Profits from Haulage by Road Motors.
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A Summary of the Conditions which are Essential to the Successful Establishment of a Business in Motor Hiring.
Useful Applications for the Steam Wagon are Shown to be Capable of Great Extension. The Imminent Development of Motor-Mail Services. Typical Expressions of Opinion from Existing Motor Contractors.
It is desirable to state, at the outset, for the protection of those who may be assured that contracting work by means of motor wagons or tractors is a highly-remunerative outlet for capital, that the results of such undertakings are practically governed thy the same considerations which affect any other branch of commercial enterprise. Prudent finance, sound management, and the exercise of a reasonable degree of precaution at all times, in respect of the engagements which may be made., are essential to success, whilst any laxity of supervision, or any foolish belief that the drivers, loads, or machines can be left to look after themselves, must spell disaster. Pioneers have not been wanting, during the past twelve years, in all branches of the motor industry, and many have put up money to render possible the conduct of experimental services, both for the conveyance of goods and passengers, but the days have long gone by when there is either necessity or occasion for such an outlay to be of a speculative character. The conditions and expectations are known, in most of the branches.
The steam wagon, in the course of the ten scars which have elapsed since the opening series of trials at Liverpool, which trials it was the writer's privilege to conduct in the years 1898, 1899 and 190 I, has got beyond the stage of evolution and experiment; it is, now, produced upon standardised lines by some half-dozen manufacturers of good repute, and its capacity for performance may be gauged almost to a nicety.
We place next, in the order of march towards comparative perfection, the petrol-propelled delivery van for loads of front one to three tons. This rant,''e takes account of the data and information which have been rendered available from a series of bitter experiences. It extends from the period of the overloading of the pleasure-car chassis for van purposes, some nine years ago, to the " service-condition " tests which have ended, within the last year, in the accumulated lessons from London's motorbus services, and we are brought to a type of machine which is now selling with some degree of -freedom for the conveyance of back of about
three tons. We see no reason, except where high speeds and long daily mileages are vital to success, which can only be the case in exceptional instances, to recommend the use of the petrol lorry for loads which are materially in excess of three tons, and we shall continue to support the view that the steam lorry, both by reason of its lower first cost and its ability to run on steel tires, is the more economical instrument of the two when loads of five tons and upwards have to be transported at one time. We repeat that there are exceptions to this broad rule. There remains, so far as service on common roads is concerned, and it is with such that this journal primarily deals, the independent tractor, or steam horse. These machines may correctly be styled miniature traction engines, as they are constructed according to the views of designers and makers who have long years of road-haulage lore in their possession. They have the same peculiar merit which is found in the small steam tug, and which class of vessel, as we have several times pointed out in past issues, has frequently been found more economical in river and estuary work than has the steam barge. The tractor, by reason of the fact that the hauling power is separate from the carrying platform, can be used for the drawing of any one of a number of ordinary trailers-one at a time. Thus, as is elaborated at later points in this section, there is very often less wasted time on the part of this type of engine and its driver, where loading and unloading operations can only be performed slowly. It must be pointed out, however, that it is impracticable to take a trailer to a railway siding or dock quay and unhitch at some distance from the berth, unless arrangements are made immediately to attach a horse and a pair of shafts in place of the drawbar, as the customs and rules of the forwarding and shipping trades require any loaded vehicle to move up as its opportunity for taking a turn offers, and a tractor-hauled truck cannot—at least in the great majority of cases which have come under our notice—obtain any preference whatever in this matter.
We might add, in closing these introductory sentences, that tractors have been found to prove more economical on macadam roads than on paved streets : adhesion difficulties, the time occupied in winding when it becomes necessary to use the drum and cable in extreme cases, and the results of the greater vibration which is undergone, all have separate and adverse effects which may increase the annual maintenance outgo by more than fifty per cent, over that which is found to be necessary on country roads. It remains to be seen whether improved suspension in combination with wooden treads will obviate these by no means negligible drawbacks.
Contractor and Customer.
The economic law of a contest over the sharing of any margin between production and market values is nowhere more forcibly exemplified than in the region of motor hiring. It appears, indeed, as though the struggle between producer and consumer were in no quarter more severe. The customer, in the first place, has no sooner agreed the terms with one contractor than he is assailed and discomfited by
apparently-tempting offers from others. lie is plied, in the second place, with catalogues and estimates from manufacturers, and his scrutiny of these inclines him to the view that he ought immediately to be granted big reductions on existing rates by all and sundry of the hiring parties who are working for him, or who are anxious to conic to terms. The owner of the haulage plant, on the other hand, enters most vigorous protests, and often rightly so, that his profits are small. Where does the truth lie (we trust that our readers will apply to the word "lie" the significance which the context imports, and that the unintentional paradox will be overlooked), and who shall reconcile the rival claims and statements of extremists?
We cannot do better, perhaps, than to set out the principal considerations which justify the known differences between the working costs of an owner who can provide his own loads steadily, and the obtaining charges of the motor contractor, Jr will suffice that we take the particular case of a steam wagon which is capable of carrying a five-ton load upon its own platform and of drawing an additional load of from three to five tons—according to roads, gradients, and local circumstances— upon the single trailer which is allowed to be used under the provisions of the Motor Car Acts : the same general arguments, and virtually the same proportional allowances, may be applied to any other type of road motor. We give, on this page, for the purpose of easy comparison, a number of points which cannot fail to send home to any reader the essentially-superior position of the owner who can find enough work himself to justify his purchase of one or more machines. They are presented in tabular form, under two headings, and are self-explanatory.
Any person who lacks experience in road carrying cannot properly assess the extras and contingencies for which the hirer must provide, but our inti mate knowledge of conditions as they are enables us to set a value upon them, and one which we feel is fair to all parties. A good week's work for a steam wagon is a total of 200 miles of running, and an average cost, after making provision for the taking of a trailer on about half of the trips, is „4:,.7 135. 6d. a week, or approximately 9.2d. per mile run. Now, in the case of the individual owner, an analysis of his weekly total of would show the following driver, Lx iss.; extra man (other half charged to labour account), 14s. ; fuel, Li Ss, ; water, 2S. ; Oil, 45. 6d.; insurance and claims, 7s. 6d.; maintenance (including labour), Lx 25, 6d. ; management, nil ; rent and taxes, nil; interest on capital, los.; depreciation, ,4:1 los. It is requisite, in the case of the man who is ready to hire out similar wagons and trailers, that several of these items be increased. We set the means of these weekly increases to be : driver, 5s. ; extra man (all charged to the undertaking), 14s.; out money, 6s. ; fuel, 5s. ; insurance and claims, 75. 6d.; maintenance, 55.; management, Lx Ills.; and rent and taxes, tos. The aggregate of these extras is no less than A 25. 6d. per unit per week, but the list does not exhaust the contingencies against which the motor contractor has, in the carrying-out of regular (=tracts for the same customer, to protect himself.
There is a great lack of consideration for the haulage contractor at many warehouses and works. He may be promised a load for a certain hour, and his men yet may have to wait about for several hours; he may be assured on the telephone that the heaviest piece in a consignment of machinery is " about four tons," and he may find
that the crane-man has dumped on to his wagon or trailer a casting or machine which weighs as much as eight tons; he may be given wrong dirnensious, and have, in consequence, to divide a load between a couple of lorries when he had previously felt sailsii(Al that one would be ample; his men may be directed on to soft or otherwise on,uitable ground, in the course of their daily work, with resulting delay while the wagon is " jacked out "; and any one of the foreg,oing common difficulties may cost him, apart from the
offence given, the positive loss of half or a whole day's service from any machine. If, therefore, we average the loss contingency at half a day per
:igon per week, which is none too ilitzh in general contracting work, we are not going too far when we say that auiy careful hiring company ought to allow at least 155. a week in that respect, by way of insurance against trading loss. This sum, of course, may he either added to costs, or deducted from the scale of earnings upon which any individual or company is prepared to hire out a steam wagon, but it must be taken into account, and it practically increases the .4:7 13s. od. per week of the owner who can provide his own jobs i() 4.12 its. per week, as the safe Itlinimunt without profit. A contractor, unless for jobs where the conditions are ideal, must get from 6o to too per cent. more than the cost to the owner who has ideal conditions.
Costs and Profits.
We have dealt, so far, with the steam wagon in detail, and considerations of space preclude our making corresponding-, analyses for each and every type of van, lorry, wagon and tractor, whilst, so far as agricultural motors are concerned, we do not purpose in this issue to deal with them at all. We quite recognise, none the less, that a large proportion of our readers, both old and new, will desire to have some guiding figures and controlling indications to help them. Such infor illation will be found in the last table upon page 112, and we feel that It is only necessary for us to emphasise the nec(:ssit for the general refusal of jobs which will nol permit the attainmeni of the respective revenues per week which are given in the column of " Necessary weekly earnings."
These data are naturally of a.character which cannot be dogmatically held to cover exceptional or pe.:uliar conditions. For example, if a motor contractor can get orders to carry some highly-rated article, such as tea, explosives, petroleum spirit, perishable goods or the like, and can assure himself lieu he can earn the necessary amount per week on a smaller mileage than any of those which fit his case, iv must be obvious that he can ignore the fact that he is running a less mileage than the lower one given by us, as he will be in the fortunate
position of earning the requisite money without having to spend as much as would be necessary in an average case.
We will revert, in particular, to the case of the five-ton steam wagon, which may or may not be used with a trailer. We require it (with trailer generally) to earn E;15 a week, which may be limited to five days at ;63 a day, or may be otherwise composed. The margin for profit and exceptional mishaps is, unchr this head,
ys. per week, or, reckoning 50 weeks per annum, which, having re
gard to holidays and overhauls, is a top estimate, 1ndicates a possible net gain of £122 los. per unit per annum for the contractor. We do not say that this figure has not been largely exceeded by some particularly-astute men in the Manchester district, for we know that to be so. Thcy, however, by personal attention of extraordinary closeness, and by the haulage of loads which we are obliged to regard as abnormal, have been able to draw profits in comparison with which the basis quoted is insignificant. This fact shows what can be done --how a man of little or no means can, if he cares to apply himself, acquire a fleet of wagons out of revenue. There is no reason, admittedly, why others should not do the same, but it would be an error for us to suggest that any considerable multiplication of such instances is possible in Manchester, or anywhere else.
Let us take it that, granted reasonable foresight and opportunity, a motor contractor can maintain a margin of profit per unit in excess of 4120 per annum. Is this excessive, and is the customer paying more than he ought to do? It means that the hirer is prepared, in exchange for a payment of only 43 a day, to put at the disposal of the customer an up-to-date steam wagon and the services of a highlytrained and competent driver, to accept all risks of third-party and other damage, and to travel some 40 odd
miles between 6.30 a.m. and 8 p.m. If the customer's loads allow it, eight tons can be taken over a distance of 20 miles out, and eight tons can be brought back again ; in any event, eight tons can be taken zo miles out, and the wagon can return light, or loaded with empties, such as barrels, sacks, or packing-cases, or any subdivision which is equivalent can, in the absence of delays at the termini, be effected. We will establish a specific comparison between hired horses and the hired motor, and take the case of i6 tons of stuff to be delivered at one or two points ten miles away from the consignor's premises. At the best, and on level roads, four pair-horse teams would be necessary, and we do not hesitate to write that the hiring bill would never be less than L.:3 a day, either in the Provinces or London, as two horses, a lorry capable of carrying four tons, and a teamsman, cannot be procured for as little as 15s., and for the service under discussion, even where hiring rates are exceptionally cut, and this takes n's account of a second man as a loader. If, however, the roads were at all hilly, and it became necessary to have a third horse to deal with a load of four tons, the economy would immediately become more markedly in favour of the motor. The customer cannot, therefore, grumble at the charge of 4.3 a day, which we regard as an equitable one he cannot beat it by horses; he cannot excel it by the purchase of a wagon hitnself, unless he be able to keep it going and well loaded for at least three days a week. For a 6o-hour week, it will be noted, from the charge per day which is the present ruling one, motor contractors are in receipt of 5s. per working hour, and this covers the inclusive services of a driver, a loader, a wagon and a trailer, the complete
unit being legally capable of taking eight tons, and of travelling from 40 to 45 miles.
Back Loads.
Not a few contractors get themselves into difficulties by their over-anxiety to arrange return loads. The scheme, as a conception, is, on the face of it, absolutely sound ; but it is very far from the infallible on investigation. We have often known a contractor to suffer the loss of two hours, while his wagon ran from mill to mill and waited for its theoretic back. load; with a resulting total upset to his next day's work. In these circumstances, no great reflection will prove that it may sometimes be better to take a load one way, and to make quite sure of running corresponding loads, without intermission, on succeeding days. We are reminded of a concrete case, between Darwen and Manchester, a distance of 22 miles, where a certain Leyland lorry daily takes loads of six tons at a rate of 8s. 6d. per ton, or a total earning of 51s., and where the owner does not worry about a back load from Manchester. He gets back more quickly— not by overdriving, but by the avoidance of terminal delays—and uses slightly less fuel. It is true that he earns os. less than the projected .Z.3, but he makes quite sure of his 51s. for
the next day, and takes no risk of the upsetting of two customers as the undesirable alternative to complete satisfaction for one. No trailer is used.
Avoidance of Delays.
All classes of motors cost from twoand-a-half to three times as much per working hour as do their equivalents in horses and carts for the conveyance of the same individual loads. It is only necessary that this should be realised, for the merest tyro in matters which concern motor transport to see the im portance of an organisation which cuts down idling to the minimum, and allows the motor unit to have the highest percentage of running time in a day. It is certainly advisable, where it is sought to let the motor compete in general haulage round a centre, that the loading and unloading facilities should be studied in advance, both by the would-be customer and the contractor. The approaches to the berths should be inspected, and accurate particulars should be forthcoming as to the times occupied in filling or clearing the platforms of the carrying units, and as to the dimensions of any unusual packages. 'The contractor, on the other hand, must guard himself against any risk of a miscounting of the sacks or packages if, owing to their too rapid reception, his men get " fuddled." Again, if the loader is not a good-class man, and one accustomed to moving in cartage circles, there is more than a small risk that a clean receipt will be given for goods which are in a damaged, incomplete, or pilfered condition. Another point of interest is that the contractor should give a preference to work which enables him to get rid of his loads with the smallest number of separate calls, and that he should, where permissible, make a sele,:tion in a progressive sense,
-so that he gradually discovers trade of the "one trip one delivery class, or at most two deliveries, for which he can tharge minimum rates, any multiplicity of calls being arranged on the basis of extra payments therefor.
Tractor versus Wagon.
This controversy cannot be settled in any off-hand manner, but, as we have mentioned incidentally already, town hauliers are giving a preference to the wagon. This is the case, for example, with Pickford's, Limited, which company now owns 30 steam wagons and
tractors, compared with only to wagons and 20 tractors in March, 1905. On the other hand, one of the letters from an owner which we publish this week—that of Messrs. Coupe Brothers, of Sheffield (see page r19)—shows that, in their experience, they are able to quote so low as 27S. per day for the sefrvices of a tractor, but on a low total-mileage basis. This rate, however, includes only the attendance of the driver, and not of any second man.
We are prepared to admit that the tractor is cheaper and more economical than the steam wagon where the special conditions suit it, and most of all on macadam roads with moderate gradients, but it cannot be overlooked that town conditions run up the cost of labour and repairs, whilst the lesser axle-weights of the tractor itself, which is an undoubted advantage on by-roads in country districts, destroy the assurance of sufficient adhesion on paved surfaces. Wooden treads have been tried with no small measure of success, and the cost is proved to be about d. per mile rua, except during wet weather, or on loose roads, when the cost of wooden treads is considerably augmented as a general rule.
The wagon has the advantage that its higher axle-weight enables it to keep a grip on the surface when wheels upon more lightly-loaded axles will slip. leis, of course, competent for anybody to use his wagon as a tractor, although the machine is not equally handy in confined quarters. A wagon can, however, pertorm the duty of carrying a load upon its own platform, in addition to the haulage of an ordinary trailer with its load, and the comparison which is visually presented on page 111 of this issue must he held to point the moral.
Depot-to-depot Haulage.
The ideal is depAt-to-depot haulage, where delivery rounds with many calls have to be paid at one end. This depotto-depot system has been tried, but only in a half-hearted manner, and it yet remains to be seen whether it can be organised on a systerriatic plan. Manchester certainly provides the best opening, with its established custom of transference of the load bodily, from platform to platform, upon a " flat." These" flats " are duplicate platforms, strongly constructed to stand slinging with a load of six tons upon each of them, and the weight of each is about 61 cwt. Some pioneers of road transport in Lancashire, of whom we may quote Mr. William Birtwistle, of Preston and Blackburn, have adhered to the view that no other system will show the motor to full advantage, and we quite agree with this opinion, although many classes of merchandise do not call for it. The cloth trade of Manchester is essentially one which does, and the installation of a depot with proper equipment for the reception, storage, slinging and quick re-delivery of such " flats " will be the first sign that road transport by motors has been adapted to its proper sphere of action for the trades we have in mind. It is a refinement which goes even beyond the interchange of trailers, and it is one which will permit the practical separation of the motor wagon (as the power unit) from the load which it carries—an enforced combination of the past which has led to much waste of time, and loss.
The important future which lies before the motor-wagon industry, in the Manchester district, if this scheme is properly elaborated, may be gathered from the fact that, whereas a tractor may only deal with an average net load of some 3i tons throughout the year, taking good weather and bad into account, the motor wagon and its trailer can average more like 7 tons, and can in practice travel at a considerablyhigher average speed. Contrariwise, tractors are well ahead of motor wagons. for other types of work, as some letters which follow testify.
The Payment of Drivers.
The payment of drivers is a matter of no small concern to owners of all classes
of motors. A good driver certainly must have a reasonable minimum, and he must also in some way be paid proportionally to the distance through which he drives his valuable charge each week. We are glad to acknowledge that, of the many schemes which have been expounded to us, none comes up to that of Mr. D. H. Simpson, of Manchester, whose name will be familiar to a great many readers of this journal as a pioneer in commercial motoring, and one whose work goes back to the early days of 1895. Mr. Simpson pays his drivers on a mileage basis, and he follows the precedent of railway practice, in respect of the feature that the companies are allowed to
charge an extra mileage in respect of any particularly-awkward piece of construction, or of a bridge. For example, although the bridge over the Mersey, between Widnes and Runcorn, is only a few hundred yards in length, the railway companies are allowed to charge it as an extra six miles. Mr. Simpson's Plan is this he pays the drivers of his steam wagons and tractors 2d. per mile up to 16o, and 2Ad. per mile thereafter, per week, and he allows so many extra miles for any very hilly road. This means that each driver is guaranteed a standing wage of 265. Sd. per week, and that they are paid according to the merits of their work, and the severity of the tasks which are allotted to them.
Mail Contracts.
The growth of the motor mail is assured. High officials of the General Post Office have watched its progress since the inauguration of the first service, in the spring of the year 1902, between Liverpool and Manchester, and regular increases have taken place during the past few years, whilst a large number of others are contemplated. A popular type of mail van is that which can convey two tons of parcels, and we are in a position to state that the working expenses can, with careful management and organisation, and with a paying mileage of at least 120 per day for the two vehicles which are engaged on any particular service, be covered at a maximum of mod. per mile run, inclusive of provision for depreciation and supervision. The G.P.O. officials, with their usual astuteness, have unfortunately so arranged matters that several leading firms of contractors have unnecessarily cut the rates, and have been foolish enough to quote as low as 114d. per mile. This action, having regard to the unusual contingencies which must attach to night travelling, and to the preparedness of the Post Office to pay adequately for reliable services, is a rather shortsighted one, and we would urge upon those concerned that they revert to a rate of at least is. id. per mile. In the ordinary course of commerce, where some risk of had debts and delayed payments has to be admitted, a rate of is. 3d. per mile would be more in keeping with the purpose for which the parties contract, but it has to be recognised that the G.P.O. are punctual payers, and that the account, being with the Crown, is a safe one— at least for the present. Milnes-Daimler vehicles, three of which are illustrated below, have done well in such service. Thomas Tilling, Limited, owns a fleet.
Furniture Removal.
One of the most interesting developments of the past few years has been the rapid extension of furniture removal by road motors. Houses which undertake this class of transport divide their support between makers of wagons and tractors, although there is a distinct preponderance in favour of the wagon.
The point-to-point transference of valuable loads of furniture, pictures, works of art, plate, china, and the like, without the risks of trans-shipmeni and damage due to shunting on the railway, has proved to be an enormous attraction to owners of large country houses, and students of this section will find the third table on page 112 to convey sufficient information to enable them to get a basis for their rates. It is, of course, hardly necessary for us to add that very high rates are necessary, over and above the mere cost of conveyance, in respect of the enormous amount labour which is involved in packing an unpacking, to say nothing of the speck knowledge which only years of exper ence confer upon the 111e0 who supei vise and carry out such jobs. We ma mention, incidentally, that several of tb largest piano manufacturers and iii porters in this country send instrument on journeys of several hundred mile in length, from their London show rooms, and between the country an town houses of patrons, with beneficiti results to all concerned, by road motors Steam wagons have proved mos popular in this branch, but severa makers of petrol vehicles are also en gaged in it.
Passenger Vehicles.
It. will be observed that this sectioi on motor hiring contains a few refer ences to travellers' broughams am other passenger vehicles. Readers will desire to go into these branches mon closely are referred to our " Motorcal Issue " of the 3oth April last, and our " All-World Motorbus Issue " o the 20th June, 1907. Other importan data bearing upon the question motorbus operating costs were alst published in our issue of the Iv} December last.