26 



MASS EXPERIMENT STATION BULLETIN 363 



The location principle is used to compensate for added distance, side trips 

 from main roads, and inferior travel conditions of back roads. Producers are 

 grouped as "on-route" and "off-route." Producers located within one mile of 

 predesignated main-traveled highways are classified as on-route; all others are 

 off-route. Off-route producers pay in addition to their zone rate a location 

 differential which has been assumed for illustrative purposes to be 5 cents per 

 hundredweight. 



Figure 7 shows the zones for each of the three concentration points separately 

 and combined. With the exception of a broad V-shaped part of Agawam, a shift 

 by producers in market points would alter their rate zones and rates. 



The effect of applying the suggested rates on reorganized routes is shown in 

 Table 14. Data on daily collections as of January 1935 were used to illustrate 

 the relationship before and after, and to calculate the average rates per hundred- 

 weight. Reorganizing the routes and establishing the rates by a standard method 

 lowered the average rate per hundredweight slightly over 9 cents. 



A frequency distribution of the proposed rates and of the existing rates is given 

 in Table 16. The number of rates applicable was reduced from 12 to 4 and the 

 maximum practical rate from 46.5 to 30 cents per hundredweight. The common 

 rates were 20 and 25 cents. The relative importance of these two rates would 

 probably remain the same when the producers currently not located, of which 

 there were 9, were given rates. 



Table 16. 



Frequency Distribution of Cartage Rates Under Proposed 

 Schedule and Schedule as of May 1935 



Number of Producers 



.15 



.20 



.23 



.25 



.28 



.30 



.33 



.35 



.40 



.44 



.465 

 Over .465 

 Not located 

 Haul own 

 Total 



As with route organization, the proposed rates and the derived income are sug- 

 gestions with indications as to the probable results. The rate level may be too 

 high; it may be too low. Experience will indicate the approximate levels at 

 which to establish rates in order to maintain the service under varying economic 

 conditions. 



Publication of this Document Approved by Commission on Administration and Finance 

 3500-6-'39. No. 7442 



