With Mr. Cabot’s figures this formula gives
x = 6.00 .50 - .055 = 60044.5 = 13.5.
Using the cost 25 cents per ton mile made up by actual averages compiled by the Motor Truck Association of America and 5.5 cents used by Mr. Cabot as the railroad cost charge, there results
x = 6.00 .25 - .05 = 60020 = 30 miles.
It will be noticed that this formula contemplates no terminal charge for the motor truck as it is expected to pick up and deliver the freight at the doors of the consignor and consignee and that the cost of doing this is absorbed in the cost per mile. The dividing distance between profitable rail and freight transportation, x, is seen by the formula to vary directly with the terminal charge and indirectly with the difference between motor and rail cost per mile. To lessen this distance is in the interest of the railroads and can be accomplished by decreasing the terminal charges and the cost of transportation per ton-mile. Express companies have for years accomplished this by employing the system of free collection and delivery, and railways in England do likewise. The motor transport companies will have to decrease their cost per ton-mile in order to increase the distance that it is profitable for the shipper to utilize motor trucks. If the difference in cost per ton-mile could be reduced to twelve cents with terminal costs at $6 per ton, and doubtless this may be done under favorable circumstances, the distance would be lengthened to 50 miles. This is probably the maximum motor truck haul which can in general profitably compete with rail transportation. With better roads, larger trucks, trailers, or, in special cases, with certain classes of goods and commodities, longer hauls will be profitable.
The distances which it seems profitable to do trucking are continually being lengthened. Forrest Crissey, writing in the Saturday Evening Post of December 16, 1922, relates a case in which household goods were hauled from Boston to Cleveland at a saving over rail rates and expenses incurred by delays of $417.50 on the shipment.
His figures summarized are as follows:
| Rail— | |
| Crating and Hauling to Station | $ 300.00 |
| Freight | 150.00 |
| Hauling and Uncrating at destination | 75.00 |
| Hotel Bill of Family of five, two rooms and board, while waiting | 525.00 |
| House rental while waiting | 67.50 |
| Total | $1117.50 |
| Van company’s charge from home to home | $ 700.00 |
| Calculated saving | $ 417.50 |
It should be remembered that certain kinds of goods, such as household, lend themselves readily to truck shipments. With this class of goods expensive packing and several handlings are eliminated. Such is true of much merchandise which can be delivered directly from the store of the seller to the door of the buyer; to many varieties of manufactured goods which are sold within comparatively short distances of the factory. Each case should be worked out for itself and all the various kinds of transportation used that prove to be practical and economical. Where large concerns like packing houses are supplied with railway tracks right to their doors, shipping in car load and train load lots is not only more economical but absolutely necessary where such large quantities are transported in refrigerator cars. But for distribution to towns near-by the truck is much more convenient and economical. It is impossible to say for so-many-miles it is cheaper to ship by truck, because each commodity must be considered individually in connection with the character of the roads, the conditions of weather and climate, and the time of delivery. While the case of shipping household goods alluded to above proved very successful the next one might meet inclement weather, the truck might have to remain out in the rain and some of the goods become damaged, as was the case of one such shipment that came under the writer’s observation. A single swallow does not make a summer, but the trend is no doubt toward much longer truck trips. And as the roads and vehicles become stabilized and standardized this will be even more evident. For example, milk collected at stations 50 and 60 miles from the large cities can be hauled in to market in large tank cars which are built somewhat on the thermos or vacuum bottle principle, the milk arriving at its destination cooler and in every way better than if hauled in small containers. The truck has a large field open for its especial qualities. Let it confine its operations to these and rail competition will not injure it.