BIG TRANSPORT MERGER

Nelson Evening Mail, Volume LXXI, 29 March 1938, Page 6

BIG TRANSPORT MERGER

COMPANIES AMALGAMATE NEW CONCERN OPERATES ON Ist APRIL REDUCTION OF ROAD MILEAGE With the primary object of the reduction of road mileage, bringing a resultant saving in freight charges, fifteen transport companies operating close on sixty vehicles over the area comprising the northern part of the South Island, have been amalgamated in the formation of a new company with a capital of £50,000. Specifically, the area in which the vehicles operate lies between Blenheim and Nelson, Nelson and Takaka, Nelson and Inangahua and Westport and Greymouth. In an interview to-day. the general manager of the new company. Mr P. S. Boves. stated that there was no outside capital at all in the company, and no outside interests had any control | therein. THE OPERATORS The amalgamation of the services formerly operating over the routes mentioned above would provide all transport with the exception of a small amount done by one or two ancfllaries! trading in fruit between Motueka and | Greymouth which have the right to; carry wood and coal on the return jour- i ney. All the companies involved have route licenses. None of them will cease operations, but in many cases the j number of vehicles will be reduced, i Mr Boyes named the operators in the 1 amalgamation as follows: Messrs Funnel! and Co. (Nelson-Motueka service); H. J. Smith (Nelson-West Coast); A. J. McCaa (Murchison); Martin and Co. (Nclson-Blenheim); Bennett Bros. (Nel-son-Blenheim); A. J. Brown (RaiBlenheim); White (Havelock-Blenheim); L. Wakefield (Motueka-West Coast); Wakefield Transport Ltd. (Nelson-West Coast); Takaka Transport (NelsonTakaka); C. J. Emms (Takaka); P. Baldwin and Co. (Nelson-Blenheim); L. Hunter (Nelson-Blenheim); A. Teece (Motueka-Coast >; S. Wylde (Nelson-, Greymouth).

The directors of the company are as follows: Messrs W. J. Mitchell (Blenheim). J. Newman, P. Baldwin. H. Smith, E. W. Funnell, A. J. McCaa, and P. S. Boyes (General Manager). Mr Smith will be in charge of the Nelson depot, attending to the co-ordin-ation of loading etc., in that area; Messrs Bennett and Brown (Rai ValleyHavelock area); Mr Mitchell (Blenheim area): Mr McCaa (Murchison); Mr Funnell (Motueka); Mr Small (Takaka); while Messrs Baldwin and Krammer will attend to the contracting and heavy haulage on the routes. The company will take advantage of the road classification to the fullest extent and where possible will run sixwheeled vehicles, said Mr Boyes.

As the result of a meeting at Havelock last night it had been decided to; reduce immediately the number of| trucks in that area by four. Such | trucks cost a minimum of £lO a week j each to run and therefore the saving, there was £4O. The company was; establishing depots throughout the areas, at Takaka, Motueka, Tasman, Rai Valley, Havelock. Blenheim, Wakefield, Murchison, and Inangahua, and loading for the various districts would be coordinated through those depots. The head office would be situated in Nelson. It was proposed to use the most modern equipment for road contracting. SAVING ON FREIGHT CHARGES The primary object of the merger was the reduction of mileage with a resultant saving in freight charges. Without tne amalgamation it had become evident that in view of the increased j cost in relation to wages, petrol and! plant there would have been every j prospect of an increase in freight | charges. On account of its size the I company would be able to do all buying | in bulk, and a considerable saving | would be effected in that direction. A feature was that all the present operators were remaining in the concern with the exception of three, and every; operator in the amalgamation had substantial shareholdings in the company. Another important feature was that there was no outside capital and thus no outside interests had any control. Practically all the services had been purchased by allotment of shares in the company, and very small cash payments to the operators had been covered by advances from the bank. The company would be taking over the services from Ist April. The full benefits of the merger would not, of course be apparent for a month or two. An instance of saving was shown in the fact that already it had been agreed to reduce the price for carrying fruit by Id a case on full loads carried between Motueka and Inangahua, where about 100.000 cases are carried annually. This will mean a saving to growers of more than £BOO annually.