32 



BULLETIN 910, U. S. DEPARTMENT OF AGRICULTURE. 



Roughly, about 60 per cent of these trucks are operated by their 

 owners, about 30 per cent by the sons of the owners, and about 10 

 per cent by hired men. Automobiles are owned on about three- 

 fourths of the farms and tractors on about one-fourth of them. It is 

 to be expected that the owner of such an expensive machine as a motor 

 truck, or any member of his family, would give it a reasonable amount 

 of care and operate it with a reasonable degree of intelligence, and the 

 fact that automobiles or tractors were owned on a large percentage of 

 these farms indicates that most of the operators were more or less 

 skilled in the operation of gas engines. That such a large percentage 

 of these trucks were operated without any loss of time and were always 

 ready for work when needed is very probably partially due to these 

 facts. 



COST OF OPERATION. 



The cost of operating trucks of different sizes reported by these 

 men is shown in Table XX. The items considered in making up these 

 costs are depreciation, repairs, interest on investment, registration 

 and license fees, cost of gasoline and oil, and of tires. 



Table XX. — Cost of operating trucks of different sizes. 



Size. 



-ton. 



J-ton. 



1-ton. 



1J- and 

 U-ton. 



2-ton. 



Fixed charges: 



Annual depreciation $91 



Annual repairs 50 



Annual interest 21 



Annual registration and license fees. 10 



Total fixed charges 172 



Miles traveled per year I 3, 790 



Fixed charges per mile I 10. 045 



Gasoline and oil per mile .021 



Tires per mile j .010 



Total cost per mile .082 



$152 

 75 

 33 

 18 



278 



4,370 



.073 



$0. 076 



.025 



.027 



.029 



.016 



.119 



$256 

 100 

 63 

 22 



441 



3,100 



3.142 

 .031 

 .017 



.190 



$312 

 150 

 83 

 26 



571 



$0. 140 

 .038 

 .025 



.203 



The figures for annual depreciation are obtained from Table XIV; 

 those for annual repairs are obtained from page 26. 



Interest is figured at 6 per cent on the average investment. The 

 average investment has been found by the rule: Average invest- 

 vears of service + 1 



ment = first cost X 



This is the generally accepted 



years of service X 2 

 method for determining the average investment in equipment where a 

 fraction of the first cost is charged off each year for depreciation. 

 The interest charge when computed on this basis is slightly greater 

 than when computed on one-half of the first cost. 



