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STUMBLING BLOCKS TO BE MAGE AGREEMENT

1st September 1939
Page 30
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Page 30, 1st September 1939 — STUMBLING BLOCKS TO BE MAGE AGREEMENT
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Which of the following most accurately describes the problem?

ANOTHER snag which is encountered, when considering rates for the haulage of sugar beet, is the possibility of invasion of a particular territory by rate-cutting hauliers from other districts. This is particularly liable to occur during those campaigns in which the crop is somewhat less than average. Those in one area find there is not sufficient work for them to do and they divert their vehicles to another district. There, in order to get any traffic from those hauliers already established, they must operate at rates less than those prevailing in the invaded territory.

We are fortunate, in that the forthcoming campaign does not appear likely to be one in which there will be much of -the trouble just mentioned. According to all reports, the crop is likely to be a heavy one_ Indeed, it is reported that, in several districts, the farmers are already apprehensive that there will be great congestion at the factory and delay in transport.

This is, obviously, a matter which interests hauliers, and is one with which they might already be concerning themselves, in their negotiations with their farmer customers.

Whilst a bumper crop means freedom from prospect of such rate-cutting as I have just described, it brings additional difficulties in its train, in that hauliers have to cope with long delays in the factory yards, thus putting up their costs and at the same time reducing their earnings The point they should bear in mind, is that here is a factor which, at one and the same time, justifies them in calling for an increased rate and, because there is likely to be a shortage of vehicles, assists them in obtaining that increased rate.

The existence of these favourable conditions must not, however, blind hauliers to the fact that there are others which will make it impossible for them to take full advantage of the circumstances.

In the previous article (in the issue dated August 25), I referred, at some length, to the way in which opportunism plays its part in the haulage of sugar beet. I mentioned instances of milk hauliers who, taking advantage of what would otherwise be an idle hour or two for their lorries, pick up "snap loads" of sugar beet from their farmer customers and, in that way, upset what might be a reasonable balance both of rates and of loads into the factory.

Obviously, these operators can carry at less than what are economic rates for those engaged full-time in sugarbeet haulage. It is not practicable to take hauliers of this type into consideration, in attempting to frame a schedule of rates for sugar-beet haulage. The ordinary haulier, carrying sugar beet only, or sugar beet and back loads of pulp, cannot operate as cheaply.

It is, moreover, unnecessary to take cognizance of these marauders, as I might call them. Only a small proportion of the traffic available can be conveyed by them; they could not carry all of it, even if they were to offer to do the work for nothing.

The rest, that is to say, probably 90 to 95 per cent. of the sugar beet, will still have to be conveyed by those who bona fide set themselves out to do the work and et will have to be carried at the agreed rates and will be, provided that all those concerned abide by their agreement.

It is inevitable that, at this stage, I mention the owner

. driver. He is apt, particularly in this branch of road transport, to upset any plan for rates stabilization. He is prone to imagine that he can carry at rates less than those which are necessary to larger operators_ He is right only if he be content with the equivalent of a driver's wage—or less—as revenue.

On the face of it, with rates agreed, it seems absurd for any haulier, and particularly an owner-driver, to cut rates for, in so doing, he is merely taking money from his own pocket and putting it in that of his customer.

• The Owner-driver's Suspicions •

Actually, the owner-driver is suspicious of his bigger competitors and even with agreed rates in force will still fear that they will endeavour to take work from him by making overtures to his customers, giving them advantages in some shape. or other. Those competitors have so behaved in previous campaigns and that, to him, is almost certain proof that they will do it again.

Another point is that the owner-driver, being a lone hand, is, as a rule, more easily bluffed into the acceptance of low rates.

I hope that owner-driver readers will gather from the above that I am not among those who claim that they are the only culprits in this business of rate-cutting. The competition of the railway companies has also to be taken into consideration, especially in some areas, as, for example, Shropshire. They make no secret of the fact that they are prepared, in certain circumstances, to bargain with farmers for the haulage of their sugar beet. I quoted chapter and verse for that in the previous article.

It is also a fact that the responsible local railway official is in the habit of taking advantage of that latitude to cut rates in particular cases, sometimes regardless of what the cost of haulage may be.

What the attitude of the railway companies is likely to be, during the forthcoming campaign, having in mind the work of the Regional Committees of the Road-Rail Central Conference, I do not know. It may very well be that an agreement between road and rail, on the rates for the haulage of sugar beet, will be one of the first to be put into operation. I do know that active steps are being taken to that end. Pending such agreement, it is well to remember what has happened in the past and to realize that the railways are competitors for this traffic, not only by rail but by road.

• Factors that Must be Considered •

Another factor which must not be overlooked, is the possibility of the farmer deciding to carry his beet in his own vehicles. Hitherto, that has not been an important consideration, for several reasons. As a rule his men are too busy, and labour is too scarce for him to be able to spare a man to do the work. It should be realized that in the case of some farmers, this may mean the conveyance of upwards of 40 tons of beet per week, throughout the campaign. . _ Another reason is that only occasionally has the farmer

a suitable vehicle available at all times for the work. Then again—and this is a reason which must not be overlooked—rates, hitherto, hitherto, have been such that there has not been any great temptation for the farmer to consider doing the work himself.

• Finally, there is the effect, on rates, of the possibility of obtaining back loads. At one time, enterprising hauliers could make normal beet rates pay a good profit by this rather ingenious expedient, practicable only, it should be noted, in a district which afforded reasonable access to two sugar-beet factories which we will call A and B.

He would enter into contracts with farmers near each factory to take their sugar beet to the other one. In that way he would collect from a farmer near A, deliver to B, collect again from a farmer near B and deliver to A. With the percentage of pulp which most farmers take, it would be almost possible for him to be assured of return loads on every journey. That procedure is not practicable now, because in those districts where it used to be possible, the factory managers themselves decide the area within which they will place contracts for sugar beet, and no one factory will poach on the area of another.

There is, with most farmers, a certain proportion of return loads of pulp. The proportion is usually about one load in four, and it is customary to do the work for -about half the rate at which the sugar beet is carried.

On top of all the foregoing come uncertainty of weather (which may make it impossible to cart beet for days together), difficulty of reaching heaps of beet which are not on the high road, failure on the part of the farmet to have beet ready at times agreed, remissness in providing promised help for loading and congestion and long

waits of vehicles to unload at the factory. S.T.R.

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