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22nd May 1936, Page 40
22nd May 1936
Page 40
Page 40, 22nd May 1936 — - "Good in Parts," says &TR.
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Which of the following most accurately describes the problem?

Keywords : Business / Finance

He Deprecates Enforcement of Rates by Licensing Authorities and Conciliatory Approaches to the Railways

ANY scheme to stabilize rates at an economic level is worthy of the most careful consideration. One coming from Mr. Keeling is doubly entitled' to that courtesy.

Most of the plan described is, in my view, excellent in conception, particularly the Suggestion that area rates committees should be set up. The suggested functions of those committees, the method of sectionalizing the rates, the scheme for communicating them to hauliers in other areas, and the proposal to weed out undesirable clearing houses are all good.

There is wisdom, too, in the suggestion to submit the rates to the Licensing Authority, but it would be a serious error to ask that he should be given power to enforce them. Mr. Keeling is surely aware of the anomalous position which exists in the passenger side of the industry, as the direct result of the enforcement of rates by the Traffic Commissioners.

The outcome has been a tremendous loss of business to the railway companies, which, immediately road fares were fixed, took advantage of the position thus created to cut them and to crush road transport opposition wherever possible. And, bear' iii mind, goods haulage is more vulnerable to attacks of this kind than is passenger carrying, Negotiation Impossible.

I strongly deprecate, too, all Mr. Keeling's suggestions which have as the end in view any rapprochement with the railway companies. No conciliatory policy is possible in dealing with the railways. Their attitude is a planned and determined one—that of absorption of road transport and an ultimate monopoly.

Ten years has been allotted as the period needed for the consummation of this scheme. They will enter into no agreement with road transport which will interfere with this plan and if, inadvertently or shortsightedly, any agreement be made which subsequently proves to be detrimental to that end,. that agreement will be voided in some way or other.

• The only attitude possible towards the railways is the fighting one, the attitude which any business man would adopt towards an unscrupulous and for midable competitor. No concessions can be made and no weaknesses left exposed.

Nucleus of Rates Scheme.

The nucleus of a scheme of rates stabilization is. embodied in Mr. Keeling's plan. The key to its success lies in his own words, with which the above description is concluded. • have, on many. occasions. durirrg my lectirses,, stressed. the fact: thrtt,.,the industry is now virtually a closectaitig.

Tags

Organisations: Licensing Authority
People: Keeling

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