S.T.R. on Depreciation and Insurance O UR costs expert. S.T.R., addressed
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a crowded meeting of haulage Contractors in the Chatham Sub-area of A.R.O., on Monday of this week. The success of the meeting, in regard to numbers in attendance and interest of those present, was yet one more confirmation of the soundness of S.T.R. 's own view that, in order to get hauliers together for these meetings, opportunity should be taken to arrange for a little refreshment-something to diminish the air of formality which has a tendency to deter many from attending.
Mr. D. Richardson was in the chair, and also present were Mr. P. L. Dicker, of Gamman and Dicker, Mr. Hughes, of Tilling-Stevens, Mr. Taylor, of Kent Carriers, whilst the audience numbered about 50. The discussion turned on those important items-depreciation and insurance. In regard to the latter, some questions were asked as to the wisdom of taking out fully comprehensive policies in preference to third party-only. S.T.R. was able to demonstratd that the latter course was much too risky for any but the largest of operators, who were in the advantageous position of being able to spread out their own risks.
On the subject of depredation, one of the audience pointed out that with depreciation calculated on a mileage basis, a first-class vehicle, bought in the expectation of being able to cover a considerable mileage before its value could be written right down and covering a comparatively low annual mileage, would depreciate slowly.
S.T.R. reminded those present ot something he had already written, in which provision was made for that eventuality. According to that scheme, account was taken of obsolescence, as well as wear and tear, without in any way departing from the principle of reckoning depreciation on a mileage basis. He said that in the next edition of The Commercial Motor Tables of Operating Costs they would find that method exemplified.