The sun., 1919-08-31
COMMON SENSE IN ]
HIRING TRUCKS
Cheapest Rate Per Day Is Not
Always the Most Eco
nomical.

escape the cares of truck operation and
maintenance and because the idea has
gained footing. that trucks cannot be
operated economically except In large
feets. AS result a type OF enterprise
known as jitney trucking has bren given
birth, composed for the most part Of ex-
Transfers and chauffeurs, who, thanks
to liberal credit extended by truck deal
ers. are able to do a transportation busi-
ness on a shoestring.
There are scores OF cases on record
where a jitney truckman. starting with
fewihundred dollars saved or borrowed
from friends, has been able to build up
n business employing from five to
score of trucks, has paid for his vehicles.
earned the goodwill Of his patrons and
established an Independent business by
which he derives. a comfortable income.
This is the sort OF individualstic enter
prise in which true Americans take pride.
Many others. impressed by the success
which few of the pioneers were able
10 achieve, failed in the attempt to do
the same thing. To-day in all the prin-
cipal cities Of the country there are
scores of jitney truckmen with their
vehicles partly paid for who are waging
a warfare of ruthless price cutting.
Daily statesmen of motor trucks are
business houses, who refuse to consider
the purchase of trucks so long as they
are able to rent trucks for less than
they can operate them themselves.
Most of these men know that the low
rates at which they are able to rent
trucks are due to the ignorance Of their
operators. This ignorance Is chiefly ig-
norance of costs. One of tho funda-
mental errors which jitney truck opera
Tor H. IA.
equipment and assuming that 1t can be
operated for as little as the high-grade
and usually high-priced trucks which are
found in the fleets of successful trucking
contractors. Your jitney truck operator
Heaps his accounts by check-stubs and
notes scrawled on the backs of old en-
veopes At the start he is told by an
interruptions salesman what his operat-
ing costs should be. These estimates
usually consider gasoiene. oil. tires and
drivers. wages. To this the operator
adds the amount of payments he must
make on his notes and the cost of garag-
ing the vehicles. He totals this and ar
rives at a cost OF $40 or $12 n day for
n S-ton truck. He then gets the prices
which other operators are charging and
fixes his figure accordingly. usually being
willing. TO slightly underbid his COM
petltors. His price may be, SIS day.
\. this he figures IS day profit on
each truck. 3D..
Successful. operators know that II they
are to continue in business. any length
of time they must charge depreciation.
The depreciation rate will vary with the
quality Of truck from a maximum, of
10000 miles for low priced truck to
100000 miles for the highest class of
vehicle They know that the interest on
the investment must be charged as an
INST I'm hal
sum per mile or per month, for main
teRance and repairs must, be charged,
and that this must not be put off until
the eventually occurs, but that from the
time the truck first turns it's wheels they
must begin piiing up reserve for this
purpose. They know that insurance.
particularly theft. liability and fire COW
erage, must be taken out, and that the
premium is part Of the cost OF running
the truck. They recognize their own
efforts as worth money and legitimate
charge against the truck. In other
words they realize that overhead is
big charge, and that idle time is expen-
sive time. Consequently their rates are
higher than their unsophisticated breth-
rem.
When competition becomes keen II is
the we'll informed operator who is the
first sufferer. He knows that his ire
sponsible competitors are losing money
every mile their truck operates He
knows that It is only a question Of time
before they will be forced to give up
the business because their trucks will
have been worn out and no sinking fund
will be available to repair or replace
them. He dare not cut his own prices
and yet he has the greatest difficulty
In competition.
To the average business house rent
ing truck service these facts are either
unknown or ignored. The average man
renting trucks rents for the lowest
figure for which he can secure service.
Many of them after using jitney service
for years are contented. Ask them how
many miles the trucks run, what the
average load amounts to or how many
hours are wasted daily en- route and
they express supine indifference. They
know that three or four trucks report
daily for their loads and get them de-
nvered before night. They know that
every once in a while one of the regu-
lar trucks gives trouble during the day
and is replaced for a space by another
To suggest to such as these that II
would be good business to rent their
vehicles Of the more responsible trucking
concerns, paying a higher fee. or that
they buy their own feet and hire a good
man to manage deliveries, is TO occasion
their scorn.
Yet there are thoughtful concerns who
are convinced that this is the wise
course. Looking forward, they see the
time when the jitney operator will be
forced to withdraw, to be replaced by
another one, perhaps as green as the
last, with attendant disorder. They see
their deliveries trucked over the streets
in rough looking trucks bearing the
name OF a transportation company and
visualize the advertising value Of we'll
painted. clean truck bearing their own
name in attractive style. They forsee a
possible withdrawal of number of
jitney operators at once and a. strin-
gency Of transportation and exorbitant
prices resulting. The risk losing q
valuable load OF goods by fire or theft
/ unprotected by adequate Insurance OF
surety bonds, looms large as the price
J Of cheap truck hire.
Many Of them have investigated, look
ing deeper than the price of truck per
day. They have analysed the amount
OF work, expressed in ton-n1iles, which
4 hired trucks are doing. and have COM
pared this with the amount which could
be done by a well-managed fleet under
the watchful eye Of their own manager.
These studies have brought startling re-
suits at times, showing that half the
number OF trucks, in many instances,
are really needed. They have found
hired trucks deliberately loafng they
have found them doing other jobs on
time they have paid for. They have
even found the drivers Of hired trucks
responsible for loss of trade by inso-
lence to their customers.
In the building trade thu lovex+ hid