The R.M.C. Syndicate Limited

The background of history

1907 is the year of the motor taxi in Great Britain - known there as the motor cab. They are found preferentially and in growing numbers in the metropolis of London.
In the middle of the year, in response to a question in the House of Commons, Home Secretary Gladstone announces the current stock figures for London. Thus, at the end of 1906, there were 10,792 horse-drawn taxis - so-called hansoms - and 53 motor taxis. At the end of May 1907, there were already 284 motor taxis, while the number of horse taxis fell to 10,251. As early as 1908, 3,000 motor taxis were officially expected in London. This means that a rapid changeover is foreseeable.
The replacement of horse-drawn buses with motorised buses takes place at a similar pace. While there were still 3,551 horse buses at the end of 1905, the number dropped to 3,484 at the end of 1906 and to 2,964 at the end of 1907. However, they are not only replaced by motor buses, but more motor buses are registered than horse buses are eliminated.

Thus, it is assumed that the growth of the motor taxi is clearly faster in terms of numbers. The advantages over the horse taxi are seen as very great for both the operators of motor taxis and their customers. In favour of the customer, fewer disputes about the fare are cited, especially thanks to the introduction of the taximeter. Initially, 6d is charged for the mile, later 8d. In addition, there is the speed advantage over the omnibus, whose maximum speed is fixed at 12 mph. On a clear road, the motorised taxi reaches 20 to 25 mph.

It is not surprising that this change leads to demonstrations by the horse taxi operators. They claim that many jobs would be lost, especially simple jobs such as horse drinkers and street cleaners. Curious is also a patent that is supposed to make it possible to convert the horse taxi into a motor taxi by having a motor harness pull the cab instead of the horse.

There are always comparisons between the taxi business in London and that in Berlin and Paris. Letters to the editor always criticise the dirty and bad roads in London, which would interfere with the operation of motor taxis.
It is considered shameful that most of the existing motor taxis are of foreign origin - UNIC, Fiat, Darraq, Renault, to name but a few. This is also attributed to the backwardness of car manufacturing in the UK compared to continental countries, which is justified by the restrictive laws.
Foresighted observers generally criticise the trend of fitting normal chassis with superstructures that resemble the horse-drawn taxis they are used to.

A new industry is emerging

Against the background described above, numerous companies are emerging that are involved in the development and operation of motor taxis. The British automotive industry is also working flat out to develop suitable chassis. With regard to Rover, it is not clear whether they develop the chassis of the 12hp Motor Cab from the chassis of the Tourist Trophy winner on their own initiative or through preliminary discussions with the consulting engineer of R,M.C.. And this happens quickly, for as early as the beginning of July 1907 the trade press reports its admiration for the chassis fitted with a new two-cylinder engine by Edmund Lewis.

The Rover Motor Cab Syndicate Limited - subsequently called R.M.C. for short - registered on 14 June 1907 is not a Rover foundation. Behind this company is James Hargreaves Dickinson, an engineer with a somewhat obscure history. With only £500, borrowed from his parents, he emerges as the founder and promoter of several companies, including R.M.C., which appears rather grandiose. The share capital is £5,000, divided into 100,000 ordinary shares of one shilling each. On 22 August 1907 the capital is increased to £20,000 by issuing 300,000 additional shares of one shilling each.
Dickinson himself acquires from the Rover Company Ltd. the sole right to the Rover Motor Cab and the name "Rover" in connection with Motor Cabs. In return, he contractually undertook to put a minimum number of Motor Cabs into operation within a certain period of time. By contract dated 4 July 1907 Dickinson sold his company R.M.C. 500 vehicles, complete with tyres and bodywork but without accessories, at a price of £300 each, with the Motor Cabs to be delivered in a minimum number of 20 per month from September 1907. By a further agreement dated 17 August 1907, R.M.C. allots Dickinson 40,000 fully paid-up shares in return for services 'rendered or to be rendered' in connection with the promotion of the company. This agreement is superseded by a further agreement between Dickinson and R.M.C. whereby Dickinson agrees to sell to the company for four years any Rover Motor Cabs it requires at £270 each, provided that the company buys at least 500 per year in the first two years and not less than 200 Motor Cabs each in the third and fourth years. R.M.C. is to be granted the exclusive licence to use the word "Rover" and R.M.C., in consideration of the benefit and rights conferred upon it and on condition that Dickinson agrees to return the 40,000 fully paid-up shares, issues 100,000 fully paid-up shares to Dickinson. The 40,000 shares were subsequently cancelled.

A good deal for Rover?

At first glance, this is undoubtedly a great deal for Rover. But all in all, the affair looks rather naïve. A company that knows nothing about the sale or operation of Motor Cabs wants to put 500 Motor Cabs on the roads in two consecutive years and 200 annually thereafter. At the same time, no sales team is currently available; the company intended for this purpose, called Rover Motor Cab Company Limited, has not yet been founded. And every month more competing companies enter the market, pushing their way into this motor cab business with power - and usually more capital. From a purely mathematical point of view, this works out well, because in a few years more than 10,000 horse-drawn taxis have to be replaced in London alone. But R.M.C. did not publish a sales prospectus for the Motor Cab until the end of July 1907; in a press release they said that the entire capital had been subscribed. This is diametrically opposed to the statements made in the later insolvency proceedings.
With big words, they are trying to set up a motor cab comparison trip from Land's End to John o'Groats. But what can a long-distance trip tell us about reliability in daily city traffic? The comparison therefore does not take place.

From October 1907, R.M.C. advertised and sought agencies throughout the country to sell Rover Motor Cabs. By the end of the month, R.M.C. announced that numerous agencies were being set up. Vehicles should already have been sold, because Rover is supposed to deliver at least 20 cars per month since September. But the run on the agency offers failed to materialise. By press and advertisement of December 1907, R.M.C. announced that more than 500 Rover Motor Cabs would soon be driving on London's streets, after announcing great growth and the issue of new shares at the beginning of December.

But as early as February 1908, a print shop owner filed for insolvency proceedings against R.M.C. because his invoices had not been paid. And the end comes very quickly: on 17 March 1908 the insolvency of the company is announced and an insolvency administrator is appointed. On 1 July 1909, the insolvency proceedings are declared over, and two years later the company R.M.C. is deleted.

On 15 December 1908, the subject of R.M.C. came up again at the 13th ordinary Rover meeting, as a Rover shareholder named Larette complained that Rover shares had steadily lost value after the announcement of the link with R.M.C. He proposed that for this reason Sir Frederik Dixon-Hartland not be re-elected as Chairman. Another shareholder supported this.
Sir Frederik replied that he had never seen the prospectus of the proposed R.M.C. Company issued while he was abroad. As soon as he came to know about it, he wrote that he would withdraw from the Rover Company if it was in any way connected with the taxi business. Further, the prospectus was issued without the consent or approval of the Rover Company, which had not lost any money in the matter as it had never had any stake in R.M.C.
The Directors' Report was adopted unanimously, as was the re-election of the Chair.

In a short time line, again the most important points about the Rover Motor Cab Syndicate Limited.

Time - Line Rover Motor Cab Syndicate Limited, 1907 - 1911
Date	Action
June 14, 1907	R.M.C. Syndicate Limited is registered as a company for the promotion and financing of all kinds of companies, in particular a company called Rover Motor Cab Company. Nominal capital of £5,000 in 100,000 shares of 1 shilling each. Dickinson claims to have acquired from the Rover Company Limited the exclusive agency for the Motor Cab and the name "Rover" in connection with the Motor Cab. In addition, a contract for the purchase of a number of Motor Cabs within a certain period of time.
July 4, 1907	Dickinson sells to R.M.C. Syndicate under contract 500 Rover Motor Cabs, complete with tyres and bodywork but without accessories, at £300 each, for delivery of at least 20 per month from September 1907.
July 25, 1907	R.M.C. Syndicate announces the publication of a prospectus of Rover Motor Cab and declares the subscription of the entire share capital closed.
August 17, 1907	Dickinson receives 40,000 fully paid-up shares from R.M.C. Syndicate for services rendered and to be rendered in promoting the company. A further contract stipulated that Dickinson would supply the company with all the Rover Motor Cabs it required for four years at a price of £270 each, provided at least 500 Motor Cabs were purchased during each of the first two years and at least 200 Motor Cabs each during the third and fourth years. In return Dickinson was to receive 100,000 fully paid-up shares of 1s each instead of 40,000 shares.
August 22, 1907	Capital increase to £20,000 in an additional 300,000 shares per 1s.
September 6, 1907	The R.M.C. Syndicate issues a prospectus which is distributed personally and confidentially on a preferential basis to shareholders of Rover Company Limited. In it 293,900 shares are offered. 163,700 shares are subscribed from this group of persons, plus 8,170 shares from other persons.
October 24, 1907	R.M.C. Syndicate announces a high demand for agencies.
October 31, 1907	R.M.C. Syndicate announced that many agencies were being set up. In addition, a Motor Cab Challenge had been agreed with the R.A.C..
November 29, 1907	The R.M.C. Syndicate issues another prospectus, which publicly offers the subscription of 128,000 shares. As only 9,139 shares are subscribed, the set minimum is not reached. The deposits are returned. At this point the R.M.C. Syndicate has sold nine Motor Cabs and made a profit of £240.
December 5, 1907	R.M.C. Syndicate announces further share issue and major company growth.
December 7, 1907	R.M.C. Syndicate announces that 500 Rover Motor Cabs will soon be driving on London's streets. The same applies to other large cities in the Kingdom.
February 25, 1908	A creditor applies for the opening of insolvency proceedings against the company R.M.C. Syndicate Limited.
March 17, 1908	An insolvency order is made against R.M.C. Syndicate Limited.
March 20, 1908	The insolvency order against the R.M.C. Syndicate is published.
April 30, 1908	A meeting of creditors was held under the chairmanship of Mr Warley, Deputy Liquidator. According to the status report by J.H.Dickinson, Managing Director, J. Lindsay Scott, Director, and F.C.Lewis, Secretary, there are liabilities to 27 creditors amounting to £2,215 8s 10d compared with assets of £1,893 0s 3d including outstanding debts of £1,875. The difference of £322 8s 7d is uncovered. The insolvency administrator states that further claims have been received. The only item on the agenda is the appointment of a liquidator. H. Wingfield is nominated and accepted for this office and later confirmed by the shareholders.
December 24, 1908	The Rover Company Limited declares that it was not involved in the company R.M.C. Syndicate Limited in any way. A company Rover Motor Cab Limited had never been established.
July 1, 1909	The insolvency proceedings against R.M.C. Syndicate are declared closed.
May 30, 1911	The cancellation of the company R.M.C. Syndicate is announced.
November 7, 1911	The company R.M.C. Syndicate is officially deleted.
Explanation: The information in standard font is taken from official information on the bankruptcy proceedings. Information in italics is taken from information in the trade press based on R.M.C. press releases.
Sources used
Commercial Motor, several editions 1907 - 1908 Country Life, December 7, 1907 The London Gazette, several editions, 1907 - 1911