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UNITED STATES DEPARTMENT OF AGRICULTURE

Ni BULLETIN No. 770

Contribution from the Bureau of Markets

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CHARLES J. BRAND, Chief

Washington, D. C. January 29, 1919

MOTOR TRANSPORTATION FOR RURAL
DISTRICTS.* 7

By J. H. Coiuins, Investigator in Market Surveys.

CONTENTS.
Page. Page.
Agsiteldi top the motor ctyuckes ea 1 Collection and delivery arrangements...... 20
Preliminary survey of the field of Harm-to-Parm collection 2220.2 aa- 21
GVEGA lO Lee Aa Mihara eho on) Cross rodds-xcollections. ss EAH
Advance estimate of operating costs...... 9 Central assembling points... 2.2. 97
Gasoline; o1] and ‘grease= = > Sil Deliveryaennethodss Saws acne aes . 22
DD Givierseewia CCS ue ee ae, Hoke fel Collection of money.
DepreGiatiornie ses eak see Mee neem AD Keeping cost records
Interest son “imvestment..--. = =e =D Utilization®-of =the tarm truck = = 25
REN Ali Spe eee ee energie arsine Me 13 The return or supplementary load... 26
oA DS eh SKS) apt ar ee ee ee ae eee eal 13 ihiesicentral seternapsala) | oe 8 len eee ree . 26
Garage R enit pees sere tree es he es id Business arrangements for stabilizing
Taxes, license and insurance... 14 the business of the rural motor opera-
Overtiead expenses eae . 14 Oo Nsen jcabet a Ne eNO Glee Ye cae Bape Wer earea eC) oo) A . 22
Selection of operating equipment... 15 The standard bill of lading
Sizes trick ee UN SIN sEB h one =o) Insurance on loads carried by motor
Bodyamequipment ss ae ee ene 16 Ti CN yrange Reopen eae ee
Tire equipment WWW... et oe eS} Limiting factors ..
Determination: of rates... -—-— 18 Conclustons i soe ee ae Le

A FIELD FOR THE MOTOR TRUCK.

The motor truck as a medium for the carriage of farm products is
now assuming a permanent place in the general scheme of trarispor-
tation. It was to be expected that the motor truck would find its
greatest usefulness in solving the problem of the “short haul,” one
of the most difficult problems which has confronted transportation
experts during the last decade. The steady growth of our larger
centers of population and their increasing demands for larger quantities
of food have stimulated the development of producing areas adjacent

* Acknowledgements are due to Mr. Robert H. Black, Assistant in Marketing, who
assisted materially in the preparation of the insurance policy provisions included in this
bulletin, to various members of the New York and Philadelphia Underwriters’ Associations,

who reviewed and criticised these insuranee policy provisions, and to the Secretary of the
Philadelphia Truck Owners’ Association, who criticised the proposed bill of lading.

2 BULLETIN NO. 770, U. S. DEPARTMENT OF AGRICULTURE

to these consuming centers. These producing areas have been pushed
further and further from the centers of population by the encroach-
ment of the city proper. Gardeners and dairy farmers who, a few
years ago, were faced with a short haul to the nearby market, now
find the horse-drawn vehicle of other days entirely inadequate to
cover the increased distance to market. Here the motor truck has
offered itself as a transportation medium capable of working effec-
tively within a much wider radius than the horse and wagon. The
development of rail facilities for the short haul has not kept pace
with the development of crop producing districts near the larger
centers of population. The rapid growth of the truck manufacturing
business during the past five years in itself would have directed the
attention of manufacturers to rural territory as a profitable sales field.

Summing up, it will be seen that three general causes have con-
tributed to the exploitation of the motor truck industry in rural terri-
tory. These causes, as we have noted above, are substantially as
follows: (1) the growth of our larger cities and the consequent develop-
ment of nearby producing areas to provide for part of the food needs
of these cities; (2) the failure of the railroads to keep pace with the
expansion of their short haul business; (3) the development of the
motor truck manufacturing interests and the consequent extension of
their sales campaigns. The crisis in the transportation field, brought
about by the national war emergency, has afforded stimulus to the
development of rural motor transportation more powerful than any
other general influence. Doubtless the motor truck, in any event,
would have established itself as a factor in the rural field. Ordinarily
this establishment would have been a slow process, involving the many
preliminary steps customary in introducing a new method of transpor-
tation. War conditions precipitated action by creating a very unusual
demand for transportation facilities of all kinds. Persons interested
in the motor truck found the field made ready by emergency condi-
tions over which no individual or group of individuals had control. It
has been necessary only to develop the field of action properly. Such
development necessitates or presupposes a certain familiarity with the
problem as a whole. A suspicion that such familiarity did not exist
among those interested in developing rural motor routes was borne out
by preliminary investigations, initiated by the Bureau of Markets. An
attempt was made to conduct a general preliminary survey of rural
motor routes established or in process of establishment. The general
purpose of the survey was to secure basic information regarding the
desirability of establishing such routes, the methods undertaken by the
beginners in this field, and the measure of success which had been
attained during the early period of operation.

_ Material collected in the survey mentioned above shows considerable

j
;
2

MOTOR TRANSPORTATION FOR RURAL DISTRICTS 3

differences in the plans adopted by the average inexperienced operator.
The word “inexperienced” is used advisedly in view of the fact that
the motor truck is a newcomer in the field of transportation and there
has not yet been time for many of the important preliminary problems
to be worked out and a general understanding of possibilities secured.
Investigations show that there are five general classes engaged in rural
hauling on a schedule basis. This classification is about as follows:

(1) The farmer who hauls for his neighbor or for the community
as well as for himself. In many cases such persons have purchased
motor trucks and have afterwards found that their own business was
not sufficient to justify the maintenance of such equipment. By
arranging to care for part of the haulage needs of their neighbors,

Fic. 1.—The cabbages and cucumbers in this truck load will travel 20 miles to Buffalo,
N. Y., and arrive in good condition. The wire netting all around holds a large
load in place.

they have made their investment a profitable one, and unconsciously
have materially helped the local transportation problem of their com-
munities.

(2) The regular local truck operators with limited capital, whose
income is derived largely from their motor trucking business. Some
of these persons are small farmers who have embarked in a new busi-
ness and are willing to devote exclusive attention to the development
of local motor routes.

(3) The local automobile or truck agencies that have initiated a
motor route as a side line. In some cases the establishment of these
routes has been fer advertising purposes, the dealers feeling that a
practical demonstration of the possibilities of the motor truck would
result in increased sales. Often these ventures have proven so suc-
cessful that they have become a permanent part of the farmers’ busi-
ness and would be conducted for profit even if the advertising value
were nil.

4 BULLETIN NO. 770, U. S. DEPARTMENT OF AGRICULTURE

(4) The city transfer companies, whose business permits them to
undertake rural hauling. Most routes so developed are built on a
sound basis. The companies, in most instances, develop their routes
in districts familiar to them, where the opportunities for business are
fairly well-known in advance.

(5) The large corporation operating a fleet of trucks and com-
manding considerable capital. There has been an increasing number
of this class of operators, and the field has seemed attractive to many
-men of large capital. Profits during the war period have been such
as to make it worth while for men of considerable means to devote
serious attention to the building up of motor routes as a regular
business.

There are many and varied modifications of the above classifications
of operators. Mctor hauling during the emergency has been very
miscellaneous in character, and conditions do not permit general state-
ments to be made covering the field as a whole. With such an array
in the field of motor hauling, it would naturally be expected that there
would be a very wide range of operating conditions. Investigations
have shown that this is actually the case. Certain weaknesses in the
rural motor truck industry have been noticed in connection with these
studies, and it is the purpose of this publication to call to the attention
of operators and prospective operators those features of the industry
which apparently are not understood or appreciated. It is hoped that
some of the suggestions contained in this publication may assist in
avoiding loss and in helping in the development of the rural moter
route on a sound business basis. That rural motor routes in general
are not being so developed is evidenced by the unbusinesslike methods
adopted by many new operators, including both farmer-operators and
the strictly commercial organizations. Present efforts to stimulate
the motor trucking industry on the part of those who would profit
more by its expansion evidently are not a part of a systematic or well-
conceived plan. It is easy to call to mind conditions under which
motor truck operation in certain rural districts as a regular busiuess
proposition has not proven profitable. These limiting conditions have
not received the attention that their importance would warrant. The
suggestions on the following pages are designed not so much to give
specific instructions on the formation of new rural routes as to call
to mind those business arrangements which must in all cases be con-
sidered carefully if a venture is to prove profitable. It is hoped that
this publication will assist in developing the proper sort of thinking
among prospective operators and call up in definite order those basic ©
considerations which must be given attention. The suggestions and
conclusions included herein have resulted from a careful study of a
large number of typical motor express routes in various sections of

MOTOR TRANSPORTATION FOR RURAL DISTRICTS 5

the country. In addition, the Bureau of Markets has been instrumental
in establishing motor service in various districts during the early part
of 1918 and the methods adopted and the difficulties encountered have
furnished material for a fairly comprehensive viewpoint on the en-
tire problem.

Inquiries are constantly being received regarding the practices and
methods of successful operators of rural truck routes. It is a regret-
table fact that there are practically no rural truck operators whose
general plans are worthy of study by less experienced operators. Most
rural routes are in the formative stage. For this reason it is felt that
a summary of the problems of all will be of mutual interest both to the
present operator and to the prospective one. The usefulness of the
motor truck for the individual farmer will not be dwelt upon in this
bulletin, but we will concern ourselves entirely with the possibilities
of the motor truck as a community transportation feature.

PRELIMINARY SURVEY OF THE FIELD OF OPERATION.

Too many beginners delay a canvass of their field of operation until
they are definitely committed to the establishment of a motor route by
an investment of funds. Such a beginning is decidedly an unwise one.
Many an optimistic viewpoint has been changed by a closer scrutiny
of the business essentials which must be considered when a rural route
is established. It is very desirable, in fact almost necessary, that a
thorough business survey be made in advance by the prospective
operator. In the first place, an investigation may disclose the fact that
it is unnecessary or undesirable to start the route at all. Secondly, a
proper investigation may materially modify preliminary plans, par-
ticularly with respect to the investment of funds and the selection of
equipment. Enthusiastic but inaccurate reports which have been given
wide circulation in many districts, have been responsible for some
amateur beginnings which should never have been undertaken. The
motor route which has a chance for success must be founded on a
careful business analysis of the field of operations.

There are four important factors which must be given consideration
by the beginner in the field of rural motor transportation. These four
factors are: (1) The volume of farm products produced along the
contemplated route; (2) the volume of miscellaneous hauling which
could be secured to supplement regular loads; (3) competition from
other carriers which would be encountered; (4) the character of the
highways over which the trucks must run. It may safely be said that
the features mentioned above will ultimately determine the success or
failure of any rural route.

A motor route established in a sparsely settled or non-productive
region is foredoomed to failure. A little thought will make it clear

/

6 BULLETIN NO. 770, U. S. DEPARTMENT OF AGRICULTURE

that a potential supply of commodities must be available for hauling
if there is to be sufficient-business to make the route a paying one.
Secondary only to the total supply is the question of the character of
production. A region devoted to the production of a few staple crops
moving to market during a comparatively brief season each year will
not furnish business for a permanent route. A necessary prerequisite
for successful operation is a reasonably dependable tonnage through-
out the year. For this reason it follows that the range of the shipping
season is of primary interest to the truck operator. Regions of
diversified farming, particularly those regions devoted to truck farm-
ing, offer the most fertile fields for rural motor transportation. In such
districts shipping starts early in the season ; new crops are periodically
available for market, and the productive season usually extends to the
limit set by climatic conditions. Districts devoted to the dairy industry
are also potentially rich fields for the motor truck operator since
dairying furnishes a dependable and reasonably uniform supply
throughout the year. This permits the establishment of a fairly regu-
lar routine on the part of the truck operator and to that extent
renders easy an efficient and economical conduct of his business.

Consideration should also be given to the nature of the products
that will be hauled. Low-priced, bulky staples may not stand the
transportation charges necessary to maintain a motor route. For
example, it is rather unlikely that hay can be transported by motor
truck for long distances except under unusual conditions with respect
to price. Perishables may stand the motor truck tariff if the trans-
portation service to market is speedier than the customary means of
transportation. Commodities like cream, milk and eggs which are
high in price as compared to bulk may bear a reasonably high trans-
portation charge if more satisfactory facilities are offered.

The question of supplementary business for rural truck operators is
often an important one. The return load is discussed in a subsequent
section of this publication. It is desired merely to take occasion at
this point to direct attention to possible side lines of operation which
have been responsible for the final financial success of some routes.
Arrangements for special hauling outside of the regular schedule are
often an important source of income to the rural motor truck operator.
Some have found it profitable to care for the tonnage offered by indus-
trial enterprises in their districts. Others do special hauling for farmer
patrons outside of regular hours. Usually the operator of a general
route secures some profitable business from merchants along the route.
These possibilities should be canvassed in advance as their presence or
absence may determine the feasibility of the route. Above all, atten-
tion should be concentrated on the problem of arranging for loads so
that there is a profitable load on all trucks whenever they are operated.

MOTOR TRANSPORTATION FOR RURAL DISTRICTS y)

Competition is as important a feature as in other business. The
motor operator may find it necessary in some cases to compete with
express companies, railroads, electric interurban lines, boat lines, or
other truck operators. It is a very unwise policy to ignore the com-
petitor who is already in the field. Every producing district in the
country has some sort of arrangement to provide for transportation
to market. The wise beginner in the motor truck field will make a
survey of existing transportation facilities in advance. He will make

Fic. 2.—Celery in crates is easily carried in most kinds of trucks.

a special effort to foresee the conditions under which the motor truck
would fit into existing schemes of transportation. In considering
competition, particular attention should be given to rates, schedules
and delivery arrangements. These are the factors on which the motor
truck must stand or fall so far as concerns competition with other
transportation agencies. Some operators have found it possible to
compete successfully with rail service and to charge rates rather
higher than were charged by the customary carriers. Such a condition
is possible only where the truck operator is able to afford a superior
service and in districts where patrons are willing to pay a premium
for such superior service. Delivery arrangements have always offered
a certain amount of trouble to rail carriers and by effecting direct
delivery from shipper to consignee with no intermediate delivery
charges, the motor truck has been enabled to compete successfully
with rail carriers whose rates are slightly less than those of the imotor

8 BULLETIN NO. 770, U. S. DEPARTMENT OF AGRICULTURE

truck. Freight and express schedules in some districts have been
unsatisfactory to the shippers and by offering a more prompt and
speedy service, operators have often secured for themselves a very
satisfactory tonnage that ordinarily would move by rail.

Good roads are a prerequisite to successful motor truck operation. It
is believed that few motor truck operators realize the increased ex-
pense which results from travel on poor roads. The prospective 4
operator who plans to move his truck along roads which are virtually
impassable or at any rate unsatisfactory, will find that his daily operat-
ing costs are far in excess of normal costs of operation, and this one
fact alone will seriously affect his profits. A careful road survey will
be made in advance by the businesslike operator.

Enough has been said in the preceding paragraphs to indicate the
general scope of the preliminary canvass which every prospective
motor truck operator should make. The Bureau of Markets has made
a fairly complete study of a large number of typical rural routes and
has assisted in the establishment of several such routes. The points
considered by investigators of this Bureau in making a preliminary
canvass of the field of operation may be helpful to operators who
contemplate such a study in their own territory. The following out-
line was placed in the hands of each investigator, and the final report
on the feasibility of establishing moter service in any district covered
complete reports on each of the items in this outline. - :

Sethi bit

Roapbs.
~_ > Gharacter of surface. .
Grades. (As affecting motor hauling.)
LocaTION AND LENGTH oF ProPposeD ROoUTEs.
Terminals. 5 :
Towns to be covered. (Distance apart, size, etc.)
Toial distance covered.
Logical location for route headquarters.
Principat ComMMopITiEs 70 BE Carriep EacH Way.
Nature oi agriculture along route.
Commodities to be hauled each way in summer. In winter.
Amount oF Bustness WxHiIcH WovLp BE PLEDGED.
What business would be pledged in summer? In winter?
Estimated quantity oi business by months.
Of what would return load consist?
Who would furnish bulk of business—iarmers or country merchants?
Do prospective patrons seem inclined to pledge business?
Service Now Given py OTHER CARRIERS.
What other carriers serve the territory?
The maximum, minimum and average iarm haul to loading stations.
Schedule maintained by present carriers.
How do present delivery arrangements compare with proposed arrange-
ments ii a motor route should be established?
Rates charged at present. (Freight and express.)

MOTOR TRANSPORTATION FOR RURAL DISTRICTS 9

SCHEDULE WHICH SHOULD BE MAINTAINED.
Number and capacity of trucks which probably would be needed.
When would trucks leave terminals to best serve the territory?
Probable running time over the route.
How many stops should be made and where?

Proposep MrEtHops OF COLLECTING AND DELIVERING.
At how many and at what points would loads be collected?
How would transportation charges probably be collected?
What delivery should be effected both at city and country points?

LocaL INTEREST IN THE ENTERPRISE.
What persons or concerns are most interested? Why?
Could private capital be induced to contribute toward an experimental
service? —

PERMANENCE OF PROPOSED ROUTE.
Will territory support the proposed route when rail service is normal?
Is there any reason why the route should not be permanently profitable?
It is manifestly impossible completely to outline an ideal investiga-
tion which would be satisfactory for all districts. It 1s necessary to
correlate the preliminary canvass with local conditions. The items
enumerated in the above outline, however, may offer some suggestions
which will be helpful to those interested in the establishment of rural
motor transportation routes.

ADVANCE ESTIMATE OF OPERATING COSTS.

One of the first questions to arise in the mind of the prospective
motor truck operator is: “What will it cost to operate a truck?” Loads
will be arranged, rates will be established, the route will be planned
and the truck purchased on the basis of this estimated cost. If the
business is to be intelligently planned, it is essential that some idea be
secured in advance as to prospective operating costs. The importance
of having an idea of these costs in advance can not be over-empha-
sized.

There are several sources of information which may be helpful to
the man contemplating the purchase of a motor truck. Previous
personal experience of the operator is exceedingly valuable. Experi-
ences of other operators may often be secured for the asking. Motor
truck manufacturers will be glad to furnish prospective purchasers
with such information of this nature as may be available. Data
secured from truck manufacturers very often do not indicate the con-
ditions under which the figures were secured. Information thus
offered is usually an honest attempt to aid buyers but almost invari-
_ ably there is too much generalization to make such figures a very
valuable basis of estimation. Many cost statements issued by truck
companies do not take into consideration the varying classes of high-
ways over which trucks run, variations in the load, total monthly or
yearly mileage and other important factors. There is a tendency to
submit data secured under unusual or ideal circumstances and thus

10 BULLETIN NO. 770, U. S. DEPARTMENT OF AGRICULTURE

rendered valueless to the operator who must run his trucks under con-
ditions over which he has little or no control.

Several factors must be considered in arriving at reasonable cost
estimates. Among them are: (1) size of truck, (2) probable loads,
(3) daily mileage, (4) condition of roads, (5) cost of gas, oil and
repairs. Large trucks necessarily involve increased expenditures for
operation. The cost of operation per unit of load, however, may he
less with the large truck than with the small one. The operator whose
prospective daily mileage will be unusually large must expect that his
operating costs will be correspondingly large. Where the roads are
smooth and hard, costs of operation will necessarily be much less than

Fic. 3.—An open-top stake body, with loose canvas cover, carries a large load of grapes,
but is not the best type of body for hauling perishable products.

where the roads are in a poor state of repair or so soft as to be nearly
impassable at certain seasons of the year. Gasoline, oil and repair
bills will vary in different sections of the country. It is impossible to
generalize on these expenses at this point. The prospective operator
must examine his local conditions, however, and adapt his ideas to the
prevailing scale of prices.

In view of the fact that no two individuals operate motor trucks
under identical conditions, it is necessary that there be some basis of
calculation applicable under all conditions. Calculations bearing on
costs of operating motor trucks are customarily based on the “ton-
mile.” This expression refers to the transportation of a one-ton load
for a distance of one mile, or the equivalent thereof. The use of such

MOTOR TRANSPORTATION FOR RURAL DISTRICTS 1p

a basis is more nearly accurate than an estimation of costs on a mileage
basis where no consideration is given to the load. It is obvious that
the truck operating with no load, costs Jess per mile for operation than
one that is loaded. The wise operator will keep this basis well in mind
in considering his costs of doing business.

Few motor truck owners foresee all of the cost items which will
arise under actual operating conditions. Still fewer farmers, who
have embarked in the motor trucking industry either as an individual
enterprise or as part of a community effort, have a clear understand-
ing of what factors must be considered in estimating costs of motor
truck operation. Attention will be directed, therefore, to some of the
more important items of cost. No attempt has been made to arrange
these items in order of importance.

GASOLINE, OIL AND GREASE.

The costs of gasoline, oil and grease represent the first expense items
which naturally occur to the mind of the prospective operator. The
customary error made in considering them is shown in a tendency to
emphasize unduly this character of expense. The cost of gasoline, oil
and grease, of course, is dependent directly upon local prices. In some
districts prices for these supplies are invariably higher than in other
districts, and the prospective operator will naturally investigate his
local market. The cost of these supplies is of course heavier when
the motor truck is loaded and is one of the variable items of expense
in motor truck operation which can be estimated with considerable
accuracy. Most operators have a fair idea of the consumption of
gasoline, oil, and grease by their own trucks. Operators who have
had some experience in truck operation will find little difficulty in
arriving at a reasonably close estimate of these costs. The data col-
lected by the Bureau of Markets show a very wide range in the gasoline
mileage for trucks of different sizes under varying conditions. A
study of about 60 typical motor routes showed a mileage of from
5 miles to 9 miles per gallon of gasoline for two-ton trucks, 4 miles to
6 miles for three-ton trucks, and 3 miles to 5 miles for five-ton
trucks. These figures are not conclusive but will serve to indicate a
range which was found under actual operating conditions.

DRIVERS’ WAGES.

The wages paid drivers vary in different sections of the country and
for trucks of different sizes. In districts where the cost of labor is
high, operators have found it necessary to pay relatively high wages
for drivers. Information gathered by the Bureau of Markets on a
number of routes indicates a daily wage range of from $2.75 to $7.50.
The higher wages were paid for expert drivers of heavy motor trucks
in industrial regions where the general scale of wages was high. Drivers
of small trucks in general farming districts were content with the

12 BULLETIN NO. 770, U. S. DEPARTMENT OF AGRICULTURE

smaller wage. Where the truck owner expects to act as his own
driver, it is only fair that a reasonable wage for this service be entered
on the books before an attempt is made to calculate profits.

DEPRECIATION.

Depreciation as a feature of expense is little understood by the
average small operator, and there is an almost universal tendency to
accord too little consideration to this important item. Investigations
disclose the fact that this constitutes one of the heaviest items of cost
per mile Of operation. Most operators who consider this item at all
are inclined to set aside from 20 per cent to 33 1-3 per cent of the
cost of the truck each year to cover depreciation. This is a very simple
arrangement but it is not entirely a sound one. It is obvious that
depreciation will be greatest on the truck which makes the greatest
annual mileage. It will be seen, therefore, that unless the annual mile-
age, or prospective annual mileage, is considered, the preliminary
estimate of depreciation is apt to be incorrect. Depreciation under
actual working conditions varies considerably with different makes of
trucks and is correspondingly less on better makes. It is impossible
to set forth a formula which will enable the prospective purchaser of
a motor truck to estimate in advance his depreciation with any con-
siderable degree of accuracy. It will be necessary for each owner to
consider carefully his own conditions and on the basis of past per-
formance of trucks of the same size and make as his own, draw his
own conclusions. The operator who is just considering the route
will do well to study very seriously the importance of this item of
cost.- li he will tentatively estimate depreciation in terms of dollars
and cents per year, estimate his prospective yearly mileage, and divide
- his annual depreciation cost by the annual mileage, he will be sur-
prised.at the cost of depreciation per mile of operation.

INTEREST ON INVESTMENT.

While interest on investment is a matter of controversy in corpora-
tion accounting there can be no doubt that the motor truck operator
must give serious consideration to the fact that he will have invested -
considerable money in the motor truck that can not be used for other
purposes. Most operators are content to estimate six per cent as a
fair rate of interest per year, but few of them take into consideration
the depreciating value of the truck. During its second year of opera-
tion, it is obvious that the motor turck is not worth as much as during
its first year. For this reason, a charge of six per cent for interest on
the purchase price of the car is not a just one during the second year
of operation. :

A simple formula has been devised by a conference of truck
owners for calculatmg the average annual interest to be charged ~_

against a motor truck. This formula is as follows: aS x CXB _
2

MOTOR TRANSPORTATION FOR RURAL DISTRICTS 13

average yearly interest. In this formula A represents the estimated
life of the truck in years under actual operating conditions; B repre-
sents the original investment; and C represents the rate of interest.
To illustrate the use of this formula let it be assumed that a truck is
purchased for $3000 which the operator estimates will last for 4 years
under his operating conditions. Six per cent may be considered a

fair rate of interest. Inserting the necessary values in the equation

> Saal 06 3000
given above, we have: 41+ x * #000 — $1250 (average yearly

interest). The use of such a formula makes it possible to estimate,
with a reasonable degree of accuracy, the amount which should be
set aside each year as interest on the investment. :

REPAIRS.

The regular repair bill, when coupled with the annual cost of over-
hauling, is often a serious one. ‘The experience of motor truck opera-
tors in various sections of the country show that this is an important
item of expense. Naturally it is impossible to make an advance
estimate of these costs with any reasonable degree of accuracy. The
annual repair bill will bear a practical relation to operating condi-
tions. Where care is used in handling the truck, the cost of repairs
will be much less than where no attempt is made to exercise reasonable
supervision over operation. The cost of repairs increases with the
age of the truck. Those operators who have purchased used equip-
ment have found their repair bills relatively higher. Repairs during
the first year of life of the new truck are not a very serious considera-
tion. When the motor truck is in more or less continuous use through-
out the year, it is usually laid up once each year and given a complete
overhauling. The cost of this overhauling depends on the age of the
truck, the care which it has received, and its size. Data collected by
the Bureau of Markets show annual costs of overhauling ranging from
about $100 to as high as $800 or $900. Those truck operators who
make it a point to keep‘ their trucks in a constant state of repair have
relatively small charges to meet for annual overhauling. Those who
operate their trucks as long as possible with no regular repairs must
often face an extremely heavy charge for overhauling at the end of
each year. :
TIRES.

Tire cost is another heavy item of expense. ‘This item varies directly
with the use of the truck. Road conditions are a prime consideration
in determining tire cost per mile of operation. It is often found that
there is a very wide variation in tire cost of different trucks operating
with varying loads and under changing conditions. Data in the pos-
session of the Bureau of Markets show a range of tire costs of from
one cent to four cents per mile where solid tires are used. These
figures cover a large number of trucks of different sizes, operating with

I4 BULLETIN NO. 770, U. S. DEPARTMENT OF AGRICULTURE

different loads. They are offered as illustrative rather than as authori-
tative. It must be remembered that while the actual tire cost of the
large truck heavily loaded may be relatively high per mile of operation,
the cost per ton may be small, and in the final analysis the latter com-
parison is the only fair one. Where pneumatic tires have been used,
it usually has been found that the actual tire cost is rather in excess uf
the cost where solid tires are used, but in such cases the annual depre-
ciation and the cost of repairs are usually less.

=

Garage rent is an item of expense which is often not incurred directly
by the rural operator. Where the operator finds it necessary to rent
garage space it is, of course, easy to calculate the cost. It is not so
easy to make such an estimate, however, where no actual cash outlay
is incurred. Where the operator is using garage facilities of his own,
which might be valuable for other purposes, the rental value of these
facilities should be entered-on the books. Where no attempt is made
to house the truck when not in use, the operator may save on garage
cost only to lose a still greater amount due to increased depreciation.

GARAGE RENT.

TAXES, LICENSE AND INSURANCE.

Taxes and the costs of a license and: insurance vary greatly in
different states. The prospective owner of a motor truck should look
into the matter in advance and be in a position to meet these liabilities
as they come due. Insurance of various kinds must be considered.
Theft, accident, and fire insurance should be taken out on the motor
truck itself. Reliable operators now find it desirable to take out
insurance covering the load which is being carried.

OVERHEAD EXPENSES.

The item of overhead expenses includes office rent, office equipment,
clerical and other salaries, advertising, etc. They are often of minor
importance to the farmer operator, but constitute a considerable ex-
pense for the larger operator who finds it necessary to maintain a
business headquarters. :

The above enumeration of operating costs may serve to call to the
attention of some beginners in the field of motor truck transportation
the need for carefully considering the business elements in advance of
actual operation. The most common error of the beginner is to under-
estimate some of the cost items. Many beginners either underestimate
or fail to estimate at all such an important item as depreciation. Such
operators have been known to conduct their business for several
months under the assumption that they were making money, only to
find that their apparent net profit was being absorbed by the lessening
value of their rolling stock. Other operators have been inclined to
accept cost figures determined under widely different conditions, or

MOTOR TRANSPORTATION FOR RURAL DISTRICTS 15

under conditions which were not all comparable to those in the opera-
tor’s own territory. Few operators realize that costs are directly
related to the plan of operation, and the final costs of operating a given
route will depend almost entirely on the local conditions under which
the route must be maintained.

SELECTION OF OPERATING EQUIPMENT.

The problem of selecting proper operating equipment is one that
ordinarily is not given the consideration its importance deserves. Too
few operators have a sufficient knowledge of the mechanical@@peration
of motor vehicles, so that many a promising route has proven unprofit-
able because of improper or insufficient mechanical equipment. In
making their first purchases, some operators rely exclusively upon the
statements of sales agents for motor truck companies. Often this
procedure has proven satisfactory in the long run because as a rule
the sales agent is anxious to see that his customer is supplied with the
proper equipment, so that other orders may be expected in the future.
It will be well, however, for the beginner in this industry to confer
with owners and operators of motor trucks in his vicinity, who will be
able to give him unbiased and unprejudiced advice.

SIZE OF TRUCK.

The size of the truck to be purchased: will, of course, depend very
largely on the estimated tonnage to be hauled. Not only must the
operator purchase trucks of sufficient size to care for the business at
the outset, but he must plan for a normal increase in tonnage, so that
at a later date he will not find it necessary to purchase other equipment
more suited to his needs. It must be remembered that there is a very
definite relationship between the size of the truck and its upkeep
cost. The cost of operation per mile of a large truck is greater than is
that of a small truck. If a large truck is purchased and the average
load carried is well below the rated capacity of the truck, the operator
will find that his cost per unit of load is high. On the other hand,
where regular loads are uniformly heavy, the cost per unit of load is
much less with the larger truck. One five-ton truck will transport
a five-ton load much more economically than will two trucks of half
that capacity. In some cases, consideration must be given to the
character of the load to be hauled. If the load is perishable by nature
and the truck is not loaded to capacity, the comparatively heavy springs
of the larger trucks may cause a deterioration of the load. If the load
promises to vary considerably during different periods of the year, it
may be advisable to consider the use of a trailer in connection with
a truck of smaller rated capacity than the maximum load. The trailer
seems to have been successfully used by a large number of commercial
operators, but the Bureau of Markets has no data regarding the
advisability of using trailers when the load is uniformly greater than
the rated capacity of the truck.

10 BULLETIN NO. 770, U. S. DEPARTMENT OF AGRICULTURE

Road conditions bear a direct relation to the size of truck to be
selected. Roads having a light surface or country roads having a
soft surface may not permit the operation of heavy trucks. In some
states bridges in rural districts have not been designed to care for
heavy modern traffic, and in these districts it is necessary to use
lighter vehicles. Some States and some municipalities have placed
legal restrictions on the weight of rolling vehicles passing over the
roads. In most cases these restrictions are so worded as practically
to forbidthe use of trucks whose gross tonnage when loaded exceeds a
certain maximum. In other cases the load which trucks may carry
depends upon the width of the tire equipment. The prospective
operator should communicate with the Public Service Commission or
such other body as may have jurisdiction over the operation of trucks
in his territory and inform himself in advance as to legal restrictions
covering the operation of trucks on the highways.

BODY EQUIPMENT.

The selection of body equipment must be based primarily upon the
general character of the loads to be hauled. In rare cases where the
goods are highly perishable or must be carefully protected from
weather conditions, it may be necessary to use specially constructed
bodies. Under ordinary conditions, however, the operator usually has
his choice of several types, and his selection, as a rule, is based upon
his requirements and the initial cost of the equipment.

Body equipment is usually secured from one of three sources. Bodies
may be built locally, according to the ideas of the operator, and super-
imposed on the chassis when delivered; or, bodies of regulation design
may be furnished by the manufacturer of the chassis as regular or
special equipment. Some concerns specialize in building truck bodies
according to regular or special designs and will furnish a body of any
design submitted by the purchaser. :

Certain basic considerations are necessary in the selection of body
equipment. The prospective operator should have a fairly clear idea
of the general nature of the commodities which he will be obliged to ~
haul. He should estimate the bulk of his load as compared to its
weight. If any appreciable proportion of the ordinary load is perish-
able, necessitating special protection from heat, cold, or rain, con-
sideration should be given to this fact in the selection of a truck body.
If the average load is to be composed of package freight, the truck
body will be much different from the one used if regular loads are
composed of commodities shipped in bulk.

Of the large number of body types, many are entirely unsuited to
the needs of the ordinary operator of a rural motor freight route.
However, attention may be directed to a few of the more common
types of bodies. While no uniform names have been applied to these

MOTOR TRANSPORTATION FOR RURAL DISTRICTS | 1H

general types, it is believed that the descriptions given herein will be
sufficiently plain. The following are aynons: the commonest types of
truck bodies in use:

Stake body (open top).—This is a relatively cheap body, is easy to
load, and is capable of: carrying extra large loads of bulky goods.
Because of its construction, it is adapted to a large variety of uses. It
should be remembered, however, that because of the open top and the
lack of protection on the sides, it offers little protection from the
weather unless the load is well covered with canvas. It is not always
easy to protect the load by means of a loose canvas cover, and for this
reason, the open-top stake body is not as popular for rural hauling as
is the next type mentioned.

Six or eight-post open-side body.—This Bot has a permanent water-
proof top and, with the use of the customary side curtains, is a very
popular and adaptable type. It is comparatively light in weight and
offers much better protection to the load than does the open-top body.
In winter, however, it is not easy to heat where it is necessary to pro-
tect a perishable load. This type of body is the most popular because
of its light weight, general adaptability and cheapness.

Straight-side closed body (or van body).—This type offers the best
possible protection to the load if it is so designed as to insure proper
ventilation. It is possible to seal such bodies so as to protect the load
from pilferage, this being a decided advantage where the load is a valu-
able one. The closed body is heavy, thus increasing the cost of truck
operation and is initially expensive. It is not so easily loaded as the
open-top, but may be used: for hauling almost anything that is offered.

Open express body.—This body-resembles the ordinary farm wagon,
has no stakes at the sides, and is uncovered. It is well adapted for
hauling milk or products shipped in bulk, such as grain. It is fairly
cheap in price, but offers little or no protection from the weather. It
is not adapted for hauling large loads of light bulky goods, and except
for special purposes, should not be selected by the average operator.

Dump body.—This is an unusual type for rural hauling and is not
adapted to a wide range of uses. It is heavy, unsatisfactory, and
expensive for general rural hauling. It might be used advantageously
for handling bulk grain or similar ess but should be selected
only for special uses.

In general, the selection of body equipment is a problem ‘fitch solves
itself if proper forethought is given to the character of the business.
There are many special variations from the general types of body
mentioned above. If the prospective load promises to be heavy in pro-
portion to its volume, the body need not be large. If; as is usual witt
nuscellaneous farm loads, bulky loads may be carried, it is important
that the body be of sufficient size to accommodate a capacity load
for the truck.

18 BULLETIN NO. 770, U. S. DEPARTMENT OF AGRICULTURE

TIRE EQUIPMENT.

It is important that due consideration be given to the selection of
tires, in view of the fact that tire cost is one of the heavy items in
motor hauling. There are two general types of truck tires in use—
the solid and the pneumatic. There is a third type, the cushion tire,
which has a limited use at the present time, but by far the greater
proportion of motor trucks are equipped with either solid or pneu-
matic tires. The solid tire is more commonly used because it is more
adaptable and cheaper than the pneumatic, does not suffer from blow-
outs or punctures, and stands up well on bad roads and under very
heavy loads. The pneumatic tire for truck use is a recent development,
and there is less known about the possibilities of pneumatic tires for
heavy loads than is known concerning the solid tires. Advocates of
the pneumatic tire claim lessened vibration for truck and load, greater
speed, and increased gasoline mileage. Where speed is essential, the
pneumatic tire should be considered carefully. Where economy is the
prime factor, the question is debatable. The majority of practical
operators, however, favor the solid tire. No attempt will be made in
this publication to issue an authoritative statement regarding the merits
of the two types.

The size of tires should depend upon two factors: (1) The weight
of the ordinary load, and, (2) the character of the road. Under-size
tires are not only uneconomical, but are injurious to the roads over
which they travel. Over-size tires are initially expensive and, if the
load is ordinarily light, are unnecessary. With slightly soft roads or
extra heavy loads, over-size tires may be desirable. In general, the
recommendations of the manufacturing company or its agents are
more reliable than the judgment of an inexperienced operator. It is
well for the prospective purchaser to consult local tire agencies in con-
sidering new equipment. It should be remembered that the agent can
offer authoritative advice only when he is fully informed as to operat-
ing conditions, and when such advice is asked, the operator should
state his case fully.

DETERMINATION OF RATES.

The Bureau of Markets has received many inquiries indicating that
the question of a basis for the determination of motor freight or
express rates is not clearly understood even by experienced operators.
The operator of a regular commercial rural route (as distineuished
from the farmer operating a truck for himself and a few of his
neighbors) has little to guide him except the rates of other operators.
As a rule, these are not sufficiently uniform to form an adequate or
just basis of comparison. Many operators have established their rates
on the basis of “what the traffic will bear.” Naturally, rates so
established have varied in different localities and for different com-

MOTOR TRANSPORTATION FOR RURAL DISTRICTS 19

modities. Many operators have initiated service with rates so high
as to drive profitable business away; others have gone to the other
extreme and in their desire to attract business, have failed to give due
consideration to operating costs and have lost heavily because their
rates were too low. ‘There are several factors which should be con-
sidered in the establishment of rates in any district. The value and the
fragility of the load bear a direct relationship to the rate which should
be charged. Very valuable or fragile loads involve a greater risk on
the part of the carrier, and the tariff for the carriage of such goods
should be sufficiently high to offset the risk involved. Where insurance
is carried, this must be considered as an item of cost in calculating
the rate to be charged. The length of the haul is naturally another
prime consideration. It is comparatively easy to consider this item, as
the cost, as a rule, varies directly with the distance. Road conditions
also directly affect operating costs and, hence, must be considered in
establishing rates. Where the roads are good, operating costs are low
and charges for transportation can be lessened accordingly. Where
poor roads are encountered, the additional cost must be featured in the
rate schedule. The perishability and the bulk of the load also should
be considered. The transportation of highly perishable goods involves
a risk which must be paid for. Where goods are extremely light and
bulky, it must be remembered that the truck when fully loaded may
not carry its capacity in weight ; hence, operating costs will be increased
per pound, and this must be reflected in the rates. Some operators
fail to consider competitive rates by railroad, electric line, boat line or
other motor truck lines. It goes without saying that a profitable busi-
ness will not be secured if rates are not in line with those of other
carriers. It should be remembered, therefore, that careful considera-
tion must be given to rates charged by other carriers. The class of
service rendered will also directly affect the rate. Where complete
delivery is made from the door of the shipper to the door of the con-
signee and service is rendered which is not duplicated by the railroad,
the additional service must be considered in fixing the rate. In many
cases rural motor routes make delivery of goods much more quickly
than does the railroad, and where time in transit is a consideration,
the additional value of such prompt service is to be considered. Return
loads bear a direct relationship to the primary rate in that the operator
who is assured of a profitable return load will be enabled to reduce
his charges because of lessened cost per ton-mile.

There are many other minor considerations to be gone over by the
beginner in the motor truck industry, but those mentioned above are
basic in nature. Some operators catering to a business which ordinarily
would go by freight have established rates which compare directly
with freight rates. Most operators do an express business and base
their rates accordingly. In some districts, in the effort to establish a

20 BULLETIN NO. 770, U. S. DEPARTMENT OF AGRICULTURE

fair rate, motor operators have added ordinary freight and express
rates together and divided the sum by two. This is decidedly an
unsound and unscientific method for the determination of such rates
but represents an earnest effort to place the motor truck on a rate
basis comparable with that-of the chief competing carriers. Practi-
cally no rates have been established on the basis of cost plus a reason-

Fic. 4.—The fice of Harford ones Maryland, operate a motor truek route for
-themselves with entire success. - This is one of their roadside loading platforms, to
which the farmer brings his milk by a short haul, and the truck takes it to Baltimore.

able profit. This is easy to understand because cost of operation is
not well understood by most operators, and voy few have any authori-
tative information in this connection.

The satisfactory rate must be one which is low enough to attract
business and high enough to offer a-reasonable profit to the operator.
Where conditions do not permit the establishment of such a rate, care
should be exercised in starting a-route. As the rural motor business
becomes more firmly established in various districts, the practical
experience of operators will serve to indicate fair rate bases. In the
meantime, it will be necessary for each operator to solve his own
problems on the basis of local conditions in his district, paying par-
ticular attention to the features indicated in this bulletin.

COLLECTION AND DELIVERY ARRANGEMENTS.

It must be remembered that that two of the principal advantages
of the motor truck, namely, lessened handling of goods in transit, and
speedier transfer, are lost if satisfactory collection and delivery ar-

MOTOR TRANSPORTATION FOR RURAL DISTRICTS 21

rangements are not perfected. It may be well to mention and to
discuss briefly collection methods in vogue among practical operators
in various districts. It should be stated in advance that no system
worthy of exact duplication has been found by investigators of the
Bureau of Markets in studying the business arrangements of a large
number of operators in various sections of the country. Collection
and delivery arrangements, as a rule, have grown up gradually with
the business and in many cases are cumbersome, unsystematic and ex-
pensive. The following common methods are suggested to prospective
operators and may serve to stimulate thought in the direction of a more
systematic handling of this phase of the motor-truck business.
FARM-TO-FARM COLLECTION.

Farm-to-farm collection usually is adopted on short rural routes
where comparatively few stops are ordinarily made. Where heavy
trucks are used, this method of collection is not entirely feasible be-
cause of the increased cost of operation. Where light trucks are used,
however, it has proven reasonably satisfactory. One advantage of
this method of collection is that the business of the operator is con-
stantly brought to the attention of shippers along his route, and
tonnage is thus secured which might otherwise move by different
means. As has been indicated, farm-door collection is costly in time
and gasoline, and the successful operator must charge rates which
reflect his increased costs. In practically all instances it is not advis-
able to deviate far from the main highway in collecting the load. Most
operators who gather produce at the farm door refuse to go far from
the regular route over which they ordinarily travel.

CROSS ROADS COLLECTION.

Collection at cross roads involves fewer stops than are made when
the truck collects goods at each farmhouse and commends itself to
the businesslike operator. Such an arrangement is convenient both
for the patrons and for the driver. Of course, this method of collect-
ing goods makes it necessary for shippers to bring their goods to the
cross roads, but in most cases this can readily be done with the
facilities at hand on the farm. This method of collection is very
popular in various sections of the country and probably will remain
a permanent feature of the rural motor hauling business in many com-
munities. «In general, it affords a maximum of service and convenience
for a minimum of cost and comes nearer to fulfilling the ideal con-
dition than any other method now in vogue.

CENTRAL ASSEMBLING POINTS.

Very few rural routes have their business systematized to the extent
of arranging for central assembling points where shippers may bring
their goods for transportation to the city. Where proper arrangements

22 BULLETIN NO. 770, U. S. DEPARTMENT OF AGRICULTURE

are made, this method of collecting has much to commend it to the
business-like operator. Where trucks of large capacity are used, the
establishment of a few central assembling points will save operating
the heavy truck in out-of-the-way districts and. will materially lessen
the cost of service to shippers. Two general methods may be used by
the operator who desires to utilize central assembling points. The
first method is to have the shippers bring their own products to the
nearest central assembling point. In this respect, this system differs
from the cross roads pick-up system only in that the number of stops
for collecting loads are fewer. The second method is to arrange to
have a lighter auxiliary truck to assemble all goods in a given district
for loading on the heavy truck at the central assembling point or
points. On one important demonstration route fostered by the Bureau
of Markets, the first method of collection, 7. e., with shippers bringing
their own products to the central assembling point, was adopted.
Later it was found more satisfactory to arrange for an auxiliary
pick-up service, utilizing a lighter truck to pick up goods for as-
sembling at central points to be loaded on the heavy truck for trans-
portation to market. It seems altogether likely that with the enlarge-
ment of rural motor service and the consequent systematizing of busi-
ness, the central assembling point for gathering the load will grow in
favor and importance.

Whatever method of collection is adopted by the operator, it is
advantageous to have a small loading platform at each point where
goods are to be picked up. This loading platform should be the same
height from the ground as the floor of the truck, so as to facilitate the
loading of the goods on the truck. Such platforms are inexpensive
and save much time and trouble when business is flourishing.

DELIVERY METHODS.

Methods of making delivery vary as greatly as do methods of
gathering the load. These, again, are determined by the class of
business handled, the type of the load, and the size and nature of
individual consignments. It is impossible to generalize on the sub-
ject in a publication of this kind, because satisfactory methods must
be worked out on the ground so as to permit any changes which may
be caused by local conditions. In many cases, and particularly by small
operators, delivery is made directly to the door of the consignee. Where
the business is on a large scale and is fairly well established, the
operator often assesses an extra charge for direct delivery of packages
which do not return a minimum gross revenue. This extra charge for
complete delivery of small shipments varies from 2 5 cents to $2.00 per
package. One large motor truck company operating in New York

MOTOR TRANSPORTATION FOR RURAL DISTRICTS 23

City delivers free of charge to any point below 120th Street individual
consignments returning a gross revenue of $1.00 or more. Packages
returning a lesser revenue are delivered free to the downtown terminal
of the company only ,an extra charge being assessed for complete
delivery to the consignee.

Some rural operators have established city depots for the collection
and delivery of goods. Commodities picked up at various points in the
country are brought to these depots in the city. The consignee then
calls for the goods, or a light truck for city use effects a complete
delivery. In order, however, to utilize profitably the services of an
auxiliary truck for city delivery, it is necessary for the operator to
have a sufficient volume of business to justify the maintenance of such
a vehicle. The establishment of a central terminal would solve the
city delivery problems of the small operator. The central terminal
plan is discussed in detail in a subsequent portion of this bulletin.

Most operators have found it more satisfactory to make complete
delivery to the consignee, assessing a minimum charge on small ship-
ments sufficient to cover complete service. Such an arrangement is
almost always more satisfactory to the patrons. Offering complete
delivery also emphasizes one of the desirable features of motor truck
service, namely, complete transportation service to the door of the
consignee with a minimum of handling in transit.

COLLECTION OF MONEY.

Nothing has yet been said concerning the collection of moneys.
With the small operator, particularly the farmer-operator, the collec-
tion of money is usually a very informal matter. Cash is collected
either from the shipper or from the consignee, according to previous
understanding. Sometimes even the formality of a receipt is dis-
pensed with. Where regular patrons furnish a dependable load,
arrangements are often made for rendering weekly or monthly bills to
these shippers. This necessitates more complete and careful book-
keeping on the part of the operator, but is more desirable from point
of view of the regular patron, who may not always have the exact
change to hand to the truck driver when he calls for or delivers the
goods. In any event, financial transactions should be marked by the
passing of documents, whether these be receipts, receipted bills of
lading, or other evidence that money has changed hands.

KEEPING COST RECORDS.

Having established a motor route, it is imperative that adequate
records be kept. In an investigation covering over 60 routes, the
Bureau of Markets found numerous instances where operators who
thought they were making a profit as a matter of fact were gradualby
using up the original investment for current expenses. It is obvious
that a man who has no clear idea of his costs of operation cannot

24 BULLETIN NO. 770, U. S. DEPARTMENT OF AGRICULTURE

Form M.T. 1. U. S. DEPT. OF AGRICULTURE, BUREAU OF MARKETS.

DRIVER’S DAILY REPORT CARD.

DA MUA DIC eae aie hag ieee Uh Bt tn Aeon cl na RO es Gi A.M.

Total mileage for day (os Peis a RG Gn Te ean Bee
AOL GL VOCs OULD OW dc eee ee ee eee lbs.
otaleloddstnDOUN Gee ee Ibs,
INO. Of -CEWUCLY Of piGhe-Up. SUO Pp Sixes Bee ee
Fours.with helpers oa en ee GOS bane eaten
GOSOUNG US CO .c os nee a Gls." @=5 sae C
(OQ) SUE ISAO RE Se fiat trees APNE a oa aie DAW S| ene ee c
Grease Use dn 23 ete ea Nes [bs @ee es C
Cost Of sre pars Cup Gn) ae en ee ee
Dame land Ap OVEN C POS ee Se ee hrs.
TESCUIVCS CLG ALOU Sener ee ec cen ae ee ee
FL OULS WOE PUMNBAG or ccccnccsnecoreerccnessccncee IRE OSON. Sen See oe ene es

wanna eee e ences annnnnseeetennnseececenennsnanteeeeewrnteneeennnseeeeennns cee e tana See ee ESE e eee nnn nnn nn nnn nee ee ee ew nnn ewan ne eee ene nn nnn ne nnn mnenne nent hare enna ae nnnnnnnen seen annees see

Oras eereennn cee saeanncceseswansee ees nnnseneetmnneuenaneee eee ann nnnnannnnsee een seee sana sen ee enna see eehnnn annem n anne nae ene e nn Menem enna et eR ee mannan ween ee nnes epee tnn-ennnnn=n-seeeeennnseeree

CondyitOn oj vOad sn. eS Se Se oe eee ee

I SILI OY EL ele gi ae need eee ee ene ei eee Sa a Re

One een nena nn nnn neem wenn mene eee enn nana eee eetanenwn sees e nnn sn eee ewnne ss eeenwncnnnaennnseneeeaesesennnnannannnnesenee

Driver

institute changes in business management which may be necessary or
desirable from time to time. Investigators have found records of
every sort, ranging from informal notes in a pocket note-book to
elaborate auditing and accounting systems. The small operator is the
chief offender in this connection, because he understands little of
business records and is not disposed to add to his daily burden of
work ; elaborate truck cost systems seem too complicated to him. The
Bureau of Markets has placed some cost accounting forms with several

sip A ek naa
eee _

MOTOR TRANSPORTATION FOR RURAL DISTRICTS 25

co-operating motor truck operators, for the purpose of gathering data
on costs of maintenance and operation. The forms may not have been
ideal for the purpose, but a number of operators found, to their ‘sur-
prise, that keeping complete and accurate records was not the im-
possible task which it appeared at first. It is not desirable to indicate a
complete system of accounts in this bulletin, but the “Driver’s Daily
Report Card” on page 24 should prove a satisfactory basis for any
permanent cost recording system. This form has been used successfully ©
by the Bureau of Markets in cooperating with a large number of rural
truck operators. It may not prove satisfactory under all conditions,
but it is offered as a suggestion to those operators who desire to secure
regular reports from their drivers each day.

The information conveyed by the driver’s daily report card, coupled
with that in the hands of the owner of the truck, can be transferred to
permanent records of a type desirable to the owner. Whatever system
is adopted, this one fact must be kept in mind, that periodically it
should be possible to balance all receipts against all costs, to determine
profit and loss. Any system which will enable the owner to do this
without too much effort can be used.

UTILIZATION OF THE FARM TRUCK.

There are an increasing number of farm trucks, particularly on
farms adjacent to large cities. Not all these trucks are loaded to full
capacity on their periodical trips to the city. Few farmers have their
business so arranged as to permit the use of the truck to its maximum
capacity regularly. Many farmers need a motor truck, in spite of
the fact that they are unable to use it to capacity on a regular basis.
Such farmers have gradually begun to haul a part or all of their
neighbors’ products to market and in some cases, this practice has led
to the establishment of a regular route. Where the business has
warranted, farmer-owners have increased their facilities for hauling
goods, and many substantial rural routes are the outgrowth of the
individual farm haul. Some farmers have been enabled to purchase
trucks because of the fact that their own business, coupled with that
of their neighbors’, has been sufficient to warrant the purchase of a
truck. It cannot be doubted that the motor truck as a community
institution will be increasingly important. The farmer who is hauling
for his neighbors is performing a useful function. Such practice is
susceptible of expansion and the farmer-operator can usually offer
attractive rates to his neighbors. Farmers needing a motor truck for
part time service would do well to investigate the possibilities of
business in their neighborhoods. It has been found in several instances
that co-operative action has proven feasible and the subsequent forma-
tion of a farmer’s association has resulted. This feature of the motor
hauling business is distinctly worth serious consideration by those
who may be interested.

26 BULLETIN NO. 770, U. S. DEPARTMENT OF AGRICULTURE

THE RETURN OR SUPPLEMENTARY LOAD.

The success or failure of many routes has depended largely on the
ability of the truck owner to operate his truck at all times with loads of
sufficient capacity to return at least a moderate profit. Too many
routes have been started where a good one-way business was secured
and the operator felt justified in returning with empty trucks. It is
_ unsafe to generalize, but it may be definitely stated at this point that
practically no route has ever been successful which has depended for
its existence on a one-way load. Where truck operators have been
farsighted enough to provide for even a partial load on the return
trip, the business has offered a fair promise for success. Many of the
more successful rural motor routes now in existence have achieved
their success because of the fact that before operations commenced, the
return load was arranged for. Those who contemplate embarking in
the rural hauling business, would do well to look into the possibilities
of securing contracts for supplementary or return loads, even. though
such contracts promise to pay little more than the cost of operating the
truck. Most rural operators return from the city bringing back loads
of general merchandise for country stores or supplies for farmers
along the way. Where the operator makes it plain in advance that
he proposes to cater to the merchant or farmer who makes his pur-
chases in the city, he finds himself supported by a more or less perma-
nent class of business which, while possibly not showing a very high
net profit, makes it possible for him to handle his other business on a
closer margin and with greater net profit to himself.

In many districts there are certain periods during which there is
a heavy local demand for transportation facilities. Truck owners nave
taken advantage of this condition in many districts and have greatly
improved the financial condition of their business. Special contracts
for hauling outside of schedule hours are often exceedingly profitable
and sometimes make it possible for the regular route to be operated
regularly.

In general, it may be said that too few operators realize the im-
portance of utilizing their trucks to full capacity at all times, ard
many failures can be traced to the fact that operators have tried to
secure all of their profits from a one-way business.

THE CENTRAL TERMINAL.

A noticeable feature of the operation of rural motor routes into and
out of various cities, which came under the observation of investiga-
tors of the Bureau of Markets, was the lack of central receiving or
distributing stations. In each city the operators maintained their
own individual stations and each carried on his business independent
of the business of others.

MOTOR TRANSPORTATION FOR RURAL DISTRICTS Zi,

Where a number of independent routes have their terminals in a
given city, the over-head expenses incident to the maintenance of
individual terminal stations are multiplied many times, while the
advantages of a central terminal are lost altogether. These advantages
are very real. In the first place, the establishment of a central terminal
for a group of motor routes is in itself an advertisement of the service

Fic. 5.—The peas in this load will go directly by motor truck to the dealer at the
market 15 miles away and arrive in fresh condition. ‘This is a concentration plat-
form, to which perishable products are brought from all directions.

in that the attention of the shipping public is directed toward the
possibilities of motor transportation. The use of the central terminal
encourages and facilitates the transfer of goods originating on one
route and destined to some point on another route. The problem of
city delivery, which is a serious one in large cities, can be solved by
the establishment of a common delivery service, supported by all
operators who use the central terminal, and obviating the need for
operating heavy trucks to scattered points in congested districts for
the purpose of delivering relatively small consignments. Last, but
not least, the use of the central terminal would effect some very ma-
terial economies on such items as office rental, clerical assistance.
telephone charges, heat, light, and related expenses ordinarily incurred
with the maintenance of terminal facilities.

In view of these facts, the central city terminal is recommended to
the consideration of groups of motor truck operators who maintain
individual terminals. A central terminal company can possibly best
be organized as a joint stock corporation. Expenses may be pro-rated
on the basis of the volume of business transacted through the terminal

28 BULLETIN NO. 770, U. S. DEPARTMENT OF AGRICULTURE

by each contributor to the enterprise. It is realized that competitive
influences might offer obstacles to the plan indicated, but the operation
of such a terminal as the one herein described could be made independ-
ent of ordinary competitive factors.

‘If the motor truck as a freight or express carrier is to compete
successfully with other carriers who have occupied the field for a
longer time, the business must be organized on a basis which will com- |
pare favorably with the business of older and better established car-
riers. Central terminal facilities are just as necessary for motor routes
as for other common carriers.

BUSINESS ARRANGEMENTS FOR STABILIZING THE BUSINESS OF
- -THE RURAL MOTOR OPERATOR.

Mention has previously been made of desirable business features 2
which © “should ‘be incorporated in the practices of all rural truck.
operators. Among those mentioned were the determination - of fair
rate bases, the keeping of adequate cost and operating records; and the
maintenance of dependable schedules. It is desired, in this connection,
to direct attention to additional features which, if incorporated in the
business of the rural motor operator, probably would do more to -
place the industry on a par with rail carriers than would any other
changes which could be made. Reference is made to the use of a
Standard Bill of Lading and the adoption of adequate insurance

coverage. = ee
THE STANDARD BILL OF LADING.

A satisfactory bill of lading should bind the operator to the obliga-
tions of a common carrier and should set forth the extent of his
liability very clearly. It should be designed so as to permit the trans-
fer of goods from one carrier to another. In addition to the features
of the ordinary railroad bill of lading, it should include some of the
features of the invoice and the expense bill so as to obviate the need
for a large number of forms for a relatively small business. The
accompanying form for a Standard Bill of Lading is offered as a
suggestion to operators who desire to standardize their shipping docu-
ments. It will be noted that it is modeled, in a general way, on the -
ordinary “Uniform Bill of Lading,”’ used by the railroads. Certain
important changes have been made, however; to conform to the needs
of the motor transportation business. The form contains certain
items not ordinarily incorporated in the regular bill of lading, such as
statements of value and shipping charges. While these are not a part
of the ordinary bill of lading, it seems best to refer to the specimen
document as a bill of lading, although it also includes the essentials of
the invoice and the expense bill. It should be remembered that laws
governing the business of common carriers vary in different States and
in some cases it may be necessary to modify certain provisions of the
suggested bill of lading to accord with existing laws.

29

: , wae OY
De a are Oa eee ices ot ee “M OoOo8a &
Se 2 OS Seo Bre Se Son 2.5 Se es
hse tam as Vea YY Sa) OR u una,

Gee ee ee te 2Cyl ead eS
to LG cee SEC seprusdan esi ae wn o LES
ib . on a re) (SPEED)

Bie OO ee. Sees tn Be op Saas ta ep aes

Se ayes y dey OO eas en ar eis ay 2S °o 3 SPS

eee eo seo SS u Go n = AD ts
eRe ese One SO ale te DO) Leet
delay occurring while the property is stopped and held in transit

at the request of the shipper, Owner, or party entitled to make
such requests, or resulting from default or vice in the property,
or strikes, or the death, injury or escape of live freight.

Sec. 2. In issuing this bill of lading this company agrees to

transport only over its own line, and except as otherwise pro-

ared bears to the

sins ih @p) uw ie CO Sh ay

) w, ol Sr =) SPW) = 3 Gt ov 2 8
sok Pa a eet ge arb! 4 aa see Ops
O, ois an SCngurwtves, bf Es Oe ss

Oem (D) ue) ep al) 2 (GverS B) YO o
Sel Dit IS oe BOrn Oo hace Ss G-a G5
SES Ess He gee eS a
ag 7 Oe e Ong San A gy oon Gene SSS
Sey Ous laden Onc Oba Ss Ome) Eo one @ ios gas
H OVA GE stares CUR, tases 5 O° n = ale ee ey
OLOL One. 6a = 2 BS owe UO escneks
5 en on
oO eerie UPse .e@e oS on Pd ee
eh fl f ee a =e see _ =
terniitial subject to a reasonable charge for storage, and the

liability of this company shall be that of warehousemen only; or
if such goods are herein consigned for delivery to a specified
address other than the terminal of this company, the liability as
common carrier shall terminate upon tender for delivery at the
sidewalk or receiving platform of the consignee, and if the goods
are not accepted on such tender, they shall be returned at the

expense of the owner to the terminal of this company and held
vided by law, acts only as agent with respect to the portion of » there suhiect ta a reacanohla charea fae ata-n~- aa ve
(@4AO)
(‘owes BZuinsst Jarssed Jo Jusse pue soddiys oy} Aq pausis 9q 03 Zulpey jo [Iq sty)
SELLE LESS SHOTS SSH OSS TSS CSOT SST SSCS SSH SSS SS SASS SESS SHER SSSSSSSE SSS ESE HSK E SESE SSH SSSEHS ESE SS Tod Oe OES Oe OSE SFOS HE CEE SEE SH EEE SSEE SS DOSES ESSE IEEE ESET ESSE ESET ESSE SESE EEE REE R EEE REESE ESSER RRR RR SEE ESHER SRS SRR H SRS S SSK RSS Idd
TE) Ng a ea ag ee ace ee se SUdG as
(‘sadieyo 0} peppe eq 0} oo ul 33e1 lie} 9Yy} 3e VdUeINsUT ‘punod sod s}U99 0G ULY} 19}B013 SI PoIe[Iep en[eA JT)
Tae eee aes $ ST YIM JO on[eA poseofot IO Pote[Iep 9 LL

epee —$ 3021109

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dAISH[OX9) AJOAI[IP uo
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easy jAeSUI ‘gq ‘O ‘9

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eee wee ween aw ween nnannn | wae

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wemene | eenn ens eeees on ssaneneens | Baan naan anne sae ene nena ae

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Seeman nen an mae an ewan ane | wae

wee enw e neem wnnnee | enn nen

P2TT!q St yuoudiys ory

STANDARD BILL OF LADING.

Ce Company
Shippers’ No

Straight Bill of Lading—Original—Not Negotiable.
g—Origina ot Negoti Agent’s No..

RECEIVED, Subject to tariffs in effect on the date of issue of this original Bill of Lading, the property described below in
apparent good order except as noted (contents and condition of contents of packages unknown), marked, consigned, and destined as
indicated below, which said company agrees to carry to its usual place of delivery at said destination. It is mutually Pra as to each
carrier of any or all of said property over all or any portion of said route to destination and as to each party at any ine interested
in all or any of said property, that every service to be performed hereunder shall be subject to all the conditions, whether printed or
written, herein contained (including conditions on back hereof), and which are agreed to by the shipper and secented for himself
and his assigns.

IAN TrESSKOMECOMS 1 S110 Tyra teeta etree es eee eee ee

Terminal of this company. Strike out one
Store door of consignor not used.

Consigned to

NCC SES Se eee a a ee —City of...
Terminal of this company at Strike out) deli s
For delivery to | Store door of consignee at I { i Sea ieee
Y NddrenswWasove iniven! Mot desired, © (ers emeccecceceeeeeeeseeemeemsneceencecceceeeeeemceennecnnceccenee eeeeennnnnenenereeeneemcnnsnenseneenenesimtese
Route
No. Value of Weight or bulk subject
Dackanes| Description of article. article, ‘Asucorection® Shipping charges.| War tax.

If charges are to be pre-
paid write or stamp
here

Received
to apply in prepayment
of the charges on the
property described
hereon

Agent or Cashier

If charges are to be col-
lect, write or stamp
here

“Charges Collect”

Where shipment is billed
C. O. D. insert here
amount to be collected

on delivery (exclusive
of shipping charges). -

Collect ss

The declared or released value of which is $_..____._.-..- —-
(If value declared is greater than 50 cents per pound, insurance at the tariff rate in effect to be added to charges.)

DEUS ee re oe an Per ees
(This Bill of Lading to be signed by the shipper and agent of carrier issuing same.)
(OVER)

CONDITIONS:

SECTION I. The carrier or party in possession of any of the
property herein described shall be liable for any loss thereof, or
damage thereto, to the extent of the value declared in this bill
of lading, except as herein after provided.

No carrier or party in possession of any of the property herein
described shall be liable for any loss thereof or damage thereto
or delay caused by the act of God, the public enemy, quarantine,
or the authority of law, or the act or default of the shipper or
the owner, or for difference in weights of grain, seeed or other
commodities caused by natural shrinkage or discrepancies in
public weights; and, except in cases of the negligence of this
company or its agents, it shall not be liable for loss, damage or

or in case of failure to make delivery, then within two years
and one day after a reasonable time for delivery has elapsed.

Sec. 4. No carrier will carry or be liable in any way for any
documents, specie or for any articles of extraordinary value
unless a special agreement to do so and a stipulated value of the
articles are endorsed hereon.

Sec. 5. Property not removed by the party entitled to receive
it within forty-eight hours (exclusive of legal holidays) after
notice of its arrival has been duly sent or given, as regards goods

<5 | peas bad ' , a4 < ~ 2

e

A. A sn enn oe

MOTOR TRANSPORTATION FOR RURAL DISTRICTS 29

INSURANCE ON LOADS CARRIED BY MOTOR TRUCKS.

The visible assets of the railroad, express=company, or boat line
offer assurance to shippers that the carrier is financially able to settle
claims for damage to goods in transit. The operator of a motor route,
particularly the small rural operator, can offer no such tangible evidence
of his ability to meet obligations arising out of damages to goods in-
trusted to his care. Until he can offer protection to his patrons, the
motor operator must labor under a handicap. The obvious solution
of the problem is to obtain adequate insurance coverage. Such in-
surance should be for the full value of goods intrusted for shipment
to the operator. The policy should cover all ordinary risks. Premiums
should be paid by the operator from revenues derived from transpor-
tation charges, unless the value of the Boods shipped exceeds a set
maximum,

Bearing these facts in mind, the following are offered as ere cas
for provisions to be incorporated in a satisfactory policy:

Provisions to be Incorporated in Policies Covering Shipments by Motor Truck.

Hee ORTACCOUMMPO Re eee tae tte a na OCG ae a les ae ae ne as assured, or for
account of whom it may concern, but warranted not to cover the interest of
any alien enemies, including such persons, co-partnerships or corporations as
now, or may hereafter appear in any Enemy Trading List issued by the War
Trade Board of the United States of America.

2. Loss, if. any, payable to the assured or order.

3. On all kinds of lawful goods and merchandise of every description held
in their custody as warehousemen and forwarders, but only while contained in
or on the following named and numbered automobile trucks. Whenever necessary
and for such periods of time as shall be necessary, the assured shall be privileged
to substitute any motor truck or motor trucks for those herein specified pro-
vided the details of the proposed substitution are reported to the assurers in
advance and an additional premium paid if required.

4. It is the purpose of this insurance to indemnify the assured to the amounts |

which they are obliged to pay-on such goods or merchandise by reason of loss
or damage only by (1) fire, including lightning and self ignition; (2) accidental
collision of the motor truck with any other’vehicle or object, moving or sta-
tionary; (3) overturning or skidding of the truck; (4) collapse of bridges;
(5) perils of the seas, lakes, rivers or inland waters, only while on ferries or
transfers; (6) theft of an entire shipping package or of over 5% of. shipments
made in bulk, but excluding all pilferage; and excluding the theft by any em-
ployee of the assured, or the shipper or his employee, or the consignee or his
employees; also excluding all theft of merchandise accepted ‘for delivery within
the limits of the city, town or village in which the goods’ are received for
shipment.

5. Valued at amounts declared By the einder to the transportation com-
pany, but not exceeding actual invoice value or, in the absence of invoice, the
cash market value at time and place of shipment. In the event of the amount
declared being less than the invoice or cash market value, as above, any

partial loss shall be adjusted in proportion as the value declared bears to the
invoice or market value.

CONDITIONS.

Section I. The carrier or party in possession of any of the
property herein described shall be liable for any loss thereof, or
damage thereto, to the extent of the value declared in this bill
of lading, except as herein after provided.

No carrier or party in possession of any of the property herein
described shall be liable for any loss thereof or damage thereto
or delay caused by the act of God, the public enemy, quarantine,
or the authority of law, or the act or default of the shipper or
the owner, or for difference in weights of grain, seeed or other
commodities caused by natural shrinkage or discrepancies in
public weights; and, except in cases of the negligence of this
company or its agents, it shall not be liable for loss, damage or
delay occurring while the property is stopped and held in transit
at the request of the shipper, owner, or party entitled to make
such requests, or resulting from default or vice in the property,
or strikes, or the death, injury or escape of live freight.

Src. 2. In issuing this bill of lading this company agrees to
transport only over its own line, and except as otherwise pro-
vided by law, acts only as agent with respect to the portion of
the route beyond its own line.

port

roperty Dy any
particular % rin time y particular marlet, or other-
wise tnan with reasonable despatch, unless by specific agreement
endorsed hereon. Every carrier shall have the right in case of
physical necessity to forward property by any route or means
between the point of shipment and the point of destination, but
if such diversion shall be made the liability shall remain as if the
entire carriage were made by the receiving carrier.

In consideration of the value herein declared being used as a
basis for determining the rate to be charged, the amount of any
loss or damage for which any carrier is liable shall be computed
on the basis of such declared yalue of the property as herein
stated under this bill of lading, including freight charges if paid.
Except, in case the actual cash market value of the goods carried
shall be less than the declared value, then settlement shall be
made on the basis of actual cash market value on the date of
shipment, but the shipper shall in no case be entitled, after a false
declaration of value, to any refund of charges made.

Claims for loss, damage or delay must be made in writing to
the originating or delivering carrier within thirty days after
delivery of the property, or in case of failure to make delivery,
then within thirty days after a reasonable time for the delivery
has elapsed ; and suits for loss, damage or delay shall be instituted
only within two years and one day after delivery of the property,

’

or in case of failure to make delivery, then within two years
and one day after a reasonable time for delivery has elapsed.

Sec. 4. No carrier will carry or be liable in any way for any
documents, specie or for any articles of extraordinary value
unless a special agreement to do so and a stipulated value of the
articles are endorsed hereon.

Sec. 5. Property not removed by the party entitled to receive
it within forty-eight hours (exclusive of legal holidays) after
notice of its arrival has been duly sent or given, as regards goods
consigned to the terminal of the carrier, may be held at such
terminal subject to a reasonable charge for storage, and the
liability of this company shall be that of warehousemen only; or
if such goods are herein consigned for delivery to a specified
address other than the terminal of this company, the liability as
common carrier shall terminate upon tender for delivery at the
sidewalk or receiving platform of the consignee, and if the goods
are not accepted on such tender, they shall be returned at the
expense of the owner to the terminal of this company and held
there subject to a reasonable charge for storage, or at the option
of this company removed to and stored in a public or licensed
warehouse at the cost of the owner and there held at the
owner's risk and without liability of the carrier and subiect to

a lien freight

ae
4 i

; Fay} ~ po cluding
and other lawful charges, including

other charges

a lien eror

Sec. 6. Every party, whether principal or agent, shipping
explosives or other dangerous goods without previous full written
disclosure to the carrier of their nature and having the same
expressly endrosed hereon, shall be liable for all loss or damage
caused thereby and such goods may be warehoused at owner's
risk and expense or destroyed without compensation.

Sec. 7. The owner, or consignee, shall pay the freight and all
other lawful charges accruing on said property, and if required
shall pay the same before delivery. If, upon inspection, it is
ascertained that the articles shipped are not those described in
this bill of lading, the transportation charges must be paid upon
the articles actually shipped.

If any C. O. D. is not paid within thirty days after notice of
non-delivery has been mailed to the shipper, the carrier may, at
its option, return the property to the consignor.

Sec. 8. Any alteration, addition, or erasure in this bill of
lading which shall be made without an endorsement thereof
hereon, signed by the agent of the carrier issuing this bill of
lading, shall be without effect, and this bill of lading shall be
enforcible according to its original tenor.

as

Sige mgr Pee

30 BULLETIN NO. 770, U. S. DEPARTMENT OF AGRICULTURE

6. It is understood and agreed that the assured shall keep a record of all
shipments covered hereunder, showing shipping points, destination and value
of each shipment, which record shall be made prior to shipment. It is also
expressly understood and agreed that no insurance shall be in effect for which
record is not entered on such forms as shall be prescribed by the assurer. All
shipments to be reported to the assurers, or their appointed agents, at the end

ofveacht...32 and premium payable monthly at the rate Of- ssc
per hundred dollars.

7. This policy shall not be vitiated by any unintentional error in description of
route or interest, or by deviation, provided the same be communicated to the
assurers as soon as known to the assured and an additional premium paid if
required.

8. This policy to attach and cover on all shipments made on and after noon

9. If at the happening of any casualty, the assured or owner of the goods
has any other insurance, identical with or similar to the terms of this policy,
whether prior or subsequent thereto in date, or simultaneous with this in-
surance, then these assurers shall not be liable under this policy for a greater
proportion of any amount of the property insured than the amount hereby
insured shall bear to the whole insurance in effect, whether valid or not.

10. It is also agreed that the assured in claiming and accepting payment for
any loss, damage or expense under this policy, thereby and by that act assigns
and transfers to these assurers all right to claim for such loss, damage or ex-
pense against any person or persons, town or corporation or any government,
and if so requested by these assurers shall prosecute therefor at the charge and
for the account of these assurers, to the extent of the amount of the loss,
damage or expense, and the attendant expenses of recovery paid and incurred
by these assurers on account of said loss, damage or expense, or for the re-
covery of the same, shall be a lien upon such property hereby insured and
recoverable against the assured.

11. It is mutually agreed that the acts of either party, or their agents, in
securing, preserving, or recovering the property insured or any part thereof
shall not be considered as prejudicial to the interest of either party as set
forth in this policy. The use of general terms, or of anything less than a
distinct, specified agreement clearly expressed and endorsed in this policy shall
not be construed as a waiver of any printed or written conditions or restrictions
herein contained. . | eee

12. This policy can be canceled at any time at the request of the assured
or by the assurers by giving notice in writing at least fifteen days before such
cancellation shall be effective.

It will be noted that in using the standard bill of lading, the operator
does not assume greater liabilities than those imposed by law on com-
mon carriers. Adequate insurance coverage, in turn, will protect the
operator who assumes such liabilities. The reporting form of policy
outlined above is probably the best form for the average operator in
that all goods, while in his possession, are insured for full market
value and settlement is made on that basis. The reports referred to in
Section 6 of the above policy provisions would be nothing more elabo-
rate than carbon copies of all bills of lading issued by the carrier who
takes out this form of insurance coverage. Should State legislation

MOTOR TRANSPORTATION FOR RURAL DISTRICTS 31

covering the business of insurance companies be in contravention of
any of the suggested policy provisions, it will be necessary to modify
the language of these provisions to accord with the statutes.

The use of the standard bill of lading and the adoption of the fullest
form of insurance coverage are strongly recommended even to the
small operator. Most operators will prefer to offer free insurange to
the shipper on all goods valued below a certain maximum. It is sug-
gested that a fair maximum for free insurance is about 50 cents per
pound. When goods are valued at more than 50 cents per pound the
shipper should, in addition to the regular shipping charge, be obliged
to pay for the insurance coverage on the valuation in excess of 50
cents per pound. A scrutiny of the clause near the bottom of the
standard bill of lading will make this point clear to the reader.

Only by the adoption of modern business methods can the future
of the motor express business be assured. Many operators will hesi-
tate to adopt the two important features, which have just been dis-
cussed, because they will fear complications in their business and the
assumption of too great a burden of detailed clerical work. Business-
like operators, who have given these features a thorough trial, have
been surprised at the ease with which they have been able to accommo-
date their business to these changes. The small operator will find that
the slight extra burden of work which he is assuming will be more
than paid for in the increased business coming from patrons who are
confident that. any losses will be promptly and properly adjusted.

LIMITING FACTORS.

The chief factor limiting development in the-field of rural motor
hauling is the cost of operation as compared with that of railroads,
electric lines, and boat lines. Cost of operation offers a problem which
can only partially be solved by the operator. Careful attention to
effecting economies may offset this limiting feature to some extent,
but in the main the operator can not change his costs of operation to a
very marked degree. This means that he must plan his business so
that in competing with other carriers he is not working on an unequal
basis. He must cater to a class of business which will pay a small
additional premium for better service. To supplement this he must
offer a speedier, more dependable or more complete service. For
instance, many operators are successfully competing with other car-
riers whose basic expenses are lower because goods are picked up at
the door of the shipper and unloaded at the door of the consignee with
a minimum of handling in transit.

The second important limit to the extension of rural motor hauling
is the condition of the average country highways. Road conditions
bear a direct relation to operating costs. In extreme cases bad roads
may prevent the use of motor trucks at all. In other and more com-

32 BULLETIN NO. 770, U. S. DEPARTMENT OF AGRICULTURE

mon cases, poor roads may cause operating costs to be so high and
truck operation so uncertain that the business is foredoomed to failure.
A third limitation to rural motor transportation, which has come to

light under actual operating conditions, has to do with the financial ©

responsibilities of the carriers. This feature has been thoroughly dis-
cussed in the paragraphs referring to the use of a standard bill of
lading and the securing of adequate insurance coverage. The limita-
tion is one which need cause no fear to the business-like operator who
is willing to make the necessary Tee gS8 in his business so that he may
be on a par with other carriers.

The limitations herein mentioned must be carefully considered be-
cause they are real factors in actual practice. All can be met and
solved by the business-like operator. It is to be expected that they will
be solved as a better knowledge of the rural motor business is obtained
and the possibilities of this form of transportation become more
apparent both to the operator and to the prospective shipper.

CONCLUSIONS.

The foregoing discussion, although general in character, has been an
attempt to bring forth one thought, viz; that under proper conditions,
and where a fair knowledge of the limitations and difficulties obtains,
motor truck transportation promises to play an important role in
rural districts. 3

Mechanically, the experimental stage for the motor face has passed.
Its worth and its efficiency have been demonstrated very thoroughly
under the most trying circumstances.

As operating equipment in-a regularly established transportation
business, where the financial difficulties faced by the ordinary common
carrier are in evidence, the motor truck may still be considered as in
the experimental stage. The problem of lifting it from this experi-
mental stage is one that depends for its solution on careful planning
and good business judgment rather than on fe mechanical per-
fection of the truck itself.

If the prospective operator can force himself to consider his motor
equipment as merely a means toward an end, and will devote himself
to a consideration of his business problems, his chances for success will
be increased manifold. The motor truck as a common carrier has
come to stay, but the measure of success for the individual will

depend, as in other lines of business, on initiative and a proper sense |

of business proportions.