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

A. POE

CALIFORNIA FUBLIC UTILITIES C ON~ ISSI O N TRANSPORTATION DIVISION ENGINEERING ECONOMICS BRANCH PASSENGER SECTION

* * * PROPOSED

SEPARATION AND ALLOCATION PROCEDURES

.EQB

WESTERN GREYHOUND LINES (A DIVISION OF THE GREYHOUND CORP O RATIO~)

* * * * *

San Francisco, California

April 19, 1961

TABLE OF CONTENTS

Paqe

Foreword. Section I - General Discussion Account 3200 - Passenger Revenue . Account 3210 - Special Bus Revenue (Ch~rter) Account 3400 - Express Revenue • Bus Mile Expenses . . . . . Traffic Characteristics Operating Zones and Zone Grouping Motor Coaches and Motor Coach Grouping. Equivalent Passenger Mile Allocation Method Account 4143 - Revenue Equipment - Accident Repair. Account 4151 - Servicing Revenue Equipment-Lubrication. Account 4152 - Servicing Revenue Equipment-Washing

and Cleaning . Account 4211 - Supervision of Transportation Account 4220 - Drivers' Wages . Account 4230 - Fuel for Revenue Equipment Account 4262 - Bridge, Tunnel & Ferry Tolls Account 4300 - Station Expenses Account 4311 - Station Salaries Account 4331 - Commissions Paid Account 4340 - Interline Commissions Paid Account 4350 - Interline Commissions Earned Station Overheads. . . . . . . . . . . . . . . . Account 4410 - Salaries and Expenses, Traffic Solicitation Account 4440 - Tickets and Baggage Checks Account 4470 - Advertising Account 4531 - Public Liability and Property Damage Self Insurer. . . . Account 4600 - Administrative and General Expense Investment, Reserve and Depreciation, Expense,

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

**********

TABLE OF CONTENTS Section II - Procedures Paqe Account Account Account Account Account Account Account Account Account Account Account Account

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

- Operating Equipment

Revenues • 66 · . . . · · . . 75

Maintenance ·and Garage Expense Transportation Expense 83

· .. .. · . Station Expense . 92 · · · · ·Expense. Traffic and Advertising 99

104

Insurance and Safety Expense · · · 112.

Administrative and General Expense 113

Depreciation Expense · 121 Operating Taxes & Licenses 129 Operating Rents Net. 135 Material and Supplies. 113 & 136 Investment . . .

· .. ·

· · ·

********** 137

Glossary •

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

. .

•

********** List of Tables I

II III IV V

VI VII VIII

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

FOREWORD 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 Commerce Commission.

Two

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

The

former is 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 and interstate traffic.

Similarly, the major

portion of the company's expenses are incurred in providing 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 5.

* Arizona, California, Idaho, Nevada, New Mexico, Montana, Oregon, Texas, U~h,Washington 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 principles 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.

The

procedures outlined represent, in the judgment of those

* United States Supreme Court, Smith V. Illinois, Bell Telephone Co., 282 U.S. 133 (1930).

- 2 足

preparing the manual, as near an ideal allocation as present data and methods permit.

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 hearings 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 I 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 II

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.

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Effective 1, 196 1 the following c hanges occurred: 1. Atlantic Greyhouno Lines ann Southeastern Greyhound Lines were establisheo as So uthern Gr eyhound Lines . Richmon d Greyhound Lines became a part of Easte n Greyhound Lines . (This map is not drawn to scale.) LITHO. IN U . S. A .

SECTION I

ACCOUNT 3200 - PASSENGER REVENUE

The total system passenger revenue of Western Grey足 hound Lines is represented by the value of all tickets honored throughout the system; it is determined for any specific period of time by summarizing all of the ticket sales applicable to transportation provided during that period. 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 all 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 is 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 increment in the variation of the average length of ride.

The total mainline

passenger revenue for the various states is determined for any specified period by developing the zone revenue earned in a state for every zone operating in that state for the period. 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 miles and the number of intermediate passengers by an average distance of travel determined by the periodic checks; these checks are also used to determine the percentage distribution by states of the total passenger miles traveled in interstate zones and, similarly, the state intrastate passenger miles in each zone. For the various local or suburban operations, periodic testsof the average fare per passenger 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.

- 7 足

li.CCOUNT 3210 - SPECIAL BUS REVENUE (CH ARTER)

Special bus revenue for a given period, applicable to individual state and intrastate operations, is developed from regular special studies.

These special studies involve

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

(4s 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 stdte charter trips is developed and becomes intrastate char ter revenue.

A further analysis is made to determine what

portion of the revenue earned from interstate 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 obtain percentage factors to apply to recorded revenue for state total revenue and state intrastate revenue.

For va

lidity, current factors are compared to factors used for previous periods.

Bus mile, passenger and passenger mile

statistics pertaining to special bus operct tions 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. 000 - 8

ACCOUNT 3400 - EXPRESS REVENUE

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

The charges shown

on bus bills 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 va rious states in which Western Greyhound Lines operates is based on percentages which are determined by periodic checks of all bus bills handled throughout the system.

The express revenue

analysis made for the test period includes a summary 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 sum of the intrastate and allocated interstate revenues.

Using the totals thus ob足

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

test periods even when these periods varied considerably 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.

Approximately 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 allocation 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 applicable 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 states even though the operational routes in the case of mainline operations may cross several state borders.

Since all local

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

The main allocation problem arises when expenses

pertaining to mainline operations must be allocated to the intrastate and interstate traffic that is handled in common by those operations within or into a given state. (From a practical standpoint, this same problem does not exist on local operations due to the fact that these operations are in excess of 99 percent intrastate and,therefore 9 are con sidered 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 9 research in the matter of relative use of

bus miles by intrastate and interstate traffic reveals very definite differences in load fact or characteristics.

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 £e ride of inter state mainline passengers is about three times as long as the average 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 9 as well as differences in bus mile costs resulting from assign ~ent

of different types of motor coaches to the various serv

ices, follO'..vs . The operation of \vestern Greyhound Lines is divided into units known as divisions. (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 company1s smallest unit of operation is

the bus trip.

The next largest unit is the zone, which is a

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

For example,

all of the express 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 some 160 operating zones 2nd a:1.' e develo :)ed or discussed elsewhere in the report.

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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facilitate 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: 1. 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 grou;)s to facilitate alloc a tion procedures.

The

follo lting cri teria were used to establish !TIotor coach groups: 1. 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 groups, no particular criterion was given

~referential

a 11 were considered for overa 11 effect.

weight

bu~ rathe~

A compl ete listing of

zones and zone grou9s and motor coaches and motor coach groups is set forth on Pages 23-29. Once established 9 the zone groups and bus groups provide a ready means of determining, for a particular period, the bus miles operated by the several bus groups over the various zone operations contained in the zone groups.

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

trip report at the end of each of his runs. indirectly,

Directly or

this report contains, among other things, the

bus operated, the bus miles operated and the origin and des tination of the driver's trip.

From this information, the

bus miles by bus grou p by zone grou p by state may be deter mined.

It would be impractical to analyze all of the drivers'

trips for say a year period and, therefore, seme controlled sampling procedure must be used.

For the year ended

September 30, 1960, samples were taken for the month of November 1959 and September 1960.

The complete sample to

taled about 125,000 driver trips which is about 12 percent of the total for the year.

Using data processing procedures,

the sample was reduced to a percentage spread of bus miles by bus groups for each zone group for both system and California operations. Pa ~ e

17.

The

r~sult

is shown in Column 7 of Table I,

To explain further, Column 7 indicates that 1.5

percent of the system 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 lower half of the same column indicates

that of the bus miles operated in California 2.0 percent were operated by Bus Group 1, 17.1 percent by Bus Group 2 , etc. Once the relationship of the bus miles operated by the various bus groups in Zone Group 1 has been established, the average per mile cost for a particular account is deter mined.

This is done by relating the actual cost per bus mile

for the year to the percentage spread by bus type.

As an

example, this process is shown in Table I for Accounts 4141 and 4142, Equipment Maintenance Expense.

As developed in

Column 8, the average maintenance expense for all bus miles operated in Zone Group 1 is 3.60¢. Similarly, the bus miles -15

operated in California average 3.64蔵.

Data processing pro足

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

The average system and California bus mile costs

are then a 0plied to the .actual zone group bus miles for the year as shown in Table II, Page 18.

This calculation pro足

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

Because the bus mile distribution

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

The distributed California

expense 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 9 076 9 987 as recorded on the company's ledger and stands as the

~aintenance

expense for operating

zone groups within the State of California; the remaining step in the procedure is to allocate the California expense to the intrastate and interstate traffic of each zone group.

this point, it becomes necessary to account for the previously discussed differences in traffic characteristics.

This is

done by developing the equivalent passenger mile percents shown in Column 9 of Table II.

The following discussion of

the method of developing these equivalent passenger mile percentages pertain to mainline operations only, since the California local zone groups are considered to be 100 percent intrastate. From zone statistics for the year ended September 3q 1960, the bus miles per 1,000 passenger miles and the average

-16足

TABLE I ACCOUNTS 4141 & 4142 - ivIAINTENANCE OF EQUIPiviENT

SYSTEM Al~D CALIFORNIA AV~RAGE COST PBR BUS MILE

ZONE GROUP 1 - YEAR ENDED SEPTEMBER 30, 1960

:A/C 4141, 42: :Naintenance . :Expense Per Bu.s ~ Bus Nile :Nov. 1959: :Group:Year E;nded Sample Niles : No. : 9-30-60 -p (3) (2) , .1. )

3ystem

--::;-"" oJ.

2 3 4 5 6 7 8 9 10 11

4.42~

4.73 4.16 3.16 2.72 3,,80 2.76 2.10 4.92 3.84 0.56

Total System California 1 h.42~ 2 4.73 4.16 3

5 6 7 8 9 10 11 12

3.16 2.72 3.80 2.76 2.10 4092 3,,84 0.56

Total California

:joTe ighted :Average . :Nov.1959:Mtce.Exp.: :Sep.1960:For Zone :1ATeighted: Grou (8 ) 7)

:Sep. 1960: Sample Niles )

6,517 4,910 9,744

1.8% 1.4 2.8

11,405 270,470 8,306

102% 28.2 009

2,531

0~7

0.8

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

209 8.6 17.5 22.0 42.3

7,432 66 58,214 75,983 102,900 13,290 313,126 98,388

6.1 7.9 10.7 1.4 32.5 10;3

149~185

1.5% Summary 14.8 of the Line 109 By Line 0.8 Products of 4.5 8.3 Columns 14.1 (2) & (7) 11.7 37.2 ~

352,941

100.0%

959,580

100 e O%

5,160 3,492 7,215

2.2% 1.5 301

206,691 352

10~714

1.7% 32.7 0.1

2,531

1.1

7,401

1.2

7,418 20,535 43,535 47,513 92,648

302 8.9 18.9 20.7 40.4

45,796 52,986 43,453 7,571 193,973 .£1,055

7.3 8.4 6. 9 1,2 30.8 9.7

--hl

230,047

100.0%

629,992

100.0%

- 17

100.0%

3.60i

2.0% 17.1 Summary 1.6 of the Line 1.2 By Line 5.3 Products 8.7 of 12.9 Columns 11.0 (2) & (7) 35.3

3.64t

ACOOI '\TS

4 141

S YSTE M -

AND

41 42 -

MA I NT ENAN CE O F EQU I PMEN T

Y E AR E NDED S E PT EMB E R 30, 1960 CA L I FO RI\: I A - CA L I FO ~ N I A INTRASTAT E

C AL i f OR NI A SYS TEM

C ALif ORN IA

WUGH T E O

I N T RAS TATE

WE IG HTE D

Zur, E

A VE RA GE MAINTENANCE Exp , N SE F OR

Bus MILes OPER A TED YEA« E NDEO

G ROUP

ZO I .( GROU P

SEP

.30 ,196 0

D I S T RIBUTED MAIN Te NANCE E XPENSE

AV L ;, AG E MA I NTENA I'<CE EXP[ ;" S L FUR

Bus M IL E S

ZONE G ROUP

S EP

A D~US T T o

OP eRA TE D YeAH

E N DE D

.30 ,1 960

D IS TR I OU TE D MA IN TE N AN CE E XPENS E

L EDGE R

(7 ) 1. 0261 2*

Co L. X

CALIF O RNIA INT RASTAT E EQUiV ALENT PAS SE NGER MI L E PE RC E N T

ALL OC A TED MAI NTEN ANCE EX PENS E

( 1)

i-'

~ ~

10 11 12 13 14 15 16

-< n

(::: )

(3 )

3 .60t 2 .d3 3·31 4 .41 3.61 3.43 3 ·2 1 3.1 5 3 .8 1 3 . ~7 2. 3 3 .6 1 3 . 47 4.12 3 . 60 2 .34 3 . 57 5 . 91

10 ,300 , 763 3 ' 0 9 , 502 4 , 5, 17~ 1, 596 , 6) 16 ,4;' )i , 034 3, W) , 07\.. 11, 231, 860 2 ,171, 277 7, 40J , 261 2 , 4) 1, 049 2 , 633 , 5 14 6 , 4 15, 15 1 7, oC) ,61 8 2 1, 04 1, 468 d , 511, 419 730 , 862 4 , 254 , 5'/0 :z. ~~2 , 14" 122 , 274 , 435

1, 2~2 , 034

TOT AL MA I NL I NE

('+)

2~ , 587 2 , 0)4 866 , 908 306 ,4 11 20 , ~ 15 1,

29 ,28

3 t

$4,42 ,))7

:>:> ..

'"on °on_ °-< z.. "V

1 5;.: )3 54 55 56

3 ·7 # 3 . 06 3 .86 4 . 62 4. 29 3.46 2 .79 3 . ~9 3. 3 3 . 93

1 ~ , 5 11 72 , 038 1, 6 16, 427

3 89 ,04~ 94 , 50 16 1, 368 70 ,41 4 594- , 17 1 107, 910 360 , 543 68, 397 282 , 2~ 83 , 9 74 , 528

46 , 694 '- , 003

2~ , 02 5

(6)

(J)

3 .64t 2 . 83 3. '22

6 , 96;1 , 642

3,339 , ~2

2 54, 42~

. '" I

-'"- '"'" <D

T O T AL

SYSTeM

m _ O Z

135 ,885 ,444

TO L EDGER :

26 1, 000

~ .1%

4 . ~7

3. 1

2 ,376 , 2 773,240 16 ,459 , 034

2 . 49 3 · 50 3 .41 2 .87 3 . 61 3 . :23 4 .1 4 3 . 60

324 , 3 15 3,249, 300 2 ,4 13 , 380 1, tf39 , 'f70 6 ,415 ,1 51 ~ ' 70 9 , ~27 , 620 , 77 0 , 5 11,41 9

8,075 11 3 ,7 26 82 , 290 48 , 502 231 , g8~ 11 9, 1 274,1 04 306 ,4 11

8, 300 116 ,7 00 84 ,4D0 49,800 237 , 600 123 , 000 28 1, 300 3 14, 400

0. 9 22 . 9 9 1. '2 67 .3

3 . 58 4 . Q7

3 ,825,548

136 , 955

14D, 500

27 .3 87 .4

~ , 302 1 ~

7 1, 999 ,

3 .86 4. 62 4 . 29 3 . 46 '",: .79 3 . ~9 3. 3 3 . 91

$4. 94-7 , 728

84 .1 34 , 200

($ 5,076 . 'f871 ~ (It'+ . 947 .728)

= 1. 026 12

9~ , 0 0 0

7 , 500 34, 700 609 , 700

$2 $

$5, 076 , 987

TO T AL LEDG E R *FAC TO R T O AD~uS T

74 , 67~

(';1)

';14 , 50 76, 535 33 ,791 594, 171

, ~~6 : B1

l8 , 025

726, 038 1, 616 ,427 74 , 67~ 111, 0 1 111, 0 1 2,587 ,822 -< "V 2 , ~ , 822 c 167 , 6 16 167 , 6 16 4, ,394 4,344, 394 z CP r 7 , 200 7, 200 2~, ~ 2513,~ on 1,1 66 , 1,166, 44 , 225 44 , 2~ < c '",:4 ,1 4D 24 ,1 630 , 28 1 6~0 , 28 1 59 - -< 60 1 ~ , 86 1 '"- r ~ 5.529 3~, 508 l ~ ,l ~ To TA L L OCA L 12 ,1 ,4 13 13 ,1 1, 009 $ 47 0 , 764 $ 52 ,7 °z ~

(8 )

$3 , 06 1, 46 1

22~ ,40Q

$2 , 6~ , 3 0 0

28 ,800 76 , 600 113 , 900 172 , 000 7 ,4D0 45, 400 24 , 800 14, 200 433 ,1 00

1l..J<1JAQQ

( 10) $

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

27 . 6 23 . 6 87. 3

100 26 , 700 77 , 000 33 ,500 23 1, 200 2'8 , 000 56 , 800 294- , 300

97 .~ 22 .

20 .2 93 . 6

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

1 ~ , 800

38 ,4D0

d~ $

28,800 76 , 600 113 , 900 172 ,000 7 ,4D0 45,4D0 24 , 800 14 , 200 $ 433 ,1 00 $2 , 239 , 600

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

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

Also shown on the

chart is a weighted curve determined from the general equation b Y~aX

+ co

The San Francisco office of the Service Bureau

Corporation* was retained by Uestern 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 I as an example, the bus miles assignable to inter足 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

Line:

Item

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

Miles - Chart A

- "~

TYpe of Passenger : Intrastate: Interstate: Total Zone (1) (2) (3) 199 698 369 40.2

36.3

33.3

(3) Actual Bus ~ules Per 1,0~

Passenger Miles Year Ended 9-30-60

35.3

(4) Relative Bus Miles Per 1,000 Passenger Miles

39.1

35.3

Line (2 ) x .12.!.l 36.3 (5) Actual Passenger Miles (000)

Year Ended 9-30-60

91,967

110,621

202,588

(6) Equivalent Bus Miles

Year Ended 9-30-60

Line (4) x Line (5)

(7) Equivalent Bus Vdles-Percent

* A subsi diary of Intern a tional Business Machines, Inc. - 19 足

100.0%

The 50.1 percent shown on Line 7 of Table III is applied to Zone Group I, 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: For intrastate:

$130,800 91,967,000

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

= 0.142

¢/Psgr. mile

0 11 8 ¢/p sgr. ml'1 e =.

Comparing the results shows the expense allocated 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 III. 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: : Passenger: Miles

(000)

TABLE IV :Chart A Equivalent :Adjustment:Passenger Mile Percents Percent Factor Unadiusted Adjusted

40.2

Intrastate

91,967

45.4%

3b.3 =

50.3%

50.1%

Interstate

llO ,621

54.6%

3:3·3 -=

50.1%

49.9%

36.3

-Total Zone ...

_---._-

202,588 100.0% 100.4% 100.0% - -,- -- ,._-_ _ - The foregoing procedures are followed for each of ..

the mainline zone groups operating in California and, with

- 20

the minor exceptions as noted in the following text, are used for the following accounts in addition to Accounts 4141 and 4142: Account 4160 - Tires and Tubes - Revenue Equipment Account 4220 - Drivers' 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 and Registration Fees Account 5232 - Personal Property Taxes - Buses Account 1221 - Investment - Revenue Equipment Account 2521 - Reserve - Revenue Equipment

- 21 足

CHART A

180

170

OPERATIONS ~

ZONE

150

LINES

YEAR ENDED SEPTEMBER 30,1960

160

GREYHOUND

CALIFORNIA

IIJ

WESTERN

140

130

...J

:::lIE

120

a: w

z w

.....'"'"

(,!)

11 0

100

z co:

'" =>

0 0

:%:

... \

...J

'" => <Xl

::II

a: w

\:1:. 0

WEIGHTED CURVE EQUATION

...

~ 0

.K 0

LENGTH OF RIDE

Y BUS MILES OPERATED PER 1,000 PASSENGER MILES .

0 0

1'--

•

AVERAGE

f--

FOR ALL ZONE PASSENGERS .

-- 0

+ 25 .8

y = 221 X- 0516

0 0

I 0 0

o o

100

150

200 LENGTH

WKC

300

250 OF

- 22 -

350

R I DE

400

450

500

600

550

MILES C A LIFOR NIA

P U BLI C U TILITIE S

TRAN SPO RTAT IO N

DI VI SIO N

CO MM ISS I O N AP RI L 5 , 1961

Table V Sheet 1 of 4 MAINLINE ZONE GROUPS Zone GrouQ

1 San Diego-Los Angeles-Seattle

Zone 102 San Diego-Los Angeles-Seattle (Express) Zone 105 Los Angeles-Portland-Seattle Zone GrouQ

2 Los Angeles-Sacramenta-Redding

Zone 107 Los Angeles-Redding Zone 111 Los Angeles-Sacramento (Express) Zone 113 Los Angeles-Sacramento Zone GrouQ

3 San Francisco-Portland-Seattle

Zone 116 San Francisco-Seattle (Express)

Zone 118 San Francisco-Portland-Seattle

Zone 120 San Francisco-Klamath Falls

Zone Group

San Francisco-Southwest

Zone 140 San Francisco-Bakersfield

Zone 141 Barstow-Albuquerque

Zone GrouQ

5 San Francisco-Los Angeles-San Diego

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

6 Portland-Seattle-Vancouver, B.C. 275 277 281 284 288

Seattle-Vancouver

Seattle-Bellingham

Seattle-Portland

Seattle-Olympia

Seattle-Port Angeles

- 23 足

Table V Sheet 2 of 4 j~INLINE

Zone Group Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Group Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Group

ZONE GROUPS

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

The Dalles-Spokane Seattle-Butte Seattle-Spokane Portland-Salt Lake City Twin Falls-Pocatello Spokane-Wallace Seattle-Lewiston Wenatchee-International Boundary Spokane-Trail Spokane-Creston Spokane-Portland Spokane-Umatilla-Portland Spokane-Pendleton Ellensburg-George Salt Lake City-Idaho Falls-Ashton Deer Lodge-Helena-Ashton

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

Portland-Klamath Falls-Reno Portland-Seaside Portland-Astoria (Colorado River) Portland-St. Helens Portland-Seas ide-Astoria (Sunset Highway) Corvallis-Newport Portland-Myrtle Point Portland-Eugene-Reedsport Portland-Salem Portland-Eugene-Cottage Grove Crescent City-Medford Klamath Falls-Medford

9 San Francisco-Rena-Rock Spr ings,J Wyoming

Zone 190 San Francisco-Rock Springs Zone 200 San Francisco-Winnemucca-Wells Zone 202 San Francisco-Reno ~one

Group 10 San Francisco-Sacramento Area Zone Zone Zone Zone Zone Zone Zone

204 206 351 353 354 358 361

San Francisco-Rena-Squaw Valley San Francisco-Nevada City Sacramento-Placerville San Francisco-Tahoe-Reno San Francisco-Sacramento ~Express) San Francisco-Sacramento Local) San Francisco-Oraville-Reno

- 24 足

Table V Sheet 3 of 4 W~INLINE

ZONE GROUPS

Zone Group 11 Redwood Em2ire Zone 133 San Francisco-Portland (Redwood) Zone 135 San Francisco-Eureka Zone Group 12 Other California Mainline Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone Zone 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

461 463

San Francisco-Willits San Francisco-Ukiah (Express) San Jose-Salinas Los Angeles-Santa Barbara San Francisco-Santa Rosa San Francisco-Fort Bragg Santa Rosa-Monte Rio Lake County Sonoma Valley Napa-Santa Rosa San Francisco-Calistoga San Francisco-Chico 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-Boulder Creek Hollister-Watsonville Santa Paula Valley Fresno-Tulare

Zone Group 13 Los Angeles-San Diego-Rock Sprinqs, Zone Zone Zone Zone Zone

131 210 220 222 224

l~oming

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

- 25 足

Table V Sheet 4 of 4 MAINLINE ZONE GROUPS Zone Grou12 14 Los Angeles-San Diego-Southwest Zone Zone Zone Zone Zone Zone

230 240 242 250 260 262

Los San San Los San Los

Angeles-Albuquerque Diego-Albuquerque (Express) Diego-Flagstaff Angeles-El Paso Diego-El Paso Angeles-Tucson (Express)

Zone Group 15 Los Angeles-South Zone Zone Zone Zone Zone Zone

465 471 474 479 482 491

Los Angeles-Calexico

Santa Monica-Palm Springs

Los Angeles-San Diego (Express)

Los Angeles-Port of Entry (Express)

Los Angeles-San Diego

Los Angeles-San Diego (Inland)

Zone Grou12 16 Arizona Miscellaneous Zone 495 Phoenix-Tucson

Zone 498 Tucson-Douglas

Zone Group 17 Guaranteed and Special Operations Zone Zone Zone Zone Zone Zone Zone Zone Zone

501 509 511 512 513 514 515 517 519

Guaranteed Operations-Southern Pacific Company Escorted Tours Harrahs Club Growers Farm Labor Military Nevada Lodge Snow Specials Carson City-Nugget Club Other

Zone Grou12 18 Charter Operations Military and Government Migrant Labor Rail Substitution School Contracts Extended Tours Etc. <}

- 26 足

Table VI Sheet 1 of 2 L ZONE Gi-\OUPS _LOC;\ ..........-....------- Zon~_GrQY2..

51 lia shin,g,ton

Zone 618 Seattle-Everett

Zone 622 Seattle-Auburn

Zone 627 Seattle-Tacoma

Zone . 536 Portland~Forest Grove

Zone 645 Portland-McMinnville

4,Qne GJ;:ouQ 53 Ea s.:Lm Zone Zone Zone Zone

650 654 656 690

San Francisco.Vallejo-Napa

San Francisco~Vallejo (Express)

Oakland-Vallejo

San Francisco-Pinole-Port Chicago

~n..El.-fu:Q1m21....g 0 n tI: a

Co s II

Zone 664 San Francisco-Concord-Pittsburg (7th Street) Zone 673 San Francisco-Concord (Transbay Terminal) Zone 680 Oakland-Concord ~£Dg~~QYQ-22-Marin

Zone Zone Zone Zone Zone Zone Zone Zone

GI£~~

Zone Zone Zone Zone Zone Zone

700 710 720 740 760 790 798

San San San San San San San

Francisco-Hill Valley (Ferry)

Francisco-Ross Valley (Ferry)

Francisco-Novato (Ferry)

Francisco-Mill Valley (7th Street)

Francisco-Ross Valley (7th Street)

Francisco-Novato (7th Street)

Francisco-Bolinas

56 Peniosula 800 San 810 San 840 San 870 San 880 San 886 San

Francisco-San Jose (Bayshore)

Francisco-Palo Alto (Bayshore)

Francisco-Redwood City

Francisco-San Jose (Express)

Francisco-Pedro

Francisco-Half Moon Bay

- 27 -

Table VI Sheet 2 of 2

Zone

G~QY2-P.l~l:ong

Be,g£h

Zone 900 Long Bea ch-Santa .vionica ZonLY.I21!fL.2SL.§an

Di~

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

Zone 944 Fort Ord Army Base Zone 948 Travis Air Force Base-San Francisco Airport kQ.Qe.GroYQ..QO

_ Ra~_Tr~c15§.

Zone 969 Oakland-Bay Meadows

Zone 971 San Francisco-Bay Meadows

Zone 976 San Bernardino-San Ysidro

- 28

TABLE VII

MOTOR COACH GROUPS

GrOup

No. 1 2 3 4

5 6 7 8 9 10 11 12

:Ye,2,r ModelL 1947 1948 1948 1947 1951, 1952 1954 1953, 1954 1957 1958 1954, 1955 1956 1960

Coach MoqeL GMC GMC GMC ACF GMC GMC GMC GMC GMC GMC GMC GMC

PD 3751 PD 3751 PD 4151 I.C. 41 PD 4103 PD 4103 PD 4104 PD 4104 PD 4104 PD 4501 PD 4501 PD 4104

Sea,!.s 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

!~ l 3)

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

.llnit.§._(l)__

.•

106

163

161

193

125

151 73 76 1,176

GMC GMC GMC GMC

- TD 4502 - TD 4506 - TDM 5103 - Tm,,] 4509 G~.jC - TDivi 4515 GMC - TDM 4515 GMC - TDM 4801 MACK - C - 49 GMC - PD 3751 GMC - PD 3751 GNIC - PD 4151

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

SUBTOTAL (3 )

39 59 37 3 15 15 75 30 7 23 55 --358

TOTAL

1,534

Units owned by Western Greyhound Lines - March 31, 1960. Primarily used in Mainline Service. Primarily 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 the 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 1.

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 result.

~hile

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 year 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.

This is done by making a

special analysis of company records and in the case of local operations final allocations to zone groups can be made on the basis of bus miles. For mainline 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.

-31足 -

- -- - - - -

- - --

ACCOUNT 4151 - SERVICING REVENUE EQUIPMENT - LUBRICATION

All of the various types of motor coaches operated by Western Greyhound Lines are on the same mileage schedule for lubrication service.

The 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 transit.

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.

o e

- 32 足

ACCOUNT 4152 - SERVICING REVENUE EQUIPMENT 足 WASHING AND 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 inc ident to

sweepout s II and window wa sh ings of buse s rna king

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 have 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. 3asedon a special analysis, the local bus miles are assigned 2~

times the expense of a mainline bus mile to accomplish

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

COO

- 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 epxense 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. Illustrating 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

¢/BM

Division No. 1

0.99¢

0.47

0.92) ) 1.07) ) 0.89)

1.06

1.30

5 (2)

2.96

4 (1)

Weighted average of these three divisions used for California main line bus miles.

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

- 36

ACCOUNT 4220

-=--.QRIV~~AGES

Account 4220 is essentially treated in the same manner as other bus mile expenses; this method is discussed under Bus Mile Expenses beginning on Page 11.

However, the

development of the average cost for each zone group is accomplished in a different ma nner than is shown in Table I, Page 17.

Unlike bus

~ile

expenses such as maintenance of

equipment9 drivers' wages are determined by the operating characteristics of zones rather than operating character足 istics of zones and types of motor coaches operated.

becomes necess 2ry, therefore, to establish the relative drivers' wages by zones and translate this to average cost by zone group to comr lete the equivalent passenger mile allocation procedur e .

A complete study of drivers' wages by

zones was completed for the month of October 1959; studies show that October is a reliable month to establish the respresentative variation which obtains betvleen zones for drivers' wages for a full year period. Analyses also produce positive evidence that this relativity does not change even though drivers'

~age

rates change from period to period; this

fact obviates the necessity of frequent drivers' wage checks which are costly and time consuming to accomplish. (From time to time, special checks must be made to adjust the expense for zones \"hich undergo operational changes affecting drivers' wages.) Once the relative zone cost per bus mile is established, it is a simple step to prod'.!ce average cost for System and California zone group bus miles.

Continuing

-37足 -

- --

with Zone Group I as an example, the bus mile expense for the c~

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 II, Page 18. TABLE VIII Account 4220 - Drivers' Wages System and California Average Cost Per Bus Mile Zone Group I - Year Ended September 30, 1960

System 102 12.910¢ 105 13.282¢ Total System

9,216,016 1 1 590 1 747 10,806,763

California 102 12.910¢ 105 13.282¢ Total California

6,020,637 969.....005 6,989,642

$1 9 189,788 __ 211.t283 $1,401,071

12.962.1

777,264 12§.2.. 703 905,967

12. 962,t

______J

After this process is completed for each of the 28 zone groups, an appropriate factor to correct to ledger totals is applied to the California distributed expense and a procedure similar to that shown in Table II is followed.

. . ~

-38

6~~Q'\:l~L1~, 30 _::_ FU£b_ F OR RS~~g....EQUfEi:J£~I

The treatment of fuel expense for motor coaches is similar to that outlined for Accounts 4141 and 4142 with the exception that a correction factor is applied to the distri buted California fuel expense which accrues as in Column 8 of Table II, Page 18.

The correction is based on the fact that

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

In order to reflect this ad

vantage in the fuel expense allocated to California and California intrastate operations, the adjusted distributed 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 following

procedure for zone groups operating in California: 1. Mainline zone

grou ~ s

operating primarily in

California service (2, 5, 10, 12, 15, 17, 18) based on average California price per gallon,

~ ainline

zone groups operating primarily in

Califo r nia interstate 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,

Local Zone Group 58-San Diego price per gallon.

- 39 - - - - - - --

Ac;COYNT 4262 -

i281..QÂ§E~._TUN~EL_ & FERRY TO~LS

For mainline operations, system tolls expense is developed by zones from scheduled bus trips through toll crossings.

From 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 some of the toll expense in California should be assigned to other st a tes, if the theory lithe expense is for the good of the whole trip" is adopted.

It would also be reasonable to allocate some 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 states between California and Illinois, 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 Califor.nia passengers only.

Since California interstate and intrastate

passengers regardless of length of ride, pay the same extra fare when their trip involves a tell 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 Â

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. \~ile

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 applicable to local operations.

- 41 足

Fxamp le 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 ~ight use this service. Passengers 1, 4, 5, 7 are related to toll expense.

Howev er,

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

This method would give correct results if: 10 1 + 10

11 + 12 + 13 4 + 5 + 7 + 11 + 12 + 13

VIESTERN GREYHCUND LINES

CALIFORN IA

STATE

# 2

STATE ~# 3

BU S

T R I P

Z 0 N E

II-Intra* _

2-Intra

~ Ian

Fran cisc9 1

3-Intra

4-Inter*

I I

S-Inter*

6-Inter

I I

7- Inter*

8-Inter 10-Intra

...

9-Inter

II-Inter 12-Inter 13-Inter Toll * Tariff Fare Includes Toll Charge. - 42 足

ACCOUNT 4300 - pTATION EXPENSE

SPECIAL NO':'E A general discussion of the procedures developed for the allocation of station expenses is contained in this section.

Incluced are explanations of the methods used for

the following accounts: 1.

Account 4311

- station

Account 4331

Account 4340 - Interline Commissions-Paid

Account 4350 - Interline Commissions-Earned

~ "I.

Various

Salaries

Commissions Patd

Station Overheads

More comprehBnsive explanations of the methods used for the various accounts are contained in a separate volume, which is devoted exclusively to station expense allocation and in which is included the detailed studies and statistical data used in developing station expense allocation 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 state 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 8iego.

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 been 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 -

- -- -- - - - _.

The allocation of baggage clerks' wages presents a two-fold problemi 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 were 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, developed 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 bills handled at company operated stations during a representative test period.

- 45 足

Station salaries, other than those for ticket clerks and baggage-express clerks, or employees whose functions are closely related thereto, are classified as over足 head expenses and are allocated in the manner outlined for this type of account as discussed under Station Overheads. Figure 1, following, schematically presents the procedures for allocating Account 4311.

- 46 足 -

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

(

.-'

(

ACCO~"NT

4331 - COMMIS~IONS PAID

An appreciable volume of passenger ticket sales 9 express forwarded and received, and charter trip promotions ere handled by non-salaried agents of Greyhound who operate on a commission basis.

The compensation paid these agents

is generally ten percent of the revenue that they secure for the company through their sales efforts. The percent of California intrastate 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 are 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

limite~

by the seasonal variations that occur for

passenger ticket sales. 000

-48足

ACCOUNT 4340 ... INTERLINE CQviNIISSIONS PAID 6CCOUNT 4350 - INTERLINE CQi\'E.fIISSIONS EARNED ~estern

Greyhound Lines as a division of

The

Greyhound Corporation handles passengers to and from points located in other Greyhound divisions in addition to inter足 cha~ging

passengers with other carriers on through con足

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 \Jestern territory. Account 4300, Station Expense, is credited with these commissions 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 tickets sold by other divisions or other carriers and honored on Western's lines is prorated basis.

to California on a truck-line, route-mile

Again, since an insignificant amount of this expense

pertains to California intrastate

service~

all of the

California expense is charged to interstate service.

-49足

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 relative 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 and 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 California 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 precentages applicable to the individual stations and the remainder is charged on a state basis to mainline intrastate and interstate operations on the basis of the number of passengers carried in each class of traffic.

- 50 足 -

--- -

- -- - - - --

The following accounts are included in the station overhead group: ~ccount

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 Equipment Station Depreciation Real Estate Taxes (Station) Personal Property Taxes (Station) Station Rent (Dr.) Station Rent (Cr.)

4311 4311 4-315 4319 5011 5231 5232 5322 5362

Income

5372

3601

3609

(1)

station Rental Income Revenue from parcel lockers Other station revenue

(1) Category 2.

- 51 足

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

ACCOUNT 4410, - SALARIES AND EXPENSES, TRAFFIC SOLICITATION_

Employees whose salaries are included in this account arG sales managers, assistant sales managers, regional iales 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 agencies 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 employees is difficult to determine as are the relative amounts of their time that should be assigned to their various functions.

These salaries and expenses are therefore

considered to be related to the over-all operation and are allocated to the different services in particular areas on the basis of passenger miles which is judged to be the most equitable measure of the employees' activities.

- 52 足

()

ACCOUNT 4440 - TICKETS AND BAGGAGE CHECKS There are three main types of tickets in general use by Western Greyhound. (1)

Roll tickets - preprinted destinations 足 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 blankThese are used for various destinations to which the volume of passengers is insuf足 ficient to warrant carrying a supply of roll tickets.

While these are used largely for

interstate and interline trips a considerable number are used in intrastate services. (3) 20-ride commutation tickets - tear off 足 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 is 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 4311.

-53足

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 31, 1960.

After the removal of local operations ticket expense,

the remainder, which is applicable to mainline operations, lends itself readily to an analysis based on number of tickets used (passengers) and complexities of ticket (passenger miles). An analysis, made by the Commission 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 expense 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 on the 25 percent for baggage checks, produces a weight of for passengers and

62~

percent for passenger miles.

37~

percent

In order

to 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 - ADVERTISING

The advertising expense 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 and the resulting total expense is reapportioned to the various companies on the basis of revenues earned. western Greyhound does not have an advertising department.

The company sales managers generally handle any

matters relating to advertising which require the attention of company representatives.

The actual arrangements for

radio and television time, etc., are handled by advertising agencies. It is evident that the effort spent in securing increased passenger business is directed toward people who do not ordinarily travel by Greyhound, that is, to those who have never used the service or to those whose use of it has been very infrequent.

Anyone who has used Greyhound service

to any great extent is unlikely to be influenced by advertising one way or another with the possible exception of tour advertising or the suggestion of visiting specific places or attending special events.

However, the contribution to

passenger and revenue statistics made by passengers through regular riding habits (commute trips, particularly) is not a reflection of the incurrence of advertising expense.

Even

though a regular or commute rider was originally influenced to try Greyhound service as the result of institutional advertising, whether he continues this use depends entirely upon his personal experience with the service (e.g., frequency, - 55 足

comfort, speed, cost, etc.).

Once a rider has weighed the s 8

factors and compared them with those experienced on other means of transportation, he draws conclusions about the desirability of bus service and advertising is not likely to change those conclusions unless, of course, marked and specific improvements in service are announced through advertising media. The only accurate determination of the effectiveness of advertising in connection with a specific type of service should be made by knowing how much less business would have been done by the service had there been no advertising, or conversely, how much more with advertising. This differential seems impossible to determine in connection with mainline service and occasional local riding. It is unlikely, however, that the volume of peak hour commute riders would have been measurably less for any period of time had the company not engaged in advertising (particularly 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 sales resulting from advertising are the passenger miles representing certain occasional riders who are usually of the long haul type.

It appears, therefore, that an

equitable allocation of advertising expense, and the one followed in this manual, should be made on a passenger mile basis with the judgment provision that all passenger miles representing regular and commute riders be given half weight. 800

- S6 足

ACCOUNT 4531 - PUBLIC LIABILITY AND PROPERTY - DAMAGE - 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 a severe nature. The allocation procedure for Account 4531 is handled in a manner similar to that for Account 4211, Supervision of Tr2nsportation.

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 Divisions 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 uivision 5 is used for Zone Groups 54, 55, 56 and 57 except Zone 870 (San Francisco-San Jose Express); the expense per mile for Division 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 well 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 actual cost of public liability and property damage for the period is finally determined"

- 58 足

ACCOUNT ...4600 - ADHINISTRATIVE AND"GENE,AL - - - - - - - - _. - - - EXPENSES ----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 expenses of maintaining a general office in San Francisco; these functions are affected by or affect the sundry activities of the entire operation of the company.

For the most partt 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 totals rather than just to the wages and salaries contained in the accounts; the latter method affords the advantage of eliminating a considerable amount of detail with its attendant time-consuming analysis.

- 59 足

The accounts in the 4600 series are therefore prorated to the various operations on the basis of the distribution of the expenses for the 4100 to 4500 accounts.

- 60 足

INVESTMENT, RESERVE AND DEPRECIATION EXPENSE-LAND AND STRUCTURES

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

These facilities fall into

three categories: 1 - Stations 2 - Garages 3 - General Office Following the general procedure for allocation 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 office 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 Leasehold Property Investment Account 2571 - Improvements to Leasehold Property Depreciation Reserve Account 5071 - Depreciation on Improvements to Leasehold Property Account 1291 - Unfinished Construction (where applicable to any of the above accounts)

••• -61

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 Western1s

geographical position in the Greyhound system, buses owned by Western log more miles outside Western territory than buses owned by companies other than Western log in Western territory. To illustrate, Western will start one of its buses from San Francisco bound for Chicago and operate it to Rock Wyoming, the limit of Western territory.

Springs~

At that point Central足

Southwestern 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 Central足 owned equipment.

Western would operate that equipment from Rock

Springs to San Francisco.

Subtracting the Central equipment 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, produce excess miles which are in - 62 足 - -

- -

- - -- -

favor of Western Greyhound for any given period.

(For the

year ended September 30, 1960. Western's excess miles totaled 2,767,170).

This situation results in the fact that Western

owns an excess of equipment over that needed to operate 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 all allocations have been achieved.

At that time appropriate

adjustments are made to the fixed expenses of investment t depreciation t and license fees as well as other minor adjustments for certain variable accounts included in the lease arrangements.

- 63 足

SECTION I I

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

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

Following are some examples of its usage:

(1)

State Mainline

( 2)

State Local

(3)

State Intrastate Mainline

(4 )

State In-:rastate 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, Washinton, Oregon, etc.) may be substituted for and is synonymous with the word State as used above.

- 64 足

PROPOSED

SEPARATION

AND ALLOCATION PROCEDURE

FOR WESTERN GREYHOUND LINES

SYSTEM

I SYSTEM

SYSTEM

MAINLINE

LOCAL

()'\

STATE

MAINLINE

REMAINDER (OTHER STATES' MAINLINE)

REMAINDER (OTHER STATES' LOCAL)

STATE LOCAL

I STATE INTRASTATE MAINLINE

STATE INTERSTATE

STATE INTRASTATE LO CAL

MAINLINE

STATE INTERSTATE: LOCAL

STATE INTRASTATE OPERATIONS ~-

1足 CALIFORNIA

PUBLIC

TRANSPORTATION

UTILITIES

DIVISION

COMMISSION M A R 23,1961

ACCOUNT 3000

OPERATING REVENUES

ACCOUNT 3200 - , PASSENGER REVENUE

SYSTEivi

----

Develop System total into zone groups from special anal ysi s of com pany records.

Separate mainline zone groups from System. SYSTEM LOCAL Separate local zone grou ps fro m System. STATE MAINLINE Separate from System Mainline by zone groups on the basis of periodic zone checks. STATE LOCAL Separate from System Local by zone groups on direct ba si s. (No local zone s cross sta te line s .) STAT]: INTRASTATE MAI NLINE Separate from State Mainline by zone groups on the basis of periodic zone checks. STATE INTRASTATE LOCAL Consider Intrastate Local to be equal to State Local.

- 66 足 -

- _._ .-

- -- - - 足

ACCOUNT 3210 • SPECIAL

BU~

REVENUE

(C~~TERl

SYSTEM Develop System total into revenue by states from company records ..

SYSTEivl MAINLINE Consider System Mainline to be equal to System.

SYS TElVl LOCAL Consider none of this account applicable to local operations.

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

Sl!ATE LOCAL Not applicable.

STATE INTRASTATE MAINLINE Separate from State Mainline on the basis of a special analysis of company operations.

STATE INTRASTATE LOCAL Not applicable.

- 67 - - - - -- -

-- -

- _.

ACCOUNT 3220 - BAGGAGE REVENUE (EXCESS)

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

SYSTEtvl UIAINLII\jE 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 from State Mainline on the basis of Intrastate Mainline passenger miles.

STATE INTRASTATE LOCAL Not applicable.

- 68 足

A~COUNT

3300 - MAIL REVENUE

SYSTEM Develop System total into revenue by states from company records. 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 direct basis by state total developed under System. STATE LOCAf.. Not applicable. STATE INTRASTATE MAINLINE Allocate from State Mainline on the basis of equivalent passenger miles. STATE INTRASTATE LOCAL Not applicable.

- 69 足 -

- - -

ACCOUNT 3400 - EXPRESS REVENUE - NEWSPAPE~ REYENUE

ACCO~~T:3!JbO

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

SYSTEri, MAINLINE Consider System Mainline to be equal to System.

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

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

STATE LOCAL Not applicable •

.§TATE INTRASTATE 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: 1. 2.

Revenue from baggage storage Revenue from parcel lockers.

SYSTEM MAINLINE Allocate from System by category on the following basis: 1. 2.

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

SYSTEM LOCAL 1. Consider none of the revenue in this category applicable to local operations. 2. Separate from System by states by stations on the basis of station overheads. STATE MAINLINE Separate from System Mainline by state t.tal developed under System. (Both categories) STATE LOCAL 1. Not applicable. 2. Separate from System Local by state total developed under System Lecal. STATE INTRASTATE MAINLINE Separate from State Mainline by category on the following bases: 1. 2.

Passenger Miles. Passengers.

STATE INTRASTATE LOCAL Consider Intrastate Local to be equal to State Loc ale

- 71 足

ACCOUNT

3609 - OTHER

STATION REVENUE

SYSTH\ Develop System total into revenue by states from company records of station revenues. SYSTEM IVlAINLINE Difference of System and System Local. SYSTH~

LOCAL

Allocate from System by states by stations on the basis of station overheads. STATE

~1AINLINE

Separate from System Mainline on state basis. STATE LOCAL Separate from System Local on state basis. STATE INTRASTATE MAINLINE Separate from State Mainline on the basis of Intrastate Mainline passengers. STATE INTRASTATE LOCAL Consider Intrastate Local to be equal to State Local.

- 72 足

ACCOUNT 3901 - GUARANTEED ROUTE REVENUE

SYSTEM Develop System total into applicable zone groups from special analysis of company records.

SYSTEl"l MAINLINE Consider System Mainline to be equal to System.

SYS TEM LCCAL Consider none of this account applicable to local operations.

STATE MAINLINE Separate from System t1ainline by zone groups on the basis of a special analysis of company operations.

STATE LCCAL Not applicable.

STATE INTRASTATE MAINLINE Allocate from State Mainline by zone groups on the basis of Account 3200.

STATE INTRASTATE LeCAL Not applicable.

- 73 足

ACCOUNT 3909 - OTHER OPERATING RF.'JFNUE

SYSTEM Develop System total into revenue applicable 1. 2. 3.

to~

Escorted Tours. Mainline operations. Local operations.

SYSTEM MAINLINE Separate from System on direct basis. (Categories 1 and 2 above. ) SYSTEM LOCAL Separate from System on direct basis. (Category 3 above.) STATE MAINLINE Allocate from System Mainline on the following bases: 1. State r1ainline escorted tour operating

income in Account 4396. State Mainline passenger miles.

STATE LOCAL Separate from System Local on the basis of a special analysis of company operations. STATE INTRASTATE tv;AINLINE Allocate from State Mainline on the bases outlined under State Mainline. STATE INTRASTATE LOCAL Consider Intrastate Local to be equal to State Local.

- 74足

ACCOUNT 4100 EQUIFMENT MAINTFNANCE AND GARAGE EXPENSE

ACCOUNT 4110 - SUPERVISION OF SHOP AND GARAGE ACCOUNT 4120 - REPAIRS TO SHOP AND GARAGE EQUIPMENT. BUILDINGS AND GROUNDS A~~D CF-E?ATION AND MfHNTENANCE OF SERVICE EQUIPMENT ACCOUNT 4130 - LIQ-iT, HEAT, POWER AND WATER FOR SHOPS AND GARAGES AND OTHER SHOP AND G~~GE EXPENSES.

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

- 75 足

ACCOUNT 4141 - REPAIRS TO REVENUE EQUIPMENT - MATERIAL ACCOUNT 4142 - REPAIRS TO REVENUE EQUIPMENT - LABOR

SYSTEM MAINLINE Separate mainline zone groups from System.

SYSTEM 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 groups.

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

STATE INTRASTATE

~~INLINE

Allocate from State Jl!lainfue by zone groups on the basis of equivalent passenger miles.

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

- 76 足 - - - - ---

ACCOUNT 4143 - REPAIRS TO REVENUE EQUIPMENT - ACCIDENT

SYSTEM Develo~ System total into two bus types (mainline and transit) using company records of cost per bus mile by bus type and bus miles operated by bus type.

SYSTEM MAINLINE 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. STATE MAINLINE Allocate from System Mainline on the basis of Accounts 453l-A and 4531-B. 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-B. STATE INTRASTATE LOCAL Consider Intrastate Local to be equal to State Local.

- 77 足

ACCOUNT 4151 - SERVICING

REVE~~E

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 IviAINLINE 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.

- 78 足

ACCOUNT 4152 - SERVICING REVENUE EQUIPMENT - WASHING & CLEANING

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

SYSTEM MA.INLINE 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. 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.

- 79 足 --- -

ACCOUNT 4159 - SERVICING REVENUE EQUIPMENT - OTHER

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 hte basis of equivalent passenger miles.

STATE INTRASTATE LOCAL Nut applicable.

- 80 足 - - - - --- -

- -

ACCOlJNT 4160 - TIRES AND TUBES - REVENUE EQUIPMENT

SYSTEM Develop System total into zone groups using cost per mile by bus groups from company contract cost per mile and zone group bus miles by bus groups from special analysis of bus group mileage assignments to zone groups. SYSTE1'vl lvlAINLINE Separate mainline zone groups from System. SYSTEM LOCAL Separate local zone groups from System. STATE MAINLINE Separate from System Mainline using state bus miles of bus groups by zone groups. STATE LOCAL basis.

Separate from System Local by zone groups on direct (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.

- 81 足

ACCOUNT 4191 - JOINT GARAGE EXPENSE - DEBIT ACCOUNT 4196 - JOINT GARAGE EXPENSE - CREDIT

Accounts 4191 and 4196 are overheads to Accounts 4140 and 4150 for intercompany motor coach maintenance.

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

- 82 足

Af90UNT 4200

TRANSPORTATION EXPENSE

ACCOUNT 4211 - SUPERVISION OF TRANSPORTATION - SALARIES 4219 - SUPERVISION OF TRANSPORTATION - OTHER

ACCOU~T

SYSTEM Develop System total into cost per bus mile by divisions using special analysis of total expense by divisions and bus miles operated by divisions. SYSTEM MAINLINE From System, separate expense of divisions that are wholly mainline. From System, allocate expense of divisions that are partly mainline and partly local using mainline bus miles and cost per mainline bus mile obtained from special analysis of company operations. SYSTEM LOCAL From System, 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 analysis 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. 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.

- 83 足

ACCOUNT 4220 - DRIVERS' WAGES AND 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. SYSTEivi MAINLINE 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 basis.

Separate from System Local by zone groups on direct (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.

- 84 足

ACCOUNT 4230 - FUEL FOR REVENUE EQUIPMENT

SYSTEM Develop System total into zone groups by bus groups. Use miles per gallon by bus groups and system cost per gal足 lon 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 MAINLINE Separate System Mainline zone groups into two categories: 1. Zone groups operating primarily intrastate. 2. Zone groups operating primarily interstate. Separate by category by zone group on the basis 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 groups on the basis of equivalent passenger miles. STATE INTRASTATE LOCAL Consider Intrastate Local to be equal to State Local.

- 85 足

ACCOUNT 4240 - OIL fOR REVENUE EQUIPiJiENT

SYSTEM 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 groups. SYSTEM MAINLINE Separate mainline zone groups from System. SYSTEM LOCAL Separate local zone groups from System. ggE MAINLINE Separate from System Mainline on the basis of State 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 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 足

ACCOUNT 4250 - PURCHASED TRANSPORTATION

SYSTEM Develop System total into uniform cost per mainline bus mile. SYSTEM IVIAINLINE 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 equiva足 lent passenger miles. STATE INTRASTATE LOCAL Not applicable.

- 87 足 - -

- --

-- -.- - - - 足

ACCOUNT 4261 - EOAD EXPENSE

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 1V1AINLINE Allocate from State Mainline on the basis of equi足 valent passenger miles. STATE INTRASTATE LOCAL Not applicable.

- 88 足 -

- -

- --

ACCOUNT 4262 -

BR}D_~TUNNEL.j,.

AND FERRY TOLLS

SYSTEM Develop System total into expense by zone groups by states from special analysis of company operations. SYS TEiIt 11;1AINLINE Separate mainline zone groups from System. SYSTEM LOCAL Separate local zone gr oups from System. STATE NlAINLINE Separate from System Mainline by zone groups by state. STATE LOCAL Separate from System Local by zone groups on direct basis. (No local zones cross state lineso) STATE INTRASTATE l'flAINLINE 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 足

A~~OUNT

42q3 - WAGE S OF i;\ I SCELLANEOUS TRANSP OHTATI ON EMPLOYEES

SYSTEifl ---

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. S YS TElv\ LOCA L

Consider none of this account ap plicabl e to local operations.

Allocate from System Mainline on th e basis of st a te escorted tour income.

STATE LOCAL Not applicable. STATE INTRASTATE MAINLINE

Allocate from State Mainline on the ba s is of State Intrastate escorted tour income. STATE INTRAST ATE LOCAL

Not applicable.

- 90 足

6CCOUNT 4264 - OTHER TRANSPORTATION EXPENSES

SYSTElv1 Develop System total into expense applicable to mainline operations and expense applicable to local operations from special analysis of company records.

SYS TEM 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 bus miles.

STATE LQCAL Allocate from System Local on the basis of State Local bus miles4

STArE INTRAstATE MAINLINE Allocate from State Mainline en the basis of equi足 valent paSsenger miles.

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

- 91 足

ACCO'JNT 4300

足

STATION EXPENSE

ACCOUNT 4311 - SALARIES AND COMMISSIONS

SYSTEM Develop System total by stations by states into four categories: Ticket and information clerks. Baggage and express clerks. Travel bureau employees. 4. Ticket office clerks, administrative and custodial employees. 1.

2. 3.

SYSTEM MAINLINE Allocate from System by category by stations by states on the following bases: 1.

2. 3. 4.

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

SYSTEM LOCAL Allocate from System by category by stations by states on the following bases: 1.

2. 3. 4.

Special analysis of company operations. Not applicable to local operations. Not applicable to local operations. Station overheads.

STATE MAINLINE 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 following bases: 1.

2. 3. 4.

the

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 State Local. - 92 足 -

~ -

- -- - -

- --

- -

ACCOUNT 4315 - STATION SUPPLIES AND EXPENSES ACCOUNT 4318 - OTHFR EXPENSES P.cCOTJNT 4319 - REPAIRS TO STATION BUILDINGS AND

E Q UIP~~ENI

SYSTEM Develop System total into totals by states by

stations.

SYSTH1 MAINLINE Difference of System and System Local.

SYS TEM LOCAL Allocate from System by states by stations on the basis of station overheads.

STATE MAINLINE Separate from System Mainline on state basis.

STATE LOCAL Separate from System Local on state basis.

STATE INTRASTATE MAINLINE Allocate from State Mainline on the basis of

intrastate mainline passengers.

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

- 93 足

ACCOUNT 1;-331

COHMISSIONS PAID

SYSTEM Develop System total into expense applicable to local operations by zone groups and expense applicable to mainline operations. SYSTEM MAINLINE Developed from special System analysis. SYSTEM 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 direct basis. (No local zones cross state lines.) STATE

IN~RASTATE

~~INLINE

From special analysis of state operations develop expense applicable to State Intrastate revenue. STATE INTRASTATE LOCAL Consider Intrastate Local to be equal to State Local.

- 94 足

ACCOUNT 4332 _. OTHER EXPENSES ALLOWED

Consider this account by states as an overhead

to Accounts 4311, 4315, 4318, 4319.

Allocate to various operations, i.e., System

Mainline, System Local, etc., on the basis of Accounts

4311, 4315, 4318 and 4319.

- '15 足 --

- _

.- -

- "-

- -- 足

ACCOUNT 4340 - INTERLINE COMMISSIONS PAID

ACCOONI 4350 - INIERLINE COMMISSIONS EARNED

SYSTEM

---

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

- 96 足

ACCOUNT 4391 - JOINT STATION FACILITIES DEBIT

This acc ount is applicable only to the State of New Mexico. For allocation purposes see Category 1, Account 4396.

- 97 足

ACCOUi'H 4396 - JOINT STATION FACILITI:?S - CREDIT

SYSTEM

--Develop system total into three

categories~

Joint facility cre¢it by states by stations. Ticket float selling expense correction. 3. Western Greyhound share of escorted tour operating income. 1.

SYSTEM MAINLINE Allocate from System by category on the following bases: 1.

2. 3.

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

SYSTEM LOCAL. Allocate from System by category on the bases outlined under System Mainline. STATE MAINLINE Allocate from System Mainline by category on the following bases: 1.

2. 3.

Direct by states. Account 3200. Account 4311.

STATE LOCAL Allocate from System Local by category on the bases outlined under State Mainline. STATE INTRASTATE

~~INLINE

Allocate from State Mainline by category on the following bases: 1. 2. 3.

Account 4311. Pccount 3200. fccount 4311.

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

- 98 - - - - - - -

~ ----

ACCOUNT 4400

TRAFFIC AND ADVERTISING EXPENSE

- -

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

ACCOUNT 4410 - SALARIES AND EXPENSES

SYSTEM Develop S~stem total into uniform cost per System passenger mile.

SYSTEM M/UNLINE 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 MAINLIl\1E Separate from System Mainline on the basis of State Mainline passenger miles.

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

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.

- 99 足

ACCOUNT 4430 - TARIFFS AND SCHEDULES

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. SYS TEM LOCAL Developed from special System analysis. STATE MA.INLINE 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 i',lAINLINE Separate from State Mainline on the basis of Intrastate Mainline passenger miles. STATE INTRASTATE LOCAL Consider Intrastate Local to be equal to State Local.

- lOr 足

ACCOUNT 4440 - TICKETS AND BAGGAGE

CHE~J<;.~

an~lysis.

STATE MAINLINE Allocate from System Mainline on the basis of 35% State Mainline passengers and 65% 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 Allocate from State Mainline on the basis of 35% Intrastate Mainline passengers and 65% Intrastate Mainline passenger miles. STATE INTRASTATE LOCAL Consider Intrastate Local to be equal to State Local.

- 101 足 -

- - -

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

ACCOUNT 4450 - OTHER TRAFFIC EXPENSES

SYSTEM Develop System total into two categories: 1.

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 rvlAINLINE Allocate Category 1 from System Mainline on the basis of Accounts 4410, 4430, 4440 and 4470. Allocate Category 2 from System Mainline on the basis of state escorted tour operating income in Account 4396. STATE LOCAL Not applicable. STATE INTRASTATE MAINLINE Allocate Category 1 frcmState Mainline on the basis of Accounts 4410, 4430, 4440 and 4470. Allocate Category 2 from State Mainline on the basis of State Intrastate escorted tour operating income in Account 4396. STATE INTRASTATE LOCAL Not applicable.

- 102 足

ACCOUNT 4470 - ADVERTISING

Develop System total into expense applicable to mainline operations and expense applicable to local operations using total mainline passenger miles and one-half local passenger miles. 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 rmiles. STATE LOCAL Separate from System Local on the basis of State Local passenger miles. 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 LCical.

103 足

ACCOUf'lT 4500

INSURANCE AND_SAFETY EXPENSE

ACCOUNT 4511 - SALARIES - CLAH.l AGENTS ACCOUNT 4515 - EXPENSES - CLAIi,4 AGENTS

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

- 104 足

ACCOUNT 4516 - SALARIES - OTHER (SAFETY) ACCOUNT 4519 - EXPENSES - OTHER SAFETY)

SYSTEM Develop System total into expense applicable to mainline operations and expense applicable to local operations from special analysis of company records. SYSTEM ivlAINLINE Developed from special System analysis. SYSTEM LOCAL Developed from special System analysis. STATE l\1AINLINE Separate from System Mainline on the basis of State Mainline bus miles. STATE LOCAL Allocate from System Local on the basis of State 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 足 --- - -

ACCOUNT 4521 - PUBLIC LIABILITY A1\JD PROPERTY DAMAGE - BUSES ACCOUNT 4529 - PUBLIC LIABILITY AND PROPERTY DAMAGE - OTHER

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

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

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

STATE tv1AINLINE 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.

- 106 足

ACCOUNT 4531-A - PUBLIC LI/l.BILITY AND PROPERTY DAJ\I!AGE足 SELF INSURER ACCOUNT 4531-B - FuBLIC LIABILITY AND PROPERTY CAMAGE足 CONI INGEr'JCI ES

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

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

SYSTEM LOCAL From System, separate expense of divisions that are wholly local. From System, allocate expen?e of divisions that are partly mainline partfy 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 i'1AINLINE Allocate from State i\1ainline on the basis of

equivalent passenger miles.

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

- 107 足 -

- -

'足

ACCOUNT 4541 - WOHK!.f;EN 1 S COMPENSATION - INSURANCE ACCOUNT 4546 - 'NORK/'.'lEN' S CQ!-'lPENSATION-SELF INSURER

SYSTEM Develop System total into three categories from special analysis of company operations prorating to each category expense not applicable to any of the three categories; 1. Maintenance employees.

L. Transportation employees by states.

3. Station employees by states. SYSTEM MAINLINE

Allocate from System by category on the following bases: 1. Account 4142. 2. Account 4220 by states. 3. Account 4311 by states.

SYSTE:'.'i LOCAL Allocate from System by category on the bases outlined under System Mainline. STATE ,路MINLINE Allocate from System Mainline by category on the following bases: 1. Account 4142. 2. By states. 3. By states.

STATE LOCAL Allocate from System Local on bases cutlined under State Mainline. STATE INTRASTATE !VIAINLINE Allocate from State Mainljne by category on the following bases~ 1. Account 4142. 2. Account 4220.

3. Account 4311. STATE INTRASTATE LOCAL Consider Intrastate Local to be equal to State Local.

- 108 颅

ACCOUNT 4560 - BAGGAGE AND EXPRESS LOSS

A.~ D

DAI.1AGE

SYSTP,1

Develop System t otal into expense applicable to baggage and expense applicable to express. SYSTE :~

MAINLINE

Consider System Mainline to be equal to

Syste ~ .

SYSTE 'A LOCAL

Consider none of this account applicable to local oper a tions. STATE MAINLINE

Serarate baggage expense from System Mainline on the basis of State Mainline passenger miles. Separate express expense fro m System Mainline on the basis of State Mainline express revenue. STATE LOCAL

Not applicable. STATE INTRASTATE MAINLINE

Separate baggage expense from State Mainline on the basis of Intrastate Mainline passenger miles. Allocate express expense from State Mainline on the basis of Intrastate Mainline express revenue. STATE INTRASTATE LOCAL

Not applicable.

- 109 足

ACCOUNT 4.570

=-LIB~~ND

THEFT INSVRANCE

SYSTEM Develop System total into expense applicable to mainline operations and expense applicable to local operations.

Developed fr om special System analysis. SYSTEM LOCAL Developed from special System analysis. STATE MAINLINE Allocate from System Mainline on the basis of State Mainline revenue equipment rate base. STATE LOCAL Allocate from System Local on the basis of State Local revenue equipment rate base. STATE INTRASTATE IvlAINLINg Allocate from State Mainline on the basis of Intrastate Mainline revenue equipment rate base.

Consider Intrastate Local to be equal to State Local.

- 110 足 -------- ~

ACCOUNT 4580 - OTHER INSURA.NCE

SYSTElvl Develop System total into uniform cost per system bus mile. SYSTEivI ivlAINLINE Se oarate from System on the basis of mainline bus miles. . SYSTEM LOCAL Separate from System on the basis of local bus miles. STATE MAINLINE Se parate 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 ;vlAINLINE Allocate from State Mainline on the basis of equivalent passenger miles. STATE

INTF~ASTATE

LOCAL

Consider Intrastate Local to be equal to State Local.

- III 足

ACCOUNT 4600

ADMINISTRATIVE AND GENERAL EXPENSE

---~

Consider Accounts in the 4600 group as overheads to operating and maintenance expenses. Allocate to various operations, i.e., System Mainline, System Local, etc., on the basis of Accounts 4100 to 4500,inclusive.

- 112 足

ACCOUNT 5000

Q££BF~I8IlQN_EXPE~£

ACCOUNT 1201 - LAND AND LAND RIGHTS ACCOUNT 1211 - STRUCTURES AcCOUNT 5011 - DEPRECIATI Or-j J F STHUCTUEES

ACC UUI~Ti27 r··~-'·iT.;Pl=-'OvIMEr\jTS-·TOlli:::sr;-f6115" -PR OfJ ERTY

ACCOUNT 5071"- DEPRt.CIATION ON IMPROVEMENTS TO ------ - - - . LEASEHOLD PRO?ERTY SYSTEM ---Develop System total into t wo categories:

1. 2.

Stations by states. System garages.

SYSTEj'!j ivlAI NLINE Allocate from System by category on the following ba s e s; 1. 2.

Diffe r ence of System and System Local. Accounts 4140 and 4150.

SYS TEhi LOCAL Allocate from System by category on the following bases: 1. 2.

Station ove r head s by sta t es by stations. Accounts 4140 and 4150.

Separate Category 1 from System Mainline on state basis. Allocate Category 2 from System Mainline on the basis of Accounts 4140 and 4150. STATE LOCAL Separate Category 1 from System Local on state basis. Allocate Category 2 from System Local on the basis of Accounts 4140 and 4150. STATE INTRASTATE j;;lAINLINE Allocate from State Mainline by category on the following bases: 1. 2.

Intrastate Mainline Passengers. Accounts 4140 and 4150.

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

- 113

SYSTEivl Develop System total into zone groups by bus groups from special analysis of amounts per bus for each bus group. SYSTEAl MAINLINE Separate mainline zone groups from System. SYSTEiv; LO<;:AL Separate local zone groups from System.

Separate from System Mainline on the basis of Mainline bus miles of bus groups by zone groups 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.)

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.

- 114 足

ACCOUNT 1 '2 31 - SERVICe: CARS AND EQUIPiV1ENT ACCOUNT 5031 - DEPRECIATION OF SERVICE Cp,RS AND EQUIPt '! ENT

Consider these accO\ ;nts as overheads to operating and maintenance expenses. Allocate to various operations, i.e., System Mainline, System Local, etc., on the basis of Accounts 4100 and 4500, inclusive.

- 115 足

ACCOUNT 1241 - SEOP AND GARAGE EQUIPI'1DJT ACCOUNT 5041 - DEPRECIATIOn OF SHOP AND GARA(;~ F()UIPMENT

Consider these accounts as ov erheads to Accounts 4140 and 4150. Allocate to various operations 9 i.e., System Hainline, System Local, etc., on the basis of /\ccounts 4140 and 4150.

- 116 足

- - -

- _.

ACCO{ iNT 1251 - FURNITL'RE AND OFFICE EqUIPMENT ACCOUNT 5051 - DEPRECIATION OF FURNITURE AND OF?ICE EQUIPMENT

Consider these accounts as overheads to operation and mainttnance expenses. Allocate to various operations, i.e., System Mainline, System Local, etc., on the basis of Accounts 4100 to 4500,inclusive.

- 117 足

ACCOUNT 1262 - SIGNS ACCOUNT 5062 - DEPRECIJ~TION OF SIGNS SYSTH ~

Develop System total into expense by states from sp ecial analysis of company records. SYS TEI< I路;LLUNLINE

Allocate from System by states on the basis of Account 4311. SYSTLl LOCAL

Allocate from System by states on the basis of Account 4311.

Separate from System Mainline on state basis. STATE LOCAL

Separate from System Local on state basis. STATE INTRASTATE

MA I~LI N E

Allocate Account 4311. S TATE

II~TRA S TATE

fro~

State Mainline on the basis of

LOCAL

Consider Intrastate Local to be equal to State Local.

- 118 颅

AccounT 1269 - OTHER E0UIPMENT ACCOUNT S06-g--"-5tPRECI:""t:""'T-=-IO:::-;'f\";'::j;;';"O:':F OTHER EQUIPl"1Et\iT SYSTH ~

Develop System total into expense by states from special analysis of company records. SYSTEM MAINLINE Allocate from System by states on the basis of Account 4410. SYSTHIi LOCAL Allocate from System by states on the basis of Account 4410. STATE fiAINLINE Separate from System Mainline on state basis. STATE LOCAL Separate from System Local on state basis. STATE

I~TRASTATE

MAINLINE

Allocate from state Mainline on the basis of Account 4410. STATE INTRASTATE LOCAL Consider Intrastate Local to be equal to State Local.

- 119 足

ACCOUNT 5'091 - DEPRECI J.,TION A::JJUSTMENT

Consider Account 5091 as an ari justment to Account 5021. Allocate to various operations, i.e. 7 System Mainline, System Local, etc., on the basis of Account 5021.

- 120 足

ACgQ!JN~~Q QPEB~g-I~~&JbICENSES

ACCOUNT 5211 - STATE, CITY TAX - FUEL

AcCOUdT 5212 - FEOERf\ L EXCISE TAX - FUEL AND OIL SYSTEil D evelo~ System total into zone groups by bus groups. Use a9 p licable taxes ~er gallon and gallons developed for Accounts 4230 and 4240.

SYSTEM MAINLINE Separate mainline zone groups from System. SYSTEL'1 LOCAL Separate local zone groups from System. STATE j,'/\INLINE Separate from System Mainline using State Mainline bus miles of bus groups by zone groups. STATE LOC/\L Separate from System Local by zone groups on direct basis. (No local zones cross state lines.) STATE INTHASTATE MAINLINE Allocate from State Hainline by zone groups on the basis of equivalent passenger miles. STATE INTRASTATE LOCAL Consider Intrastate Local to be equal to State Local.

- 121 足

ACCOUNT 5220 - VEHICLE LICENSE AND REGISTl1ATION fEES

SYSTEiv; Develop System total into two categories: 1. Registration and weight fees by states

by zone groups from special analysis of company records.

2. California gross receipts tax from special analysis of cempany records.

SYSTE[vl MAINLINE Separate frem system by category on the following bases: 1. Separate mainline zone groups by states from System.

2. Applicable system mainline revenue as a percent of applicable system revenue.

SYSTEivl LOCAL Separate from system by category on the following bases: 1.

Separate local zone groups by states from System.

Difference of System and system mainline.

STATE iv\lUNLINE Separate Category 1 from System Mainline by zone groups on state basis. If applicable, separate Category 2 from System Mainline on state basis.

STATE LOCAL Separate from System Local on bases outlined under State Mainline.

STATE INTRASTATE MAINLINE Allocate Category 1 from Sta~e ~ainline by zone groups on the basis of equivalent passenger miles. Separate Category 2 from State ~ainline on the basis of a pplicable intrastate revenue as a percent of applicable total state revenue.

STATE INTRASTATE LOCAL Consider Intrastate Local to be equal to State Local. - 122 足

ACCOUNT 5231 - REAL ESTATE TAXES

SYSTEM

--Develop System total into three categories: 1. 2. 3.

Stations by states. System garages. General office building.

SYS TEiv\ i'JIAINLINE Allocate from System by category on the following bases: 1. 2. 3.

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

SYSTEM LOCAL Allocate from system by category on the following bases: 1. 2. 3.

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

STATE MAINLINE Separate Category 1 f rom System Mainline on state 足 basis. Allocate Categories 2 and 3 from System Il.'l ainline on bases outlined under System Mainline. STATE LOCAL Allocate from System Local on bases outlined under State iViainline.

A: locate fr om State Mainline by category on the follovving bases: 1. 2. 3.

Intr a state r'\ ainline Dass e nc: ers. Accounts 4140 and 4150. ~ Account 4600.

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

- 123 足

ACCOUNT 5232 - PERSONAL PROPERTY TAX

Develop System total into three categories: 1. 2. 3.

Stations by states. System garages. Buses by states by zone groups.

SYSTElii NIAINLINE Allocate from System by category on the following bases:

1. 2. 3.

Difference of System and System Local. Accounts 4140 and 4150. iJlainline zone groups by states.

SYSTEIvi LOCAL Allocate from System by cate gory on the following ba se s : 1. 2. 3.

Station overheads by states by stations. Accounts 4140 and 4150. Mainline zone groups by states.

STATE MAINLINE Allocate from System Mainline by category on the follo wing bases: 1. 2. 3.

By states by stations. Accounts 4140 and 4150. Account 1221.

Allocate from System Local by category on the following bases: 1. 2. 3. STATE INTRASTATE

By states by stations. Account s 4140 a nd 4150. By zone groups on d irect basis. ~ A I N LINE

Allocate from State Liainlin e by cate gory on the following bases: 1. 2. 3.

Intrastate mainline pa ssen gers. Accounts 4140 and 4150. Account 1221.

STATE INTRASTATE LOCAL Local.

Consi d er Intrastate Local to be equal to State - 124 足

ACCOUUT 5241 - SOCIAL SECUHITY TAX - FEDERAL ACCOUNT 5242 - SOCIAL SECUHITY TAX - STATE

Develop System total into three categories from special analysis of company operations prorating to each category expense not applicable to any of the three categories: 1.

2. 3.

Maintenance employees. Transportation employees by states. Station employees by states.

SYSTEM MAINLINE Allocate from System by category on the following bases: 1.

2. 3.

Account 4142. Account 4220 by states. Account 4311 by states.

SYSTB:\ LOCAL Allocate from System by category on the bases out足 lined under System Mainline.

Allocate from System Mainline by category on the following bases: 1.

2. 3.

Account 4142. By states. By states.

STATE LOCAL Allocate from System Local on bases outlined under State Mainline. STATE INTRASTATE MA INLINE Allocate from StClte lllainline by category on the following bases: 1. 2. 3.

Account 4142. Account 4220. Account 4311.

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

- 125 足

ACCOUNT 5252 - FEDERAL EXCISE TAX

SYSTEM Develop System total into uniform cost per system 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.

- 126 足 -

- -

ACCOUNT 5253 - CORPORATION TAX

SYSTEM Develop System total into amounts applicable to each state. (California franchise tax is removed from this account and treated as a part of income taxes.) SYSTEM MAINLINE Separate from System by states on the basis of main足 line bus miles. SYSTEM LOCAL Separate from System by states on the basis of local bus miles. STATE MAINLINE Separate from System Mainline on state basis. STATE LOCAL Separate from System Local on state basis. 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.

- 127 足

ACCOUNT 5259 - OTHER TAX

SYSTEM Separate California franchise tax from System total and treat as an income tax. Develop remainder of account into three categories from special study of company operations. 1. San Francisco city seat tax applicable to local eperations. 2. San Francisco city seat tax applicable to California mainline operations. 3. Other. SYSTEM MAINLINE Separate by category on the following bases: 1. Not applicable. 2. 100% to System Mainline. 3. System Mainline bus miles as a percent of System bus miles. SYS TEM LOCAL Separate by category on the following bases: 1. 100% to System Local. 2. Not applicable. 3. System Local bus miles as a percent of System bus miles. STATE MAINLINE Separate by category on the following bases: 1. Not applicable. 2. 100% to California mainline. 3. State mainline bus miles as a percent of System Mainline bus miles. STATE LOCAL Separate by category on the following bases: 1. 100% to California local. 2. Not applicable. 3. State Local bus miles as a percent of System Local bus miles. STATE INTRASTATE MAINLINE Allocate by category on the following bases: l. Not applicable. 2. State Intrastate mainline equivalent passenger miles. 3. State Intrastate mainline equivalent passenger miles. STATE INTRASTATE LOCAL

Consider Intrastate Lecal to be equal to State Locale - 128

~~til_21Q.Q

OPERATING RENTS-NET

~----------

ACCOUNT 5310 - EQUIPt'1ENT RENTS - DEBIT ACCOUNT 5350 - EQUIPMENT RENT-S---CREDIT

SYSTEM Develop System total into net credit f~r following items based on excess mainline bus miles ~perated by com足 pany:

1. 2. 3. 4.

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

SYS TEM MAINLINE Consider System Mainline to be equal to System. SYS TEM LoeA L Consider none of this account applicable to local operations. STATE MAINLINE Allocate from System Mainline by category on the following bases: 1.

2. 3.

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.

- 12') 足

ACCOUNT 5321 - OTHER OPERATING RENTAL - DEBIT足

SHOP AND GARAGE ACCOUNT 5371 - SUBLEASE RENTAL INCOME 足 SHOP AND GARAGE /

Consider 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

OPF ~Li\ TING HENTAL STATION ACCOUNT 5340 - JOINT FACILITY RENTS AECOOOS372 - SUELEASE RENTAL INCOME ACCOUNT 5390 - JOINT FACILITY RENTS -

SYSTEM

532~

- OTHER

- DEBIT 足 DEBIT - STATION CREDIT

Develop System total into three categories: 1. 2. 3.

Stations by states. System garages. System general office.

SYSTEM MAINLINE Allocate bases: 1. 2. 3.

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

SYSTEM LOCP.L Allocate bases: 1. 2. 3.

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

STATE NtAINLINE Separate Category 1 from System Mainline on state basis. Allocate Categories 2 and 3 from System Mainline on the following bases: 2. 3.

Accounts 4140 and 4150. 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. 3.

STATE INTRASTATE

Accounts 4140 and 4150. Account 4600. N~INLINE

Allocate from State Mainline by category on the following bases: 1. Intrastate Mainline passengers. 2. Accounts 4140 and 4150. 3. Account 4600.

STATE INTRASTATE LOCAL Consider Intrastate Local to be equal to State Local. - 131 足

ACCOUNT 5323 - OTHER OPERATING RENT - DEBIT 足 AUTOS AND SERVICE CARS

Consider this account as an overhead to operating and maintenance expenses. Allocate to various operations, i.e., System Mainline, System Local, etc., on the basis of Accounts 4100 and 450~ inclusive.

- 132 足 - - -

ACCOUNT 5329 - OTHER OPERATING RENT - DEBIT 足 OTHER {GENERAL OFFICE BUILDING)

Consider this account as an overhead to operating and maintenance expense. Allocate to various operations, i.e., System Mainline, System Local, etc., on the basis of Accounts 4100 and 450~ inclusive.

- 133 足

ACCOUNT 5360 - RENT FROM OWNED LAND AND STRUCTURES

SYSTEM Develop System total into three categories: 1. Stations by states. 2. System garages~ 3. General Office.

SYSTEM MAINLINE Allocate from System by category on the

following bases:

1. 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 depreciation in Account 5011. 3. Account 4600. STATE WAINLINE Separate Category 1 from System Mainline on state basis. Allocate Category 2 from System Mainline on the basis of State Mainline shop and garage depreciation 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 Account 5011 and Category 3 on Account 4600. STATE INTRASTATE

N~INLINE

Allocate Categories 1 and 2 from State Mainline on the basis of applicable depreciation in Account 5011 and Category 3 on Account 4600. STATE INTRASTATE LOCAL Consider Intrastate Local to be equal to State Local. - 134 足

6££Q!l~T

1100

M~IsBI61~ SUEPLIg~

ACCOUNT 1100 - lVIATERIAL AND SUPPLIES

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

- 135 足

~~-L.1ZQQ 1.~s:'搂' Tt路liENT

ACCOUNT 1291 - UNFINISHED CONSTRUCTION

From a special analysis of company records, distribute Account 1291 to the various other applicable 1200 accounts and separate or allocate accordingly.

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

- 136 足

GLOSSARY

ACTUAL USE: The exclusive use of a service or function by a given type of traffic. A~LOCATION:

The distribution of a quantity to the various types of traffic or functions to which it pertains through the use of statistics adjusted for relative use. BUS BILL: A waybill or form used for identification of an express shipment. 12IRECT: Not requiring allocation by reason of being used exclusively by a particular type of traffic. PIVISION: (1) One of the four affiliated operations of The Greyhound Corporation. (See map - Page 5.) (2) An operational area of Western Greyhound Lines the limits of which are determined by the extent of jurisdiction held by its designated supervisorsc (See map - Page 13.) DRIVER TRIP: The whole or part of a scheduled bus trip completed by a driver during a single day's assignment. DUPLI~ATE

STATE PASSENGER COUNT:

Recorded passengers served by Western Greyhound are maintained by system total and by state totals.

The

system total for a given period reflects all passengers - 137 足

served on each zone of operation.

The state totals

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

The addition of all state

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 MILE$: 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 factor 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

~'Jestern

Greyhound Lines over the

routes of other Greyhound Corporation divisions and non-affiliated connecting carriers and the bus miles operated on the routes of VJestern 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

EXPRES.~ :

Packages and bundles of limited size (other than articles checked by passengers) transported by Western 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 fluctuations in volume of operation; costs associated with the dedication of a bus to provide service. GENERAL SERVICE: Bus operations serving all certificated points along a given route. +NTERLINE

PASSENG~R:

One whose trip involves travel over the lines of other Greyhound divisions or connecting carriers in addition to the lines of Western Greyhound. INTERSTATE: Between two or more states or provinces. INTRASTATE: Within 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 area of which is generally within a metropolitan area.

- 139 足

MAINLINE:

All regular operations other than those classified as local.

!:DSSENGER MILES: The product of a total number of passengers and their average length of ride.

RELATIVE USE: The measurable use made of a service or function by a given type of traffic where the service or function is used in common by more than one type of traffic.

REVENUE EQUIPMENT: Motor coaches and their appurtenances such as fare collection boxes.

SEAT MILE?: The product of the number of bus miles operated and the weighted average number of seats per bus.

gEftRATION.: (1) The end product of all separation and allocation procedures. (2) The distribution of a quantity to the various types of traffic or functions to which it pertains through the use of unadjusted statistics.

SYSTEM: The operation of Western Greyhound Lines considered in its entirety including the whole geographical scope of its operations.

- 140 足

TICKET FLOAT:

The difference between the value of all of the tickets sold during a specific period and the value of all the tickets lifted during the same period.

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 specifically for use in local or suburban operations.

TRANSFER PASSENGER: A passenger using more than one zone of Western Greyhound's operation in order to complete a trip.

TURNBACK 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 fluctuations in volume of operations or costs associated with the movement of a bus in service.

- 141 足

A~ PO lEtt

CALIFORNIA PUBLIC UTILITIES COMMISSION

TRANSPORTATION DIVISION

ENGINEERI NG ECONOMICS BRANCH

PASS ENGER SECTION

* * * PROPOSED

SEPARATION AND ALLOCATION PROC EDURES

.EQB WESTERN GREYHOUND LI NES (A DIVISION OF THE GREYHOUND CORPO RATI O~ )

'* '* * * * I

Sa n Fr a ncisco, California

April 19, 1961

J /