Greyhound: Separation and Allocation Procedures for Western Greyhound Lines 1961 - Cal PUC by AC Porter

• .:'

Exhibit 78 . J.une 6 , 1961

Witness A .e .porter. CALIFORNIA PUBLIC UTILITIES COMM!SSIÚN

TRANSPORTATION DIVISION ~ ,

ENGINEERING ECONOMICS BRANCH

PASSENGER SECTION -

' ,'

" .

APPUCATION No. 400571Amd.) EXHlSIT No.: 78 WrFNESS: A. C. ?ORTER DATE: JUNE 6, 1~61 COMMISSIONER: MITC:iElL EXAMINER: THOMPSON

** * .

SEPARATION AND ALLOCATION PROCEDURES EQR

WESTERN GREYHOUND , LINES , (A DIVISION OF. THE GREYHOUND CORPORATION)

* * * * *

San Francisco, California May 17"" 1961

TABLE OF CONTENTS

Page Foreword .

Section 1 - General Discussion

Account 3200 - Passenger Revenue • Account 3210 - Special Bus Revenue (Ch~rter) Account 3400 - Expr e ss Revenue Bus Mile Expen s e s .•.. • Tr affic Characteristics . . Operating Zones and Zone Gro uping . Motor Coaches and Motor Coach Grouping . . Equivalent Passenger Mi1e Al1ocation Method Account 4143 - Revenue Equipment - Accident Repair • Ac coun t 4151 - Servicing Revenue Equipmen t -Lubri cation. Accoun t 4152 - Servicing Revenue Equipment-Wa shing

and Clean ing • Account 4211 - Super vision of Transportation • Account 4220 - Dri ve rs I Wages . Acco un t 4230 - Fu e1 for Revenue Equipment Acc ount 4262 - B~idge , Tunne1 & Ferry To11s Account 4308 - Stat i on Expenses Accou nt 43 11 - Station Salaries Ac count 4331 - Commi ss ions Paid Account 4340 - Inter1ine Commissions Paid Ac count 4350 - Interline Commissions Earned Station Overheads. . . . . • . . . . . . . . . . Account 4410 - Salaries and Expenses, Traffic Solicitation Account 4440 Tickets and Baggage Checks Account 4470 - Advertising . . • . . . . Ac count 4531 - Public Liability and Property Damage Self Insurer • Account 4600 - Administrative and General Ex pense • Investment, Reserve and Depreciation, Expense,

Land and Structures • Account 5310 - Equipment Rents - Debit Account 5350 - Equipment Rents - Credit .

**********

TABLE OF CONTENTS Section 11 - Procedures Page Account Account Account Account Account Account Account Account Account Account Account Account

3000 4100 4200 4300 4400 4500 4600 5000 5200 5300 1100 1200

· .

66 Operating Revenues • · . . . · · · · 75

Equipment Maintenance and Garage Expense 83

Transportation Expense · · · · · · · · · 92 Station Expense . · · · · · · · · · · · · 99

Traffic and Advertising Expense. 104

Insurance and Safety Expense · · · 112

Administrative and General Expense 113

Depreciation Expense · · · · · · · 121

& Licenses Operating Taxes 129

Operating Rents - Net. · · · · 135 Material and Supplies . · · · · 113 & 136 Investment . .

· ·

**********

Glossary ,

. . . . .. . . . . . . .. .

137

********** List of Illustrations Operating Divisions - The Greyhound Corporation 5 Operating Di vis ions - Wes tern Greyhound Lines . • . • 13 Chart A - Length of Ride - Bus Miles Per 1000 Passenger Miles 22 Passenger Toll Trips . . . . • . • . . . . . . • 42 Figure 1 - General Procedures For Allocating California Station Salaries - Account 4311. 47 General Separation and Allocation Procedure . . . . . . 65

********** List of Tables 1 11 111

IV V

VI VII VIII

System and California Average Cost Per Bus Mile Maintenance of Equipment - Zone Group 1 . . . . . • 17 Procedure for Distributing and Allocating Maintenance of Equipment Expense to Zone Groups . . . . . . . . 18 Equivalent Bus Mile Percents - California Operations Zone Group l . . . . . . . .. ....... 19 Equivalent Passenger Mile Percents - California Operations - Zone Group 1. . . . . 20 Mainline Zone Groups . . . . . . . ....... 23 Local Zone Groups . . . . . . . . . . . .. 27 Motor Coach Groups . . . . . . . . . . . . 29 System and California Average Cost Per Bus Mile Drivers' Wages - Zone Group 1. . . . . .. 38

FOREWORQ Western Greyhound Lines, a division of The Greyhound

Corporation~, is engaged in furnishing intrastate and inter足 state passenger and express motor coach transportation services in 11 Western States* and Canada.

The intrastate services are

subject to the jurisdiction of the several state regulatory bodies and the interstate services are subject to the jurisdiction of the Interstate Cornmerce Commission .

Two

distinct types of service are rendered by the company; these are intercity-mainline and local-interurban services.

The

former i5 generally termed mainline service and the latter local service.

The mainline service is involved in the common

transportation of both intrastate and interstate traffic, whereas the local service is almost exclusively devoted to intrastate transportation in certain metropolitan areas of California, Oregon, and Washington.

In terms of bus miles

operated, the mainline service represents ninety percent of the company ' s operation.

It follows then that the major

portion of the company's facilities are used in common for both intrastate

a~d

interstate traffic.

Similarly, the major

portion of the company's expenses are incurred in providin g these joint services.

Therefore, a uniform method of

separation between intrastate and interstate traffic is essential so that revenues, expenses, taxes and investment

~ See map, Page ~ .

* Arizona, California, Idaho, Nevada, New Mexico, Monta na, Oregon, Texas, U~h, W ashington and Wyoming. - 1 足

subject to the respective types of traffic may be determined. This manual is the product of a joint effort made over the past two years by the staff of the California Public Utilities Commission, Transportation Division, Engineering Economics Branch, and the management of Western Greyhound Lines to develop fair and equitable separation and allocation procedures acceptable to both parties.

The procedures

contained in this manual, although specifically designed for Western Greyhound's operation in California, are considered to be generally appropriate for any intercity motor coach operation under any jurisdiction.

In certain cases, further

analyses and studies may be required in order to adapt the procedures to such additional separations. The long established primary principIes upon which this manual is based are those of "actual use" or "relative use"*.

An attempt has been made to minimize "relative use"

and maximize "actual use" separations.

This objective is

best realized by the practically direct separation of local operations from system operations, which represents the ideal allocation.

However, due to practical considerations, certain

"short cuts" are occasionally used where it can be demonstrated that they produce essentially the same results that would be obtained by more thorough and time-consuming processes thus balancing the ideal allocation with the practical. procedures

Unite ~

outli~ed

The

represent, in the judgment of those

States Supr eme Court, Smith V. 111inoi5, Bell

I~lf20Qne Cq.~ 282 U. S . 133 (1930). - 2 足

preparing the manual, as near an ideal allocation' as present data and methods permite

However, it should not be construed

that this manual is the final answer to all motor coach allocation problems; on the contrary, it is to be expected that improved techniques will develop as new data and testing procedures are devised.

Most of the fundamental procedures

used in this manual were developed by the staff of the Commission and presented in hearing$ before the Commission in Application No. 38019 of Pacific Greyhound Lines, a predecessor of Western Greyhound Lines.

Numerous improvements of those

procedures have been incorporated herein especially in the use of data processing equipment and special study techniques.

exposition is made for the many pathways explored, given careful consideration and ultimately discarded for lack of practicability or validity. The procedures developed have been tested for practicable application against two historical periods of company operations.

The first test was made for the year

ended March 31, 1960, and the second for the year ended September 30, 1960.

Fortunately, changes in traffic patterns

made these two periods sufficiently dissimilar to afford a reasonable test as to whether results produced by the procedures accurately reflect the change in results that can be predicated by informed judgment. This manual has been prepared in two sections. Section 1 deals with an explanation of the approach to and solution of allocation problems involved in the major accounts. It is not intended to be a complete dissertation on technique

- 3 足

but, rather, a brief outline of the approach used.

Section 11

sets forth in detail the procedures used for each individual account and is intended to be first, a working outline for the use of those thoroughly familiar with the special studies and techniques employed and, second, a general outline for those wishing to further explore the bases used for allocating each account. For convenience, a glossary of terms as they are especially used herein is included at the end of the manual.

- 4 足

Mannoba

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--.;,;;.!....;;;;;;;;;;;;;;;;;;;;;=;;;;;;~----~-----".. Eastern Greyhound Lmes - - - - - . New Mexico Transportation _ . - - - Southeastern Stages Central Greyhound Unes Eastern Canadian Greyhound Unes

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Southern Greyhound Unes Greyhound Unes of Canada Kerrville Bus Company Southern Kansas Greyhound Unes

- - - Western Greyhound Unes - - - - - Crown Coach Co.

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SONOU

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Only one coupon requ ired between El Paso and lake Charles via either Fort Worth or San Antonio.

CONNECTING CARRIERS

1. B. C. Coach Unes 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

Orange Belt Unes Oklahoma Transportation Co. Colonial Coach Unes Gray Coach Unes. ltd. Canyon Transportation Co. Interm ountain Transportation Co. Jack Rabbit Unes Jefferson Transportation Co. Sun Valley Bus Unes Lem eli n Bus Unes Quebec Cenlral Transportation Co. Nava·Hopí Tou rs

14. 15. 16, 17, 18. 19. 20. 21. 22 . 23. 24. 25. 26.

Northern Transportation Co. Harmony Short Unes l as Vegas·Tonopah·Reno Stage Unes Provincial Transport Co. Saskalchewan Transportalion Ca. S.M.T. (Eastern) Ud. Northea stern Missouri Unes T .N .M. & O. Coaches Triangle Transportation Co, Vermonl Tra nsit Co. Redd ing'lakev iew Slages Yosemite Transportation System Manitoba Motor Transit

27. 28. 29. 30. 31. 32. 33. 34. 35. 36 . 37 . 38. 39.

Citizen Auto Stage Ca. Boise Wínn emueea Slages Twin FallsWells-Nevada Slage Canadian Coacllways. Ud. North ern Stages. Ud. Carlsbad Cavern Coaehes Alaska Motor Coaches Gray Une Pacífic Stage Unes Harbar Unes Gulf Coast Motor Une Abbott Bus Unes Northwestern Sl age Une

Thc sole pur p<: provided whe:: routin gs. R e ! e

A separate c o up o ~ points or over co ~ carrier over whi c ;

Points al whic h tl:. pany's coupon.

I NSElU ( A)-TO ALASKA

(

The sole purpose of this map is to indicate the point s bf'!twecn which individual ticket coupons should be pro vided whcn passengers are roulcd via t he companies shown hereo n . It does nal show 3111 avaitab l e rou t ings. Rt'Íerence must be madc to tar i!!s for authority to route traHic via eith.! r these a l' a thel' r autes . The ticke t fol'm of the company t hat first cardes the passenger is to be used . A scparate caupo n i5 required lo r caeh eo m pa ny shown 01'1 this map. see ¡c gcnd . In selling transportation to points al' over con nc e tin g carders nol sho wn on this map. a n additional coupon i5 required lor each connecting carrier ove r which passenger is routcd. Points at which t"h e passenge r requires s topover s are lo b t: indieated on the r everse side ol the p r ape l' com pany's coupon . Thi s ma!> is nol drawn to scale

LIT HO . I N U. S . A.

ACCOUNT 3200 The total system

p ~ 6sen ge ~

PASSENG~~

REVENUE

r evenue .f We ster n Grey_

hound Lines is represented by the value of a11 tickets honcred throughout the sy5tem; it i5 determined for any 5pecific period of time by summarizing all of the ticket sales applicable te transportation provided during that periodo is regularly developed for statistical zones.

Passenger revenue These data are

used as the basis for the revenue for a state or individual operation.

In developing passenger revenue by zones, the

average revenue per passenger mile for a particular zone is applied to the total passenger miles traveled in that zone for any given period of time.

This developed zone revenue is then

corrected to the actual revenue by a small adjustment factor. The average revenue per passenger mile and the passenger miles are developed in the following manner: A revenue factor (average fare per passenger mile) for an individual zone is determined by analyzing a11 the tickets honored on the zone for periodic three-day test checks. Portions of the through fares for tickets used in interzone transfer travel are prorated to the zones involved on a mileage basis; for combination fare tickets, the effect of differences in fare structures are restricted to the portions of the trip where they apply.

In rating a zone, the prorated fares are

combined with fares of intra-zone riders for the test periods; the total zone revenue thus obtained i5 then divided by the passenger miles traveled in the zone during the test periods and the result is the revenue per passenger mile.

Between

test periods, this average fare per passenger mile for each zone is adjusted according to the fluctuations in the average - 6 足

length of ride by adding or subtracting an experimentally determined revenue factor for each two-mile variation of the average length of ride.

inc~ement

in the

The total mainline

passenger revenue for the various sta tes is determined for any specified period by developing the zone revenue earned in a state for every zone operating in that state for the periodo The total mainline intrastate revenue is then developed zone by zone by applying the relationships that existed during the test periods. Zone passenger miles are tabulated from drivers' daily trip reports.

The passenger miles related to each

driver's report are calculated by extending the number of through passengers by the driver's division route mile s and the number of intermediate passengers by an average distance of travel determined by the periodic checks; these checks are a150 used to determine the percentage distribution by sta tes of the total passenger miles traveled in interstate zones and, similarly, the sta te intrastate passenger miles in each zone. For the various local or suburban operations, periodic testsof the average fare per pas5enger are made by analyzing the ticket lift for three-day periods.

This

average fare is then applied to the total passenger count for a given period determined from drivers' daily records of the number of passengers carried.

The passengers are summarized by

weekdays, Saturdays, and Sundays; each category has its own average fare per passenger.

Passenger miles for local

operations are developed from these passenger statistics and average lengths of ride determined from periodic samples.

O 0 - 7 足

ACCOUNT 3210 - SPECIAL BUS REVENUE (CHARTER) Special bus revenue for a given period, applicable to individual state and intrastate operations, is developed from regula r special studies.

These special studies involve

an analysis of revenue earned by the various operations during selected months of the periodo

(As an example, for

the year ended September 30, 1960, the months of November

1959, May 1960, and July 1960, were analyzed.)

From this

analysis the revenue earned in a particular state from intra state charter trips is developed and becomes intrastate char ter revenue.

A further analysis is mada to determine what

portion of the revenue earned from intersta te charter trips is assignable to that particular state.

The intrastate to

tal is added to the interstate total for the state and the result is the state total charter revenue.

These totals are

then related to the system revenue for the test months to obta in percentage factors to apply to recorded revenue for state total revenue and state intrastate revenue.

For va

lidity, current factors are compared to factors us ed for previous periods.

Bus mile, passenger and passenger mile

statistics pertaining to special bus operdtions are developed from the same test months. For allocation purposes, the revenues and expenses pertaining to charter are assigned to a special mainline zone group concerned exclusively with charter operdtions.

Even

though about lOr of the miles operated in charter service are run by buses which ordinarily are used in local operations, the mileage costs of operating these buses and the investment and depreciation expense attached to them are allocated to the charter zone group. O O O

ACCOUNT 3400 - EXPRESS REVE NUE

The total amount of express revenue earned by Western Greyhound Lines during a specific period of time is determined by tabuldting the individual charges shown on all of the bus úills on

used during the periodo

The charges shown

busbills used for interline shipments are allocated to

Western Greyhound Lines and the connecting carriers on a mileage basis. The allocation of express revenue among the various states in which Western Greyhound Lines operates is based on percentages which are determined by periodic checks of all busbills

handled throughout the system.

The express revenue

analysis made for the test period includes a suromary of all intrastate revenues by states and a distribution on a mileage basis of the revenues earned on all interstate shipments to the states involved.

The total express revenue earned in any

state during the test period is the suro of the intrastate and allocated interstate revenues.

Using the totals thus ob

tained, the percentage of system revenue that is earned in each state is calculated; also, for each state, the per centage of system revenue that is represented by its intra state revenue is calculated.

These percentages are then used

in allocating system express revenue to any state both on a total or an intrastate basis. A remarkable degree of consistency has been observed when comparing percentages developed in different

-9

test periods even when these periods varied considerab1y in duration of time.

For example, a three-day check made in the

Spring of 1960 produced essentially the same results as one made for the entire month of October

1959.

Approximate1y three percent of system express revenue is earned by local operations.

There are, of course,

certain expenses attached to the handling of express which must follow any allocation of express revenue.

In order to

simplify the a11ocation procedures, no express revenue or offsetting

expenses are charged to local operations.

This

procedure has the effect of understating the net income of local operations; such understatement is considered negligible in view of the fact that analyses show that the cost of handling an express shipment is approximately the same as the average revenue received per local shipment.

This method does

not impair the accuracy of total intrastate and state results of operations due to the fact that local express revenues and expenses are assigned to applicab1e mainline intrastate operations.

-10足

BUS MILE EXPE NSES More than 60 percent of Western Greyhound's ex penses are directly related to bus miles operated.

Through

the media of company records or special studies the major part of these expenses can be identified with the operation of particular buses or routes.

It is, therefore, not too

difficult to isolate bus mile expenses to the various s ta tes even th ough the operational routes in the case of mainline operations may cross several state borders.

Since all local

operations of the company occur entirely within pa rticular states, they are easily separable to the various states in volved.

The main allocation problem arises wh en ex penses

pertaining to mainline operations must be alloc ated to the intrastate and interstate traffic that is handled in c omm on by those operations within or into a given st a te. (From a practical stand point, this same problem does not exist on local operations due to the fact that these oper ations are in excess of 99 percent intrastate and,therefore, are con sider~d

for allocation purposes to be 100 percent intrastate.

No appreciable distortion results from this procedure as both revenues and expenses are treated in the same manner.)

there were no differences in the characteristics of intra state and interstate traffic, the actual use of common bus miles could be based on the passenger miles ,of each type of traffic.

However, research in the matter of r elative use of

bus miles by intrastate and in t erst ate traffic reveals very definite differences in load fa ct or character is tics.

The

assembled data show very clearly that on the overall the

-11

number of bus miles required to produce 1,000 passenger miles is greater for short-ride passengers than for long-ride passengers indicating a lower average load factor for the short-ride than for the long-ride passenger.

Statistics for

the State of California show that the avera ge ride of inter sta te mainline passengers is about three times as long as the avera ge ride of intrastate passengers.

These facts lead to

the conclusion that the allocation of ex ) enses should be made on the basis of relative use rather than actual use.

A dis

cussion of the method of providing for this relative use,as well as differences in bus mile costs resulting from assign ment of different types of motor coaches to the various serv ices, follows. The 6peration of Western Greyhound Lines is divided into units known as divisi ons. (See Map - Page 13).

These

divisions are set up primarily for operating purposes with very few statistics usable for allocation purposes maintained by divisions.

The company's smallest unit of operation is

the bus tripe

The next largest unit is the zone, which is a

collection of all the through and turnback bus trips of a given natu~e, (e.g., general service, express service, etc.) operating between two termini on the system.

For example,

all of the ex press bus trips operated between San Francisco and Los Angeles via the San Joaquin Valley route are known as the Zone 155 operation.

General statistics are maintained

for sorne 160 oper ating zones and a r e develo ped or discussed elsewhere in the reporto

After a careful analysis made by

Commission engineers and company personnel, the operating zones have been formed into homogeneous groupings to -12

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S. F. MARIN S. F. PENINSULA LOCAL OP ERA TIONS IN DIVISION 5

, AlBUQUERQUE

WESTERN GREYHOUND LINES LAS CRUCES

OPERATING DIVISIONS

---

,EL PASO

LITHO IN U . S A

facilita te the processing of the data necessary to allocate bus mile expenses generated by the various zone operations. Eighteen mainline and ten local zone groups were established based on the follawing criteria: l. General service area,

2. Characteristics of service

(e.g.~

interstate,

intrastate, local), 3. Drivers' wages in cents per bus mile, 4. Load factors, 5. Equipment used. About 1,500 motor coaches of various ages and types are used by the company; they also have been classified into homogeneous groups to facilitate allocation procedures.

The

follo vdng criteria were used to establish motor coach groups: l. Year model, 2. Type (e.g., transit, mainline, scenicruiser), 3. Maintenance cost, 4. Fuel consumption, 5. Miles operated per year. In establishing the zone groups and bus particular criterion was given preferential weight all were considered for overall effect.

group~

bu~ rathe~

A completelisting of

zones and zone grou0s and motor coaches and motor coach groups is set forth on Pages 23-29. Once established, the zone groups and bus gro ups provide a ready means of determining, for a particular period, the bus miles operated by the several bus grou ps over the various zone operations contained in the zone groups.

discussed elsewhere in the report, each driver turns in a -14足

trip r eport at t he end of each of his runs. indirectly,

Directly or

this r e port c ontains, amo ng other t hin gs, the

bus operated, t he bus miles operat ed and the origin and des tina t ion of the dr i ver's tripa

From this inform at i on, the

bus miles by bus group by zone group by state may be deter mi ned.

It would be im pr a ctical to analyze all of the drivers!

trips fo r saya year pe riod a nd , therefore, s orn e c ontro l l ed sampling procedure must be used.

For the year ended

September 30, 1960, sample s were taken for th e month of November 1959 and Se ptember 1960.

The comp lete samp le t o

ta led about 125,000 driver trips which is about 12 pe rce nt of the total fo r the year.

Using data processing proc edures ,

the sample was reduced to a perc e nt age s pread of bus mil es by bus groups for each zone group fo r both system and California op eratio ns. Page 17.

The résult is shown in Column 7 of Table 1,

To e xplai n

further~

Column 7 ind icates that 1.5

pe rcent of the syst em bus miles for Zone Group 1 were oper ated by equipment assigned to Bus Group 1, 14.8 percent by Bus Group 2 , etc.

The lo wer ha lf of the same column in d ic ate s

that of t he bus mi les ope rated in California 2.0 percent were operatad by Bu s Group 19 17.1 percent by Bus Group 2, etc. Once t he relationship of the bus mil es operated by t he various bus groups in Zone Group 1 has been es t ablished, the ave ra ge per mile cost f or a particular acco unt is deter mined .

This is done by re lat ing the actual cost per bus mile

f or the ye ar to the percent ag e spread by bus type.

As an

example , thi s process i s shown in Ta ble 1 for Account s 414 1 ana 4142, Equipment Ma in tena nce Ex pe Lse.

As developed in

Column 8, tlle average maintenance e xpense fer al l bus miles operated in Zone Group 1 is 3.60 ~. Similarly, t he bus ~~les - 15

op erated in Ca lifornia average 3.64 4.

Data processing pro足

cedures are used to com plete this process for each of the 28 zone groups.

The average system and California bus mile costs

are then a pplied to the actual zone group bus miles for the year as shown in Table 11, page 18.

This calculation pro足

duces the maintenance expense for each zone group as shown in Column 4, Table 11.

Because the bu s mile distribution

sam ple is not perfeet, the expense distributed to the zone groups does not balance exactly to the ledger, being in error by about 2.6 percent.

The distributed Californi a

ex pense in Column 7 is corrected by the factor 1.02612 to produce Column 8 which then becomes comparable to the total system expense of $5,076,987 as recorded on the company's 1edger and stands as the maintenance ex pense for operating zone groups within the State of California; the remaining step in the procedur e is to allocate the California expense t o th e intrastate and interstate traffie of each zone

gro~p.

t his point, it beeomes necessary to aceount for the previously discussed differenees in traffic charaeteristie s .

This is

done by developing the equivalent passenger mile per c ents sho\臓vn in Column 9 of Table 11.

The follo vving diseussion of

the method of developing these equivalent passenger mile percentages pertain to mainline operations only, sin c e the California local zone groups are considered to be . 100 pereent intrastate. From zone statisties for the year ended Sept ember

1960, the bus miles per 1,OOO.passengermiles and the average

-16足

TABLE 1 ACCCUl\JTS h141 & 4142 - lVIAINTENANCE OF EQUIPiviENT

SYSTEi'V¡ AND CALIFORl'JIA AV.c;RAGE COST PER BUS 1VIILE

ZONE GROUP 1 - YEAR ENDED SEPTEMBER JO, 1960

:A/C

lÜ4J., 42:

:Maintenance

: Expense Per Bus : Bus i~ri1e :Nov. 1959: :Group:Year Ended Samp1e ; No. : 9-30-60 IvriJ.e s - 71 ) (2·) (3) ,'"

Syste:n 1 2 3

4 ~

6 7 8 9

11 J.2

4.42~

4.73 4,,16 3.16 2.72 3. 80 2.76 2.10

4.92

3.84 0.56

Tote,l S:fste!T:.,

:Sep. 1960:

Samp1e Niles ( )

1.8%

1.5% Summary 14.8 of the Line 0 9 1.9 8~306 By 0,8 Line 0.8 7,432 Products 66 of 6.1 4.5 58,214 8.3 Columns 75,983 7.9 (2) & (7 ) 14.1 10.7 102,900 1107 1.4 13,290 37.2 32.5 313,126 98 ,388 10e3 ~ - -' 11,405 270,,470

1.2%

6,517 4,910 9,744

1.4 2.8

2,531

0~7

10,152 30,401 61,784 77,717 149,185

2.9 80 6 17.5 22.0 42.3

352,941

100.0%

959,580

100.0%

5,160 3,492 7) 215

2.2% 1.5 3.1

10,714 206,691 352

1. 7% 32.7

2,531

1.1

7,401

1.2

7,h18 20,535 43,535 47,513 92,648

3.2 8.9 18.9 20.7 40.4

45,796 52,986 43,453 7,571 193 J 973 61., 055

7.3 8,, 4 6,,9 1ó2 30 8 9.7

230,,047

100.0%

629, 992

100.0%

28 0 2 0

California

--r-4.. 42~ r, ~

)

4073 4.16

3. 16 2.72 3.80 2.76 2.10 4.92

0.56

6 7

3.84

Total - - California -

- 17

0~1

100.0%

J.6oi

2.0%

17.1 Summary 1.6 oi: the Line 1. 2 By Line 5.3 Products 8.7 of 12.9 Co J.umns n.o (2) & (7) ")5 o .......-:¡

..J±.~9

100 ,0%

.}.!6)~

ACOOUNTS 4141 ANO 4142 - MAINTENANCE OF EQUIPMENT YEAR ENOEO SEPTEMBER 30, 1960 SYSTEM - CALIFO RNI A - CALIFO RNIA INTRASTATE

SYSTEM

ZON E GROUP (1)

1 2 3 4

ro 11

-i (")

é 9 10 11 12 13 14 15 16

WE IGHTED AV ERAGE MAI NTENANCE EXP ENSE FOR ZONE GROU P (2 ) 3 .60,é 2.83 3 .31 4.41 3 . 61 3 .43 3 .21 3 . 15 3 .81 3 . ~7

2. 3 3 .61 3 .47 4.1 2 3 .60 2.843 . 57 ;é 3 . 91 TOTAL MAINLI NE

::o

l> l> r

(J)"T1

-u 0 0::0

::o ~

-i l>

::! -u

0(")

< (-J)

-i _

-r0 Z:;! I

(J)

3 .7 ,é 3 ·0 3 .86 4.62 4 .29 ~g 3 .46 2.79 3 'é9 3. 3 3 . 93 TOTAL LOCAL

~é

TOTAL SYSTEM

Bus MILES OPERATED YEAR ENDED SEP .30,1 960

WEIGHTED AV ERAGE OISTRIBUTED MAINTENANC E MAINT ENANC E EXP ENSE FOR EXPENSE ZO NE GROUP

(3)

10 ,806 ,763

3 , ~9 , 502 4 , 5, 17~

1, 596 ,69 16 ,459 ,034 3 ,1 % ,070 11 ,23 1,860 2, 171, 277 7 ,408 ,26 1 2,49 1, 049 2 ,633 , 514 6 ,415 ,1 51 7 ,609 ,618 21, 041, 468 8, 511, 419 730 ,862 4 ,254 , 576

$ 389-,04ª 94,50 161,368 70 ,414 594 , 171 107 ,910 360, 543 68 ,39') 282 , 2~

83 , 9 74, 528 2~ 1, 587 2 4 ,054 866 ,908 306 ,41 1 20 , ~

151 ,

7 , 552,14~

~~~:~~t

1, 2i 2 ,03 4

122 ,274 ,43

~ 5, 559. 13, 11, 009

46 ,694 "-' , 003

2é , 025 74 , 67 111, 01 167, 616 7 ,200 44, 225 24 ,1 40 15, 1~2 $ 523 ,7 2

135,885 ,444

$4 , 947 ,728

1 ~ ' 511 72 , 038 1, 616,427

2,m ,822 4 , 5.8, 394 2

1,166,

6~0 , 28 1,

OI STRIBUTED MA INTENANCE EXP ENSE

(6)

(7)

(8 )

3 .64,é 2 .83 3 . '22 4· 3. 1

6, 989 ,642 3 ,339 ' {)12 2,376 , 2 773 ,240 16 ,459 , 034

$ 254 , 42~ 94 , 50 76 , 535 33 ,79 1 594 , 17 1

$ 26 1, 000 9é ' 000 7 , 500 34 ,700 609 ,700

2.49 3 . 50 3.41 2.87 3 .61 3 .23 4 . 14 3 .60

324 ,315 3 ,249 ,300 2,413 ,380 1, 689 , 970 6,415,1 51 ~ , 709 , ª27 ,620 , 77 8 , 511, 419

8 , 075 113 ,726 82 ,296 48,502 23 1, ª8~ 119 , 1 274 , 104 306 ,411

3 . 58 4 .07

3 ,825 , 548

136,955

(5)

(4 )

01 (/)

-(/)

<D (1)0 _ Z

TOTAL LEDG ER *FACTOR TO ADJUST TO LEDGER :

CAL IFO RNI A IN TRASTA TE CAL IFORN IA INTRASTATE ADJUS T To ALL OCATED LEDGER EQU IV ALEN T MAINT ENA NCE PASSENGE R COL . (7) EXPENSE X 1. 026 12* MIL E PERCENT

Bus MI LES OP ERA TED YEAR ENDED SEP .30 , 1960

71: §~§:~

- ,é

3 .86 4.62 4 .29 3 .46 2.79 3 ' é9 3. 3 3 . 91

($5,076,987) ~ ($4,947,728)

1 ~ , 800

8, 300 116,700 84- ,400 49,800 237 , 600 123 ,000 28 1,300 314,400

0.9 22 . 9 91•'2 67 .3 97 .ª 22 . 20 .2 93 .6

100 26 ,700 77 ,000 33 ,500 23 1, 200 28 ,000 56 ,800 294,300

$2 , 590 , 97

140, 500 221.400 $2 ,658 ,300

27 .3 87 .4

38 ,400 1 96 '~00 $1.7 5 . 00

2 J 5 , ~9.5

111 , 01 167 ,616 7 ,200 44 , 225 24 ,140 13,861 $ 470,764

28 ,800 76 ,600 11 3 , 900 172 ,000 7,400 45 ,400 24 ,800 14 ,200 $ 483 ,1 00

84- ,1 84- ,280

$3 , 06 1, 461

tl.Jf!-1 ,400

= 1.026 12

~ .1%

, 000 2 1,700 8 ,200 532 ,300

726 , 038 1,61 6,427 2 ,587,822 4 ,844 ,394 258 , ~ 1,1 66 , 630 ,281 3~ . 508 12,1 ,413

$5 , 076 , 987

( 10 )

(9)

.6 27 .6 23 .6 87 .3

(")

::o O - ~ r ~

51 52 53 54

CAL IFORN IA

28 , 025

74 , 67~

- % 100 . 0 100 .0 100 .0 100. 0 100 . 0 100.0 100 .0 100 .0

28 ,800 76 ,600 113 , 900 172 ,000 7 ,400 45 ,400 24 ,800 14, 200 $ 483 ,1 00 $2 ,239 ,600

I~ ~ ~

length of ride of each passenger is determined fo r al1 oí the 72 mainline zones operated in California; a graphical plot of this data is shown on Chart A, Page 22.

Al so shown on the

chart is a weighted curve determined from the general equation b

Y=aX

+ c.

The San Francisco office of the Service Bureau

Corporation* was retained by IJestern Greyhound Lines to assist the Commission staff in developing a reliable equation to represent the data.

The purpose of the curve is to determine

the relative number of bus miles needed to serve 1,000 passenger miles for various given lengths of ride.

Again using

Zone Group 1 as an example, the bus miles assignable to inter state and intrastate traffic from zone group statistics and Chart A are developed as set forth in the following table:

---_ ._ -

TABLE III

Zone Group I - California Operations Only

Item

(1) Average Length of Ride - Miles (2) Bus Yúles Per 1,000 Passenger

Miles - Chart A

T~e of Passenger : Intrast8.te: Interst ate,: Total Zon~ (3) (1) (2)

199

698

369

40.2

33.3

36.3

(3) Actual

B12S M iles Per 1,000 Passenger Miles Year Ended 9-30-60

35.3

(4) Relative Bus Miles Per 1,000 Passenger Miles (2) x l2.:) ' LJ.ne 36.3

39.1

32.4

35.3

I I I i I

( 5) Actual Passenger Miles (000) Year Ended 9-30-60

(6) Equivalent Bus I~les Year Ended 9-30-60 Line (4) x Line (5)

(7) Equivalent Bus Miles-Percent

II 110,62l

202,588

],595,910 3,584,120

7,180,030

91,967

2°·1%

49.9%

* A subsidiary of International Business Machines .. 19

100.0%

Ine .

II I

The 50.1 percent shown on Line 7 of Table 111 i s applied to Zone Group 1, and allocates to California intrastate traffic $130,800 of the $261,000 total California expense. The relative expense per passenger mile for the two types of traffic then becomes: $130,800

= 0.142

For interstate: 110,621,000 $130,200

= . 118

For intrastate:

91,967,000

Â°

~/Psgr. mile

~/p ~ s 9r. mile

Comparing the results shows the expense al10cated per passenger mile for intrastate to be 20.3 percent higher than for interstate. Of course, this also is the relationship of the figures 40.2 and 33.3 from Chart A and shown on Table 111. In actual practice it becomes more convenient to calculate equivalent passenger miles.

Using length of ride,

passenger miles and Chart A, the calculation for Zone Group 1 is developed as set forth in the following

table~

TABLE IV :Chart A Equivalent :Adjustment:Passenger Mile Percents Percent Factor -Unadjusted Ad,justed

40 .2

Intrastat e

91,967

45.4%

3b.3

50.3%

50.1%

Interstate

110,621

54.6%

33.3 36.3

50.1%

49.9%

Total Zone

202,588

100.0%

100.4%

100.0%

- .

~_.

_----

. _~ -

_ . _-

The foregoing procedures are followed for each oĂ the rnainline 'Zone groups operating in California

- 20 Â

and~

with

the minor exceptions as noted in the fo11owing text, are used for the fo11owing accounts in addition to Accounts 4141 and 4142: Account 4160 - Tires and Tubes - Revenue Equipment Account 4220 -

0river~f

Wages and Bonuses

Account 4230 - Fuel for Revenue Equipment Account 4240 - Oil for Revenue Equipment Account 5021 - Depreciation of Revenue Equipment Account 5211 - State, City Tax - Fuel Account 5212 - Federal Excise Tax - Fuel and Oil Account 5220 - Vehicle License an d Registration Fees Account 5232 - Personal Property Ta xes - Buses Account 1221 - Investment - Revenue Equipment Account 2521 - Reserve - Revenue Equipment

o e o

- 21 足

eHA RT

--,

180 ~---'--------'---'-----'-------'--IIr------rI------'I -'-1 ~ I 170~--~-----+-----r----~----+--

WESTERN

GREYHOUND

CALIFORNIA 160 I----o--r\_--+_ _f - -_

+ - - _- I _

__+_-

ZONE

LINES

OPERATIONS

YEAR ENoEo SEPTEMBER 3 oI I 96 o-

150 ~--~-----+----_r----1_----+_----r_--~----_+----_+----_r----+_--~

140~---4----_+----~----4_----+_----~--_4----_+----_+----~----+_--~

130 ~---4----_+----~----4_----+_----~--_4----_+----_+----~----+_--~

w -' 120~--~-----+----_r----1_----+_----r_--~----_+----_+----_r----+_--~ Q::

W C>

1I0~---j----_+----_+----~----+_----~----~--~----_+----~----4_--~

~ ~

c:[

100~--_4----_+----_+----~----+_----~--~~--~----_+----~----4_--~

o :z c:[

90~--~~--_+-----+----_r----+_----r_--~~--_+----_+----_r----+_--~

o :x: 1 80~~_4----_+-----+----~----+_----r_--~r_--_+----_+----~----+_--~ Q::

W CL

70 ~4__4~--_+-----+----~----+_----r_--~~--_+----_+----~----+_--~

:=1

\ : :" WElGHTEO CURVE EQUATIO. 6 o ~----\-r-l \ . ~.. o--+-----~---4-----+-----+----~~ y = 2 2 I X - 05 16 + 2 5 _8

" o

::::>

o, o o

5 o ~---o4-~",---t.o,-"----+-'oroo --t-----+--- r -----¡r----1

: o

o~:.... o

AVERAGE LENGTH OF RIDE FOR ALL ZONE PASSENGERS _ _ BUS MI LES oPE RATE D PE R -

1,000

0 0

PASSENGER MILES _,

40r-----t---..r+--~-+1-~~oH_~~+_--~rLO --_r----+_~.o_+----_r----~

~T:o:-r_-t--~/--+-~o~_J~U o

•

30~---4----_+----~----4_----+_----~--~~--_+----_+----_r----+_--____j

20~---4----_+----~----4_----+_----~--~----_+----_+----~----+_--~

10~---4----_+----~----4_----+_----r_--_4----_+-----_+----~----+_--~

O~--~----~----~----~----~----~--~~--~----~----~----~--~

100

150

200

LENGTH WKC

300

250

350

R I DE - 22

400

450

500

550

600

MIL E S CALIFOR N I A PUBLIC UTllITIES COMMISSION TRANSPO RTAT ION DIVISION APR IL 5,196 1

-------------- ------

Table V Sheet l of 4 MAINLINE ZONE GROUPS Zone Group , I

l San Diego-Los Angeles-Seattle

.' Zone 102 San Diego-Los Angeles-Seattle (Express) lone 105 Los Angeles-Portland-Seattle lone Group

2 Los Angeles-Sacramento-Redding

lone 107 Los Angeles-Redding

lone 111 Los Angeles-Sacramento (Express)

Zone 113 Los Angeles-Sacramento

lone Group

3 San Francisco-Portland-Seattle

Zone 116 San Francisco-Seattle (Express)

lone 118 San Francisco-Portland-Seattl e

lone 120 San Francisco-Klamath Falls

lone Group

4 San Francisco-Southwest

Zone 140 San Francisco-Bakersfield lone 141 Barstow-Albuquerque lone Group

(

5 San Francisco-Los Angeles-San Diego

lone 142 San Francisco-Los Angeles-San Diego (Coast Express) " lone 146 San Francisco-Los Angeles (Coast) J lone 149 San Francisco-Los Angeles (Coast Ltd. Surcharge Service) l one 155 San Francisco-Los Angeles (Valley Express) lone 159 San Francisco-Los Angeles (Valley) . , Zone 162 San Francisco-Tulare l one Group

::'

6 Portland-Seatt1e-Vancouver, B.C. '7

.. F l' h

.. '

.1 ti

O lone 275 Seattle-Vancouver

lone o lone lone P lone

277 281 284 2a8

Seatt1e-Bel1ingham t Seattle-Port1and Seattle-Olympia

Seattle-Port Angeles

- 23 足

/ '

t. - ; \,. "

~....l

e':,

. I

Table V Sheet 2 oí 4 MAINLINE ZONE GROUPS Zone Group /-

Zone 1 lone Zene Zone Zone f Zone P Zone Zone >' Zone P Zone p Zone < Zone ;o Zone ! Zone P Zone Zone r ZOAe Group

Zone ., Zone Zone Zone Zone Zone Zone ~ Zone ~ Zone lone Zone Zone Zone Group /( '"

7 Washington-Idaho-Montana Mainline 121 170 172 180 184 291 293 296 297 299 301 303 304 308 310 315

The Oa11es-Spokane ~ Seatt1e-Butte I T,

Seattle-Spokane

Portland-Salt Lake City Twin Fal1s-Pocatello

Spokane- Wallace

Seattle- t ewiston r ,

Wenatchee-International Boundary

Spokane-Trail

Spokane-Creston Spokane-Portland ..-// . 1", . v Spokane-Umatilla-Portland

Spokane-Pendleton H... -, ,"

El1ensburg-George I \..c· ,.

Sa1t Lake City-Idaho Fa11s-Ashton

Deer Lodge~Helena-Ashton f I J ,.;.,; • - ) r.-

Port1and-Klamath Fal1s-Reno Port1and-Seaside

Port1and-Astoria (Columb i a River)

Port1and-St. Helens

Portland-Seaside-Astoria (Sunset Highway)

Corva11is-Newport

Port1and-Myrtle Point

Portland-Eugene-Reedsport Portland-Salem

Port1and-Eugene-Cottage Grove

Crescent City-Medford

Klamath Falls-Medford

9 San Francisco-Reno-Rock Springs, Wyoming

Zone 190 San Francisco-Rock Springs

Zone 200 San Francisco- l.:Vinnemucca-Wells

Zone 202 San Francisco-Reno

Zone Zone Zone Zone lone Zone Zone

8 Oregon Mainline

130 321 323 324 326 329 331 332 334 336 338 339

204 206 351 353 354 358 361

~;: r

Zone Group 10 San Francisco-Sacramento Area l'

San Francisco-Reno-Squaw Va11ey San Francisco-Nevada City Sacramento-Placervi11e San Francisco-Tahoe-Reno San Francisco-Sacramento (Express) San Francisco-Sacramento (Local)

San Francisco-Oroville-Reno

- , 24

1 1'1

Table V Sheet 3 of 4 MAINLINE ZONE GROUPS Zone Group 11 Redwood Empire Zone 133 San Francisco-Portland (Redwood)

Zone 135 San Francisco-Eureka

Zone Group 12 Other California Mainline

" ~

-. S .<:

(. f....

(. U

u L'

Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zene Zone Zone Zone Zone Zene Zone Zone Zone Zone Zone

136 137 151 152 371 379 381 383 384 386 401 404 406 408 414 416 418 421 431 437 439

442 446 449

San Francisco- Willits

San Francisce-Ukiah (Express) ,

San Jose-'3'a1inas . _, ," Los Angeles-Santa Barbara San Francisco-Santa Rosa ~

San Francisco-Fort Bragg

Santa Rosa- Monte Rie

Lake County

Sonoma Valley

Napa-Santa Rosa

San Francisco-Calistoga

San Francisco-Chico

\1 San Francisco-Stockton-Lodi San Francisco-Stockton-Lodi (Express)

San Francisco-Stockton (Contra Costa)

Stockton-Tuolumne

Sacramento- Woodland

Sacramento-San Jose

San Francisco-Pacific Grove

San Francisco-Santa Cruz-Salinas

San Francisco-Los Gatos (Express)

San Jose-Fresno

Santa Cruz-Bou1der Creek

Ho11ister- Watsonville

Santa Paula Valley , ,

Fresno-Tulare

461 \' 463 . <:"'1 : \ r .l. - .... n:;: -, ; . .. ¿¡ u 44 1 ,..5 F Zone Group 13 Los Angeles-San Diego-Rock Springs, Wyoming v

L L

Zone Zone Zone Zone Zone

131 210 220 222 224

f¡. ..

Los Angeles-Reno (Inland) Los Angeles-Salt Lake City-Rock Springs Los Angeles-Salt Lake City-Idaho Fa11s San Diego-Las Vegas

Santa Monica-Los Ang e les-Las Vegas

- 25

•

Table V Sheet 4 of 4 MAINLINE ZONE GROUPS Zone Grou:Q 14 Los Angeles-San Diego-Southwest /'1

/'1 I

,\.-,

/'.

Zone Zone Zone Zone Zone Zone

230 240 242 250 2.60 262

Los San San Los San Los

Angeles-Albuquerque Diego-Albuquerque (Exp~e.s.§ ) Diego-Flagstaff Angeles-El Paso Diego-El Paso Angeles-Tucson (Express)

Zone GrouQ 15 Los Angeles-South V 'v

v ~

465 471 474 479 482 491

Zone Zone Zone Zone Zone Zo ne

-4.~-4

Los Angeles-Calexico

Santa Monica-Palm Springs /. ,.>o',c , Los Angeles-San Diego (Express)

Los Angeles-Port of Entry (Express)

Los Angeles-San Diego

Los Angeles-San Diego (Inland)

L oY" Z ,,'-'

(l r

J -

.!':.

L .... .

Zone GrouQ 16 Arizona Miscellaneous V\'

\\ \'1.'

--/ 1_"

Zone 495 Phoenix-Tucson Zone 498 Tucson-Douglas

Zone Group 17 Guaranteed and Special Operations y SI'

_1"' r

-r

•

~, "'01

....

{.,

• ¡..

..:

('-I"t-,.I

Zone 501 Guaranteed Operations-Southern Pacific Company

',, Zone 509 Escorted Tours

,-,' " ~

.......

Zone Zone Zone Zone Zone Zone Zone

511 Harrahs Club 512 Growers Farm Labor 513 Military 514 Nevada Lodge 515 Snow Specials 517 Carson City-Nugget Club 519 Ot her /" Ctl. /- No .S' Y I

Zone Group >(

\¡.

-I"'l...?

1--1·, ,..

',....'

' '

18 Charter Operations

Military and Government Migrant Labor Rail 5ubstitution School Contracts Extended Tours Etc.

- 26

Table VI Sheet 1 of 2 LOC¡-\L ZONE GkOUPS

~ ~

Zone 618 Seatt1e-Everett Zone 622 Seattle-Auburn Zone 627 Seatt1e-Tacoma

Zone 636 P ort1and~Forest Grove

Zone 645 Port1and-McMinnville

ZOD&~~O~D :¡.~

y ? <

Zone Zone Zone Zo ne

53 East Bay 650 654 656 690

San Francisco-Vallejo-Napa

San Francisco-Vallejo (Express)

Oakland-Va1lejo

San Francisco-Pinole-Port Chicago

Zone 664 San Francisco-Concord-Pittsburg (7th Street) Zone 673 San Francisco-Concord (Transbay Terminal) -'- Zone 680 Oakland-Concord ':.

~one "(

'--

_D D

.../.J .J.)

Group 55 Marin "" .'.

Zone Zone Zone Zone Zone Zone Zone

700 710 720 740 760 790 798

San San San San San San San

Francisco-MilI Val1ey (F erry) Francisco-Ross Valley (Ferry) Francisco-Novato (Ferry)

Francisco-MilI Valley (7th Street)

Francisco-Ross Valley (7th Street)

Francisco-Novato (7th Street)

Francisco-Bolinas

Zone Zone Zone Zone Zone Lone

800 810 840 870 880 886

San San San San San San

Francisco-San Jose (Bayshore) Francisco-Palo Alto (Bayshore) Francisco-Redwood City Francisco-San Jose (Express) Francisco-Pedro Francisco-Half Moon Bay .;. .. , .'

y .... c

- 27

•

Table VI Sheet 2 of 2

Zone GrouuLJ=ong Beach E..

Zone 900 Long Bea eh-Santa .iloniea

Zon~Gro~Q F

E 1.;.

58 San Die99.

Zone 906 San Diego-Mexican Border Zone 922 Niland-Calexico Zone 926 San Diego-¡;iramar

zonL§rou\) 59 iAi li tary ~

Zone 944 Fort Ord Army Base Zone 948 Travis Air Force Base-San Francisco Airport

Zone 969 Oakland-Bay Mea dows \,, Zone 971 San Francisco-Bay i.iea dows e Zone 976 San Be rnardino-San Ysidro

1).

- 28

TABLE VII

MOTOR COACH GROUPS

GrOup No. 1 2 3 4 5 6 7 8 9 10 11 12

-:Year Mode1L_Coach 1947 1948 1942 1947 1951, 1952 1954 1953, 1954 1957 1958 1954, 1955 1956 1960

GMC GMC GMC ACF GMC GMC GMC GMC GMC GMC GMC GMC

~ode.L

PD 3751 PD 3751 PO 4151 LC. 41 PD 4103 PD 4103 PD 4104 PD 4104 PD 4104 PD 4501 PO 4501 PD 4104

Seats

37 37 37 & 41 37 37 & 39 41 39 39 38 43 43 38

SUBTOTAL (2 ) 51 52 53 54 55 56 57 58 59 60 61

1940, 1941 1945 1951 1952 1954 1955 1954 1957 1947 1948 1948

106 52 163 161 3 193 74 125 15@ 73 76 1,176

GMC - TD 4502 GMC - TD 4506 GMC - TDM 5103 GMC - TOM 4509 m'lC - TDivl 4515 GMC - TOM 4515 GMC - TOM 4801 MACK - C - 49 Gj\.1C - PO 3751 GMC - PO 3751 GMC - PO 4151

SUBTOTAL (3 )

45 45 49 & 53 41 41 45 50 51 37 37 41

39 59 37 3 15 15 75 30 7 23 55

--358

TOTAL

¡~ l

: Uni ts (l L.

1,534

Units owned by Western Gr eyhound Lines - March 31, 1960. Primari1y used in Main1ine Service. Primari1y used in Local Service.

- 29

ACCOUNT 4143 - REVENUE EQUIPMENT. ACCIDENT REPAIR There are no accident repair cost statistics which would show how much expense of this nature is incurred in the different divisions.

There are, however, data available by

division of buses damaged.

Analysis indicates no reliable

correlation between public liability and property damage expense and number of buses damaged in a particular division. For example, in Division 5 during the year 1954*, there were 11 buses damaged per million miles and th e cost for PL & PD was 1.784 cents per mile.

In Division 2 during the same

period, 1.6 buses were damaged per million miles and the PL

& PD expense was .766 cents per mile.

These data show that

buses damaged for like amounts of bus miles were 6.9

times

greater in Division 5 than in Division 2 but the ratio of PL

& PD costs per mile between the two divisions was only 2.3 to l.

This indicates, as might be expected, that the frequency

of accidents is much greater in Division 5 due to its metro足 politan area location than in Division 2, but that the severity is greater in the latter due to the higher average operating speeds encountered in desert service. It would seem logical that the greater the damage occurring to a bus in an accident, the greater the PL & PD expense that would resulto

Wh ile for a particular accident

it would not be possible to estimate accurately the PL & PD expense from just the amount of bus repair expense that resulted, it is believed that the two expenses are roughly

*This may seem to be remote information; however, it was the last yca r available in which all outstanding claims had been settled. -30足

proportional.

That is to say, when the cost of PL & PD is

$3,000 per collision the cost of repairing a damaged bus is approximately 3 times as great as when the cost of PL & PD is only $1,000 per collision. One statistic that is available and becomes useful in designing the allocation procedure for this account is that of accident repair expense by type of coach.

This allows

an expedient method of determining repair cost applicable to local and mainline operations.

Ihis is done by making a

special analysis of company records and in the case of local operations final allocations

zone groups can be made on

the basis of bus miles. For main1ine operations the allocation is based on Account 4531, Public Liability and Property Damage Expense. In the absence of any sound statistical evidence this method is based on the informed judgment of the Commission staff and company personnel.

e o

-31足

ACCOUNT 4151 - SERVICING REVENUE EQUIPMENT - LUBRICATION

All of the various types of motor coaches operated by Western

Gr~hound

Lines are on the same mileage

schedule for lubrication service.

Ihe current schedule is

lubrication service for each bus at 2,500 mile intervals. Investigation into the cost of lubricating the various types revealed that no appreciable difference in cost per lubrication exists between the most luxurious type of coach such as the Scenicruiser model and the more simplified type such as the local transito

For these reasons an

equitable allocation of lubrication expense can be made on the basis of bus miles with equivalent passenger miles used to allocate intrastate mainline expenses from total state mainline expense.

- 32 足

ACCOUNT 4152 - SERVICING RgVENUE EQUIPMENT 足 WASHING ANO CLEANING

The majority of the expense incurred in this account results from the routine washing and cleaning of buses for appearance purposes in their daily operation. The remainder constitutes expense of thorough cleaning, deodorizing, and disinfecting of bus interiors plus periodic steam cleaning of motors and chassis. A study of methods of properly allocating the expenses of this account was made in 1953 by the Stanford Research Institute of Menlo Park, California.

The results

of this study show that washing and cleaning tends to increase per bus mile as the round trip mileage of buses decreases.

This difference is more clearly evident when

comparisons are made between local and mainline operations than when comparisons are made between different mainline operations.

The comparisons made between different mainline

operations give no clear answer to variation in expense due to the fact that it is difficult to determine the expense incident to "sweepouts" and window washings of buses making long continuous trips. In the final analysis, a reasonable allocation procedure is to develop the expense for local operations separately from mainline operations and then allocate each of these to the respective state and intrastate operations on the basis of bus miles.

This procedure may ha ve a

tendency to understate to a minor degree the expense for

- 33 足

intrastate mainline operations but the practical application of the method is judged to outweigh this minor distortion. Based on a special analysis, the local bus miles are assigned 2Y多 times the expense of a mainline bus mile to accomplish

the allocation of system expense to local transit buses and mainline buses.

- 34 足

ACCOUNT 4211 - SUPERVISION OF TRANSPORTATION

Supervision expense by operating divisions is readily available from records maintained by the company and when related to recorded division bus miles produce expense per bus mile by division.

From this process, an average cost

per mile for California mainline and local operations can be determined which reasonably reflects operations therein even though certain California divisions share division territory with other states.

(See Map, Page 13.)

Divisions

operating entirely or partially in California are 1, 2, 3, 4, 5, 6 and 7; Division 5 comprises the major local operations in and around the San Francisco Bay Area.

As can be seen

from the division map, the mainline operations in California are conducted for the most part in Divisions 3, 4, and 6. After considering all factors, the weighted average expense per bus mile for these divisions is concluded to be the average expense for all California mainline bus miles. The allocation to California intrastate is accomplished on the basis of the relation of intrastate mainline equivalent passenger miles to total California mainline passenger miles. For local operations, the expense per mile for Division 5 is used for those operations primarily of a transit or commute nature with certain other local operations (Military and San Jose Express) being assigned the cost per bus mile developed for Division 4 which is the highest cost mainline division operating in California. I11ustrating from the summary developed for the year ended September 30, 1960, the expense for California

- 35 足

is developed in the following manner: Account 4211 Division No.

4/BM

0.99~

0.47

0.92) Weighted average ) of these three 1.07~ divisions used for California main足 0.89) line bus miles.

1.06

1.30

5 (2)

2.96

4 (1)

(1) Used for Zone Group 59 and Zone 870. (2) Used for all California local operations except those in Footnote (1).

- 36 足

ACCOUNT 4220 - DRIVERS ' WAGES

Account 4220 is essentially treated in the s am e manner as other bus mile ex penses; this method is discussed under Bus Mile EX Renses beginning on Page 11.

However, the

development of the average cost for each zone group is accomplished in a di f ferent manner t han is shown in Table 1, Page 17. ~qui pm ent9

Unlike bus mile expenses such as maintenance of drivers' wages are determined by the ope rating

characteristics of iones rather than operating character足 istics of zones a nd types of motor coaches operated.

becomes necessary, therefore, te establish the relative drivers' wa ges by zones and translate this to average ce st by zone group to com plete the equivalent passenger mile allocation procedure.

A comp lete study of dr ivers' wages by

zones was completed for the month of October 1959; studies show that October is a reliable month to establish the re pr esentati ve

va riation which obtains between zones for

drivers' wages for a full year pe riodo Ana lyses also produce posi tive evidence that this relativity does not ch a nge even though drivers' I:'iage rate s change fr om period to period i this f a ct obviates the necessity of frequent drivers' wage chec ks which are costly and time consuming to accomplish. (From time to time, special checks must be made to adjust the expense for zones which undergo operational changes affecting drivers' wages.) Once the relative zone cost per bus mile is est a blished, it is a simp le step to prod uce aver age cast for System and Cal ifornia zone group bus miles.

-37足

Continuing

with Zone Group I as an examp1e, the bus mi1e expense for the 9

group is developed in the following manner and takes the place of the 3.60 and 3.64 cents per bus mile shown in Table 11, Page 18. TABLE VIII Account 4220 - Drivers' Wages S:;tstem and California Averaqe Cost Per Bus Mile Zone GrouQ I - Year Ended SeQtember 30. 1960

vveighted fri vers' Wages': Bus Miles Operated: Dollar :Average Crivers' : Amount : Wage Expense Zone :P er Bu s Mi le: Year Ended : (ifx( 3) : F 0'1' Zon~ Grouo No. : la/59 Check: Se ot 30 1960 (1 ) (2 ) (4 ) (5 ) (3) System 102 12.910<j: 105 13.282<1: Total S:;tstem

9,216,016 _1 1 59° 1 747 10,806,763

California 162 12.910<1: 105 13.2824 Total California

6,020,637 --269,00Q 6,989,642

$1 9 189,788 --211..1 283 $1,401,071 $ $~

777,264 128,2703 905,967

12.2 651

12.9621

- After this process is completed for each of the 28 zone groups, en appropriate factor to correct to ledger totals is app1ied to the California distributed expense and a

procedure similar to that sho wn in Table 11 is fo110wed.

O O

-38

6~~OUUI-4230_=-f~g1-F08 REVEN~E EQU1M\lg~I

The treatment of fue1 expense for motor coaches i5 similar to that out1ined for Account5 4141 and 4142 with the exception that a correction factor i5

ap ~ lied

to the distri足

buted California fue1 expense which accrues as in Column 8 of Table 119 Page 18.

The correction is based on the fact that

due to it5 oil production, California enjoys a favorable position in the fuel market.

In order to reflect this ad足

vantage in the fuel expense allocated to California and California intrastate operations, the adjusted di5tribut ed expense for each zone group operating in California is corrected by a factor dependent upon the extent of its California operation.

This factor reflects the follo wing

proce dure for zone groups operating in California: l. Mainline zone grou p s operating primarily in California service (2, 5, la, 12, 15 i 17, 18) based on average California price per gallon, 2.

~ ainline

zone groups operating primarily in

California inter5tate service (1, 3, 4, 8, 9, 11, 13, 14) based on average of California price per gallon and price per gallon outside California, 3. Local zone groups operating in San Francisco Bay

Area (53, 54, 55, 56, 59, 60) - San Francisco price per gallon, 4. Local Zone Group 57-Los Angeles price per gallon, 5.

Local Zone Group 58-San Diego price per gallon.

QO O

- 39 足

ACCOUNT 4262 - BRIDGE, TUNNEL & FERRY TOLLS For mainline operations, system tolls ex pense is developed by zones frorn scheduled bus trips through toll crossings.

Frorn this

developmen~

tolls paid in California

may be separated, at which point, it becomes necessary to determine the amount of tolls paid in California that should be allocated to the California total operation.

It would

be sound reasoning to conclude that sorne of the toll expense in California should be assigned to other states, if the theory "the expense is for the good of the whole trip" is adopted.

It would also be reasonable to allocate sorne of

the toll expense in other states to California operations. If a San Francisco-Chicago trip is considered, a portion of the toll paid in San Francisco would be allocated to all st ates between Cal i fornia and 111inois, inclusive.

The

size of this account does not justify the analysis necessary to allocate on this basis and therefore an alternative method is used that allocates toll expense only to passengers riding in California on zones involving toll expenses.

All tolls

paid in California are considered applicable to the California operations only and are therefore applicable to California passengers only.

Since California interstate and intrastate

passengers regardless of length of ride, pay the sarne ex t ra fare when their trip involves a toll crossing, this method amounts to a revenue offset which is reasonable and fair since the extra revenue paid is included in California total passenger revenue.

For intrastate, a reasonable allocation can

- 40 足

be made on the basis of intrastate passengers as a percent of California total passengers for toll zones involved.

doing this, the assumption is made that the percent of California passengers making a toll crossing on the zones involved is the same for both intrastate and interstate. \fuile the assumption is not entirely correct, it is believed that the error introduced is negligible and results in a slight overstatement of California intrastate expenses. (See diagram - page 42).

The amount of this overstatement in

view of the size of the account is deemed to make no appreciable distortion in the over-all results of the California intrastate operation. Special studies are made to determine tolls applicab1e to local operations.

- 41 足

Examp1e of a bus trip subject to a toll which serves through three states from San Francisco to a desti足 nation outside Western Greyhound Line's territory and the 13 tYres of passengers (arrows) who might use this service. Passengers 1, 4, 5, 7 are related to toll expense.

However,

passengers 1, 4, 5, 7, 10, 11, 12, 13 will be used to allocate to intrastate.

This method wou1d give correct results if: 10

1 + 10

4 +

11 + 12 + 13 +

5 + 7 + 11

WESTERN GREYHOUND LINES CALIFORNIA I

San I I

BUS

STATE # 2

STATE # 3

TRI P

Z O N E足

Fran cisC9 h-Intra*

2-Intra

I I

3-Intra

4-Inter*

I I

5-Inter*

I I

6-Inter

7-Inter* 8-Inter 10-Intra

9-Inter

ll-Inter 12-Inter

~TO~1 POlnt

l3-Inter

* Tariff Fare Inc1udes To11 Charge. - 42 足

ACCOUNT 4300 - STATI ON EXPENSE

SPECIAL NOTE A general discussion of the procedures deve10ped for the allocation of station expenses is contained in this section.

Included are explanations of the methods used for

the following accounts: l.

Account 4311 - Station Salaries

Account 4331 - Commissions Paid

Account 4340 - Interline Commissions-Paid

Account 4350 - Interline Commissions-Earned

5. Various

Station Overheads

More comprehensive explanations of the methods used for the various accounts are contained in a separate vOlume, which is devoted exclusively to station expense alloc a tion and in which is includ ed the deta iled studies and statistical data used in developing station expense alloc a tion procedures.

-43足

ACCOUNT 4311 - STATION SALARIES The basic premise used in developing the allocation procedures for station expense, including station salaries, is that all of the expenses applicable to the intrastate operations of a particular state are incurred entirely within that state.

This conclusion follows consideration

of the fact that an intrastate passenger by definition, is one whose trip is consummated without crossing a stateline and he therefore never has occasion to use any station facilities located outside of the .state in which he travels. Inasmuch as all of Greyhound's station facilities are available to both intrastate and interstate passengers, the problem presented in developing the intrastate station expense for any single sta te is a matter of determining what portion of all the station expenses in that state pertain to intrastate operations. For the State of California. ticket selling time studies were made at most of the company operated stations with particular attention given to the larger facilities at San Francisco, Los Angeles. Sacramento and San Diego.

Through

these studies, the relative length of time required to sell various types of tickets was determined.

These findings were

then applied to a special analysis of the 570,000 ticket sales which had be en made for all California stations for the month of May 1959; May is considered a typical month as it represents a transition period between the seasonal variations evidenced by the heavy summer vacation travel and the comparatively light volume of business in the winter months.

- 44 足 ._-------足

The allocation of baggage clerks' wages presents a two-fold problem; first, a separation between baggage and express handling and, second, an allocation of both categories to intrastate and interstate service.

Activities in the

baggage departments of California stations W2re carefully observed by members of the Commission's staff and lengthy discussions were held with terminal managers and working personnel in arriving at a means of separating baggage clerks' wages between baggage and express handling.

Special allocation

studies were then made for both baggage and express handling. In connection with the problem of allocating baggage handling expense, thousands of departing passengers were interviewed at the major stations concerning the origins of their trips, their destinations, and how many bags they had checked.

The results of this survey were combined with

those obtained from several special checks made by the company. Analysis of these studies, taken either collectively or in足 dividually, devaloped the fact that the number of station bag handlings incurred by the average passenger are directly related to the distance of his trip.

It was therefore

concluded that the proper method for allocating baggage handling expense is on the basis of passenger miles. The allocation of express handling expense is based on percentages developed from an analysis of the relative number of intrastate and interstate bus bilIs handled at company aperated stations during a representative test periodo

- 45 足

Station salaries, other than those for ticket clerks and baggage-express clerks, or employees whose functions are close1y re1ated thereto, are classified as over足 head expenses and are allocated in the rnanner out1ined for this type of account as discussed under Station Overheads. Figure 1, following, schernatica11y presents the procedures for a110cating Account 4311.

- 46 足

GENERAL PROCEDURE FOR ALLOCATING CALlF

ACCOUN ~

STATlON 5 (CALIFORNIA

TICKET CLERKS TELEPHONE ANO INFORMATION CLERKS

BAGGAGE - EXPRESS CLERKS

TRAVEL 8UREAU

SPECIJ STUDY

SfECIAL STUOY

NON E TO LOCAL

MAINlINE

LOCAL

SPECIAL STUOY

100% INTRA

MAINlINE BAGGAGE

MAINlINE EXPRESS

PSGR. •MILES

PIECE HANOllNGS

1 JINTERI

IltHRA]

t INTER1

II-N T RA

1INTE-RJ

[

ACCOUNl CAlIfO INTRAS

woC

FIGURE I ,ALlFORNIA STATION

SALARIES (ACCOUNT 4311)

~ OUNT 4311

ON SALARIES ORNIA STATIQNS)

CASHIERS STENOS : TICKET OFF ICE CLERKS

TERMINAL ADMINISTRATlON

CUSTODIAL EMPLOYEES

SPECIAL STUDY

SPECIAL STUDY NONE T9 LOCAL

MA1NlI~E

LOCAL

PASSE,NGERS

100% INTRA

1 r INTRAI

INTE足R

COUNT 43J I :AlI FORN lA NTRASTATE

- 47 -

CALIFORNIA PUBlIC UTILlTIES CO MM IS SI ON TRANSPO RTATION DIVISION - MA R22,I 96 1

ACCOUNT 4331 - COMNITSSIONS PA ID An appreciable volume of passenger ticket sales, express forwarded and received, and charter trip promotions are handled by non-salaried agents of Greyhourid who operate on a commission basis.

The compensation paid these agents

is generally ten percent of the revenue that they se cure for the company through their sales efforts. The percent of California intrastat e passenger revenue that is subject to commission is determined by an analysis of the revenue and ticket sales for a typical month. For the test month, the portions of both mainline and local intrastate revenues that are subject to a commission a r e ascertained.

The percentages thus obtained are then used in

estimating passenger revenue commission expense. The portions of intrastate express and charter revenues subject to commission ex pense are determined in a similar manner except that the selection of test periods is not limites by the seasonal variations that occur for passenger ticket sales.

-~-

ACCOUNT 4340 - INTERLINE c Or"MISSIONS PAID

6CCOUNT 4350 - INT ER~):NE-Ca.i\i .ITSS I ON~i....EARÑED

Western Greyho und Lines as a division of

The

Greyhound Corporation handles passengers to and from points located in other Greyhound divisions in addition to inter changing passengers with other carriers on through con structive fare arrangements. and honored by Western.

Interline tickets are both sold

A commission is charged other

divisions and foreign carriers on the amounts of fares for travel over their lines on tickets sold in Western territory. Account 4300, Station Expense, is credited with these commis s ions earned.

The number of intrastate interline

tickets sold in California is so negligible that none of the commissions earned in California are allocated to intrastate service; any minor distortion therefrom is further lessened in light of the fact that the full amount of interline commissions paid and earned is charged to interstate service. The commission expense to Western for ticket s s old by other divisions or other carriers and honored on Western's lines i5 pro rated basis.

to California on a trunk-line, raute-mile

Ag ain, since an insigni f icant amaunt of this ex pense

pe rtains to California intrastate service, all of t he California exp ense is charged to interstate service.

e o n

-49

STATION OVERHEADS Various expenses of operating stations are of an overhead nature, that is, they are not chargeable to a particular function for which the actual use can be readily measured.

These expenses are incurred on behalf of all the

passengers who use company operated stations.

The number of

passengers of each category who use an individual station is reasonably indicated by the number of tickets sold to each type of passenger.

It has been observed that long distance

riders avail themselves of station facilities to a greater extent than do the passengers who make comparatively short trips.

Therefore, weightings reflecting this rela t ive usage

have been applied to the various types of passengers.

After

determining the total number of units of use for each type of service at the individual stations, the amounts of overhead expense chargeable to local service, intrastate mainline an d interstate service are calculated.

The percentage relation足

ships between the amounts of intrastate mainline and interstate expense obtained in this manner were found to closely approximate the percentage distribution of the

Califo~nia

main足

line passengers carried during the period for which the analysis of station ticket sales was made. The allocation of station overhead expenses is made to local services using the test percentages applicable to the individual stations and the remainder is charged on a sta te basis to mainline intrastate and interstate operations on the basis of the number of passengers carried in each clas s of traffic.

- 50 足

The f o11owing accounts are included in the s tation overhead group: Account No.

Description Expenses

4311

Terminal Managers, Assistant Managers and Agents Janitors, Redcaps and Porters Cashiers, stenographers and Ticket Office Clerks Light, heat, power and water Repairs, Buildings and Equip~ent Station Depreciation Real Estate Taxes ( Station) Personal Property Taxes (Station) Station Rent (Dr.) Station Rent (Cr.)

4311 4311 4315 4319 5011 5231 5232 5322 5.362

Income 5372

3601

(1)

3609

Station Renta1 Income Revenue from parcel lockers Other station revenue

(1) Category 2.

- 51 足

ACCOUNT 4410 - SALARIES AND EXPENSES. TRAFFIC S.Q11fillT10N

Employees whose salaries are included in this account are sales managers, assistant sales managers, regional sales managers, district sales representatives, and clerks and stenographers. The major portion of the effort of these employees is devoted to activities concerning commission and tour agencies. District representatives act as auditors and keep track of ticket and express sales, sometimes select sites for agenci e s and sign contracts for agency operations.

Other functions of

their positions are the solicitation and promotion of charter and package express

business~

They are also responsible for

placing signs and advertising material in company stations. The net tangible results of the efforts of these employeesare difficult to determine as are the relative amounts of their time that should be assigned to their various f unctions.

These salaries and expenses are therefore

considered to be related to the over-all operation and are al l oc a ted to the different services in particular areas on the ba sis of passenger miles which is judged to be the most equit able measure of the employees' activities.

- 52 足

ACC OUNT ltlt40 - 'rICK8'rS_.AND BAGGApE

gliS:cK§,

There are three main types of tickets in general use oy í/vestern Gl'eyh ound. (1)

Roll tickets - preprinted destinations These are used for trips entirely within Western's System.

They are mostly

intrastate tickets although there are an appreciable number used for interstate trips. (S.F.-Reno and S.F.-Portland are examples.) (2)

Open form tickets - origin, destination b1ank These are used for various destin a tions to which the vo1ume ofpassengers is insuf fi~ient

tickets.

to warrant carrying a supply of roll While these are used largely f or

interstate and interline trips a considerable number are used in intrastate services. (3) 20-ride commutation tickets - tear off Used in local commute service.

In general, baggage checks are all of the same type with a few of the most-used having pre-printed destinations. No problem i5 encountered in allocating baggage check expenses as the expense is not applicable to local operations and for mainline operations is allocable on the basis of passenger miles as developed for baggage clerks' wages under Account 4 311.

-5 3 ..

- - --- - "- - - - -

For the allocation of ticket printing expense, a special study of the cost of printing tickets applicable to the local operations was made for the year ended March 3l t 1960.

After the removal of local operations ticket expense,

the remainder, which is applicable to mainline operations, lends itse1f readily to an analysis based on number of tickets used (passengers) and comp1exities of ticket (passenger miles). An analysis, made by the

Commissio~

staff and

company personnel of the cost of printing various types of mainline tickets and of the number used, indicated that the relative cost could be reasonably based on the number used and the distance traveled weighted equally.

Further analysis

revealed that after removal of the cost of local operations tickets from Account 4440, the remaining

e~ense

applied 75

percent to tickets and 25 percent to baggage checks.

Using

50-50 weight for passengers and passenger miles on the 75 per足 cent for tickets and 100 percent passenger mile weight en the 25 percent fer baggage checks, produces a weight of 37~ percent

for passengers and ~o

62~

percent for passenger miles.

In order

account for the duplicate state passenger count, the

passenger weighting was reduced on a judgment basis to 35 percent and the passenger mile weighting raised to 65 percent.

- 54 足

ACCOUNT 4470 - ADVEFĂ.TISING The advertising exp ense of all Greyhound companies is billed to The Greyhound Corporation.

The expenses of the

individual companies are added to that incurred by the corporation on behalf of the whole system

a~d

the resulting

total expense is reapportioned to the varlous companies on the basis of revenues earned. Western Greyhound does not have an advertising department.

The company sales managers ge nerally handle any

matte rs relating t o adv ertising which requi r e the attention of compan y representatives.

The actual arrangements for

radio 2nd television time, etc., are handled by advertising agencies. It is evident that the effort spe nt in securing in creased passenger business is directed toward people who do not ordi narily travel by Greyhound, that is, to those who ha ve never used the service or to those whose use of it has be en very infrequent.

Anyone who has used Greyhound serv ice

to any gre at extent is urllikely to be influenced by advertising o~ e

way or another with the possible exception of tour

adve rti sing or the suggestion of visiting specific places or attending speclal events.

However, the contribution to

passenger and revenue statistics made by passe ngers t hr ough r egular

iding habi t

(commute tr lps, particu lar 1 y) i s not a

reflection of the incurrence of advertising expense.

Even

though a regular or commute rider was originally influenced to try GreyhouGd service as the r e sult of insti t utional adverti sing, whether he continues this use depends entirely uron his pe rsonal experience with the service (e.g., frequenc yÂĄ - S5 Â

comf or t, speed, cost, etc.).

On c e a rider has weighed t h e se

factors and compare d them with those experienced on other me an s of transportation, he draws conclusio ns about the desirability of bus service and advertising is not likely to change those conclusions unless, of course, marked and specifie improvements in service are announced through advertising media. The only aecurate determination of the effectiveness of advertising in connection with a specific type of serviee should be made by knowing how much less business woul d have been done by the service had there been no adver t isiqg , or conversely, how much more with advertising. Th is differential seems impossible to determine in connection wi th mainline service and occasional local ri ding. It is unl ikely , however, that the volume of peak hour commute ri Qers wo uld have been measurably less for any period of time had the comp any no t e ngaged in advertising (partic ula rly since almost no advertising is specifically directed to them). The product that Greyhound advertises for sale is bus seat miles and the measure of sales is passenger miles. The sal es res u lting from advertising are the passenger mi les r epr esentin g certain occasional riders who are usu a lly of t he long haul type.

It appears, therefore, that an

equitable allocation of advertising exp en se, and th e one followed in this manual, should be made on a passenger mile basis with the judgment provision that all passenger miles r epre senting regular and commute riders be given half weight.

o O O

- 56 足

ACCOUNT 4531 - PUBLIC LIABILITY ANO PROPERTY OANlAGE - SELF INSURER Western Greyhound Lines provides its

own

insurance

for public liability and property damage with the exception that certain policies are carried with insurance companies to cover excess liability which might arise from individual accidents of asevere nature. The allocation procedure for Account 4531 is handled in a manner similar to that for Account Transportation.

421l~

Supervision of

Expense and bus mile records are available

by divisions and the use of these provides relative bus mile costs for California mainline and local operations.

Again as

for Account 4211 the average cost per bus mile for California mainline operations is judged to be the weighted average cost per bus mile for Oivisions 3, 4 and 6.

The allocation to

California intrastate mainline is based on equivalent passenger miles.

For California local operations the expense per bus

mile for Oivision 5 is used for Zone Groups 54 9 55, 56 and 57 except Zone 870 (San Francisco-San Jose Express); the expense per mile for Oivision 4 is used for the remaining California local operations. It is of interest to note that public liability and property damage expense for any current period is comprised of payments actually made for claims during the period as we l l as estimates made by company personnel of the probable liability

- 57 足

that will be assumed by the company for claims yet unsettled; it usually requires as much as six years to settle all claims for a given period, at which time, the actu a l cost of public liability and property damage for the period is finally determined.

- 58 足

Considerable research time was spent by the Commission staff in an attempt to establish a relationship between the various 4600 subaccounts and the numerous operating statistics and expenses.

The only reasonable correlation found was between

employees' welfare expense (about 50 percent of the 4600 group) and wages and salaries spread throughout the several expense groups in Accounts 4100 to 4500, inclusive.

The other functions

covered by the 4600 accounts are management, administration, and general accounting with the related expens es of maintaining a general office in San Francisco; these functions are affected by or affect the sundry activities of the entire operation oi the company.

For the most part, these activities may be

reasonably measured by the expenses comprising the 4100 to 4500 groups of accounts.

It is evident upon examination of the 4100

to 4500 groups that wages and salaries account for the major portion of the recorded totals in those groups.

Although a

determination can be made concerning the employees' welfare expenses applicable to wages and salaries paid, studies made reveal that no significant difference results if welfare expenses are related to account total s rather than just to the wages and salaries contained in the accounts; the latter method affords the advantage of eliminating a considera ble amount of detail with its attendant time-consuming analysis.

- 59 足 -

- ----------------------------- -

The accounts in the 4600 series are therefore prorated to the various op er a tions on the basis of the distribution of the expenses for the 4100 to4500 accounts.

- 60 足

INVESTMENT, RESERVE ANO DEPRECIATION EXPENSE-LAND AND STRUCTURES

The investments in land and the investments, reserves and depreciation expense as s ociated with the oper足 ating properties of the company are maintained on the ledgers by location and type of facility.

These facilities fa11 into

three categories : 1 - Stations 2 - Garages 3 - General Office

Following the general procedure for a110cation of station expenses, the investment, etc. for stations operated in California are separated by locations and treated in the same manner as station overhead expenses. Garage facilities are considered to be overheads to Accounts 4140 and 4150 and general off ice property as an overhead to Account 4600. The various accounts containing land and structures investment, reserve and depreciation expense are: Account 1201 - Land and Land Rights Account 1211 - Structures-Investment Account 2511 - Structures-Depreciation Reserve Account 5011 - Depreciation of Structures Account 1271 - Improvements to Leaseh01d Property足 Investment Account 2571 - Improvements to Leaseh01d Property足 Depreciation Reserve Account 5071 - Depreciation on Improvements to Leasehold Property Account 1291 - Unfinished Construction (where applicable to any of the aboye accounts)

o O

-61足

ACCOUNT 5310 - EQUI PMENT RENTS - DEBIT ACCOtJNT'5350 - ..-EQUIPMENT-RENTS -:-EREoIT . .. - -----足

_-_

These two accounts represent the rentals paid and the rentals received for the leasing of equipment between Western Greyhound and other Greyhound divisions and between Western Greyhound and certain non-affiliated carriers.

The rentals are

generally based on the cost per bus mile for the fixed expenses connected with ownership of equipment and include a return on the investment in the equipment.

Because of Western's

geographical position in the Greyhound system, buses owned by Western log more miles outside Western territory than buses owned by companies other than Western

l~g

in Western territory.

Te illustrate, Western will start one of its buses from San Francisco bound for Chicago and operate it to Rock Springs, Wyoming, the limit of Western territory.

At that point Central足

Southwest ern Greyhound would assume operation of the bus to Chicago, thereby providing through service without changing equipment.

(See map - Page 5).

In the same manner, Central

initiates westbound Chicago-San Francisco trips with owned equipment.

Cen ~ ral足

Western would operate that equipment from Rack

Springs to San Francisco.

Subtracting the Central equi pment bus

miles in Western territory (Rock Springs to San Francisco) from the Western equipment bus miles in Central territory (Rock Springs to Chicago) produces what are known as excess miles, these being in favor of Western. The total of situations such as the above example, but not necessarily confined to the San Francisco-Chicago operation,

pr ~duce

- 62 足

excess miles which are in

favor of Western Greyhound for any given periodo

(For the

year ended S eptember 30, 1960, Western's excess miles to t a1ed 2,767,170).

This situation resu1ts in the fact that Western

owns an excess of equipment over that nceded to opera te only those bus miles providing service in Western territory. For purposes of allocation, no adjustment is made for this excess of equipment and its attendant expense until a11 allocations have been achieved.

At that time appropriate

adj ustments are made to the f ixed expenses of investment, de preciation, and license feas as well as other minor adjustments for certain variable accounts included in the lease arrangements.

O 0

- 63 足

ยงillIONJ1.

GENERAL NOTE Throughout this section the word State is frequently used in describing the methods of allocating the various accounts.

Following . are sorne examples of its usage:

(1)

State Mainline

(2 )

State Local

(3)

State Intrastate Mainline

(4)

State Intrastate Local

The following allocation procedures are considered to be generally applicable to every state in which Western Greyhound Lines operates.

Therefore, when a results of

operation study is being made for any particular state, it should be understood that the name of that state (e.g., California, Washi ngton,Oregon, etc.) may be substituted for and is synonymous with the word State as used above.

- 64 足

~ 1,

GENERAL

SEPARATION

ANO ALLOCATION PROCEOURE

FOR WESTERN GREYHOUNO LlNES

SYSTEM

I SYSTEM

SYSTEM MAINLlNE

LOCAL

(J)

STATE

MAINLlNE

STATE INTRASTATE MAINLINE

REMAINDER lOTHER STATES' MAINLINE)

STATE INTERSTATE MAINLlNE

REMAINDER (OTHER STATES' LOCAL)

STATE LOCAL

STATE INTRASTATE LOCAL

STATE INTERSTATE LOCAL

STATE INTRASTATE OPERATIONS

CALIFORNIA PUBLIC UTILITlES

CO MMISS IO N

TRANSPORTATION

MAR 23,1961

DIVISION

ACCOUNT 3000

OPERATING REVENUES

ACCOUNI_3200 - PASSENGER REVENUE

SYSTEivl Develop System total into a n al y s i s o f e ompan y r e e o rd s •

z~""gr-ou¡:rs

from sp-e-cial

9YSJEM MAINLINE Separate mainline zone groups from System.

s YS TEM LOCAL Separate local zone groups from System....

9TATE MAINLINE Separate from System Ma inline by zone groups- on the basis of periodic zone chec k s.

§TATE LOCAL Separate from System Local by zone groups on direct basis. (No local zones cross state lines.)

§TATE INTRASTATE MAINLINE Separate fro m State Mainline by zone groups on the basis of periodic zone checks.

STATE INTRASTATE LOCAL Consider Intrastate Local tn be equal to State Local.

- 66 -

~ -- - ----------

ACCOUNT 3210 - SPECIAL BUS REY.E~9i6B1E~l.

SYSTEM

Develop System total into revenue by states from company records. SYSTENl MAINLI NE

Consider System Mainline to be equal to Syst em. S YS 1Eiv1 LOCAL

Consider non e of this account a pplicableto local operations. STATE MAI NLINE

Separa te from System Ma inline on direct b?sis by st ate total developed under System. 21L~TF

LOCAL

Not applicable. STATE

I~:rRASTATE

MA IN I.. I NE

Se parat e from State Mainline on the basis of a special analysis of company operations. §TATE I NTRASTATE LOCAL

Not applicable •

•. 67

ACCOUNT 3220 - BAGQ,AGE REVENUE ( EXCESsJ. SYSTEM

Develop System total into uftiform revenue per mainline passenger mile for system.

SYSTEM MAINLINE Consider System Mainline to be equal to System.

SYSTEM LOCAL Consider none of this account applicable to local operations.

STATE MAINLINE Separate from System Mainline on the basis of State Mainline passenger miles.

STATE LOCAL Not applicable.

STATE INTRASTATE MAINLINE Separate fro m State Mainline on the basis of Intrastate Ma inli ne passenger miles.

STATE INTRASTATE LOCAL Not applicable.

- 68 足

ACCOUNT 3300 - MAIL REVENVE

SYSTEM ~lop System total into revenue by sta tes from company records.

SYS TEM MAINLINE Consider System Mainline to be equal to Syst em .

SYSTD!l LOCAL Consider none of this account applicable to local operations.

STATE MA I NLI NE Separate from System Mainline on direct basis by state total developed und er System~

STATEJ:QCAL Not app licable.

STATE TNTRASTATE MAINLINE Allocate from State Mainline on the basis of equivalent passenger miles.

STATE INTRASTATE LOCAL Not applicable.

- 69 足

ACCOUNT 3400 - EXPRESS REVENUE REVENUE

ACCQVNT-'"]56o':-ÑEWS~APEF:~

SYSTEM Develop System total into revenue by states from analysis of company operations.

sp~cial

SYSTE¡lil MAINUNE Consider System Mainline to be e qual to System.

Consider none of this account applicable to local operations.

STATE MAINLINE Separate from System Mainline on direct basis by state total developed under System •

.§TATF LOCAL Not a pp licable.

5TATE I NTRASTATE MAINLINE Separate from State Mainline on the basis of a special analysis of company operations.

STATE INTRASTATE LOCAL Not applicable.

- 70

ACCOUNT 3601 - MISCELLANEOUS STATION REVENUE

SYSTEM Develop System total by states from company records of station revenues into the following categories: l. 2.

Revenue from baggage storage. Revenue from parcel lockers.

SYSTEM MAINLINE Allocate from System by category on the following basis: l. 2.

Consider System Mainline to be equal to System. Difference of System and System Local.

SYSTEM LOCAL l. Consider none of the revenue in this cate gory applicable to local operations. 2. Separate from System by states by stations on the basis of station overheads.

ST6TE MAINLINE Separate from System Ma inline by state total developed under System. (80th categories)

STATE LOCAL l. Not applicable. 2. Separate from System Local by state total developed under System Local.

STATE INTRASTATE MAINLINE Separate from State Mainline by cat e gory on the following bases: l. 2.

Passenger Miles. Passengers.

STATE I NTRASTP.TE LOCAL Consider Intrastate Local to be equal to State Local.

- 71 足

SYSTH1

---

Develop System total into r evenu e by states fro m company r ecords of statio n revenues. SYSTD1 MA I NLINE Difference of Syst em and System Local . SYSTEM LOCAL Allocate from System by states by stations on th e basis of station overheads. STATE

~fl¡AIN LI NE

Separate from .Syst em

~! ¡ ainline

on state basis.

STATE LOCAL Separate fro m System Local on stat e basis . STATE I NTRASTATE MAINLINE Separate fro m State Ma inlin e on the basis of Intrastate Mainline passengers. STATE INTRASTATE LOCAL Consider Intrastate Local to be equal to State Local.

- 72

ACCOUNT 3901 - GUARANIEED ROUf E: REVENUE_

Develop System total into applicable zone grou ps from special analysis of company records.

Consider System Mainline to be equ a l to System. SYSTEM LOCAL Consider none of this account applicable to local operations. STATE MA INLINE Separa te f r om System Mai nlin e by zone grou ps on the basis of a special ana 1ysis of c ompan y oper at ions. STATE tOCAL Not applicab1e. STATE INTRASTATE MA INLI NE Allocate from Sta te Mainline by zone groups on the bas is of Account 3200. STATE I NTRASTATE LOCAL Not app1icable.

73 足

AOCOUNT 3909 - OTHER OPERATING REVENUE

Develop System total into revenue applicable to: l. 2. 3.

Escorte-d Tours. Mainline operations. Local operations.

s YS TEt-1 MAI NLI NE S eparate from System on direct ba sis.

(Cate gories 1 and 2 above.)

SYSTEM LOCAL Separate from System on direct basis.

(Cat egory 3 above.)

STATE IvlAI NLINE Allocate from System Mainline on th e following ba ses: l. State Mainline escorted tour ope rating incom e in Account 4396. 2. State Mainline pass eng er miles. STATE LOCAL Separate from System Local on the basis of a special analysis of company operations. STATE I NTRASTATE MAINLI NE Allocate fro m State Mainline on the bas es outlined under Stat e Mainline. STATE I NTRASTATE LOCAL Consider Intrastate Local to be equal to State Local.

- 74足

ACCOUNT 4100

EgUIPMENT MAINTENANCE AND GARAGE

EXPENSE

ACCOUNT 4110 - SUPERVISION OF SHOP~O.GARAGE ACCOUNT 4120 - REPAIRS TO SHOP ANO GARAGE EQUIPMENT, pUILOING~ ANO GROUNDS ANO OPERATI ON ANO MAINTENANCE OF SERVICE EQUIPMENI ACCOUNT 4130 - LIGHT, HEAT, POWER AND WATER FOR SHOP§ AND GARAGES ANO OTHER SHOP AND GARAGE EXPENSES.

Consider these accounts as overheads to Accounts 4140 and 4150. Allocate to various operations, i.e., System Main1ine, System Local, etc., on the basis of Accounts 4140 and 4150.

- 75

ACCOUNT 4141 - REPAIRS TO REVENUE EQUIPMENT - MATERI AL ACCofJl\JT- 4 l 42 - REPAIRS TO RÉVENUE EQUIP MENT - ~ABOR

SYST EM Develop System total into zone groups by bus groups using cost per mile by bus groups from special analysis of company records and zone group bus miles by bus groups from special analysis of bus group mileage assignments to zone gr oups.

SYSTEM MAINLINE Separate mainline zone groups from System.

§YSTEM LOCAL Separate local zone groups from System.

STATE MI.\I NLINE Separate from System Mainline on the basis of Sta te Mainline bus miles of bus groups by zone groups.

STATE LOCAL Separate from System Local by zone groups on direct basis . (No local zones cross state lines.)

STATE I NTRASTATE MAI NLI NE Allocate from State Mainline by zone groups on the basis of equivalent passenger miles.

STATE INTRASTATE LOCAL Consider Intrastate Local to be equal to State Local.

- 7ó -

- --

- -

- - - --

ACCOUNT 4143 - REPAIRS TO REVENDE EQUIPMENT - ACCI DENT SYSTEM Develo~ System total into two bus types (mai nl ine and transit) using company records of cost per bus mile by bus type and bus miles operated by bus type.

SYSTEM MAINLINE Separate grom System by bus type used in mainline service using bus miles and cost per bus mil e developed under System. SYSTEM LOCAL Separate from System by bus type used in local service using bus miles and cost per bus mile developed under System. STATE MAINLINE Allocate from System Mainline on the basis of Accounts 453l-A and 4531-8. STATE LOCAL Separate from System Local by bus type used in applicable State Local service using bus miles and cost per bus mile developed under System. STATE INTRASTATE MAINLINE Allocate from State Mainline on the basis of Accounts 453l-A and 4531-8. STATE INTRASTATE LOCAL Consider Intrastate Local to be equal to State Loca l.

- 77 足

ACCOUNT 4151 - SERVICING REVENUE EQUIPMENT - LUBRICATION

SYSTEM Develop system total into uniform cost per bus mile.

SYSTEM MAINLINE Separate from System on the basis of mainline bus miles.

SYSTEM LOCAL Separate from System on the basis of local bus miles.

STATE MAINLINE Separate from System Mainline on the basis of State Mainline bus miles.

STATE LOCAL Separate from System Local on the basis of State Local bus miles.

STATE INTRASTATE MAINLINE Allocate from State Mainline on the basis of equivalent passenger miles.

STATE INTRASTATE LOCAL Consider Intrastate Local to be equal to State Local.

- 78 足

SYSTEM -Develo~ System total into two bus types (mainline and tra nsit) using cost per bus mile by bus type and bus miles operated by bus type obtained from special analysis of c ompany operations.

SYSTEM N1A INLI NE Separate from System by bus type used in mainline service using bus miles and cost per bus mile developed under System.

SYSTEM LOCAL Separate from System by bus type used in local service using bus miles and cost per bus mile developed under System.

SIATE MAINLINE Sepa rate from System Mainline on the basis of State Mai nline bus miles.

STATE LOCAL Separate from System Local on the basis of State Local bus miles.

STATE INTRASTATE NlA INLINE Allocate from State Mainline on the basis of equivalent passenger miles.

STATE INTRASTATE LOCAL Consider Intrastate Local to be equal to State Local.

- 79 足

ACCOUNT 4159 - SERVICING REVENUE EQUIPMENT =-9THER

SYSTEM Develop System total into uniform cost per mainline bus mile.

SYSTEM MAINLINE Consider System Mainline to be equal to System.

SYSTEM LOCAL Consider none of this account applicable to local operations.

STATE MAINLINE Separate from System Mainline on the basis of State Mainline bus miles.

STATE LOCAL Not applicable.

STATE INTRASTATE MAINLINE Allocate from State Mainline on the basis of equivalent passenger miles.

STATE INTRASTATE LOCAL Not applicable.

- 80 足

SYSTEJI1 Develop System total into zone groups using cost per mile by bus groups from company contract cost per mile and zont grou p bus miles by bus groups from special analysis of bus group mileage assignme贸ts to zone groups.

SYSTEM MAINLI NE Separate mainline zone groups from System .

SYSTEM LOCAL Separate local zone groups from System.

STATE MA INLI NE Separate from System M2 inline using state bus miles of bus groups by zone groups.

STATE LOCAL Separate f rom System Local by zone groups on direct ba sis. (No local zones cross sttite lines.)

STATE I NTRASTATE MA I NL INE Allo cate from State Mainl in e by zone groups on the basis of equivalent passe nger miles .

STAT E

I ~~RA STATE

LOCAL

Consider Intrastate Local to be equal to State Local.

- 81 颅

ACCOUNT 4191 - JOI NT GARAGE EXPENSE - DEBI T ACCOUNT 4196 - JO IÑT"~~"""CR E Di'T

A c~ounts 4191 and 4196 are overheads to Accounts 4140 and 4150 for intercompany motor coach maintenanc e .

Allocate to various operations, i. e., System Mainline, Syste m Local, etc., on the basis of Accounts 4140 and 4150.

- 82 -

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- _._ -

- --

ACCOUNT 4200

TRANSPORTATION EXPENSE

ACCOUNT 4211 - SUPERVISION OF TRANSPORT:UION - SALARIES

ACCOUNT-1;2l2-.:.2QFfR:VISION OF TRANSPORTATION- OTHER -

Develop System total into cost per bus mile by divisions using special analysis of tot a l expense by divisions and bus miles operated by divisions.

From System g separate expense of divisions that are wholly mainline. From System, allocate expense of divisions that are partly mainline and pa r tly local using main · ~ . ne bus miles and cost per mainline bus mile obtained f~om special analysis of company operati ons.

From System, separate expense of divisions that are wholly loc a l ~ . From System, allocate exper:se of divisions that are partly mainline and partly local using local bus mil e s and cost per local bus mile obtained from special an alysis of comp a ny operations. STATE MA INLINE

Separate from System Mainline by divisions on the b as is of State Ma inline bus miles. STATE LOCAL

Separate from System Local by divisions. STATE

TNTR.!\ST ~ TE

MAINLINE

Al locate from State Mainline on the basis of equivalent passenger miles. STATE INT RAS TATE LOCAL

Consider Intrastate Local to be equal to State Local.

- 83

ACCOUNT 4220 - DRIVERS' WAGES ANO BONUSES

SYSTEM Develop System total into zone groups using cost per mile by zone groups and zone group bus miles obtained from special analysis of company operations. SYSTEM N1AINLINE Separate mainline zone groups from System. SYSTEM LOCAL Separate local zone groups from System. STATE MAINLINE Separate from System Mainline by zone groups on the basis of State Mainline bus miles. STATE LOCAL Separate from System Local by zone grou~s on direct basis. (No local zones cross state lines.) STATE INTRASTATE MAINLINE Allocate from State Mainline by zone groups on the basis of equivalent passenger miles. STATE INTRASTATE LOCAL Consider Intrastate Local to be equal to Sta te Local.

- 84 足

ACCOUNT. 4230 - FUEL FOR REVE NUE EgUIPMENT

-----e . .

~. _

SYSTEM Develop System total into zone groups by bus groups. Use miles per gallon by bus groups and system cost per gal Ion from special analysis of company records and zone group bus miles by bus groups from special analysis of bus group mileage assignments to zone groups. SYSTEM MAINLINE Separate mainline zone groups from System. SYSTEM LOCAL Separate local zone groups from System. STATE MA INLINE Separate System Mai nline zone groups i nto two categories: l. Zone groups operating primarily intrastate. 2 . Zone groups operating primarily interstate. Separate by category by zone group on the básis of state bus miles adjusting the expense generated for Category 1 by the ratio of the state cost to the system cost per gallon of fuel and for Category 2 by the ratio of the unweighted average state. and out-of-state cost to the system cost per gallon of fuel. STATE LOCAL Separate from System Local by zone groups on direct basis (No local zones cross state lines) adjusting the expense generated by the ratio of the local cost to the system cost per gallon of fuel. STATE INTRASTATE MAINLINE Allocate from State Mainline by zone grou ps on the basis of equivalent passenger miles. STATE I NTRASTATE LOCAL Consider Intrastate Local to be equal to State Local.

- 85

ACCOUNT 4240 - nIL F0R REVENUE srEQUIPMENT _ .. ' r¡> '

SYSTEM

_ .sys'tem total into zone - groups by bus groups , using cost per mile by bus groups from special analysis of company records and zone group bus miles by bus groups from special analysis of bus group mileage assignments to zone groups. SYSTEM MAINLINE

Separate mainline zone groups from System. s YS TE1',1 LOCAL

Separate local zone groups from System. STATE MAINLINE

Separate from System Mainline on the basis of State Mainline bus miles of bus groups by zone grou ps. STATE LOCAL

Separate from System Local by zone groups on direct basis. (No local zones cross state lines.) STATE INTRASTATE MAINLINE

Allocate from State Mainline by zone groups on the basis of equivalent passenger miles. STATE INTRASTATE LOCAL

Consider Intrastate Local to be equal to State Local.

- 86

ACCOUNT 1250 -

PUBCHA~ED

TRANSPCRTATION

SYSTEM Develop System total into uniform cost per mainline bus mile. SYSTEM ¡\iIAINLINE Consider System Mainline to be equal to $ystem. SYSTEM LOCAL Consider none of this account applicable to local operations. STATE MAINLINE Separate from System Mainline on the basis of State Mainline bus miles. STATE LOCAL Not applicable. STATE INTRASTATE MAINLINE Allocate from State Mainline on the basis of equiva lent passenger miles. STATE INTRASTATE LOCAL Not applicable.

- 87

- - - - - -- -- - - - - - - - -- -- -

ACCOUNI .4261.. - ROAD EXPENSE

SYST EM

Develop System total into uniform cost per ma i nline bus mile. SYSTEM MAINLINE

Consider System Mainline to be equal to System.

s YSTE/Vl

LOCAL

Consider non e of this account app licable tO"local operations. STATE MAINLINE

Separate from System Mainline on the basis, of State Ma inline bus miles. STATE LOCAL

Not applicable. STATE INTRASTATE j,f¡AI NLINE

Allocate from State Mainline on the basis of equi valent passenger miles. STATE INTRASTATE LOCAL

Not applicable.

- 88

SYSTEM Develop System total into expense by zone groups by states from special analysis of company operations.

Separate mainline zone groups from System.

Separate local zone groups from System. STATE ¡\¡\AINLINE Separate from System Mainline by zone groups by state. STATE LOCAL Separate from System Local by zone grou p s on direct basis. (No local zones cross state linesc) STATE INThASTATE J.J1AINLINE Separate from State Mainline by zone groups on the basis of Intrastate Mainline passengers. STATE INTRASTATE LOCAL Consider Intrastate Local to be equal to State Local.

- 89 -

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ACCOUNT 4263 - W'AGES OF ¡,'iISCELLANEOUS TRANSPORTATI ON EiV1P LOYEES

SYSTEi/l Develop System total into uniform cost per dollar of escorted tour income included in Account 4396. SYSTEM MAINLINE ._ Consider System Mainline to be equal to System. SYST EM LOCAL Consider none of this account applicable to local operations. STATE

i l.'i AII~ LINE

Allocate from System Mainline on the basis of st ate escorted tour income. STATE LOCAL Not applicable. STATE INTRASTATE NiAINLINE Allocate from State Mainline on the basis of State Intrastate escorted tour income. STATE INTRASTATE LOCAL Not applicable.

- 90

SYSTEM Develop System total into expense applicable to mainline operations and expense applicable to local operations from special analysis of company records. SYSTEM MAI NLINE Developed from special System analysis. SYSTEM LOCAL Developed from special System analysis. STP..TE MA INLINE Separate from System Mainline on the basis of State Ma inline bus miles. STAT¡=: LOCAL Allocate from System Local on th A basis of St ate Local bus miles.. STATE I NTRASTATE MAINLINE Allocate from State Mai nline on the basis of equi valent passenger miles. STATE I NTRASTATE LOCAL Consider Intrastate Local to be equal to State Local.

- 9l

ACCOUNT 4300

STAT ION EXPENSE

-- -

---

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- --

- -- -足

ACCOUNT 4311 - SALAHIES ANO COMMI SS I ONS

SYSTEM Develop System total by stations by sta tes into

four categories:

Tic ket and information clerks.

2. Baggage and express clerks. 3. Travel bureau employees. 4. Ticket off ice clerks, administrative and

custodial employees. SYSTEM MAINLINE Allocate from System by category by stations by

states on the following bases:

l. 2. 3. 4.

Special analysis of company operations. 100% of System expense. 100% of System expense. Difference of System and System Local.

§ySTEM LOCAL Allocate from System by category by stations by

states on the following bases:

l. 2. 3. 4.

Spec ial analysis of company operations. Not applicable to local operations. Not applicable to local operations. Station overheads.

STATE MAINLI NE Separate by category from System Mainline on state basis. STATE LOCAL Separate by category from System Local on state basis. STATE INTRASTATE MAINLINE Allocate from State Mainline by category on the

following bases:

l. 2. 3. 4.

Special analysis of company operations. Passenger miles or busbills. Special analysis of company operations. Intrastate Mainline passengers.

STATE INTRASTATE LOCAL Consider Intrastate Local to be equal to Sta te Local.

- 92 - - - - - - --

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ACCOUNT 4315 - STATION SUPPLIES ANO EXPENSES ACCOUNT 4318 - OTHER EXPENSES ACCOUNl 4319 - REPAIRS 10 STATION BUILDINGS ANO EQUIPMENT SYSTEM Develop Systern total into totals by sta tes by stations.

3YSTEM MAINLINE Difference of Systern and Systern Local.

SYSTEM LOCAL Allocate frorn Systern by sta tes by stations on the basis of station overheads.

STATE MAINLINE Separate from System Mainline on state basis.

STATE LOCAL Separate frorn Systern Local on state basis.

STATE INTRASTATE MAINLINE Allocate frorn State Mainline on the basis of intrastate mainline passengers.

STATE INTRASTATE LOCAL Consider Intrastate Local to be equal to State Local.

- 93 足 -

- - - - - --

- -- -- - - - -- -- - -

ACCOUNT 4331 -

CO}~ISSIONS

PAID

SYSTEM Develop System t~tal into expense applicable to local operations by zone groups and expense applicable to mainline operations. SYSTEM MAINLINE Developed from special System analysis.

s YS TEM LOCAL Developed from special System analysis. STATE MAINLINE Allocate from System Mainline on the basis of applicable State Mainline revenue. STATE LOCAL Separate from System Local by zone groups on dir ect basis. (No local zones cross state lines.) STATE INTRASTATE MAINLINE From special analysis of state operations develrp expense applicable to State Intrastate revenue. STATE INTRASTATE LOCAL Consider Intrastate Local to be equal to Stat e Local.

- 94 足 -

- -

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- _.

ACCOUNT 4332 - 0THliR EXPENSES ALLOWED

~er this account by tO ' ~~unts 4311, 4315, 431 8 ,

stat e s as an overh ead

4319.

Allocate to various operations, i.e., Sys t em

Mainlin e , System Local, etc., on th e basis of Accounts

4311, 4315, 4318 and 4319.

- 95 足

ACCOUNT 4340 - INTERLINE COMMISSIONS PAID AECOONT 4350 - INTERLINE COMMISS IOﾃ全EARNED

Consider these accounts to be applicable only to interstate mainline operations. SYSTH1 MAINLINE Consider System Mainline to be equal to System. SYSTEM LOCAL Not applicable. STATE MAINLINE Allocate from System Mainline on the basis of State Interstate passenger miles. STATE LOCAL Not applicable.

STATE INTRASTATE MAINLINE

Not applicable.

ﾂｧTATF INTRASTATE LOCAL Not applicable.

-96ﾂｭ ---

- - - - -_. _ - -- - -- - - - -ﾂｭ

~CCOUNT

4391 - JOINT

~TATION

FACILITIES DEBIT

This account is applicable only to the State of New

M exic~.

For allocation purposes see Category 1, Account 4396.

-97足

ACCOUNT 4396 - JOINT STATION

FACILITI ~ S

- CREDIT

SYSTEM D€velop system total into three categories:

1. 2. 3..

Joint f acili ty cre.di t by s ta te s by s tations. Ticket float selling expense correction. Western Greyhound share of esc0rted tour. op erating income.

SYSTEM MAINLINE Allocate from System by category on the following bases: l. 2. 3.

Account 4311 by states by stations. Account 3200. Account 4311.

SYSTEM LOCAL Allocate from System by category under System Mainline. ~TATE

th e bas e s outlined

MAINLINE

Allocate from System Mainline by category on the following bases: l. 20 3.

Direct by states.

Account 3200.

Account 4311.

STATE LOCAL Allocate from Syst em Local by category on the bases under State Mainline.

~utlined

STATE I NTRASTATE MAINLINE Al10cate from State Mainline by category on th e fo11 owing bases: l.

2. 3.

Account 4311. Pccount 3200. Account 4311.

STATE INTRASTATE LOCAL Consider Intrastate Local to be equal to State Local.

- 98

ACCOUNT 4400

TRAFFIC ANO ADVERTISING EXPENSE

~-------------

ACCOUNT 4410 - SALARIES ANQ EXPENSES

SYSTEM Develop System total into uniform cost per System passenger mile • . SYSTEM lViAINLI NE Separate from System on the basis of System Mainline passenger miles. SYSTEM LOCAL Separate from System on the basis of System Local passenger miles. STATE M-0I NLI N':: Separate from System Mainline on the basis of State Mainline passenger miles. STATE LOCAL Separate from System Local on the basis of State Local pa ssenger miles. STATE I NTRASTATE

MA INLJ~g

Separate from Stat~ Mainline on the basis of Intrastate Mainline passenger miles. STATE INTRASTATE LOCAL Consider Intrastate Local to be equal to State Local.

- 99 . _-

- -

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ACCOUNT 4430 - TARIFFS ANO SCHEOULES

SYSTEM Oevelop System total into expense applicable to mainline operations and expense applicable to local operations by zone groups from special analysis of company operations. SYSTEM MAINLINE Developed from special System analysis. SYSTEM LOCAL Developed from special System analysis. STATE MAINLINE Separate from System Mainline on the basis of State Mainline passenger miles. STATE LOCAL Separate from System Local by zone groups on direct basis. (No local zones cross state lines.) STATE INTRASTATE MAINLINE Separate from State Mainline on the basis of Intrastate Mainline passenger miles. STATE INTRASTATE LOCAL Consider Intrastate Local to be equal to State Local.

- 100 足

ACCOUNT 4440 - TICKETS ANO BAGGAGE CHECKS SYSTEM Develop System total into expense applicable to mainline operations and expense applicable to local operations by zone groups from special analysis of company operations. SYSTEM MAINLINE Developed from special System analysis. SYSTEM LOCAL Oeveloped from special System analysis. STATE MAINLINE Allocate from System Mainline on the basis of 35% State Mainlinepassengers and 65% State Mainline pa ssenger miles . STATE LOCAL Separate from System Local by zone groups on direct basis. (No local zones cross state lines.) STATE INTRASTATE MAINLINE Allocate from State Mainline on the basis of 35% Intrastate Mainline pas sengers and 65% Intr a state Mainline passenger miles. STATE INTRASTATE LOCAL Consider Intrastate Local to be equal to State Loca 1.

- 101 足

ACCOUNT 4 4 ~) 0 - OTHER -_ . .. _-------- - - - TRAfF - - - -I-C- EXPE - - - NSES --足 SYSTEM Develop System total into two l. 2.

c~tegories:

Mainline operations. Escorted tour operations.

SYSTEM MAINLINE Consider System Mainline to be equal to System. SYSTEM LOCAL Consider none of this account applicable to local operations. STATE MAINLINE o~

the

A110cate Category 2 from System Mainline on basis of state escorted tour operating income in Account 4396.

~he

Allocate Category 1 from System Mainline b2Sis of Accounts 4410, 4430, 4440 and 4470.

STATE LOCAL Not app1icable. STATE INTRASTATE MAINLINE Allocate Category 1 frcmState Mainline on the basis of Accounts 4410, 4430, 4440 and 4470. Allocate Category 2 from State ~ainline on t he basis of State Intrastate escorted tour operat i ng income in Account 4396. STATE INTRASTATE LOCAL Not applicable.

1~ 2

足

Develop System total ioto ex pense applicable to mainline operations and expense applicable to local operations using total mainline passenger miles and one-half local passenger miles.

Developed from special System analysis.

Developed fro m special System analysis .

Separate from System Mainline on the basis of Stat6 Mainlin e passenger miles e

Separate from System Local on the basis of State Local passenger miles.

Separate from State Mainline on the basis of Intrastate Mainline passenger miles.

Consider Intrastate Local to be equal to Sta te Local.

- 10 3 足

~CCQ.lli::lT

4500

INSURANCE AND SAFETY EXFENSE

ACCOUNT 4511 - SALAR IES - CLAI M AGENTS ACCOUNT 4515 - EXPENSES - CLAUlAGEN"fS

Consider these accounts as overheads to Accounts 4531-A and 4531-8. A110cate to various operations, i.e., System Main1ine, System Local, etc., on the basis of Accounts 4531-A and 4531-8.

- 104 -

ACCOUNT 4516 - SALARIES - OTHER (SAFETY ) ACCOUNT 4519 --"""EXPEÑSES-:ÜMRCSAt:ETY}'

Develop System total into expense applicable to mainline operations and expense applicable to local operations from special analysis of company records. ~-.ySTEM

MAI NLINE-

--~~----

Developed from specia1 System analysis.

SY.§J EM LOCAL Developed from special System analysis.

STATE MAINLINE Separate from System Mainline on the basis of State Main line bus miles.

STf..TE LOCAL Allocate from System Local on the basis of Stat e Local bus miles.

STATE INTRASTATE MAINLINE ALlocate from State Mainline on the basis of Account 4220 ..

STATE INTRASTATE LOCAL Consider Intrastate Local to be equal to State Local.

- 105 -

ACCOUNT 4521 - PUBLIC LIABILITY AND PROPERTY DAMAGE - BUSES ACCOUNT 4529 - PUBLIC LIABILITY AND PROPERTY DAMAGE - OTHIR SYSTEM Develop System total into uniform cost per system bus mile.

SYSTEM MAINLINE Separate from System on the basis of System line bus miles.

Main~

SYSTEM LOCAL Separate from System on the basis of System Local bus miles.

STATE MAINLINE Separate from System Mainline on the basis of State Mainline bus miles.

STATE LOCAL Separate from System Local on the basis of State Local bus miles.

STATE INTRASTATE MAINLINE Allocate from State Mainline on the basis of equivalent passenger miles.

STATE INTRASTATE LOCAL Consider Intrastate Local to be equal to State Loca 1.

- 106 -

ACCOUNT 4531- A - PUBLIC LIABILITY

- - - - --

STIF fﾃ全ﾃｺRER

A N D,.l:HOPERJ.L DA.M~Gk

ACCOUNT 4531-8 - PUBLIC LIABlrny AND PROPERTY DAMAGE~-~CONflEGENCI ES SYSTEM Develop System total into cost per bus mile by divisicns using special analysis of total expense by divisions and bus miles operated by divisions.

SYSTEM IVlAINLINE From System, separate expense of divisions that are wholly mainline. From System, allocate expense of divisions that are partly mainlinﾃｩ and partly local using mainline bus miles and cost per mainline bus mile obtained from special study of company operations.

SYSTEM LOCAL -----From System 1 separate expense of divisions that are wholly local. From System, allocate expense of divisions that are partly mainline and partly local using local bus miles and cost per local bus mile obtained from special study of company operations.

,STATE MAINLINE Separate from System Mainline by divisions on the basis of State Mainline bus miles.

STATE LOCAL Separate from System Local by divisions. (No local portions of divisions cross state lines.)

STATE INTRASTATE MAINLINE Allocate from State Mainline on the basis of equivalent passenger miles.

STATE INTRASTATE LOCAL Consider Intrastate Local to be equal to State Loc a l.

- 107 -

ACCOUNT 4541 - WOKKlvlEN ' S COMPENSATION .. INSURANCE ACCOUﾃ選 __ 4546:--WORKj'ﾂ｡lEN r S COv1PENSAT ION-SE LF INSURER SYSTEM Deve10p Systern total into three c.ategories from specia1 ana1ysis of company operations prorating to each category expense not applicable to any of the three categories~

l. Maintenance employees. 2 . Transportation emp10yees by states.

3. Station employees by states. SYSTE!vl MAINLINE Allocate from Sy stem by cate gory on the following bases : 1. Account 4142. 2 . Account 4220 by states. 3. Account 43 11 by states.

SYSTE.Jl LOCAL Allocate fro m Sys tem by category on the bases outlined under System Main l ine. STATE ,.IAINLINE Allocate from System Mainline by categury on the following bases: 1. Account 4142. 2 . By states. 3_ By states.

STATE LOCAL Allocate from System Local on bases outlined un der State ;:Iainline. STATE INTRASTATE r!lAINLIN E Allocate fro m State Ma ! nljne by category on the following base s : l. Account 4142. 2 . Account 4220 . 3. Account 43 11. STATE INTRASTATE LOCAL Consider Intrastate Local to be equal to State Local.

- lCS -

ACCOUNT 4560 - ' BAGGAGE AND EXPHESS LOSS ANO DA!\1AG~

SYS TE M De-v el-op System total il"lto expef\se app.Li-'Ca.bl.~to_.: baggage and e-xpense applicable to express. SYS TEt1 MAINLINE Con si der System Mainline to be equal tD Syster:l. SYS TE "¡ LOCAL

Con s ider none of this account 3~r11cable to local operations. STATE MINLINr= Serar ate baggage expen se from Syster; :'l1 ain1 ille on t he basis of State Main1ine passenger Mi le s . Separate express expense fro: ;l System ·"1ain1.ine on the basis of State t1ainline express revenue. STATE LOCAL Not applicable. S IATE I NTRASTbTE MAJNLINE

Se parate baggage expense from State ~ ai~line on the ba s is oí Intrastate .~1ainline passenger c;n l es. Allocate express expense fro m Stat e ~a inl i ne on the basis of Intrastate Mainline express revenue. ~3 TATE

INTRA~TATE

LOCAL

Not applicab1e.

- J 09 -

ACCOUNT 4270 -

FIB-J~

ANO n -rF.ELINSU?.ANCE

SYSTEM -Develop System tot~l into expense applicable to mainline ope rations and expense applicable to local operation s.

SYSTH\ MAINLINE Developed f r om special System analysis.

SYSTEM bOCAL Developed from speci a l System analysis.

STATE MA I NLINE Allocate from System Ma inline on the basis of State Ma inline revenue equipment rate base.

STATE LOCAL Allocate from System Local on the basis of State Local r evenue e quipment rate base.

STATE I NTRASTATE MAINLINE Allocate from State Ma inline on the basis of Intrastate Mainline revenue equipment rate base.

STATE INTRASTATE LOCAL Consider Intrastate Local to be equal to State Local.

- 11 0 -

AgCOUNT l.,LĂBO - OTEER nJSURA,NC~

-SYSTEiv --- l Develop System total into bus mile.

unifor~

cost per system

Seoarate from System on the basis of mainline bus miles. . SYSTEi'Jl LOCAL

Separate from System on the basis of local bus mi les. STATE MAINL INE

Sepa rate from System mainline on th e basis of State Ma inline bus miles.

Separate from System Local on the basis of State Loca l bus miles. ST,ATE

INTRA~TATE

i'vlAINLINE

Allocate from State Ma inline on the basis of equivalent passenger miles.

Consider Intrastate Local to be equal to State Local.

- 111

ACCOUNT 4600 AOMINISTRATIVE ANO GENERAL EXPENSE

Accom,rr 4600 - ADLH NISTRATIVE AND GENE HAL EXPE:ยกSE

Consider Accounts in the 4600 grou p as overheads to operating and maintenance expenses. Allocate to various operations, i .e., System Ma inline, Sy stem Local, etc., on the basis of Acc ounts 4100 to 4500, inclusive.

- 112 -

ACCOUNT 5000 DE~CIATION

--~

._ -

EXPENSE

ACCOUNT 1201 - LAND ANO LANO RIGHTS ACCOUNT 1211 - STRUCTURES ACCOUNT 5011 - DE PRECIATION 0F STRUCTURES ACCOUNT 1 2 i l : IÑIPRBVEiViENTS TO LEAS EHc5ID-PRO? El-1TY ACCOUÑT5071 - OE PRJ::CIATI ON ON I ivlPROVEMENTS TO -LE AS EHOLO PRO?ERTY SYSTEM

Develop System total into t wo categories: l. 2.

Stations by states. System garages.

SYSTEfvi ¡,,¡AINLINE

A110cate from System by category on the fo110wing bases; l. 2.

Oifference of System and System Local. Accounts 4140 and 4150.

SYSTHI LOCAL

Al10cate from System by category on t h e fol10 wing bases: l. 2.

Station ov arheads by states by st a tions. Accounts 4140 and 4150.

STATE i:J\AINLINE

Sep arate Category 1 f rom System Mainline on state basis. Al10cate Category 2 from System Ma inline on the basis of Acc ou nts 4140 and 4150. STATE LOCAL

Se parate Category 1 from System Local on state basis. Allocate Category 2 from System Local on the basis of Accounts 4140 and 4150. STATE I NTRASTATE ¡,'í AI!ibINE

Al10cate from State Ma in1ine by category on the following bases: l.

lntrasta t e Ma inline Passengers. Accounts 4140 and 4150.

STATE INTRASTATE LOCAL

Consider Intrasta t e Local to be equal to State Local.

- J.J.3 -

ACCOUNT 1221 - REVENUE E ยบ~~PME NT - DEPHECIATION OF REVE NUE EgUI PMEr',JT

ACCOU!'JT2.Q~l

SYSTEM Develop System total into zone groups by bus groups from special analysis of amounts per bus for each bus group .

SYSTEivl iVlAINLINE Se parate mainline zone groups from System.

s YS TEivi

LO<;::AL Separate local zone grou p s from System.

STATE .MAINLINE Separate from System Mainline on the basis of Mainline bus miles of bus groups by zone grou p s from special analysis of bus group mileage assignments to zone groups.

STATE LOCAL Separate from System Local by zone groups on direct basis. (No local zones cross state lines.)

STATE INTRASTATE MAINLINE Allocate from State Mainline by zone group s on the basis of equivalent passenger miles.

STATE INTRASTATE LOCAL Consider Intrastate Local to be equal to State Local.

- 114 -

ACCOUNT 1231 - SERVICE CARS ANO EQUIPMENT ACCOUNT 5031 - OEPRECIATION OF SERVICĂ&#x2030;---CARS AND EQUIPMENT Consider these accounts as overheads to operating and maintenance expenses. Allocate to various operations, i.e., System Mainline, System Local, etc., on the basis of Accounts 4 100 to 4500, inclusive.

- 115 -

ACCOUNT 1241 - SHOP ANO GARAGE EQUIPMENT ACCOUNT 5041 - DEPRECIATION OF SHOP"AN'E)"'

GARAGE EQUIP MENT

Consider these accounts as overheads to Accounts 4140 and 4150. Alloca t e to various operations, i.e., System Mainli ne, System Local, etc., on the basis of Accounts 4140 and 4150.

- 116 ..

·ACCOUNT 125 1 - FURN ITUEE ANO OFF ICE EQUIPMENT At-tQtffJT56s-r-:I5EPREClATION OFFÜ'RÑITURE ANO"

OFFICE EQUIPMENT

Consider these accounts as overheads to operation and maintenance expenses. Allocate to various operations s i.e., System Main line, System Local, etc., on the basis of Accounts 4100 t o 4500, inclusive.

- 117 -

ACCOUNT 1262 - 3IGNS ACCOUNT $062 - DEPRECI ATI ON OF SI GNS SYSTEM

Develop System total into expense by st a tes from sp ecial analysis of company records. SYSTH,¡ MA INLINE

Allocate from System by sta tes on the basis of Account 4311.

s YS TE!';

LOCAL

Allocate from System by states on the basis of Account 4311. STATE pflA INLI NE

Separate fro m System Main1in e on state basis. STATE LOCAL

Separate from System Local on state basis. STATE I NTRASTATE ".íA I NLINE

A110cate from State Main1in e on th e basis of Account 4311. STATE I NTRASTATE LOCAL

Consider Intrastate Local to be equa1 to State Local.

- lHl -

ACCOUNT 1269 - OTHER E0üIPMENT ACCOUNT 5069 - DEPRECIATlO[\¡ OF OTHER EQUIPt1EÑT SYSTE M D-evelop System total i nto. ,expense by states from special analysis of company r~rds. SYSTEM MAlNLINE Allocate from System by sta tes on the basis of Acc"unt 4410.

s YS TEM LOCAL Allocate from System by states on the basis of Account 4410. STATE MA I NLI NE Separate from System Ma inline on state basis. STATE LOCAL Separate from System Local on state basis. STATE I NTRASTATE MAI NLI NE Allocate from State Main1ine on the basis of Account 4410. STATE I NTRASTATE LOCAL Consider Intrastate Local to be equal to State Local.

- 11' -

Consider Account 5091 as an ad justment to Account 5021 . Al10cate to v arious operations, i.e., System Ma inline, System Local, etc., on the basis of Acco unt 5021 .

. .: . . .

- 120 -

ACCOUNT 5200

---------

OPERATING TAXES & LICENS~

ACCOUN T 5:211 - S T.1 T2 , CI TY TAX -. FUEL A. ccom路JT 5212 - FEDERAL EXCI SE TAX - FOOL AND OIL SYSTElii Develop System total in to zone grou ps by bus groups . Use applicable taxes per gallon and gallons developed for Accounts 4230 and 4240. SYSTEH

~t.'\ I N LI NS

Separate mainline zone groups from System . SYSTEH LOCL\ L s epara te local zone groups from System. STAT"S HAI NLINE Separate froID System Mainline using State Mainline bus mi les of bus groups by zone groups. 搂TATE LOCAL Separate from System Local by zone groups on direct basis. (No local zones cross s ta te lines.)

Allocate from State Mainline by zone groups on the basis of e quivalent passenger miles . S TI~

INTRt, ST ~

TE LOCAL

Consider Intrastate Local to be equal to State Local.

- 121 -

- -- - -- - - - - - -

SYSTEH Develop System total into two categories:

SYST~f'i

Registration and weight fees by states by zona groups fr om special analysis of company re c ords.

California gross r eceipts tax from special analysis of company records .

hhINLINE -

bases:

Sep <=lr.:lte froro system by category

'b n

,the, following

Separate mainJine zone groups by st a tes from System.

Applicable system main l ine revenue-, as a percent of applicable system revenue.

SYSTEivl LOCAL

bases:

Separate from system by cat e gory on thefollowing l.

Sepa rate local zone groups by states from System.

Difference of Sys t em and system mainline.

STATE iviAINLINS

Se pa rate Category 1 from System Mai nline by zone grou p s on sta te basis. If applicable, separ at e Cate gory 2 from System Mainline on sta t e b a sis . STATE LOCAL

Separate from System Local on bases outlined under Sta te Mai nline. §TATE INTRASTAT E fI:íA INLINE

Allocate Category 1 from Sta t e Mainline by zona groups on the basis of equivalent passengér miles. Separate Category 2 f rom State Mainline on the basis of a pp lica b le intrastate revenue as a percent of applicable t otal state revenue. STATE

I~ASTATE

LOCAL

Consi d er Intrastate Lecal to be e qual to state LOC 3J. - 1 22 -

ACCOUNT 5231 - REAL ESTATE TAXES

Develop System to!al into three categories: l. 2. 3.

Stations by states. System garages. General office building.

SYSTEf.¡í MAINLINE bases:

Allocate from System by category on the following l. 2. 3.

Difference of System and System Local. Accounts 4140 and 4150. Account 4600.

SYSTEM LOCAL bases:

Allocate from system by category on the following l. 2. 3.

Station overheads by states by stations. Accounts 4140 and 4150. Account 4600.

STATE MAINLINE Separate Category 1 from System Mainline on state · basis.

Allocate Categories 2 and 3 from System Mainline on bases outlined under System Mainline. STATE LOCAL Allocate from System Local on bases outlined under State Mainline. ~T ATE

INTRASTATE MAINLINE

Al locate frem State Mainline by category on the following bases: l. 2. 3.

Intrastate hlainline passen gers. Accounts 4140 and 4150. Account 4600.

STATE INTRASTATE LOCAL Consider Intrastate Local to be equal to St a te Local.

- 123 - - - ----

- - - - -- --

- - - - -- - - - -- - - -

ACCOUNT 5300

OPERATING REl'-JTS -NET

ACCOTJNT ~lO__-_EQ1LtPM:ENT RENTS._.:.J2E.:.B1I ACCOUNT 5350 - EQUIPMENT RENTS - CHEDIT

SYSTEM Develop System total into net credit for following items based on excess mainline bus miles operated by company: l. 2. 3. 4.

Revenue equipment depreciation expense. Heturn on revenue equipment rate base. Revenue equipment license fees. Garage overheads.

SYSTEM WIAINLINE Consider System Mainline to be equa1 to System.

Sy§:;rEM LOCAL Consider non e of this account applicable to local operations.

STATE MAINLINE Allocate from System Mainline by category on the following bases. J• •

2. 3. 4.

Account 5021. Revenue equipment rate base. Account 5220. Garage overheads.

STATE LOCAL Not applicable.

STATE INTRASTATE MAINLINE Allocate from State Mainline on bases outlined under State Mainline.

STATE INTRASTATE LOCAL Not applicable.

- 129

ACCOUNT 5321

OTHER OPERATING RENTAL~揃 Ds.BIJ 足 SHOP AND GARAGE ACCOUNT 5371 - SUBLEASE RENTAL INCOME 足 SHOP AND GARAGE Con s ider these accounts as overheads to shop and garage depreciation expense. Allocate to various operations, i.e., System Mainline, System Local, etc., on the basis of shop and garage depreciation expense in Account 5011.

- 130 足 - --

-- -

- -

ACCOUNT _5 322 - OTl-lER OPEHATING RENTAL - DEB I T _. STATIGÑ - - - - -- ACCOUNT 5340 - JOINT FACILITY RENTS - DEBIT ACCOUNT 5372 .• SUi3IEASE RElUArINCO-¡\E - ST¡~TION AQé6ÜÑY-53~ JOINT FACl1lTY REÑIS - CRE DIT -~SYSTEM -----

Develop System total into three categories: l. 2. 3.

Stations by states. System garages. System general office.

SYSTEM MAINLINE

Allocate bases: l. 2. 3.

from System by category on the following Difference of System and System Local. Accounts 4140 and 4150. Account 4600.

SYSTEM LOCAL

Allocate bases: l. 2. 3.

from System by category on the following Station overheads by states by stations. Accounts 4140 and 4150. Accounts 4600.

STATE MAINLI.NE

Separate Category 1 from System Mainline on state basis. Allocate Categories 2 and 3 from System Mainline on the following bases: 2. Accounts 4140 and 4150. 3. Account 4600. STATE LOCAL -------

Separate Category 1 from System Local on state basis. Allocate Categories 2 and 3 from System Local on the following bases: 2~ Accounts 4140 and 4150. 3. Account 4600. STATE INTRASTATE iViAINLINE

Allocate from State Mainline by category on the following bases: l. Intrastate Mainline passengers. 2. Accounts 4140 and 4150. 3. Account 4600. STATE INIB8STATE LOC6b

Consider Intrastate Local to be e qual to State Local. - 131

6~COUNT

5323 - OTHER OPERATING RENT - DEBIT ﾂｭ AUTOS Aﾃ船 SERVICE CARS-~

Consider this account as an overhead to operating and rnaintenance expenses. Allocate to various operations, i.e., Systern Mainline, Systern Local, etc., on the basis of Accounts 4100 to 4500, inclusive.

- 132 ﾂｭ

ACCOUNT ::)329 - OTHER OPE RAT I NG RENT - DEBIT 足 OTHg5.JQENERAL O F FI~BUI LD I NG)

Con sid er this account as an overhead to operating and ma i nten a nce expense. Allocate to various operations, i.e., System Ma inline, System Local, etc.~ on the basis of Accounts 4100 to 4500, inclusive.

- 133 足 ---

- - - - - -- - -- -- - - - -- - - --

ACCOUNT 5360 - RENT FROM OIJVNED LAND AND STRUCTliR ES SYSTEM

Develop

System total into three

ca~egor i es:

l. Stations by states. 2. System garages. 3. General Office. SYSTEM MAINLINE Allocate from System by category on the

following bases:

l. Difference of System and System Local. 2. System Mainline shop and garage depreciation in Account 5011. 3. Account 4600. SYSTEM LOCAL Allocate from System by category on the

following bases:

1. System Local station depreciation in Account 5011 by states by stations. 2. System Local shop and garage depreci ation in Account 5011. 3. Account 4600. STATE MAI NLINE Separate Category 1 from System Mainline on state basis. Allocate Category 2 from System Mainline on the basis of State Mainline shop and garage depreﾂｭ c i ation in Account 5011 and Category 3 on Account 4600. STATE LOCAL Separate Category 1 from System Local on state basis. Allocate Category 2 from System Local on the basis of State Local shop and garage depreciation in Accouht 5011 and Category 3 on Account 4600. STATE INTRASTATE Mﾃ！NLINE Allocate Categories 1 and 2 from State Ma in1ine on the basis oﾃｭ applicable depreciation in Ac count 5011 and Category 3 on Account 4600. STATE INTRASTATE LOCAL Consider Intrastate Local to be equal to State Local. - 134 ﾂｭ

ACCOUNT•..l..190

MATERIAL ANO SVI:.P.1.IES

ACCOUNT 1100 - MAT ERIAL ,L\ND SUPPLIES

-'--~.~.''''-=

Consider this account as an overhead to Accoun t 4140. Allocate to various operations, i.e., System Ma inline, System Local, etc., on the basis of Account 4140.

- 135 足

ACCOUNT 1200

INVESTMENT

From a special analys is of company records, distribute Account 1291 to the various ot her app1icab1e 1200 accounts and separate or a110cate accordingly.

* * * * * * * * * ** For al1 other 1200 accounts see Account 5000.

- 136 足

GLOSSARY

AC"Lt¿t.L USE: The exclusive use of a service or function by a given type oí traííic. ALLOCATION: The distribution oí a quantity to the various types of traffic or functions to which it pertains through the use oí statistics adjusted for rela t ive use. BUS B1LL: A waybill or form used for identification of an express shipment. DIRECT: Not requiring allocation by reason of being used exclusively by a particular type of traffic. DIVISION: (1) One of the four affiliated operations of The Greyhound Corporation. (See map - Page 5.) (2) An operational area of Western Greyhound Lines the lirnits of which are determined by the extent of jurisdiction held by its designated supervisors. (See map - Page 13.) DRIVER TRIP: The whole or part of a schedu1ed bus trip completed by a driver during a single day's assignment. DUPLICATE STATE PASSENGER COUNT: Recorded passengers served by Western Greyhound are maintained by system total and by sta t e totals.

The

system total for a given period reflects a11 passengers - 137

served on each zone of operation.

The sta te tota1s

reflect all passengers served on each zone of operation within the state.

The addition of al1 sta te

totals for a given period exceeds the system total due to the fact that certain zones provide service through two or more states.

EQUIVALENT BUS MILES: The bus miles of a zone group assigned to a given type of traffic based on the relative bus miles per passenger mile determined from the length of ride of the traffic compared to the same factors for all traffic of the zone group.

EQUIVALENT PASSENGER MILES: The zone group passenger miles of a given type of traffic adjusted for the relative average load f actor produced by the average length of ride of that traffic compared to the same factors for total zone traffic.

EXCESS BUS MILES; The difference between the bus miles operated by buses owned by

~J estern

Greyhound Lines over the

routes of other Greyhound Corporation divisions and non-affiliated connecting carriers and the bus miles operated on the routes of liJestern by buses owned by other Greyhound divisions.

(Only buses owned by

divisions of The Greyhound Corporation are operated over V.:estern' s routes.)

- 138 足

EXPRESS:

Packages and bundles of limited size (other than articles checked by passengers) transported by ~ estern

Greyhound under express-tariff rates.

EXPRESS SERVICE: Non-stop or limited-stop bus operations that do not serve all certificated points along a given route.

FIXED COSTS: Costs that do not ordinarily vary with small f1uctuations in volume of operation; costs associated with the dedication of a bus to provide service.

GENERAL SERVICE: Bus operations serving a11 certificated points a10ng a given route.

INTERLINE PASSENGER: One whose trip involves travel over the lines of other Greyhound divisions or connecting carriers in addition to the lines of Wes t ern Greyhound.

INTERSTATE: Between two or more states or provinces.

l NTRASTATE: \:ithin a single state or province.

LOAD FACTOR: The number of passenger miles as a percent of the number of seat miles. ~1:

Suburban or commute operations; the service ar ea of which is

g~nerally

within a metropo l itan are a .

- 139 足

--._ -足

MAINLI NE:

.....

AII regular operations other than those classified as local. PASSENGER MILES: The product of a total number of passengers and their average length of ride. RELATIVE USE: The measurab1e use made of a service or function by a given type of traffie where the serviee or function is used in common by more than one type of traffic.

REVENyE EQUIPMENT: Motor coaches and their appurtenances such as fare co11ection boxes. SJ;;AT MILES: The product of the number of bus miles operated and the weighted average number of seats per bus. SEPARAT ION : (1) The end product of all separation and allocation pr ocedures. (2 )

Th e distribution of a quantity to the various types of t raffic or functions to which it pertains throu gh th e use of unadjusted statistics.

SYSTEM: The operation of Western Greyhound Lines eonsid er ed in its entirety i neluding t h e whole geographica l scope of

tts operatio ns.

TICKET FLOAT:

The difference between the value of all of the tickets s贸ld during a specific period and the value of all the tickets lifted during the same periodo

TICKET LIFT: The tickets for a given period honored by the company for transportation.

TRAFFIC: (1) Passengers. (2) Passenger miles.

TRANSIT: A type of motor coach which is designed specifica1ly

for use in local or suburban operations.

TRANSFER PASSENGER: A passenger using more than one zone of

~ estern

Greyhound's operation in order to complete a trip. TUR~BACK

BUS TRIP:

A bus trip which is turned back at a point intermediate to the regular

zone termini; one which augments through

schedules in areas or peak traffic.

VARIABLE COSTS: Costs that ordinarily vary with f1uctuations in volume of operations or costs associated with the movement of a bus in service.

O O

- 141 颅