The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-01-03
MOTOR BUS Tine
SUCCESS uIESIN
COST ANALYSIS
BY D. c. FENNER.
Manager Public Works Department H..
ternational Mack Motor co.

Out Of the problems OF Increasing
traffic congestion In large cities, has
come q new understanding Of the con
Venlences and economies offered by the
motor bus, Its acceptance has doomed
older forms OF transportation Just as
tho surface cars. In their turn. sue
ceeded the horse cars aud stage
coaches.
In Boston the Eastern Massachu-
sets street Railway company. operai-
ing Ia the Lawrence district, is charS-
ing q Decent fare, while buses in COM
petition transport passengers on the
same route for ) cents. The street rail-
way company notified public officials
mat unless measures were adopted to
restrict motor bus competition, their
service would be discontinued Their
statement says that the time has come
when the public must choose between
street railway and motor bus service.
Although the bus licenses were revoked
by the city council. the publlc's choice
is indicated by the increasing monthly
loss this competition was causing the
traction company, which reached S25,-
700 In October.
Several crosstown surface car lines
N New York city shut down because
hey could not operate profttably on a
J-cent fare basis. Buses under mu-
nicipal control took their place, gave
the public quicker and more satisfac-
tory service for the same fare, and did
II profitably. The busses OF the Fifth
Avenue Coach company have mel with
phenomenal success, having already
Travelled a distance of more than No.
000,0 90 miles, In the words Of Mayor
Hylan, The day Of the street surface
cars has gone forever and II will not
be long before New Workers will have
trackless streets
In one year, ending Oct. 81. 1919, the
Chicago Motor Bus company clrTjed i'm
its buses Of 5l-passenger capacity,
I. Jog, 20s persons on 5S,O27 round trips.
This represents al Increase from a
daily average of 2,229 passengers in
1917 to 1886 in 1919, This COMPANY
has recently introduced a new type OF
bus with inclosed seats on top that will
accommodate 60 passengers
Although the universal use of motor
busses for passenger transportation Is
apparently inevitable, their success de-
Ponds entirely upon certain elements
of organization and operating methods.
Bus operators of the present and of the
future may well profit by the expert
ences of the so-called Jttney lines that
have failed through loose organization
n cut-throat methods TO competi-
ton. The majority OF these lines we're
operated by cx-chauffeurs and team
sters, who. because of the liberal credit
extended by truck dealers, could do
business with very little capital. AL
though their equipment was in most
cases inferior. they assumed that II
could be operated for as little as the
high grade and more expensive vehi-
cles that are found In the fleets of
successful bus line operators. The I'M
successful operator estimated the cost
Of gasoline. oil, tires and drivers wages
and added to this his garage rent and
interest on notes. On a basis of what
this cost him, plus his profit, he found
that he could charge a lower rate than
his competitors. Successful operators
know that expenses involving the fol-
/ lpu.tVr fIa11nG nNNtGf ln iu1nn tnfn nDn-
sideration:
FINED CHARGES.
Amortization reserve for deprecia-
tom.
Interest on investment.
theft, public liability and property dam
age, collision.
Overhead administration require
ments).
Taxes.
Licenses.
MAINTENANCE CHARGES.
Garage-Rent, heat, light, power,
etc.
Repslrs-Material and labor.
Qverhauling.
Painting.
Wrecking crew and equipment.
Mechanics and inspectors.
Battery and renewal charging.
RUNNING COSTS.
Oil.
Gasoline.
Tires.
Wages of drivers, dispatchers, super
intendents, etc.
Grease, kerosene and waste.
To calculate unit costs on which
rates may be based, II is necessary TO
secure a report from each driver at
items. A simple yet flexible form OF
monthly reports is that used by the
Suburban Transit company OF Plain
field. N. j., shown below. This COM
pany operates a fleet of IL Mack buses
In the vicinity Of Plainfield, and main
tsins a thoroughly up-to-date garaga
with storage and repair facilities.
The low rates charged by uniformed
operators lmperil the business OF those
who know their costs. Although the
informed operator knows that his com
soone or later be forced to give up
their business because they have no
reserve to repair or replace WORKOUT
buses, he is helpless to obtain bust
ness in the face Of their competition,
as he knows he can not lower his own
rates. Foi this reason, franchises
should be given only when there Is
assurance that the operator has made
Il careful study Of the undertaking.
An interesting analysis of the costs Of
motor bus operation was made recently
in New York city by the commissioner
of nlant and structures to the board Of
estimate. The proposal was for a per
manent acknowledgements system Of
bus lines and shows that 100 buses OPP
Grating on a scent fare basis can
be made to pay a profit of $376.S0 a
cay. The cost Of 100 buses is figured
at $3.50, GOO, spare parts at $4,000 and
garage equipment at $40, 900, a total in
vestment Of $3.50, 600. For maintenance,
the estimate provides $685., 600 yearly,
covering liability at $500 per bus,
garage cost at $3.50 per bus, and $50
chauffeurs at 81, 500 a year, Deprecia-
ton is figured at 30 per cent a year on
\ buses and 10 per cent a year on other
equipment, These items, together with
s provisions for q superintendent, start
ers and checkers, totals $40 per day
! for each bus.
T For running cos, 4 cents a mile is
allowed for gasoline and oil. 6ia cents
? for tires. ~ cents for repairs, a total
| Of Il cents per mile. TIL plant con-
{ templates the operation Of % BUSES,
eight being kept for breakdown ser
vice. At an average Of 80 miles a day
e per bus, the total bus miles per day,
viii he 1850, which, with the fixed
charges. brings the total cost OF opera
ton to 81. SPA. 20. At conservative es-
innate of 80, 600 scent fares. or a to-
mi revenue of So, 900 a day, the net
daily profits are figured at $376.S0. The
estimate does not include interest on
the investment, insurance, other than
liability, or state motor vehicle Ii
censo fees.
The Mack trucks are distributed To-
cally by the McRee Engine and Imple-
ment company.
PICKUP" AND fine