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DO CLEARING HOUSES CUT RATES?

20th September 1921
Page 14
Page 14, 20th September 1921 — DO CLEARING HOUSES CUT RATES?
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Which of the following most accurately describes the problem?

"The Skotch " Discusses this Question and Gives Instances of Rate-cutting by Coach Owners. He Also Replies to his Correspondents.

ISYMPATHIZE very keenly with the torrespondent signing himself " Running Costs," whose letter to the Editor appeared on page 125 of last week's issue. He instances a case of rate-cutting on the part of a clearing house. Candidly, I am not surprised. I have never been able to see. how the usual type of clearing house, controlled by people foreign to transport. interests or, at the very least., without any direct concern for the Well-being of the haulier, could ever, in the long run. prove to be anything else but a rate

cutting institution. .

Do the Clearing Houses Serve the Haulier?

I. have never been able to agree that clearing houses of the type of those which are being established up and down the country at the present time. would eventually turn out to be, as some people seem to imagine, the panacea for, all the evils to which the transport industry is heir, and particularly that of empty running on return journeys. Clearing houses, to my mind, if they are ever to, prove satisfactory, from the one point of view that matters, tamely, that of the haulage contractor who goes to them for loads, must needs be organized and run by organizations of haulage contractors, men who are pledged to a rates maintenance scheme from which they will not depart in any circumstances and who will rigidly boycott those concerns which do accept return loads at _ridiculous prices, or at any price below the standard. I am a great believer in the universal application of the Biblical saying, ." He that is not with me is against me." If the people who run clearinq. houses are not definitely .pledged to the transport interest, then they are agamst it, .and their natural tendency will be -to secure for their clients, the people who have loadswhich they wish carried, the heat possible terms, which must in the long run become rate-cutting on an extensive scale.

The rate offered, in this particular instance, by the clearing house was nothing more Or less than ridiculous. E5 for "a.. five ton lorry for 85 miles is less than Is. 3d. a mile, and the bare working cost at the most recent computation, and taking into consideration the reduced price of petrol, is is, 3i.d. a mile, supposing the lorry was running 600 miles a week, which is not likely. The minimum price for the job, according to our own standard rates as tabulated on page 59 of the issue of the 30th nitimo, amounts to approximately 29. " Running Costs " estimates E8 158. as a minimum. I have myself, as a matter of fact, just been charged Is. a mile for a one-tonner for a journey of practically, four times that .distance.

. Rate-cutting by Coach .Proprietors.

Other examples of rate cutting are occurring daily in connection with the motor coach business. It would almost seem as though some people were in the trade merely as a hobby, one on which they were prepared to spend quite a considerable amount in order to gratify, their tastes. A sum of 12s. 6d., I understand, is being quoted as the return fare from London to Hastings on 19-seater chars-k-banes. Even if we assume, as is not likely, that the average number of-passengers carried would he 15, and also that the return trip is aceomPlished in a day, this leaves little margin on a basis of continuous running all the year round. If, as is only likely, the service will only be regular for between 20 and 30 weeks of the year, then it is being run at a loss.

c/8

Some Questions Answered.

An inquirer wishes to know if a. boy who has attained the age Of 16 years may legally drive a 20seater omnibus. The answer is, I believe, " no," now. that the war is definitely over. The existing law was modified under D_O.R.A., and permitted, for the sake of keeping transport running when most of the men were at the front, youths of 16 to be employed -as drivers of cars, whereas the legal age was really 17. My correspondent sighs himself " A Regular Reader." I have pleasure in informing him that he is one of a distinguished and numerous company.

Another, whom I will, for the purposes of . distinction, designate "Hyde Park,'—he is probably as much a regular reader as the. other—tells me he contemplates starting out as a haulage contractor. He wants to know which is the .better for his purpose, a three ton or a five ton lorry. To reply to this query, I should really be made acquainted with the clare of work he proposes to do, and the. type of industry which he will serve. Actually, however, I note. that he live s in a seaport town, and therefore, since, he Will probably be doing dock work, I recommend him to buy a five-tonner.

In his second question, he demands to 'know .the working cost of each size. Those were given very fully . and in an up-to-date form, in page 59 of our issue' of August 30th, and I am.. going. to refer him to that issue for the information which he requires.

Does Mechanical Knowledge Help ?

His third .question is prefaced by a statement to the effect that he is a practical man, and he wishes to know if that will be of any advantage to him.

The answer is that alldepend's. If his leanings towards the practical side are so strong that he is

likely to spend half his time fiddling round and tinker ing with the mechanism of his lorry, the_.answer is "no.' But if he has enough " savvy " and .Sense of balance to let well alone, then, obviously, his practical knowledge will be of considerable use in keeping down his repairs and maintenance bill.

He inquires about insurance. An answer to this question would occupy several of my weekly articles,

and in actual fact three were devoted to thesubject precisely a year ago, but on the broad question as to the extent of cover, my advice is, take out a comprehensive policy and do net be persuaded into accepting the first .25. or £10 worth of risk yourself.

I cannot, in these columns, enter into a discussion of the relative merits of various types. of lorries. The one mentioned by my correspondent in his letter would probably prove satisfactory.

In his sixth question,_ he inquires if thebusiness is likely to be a permanent one, and I gather that he means the business Of haulage contracting in general, and not merely his.own.qiurticular enterprise. The answer is that it is as likely to be as lasting as any, and alittle longer than most, because, when all others are dying or defunct, the motor lorry will be necessary to cart away the remains. Railway. competition will certainly not swamp it.

In answer to hi a final question as to rates, I must again refer him to the article which appeared on August 30th last. TEE SKOTCH.

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Locations: Hastings, London

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