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3rd March 1933, Page 66
3rd March 1933
Page 66
Page 67
Page 66, 3rd March 1933 — Problems
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Which of the following most accurately describes the problem?

HAULIER and CARRIER

of the

A Compression-ignitionengined Lorry or a Petrol Vehicle ? A Conversation with a Haulier and Its Outcome

JUST as I was in the middle of a long and intricate calculation the telephone rang. " Is that S.T.R.?'" " It is." "Can you spare me a few minutes, this afternoon, if I come over to see you?"

"I think so. What's it all about?"

"I am trying to decide whether to buy a petrol lorry or an oiler, and I'd like to talk it over with you." "Come along by all means—about three olclock." And he came.

"What is the position generally with regard to these oil-engined vehicles?" he asked. "Are they all right? Would you recommend me to go in for one?"

"They are all right, but whether I would recommend you to buy one in preference to a petrol-engined chassis depends on circumstances. Broadly, if your work consists mainly of the haulage of big loads over long distances, I shall most likely be able to recommend you to buy an oil-engined vehicle. If the loads and weekly mileages are small, you would be better advised to stick to the more orthodox type of commercial vehicle."

"That's a point," he said, with a surprised look on his face. "You remind me of the stories of Sherlock Holmes, for you've picked out, first go, the very thing that was uppermost in my mind. You see," he continued, "I've been discussing this matter with one or

B48 two 'commercial-vehicle salesmen and one of them has left me this schedule of comparative costs. (It is reproduced herewith as Table I.)

"Now, assuming that the figures in the table are correct, there is such a big advantage in favour of the oil-engined vehicle that I seem to. have hardly any choice. At the

same time, what bothered me was the question of annual mileage. In the schedule 60,000 miles is given. Well, now, my annual mileage won't be half that ; about 20,000 is more like my figure. I suppose I cover about 400 miles a week. So what I would really like you to do would be first of all to go over these figures for me and tell me what you think about them and then to advise me how far the difference in annual mileage will affect the costs given to me by the salesman."

"First, let us examine the figures." I replied. "Those relating to initial expenditure seem all right, at any rate. The extra 1150 for the compressionignition-engined chassis is not so much as you would be called upon to pay in the case of some makes of vehicle, but it will pass.

"As regards the standing charges, there is something seriously wrong with the figure for depreciation. A vehicle covering an annual mileage of 60,000 will not last for five years. Thirty per cent, at least would be a fairer figure to take. The point is rather important, because, as the figures stand in the table, they react in favour of the compression-ignition-engined chassis.

"On the question of cost of upkeep and repair, the figures quoted are decidedly wrong. Instead of the petrol-engined vehicle being debited with an amount 50 per cent. in excess of that referring to the oiler, something like the reverse should be the case. At least, I would definitely state that the average maintenance of the latter is somewhat higher than that of the former."

"Can you give me any idea what the actual figures would be in each case?" interrupted my haulier friend.

"Yes," I said ; "but in giving you my figures you should appreciate that by the term maintenance I mean more than can be comprised in the reference upkeep and repair,' which is the item in Table I. I should say that the total cost of maintenance of a 7-ton lorry would be 1.55d. per mile, in the case of a petrol-engined vehicle, and 1.60d per mile in the other."

"Have you any definite figures that you can bring forward in support of that statement?"

" Not enough to give you precise proof. That is almost impossible, because no two people interpret the word maintenance in the same way. Nor do they keep their costs in comparable style. But I do know, from passenger-vehicle operators as well as from goods hauliers, that the compression-ignition engine does cost, as a rule, a little more for maintenance.

"Now for the running costs. With the figures for petrol and oil consumption I have no fault to find. You may, or may not, have to pay is. ed. a gallon for your petrol, but It is equally true to state that you may, or may not, find it necessary to pay 4id. a gallon for your oil fuel. The figures for oil consumption are sufficiently accurate for the purpose and can, therefore, be allowed to stand.

"An average expectation of 30,000 miles of life from the tyres is, to my mind, expecting rather a lot. A good many tyres do cover that distance, but there are many that do not. Moreover, other things being equal, the oil-engined chassis is likely to be slightly more expensive in tyre cost than the other, because of its somewhat greater weight. For the time being, however, I will assume that the tyre figures are correct. No fault can be found with the figures for driver's wages. If they are correct for one typal of vehicle, they are for the other.

"I think the best thing we can do is to set out a table of our own, corresponding, in the method of its drafting, with that which you have from your salesman friend, bearing in mind, as we do it, that you will cover only 20,000 miles per annum and making such modifications as, in my view, are necessary to arrive at a reasonable and fair comparison.

"The preliminary figures will remain unaltered and the first to which it will be necessary to make any correction is that of depreciation. This I propose to calculate on the basis of a life of 100,000 miles. For upkeep and repair I shall use the figures I have already mentioned to you, that is to say, 1.55d. per mile for the petrol-engined vehicle arid 1.60d. per mile for the other.

"No other corrections are necessary. We will, therefore, now proceed to total these in the same manner as was done in the first table." (See Table II.) "But, according to your figures, the cost per mile for both types of vehicle is much more than according to the first schedule." Ile made this interjection in a somewhat mystified tone after a long and careful study of the tables.

"That is inevitable with a smaller annual mileage. You will note that the total cost is less and the balance in favour of the oil-engined vehicle is less, both as regards the total cost and cost per mile."

"At any rate, it looks as though it would pay me to buy an oil-engined job for my work, taking into consideration the special conditions that apply to my particular case."

"Yes," I replied, "that appears to be the correct conclusion to be drawn from the figures." S.T.R.

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