Competing Power of Commercial Motors.
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Paper and Discussion at Manchester.
The pre-war rate for the hire of a single horse., lorry and man was about 12s. a day, and the load limit Of this unit, from 3 to 4 tons, With a' capacity of 3 or 4 loads per day. After making due allowances for items of additional cost, and for the fact that full loads are not maintained continuously, it will be found that the cost of e011eetion or delivery under normal conditions is in the neighbourhood of ls. 3d. per ton. In considering the journey work with horses, we can take the standard hire rate for a two-horsed team at 18s. per day, with a load capacity of 3 to 21 tons. After making due allowances, as in the previous ease, it will be found that the cost for a complete journey including return load and also including collection and delivery will be about 3s. 8d. per ton.
This cost will only apply where collection and delivery are performed by 51 the same. teany'tliat is, fin cases where the journey does not much exceed 8 or 9 miles in each direction. Under these conditions the cost per ton mile will be from 5d. to 5!2d. For journeys over 10 miles the collection and delivery would be; done by other horses whilst the team rested, and the cost is increased by the addition of, say, Is. 3d. per ton for the auxiliary service. For a 12-mile journey the cost will work out. at 6d. per ton mile : for 19 miles, at 41d. per ton mile : and for 171 miles '(the longest regular .horse journey of which I have experience) at4d. per ton mile.
Baaing our conelusicins upon the figureswe have arrived at, we may say that transport with horses, including collection and delivery, can be operated at
o4g a cost of from 44. to 6d. per ton mile, according to the conditions prevailing and the distance covered.
We now have to consider railway costs and the basis of our examination must of necessity be the railway rate for Various classes of goods traffic.
Unfortunately, no records are available from which we can learn the actual cost of goods transport by railway over given distances, and it is problematical whether it is known even to the railway management themselves.
What we do know, however, is that at ordinary rates, goods traffic in general is profitable to the railway companies. An examination of railway turns over a number of years will reveal that where improvements are evident, they are usually to be ascribed to economy in handling goods traffic, either by reduced train mileage or by an increase in the quantity of goods carried for a giten train mileage. On the other band, increases in passenger traffic are not frequently associated with reduced revenue. From these and other circurnStaoices the opinion has been deduced, and is generally held, that goods traffic is relatively more profitable to the railway companies than passenger ,traffic'-a fact which motor users should bear in mind..
One One other matter also requires special mention and that is that the rates charged by railway companies for different classes of goods do not bear. any definite relation whatever to the cost of handling the particular traffic.
As you will know the basis of all railway goods
rates is the railway classification list of eight classes, and the maximum charges authorized for such classes by the Railway Rate and Charges Order Confirmation Acts of 1891-2, for the principle underlying this method of fixing railway rates is that of regulating the charges for traffic to what the traffic will bear, and the result is that goods placed in a low class are carried the same distance for less money than goods placed in a higher class, although the actual cost of the traffic in each case may be the same.
In addition to the class rates, calculated on the aforementioned basis, there are many special rates in force between certain points, materially lower than the corresponding class rates, such reductions being granted by reason of the exceptional volume of traffic moving, or for other causes.
Tabulation of Pre-war Railway Rates.
Under such circumstances the competition of road motors with railways is sometimes quite easy, and at others quite the reverse. For the purpose of comparison I have tabulated the pre-war railway rates for the various classes of goods over different distances, and calculated the costs per ton mile for each distance.
It would be needlessly confusing if I were to read the whole of the figures contained in this table, which embraces five classes, viz., B, C, 1, 2, 3, and distances of from 5 to 50 miles for each class.
Briefly, however, it is found that for 5 miles the rates range from 30. to is. 3d. per ton mile according to class, for 20 miles from lid. to 7d. per ton mile, and for 50 miles from 10. to 40. per ton mile.
Generally speaking, the ton-mile rates for Class 3 traffic are about four times as great as Class B rates, and for 50 miles the ton-mile rates are about onethird of those for 6 miles.
Special rates will frequently be from 25 per cent. to 50 per cent, lower than class rates. From these figures it will be apparent that the ridnerability of the railways is greatest in traffic ranging from Class C upwards, and over distances up to 30 miles. Fortunately, most of the traffic for which motor transport is well suited falls within these classes, and the 30-mile radius is well within its capacity.
Railway Costs per Ton Mile.
Averaging the rates for distances from 10 to 30 miles, we arrive at the following costs for railway transport : Class 30. per ton mile, Class 1 ... 50. per ten mile.
Class 2 ... 6'd. per ton mile. Class 3 ... 6 d. per ton mile.
with special rates, as stated, from 25 per cent. to 50 per cent. less.
Commercial Motor Costs.
We now require to ascertain the cost of motor transport for comparison with the results already arrived at for •other systems. It is, of course, practically impossible to calculate a general figure of cost that will fit all circumstances, especially when it is remembered that, approximately, 50 per cent. of the traffic costs in motor haulage are of a more or less permanent natureand not variable to any extent
with the mileage run. Moreover, general charges for establishment and management do not increase in proportion to the number of vehicles operated, and, therefore, affect costs to a varying extent according to the conditions obtaining. I have gone into the question very carefully from every standpoint, both with regard to petrol vehicles and steam vehicles, making reasonable allowance for establishment charges and management, and also for interest on capital at a slightly higher rate than that earned on the capital invested in railways. I have calculated the costs for a series of varying mileages, and With collection and delivery services performed both by the vehicles themselves and, alternatively, by horses.
I do not propose to take up your time nor add to your discomfort by the recital of numerous figures, and you will perhaps accept my assurance that the calcirlations are based, wherever possible, upon practical experience, and allow for reasonable contingencies, such as short loading, lost journeys, etc. In the result, I am prepared to state that motor transport can be operated at rates of from 3d. to 5d. per ton mile, under normal and average conditions, the rate, of course, varying within or slightly on either side of these limits according to the conditions under which the traffic is carried on.
Comparison of Transport Costs.
We are now in a position to institute a comparison of the costs arrived at for the various methods of transport dealt with, and I may perhaps usefully recapitulate the, figures Horse-drawn traffic ... 4d. to 6d. per ton mile.
Rail-borne traffic (Class 0-3 up to 30 miles)... Md. to Md. per ton mile. Commercial-motor traffic 3d. to 5d. per ton mile.
It will be apparelat from these figures that motor transport has a distinct advantage in cost over either horse-drawn traffic or rail-borne traffic, to an average extent of approximately id. per ton mile. Of course, under varying conditions and with goods of different kinds the margin (at any rate over railway costs) will be more or less than the average stated.
It will be of interest if for a moment we consider what the position would be if the railway classification list were abolished and the railway companies were able to institute a uniform rake for all goods.
In 1913 (the latest figures available) the railway; of the United Kingdom handled goods traffic composed as follows :— The average receipts per ton for general merchandise traffic were 9s. per ton, for mineral traffic 2$.
per ton, and for all goods collectively 3s. 6d, per ton. In other ',lords, if all traffic had been charged at an average rate of 3s. 6d. per ton the railway receipts would have amounted to the same figure. But it must be remembered that much of the railway traffic is long-distance traffic, for which motors cannot cater, and if rates were charged in proportion to distance only, the traffic up to 30 or 40 miles distance (for which motors can compete) would be taken at less than 3s. 6d. Per WTI. ,The competing -power of the commercial-motor vehicle would, under such circumstances, be much reduced.
I have drawn these conclusions only in order to" show that, generally speaking,. the commercial-motor vehicle is an effective competitor of other forms of transport:, and more especially of railways as they are at present conducted ; but also to show that there are potentialities in railway transport, which, if fully taken advantage of, would very much curtail the effective competition of motor vehicles. These potentialities appear still more formidable when we remember that, although we have no definite figures to guide us, authorities are agreed that the actual haulage cost per ton mile on English railways is considerably higher than on foreign railways, from which we may deduce the opinion that there are corresponding opportunities of reducing that cost. I trust that you will absolve me from any desire to belittle in any way the possibilities of motor transport, nor would anything be more unbecoming in addressing a gathering of motor owners. If in the course of my remarks I have seemed to attach undue importance to the capacity of railways, my excuse is that I have wislied to direct your attention to a subject which I believe is of material interest to you as motor users. The first essential in the management of a business is to acquire a thorough knowledge of the possibilities of the business you are up to, the second is to acquire a thorough knowledge of the possibilities of the business you are up against. It might be presumptuous if I were to speak to you upon the subject of the first essential, so that, in confining myself more to the second, .am upon safer ground, and if I have given you anything to think about, at least I shall have achieved the object with which I started.