How Closely Should Artco Members Work?
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Efforts to Extract Maximum Benefits from Co-ordination Without the Evils of Integration
HOW to derive the maximum benefit from improved co-ordination between members, without introducing the evils inevitable with total integration, was the main topic of discussion at the traffic managers' conference of Associated Road Transport Contractors, Ltd., held in London last Saturday.
In his introductory . remarks, the chairman, Mr. M. W. Harris (Burrows Transport, Ltd., London) made brief reference to the formation of Artco and of the difficulties of the nationalization period when the British Transport Commission at one time held 2,200 of the then 3,900 shares of Artco.
By a further purchase of shares by members still remaining in private enterprise, it was possible to avert the control of Artco passing to the B.T.C.
Today. Mr. Harris said. he looked upon Artco as a backward but, nevertheless, a revived baby, and by arranging for a revival of the traffic managers' conference the directors hoped to stimulate that personal contact between members which he considered to be the essence of their organization.
Air Freight
Looking to the future, he suggested that members might make increasing use of combining air freight destined for London Airport to avoid the high minimum air rates.
"Artco at the moment is comparatively ineffective: the turnover among members is insignificant," stated Mr. D. H. McVeigh in his paper on coordination. He thought that much of the £250m. of assistance granted to the railways by the Government "may go to squeezing rates below a level at which they are economic for either road or rail."
The first rule for the success of Artco was for the members to know each other personally, and Mr. McVeigh thought that benefits would be gained if members' drivers were also to become mutually acquainted.
Another important factor was the need for additional members geographically placed to add to the facilities of existing members and the prestige of the organization. The condition and appearance of vehicles. and n8 the personal appearance of drivers, were also important.
Responsibility for developing Artco was that of company directors, who should ask their accountants to prepare and supply them regularly with the figures for inter-trading between members. The figures would show each company's contribution to co-ordination and the benefits contributed by other members.
The problem of diverting vehicles to routes away from their home bases would always give rise to disagreements between members, especially when the local traffic position at either end was acute. Instructions to drivers should not only be clear, but given in writing. This allowed the owner to know what the driver was told to do, and avoided the possibility of misinferpretation of verbal instructions.
Competition Essential
Where branches of member companies were in the same area there was bound to be competition and the quotation of different rates. Mr. McVeigh thought that these were essential.
"We can never reach any stabilization on this particular problem without unduly interfering with the freedom of action of individual members," he observed. When members' interests overlapped, senior traffic officers should meet to discuss problems to eliminate uneconomic competition.
There was often a discrepancy in the basis of charging for the same service, particularly with smalls. It was too early to establish a standard rates schedule, but this should be done as soon as possible, so that staff at the originating depots could know the extent of their liability when they asked for service from a fellow member.
In the discussion that followed, Mr. J. McVeigh (McVeigh Transport, Ltd., Grimsby) said that co-operation between members was needed more than ever as a result of fuel rationing. So far Artco had done little, but he considered the future hopeful. Difficulties arising from " foreign " drivers' reactions to return loads could, he thought, be met by more specific traffic notes signed by the manager himself.
Mr. H. L. Walker (H. L. Walker, Ltd., Thornaby-on-Tees). speaking in support of every member of Artco retaining their individuality, said he saw a danger in co-ordination becoming rationalizaton. For him the problem was getting traffic for the vehicles rather than vehicles for the traffic.
Too Much Co-ordination
Many customers and drivers preferred private enterprise because they knew "the boss," but in his view complete co-ordination was incompatible with that element of private enterprise. If complete co-ordination was attempted in Artco, he thought they would create the very evils denationalization was intended to remove.
Regarding return loadings, he thought the " foreign " driver should be " captain of his ship" as to whether offered loads were suitable.
Introducing a new aspect in the discussion, Mr. F. E. Russett (Western Transport, Ltd., Bristol) felt that an operator ought never to be in doubt whether he could handle any traffic. By membership of Artco a nation-wide service could be provided, coupled with that personal attention which he considered private enterprise alone could offer.
Where members operated in the same area, whilst still retaining competitive commercial relations, he felt there might well be opportunity of comparing rates for common customers. He felt that denationalization had resulted in competition going from the sublime to the ridiculous.
In connection with rationing, Mr. A. Wallace (McVeigh Transport, Ltd., Manchester) pointed out that in some instances there had been a bias by customers against sub-contracting in the past, but he thought the present fuel crisis would be an opportune time to
break down that resistance, both with a view to fuel economy now, and to the established acceptance of sub-contracting after rationing is ended.
Mr. H. Wildman (Cusick [Oldham], Ltd., Liverpool) recalled how much empty running still persisted amongst Englishand Scottish-owned lorries on the main route north, to give only one example, emphasizing the need for such an organization as Artco.
He felt closer inter-company working needed more examination and recom
mended the appointment of a sub-committee for the purpose.
In closing the discussion, the chairman said that he considered the directors' decision to hold the conference was fully justified.
Regarding arrangements for interchange of traffic by other organizations, he considered that Artco had already gone some way in this matter, which could be done successfully, in his view, only by commercially operated companies as distinct from organizations.