Progress of Nationalization
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Some Interesting Moves on the Haulage Side and a Scheme for the " Disinherited"
ECENT moves in connection.. with the nationalization of road : transport, particularly in the haulage field, have aroused considerable interest, not only in the industry itself, but in financial and other circles. The fact that British transport stock has been placed upon a three percent. basis has encouraged much activity on the Stock Exchange in relation to the shares of those companies which have been, or are likely to be, affected: , . Whether some of the large rises that have occurred will be entirely justified by the amounts eventually received in compensation for the taking over of those concerns remains to be seen. There is; of course, the advantage that the interest is on a gilt-edge basis, and many people are inclined to place security above all else, but a large number of these operators, particularly those engaged in passenger carrying, have for years provided extremely good returns to their, shareholders. It would take considerable argument to convince us that any such compensation will be sufficient to secureto these holders interest at an equally profitable rate.
First Come First Served • It was a clever move on the part of the Government and its advisers to encourage early negotiations in connection with some of the larger transport concerns, on the assumption that those in first might receive more consideration. The arrangements, as carried out in one instance, seem to show that, at least for the time being, the transaction is little more than a change in shareholding, and it appears likely that the operators concerned will for a period, probably of long duration, carry on in much the same way as they are doing at present with, possibly, some change of title. In'the meantime, the Commission will 'find itself fully engaged in netting the small fry.
One of the regrettable features is that the rapid surrender of the big people has thrown the others into a state almost of panic, and there may be something like a rush to "sell out." In the circumstances, it cannot be expected that operators likely to be affected will carry on their work in orderly and efficient a manner as. they would have done if the threat had not become quite so apparent.
In our view, however, the task undertaken by the Commission will still be one of considerable difficulty, not on account of any serious opposition against the terms of the Act, because at this late stage .there would be little purpose in such moves, but for the reason that the financial investigations. are, in many cases, certain to be extensive. Even regarding this we must . remember that there is a proviso that where these are likely to occupy an inordinate period they can be extended beyond any take-over date, Little Change in Early Days Thus we may see at some not far-distant date a position in which a fair number of at least the larger concerns may be operated in much the same way as they arc now, although officially under the nis of the Transport Commission. It would, however, probably not be thought worth while to apply such a process to all the smaller hauliers running numbers down to one vehicle.
With regard to haulage businesses of comparatively small value, • there is little doubt that the owners of many of those which are fatally taken over will prefer to accept compensation on a cash basis rather than in transport stock, for a small amount of this stock would give but little return in the way of interest, certainly insufficient to constitute an income upon which the holder could live, whereas a thousand or two in cash would at least permit a reasonable investment in some other business.
While on this point, it is not too early to issue a warning to those who may thus suddenly come into the possession of a certain amount of capital. Many people engaged in haulage have had their, lives so bound up with it that they have had little opportunity of studying other trades and industries. Consequently, they may find themselves a prey to financial hawks and other gentry of this type who are always on the look-out for easy Money.
We consider that it might be advantageous to form what we may term a prcteetion society for the benefit of these small capitalists. Such a body could arrange to obtain the best advice possible on sound investments, also legal advice on partnerships, the formation of small companies, the purchase of businesses, and on other matters which it is unnecessary for us to discuss now.
If this suggestion be favourably received, we shall be willing to go into it more fully, and ourselves consult legal and other authorities, with a view to placing. any such enterprise on a sound basis. It would be worse than useless for such a body to be formed by any unqualified persons, and there would have to be strict supervision to ensure its utmost possible integrity and the soundness of any propositions put forward by it.