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Is the Time Ripe for
Page 85
Page 86
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RATE STABILIZATION?
POSITION UNFAIR TO TRADERS By E. B. Hutchinson
A"e present time anyone hay ing regular quantities of goods to distribute in this country will speedily have the most unique array of carriers by road, rail and water, at his door offering to convey them, mostly at different rates. The position of traders is simple in the circumstances. The goods transport market is pre-eminently the buyers. All carriers are competing against each other, not only on the service they can give, but on the price for conveyance.
The position is definitely unfair to traders. For similar traffic between the same points traders will be quoted at utterly varying rates by different transport concerns. Then again different firms may be quoted various rates for the same service. I know of a case where for the carriage of similar traffic IS firms in the same town were each charged a different rate. Such things are not fair and act as a barrier to stable trade.
To the carriers of every kind who for years have steadily and regularly reduced rates—not willingly or because costs were coming down, although this factor has helped to keep them going—but because of constant rate cuts by one or the other, the position is disastrous. For years these carriers have put up with this, each complaining in his own sphere of the other, without any sign of the commonsense one generally associates with business men.
The great railways foolishly think that by their great wealth and vast resources they will wear down and destroy the thousands of their tiny competitors, the water interests each try to hold their business at constantly reduced prices ; road transport, the new comer,. tries to find its true place and cuts rates in internal and external competition. Altogether a world of transport with DO leadership or sense of responsibility.
If this foolish orgy of uncertainty and constantly reduced prices for our commodity contributed to any one's real welfare there might be some reason for it, but it does not. Lessened revenues do not allow of the provision of the most reliable and efficient service.
In these circumstances the need for some sensible scheme for bringing these many competing interests together to talk sense is overdue, and one of the first matters to be dealt with must be to secure some basis by which the present Dutch-auction tactics regarding rates may be replaced by some kind of agreement between all parties which will impose reasonable control of a constantly changing subject.
A committee of the R.H.A. has long been examining this subject in all its phases and its recommendations should be a valuable and outstanding contribution to transport history.
TOO MANY CONFLICTING INTERESTS By E. Clifford
TVOU ask, "Is the time ripe for rate stabilization?" My reply is, " No! " Internally, the haulage trade is badly organized, and until a programme is formulated which will be accepted by the Ministry of Transport and enforced, there seems little hope. One very important item should be rate stabilization. This will never come by mutual agreement through any association ; there are too many conflicting interests to contend with.
Rate stabilization is a big subject, and many pages of your valuable paper could be utilized for its consideration. PRESENT RATES FAR TOO LOW By R. Barr
TAM a great believer in uniformity of rates for road transport, agreed by transport operators themselves first, and subject to ratification and co-ordination by the traders themselves in conjunction with roadtransport operators. I think one will agree that efficient service must be paid for and profit received.
As a matter of fact the questions of wages and drivers' hours, together with the ridiculous back-axle weight of 8 tons [There is a hope that this may be raised to 9 tons.—En.) on a four-wheeled vehicle constructed before the Act, is having a severe effect on the transport industry as a whole.
Road-transport rates in the main are much too low to be able to give men the wages that are now demanded. As a matter of fact when they do become operative, a large number of firms will be forced out of the industry unless some agreed rates are settled quickly. I, personally, do not want to see a repetition of monopoly in the goods transport industry similar to that which has taken place on the passenger side. I am of the opinion that if the hauliers themselves do not move quickly and obtain an increase in rates, the new rates of wages will destroy the foundations of the road transport industry.
A tremendous pressure is being brought to bear at the present time, through the National Conciliation Board, to speed up the question of grading, which, in my opinion, is the most grossly unfair thing that has ever been presented before an industry. In Yorkshire the rank and file of the haulage contractors have been dictated to by a small body of employers who have not had to put before the members of their Association the question of grading, whether it be acceptable or otherwise—this is creating grave concern in Yorkshire. The only Association that has taken a bold step and stood firm on the present condition of wages, is the Yorkshire Stage Carriage Operators. This has taken the proper course and consulted the rank and file of the Association, and the vote is unanimously against the conditions of the National Conciliation Board.
I consider that before these conditions can be met, rates must be increased, especially on local services, by at least 25 per cent. In most cases and on long-distance traffic there is still plenty of room for improvement.