MOTOR TRANSPORTATION FOR RURAL DISTRICTS 31 
covering the business of insurance companies be in contravention of 
any of the suggested policy provisions, it will be necessary to modify 
the language of these provisions to accord with the statutes. 
The use of the standard bill of lading and the adoption of the fullest 
form of insurance coverage are strongly recommended even to the 
small operator. Most operators will prefer to offer free insurang to 
the shipper on all goods valued below a certain maximum. It is sug- 
gested that a fair maximum for free insurance is about 50 cents per 
pound. When goods are valued at more than 50 cents per pound the 
shipper should, in addition to the regular shipping charge, be obliged 
to pay for the insurance coverage on the valuation in excess of 50 
cents per pound. A scrutiny of the clause near the bottom of the 
standard bill of lading will make this point clear to the reader. 
Only by the adoption of modern business methods can the future 
oi the motor express business be assured. Many operators will hesi- 
tate to adopt the two important features, which have just been dis- 
cussed, because they will fear complications in their business and the 
assumption of too great a burden of detailed clerical work. Business- 
like operators, who have given these features a thorough trial, have 
been surprised at the ease with which they have been able to accommo- 
date their business to these changes. The small operator will find that 
the slight extra burden of work which he is assuming will be more 
than paid for in the increased business coming from patrons who are 
confident that any losses will be promptly and properly adjusted. 
LIMITING FACTORS. 
The chief factor limiting development in the field of rural motor 
hauling is the cost of operation as compared with that of railroads, 
electric lines, and boat lines. Cost of operation offers a problem which 
can only partially be solved by the operator. Careful attention to 
effecting economies may offset this limiting feature to some extent, 
but in the main the operator can not change his costs of operation to a 
very marked degree. This means that he must plan his business so 
that in competing with other carriers he is not working on an unequal 
basis. He must cater to a class of business which will pay a small 
additional premium for better service. To supplement this he must 
offer a speedier, more dependable or more complete service. For 
instance, many operators are successfully competing with other car- 
riers whose basic expenses are lower because goods are picked up at 
the door of the shipper and unloaded at the door of the consignee with 
a minimum of handling in transit. 
The second important limit to the extension of rural motor hauling 
is the condition of the average country highways. Road conditions 
bear a direct relation to operating costs. In extreme cases bad roads 
may prevent the use of motor trucks at all. In other and more com- 
