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Do Combines Keep Up Prices?

23rd March 1951, Page 53
23rd March 1951
Page 53
Page 53, 23rd March 1951 — Do Combines Keep Up Prices?
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Which of the following most accurately describes the problem?

endeavour to cut some of the heavy costs which, to my mind, are being forced upon us by these associations, which, when all is said and done, are another form of nationalization.

Barrow, Lancs. FLEET ENGINEER.

I KNOW that your widely read journal, The 'Commercial Motor," is always ready to air the views of transport -managers and engineers. I would, there fore, draw attention to the many reputable concerns which have combined, forming groups and associations which are quickly building a wall around free enterprise, so much so that already there is only the smallest outlet. I have in mind the tyre, battery and electrical component manufacturers, and many others, who, between them, have rigidly fixed prices and terms of trading.

These people, on appointing agents and dealers, now emphasize that these must not give better concessions

to a customer than do their competitors. Their representatives will tell you that this is done solely for the purpose of getting rid of competition in the trade. Many agents and dealers with whom I am acquainted tell me they would be prepared to offer more favourable terms, but dare not do so for fear of being black-listed. So it appears that dictatorship is part and parcel of the system.

In nearly all cases where I have talked with the directors and managers of these agencies, I have been informed that they, personally, detest the operation of these rings, but their hands are tied. I would also quote a recent broadcast, when we were told that a director of a large vehicle-manufacturing company had said that without these rings the industry would be far better off. Surely, a man with his business abilities must know right from wrong. Another point worth considerable thought, and which deserves comment, is that the many concerns forming these rings are surely not all on the same overheads, and some of them could, I feel certain offer more favourable terms if allowed.

They all have representatives coming round, who tell you that they are there to keep contact with old customers, not as in the earlier days, when they were building up these businesses. I have known in the past tyre and other representatives who, if they missed seeing you at the office, would make it their business to hunt you out at the club or " local " if they thought they could sell a few tyres, batteries or components by offering that extra 24 per cent. or giving you a better mileage rebate. Now there are only the nationalized industries and municipal authorities on this sort of agreement. The fleet operator, to obtain a niggardly concession of discount, must spend thousands of pounds at a time, mileage, unless colossal, not being taken into account by manufacturers.

I know that the terrific rise in prices on the world markets must have a tendency to create financial interests between concerns, but this country's standing was built up all over the world by free enterprise and competition. Small businesses at home were built in the same way, on wise spending and buying, where the price was right and satisfaction was derived from successful bargaining. There is still a small chance of obtaining some concessions, and that is by trading with those outside these rings, whose goods are as satisfactory, and in some cases better, than those from huge undertakings, which fleet operators were helping to build only 30 or so years ago. I say that these rings and combines should take heed. I, for one, will have a tendency to trade outside them and, by careful buying, FITTING TRAKGRIP TYRES ON A MATADOR ALTHOUGH my present work is on Caterpillar "U-actors and Sherman tanks converted to tractors, I still read "The Commercial Motor" from cover to cover every week. I have driven thousands of miles in A.E.C. Matadors while in the R.A.F., as well as doing fitting on vehicles of this type engaged on open-cast coal sites in Warwickshire.

Why I am writing now is to bring to your notice what I think is a mistake in the fitting of the Trakgrip tyres on the A.E.C. lorry illustrated on page 87 of your issue dated February 23. This Matador is stated to have been rebuilt by Scottorn, Ltd. Any of us in the R.A.F. who had fitted the tyres as illustrated would have been on a " fizzer,'' whilst in Ciiivy Street he would probably have had the sack.

If you look at the front wheels you will see that the off-side tyre is correctly fitted according to the maker's instructions, but that on the near-side is turned around so that the open ends of the V bars on the tread make first contact with the ground. Possibly this may have been done for some special purpose, but I notice that the near-side rear tyre of the vehicle is fitted in the normal way.

Tanawo rth. K. COOTE.R.

[We took up this matter with Mr. 3. V. Scottorn, of Scottorn, Ltd., and after investigation he discovered that this particular vehicle was sent to a local tyre dealer, and one of the tyres was incorrectly fitted. This happened just before the vehicle had to leave for a demonstration in London, and although the mistake was spotted there was no time available to remedy the error. Mr. Scottorn congratulates our correspondent on his powers of observation and, having himself served in the R.A.F. (M.T.), he is able to appreciate this keenness.—En.)

ANCILLARY USER WISHES TO HIRE VEHICLE MUE have been considering the question of hiring a " vehicle from a local haulier, to be operated for us under our own C licence, and would be glad to know how this would be affected by the regulations governing this type of operation.

Spilsby. C LICENSEE [There is nothing to prevent a C licensee hiring a vehicle from another operator, provided that it be driven by a person employed by the former. It should be noted, however, that the licensee is considered to be the person who employs the driver and, therefore, the vehicle will have to be licensed by the actual operator, A considerable number of vehicles is run • in this manner, the real owners merely maintaining them. You should apply to your Licensing Authority for a C Hiring Allowance t.. cover the vehicles you are likely to require at any one