20 N. H. Agri. Experiment Station [Station Bull. 307 



We find, therefore, that under conditions of perfect competition, 

 rates charged producers would vary with distance from the market 

 and that average rates charged by trucks collecting equal total loads 

 over equal distances would approach equality. 



This, then, is the standard of competition in trucking milk. Under 

 similar road conditions, distribution of farms, and so forth, truck routes 

 of equal lengtli and volume should have the same average rates. All 

 other factors being equal, a variation in average load for trucks travel- 

 ing the same distance should be reflected in a difference in average 

 rates. If rates in both cases were the same, trucks traveling longer 

 distances would tend either to charge distant producers greater amounts 

 or to consolidate their routes in order to reduce distance traveled; or, 

 if total distance were to remain the same, they could change the course 

 of the route in order to include more distant (and therefore high-rate) 

 producers. Regardless of the method of adjustment adopted, rates 

 would tend to equalize for routes of the same distance and if differ- 

 ences in distance persisted, they would be reflected by different aver- 

 age cliarges. (Such a situation would exist when variations in density 

 of production occurred ; the truck route operating in sparsely settled 

 territory would have to cover more miles in order to procure the same 

 amount of milk, and as truck operating costs are directly affected by 

 mileage, rates would have to be higher in order to attract resources in- 

 to truck operation to serve such producers.) 



Similarly, where other conditions are constant, rates in a competitive 

 system should vary with the amount of milk carried per mile traveled. 



Analysis of Trucking Charges 



Tiie variations in trucking charges to be expected under conditions of 

 perfect competition have been outlined in the preceding section. Do the 

 charges actually levied accord with those expected under perfect com- 

 petition, or arc imperfections in competition present? And if such im- 

 perf(^ctions ai"e found, of how much importance are they? 



I. J-^xifiii to wliicli average charges on similar routes approach equal- 

 ity: 

 Under freely competitive conditions, average rates on truck routes of 



about the same length, ti"avcling over roads of about the same quality 

 and collecting about equal volumes of milk, would be nearly identical. 

 Small dift'erences might be expected from additional services supplied 

 on some routes such as ice in summer, empty cans returned the same 

 day, insulated truck bodies, and so forth; but such differences should 

 seldom amount to more than one or two cents a hundredweight on a 

 yearly average basis. 



By .separating the routes into groups in which distance traveled and 

 volume of milk hauh-d ai"<' similar, and by comi)ariiig the variation of 

 charges within t'acli group, an estimate of the extent to which competi- 

 tive forces have operated to level rates out may be obtained. Table IV 

 shows by groups in which distance and volume are similar tlie range of 

 charges and average charges throughout the state. (By "range of 

 charges" is meant tlie range of average charges of routes, not of in- 

 dividual charges within routes.) 



