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THE CALL FOR FREIGHT EXCHANGES.

28th October 1919
Page 2
Page 2, 28th October 1919 — THE CALL FOR FREIGHT EXCHANGES.
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Which of the following most accurately describes the problem?

The Views of the Road Department of the Ministry of Transport.

IN ORDER TO ascertain the views of the Ministry of Transport upon the question of the establishment of some official organization, by the Ministry or under it, for the co-ordination and even the initiation of freight exchanges, we sought an inter view, just previous to going to press, with the responsible officials and learned that individual enterprise is regarded as offering greater advantages at the moment.

" We feel," said our informant, " that there is great scope for a large number of freight exchanges, forined wherever the size of an industrial centre is such as •to warrant one. But the matter, in every case, is one for private enterprise and for the employment of private capital. "The Ministry of Munitions has had experience of the working of similar scheines in three important areas—Birmingham, Manchester and Leeds, and, making full allowance for the fact that it was difficult to get at the costs of a 'Government department, it was found i that a commission of from 5 per cent. to 10 per cent. on the freight charges amply covered the costs of working.

"No official exilerience has been gained outside of the big industrial centres, but, in my opinion, an ad dition of 10 per cent. to the freight would result in a better interweaving of the vehicles and the loads that are offering. • "As you doubtless know, at the present time the loads offering far outweigh the available vehicle capacity and well-managed schemes should have a Very fair prospect of guccess.

" With regard to the co-ordination of the efforts of a large number of isolatbd freight exchanges, it is not considered in the Ministry that any active official steps are necessary or should be taken. This department is prepared to give any information for obtain ing which the Ministry of Transport may 'be in a favourable position, and it will give any possible help and guidance, but the conviction is strongly held by us that this is a matter for ordinary commercial enterprise.

"A Government department, in attempting to run a large organization of this kind or to assist in coordinating the work of a number of smaller ones, could not accept the same risk and responsibility that a business concern could. It would be com pelled to act more slowly—to play for safety—and any scheme of the kind calla for quick action, for enterprise and for a readiness to accept a certain amount of risk, if success is to be assured. Besides, extra business of an easy character not ordinarily falling within the scope of a freight exchange would result from satisfaction given in the management of difficult transactions.

el.6 " After all, this is essentially an operation matter, equivalent to the control of the wagons employed on the railways. It would seem that the hauliers, through their associations and acting in co-opbration with the Chambers of Commerce, should get together to .formulate some simple practical scheme or series of schemes.

"This question is not going to end in the opening of an office, with a card index. Ultimately it will embrace a warehouse and a clearing house.

"The warehouse is an essential attribute of a developed scheme. It may be run by the carriers for the receipt of goods for distribution: it might be the enterprise of "a group of manufacturers or tradespeople or it might be conducted by a separate warehousing undertaking. It is difficult, in these early days, to say which is the best.

"So far as the clearing house is concerned, there are enormous possibilities for securing economy. It would not be necessary for all the consignments to pass through the warehouses, because many loads could be taken direct from point to point, thus saving time and handling.

" The manner of collecting the charges is really the, key to the selection of the method-, and in many cases the responsibility for the complete enterprise would seem to fall naturally upon the haulier. But, if there is a central organization or clearing house, besides the levying 4) f charges on the .consignors;' a charge for commission must be levied on the carriers.

"With regard to the sphere of operation for road transpOrt it is, obviously, difficult to give figures that can be applied generally, but it is the impression in the Road Department of the Ministry, from the figures in its possession that the economic limit of haul for motor vehicles should be put at something under 50 miles. But, where speed of delivery, and the minimarn of handling come into consideration, this limit may be materially extended. The department has some useful statistics in this connection which it is prepared to place at the disposal of any organization seriously interested.

"With the raising of the railway rates, which must inevitably follow upon the deliberations of the Rates Advisory Committee, of which Mr. Gore-Browne, K.C., is appointed chairman, the limit of economic haul upon the road will be greatly increased. The general assumption as to the amount of this increase of railway rates, if one may judge from what has appeared in the Press, is about 50 per cent.

"The attitude of this department is strongly to favour the establishment of freight exchanges which will serve to diminish light and empty running, thus materially assisting the country in its present transport stringency."


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