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OPINIONS and QUERIES
Page 95
Page 96
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Jealousy the Cause of Rate Cutting. Accidents Result from Low Wages. Our Tables Always of Assistance How to Quote for Bottle Transport. Depreciation and Income Tax. Limited Companies and Court Cases
Why Rate Cutting Occurs.
The Editor, THE COMMERCIAL MOTOR.
[3043] Sir,—Your correspondent "Driver of Heavies," in your issue dated January 12th, expressed his views on the matter of haulage contractors economizing by the reduction of wages, etc.; his views are, perhaps, correct in some cases, but probably it cannot be helped by his employer, who is not unlikely being undercut by a supposed friend. The following is an example :—Mr. X, who is a business man with a life experience of haulage, carries out a certain job, perhaps one amongst scores, and employs, say, about 20 men.
Mr. Z, who is fresh tohaulage, comes along with a lorry and knows no more about tendering than the lorry itself. He is employed for thimparticular job by Mr. X, who is possibly busy. Then Mr. Z gets jealous, and, instead of wanting a slice, wants it all.
This Mr. Z gets the business by quoting an unfair and ridiculous price. That means a loss of, say. £30 a month to Mr. X, consequently he has to sack two men or reduce their wages.
It is a well-known fact that many big firms or companies will carry out a job at a loss rather than let a small firm get in. If they work at a loss someone has to suffer.
Every man has a chance of building up a business, but if he cannot do so without unfair or dishonest means he is unworthy of any sympathy. There have been numerous letters regarding undercutting in your valued journal, but they seem of no avail, and unfortunately I am in the position of "Driver of Heavies" and am powerless to alter it, BRITISHER. Devon.
Low Wages a Cause of Accidents.
The Editor, THE COMMERCIAL MOTOR.
[36441 Sir,—The letter from "Driver of Heavies" published in your issue of January 12th appears to me to be full of sound common sense. Personally, I am not connected directly with the haulage business, but I find your journal extraordinarily interesting, as I am a motor insurance official.
The particulars stated in your correspondent's letter are borne out by the experience of insurance officers as regards accidents. When drivers are well paid it is a striking fact that, as a general rule, the number of accidents is very much less than when the reverse is the case. I could quote several cases where haulage contractors with fairly considerable businesses have employed drivers at low rates of wages and, owing to exceedingly bad claims experience, are now finding it difficult to place their insurances, except by bearing a large portion of each loss.
One cannot blame insurance companies, for no trading concern will carry on a contract at a steady loss. Perhaps the drivers of the vehicles are to blame,
because there is no doubt but that their carelessness in driving and negligence in maintenance work is responsible for some accidents, but surely the employer is the one mostly at fault? A driver not receiving adequate wages is naturally disgruntled and fails to take much interest in his employer's work.
It may be pointed out to employers that a well-paid driver tends to keep the number of accidents low, and even if damage to vehicles be covered by an insurance policy every employer knows that heavy losses to his business are likely while the vehicle is undergoing repair.
Economy in wages is dangerous ; it lowers the morale. No haulage contractor at the present time can afford to ignore danger signs.
Manchester.
Our Tables Help Hauliers.
The Editor, THE COMMERCIAL 1VIOTOR.
[3645] Sir,—I have received with the greatest pleasure your Tables of Operating Costs, also your information regarding clearing houses.
I thank you very much for the trouble you have taken and wish you to know how very useful these figures will be to us, not only now, but throughout all our record-keeping operations, when adjusted to our special conditions. It. E. MOBERLY. For the Bournemouth Express Delivery Co. Bournemouth.
The Transport of• Glass Bottles.
The Editor, THE COMMERCIAL MOTOR.
[3646] Sir,—As a regular and appreciative reader of your journal, I am approaching you with a matter upon which I desire your expert advice. I have been asked by a firm of glass-bottle makers to quote for delivering 8-ton loads to Birmingham, Chichester, Bournemouth and Brighton, this to include collection of empty cases lying at the respective customers' establishments and returning these empties to the bottle works, which are situated about two miles from Wembley.
I would undertake the work with a Leyland 36-40 h.p. vehicle that I am now using in connection with my haulage business. It is capable of carrying 8 tons and has a body 15 ft. 9 ins. by 7 ft.
I will be glad if you will give me an idea of how to charge for this particular work and at the same time reap a reasonable profit. I may be called upon to do two or three journeys one week and perhaps only one the next, so I cannot give you a weekly mileage for
the job. BOTTLES. Wembley.
[The best way to calculate your charges is on the time and mileage basis. I think that, if you do not need to provide a mate for the driver, then you should be able to make a moderate profit if you charge at the rate of 9d. per mile
and £2 per day, adding to that, say, 5s. on those occasions when it is necessary for the driver to stay away from home.
1 calculate the mileages as follow :—The distance to Brighton is 61 miles, to Birmingham 104 miles, to Bournemouth 113 miles, and to Chichester 71 miles. I take it that the Birmingham and Bournemouth journeys will at least break into two days, and should be charged accordingly, and that, barring unexpected delays, the others will be completed in one day each.
On that basis you should get at least £6 us. 6d. to Brighton; £12 to Birmingham; in 15s. to Bournemouth ; and £7 6s. to Chichester.--;S.T.R.] Assessing Depreciation for Income-tax Purposes.
The Editor, THE COMMERCIAL MOTOR.
[3647] Sir,—I have been assessed unfairly by the income-tax authorities, and I should be glad if you would give me the depreciation figures for a Ford 1931 30-cwt. truck and two 1926 1-ton trucks. HAULAGE.
-Biggleswade.
[The depreciation figures for your motor vehicles depend mainly on what you paid for them and when you paid it. Assuming, for example, that the 1931 Ford was bought on April 1st this year and cost you £200. The depreciation during the current year, that is, until April, 1932, -will be 20 per cent. of £200, say £40. If you have not had it so long the amount will be less in proportion, and, similar]y, if you bought it earlier than that and -wish to know the depreciation up to April of this year, the amount is 20 per cent. per annum.
Taking an an alternative example one of your 1926 1-ton trucks If you bought it second-hand for £50 at the beginning of April, 1930, the depreciation account to April 1st, 1931, would be 20 per cent. on £50, which is £10. Its e'ralue then, for purposes of calculating depreciation, becomes 140, and the depreciation for the current year, that is to say up to April, 1932, will be 20 per cent. of £10, which is £8.
If you would like to write again and give us more precise particulars of your purchases, date of purchase and price paid, we can give you more exact replies to your questions. —En.]
Representation in Court of a Limited Company.
The Editor, THE COMMERCIAL MOTOR.
[36481 Sir,—We attended Lambeth Police Court recently to defend a charge under the Road Traffic Act and our manager was not allowed to make any statement, but was told that only a solicitor could speak. The case was adjourned, and we should like you to Inform -us whether, if the secretary or a director attended court, he would be allowed to speak on behalf of the firm.
We may say that other courts that we have attended have not raised any objection against our representa tive speaking. STAR. London, S.E.S.
[The legal position is that a limited company is only entitled to be represented in court by a solicitor.
As a general rule, magistrates will listen to any explanation u hich is made by a representative of the company, such as a director, secretary or foreman, but they are not obliged to do so and usually refuse when the ease is to be
• contested.
The secretary or a director would be in no better position than a manager.—ED.3 Carrying a Football Team in a Lorry.
The Editor, THE COMMERCIAL MOTOR.
[36491 Sir,—Being a regular. reader of your journal for the past two years and having been greatly assisted by your valuable comments on general haulage, would you be kind enough to help me in the following contract?
I own a 30-cwt. Morris-Commercial lorry, with which
I do general haulage. I garage at my smallholdings at a village outside the town.
The village football club has approached me with E38
the contract fo take the team to away matches. Am I allowed to-take the team with my present licence and full comprehensive policy? If not, what would be the cost of the extra licence and insurance?
The average mileage would be about 30 per journey, for which the club offers to pay Li 10s., there being 16 or so journeys. This happens after my week's work
is finished, namely, Saturday afternoons. TEAM. Northampton.
[Regarding the proposed transport of the football team, the payment of a 'limp sum for the job makes the vehicle a contract carriage. It will, therefore, be necessary for you to obtain a public-service-vehicle licence (£3) and a certificate of fitness (£3). Application should be made to the Area Traffic Commissioner, whose address is Vernon House, Friar Lane, Nottingham.
With regard to the question of costs, you will see from tha Tables of Operating Costs that the rate of Is. per mile is suggested as a minimum paying charge for a 30-cwt. vehicle which is doing 300 miles per week. This, of course, does not take into account the need for obtaining the licences to which we have referred. Therefore, is. per mile will scarcely pay you in the circumstances, unless your weekly mileage is in excess of 300, and always providing that the rest of the work during the week is being done on paying basis.—S.T.R.] Carrying Excess Passengers.
The Editor, THE COMMERCIAL MOTOR.
[3650] Sir,—As a regular reader, I should esteem it a favour if you would advise me as to whether I am in order in : (1) My interpretation of P.S.V. Regulations—Equipment and Use (No. 2), July 4th, 1931, Part 2, Clause 14, in allowing, during hours of peak traffic, four standing passengers in a 16-seater bus, with a conductor.
(2) Would it be meeting the Ministry of Transport Regulations as above if the conductor be only carried, during peak hours, or whether the conductor would have to be carried during the whole period that the bus is in service. E. OSBORN. Gosport.
[We agree with the view expressed in your letter, that where a conductor is carried four standing passengers are allowed to be conveyed in a 16-seater bus during the hours of peak traffic.
In our opinion, additional passengers may be carried in accordance with the regulation you mention, so long as a conductor be carried during the peak hours. We believe that it is not necessary for the conductor to be on the vehicle at all times, provided the seating capacity does not exceed 20, in which case Regulation 15 applies.—En.] Licensing for Petrol Storage.
The Editor, THE 'COMMERCIAL MOTOR.
13651] Sir,—Can you give me any information on the following point? I store petrol for my own use in a 500-gallon underground tank, with a Bowser pump, and do not resell it. The local authority demands 10s4 licence fee, but I have always understood that I was not liable for this.
Congratulations on your excellent journal, which I would not miss each week for double Its price.
Rainhill. H. P. RIPPON.
[The general rule as laid down by the Petroleum (Consolidation) Act, 1928, is that petrol may not be kept except under 71 licence from the local authority.
The Act authorizes the Home Secretary to make special regulations in respect of petrol kept for use on motor vehicles and provides that where petrol is kept in accordance with the Regulations the licence of the local authority is not required.
The Petroleum Spirit (Motor Vehicles, etc.) Regulations, 1929, apply only where not more than 60 gallons of petrol are kept in any one storage place. In all other eases, the licence of the local authority is required. The fee for a licence varies according to the quantity of petrol which is stored. If the amount exceeds 100 gallons, but does not exceed 500 gallons, the fee is 10s.—En.]