OPERATING, or so-called variable charges, are considered in this paper, and comments are offered on the subject of fixed charges.
Because economies effected since about 1929 have brought fleet-operation costs to a very low level, the difficult problem of how they can be further reduced and yet maintain the same quality of service is facing all fleet operators; but it is not insurmountable. Through adequate study of each item of operating expense, and with proper treatment of each item of cost, Mr. Newton believes that reductions will be effected.
Itemizing the charges, Mr. Newton says that gasoline purchase is primarily the buying of heat units. Gasoline should not deteriorate in storage, must be clean, have low sulphur content and should not vapor lock. Using a higher antiknock gasoline than necessary increases fuel cost. Correct and effective lubrication lengthens vehicle life and reduces repair costs; as few different grades as will assure good lubrication should be used.
Mr. Newton advocates periodic inspections, preventive maintenance, engine governors, air cleaners and oil reclaiming, as well as other basic practices. He analyzes garage expenses, and prefers vehicle-depreciation on a time-and-mileage basis. “Save-A-Mile” and accident-prevention campaigns have reduced costs in fleets that he cites.