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Break contract to get grant, US firm told

2nd December 1966
Page 63
Page 63, 2nd December 1966 — Break contract to get grant, US firm told
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Which of the following most accurately describes the problem?

EMERY Air Freight Corporation, the American international air cargo forwarder and one of the largest agencies of its kind in the world, was told by the West Midlands Licensing Authority, Mr. J. Else, sitting in Birmingham last week, that if it wanted a one-vehicle B licence, it must break a contract with United Service Transport Co. Ltd., of London.

The inquiry was told that Emery's Midlands traffic was handled by three vehicles all hired from United Service. Two, which were on a five-year hire contract, handled local pick-ups and drops to and from Birmingham airport, and a third did some local pick-ups but also took consignments to catch flights from London and Manchester airports.

It was this third vehicle for which Emery sought a licence to ensure complete control over it. Mr. Else said he was puzzled by the fact that two vehicles licensed in the Metropolitan area should be spending all their time in the West Midlands, and asked a member of his staff to obtain details of the licence concerned.

Later he announced that his information was that United Service had only one licence in the Metropolitan area—an A licence listing 318 vehicles with a normal user which amounted to general goods, mainly Landon and Home Counties, but occasional longer journeys. "I hardly think Birmingham can be considered to be in the Home Counties," he remarked. The applicant could not be blamed for the situation as it had taken reasonable steps to try to ensure that the vehicles were appropriately licensed.

Mr. Else was prepared to make a grant provided the applicant broke its agreement and hired a vehicle from one of the objectors, A. Neely Ltd., Roy Bowles Transport Ltd., F. V. Carroll Ltd., or Ansell and Spiers. The condition sought should be altered to read: "Collection and delivery of goods, for which the licensee has arranged transportation, within 50 miles of Acocks Green, Birmingham, and to and from London and Manchester airports."

The hearing was adjourned to enable Emery to make the necessary arrangements. Mr. Else said that if the negotiations provided satisfactory he would make a grant in office, but reserved the right to relist the case if necessary.

Mr. J. M. P. Alexander, Emery's UK general manager, said one of the problems behind the application was the continual late arrival of an Atlas Air Services vehicle at London Airport which resulted in urgent consignments missing flights. The vehicle was late on half 'of 130 trips to London in six months. Since the vehicle had been hired from United Service this had not happened.

Another major factor was that the corporation wanted to employ its own driver. There had been complaints of drivers hired with the vehicle being unhelpful. And the driver should be an ambassador of Emery who has more contact with clients than even the sales staff. The driver he intended to employ would be a highly-paid member of the staff.