Shropshire A.R.O. Welcomes S.T.R.
Page 43
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tJNFAIR methods of competition by the railways, and an undoubted weakness in the application of the Road and Rail Traffic Act, were, the principal matters of discussion at a meeting of the Shropshire Sub-area of the West Midland Area of A.R.O., held at the White Hart Hotel, Shrewsbury, on Thursday of last week. The principal speaker was S.T.R., The Commercial Motor costs expert. Mr. J. Thurin was in the chair and was supported by Mr. Loosemore, Mr. Newbrooks and other prominent members of the haulage industry in the country.
S.T.R. dealt with the principles of costing, having in view the need for a sound basis for assessment of rates. He pointed out that the haulier's principal item of expense was vehicle cost and that unless the figures for that were comprehensive, as well as accurate, the basis of the rates structure would be unsound and the probability of arriving at a satisfactory schedule of rates would be remote.
In the discussion which followed, it was clear, that those present were unanimously agreed that the figures put before them were accurate and that for reasonable minimum earnings, their vehicles should produce the revenues set out by S.T.R. The difficulty in the way of obtaining that revenue was principally unfair competition by the railway companies, who did not hesitate to cut rates without regard to the economic aspect of the matter, having merely the object of ousting the haulier.
It was agreed that rate-cutting by individual hauliers ought to, and usually did, end in the elimination of the cutter. Unfortunately, it still appeared to be comparatively easy for someone else to take over businesses made derelict in this way, and to continue to operate them on similar lines.
Some figures were produced, relating to rates for milk haulage and showing that the Milk Marketing Board was intervening to reduce rates without giving the haulage contractors concerned a fair hearing,
Mr. Loosemore, in proposing a vote of thanks, referred to the fact that it was not by any means the first visit that S.T.R. had made to the area. He hoped he would come again and frequently. It was disclosed that direct benefits had previously accrued, as the result of S.T.R.s addresses.