I4 BULLETIN NO. 770, U. S. DEPARTMENT OF AGRICULTURE 
different loads. They are offered as illustrative rather than as authori- 
tative. It must be remembered that while the actual tire cost of the 
large truck heavily loaded may be relatively high per mile of operation, 
the cost per ton may be small, and in the final analysis the latter com- 
parison is the only fair one. Where pneumatic tires have been used, 
it usually has been found that the actual tire cost is rather in excess uf 
the cost where solid tires are used, but in such cases the annual depre- 
ciation and the cost of repairs are usually less. 
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Garage rent is an item of expense which is often not incurred directly 
by the rural operator. Where the operator finds it necessary to rent 
garage space it is, of course, easy to calculate the cost. It is not so 
easy to make such an estimate, however, where no actual cash outlay 
is incurred. Where the operator is using garage facilities of his own, 
which might be valuable for other purposes, the rental value of these 
facilities should be entered-on the books. Where no attempt is made 
to house the truck when not in use, the operator may save on garage 
cost only to lose a still greater amount due to increased depreciation. 
GARAGE RENT. 
TAXES, LICENSE AND INSURANCE. 
Taxes and the costs of a license and: insurance vary greatly in 
different states. The prospective owner of a motor truck should look 
into the matter in advance and be in a position to meet these liabilities 
as they come due. Insurance of various kinds must be considered. 
Theft, accident, and fire insurance should be taken out on the motor 
truck itself. Reliable operators now find it desirable to take out 
insurance covering the load which is being carried. 
OVERHEAD EXPENSES. 
The item of overhead expenses includes office rent, office equipment, 
clerical and other salaries, advertising, etc. They are often of minor 
importance to the farmer operator, but constitute a considerable ex- 
pense for the larger operator who finds it necessary to maintain a 
business headquarters. : 
The above enumeration of operating costs may serve to call to the 
attention of some beginners in the field of motor truck transportation 
the need for carefully considering the business elements in advance of 
actual operation. The most common error of the beginner is to under- 
estimate some of the cost items. Many beginners either underestimate 
or fail to estimate at all such an important item as depreciation. Such 
operators have been known to conduct their business for several 
months under the assumption that they were making money, only to 
find that their apparent net profit was being absorbed by the lessening 
value of their rolling stock. Other operators have been inclined to 
accept cost figures determined under widely different conditions, or 
