A Simple and Fair ClearingHouse Agreement UOLLOWING "the publication in
Page 21
If you've noticed an error in this article please click here to report it so we can fix it.
our Iissue dated December 4 of an article entitled " The Urgent Problem of Clearing Houses," we have received from Herbert Smart and Co., Ltd., a copy of a form of agreement under the -terms of which haulage contractors engage its vehicles to carry loads for that concern which claims to be probably the oldest long-distance haulier not owning vehicles. Originally founded as ship brokers and forwarding agents, the company extended its business in 1916 to include long-distance road haulage. It is stated that some of the sub-contractors, operating for the company, have been doing so continuously for more than 20 years.
The form of agreement, stripped of its legal verbiage, provides as follows:
The haulier places one or more of his lorries, specified in the agreement by licence numbers, at the disposal of Herbert Smart and Co., Ltd., which prefers to be described as " Traffic Managers.' The vehicles are available to the Traffic Managers whenever they happen to be in London or in the towns in which branch offices of the Traffic Managers are situated.
On their part, the Traffic Managers undertake to offer to the haulier any available traffic under their control; to provide, in each district served by their offices, a canvasser whose business it is to venire traffic; to keep true records of the weight and nature of traffic carried and of the rates paid, and to ,aupply such records to the haulier each week in the form of credit notes for work. performed. Payment of the account doe to the haulier in accordance with these records is made at the end of each month following that in which the work was done.
Ile Traffic Managers, furthermore, undertake 12 general to utilize such vehicles to the best of their ability. The Traffic Managers deduct 125,5 per cent. of the earnings, which sum is, in part, disbursed in covering the cost of management on behalf of the haulier, .that is to say the cost of prnriding the toads which the haulier carries, and the cost of goods-in-transit insurance against all risks, except negligence of the driver, loss Cr damage by breakage or acratching of g:ase, furniture, earthenware and the like, or loss by leakage unless such less or damage shall have I.een caused by accident to the lorry. The first £2 10s. of every elaiin under the Insurance is to be borne by the haulier. The agreement remains in force until either party shall cease to operate in Its respective capacity, or may be terminated by three months' notice on eithez side.
We are given to understand that this form of agreement, whieh is simple, fair and reasonable, has been continuously in force with a number of hauliers from the time that it was inaugurated some years before the war.