Motor Road Transport For Commercial Purposes
(Liquid Fuel, Steam, Electricity)

becomes almost obsolete for useful service, and not on account of wear and tear. There are motor vehicles running to-day, and doing good service, which have been in commission for a number of years. Many, no doubt, possess but few of the original parts, perhaps only the frame, axles, crank chamber, and gearbox casing, but the condition and the running of the van may be as good as when it was new. This is accounted for under the item of repairs and renewals, and the life of the vehicle is only ended by its becoming obsolete as a type of mech.an.ical conveyance. Thus it can be seen that the trader who buys a first class machine and is prepared to look after it, need not hesitate to consider its life as being of considerable length. Depreciation. There is a point which may strike the business man as being one which should be accounted for, and that is the heavy rate at which any vehicle depreciates in value directly it has been used. In normal times it is obvious that when a new van has been in use for a week only, the depreciation in the event of a sale is out of all proportion to wear and tear. It is doubtfu] if the owner would be able to seil at a reduction of a sixtb. on the original price. It is, of course, possible for the trader to write off some such fail in value at the commencement of the vehicle’s service, but in practice this is never done, for the simple reason that commercial motors are bought for investment and not for amusement or speculation. Interest on Capital. The matter of interest on the Capital outlay is closely connected with that of depreciation, and should be taken in conjunction with it. Thus, suppose