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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.

AFTER reviewing motorcoach history and outlining the transition period of development, the author says that operation and maintenance go hand in hand, but too much stress is placed on maintenance methods and not enough on operation. He has yet to find a transportation superintendent who makes motorcoach operation a subject of paramount importance, although the manner in which the coach is driven may decide whether that particular coach makes money or loses it. In the author's opinion, the success of any coach and its freedom from repairs are dependent upon how well the driver knows how to drive it and, secondly, upon systematic lubrication and scheduled maintenance. The selection and training of drivers is a function of the transportation department, and too much stress cannot be laid on these functions and on continuous close supervision so that the department is certain that the vehicles are driven correctly.