Carpet-Baggers
Page 55
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GENERAL astonishment has been expressed that, at this stage in the fortunes of the road haulage industry, a long-smouldering difference of opinion should come to light between long-distance operators and clearing houses, The renewed political threat from the Socialists ought to make the sections of the industry draw closer together. It seems foolish that, in the face of a common danger, they should choose this time to revive old feuds.
Whether the quarrel is really serious or can be discounted remains to be seen. On the surface it seems trivial. The clearing house group of the Road Haulage Association have taken umbrage because the longdistance committee are moving into what the group regard as their territory. There can be little cause for discontent if the right of the committee to exist is accepted. They were bound before long to discuss methods of interworking. This must mean the interchange of traffic, which in turn means sub-contracting, which is the function of a clearing house.
What may help to perplex the observer is the lack of a satisfactory definition to distinguish the clearing house from the haulier. There is hardly a haulier who does not sub-contract some of his traffic, and there are few clearing houses in existence *without vehicles of their own.
Definitions Devised Definitions have had to be devised for specific purposes, but they have not been found capable of a general application. Certain conditions govern entry into the R.H.A. group and into the National Conference of Road Transport Clearing Houses. Even so, it has been necessary to find a place for a hybrid known as a "carrier clearing house," that sub-contracts the majority of its traffic.
There are many hauliers who on paper would satisfy this definition, but would not dream of calling themselves clearing houses. In several recent decisions, the Transport Tribunal have found it necessary to emphasize that the need to sub-contract, however it may grow, is not in itself justification for extra tonnage. It was unsuccessfully argued, in the case of Siddle C. Cook, Ltd., that there was proof of heed when the proportion of sub-contracted traffic had reached something like 60 per cent. Such cases indicate the extent to which hauliers find they have to act as clearing houses in everything but name.
Clue from Reaction
Some of them would reject the appellation with scorn. Their emotional reaction may provide a clue to the true state of affairs, and lead, not so much to a definition, as to a description of the activity that is peculiar to a clearing house.
The haulier has been known to regard as interlopers clearing houses that set up business in his town. They are to him the equivalent of the carpet-baggers who descended on the Southern states of the U.S.A. after the Civil War. No doubt, he resents other hauliers coming in to compete with him, but at least they are of his own kind, Like him, they must hold licences. Whether they are seeking return loads, or establishing depots for their vehicles, they are recognizably members of his own industry. The clearing house, more often than not, moves into a place where, in the colloquial phrase, be has no business. That, at least, is how local hauliers are inclined to regard his activities. He will choose a town from which there is a considerable volume of traffic, and offer to arrange for its transport by road. He helps the trader by taking the job off his shoulders, and helps hauliers, particularly those who are foreign-based, by. providing a central reporting point.
The Theory
This is the theory, that may sometimes work out in practice. Frequently, however, the job that the clearing house promises to do is already carried out by one or more of the larger local hauliers. When this happens, the clearing house can establish himself only by offering to take the traffic at a reduced rate. He must then find hauliers to carry the goods. Most of the people he approaches are bound to be the local operators who have handled the traffic in the past. Whether he succeeds or not, he can hardly hope to make himself popular.
Some well-established clearing houses have lived down whatever resentment may have been felt when they first set up in business. Although they may thus have acquired respectability and even honour, their function is still similar to that of the carpet-bagger. Basically, their aim is to find vehicles to suit_ their traffic; that of the haulier is to find traffic to suit his vehicles. The clearing house prefers a surplus of vehicles; the haulier a surplus of traffic. . • Ideally, the aims should be complementary rather than incompatible. The small man, in particular, benefits from having the choice between clearing house and fellow haulier when seeking his return load. He may prefer the haulier as a man more of his own kidney, but; in fact, the clearing house has a direct interest in keeping the small man in business.
Sub-contracting
Sub-contracting, whether'by clearing house or haulier, is not simply a matter of taking in one another's washing. It provides the means for attracting more traffic to the industry as a whole, and enables operators to carry a greater tonnage of goods.
The description I have given of the contrasted functions of the two sides of the industry makes it clear, however, that there will always be some danger of friction between them. This is all the more reason why they should keep in close collaboration. Hauliers and clearing houses should compete on agreed, and not on cut-throat, terms.
It is likely that a resolution of their differences will be reached before long. The clearing house group of the R.H.A. have for some time had a code of conduct. The long-distance committee are in process of drafting one of their own, which will probably not be greatly different. Rates are among other matters under discussion. If on this also the group and the committee can make common ground, a notable step will have been taken towards the better organization of the road haulage industry.