Highways and Highway Transportation

by George R. Chatburn

Traffic between Towns.

—Wherever the roads are dependable and passable at all seasons of the year truck and bus lines have sprung up to ply regularly between the towns. The length of haul most profitable seems to be that over which the motor can make the round trip each day and have sufficient time at terminals for loading and unloading. Forty to 50 miles for trucks and 60 to 65 miles for buses seem to be negotiable and double these distances are proving to be practicable. In many of the states such enterprises have been declared to be common carriers subject to the laws governing such carriers, and must secure licenses to do business from the public service commissions. It is but reasonable that the public should be safeguarded and these concerns be required to take out insurance or give indemnifying bonds to cover loss of goods to shippers by carelessness or theft or injury to passengers by accident. On the other hand the licensed motor transport is entitled to protection against irresponsible truckers. The modern method of state regulation does not contemplate competition as an economic factor in the determination of rates and routes. The old doctrine of “everyone for himself, and the devil take the hindmost,” is certainly most wasteful. This is about the way that method worked. A starts a bus line between two towns. After he has run it a short time and built up a trade B, seeing his success, decides to put a competing bus on this same route. Then there is a period of competition. Rates may be cut and speeds quickened until each bus is running at a loss. This cannot continue indefinitely. The result is that either one man goes out of business or there is a combination of interests by actual coalescing or by a “gentlemen’s agreement,” so that there is practical monopoly anyway. The modern method is to regulate all common carriers as far as rates and routes are concerned so that each may make a justifiable profit. This may be tending toward socialism and away from individualism; it may be a violation of the Darwinian doctrine of a survival of the fittest. But that is departed from every day. Our cornfields and gardens would amount to nothing if the weeds were allowed undisputed sway.

It would seem to be the duty, therefore, of public service commissions to grant licenses to truck and bus lines, to establish routes and equitable rates, to require careful and complete accounting and to make public from time to time such items as the people may be interested in.

The Railway Commission of the state of Nebraska was, perhaps, the first public service commission to exercise the right of regulating highway transport (1918). Colorado, California, and other states soon followed. In California the matter came upon a complaint that adequate service was not given by the railway and the decision was:

“We are of the opinion that the public deserving transportation of freight and express ... is entitled to a more expeditious service than that at present being given by the Southern Pacific and American Railway Express.”

It went on further to state that notwithstanding their ability to give service the evidence was to the effect that it was not given, hence motor highway transport was licensed.

The first highway transport freight rates established by the Railway Commission of Nebraska placed the freight under four classes, describing 103 items. The rates were:

1st Class 20 c. plus (1¹⁄₂ c. per mile per 100 pounds).

2d Class 85 per cent of the 1st class.

3d Class 70 per cent of the 1st class.

4th Class 60 per cent of the 1st class.

In addition they established rules and regulations, standard bills of lading, etc. These rates have since been rescinded.

In Colorado two sets of rules were adopted, one for the prairie and one for the mountain division. For the prairie division the minimum charge was 25 c. and the mountain 30 c. per 100 pounds. The rates for motor truck hauling was made, for the prairie division, 30 c. per 100 pounds for 5 miles and for distances up to 100 miles graduated 5 or 10 c. for each additional 5 miles until they reached $1 per 100 miles. For the mountain division, the rate for 100 pounds carried 5 miles is 36 c., graduated to $1.20 per 100 miles.