Shape of the Industry to Come
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S.T .R.'s Friends, Bill and Charley, are given something Solving the Problems to think about, and Bill discloses a Few Secrets of a • of the Carrier Road and Rail Area Committee
TO commence this fourth article of the series concerning an argument with two successful hauliers, I have to admit that I had only a minimum of success in persuading my two friends. Charley and Bill, that stabilized rates for road haulage were practicable or, supposing that they came into force, that they would 'he regarded otherwise than as maximum rates, to be undercut by any haulier who could do so with any profit to himself.
They were equally emphatic that the proposals already discussed in this journal, that rates should be based on a mileage basis, were impracticable. The only practical way, they said, was to assess rates on a point-to-point or town-totown basis, taking into consideration the prospects of return. loads as a principal factor, as well as cost per mile to haul the traffic. As indicating their own, 'presumably, practical view, they instanced traffic from their own centre to Birmingham and to Carlisle, both 100. miles away. For traffic to Birmingham the rate, they said, should be 28s., whereas to Carlisle they would charge 50s, To and from Birmingham, they pointed out, traffic was heaq in both
directions and empty running On the Carlisle route there was little traffic and no return loads.
Neither of them, as a matfer of fact, had ever carried a load to Carlisle, nor had any intention of doing so. They , were of the opinion that the only • way to make money in this business of road haulage was to stick to routes on which return loads were ' frequentto the extent of one being available for every outward load. They had built delibusinesses upon that principle and had had all the success they desired.
When they were asked what would happen to such places as Carlisle if everyone took the line they had taken, they had no suitable reply. They had evidently not given any serious thought to that aspect of the matter, and clearly regarded it as something with which they were in no way concerned.
Suggestion of Subsidy Creates Alarm The suggestion that the Government might step in and solve that particular problem by subsidizing operators over poor routes by means of a fund derAred from a levy on operators on profitable routes, was met first by derision which, however, turned to alarm as its significance dawned uptin them.
" But that's nationalization," said Bill.
" It's rank socialism," cried Charley. " It's rieithee'nationalization nor socialism,' I said, " but if you fondly imagine that, after this war, the haulage industry is going to revert to the state in which it existed in 1939 you are very much mistaken."
" Do you think we shall have nationalization? " asked Bill.
".Not a complete form of it," I replied, and by that . I mean that, in my opinion, for what. it 'is worth, the Government will not attempt to nationalize the industry, either with or without the railways,. by taking complete control."
'"What makes you think that? ". asked Charley, hopefully.
"For one thing," I replied, "they are making such a muddle of the present experiment, the running of the Chartered. Fleet, that even the bureaucrats must be coming to the conclusion that road-haulage Operation is not quite so easy and straightforward as they thought. They will be afraid to tackle the road-haulage business of the country as a whole, lest chaos result and the blame for it be laid at their door.
"No," I continued, "I do not think we shall have nationalization, at least not for a long time to come, but I am sure that there will be some form of Government control of road transport when this war is ()Ver. That control will be devised to bring about the equalization of rate's and piofits in some way or another, thus rates over all routes will be computed on a mileage basis an'd the profits rationed amongst operators, so that those on poor routes shall be encouraged and traffic facilitated in all directions, irrespective of the probability of return loads being available.
" To put it another way; 'you have for years now been asking .the Government to recognize and acknowledge the importance of road transport, haven't you? "
• 'We have."
" Very well then. If the Government does accept that, 'it must inevitably take steps to ensure that everyone has sufficient road transport available to meet his reasonable requirements.
"The Government, once it has agreed that road transport is essential, automatically assumes the responsibility of seeing to it that Carlisle is not neglected in favour of Birmingham. .Steps must be taken to provide road-transport facilities, for all on a common basis of equality of rates .and charges, mile for mile and ton for ton." • "But,'" 'interrupted Charley, "you said the Government would equalize rates to such a degree that distance wouldn't matter, that it would establish some sort of universal scheme of agreed charges. To use your own words, you said that the carriage on a pound of apples from London to John o'Groat's would be the same as that from London to Wood Green. I don't see how that can be brought about without the Government taking control."
" I see no difficulty at all in doing so," I replied. " And Aid not say that was going to be done. All I said was that some such plan was in the minds of someoof those in Ministerial circles.
Controlled Monopoly May Come "Now what I was going to say just no'w was this. do not think we shall have nationalization, but I do think we shall have some sort of Government control or supervision.
" I think the industry will be regulated so that it becomes what could be termed a controlled monopoly with Government supervision." " And what, exactly does that mean? " asked Charley.
" Perhaps I can most easily explain by example," I said, " for there is already one in existence in the road transport industry in this country."
" London Transport, you mean," said Charley.
" The Northern Ireland Board," said Bill. "
" Neither," said I. " I :do not think either of those will serve as precedent for what, in my opinion, is the way in which the industry•will develop after-the war."
" But there is no other," objected Bill. " There is, you know," I replied, " but it is In the passenger-Carrying side, not goods. I refer to the British Electrical Federation, Ltd. That concern, through' British Electric Traction, Ltd., and a host of other companies, has almost a monopoly of big public-service operations,, excepting London Transport and those run by corporations and similar public bodies. It is, moreover, closely linked with the four main-line railway companies, in that many of its associated companies are part-owned by one or other of the railway companies."
" But it isn't in any way controlled," said Bill.
" It most certainly is," said I, " at least it is controlled tb precisely the same extent, and in exactly the same' way as I anticipate control will be exercised in relation to goods carrying by road when this war is over."
" How is it done, then? " asked Charley.
" Under the Road and Rail Traffic Acts," I said. "You ought to know that. It is controlled, by the Regional Transport Commissioners, as to the routes operated and fares charged. " In my opinion that is what will happen to road trans'29 port, There will be a certain amount of grouping, some merging, and so on. The result will be the formation of one or more large groups, similar to the B,E.F., with routes and rates controlled."
" Will it come all at once? " asked Charley. " No I don't think so," I said. " It has started already in so far as the grouping and merging are concerned. That process will continue, perhaps more rapidly, when the war is over, and then groups avid cogabines will agree upon rates; tteir routes were to some exterWontrolled, before the war, by the R.T.C.s. It remains only for the Commissioners to confirm the rates, and there you are." '
" %can't see it happening," said Bill. " You can't tell me that every little haulier is going to sell his business to a combine. I'm not particularly small, in the way of business, but I'm not going to dispose of mine. Where ' should I be without it? Even if I got enough for it to enable me to Ye tire, I've my lads to think about. When the war is over and they come out of the Air Force I want them to come in with me and build the business up."
Little Likelihood of Compulsory Purchase
"There's not the slightest need for you to be alarmed," I said. " There are still many bus companies operating outside the. REF. combination, and doing quite well thank you. I don't imagine that there will be Clempulsory purchase, at least not for a long while, but I do think that the practice I have outlined is fairly good, regarded as a prophecy"
Charley and Bill just looked at one another.
" Given you something to think about, have I? " I said. " Well just you think about it, but not now; some other time." We called Bill over to this conference so that he could tell us something about his Road and Rail Area Committee and its rates schedules.
" Come on Bill. What about it? "
" I'm sorry," said Bill, " but all this rates business is supposed to be in confidence."
"Confidence be hanged," said Charley. " You cut that out. There's far too much secrecy about these committees' doings. After all we elected you to that job and we've a rjght to know what you are doing."
"Well I don't know that I agree," began Bill, but I broke in.
" Now look here; if you start that argument we shan't get home to-night. Bill: can't you give us your own views on what is going on, without breaking confidence? "
'Tell him what you wero telling me," said Charley, " about classification, ohl and about those export rates, too."
" It's all right telling you," replied Bill, " but this chap'll put it in the old C.M.' and then where are you? " " Just where you want to be," said I. " The ' old CM.' as you call it, "exists mainly for ventilating subjects of interest to operators, and of all subjects, none is more interesting than that of rates.
"Come on now, what's this about classification? "
" Very well," said Bill, '' I don't think I shall be guilty -of careless talk ' if I say that I emphatically object to a classification of goods for road transport which is neither more nor less than a copy of the Railway General Classification. of Merchandise,
"The railway system of classification," he went on, "is no good to us at all. Value rarely makes any difference to our costs, but it's a principal factor in rail charges, "And bulk: that does count to a certain extent, but not to anything like as much as it does by rail. The generally accepted standard in road transport is 80 cubic ft. to the ton, and few traffics go outside it except, perhaps, textiles and hay and straw.
"Take goods" in barrels and casks. Given that these are not dangerous
liquids, such as acids and the like, -then ane"barrel is the same as another. It isn't on the railways, you know, on
which there are a dozen different categories." ' " The possibility of leakage in a mixed load, and damage to other goods, should be considered," I 'said.
'! At the most," he said, " we could guard against that in two classes.
" I've been looking into the classification of groceries lately," he continued. " There's a move on foot to persuada us to accept the railway classification for those, and 1 for one am not going to stand for it.
" Do you know," he continued, " groceries are divided into nine classes, goodness knows why. Half the stuff is in sacks, and the other half in casks, drums or tins. Two classes should do.
" What's the difference, 30 far as road transport is concerned, between glucose in casks and glycerine in casks? None at all, but one is in Class 11 and the other in 13. One is 385. 9d. per ton for a 200-mile haul; the other 45s. 1d., that is standard rates, of course. If you can get the higher rate, get it, but my point is that with all these classes—there are nearly 6,000 items in the railway classification—you are opening the door to rate-cutting.'
" What's your alternative? " I asked.
Limiting Number of Classifications " A classification of our own, based on conditions prevailing in our own industry, confined to no more than six or: at the very outside, eight classes," " That wouldn't help you at all," I demurred.
" Why not? " said Charley.
" Because " I replied, " you would still have your 6,000 items and would therefore need a book as big as the Railway Classification " " Nothing of the kind," said Bill. " My classification would be something like this: goods in cases, tins or barrels, one class; goods in sacks and cartons, another class; . • ."
" Wait a minute," I said, " you can't go on at that rate. Goods in sacks might mean on the one hand, iron castings or nails and, on the other, sugar or dried fruit. Yownight find yourself putting sacks of castings on the top iR sacks of sugar, with the result that you would have to meet some heavy claims on account of damage to the sugar."
" I don't see it," said Bill. " The fact that they are in the same class doesn't necessarily mean that they will be part of the same load, and even if they are, I can rely on every one of my drivers to pack them so that no damage will, result,
" No, I am quite sure that there should be no need to produce a classification like that of the railways, but simply one in which the nature of the package is indicated.
" I like your idea," I said, " but I'm afraid that you would find it very difficult to put into practice. However, I hear someone calling ' Time' and I do want to know what was the point about export rates you mentioned. Can you explain? "
" Easily," r'eplied Bill, " and it won't take long. The railway companies, for any traffic to a seaport, have two rates: one, which they call the ' export ' rate, is always much lower than the other, the town ' rate. For example, a certain traffic from here to Liverpool is 20s.' per ton export ' and 30s. per ton ' town.'
"-The committee has practically approved a similar schedule for road rates. Now that is absolutely ridiculous. Any road haulier will tell you that he
would rather have traffic for delivery in ' thetown than in the docks where, apart from the fact that he often has to pay for the privilege, his vehicles are usually held up for hours. In my view, if 30s. per ton is a fair rate to a haulier for town traffic, then he should get at least 35s. when he is concerned with traffic that is specifically called "export."
" Quite so," I said. " I must agree with you in the line of argument,that you take there.
" Welk thank you so much for all you have told me, for we have had a most interesting and, I hope, instructive chat. Good:
bye."