TRANSPORT CHARGES

Manawatu Standard, Volume LVII, Issue 155, 2 June 1937, Page 2

TRANSPORT CHARGES

FIXATION DESIRED. REPRESENTATIVE MEETING. A representative meeting was held in Feilding, last evening, to discuss the proposed schedule of charges of the Feilding and district branch of the New Zealand Road Alliance for transport in the Manawatu and Feilding districts. There were some sixty delegates present, representative of organisations vitally interested in the matter. The meeting was convened by the Feilding branch of the alliance, at the suggestion of Mr P. S. Skoglund, No. 2 Transport Licensing Authority, and was presided over by Mr A. J. Geary, chairman of the Feilding branch. Mr Geary expressed his satisfaction at the large attendance, and stated that increased overhead expenses and rising costs had made it necessary for the scale of charges to be revised. Operators had asked for the fixation of prices, and before this could be put into operation it was necessary to bring the proposed scale before the transport-using community for discussion.

Mr S. McDowall. secretary of the branch, said that the proposed scale had been compiled some months 'ago after very careful investigation into the extra costs which the operators had been compelled to meet owing to restricted hours, increased wages, etc. Mr Skoglund had asked that the meeting be called in order to see if an amicable agreement with the transport users could he arrived at. The speaker said that the fixing of prices would overcome price-cutting and ensure economic running, as well as providing a continuity of service. The licensed operator was governed by various restrictions, and it was felt that the business required to be placed on a sound basis. Passenger services had their charges fixed.

Proceeding, Mr McDowall said that not very long ago the Feilding Stock Auctioneers’ Association had recast methods for the conduct of the local stock sale, and their effort had been beneficial both to the operators and the farmers. Co-operation was necessary between the farmers and the transport operators, and the meeting would afford an opportunity for misunderstandings' to be cleared up. The lack of loading facilities on some farms had a bearing on the increased costs, and in many instances fanners failed to provide facilities in this respect, thus causing undue delays in the transportation of live stock and goods. It was a matter which the Fanners’ Union could well look into in their own interests. The carriers were anxious” to carry out their work efficiently and expeditiously, and the elimination ot delays would he appreciated by them. The rising costs and increased wages made the need for saving time apparent. The proposed schedule had been compiled in November Jast and the speaker contended that it was workable and a satisfactory and fair one.

Mr McDowall prointed out that the alliance reserved the right to amend the charges if no finality was reached in regard to the weight of crates being excluded from the load to he carried. Speedy transport had revolutionised the despatch of stock, and it was necessary to stabilise that essential service. The speaker submitted that the schedule before the meeting was somewhere near the point at which prices should be fixed. GOVERNMENT’S POLICY.

Mr Skoglund thanked those present for their attendance and stated that he did not expect that an agreement would he reached that evening. He suggested that delegates should take a copy of the proposed schedule of rates home with them and submit them to their respective organisations for debate, after which a further meeting with the alliance could be arranged, with a view to effecting an amicable agreement. He then read a statement of the Government’s policy in regard to transport. He assured the meeting that fixed prices would not lie forced upon the transport users. The licensing authorities were advising that meetings he held throughout the various districts in order that the authorities would have information to place before the Minister of Transport (Hon. R. Semple). Local bodies and freezing works could assist by seeing that employees engaged in the carting industry were licensed operators; this would ensure that price-cutting was eliminated. Most of the schedules which had been submitted to the speaker in the eight districts he had visited lacked one provision—a contract clause—and Mr Skoglund suggested that Feilding operators should make some provision in their schedule for contracts. Of dairy companies, freezing works and local bodies he asked that in accepting any tenders thev should first carePullv examine the prices offered, and decide whether, in their opinion, the work contracted for could he economically carried out at the prices quoted. MAIL CONTRACTS. Regarding mail contracts, Mr Skoglunu said tuat lie had made it a stipulation tnat the successful tenderer must be able to obtain a transport license, and tne license would only be granted if in the opinion of the authority the contractor was able to carry out the contract economically. For that reason an endeavour had been made to keep previous contractors in their jobs, because in case’s when contractors had been carrying out a service for several years it couid bo ascertained whether they were sound or otherwise. Mr Skoglund said ho wanted the meeting to discuss the subject of transport from a non-pootical aspect. “It is not a political matter but one in wlrich an earnest attempt is being made to stabilise the industry on a sound basis, and at the same time make an amicable agreement between the carriers and their clients. If an agreement is reached it will be such as can be reviewed again at any time, and the local licensing authority has the last say. The Minister of Transport will be guided by the findings of the various authorities.” Mr Lloyd Hammond (Huntcrville) asked what representation the local carriers had made to farmers. Had Huntcrville and Marton been included in tlie list of invitations to be present? Some farmers in his district had no knowledge of the meeting. In reply, Mr Skoglund said that possibly the places mentioned might come under the Wanganui area; he would be holding a meeting in that area and would be prepared to hold a meeting at Hunterville or Taihape if desired. Mr Hammond: I don’t think we want you to. We are quite happy under the schedule operating in our district at present. Carriers in the Hunterville district are operating on a lower scale than Feilding INTERFERENCE OPPOSED.

Mr H. C. Mclntyre, as representative of the Apiti branch of the Farmers’ Union, said: “We are definitely opposed to fixation of transport charges in the Apiti district. We have heard much of the alleged evils of price cutting, but if a carrier quotes an unprofitable price to hiniself for a job, whose fault is that? Surely if lie cannot cost correctly be slioiild be out of the business. \f % this price fixation scheme were to be carried its logical

conclusion, surely it would mean that no tenders would be called for contracts of any description, whether it was for the’ building of a house, or the construction of a road. I still believe that there is truth in that old maxim, ‘Competition is the life of business.’ There is the further point that a carrier with a suitable type of vehicle for a particular job may be able to quote a lower price (with profit to himself) than could a man with perhaps not quite such a suitable machine. If price fixation is to be forced on us by the Transport Department, we consider that in general the rates proposed. by the Feilding branch of the Road Transport Alliance are excessive. In our. own district we have road operators giving us a satisfactory service at substantially lower rates than those proposed by the Transport Alliance, and we utterly fail to see why our already heavy costs should be further increased.”

Mr Skoglund: There is no intention to force price fixation on the transportusing community. If an agreement cannot bo reached, the question will be left to voluntary agreement, hut the position will be open to investigation in the event of it being proved that uneconomic transport is operating. Mr Gordon Eliott (Manawatu Auctioneers’ Association) asked if the licensing authority was prepared to extend the contract system to freezing companies. Mr Skoglund said that the carriers should embody ill their schedule the right of contract. Investigations would only concern the earnings of the carriers and their relation to award wages. Mr E. W. Barnett (Halcombe) spoke regarding the difference between the charges for fat lambs and store lambs. The schedule for a minimum load of 80 fat lambs worked out at slightly under 2s 3d per mile, while -for a minimum of 110 store lambs the charge was 2s 6d per mile. Farmers would prefer a straight-out charge per truck, irrespective of number. Mr Eliott supported Mr Barnett, stating that it was unfair to restrict the number of store lambs to a maximum load of j 110. Most lorries could carry at leasj 140 store lambs, ■ and the additional charge of 6d per mile for each additional 20 lambs was an imposition. The truck basis would be preferable. Mr Barnett said that farmers preferred to be charged per load, whether the load consisted of fat sheep or stores. Another factor which exercised the mind of the speaker was the clause in the schedule stating “when vehicles are ordered to attend at a t specified time and goods and/or live stock are not ready for loading within thirty minutes of the specified time, a waiting time shall be charged at 10s per hour.” Mr Barnett said no provision was made for cases in which the farmer was kept waiting for the lorries. “Why not make it, reciprocal?” he asked. Mr McKenzie (Wanganui) said that 10 years ago prices for carting live stock were 100 per cent, dearer than they were to-day. Wages were then lower and there were no restrictions of hours. Carriers then could get up to £7 for wages, but they worked 100 hours per week. The increases in costs all round made it necessary for the prices to be fixed at a payable figure. Mr H. A. Stewart (Feilding) argued that the number of sheep should not enter into the question. It was simply a matter of weight that should be considered. Again no provision was made for back-loading. A COMPARISON. , •

Mr Skoglund said that in the southern Hawke’s Bay schedule back-loading was provided tor at general goods cartage rates, less 33 1-3 per cent, discount. In reply to Mr P. G. Guy, Mr Skoghind said that he had taken out some figures from seven schedules which -had been submitted to him. Having in view the varying nature of the country covered by the several schedules, the average price per head for lambs for a - 40-inile limit compared favourably with the rate proposed for Feilding. The prices were: Hawke’s Bay (north), 7d; Hawke’s Bay (central), 7 4-sd; Hawke’s Bay (south), 8d; Feilding, 6 4-sd; Wairarapa (north), 6 l-3d; Wairnrapa (south), 5 4-sd; Taumarunui, 7 13-20 d. •' Regarding overlapping, Mr Skoglund said that when the carriers were properly organised something might be done in that- respect. ' Mr Skoglund added that he was out to help provide facilities for backcountry settlers, and it was for that reason that mail contractors had been granted licenses to carry parcels, etc., up to 281 b. Mail contractors provided a-regular service, and he thought use should be made of their services for the despatch and receipt of parcels. Mr Stewart was ,of the opinion that the alliance’s schedule was too combersome, and that the farmers wanted a quotation per ton, per mile, instead of taking into consideration numbers. Mi -o McKenzie said that the South Island rates were higher than those ruling in the North Island. Concluding the meeting, Mr Skoglund said that he was out to do the best for both sides. “We don’t want the users to he exploited by the earners or vice versa. An amicable agreement is desired bv the department and the terms of any agreement will he reviewed from time to time in accordance with imnrovemcnts in road transport in the future.” The meeting agreed to give consideration to the schedule proposed by the Transport Alliance and to meet Mr Skoglund again at a later date. On the motion of the chairman, Mr Skoglund was accorded a vote of thanks.