£150,000 Scheme for Meat Haulage
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M.T.O.L. Prepare Plan for New Company to Take Over When Meat Rationing Ends: Hauliers Invited to Subscribe £150,000 Capital at 5 Per Cent. Interest A PROPOSAL for the formation of rta new E150,000 co-operative enterprise to succeed the Meat Transport Organization, Ltd., when meat control ends, is being canvassed all over the country. The first meeting with provincial operators took place in Nottingham last week. The scheme was explained to Newcastle-upon-Tyne hauliers last night and there will be a meeting in Leeds tonight.
Others have been arranged as follows: Reading, April 13; Liverpool and Manchester, April 14; Cambridge, April 21; Birmingham, April 22; Cardiff, April 23; Bristol, April 24, and Perth and Glasgow, April let Two meetings have still to be fixed in the south-eastern area.
Two Years' Trial
The new scheme devised by the board of M.T.O.L. would operate for two years and then, if its continuance were no longer justified, the company would be wound up, or its functions modified. Consultations have taken place with the Road Haulage Association, but the Association have not committed themselves to support the scheme.
Members of the livestock functional group of the R.H.A. met M.T.O.L. a fortnight ago to discuss rates. Another meeting with the Association took place on Tuesday to discuss rates for the transport of pigs. The sponsors of the plan hope that joint committees will be set up by M.T.O.L. and the R.H.A. to agree rates in the areas and to discuss matters of policy at national level.
The organization would remain a co-operative, rather than a profitmaking, body, but as its outgoings would not be reimbursed by the Ministry of Food, it would require working capital. It is estimated that £150,000 would be needed. "This is not large in relation to prospective turnover, which is at present over £6m. per annum," say M.T.O.L.
£200,000 Authorized Capital
The new concern would have an authorized capital of £200,000, of which £150,000 would be issued. An issue would be made at once of 100,000 A shares of £1 each, half of which would be subscribed by livestock carriers and the other half by contracting meat carriers. A further 50,000 B shares of £1 each would be subscribed by the chartered operators.
Livestock carriers participating in the scheme would be required to take up a minimum of 50 A shares and contracting meat carriers, because they are fewer, 75 A shares. Chartered operators would have to take up B shares on an agreed basis related either to their payload capacity or to their basic marginal payments. The remaining 50,000 shares would be held in reserve.
A shares would carry a minimum dividend of 5 per cent, and a maximum
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of 71 per cent. Holders of B shares would receive a fixed dividend of 5 per cent.
A and B shareholders would each have an equal number of representatives on the board, apart from the chairman. The company would be divided into three sections—livestock carriers, contracting meat carriers and chartered operators. There would be a separate committee for each section.
Administration costs, which last year amounted to £182,000, or about Is. per ton carried, would be separately assessed for each of the sections.
Livestock and contracting meat carriers would be paid for work done and to meet their share of administration and other costs, 10 per cent. would be deducted from payments. If this amount were found to be too large, it would at once be reduced.
Chartered operators would depend for their remuneration mainly on the financial results of the chartered fleet as a whole. It is proposed that 10 per cent. of all charges for freight carried on chartered vehicles should be credited to the operators concerned. Apart from this, they would be paid pro rata to their marginal payments. The more traffic a chartered haulier carried, the more he would earn.
It is not proposed to disturb the existing method of payment for the time being, but if a better system could be devised after the new company had been set up, it could be inaugurated.
Contracting meat carriers would be required to undertake not to carry meat otherwise than for or With the consent of the company. Operators generally would be expected to pass surplus traffic to the company for the benefit of fellow members and of themselves as participants.
Revenue Disposal After providing for administration costs, development and contingencies, the net revenue would be distributed in the following order: (1) Payments to chartered operators in respect of variables (wages, fuel, etc.). (2) Payment of 5 per cent. on the A and B shares. (3) Marginal payments pro rata to chartered operators. (4) Distribution of the residue (a) to chartered hauliers pro rata to their marginal payments and (b) by way of an increased dividend on the A shares up to a maximum of 7+ per cent. All surplus funds would be returned to operators.
All operators who participated in the scheme would have to enter a two-year contract. The terms of agreement have not yet been finally drafted.
M.T.O.L. state that although operators would retain their identity and • freedom, they would benefit from the activities of the company, which would reduce empty and waste running. Livestock and contracting meat carriers would receive prompt and regular payments.
Rate Fixing
Rates for meat contract work would be fixed by the company after consultation with operators and customers, and would vary according to local conditions and customers' requirements. Livestock rates would be governed by a schedule.
Reduced prices for petrol, tyres and other commodities could be obtained, and legal and technical advice could be provided for members.
National marketing organizations are to be set up to take over from the Ministry of Food. The National Farmers' Union will be one of them. Others will deal with home-killed meat and with offal. M.T.O.L. believe that these marketing organizations will require a transport service that could be operated only on a national scale and that if it does not reach their expectations, they will buy their own vehicles.