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THE MOTOR HAULAGE INDUSTRY IN ITS LATEST ASPECT.

3rd May 1921, Page 2
3rd May 1921
Page 2
Page 3
Page 2, 3rd May 1921 — THE MOTOR HAULAGE INDUSTRY IN ITS LATEST ASPECT.
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Which of the following most accurately describes the problem?

WITHOUT being unduly pessimistic, one might usefully devote a few moments' attention to the causes underlying the exit of a. number of smaller firms from the Motor transport industry.

One of the first essentials in the make-up of the successful business man is his ability to face facts fairly and squarely, and, in spite of all apparent difficulties, to steer a course which will land him on an envisaged shore of prosperity.

It is not an entirely fortuitous happening that, whilst some business enterprises are wrecked in the shallews of trade despondency, others survive, and, immediately a revival sets in, plunge, forward again as if they were simply waiting for the opportunity of reasserting themselves.

Repeatedly have warnings been given in The 06

Commercial Motor of the pitfalls which-besot those whe have embarked upon motor haulage with visions of an El Dora-do looming ahead; Of the imperative need for ascertaining actual running wets; making proper allowances for depreciation and establishment charges ; developing a clientele instead of paying commissions to obtain loads, and so on ; all with the view to impressing upon enterprising individuals and' companies the making of provision for lean tunes.

Anyone who has watched, particularly during recent months, the movements of the motor haulage . industry, must have notieed the working out of a certain selective process, as a result of which some firms of motor owners have gone out of business. For those concerned this has been, in some instances, distinctly unfortunate; but, viewed in the bigger aspect af efficient national road transport service, the elimination of factors which have not survived the test of their fitness to continue, must, in the long run, be to the advantage of those that have. When the wheels of industry were revolving at high speed and inexperienced but budding haulage contractors found they were "making " so many pounds a week " profit " owing to the quantity of traffic available, little didmany of them think that the " prosperity " they were then enjoying actually stimulated the competition in cut-rates that was (heir ownaundoing. The Taws of cause and effect operated with a discriminate ruthlessness, and it is the exercise of a wise provision, rather than a mere 'stroke of luck, that has saved many concerns fro:in an unenviaale fate.

It would require more optimism than we possess to say that this selective process has spent its fury. Even old ,established firms speak cautiously. They have suffered from lack of business during the last few weeks. As the principal of one companyaales Oared to us lately : "He would be an audacious prophet who would say that the motor haulage industry has passed its worst phase. As things are at present, I understand that even some of the bigger firms are feeling the strain, and, if it. continues, I feel that whilst the smaller concerns mill suffer still more, the bigger ones, by virtue of their greater resources, stand to beneftt very considerably in the end."

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