or must this be specially licensed or carry trade plates?
ANSWER A goods vehicle'is considered as operating under its carrier's licence only when it is used for its purpose as a goods vehicle. A vehicle used for breakdown work does not require a carrier's licence, and, therefore, there is no objection to your doing such work with your ordinary vehicles, whether licensed in Class B or otherwise.
Where Separate Legal Entities would Solve a Difficulty.
(97) QUESTION: Ours is a long-established business (over 40 years as hauliers and coal merchants). It has always been a family concern and now contains three partners—father and two sons.
We need five wagons for our business, all Class A, yet each must, at various times, deliver coal which we have sold.
Is it possible, therefore, to form a separate private firm, one within the other, so to speak, with one, two or all three partners as proprietors of the coal business, and to trade under a slightly different name? The one concern would then have five wagons under a Class A licence as general carriers, the other concern having no wagons at all and acting merely as coal merchants, and employing the wagons of the haulier company for the delivery of its coal. The whole concern would, however, run entirely as before, the two sets of :accounts merely being kept separate.
ANSWER: We do not consider that it would be possible for you to create a separate firm within your present partnership for the purpose of operating your business as coal merchants so as to enable the present firm to contract for the delivery of coal ordered from the new firm. In any case such a transaction would be likely to be severely criticised, and might prejudice you in. the eyes of the licensing authority. The difficulty could, however, be overcome by your forming a private limited company to take over the part of your business which deals with the buying and sale of coal. Such a company would be an entirely separate legal entity from your present firm, and there would appear to be no Objection to the company contracting with your firm for the conveyance of coal. Such a company would need to have only a nominal capital, and the expense al creating it would not be lrge.
The alternative appears to be for you to apply for a Class B licence for all your vehicle's, although you would be entitled to apply for a Class A licence for any vehicle which you will use only as public carriers, and not in connection with your coal business.
A Combined Haulier and Corn Chandler.
(98) QUESTION: I have lately purchased a corn chandler's business in which I was previously a partner. After taking this over, in order to make it pay, I started up as a haulage contractor. I have had to register the corn business in order to carry on trading as — Bros., whilst the haulage business has been kept on as R. —, contractor.
May I consider that I am carrying goods for a separate concern when using the vehicles for the corn business?
ANSWER: Unless the two businesses are run as separate legal entities, you will have to apply for a Class B licence, as you will be considered as a limited carrier.