The R.H.A. Annual Congress
Page 46
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The Principal Activities of the Association Summarized and Exemplified in a Series of Four Interesting Discussions
MHE first annual congress of the Road Haulage Associa tion exemplified, in its choice of subjects for discussion, the principal activities of the Association. The subjects were : "Membership and Means to Increase," introduced by Mr. Frank F. Fowler ; "Rates and How to Improve Them," by Mr. J. S. :sTicholl ; "The Industry's Propaganda," by Mr. R. W. Sewill, and "clearing Houses," by Mr. W. Donaldson Wright.
Mr. Nicholl introduced his subject by pointing out that, although rates were not the sole consideration of trangport operators, in the beginning at least, rates had been a potent influence in attracting traffic to the road haulier. That traffic, however, must obviously be useless if carried at rates so low as to bleed the industry. They must afford a margin for stability, must allow of the abandonment of obsolete vehicles and of research work to be carried on, so that the industry can be kept up to date. That margin has not been available for some time.
A. feature of the road-haulage industry was that it consisted of so many small units. That, was an advantage in so far as it facilitated personal contact between haulier and clients ; it gave the industry elasticity, strength and vitality and was well worth preserving on that account.
No Control of Rates.
There were, however, disadvantages. There was no control of rates and if was easy to play one haulier against another. The haulier was responsible, but not necessarily blameworthy. He was forced into the position he now occupied by the necessity for self-preservation. There was no easy cure for the disease. A slow process was the only practicable suggestion that he could make. It had been suggested, he said, that schedules of road haulage should be drawn up, along lines similar to those prevailing in connection with rail-borne traffic. In his view, that was impossible. The schedule would be hopelessly unwieldy and would be difficult of enforcement.
Two outstanding causes of rate-cutting were shortage of ready cash on the part of the needy owner, and the habit' of the ancillary user of cutting into the freight market.. The passing into law of the Road and Rail Traffic Bill will affect the situation and improve matters. It will, said Mr. Nicholl, standardize conditions of working and rates of pay, and it will give control over new entries into the industry and over the ancillary user. That, and the agreement with clearing houses which the Association had just coneluded, would go a long way, in his opinion, towards facilitating the stabilization of rates at an economic level.
Practical Efforts to Help the Industry.
Practical ways that the Association would, with the co-operation of all its members, be able to adept were to increase membership and to inaugurate a -system of intensive education with regard to costs, and the adoption of common standards as widely as possible, particularly in respect of such matters as rate variation with load increases, volumetric loading, decisions as to which goods should be packed before acceptance and areas over which free deliveries can be made. The speaker emphasized the importance of making a start, and suggested the wisdom of groups of hauliers, operating over the same route, getting together and agreeing upon rates over that route. A discussion followed.
Mr. Frank F. Fowler introduced his subject by remarking upon the rapid rise in membership, from tuider 400 a year ago to 2,000 to-day. The latter number, he said, represented 30 per cent, of real professional hauliers. The Associatien had three national organizers fully engaged upon recruiting. He suggested the formation, in each area, of membership sub-committees, which should devote themselves whole-heartedly to this business. They should make a point of going into the small villages and not confine their efforts to the large towns. Most members considered that the most important work for the Association was the stabilization of rates, but for that problem to be tackled effectively the membership must be large.
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In the discussion that followed, a suggestion that members of the Association should, in sub-contracting, give preference wherever possible to members of the R.H.A. was well received. It was also suggested that members should help other members in difficulty. The utmost advantage should be taken, in recruiting, of the threat which the Bill held.
Before the formation of the R.H.A., said Mr. R. W. Sewill, there was no one to reply to the railway propaganda, which omitted no opportunity of vilifying the road transport industry. The Association started its propaganda a year ago. Letters were sent to the daily newspapers and, at .first, were usually ignored;, that attitude modified as the result of efforts of the R.H.A. It should be realized that the Road and Rail Bill is not the end of the railway companies' efforts. Their propaganda must be met. The Association, working in conjunction with the British Road Federation, is meeting it by pamphlet and newspaper propaganda. An official propagandist was engaged to keep a watch upon the Press and reply to all letters inimical in tone. Local Chambers of Commerce should be approached. Their members should be made to realize that heavy taxation and repressive legislation directed against road transport will touch their own pockets. Mr. Sew-ill stressed the import-. ance, in all propaganda, of keeping strictly to the truth.
The Need for Propaganda.
Several suggestions arose in the discussion that followed, and Mr. Nicholl, in showing the necessity of propaganda, referred to his own personal experience when giving evidence before a House of Lords' Committee which was considering Lord Danesfort's Bill. In giving evidence, he referred to the fact that a Bill (the Road and Rail Traffic Bill) was, at that moment, going through the House of Commons. Of the seven members of the Committee, five were unaware of the existence of that Bill!
It is even easier to start a clearing house than it is to begin business as a haulier, said Mr. Donaldson Wright. The principles underlying the formation of all clearing houses are good, hut, in practice, many of them fall short. The practices of " salting" haulage rates, taking full charges from the trader, but bargaining with the haulier, are rife amongst too great a proportion of these clearing houses.
Mr. Donaldson Wright referred to the setting up of a committee of inquiry, in 1930, with the object of advising the Royal Commission on Transport as to the position of the long-distance haulage industry. (Readers may remember that Th,e Commercial Motor was responsible for calling this . committee together.) That committee tendered evidence concerning the operation of clearing houses. The Royal Commission 'reported that the clearing-house problem would settle itself when the road-haulage industry was organized.
R.H.A. and Clearing Houses.
'rhe R.H.A. gave attention to this problem immediately on its formation. An agreement has been drawn up and came into force yesterday (June 1). This agreement embodies conditions of service, rates of commission and certain methods of pre-payment. It is anticipated that, as the R.H.A. becomes more powerful, it may he that clearing houses, registered with the R.H.A., will employ only members. Clearing houses, in the opinion of Mr. Donaldson Wright, should not be in a position to compete with hauliers. They should take traffic which is offered tothem and pass it on to the haulier. In particular, the houses should provide for the handling of less-than-vehicle-load traffic.
In conclusion, Mr. Donaldson Wright stated that the Ministry of Transport is interested in the R.H.A. clearinghouse agreement. He believed that the reason why the clearing houses had no reference in the Road and Rail Traffic Bill was that the Minister knew that the R.H.A. was dealing with the problem in a satisfactory way.
In the coarse of the discussion Mr. Sewill disclosed the interesting information that Thos. Tilling, Ltd., had established redistributing depots in various centres aid that the services of local hauliers were being utilized.