MOTOR MERGER

Hokitika Guardian, 13 September 1937, Page 6

MOTOR MERGER

FIVE WEST COAST COMPANIES. (Per Press Association—Copyright). CHRISTCHURCH. September 10. The first amalgamation of road transport companies on the lines of the plan announced last week for the Blenlxeiffn and Nelson district has been completed between five companies covering the Grey County and the Westland County as far south as the Hokitika river.

This was announced to-day by Mr T. H. Langford, Licensing Authority for the No. 3 Transport District. This amalgamation is not on such a large scale as the proposal for the northern part of the South Island but it has actually been in operation for four months and will be used as a model for amalgamations of a similar nature elsewhere.

Three major firms , and two smaller ones operating between them 21 vehicles have been formed into one company handling all the carriage of goods by road for the area mentioned. Last month the new company handled the largest amount of business since its formation, and used for the work only 15 of its 21 vehicles. The amalgamation has been made of capital, plant and services of the former individual operators, and shareholding has been arranged according to the value of their assets. Alt the previous owners are employed by the new company.

The new arrangement has enabled a substantial reduction in charges to be made. Mr Langstono stated and has considerably reduced tlie number of unpaying or “empty” trips made by the vehicles. The reduction in the number of vehicles used has meant a continual saving in costs and in a considerably more efficient service. It fs hoped later to bring similar schemes into operation in other parts of the No. 3 district.