CALIFORNIA PUBLIC UTILITIES CONHISSION TRANSPORTATION DIVISION ENGINEERING ECONOMICS BRANCH pASS~NGER SECTION
~.NGINEERING-ECONOHIC
REPORT
SHOirfING
RESULTS OF OPERATIONS
OF
THE GREYHOUND CORPORATION
(lrVESTERN GR~HOUND LINES DmsICN)
FOR THE
YEAR ENDED NARCH 31, 1960
SYSTEM
CALIFORNIA
CALIFORNIA INTRASTATE
APPLICATION NO. 40057 (FIRST AHENDMENT)足
San Francisco, California August 22, 1960
Albert C. Porter Associate Transportation Engineer
v¥'ES'l'E;Ri~ GRtYtiOUi~D
APPLICATION NO.
40057
LIEZS (FIRsr AMENDMENT)
Introduction By amended Application No.
40051,
filed July ll, 1960, Western
Greyhound Lines proposes to increase California intrastate passenger fares and express rates on an interim basis as well as a final basis.
The purpose
of this exhibit is to shaw the results of operatiolts under present fares and under interiJn request which pro po ses to increase passenger fares by approXi mately three to fifteen percent for distances of 250 mile s and over and express rates in general by approximately twenty-five percent. Historical ResUlts of Operations-§Ystem Table III beginning on page 3 contains Western Greyhound Lines' recorded system results of operations for the year ended March
.31,
1960.
Also
shown in this table are the system results of operations adjusted for the following five items: 1. Dues and donations in Account 4656. 2. Accounts 5021 and 5091, Motor Coach Depreciation and Depreciation Adjustment to reflect the Commission ste.ff's method of ranaining life depreciation. 3. California Franchise Tax accrual ranoved from Account 5259, recalculated on a current basis and included as a part of income taxes.
4. Accounts 5.310
and
5350,
Equipment Rents, adjusted to reflect
the staff r s method of incl uding in rate base only revenue _equip ment needed to operate applicant's system miles in lieu of revenue equipment owned.
5.
Adjustments to rate base corresponding to adjustments in Itans 2 and
4
above.
- .-
-
- ---
- --- - - - -
Historical Results of Operations - california and California Intrastate In addition to the adjusted system operating results for the histori足 cal period, Table III contains results of operations for the same period for applicant I s California Total and California Intrastate operations as allocated by the staff from the adjusted s.ystem operations.
The allocation method
employed follows a manual of separation and allocation procedures developed by the staff over the past year and a half with the full cooperation of the company.
With three exceptions the procedures used are similar to tho se used
by the staff for Exhibit 26A dated January 9, 1957 in Pacific Greyhound Lines l Application No. 38019.
The equivalent passenger mile method of allocating
transportation and maintenance expenaes has been refined to make use of punch_ card data processing techniques; station expense allocations are based on time and motion "studies conducted for California stations; and, all accounts except the 4600 group are allocated on an iridividual in lieu of a group basis. Pro Forma Results of Operations - California Intrastate Under Present and Proposed Interim Fares For purposes of the interim request of the instant application, the staff has made adjustments to the California Intrastate historical results of operations for certain known changes that have come aoout since the close of the historical period.
The most important of these are wage and salary adjust足
ments beginning March 1, 1960 and extending through various increases into the year 1962.
The effect of these changes
on the historical period are set forth
in Table II, Page 2, for two periods, a year beginning March 1, 1960 and a year beginning March 1, 1961. to
4蔵
The federal tax on diesel fuel was increased from
31足
on October 1, 1959 and would amount to an increase in expenses of
$S4,6M
1.f it had been in effect for the full historic?l period..
These changes
are mcorporated in a statement of adjusted California I.ntrastate historical
results of operation which is shown in Table I, Page 1, together with the results under the proposed interim fares and rates which would increase revenue by a net of $869,500 after adjustment for 10% diminution and for certain increases in expenses related to revenue.
The $869,500 consists
of net increases of $596,800 for passenger fares and $272,700 for express rates.
TABLE I
WESTERN GREYHOUND LINES
APPLICATION NO. 40057 (FIRST AMENDMENT)
ADJUSTED RESULTS OF OPERATIONS
FOR YEAR ENDED IVlARCH 31. 1960
CALIFORNIA INTRASTATE OPERATIONS
Present Fares
Item
Proposed Interim Fares
$31,292,900
Revenue
27,854.900
Operating Expenses
$ 3,438,000
Operating Income
$ 3,438,000
869,500
Net Revenue Increase - Interim Fares Wage Adjustments - Year Beginning 3-1-60 Federal Fuel Tax Ad justment
(771,900)
(771.900)
(54.600)
(54.600)
$ 2,611,500
$ 3,481,000
1,316,200
1.775,300
Net Operating Income
$ 1,295,300
$ 1,705,700
Rate Base
$14,545,300
$14,545,300
Adjusted Income Income Tax
Operating Ratio After Taxes
95.9%
94.7%
Rate of Return
. 8.9%
1107%
(Red Figure)
- 1 足
TABLE II WESTERN GREYHOUND LDJES ESTIMATED NET ADJUSTIqRNT TO EXPENSES OF HISTORICAL RESULTS OF OPERATIONS YEAR ENDED }']ARCH 31, 1960 FOR "VJAGE AND SALARY INCREASES GRANTED AFTER MARCH 1, 1960 CALH'ORNIA INTRASI'ATE OPERATIONS ...
:Acct. : : No.
Year Begirming :March 1 , 1960
:
Item
Year Beginning March 1, 1961
$437,400
$ 742,500
Drivers' Expenses
2,600
4,600
4311
Station Employees
.10?,100
175,) 00
4100
Maintenance Employees
129,100
264,300
4613
Office Employees
35,200
59,300
Non-Contract Employees
4JJ 2OO
43,200
46.52
Welfare Benefits
41,700
72,000
5240
Social Security Taxes
17,000
29,100
$808,300
$1»390,100
36,400
]6,400
$771,900
$1,353,700
4220
Drivers' Hages
4265
Subtotal Accrued During March 1960 Total Adjustment
- 2
TABLE III Sheet 1 of 13 WESTERN GREYHOUND LINES
RESULTS OF OPERATIONS
:Acct.: : No.
Item Bus Miles
3200 3210 3400 3600 3900
lwOO
4500 4600 5000 5200 5300
136,174,084 136,174,100
83,085,300
Operating Revenues Passenger ~68,278,890 $68,278,900 $40,621,300 $26,222,600 Special Bus 4,109,B30 4,109,bOO 2,B45,800 2,550,800 Express 4,326,394 4,326,400 1,618,100 1,471,000 729,400 Hisce11aneous Station Rev. 1,786,911 1,786,900 1,137,300 Other 698,213 698,200 492,300 319,100 Total
4100 4200 4300
Historical Year Ended March 31, 1960 Ledger : Adjusted: :California System System :California :Intrastate
$79,200,238 $79,200,200 $46,714,800 $31,292,900
Operating Expenses $ 9,443,172 ~p 9,443,200 $ 5,726,700 $ 4,022,800 Equip. Maint. & Garage Transportation 25,614,388 25,614,400 16,130,700 11,764,800 Station 8,906,701 8,906,700 4,919,800 3,485,000 Traffic and Advertising 2,643,392 2,643,400 1,620,000 1,055,900 Insurance and Safety 2,704,487 2,704,500 1,614,600 1,148,600 Administrative & General 5,617,084 5,607,200 3,414,800 2,445,000 Depreciation 4,254,843 3,746,000 2,187,100 1,525,700 Operating Taxes & Licenses 6,397,008 6(156,300 3,621,000 2,482,100 Operating Rents - Net (329,733) 237,700) (121,000) (75,000) Total
$65,251,342 $64,584,000 $39,113,700 $27,854,900
Operating Income
$13,948,896
State
.~
&
Federal Inc.Taxes
~~ 14,616,200
7 ,157 ,558-l~$ 7,427 ,500
$ 7,601,100 $ 3,438,000 ~~
3,878,200 ;$ 1,753,400
Net Operating Income
$ 6,791,338 :$ 7,188,700 $ 3,722,900 $ 1~684,600
Rate Base
$32,683,925 $37,464,000 :$21,228,000 $14,545,300
Operating Ratio after Taxes
91.4%
90.9%
92.CfJ,
94.6%
Rate of Return
20.8%
19.2%
17.5%
11.6%
(Red Figure) Calculated by P.U.C. Staff.
*
- 3 足
TABLE III
Sheet 2 of 1.3
WESTEF.N GREYHOUND 1.INES
OPERATING REVENUES
:Acct. t : No.
Historical Year Ended March 31, 1960 : Adjusted: : California: : : California: Intrastate: System ~stem
Ledger
Item
3200
Passenger Revenue
3210
Special Bus Revenue
3220
Baggage Revenue
3300
Mail Revenue
3400
Express Revenue
3500
Newspaper Revenue
$ 68,278,890 $ 68,278,900 $40,621,300 $26,222,600 4,109,830
4,109,800
2,845,800
2,550,800
26,797
26,800
15,800
9,600
168,027
168,000
1l3,500
68,900
4,326,394
4,326,400
1,618,100
1,471,000
340,070
340,100
250,000
165,000
344,399
344,400
229,400
150,100
1,442,512
1,442,500
907,900
579,300
163,319
163, ]00
1132 °00
752 600
$ 79,200,238 $ 79,200,200 $46,714,800
$31;~92~9CO
Miscellaneous Station Revenue 3601
Parcel and Baggage Storage
3609
other
3900
other Operating Revenue Total
- 4
TABLE III
Sheet .3 of 13 WESTERN Gt"9.EYHOUND LINES ACCOUNT 4l00-EQUIPMENT YiAINTd~NCE AND GARAGE EXPENSE
:Acct. : : No.
Historical Year Ended March 31, 1960 Ledger Adjusted :California System : System : Calif orma : Intrastate
Item
4141 4142 4143
Repairs to Revenue Equipment Material Hp5,005,796 $5,005,800 $3,039,100 Labor ) Accident 169,423 169,400 99,400
$2,143,200
4151 4152 4159
Servicing Reverrue Equipment Lubrication Washing & Cleaning Other
$
4160
4191 4196
4134 4135 4136 !.~139
54,900 555,500 32,000
37,500 410,900 20,200
1,695,900
990,100
667,400
Garage OvGrheads
1,592,567
1,592,600
973,100
689,000
102~4oo
72 2 500 (84,800)
&
16 7 2 571 J oint Garage Expense - Debi:t . Joint Garage Expense - Credit (195,988)
167,!600 (196 2 °°0)
$9,443,172 $9,443,200
Garage Overhead Detail Salaries $ 320,355 $ 320,400 Other 6,532 6,500 Repairs-Garage Equipment 46,200 46,234 Oper. & Maint.-Service Equip. 21,386 21,400 Repairs-Buildings & Grounds 35,294 35,300 Light, Heat, Power & tvater 84,084 84,100 Stores Salaries Stores & Transportation Exp. Misc. Garage Labor Misc. Supplies & Expense Total
$
1,695,887
Total 4111 4119 4121 4122 4128 4131
90,101 $ 90,100 862,800 862,834 54,981 55,000
Tubes
Tires
4110,20,30
$
66,900
211,301 59,004 717,620 90 ,!757
211,300 59,000 717,600 90~800
$1,592,567 $1,592,600
(Red Figure)
- 5
(119,800) ~~5, 726,700
$4,022,800
TABL~
III
Sheet 4 of 13 WESTERN GREYHOUND LINES
ACC0uiTT 4200 - TRANSPORTATION EXPENSE
Historical Year Ended March 31, 1960 Lerlger : Adjusted: : California System §ystem :California: Intrastate
:Acct. :
Item
: No.
4211
Supervision - Salaries
4219
Supervision - Other
4220
Drivers'Wages
4230
Fuel for Revenue Equip_
4240
Oil for Revenue Equip.
4250
Purchased Transportation
4262
Bridge Tolls
4263
Misc. Transportation Wages
4265
$ 1,384,442 $ 1,384,400 $ 1,000,200 $
133,239 20,091,732
133,200
753,200
96,200
72,400
20,091,800 12,594,300
9,214,500
2,801,964
2,802,000
1,608,700
1,095,900
92,667
92,700
55,500
39,200
233
200
100
100
384,735
384,700
342,300
303,000
4,362
4,400
2,800
1,800
Drivers' Expenses
523,884
523,900
3il,7oo
204,800
4266
Checking Service
22,878
22,900
14,000
9,600
4267
Air Conditioning Supplies
13,540
13,500
7,800
4,900
4268
Bus Supplies
129,147
129,100
78,700
53,800
4269
Other
31,565
31,600
18,400
11,600
$25,614,388 $25,614,400 $16,130,700
a 1l~164.800
Total
- 6
TABLE III Sheet 5 of 13
WESTERN GREYHOUND LINES ACCOtTl'JT 4300 - STATION EXPENSE
:Acct. : : No.
Historical Year Ended March 312 19bO Ledger California : Adjusted System : California: Intrastate S;tstem
.
Item
}~311
Salaries
4315
Light, Heat, Power & Water 179,386
179,400
94,000
62,700
4318
Other
266,753
266,800
172,200
114,900
4319
Repairs -Buildings & Equipment
198,044
198,000
119,7oo
79,900
4331
Commissions Paid
3,661,832
3,661,800
1,625,700
1,115,700
66,058
66,100
30,800
23,600
347,413
347,hoo
86,900
(709 z130)
(7 022 100 )
(,2821200)
.4332
$ 5,145,010
Other Expenses Allowed
4340
Interline Commissions Paid
4350
Interline Commissions Earned
uJ91
Joint Station Facilities-Dr. 32,137
4396
Joint Station Facilities-
, 280 2 802)
$ 5,145,000 $ 3,218,900 $ 2,114,700
32,100 ( 280 2 800)
(38 2 .200)
(26 2 50.9 )
Cr.
Total
$ 8,906,701
$ 8,906,700 $ 4,919,800 $ 3,485,000
(Red Figure)
- 7 足 --
- - - ----- - -
TABLE III Sheet 6 of 13
WESTERN GREYHOUND LlNES Ji.ccom~T 4400 - TRAFFIC AND ADVERTISING EXPENSE
:Acct. : : No.
Historical Year Ended March 31~ 1960 Ledger Adjusted Califo rnia : System : California: In路tra8tate: System
Item Traffic Solicitation
44ll
Salaries
4412
Expenses
$
541,137 $
541,100 $
111 J 192
333,300 $
220,000
111,200
68,500
45,200
41,553
41,600
26,000
17,400
1,663
1,700
1,100
700
28,773
28,800
18,000
12,100
Tariffs and Schedules 4431
Salaries
4432
Postage
4433
Printing Tariffs
4434
Printing Schedules
105,602
105,600
66,000
44,300
4440
Tickets & Baggage Checks
166,951
166,900
112,800
83,300
4450
other Traffic Expenses
169,098
1 69,100
103,500
66,800
4470
Adverti sing
1,477 ,423
1,477,400
890,800
566,100
Tctal
$ 2,643,392
$ 2,643,400 $ 1,620,000 $1,055,900
- 8 颅
- - - - --
TABlE III Shee t 7 of 13 ACCOU~~
:Acct. : : No.
WESTERN GREYHOUND LINES
4S00-INSURANCE AtID SAFETY EXPENSE
Historical Year Ended March 31, 1960 Ledger Adjusted : California System System : California : Intrastate
.
Item
4511
Claims & Ins. - Salaries
4515
Claims & Ins. - Expenses
21,081
21,100
l3,000
9,300
4516
Safety - Salaries
60,122
60,100
37,800
27,900
4519
Safety - Expenses
67,387
67,400
42,400
31,300
4520
P. L. & P. D.-Insurance
148,105
148,100
90,400
61,800
4531A
P. L. & P. D.-Self-Insurer
2,336,747
2,336,800
1,438,100
1,C25,100
453lB
P. L. & P. D.-Contingencies
4539
P. L. & P. D.-Other Expense
4541
~vorkrnen'
4546
Workmen's Comp.-Self Ins.
$
96,297
0;-9,871)
$
96,300
059,900)
$
59,300 $
(221.!500)
42,200
(157.1 900 )
13 103,149
103,100
8,100
5,700
66,374
66,400
58,000
41,500
4560
Baggage & Express-Loss & Damage 89,031
89,000
44,200
31,100
4570
Fire & Theft Insurance
65,386
65,400
38,200
26,100
4580
Other Insurance
10 2666
10,700
6 2600
4,500
$2,704,487
$2,704,500
Total
s Compo Ins.
(Red Figure)
- 9 足
$1,614,600 $ 1,148,600
TABLE III
Sheet 8 of 13 lrvTESTERN GREYHOlThTD LUiES ACCOUNT 4600-AD~ilNISTRATIVE & GENERAL
Historical Year Ended March 31, 1960 :Acct. : : No. 4611 4612 4613 4614 4616 4621 4623 4629 4631 4632 4633 4634 4639
Item
Administrative & General General Officers-Salary $ 60,352 $ 60,400 22,487 General Officers-Expenses 22,500 Acct'g Employees-Salaries 1,104,693 1,104,700 Other Gen'l Off.Emp.足 Salaries 123,077 123,100
Gen'l Off. Empl.-Expenses 19,141 19,100
Law Expenses-Salaries Lat-J Expenses-Fees & Ret. Law Expenses-Other
17,558 13,718 11,728
17,600
13,700
1l,700
General Office Supervision & Expense Stationery, Printing & Sup. 150,562 Postage ll,183 Light,Heat,Power & ~Jater 16,149 75,722 Tab. Mach. - Servo & Rent 130,148 Other
150,600
11,200
16,100
75,700
1)0,100
386,826 10,869
386,800
10,900
4640 4651
Communication Service Outside Auditing Expense
4652A 4652B 4652C 4655A 4655B 4656
2,072,756 Employee Welfare-Pension Employee Welfare-Group Ins. 793,972 Employee Welfare-Other (425) Purchase & Stores-Cash Disc. (E;I22) Purchase & Stores-Other 10,894 Other General Expenses 71,02)
4673 4680 4691 4696
Other Regulatory Comm.Exp. Uncollectible Revenues Joint Operating Exp.-Debit Joint Operating Exp.-Credit Total
51,461 13,000 462,419 (4,107)
$5,617,084
(Red Figure)
- 10 足
2,072,700
794,000
(400)
(8,100 )
10,900
61,100
51,500
13,000
462,400
(Ii;IOO)
$5,607 ,200
~p3,414,800
$2,445,000
:
TABLE III
Sheet 9 of 13 vlESTERN GREYHOUND LINES ACCOU1T SOOO-DEPRECIATION EXPENSE
Acct. : No.
Item
SOil
Structures
5021
Revenue Equipment
5031
Historical Year Ended March 312 1900 Ledger Adjusted : California: System System : California : Intrastate:
$ 366,082
" 366,100
.jJ)
s~ ',y
175,000
$ 118,700
3,746,316
3,108,600
1,860,900
1,301,200
Service Cars & Equip.
54,313
54,300
33,100
23,700
5041
Garage Equipment
32,006
32,000
19,600
13,900
5051
Furniture & Office Equip.
93,473
93,500
56,900
40,700
5062
Misc. Equipment - Signs
32,987
33,000
13,500
8,900
5060
Nisc. Equ.ipment -Other
1,577
1,600
100
100
5071
Improvements to Leased Prop.
81,393
81,400
42,700
28,800
5091
Depreciation Adjustments
(153,304)
(24 2500)
~ 14 2 700)
(10,300)
Total
~P4, 254, 843
- 11 足
~)3, 746,000
~~ 2, 187,100
$1,525,700
TABLE III Shee t 10 of 13 WESTERN GREYHOUND LINES
ACCOUNT 5200-OPERATING TAXES & LICENSES
:Acct.: : No.
Item
5211
Fuel & Oil - State & City
5212
Fuel & Oil - Federal
5220
Vehicle License & Reg.
5231
Historical Year Ended March 31z 19bO
California:
Adjusted Ledger Intrastate:
: California System System
.
$1,524,905 $1,524,900
$1,030,300
$
714,600
892,224
892,200
520,800
361,200
1,710,402
1,710,400
814,100
530,000
Real Estate
455,402
455,400
275,300
189,600
5232
Personal Property
211,456
211,500
167,100
11l,700
5241
Social Security-Federal
720,318
720,300
448,600
319,400
5242
Social Security-State
252,666
252,700
122,000
86,700
5252
Federal Excise Tax-Other
141,329
141,300
86,200
58,900
5259
Other
488 2 306
247,600
156,600
110 z00q
$6,397,008 $6,156,300
$3.,621 ,000
$2,482,100
Tot al
~~California
Taxes~~
Franchise Tax Removed and Included in Income TaxeS.
- 12 足 -
- - - -- -
TABLE III Sheet 11 of 13 WESTERN GREYHOUND LINES
ACCOUNT 5300-oPERATING RENTS-NET
:Acct. : : No.
Item
Historical Year Ended March 3I z I960 :California: Ledger : Adjusted System California :Intrastate: System :
.
5310
Equip. Rents - Debit
5321
Garage Rent
74,842
74,800
45,700
32,400
5322
Station Rent
218,148
218,100
158,700
112,900
5323
Autos & Service Cars
5329
other Rent
49,547
49,500
30,100
21,600
5340
Joint Facility Rents-Debit
29,519
29,500
15,300
10,800
5350
Equip. Rents - Credit
5360
Rent from Owned Land & Structures
$1,091,974 $
$
$
( 1 2413,415)
( 229,!300 )
(138 2600)
(97 2 800)
(249,883)
(249,900)
(1)9,800)
(106 290O)
5371
Garage Rental Income
(J2!400)
(32 02 400)
(19 2 800)
(14!00O)
5372
Station Rental Income
( 73 2 44 1 )
( 73 2 400)
(38 2 900)
(24,300)
5390
Joint Facility Rents-Credit
(24})24)
(24l>00)
(13,700)
(9,t700)
$ (12i,!000) $
(7),!OOO)
Total
$ (329 z733) $ (237 2 700)
(Red Figure)
- 13 足 -
-
-
-
- ----
TABLE III Sheet 12 of 13 HESTERN GREYHOUND LINES ACCOUNT 1200-INVESTMENT AND RATE BASE
Acct. : No.
Item
Historical Year Ended March 31, 1900 :Ca1ifornia: Ledger : Adjusted :Intrastate: : California S;zstem : S;zstem
1201
Land & Land Rights
1211
Structures
10,690,216
10,690,200
5,240,900
3,559,200
1221
Revenue Equipment
50,326,145
48,694,700
31,822,300
23,876,900
1231
Service Cars & Equipment
250,320
250,300
152,400
109,100
1241
Shop & Garage Equipment
742,517
742,500
453,700
321,200
1251
Furniture & Office Equipment 1,127,378
1,127,400
686,600
491,600
1262
Signs
469,854
469,900
249,900
164,200
1269
Other Equipment
64,662
64,700
20,200
13,300
1271
Impr. to Leased Prop.
1,612,399
1,612,400
803,700
556,700
1291
Unfinished Construction
701,!616
396 ,!800
241~200
151,!100
Total 2500
Reserve (Shest 13) InYestment Less Reserve Materials & Supplies Rate Base
$,',5,240,406 $ '5,240,400 $ ",2,873,900 $ 1,9 26 ,700
$71,225,513 $69,289,300 $42,544,800 $31,170,000 39~115,027
3 2 ,378,!700
21,664,300
$32,110,486 $36,910,600
1~20,880,500
$14,300,700
573,!4 00
347,500
244,600
573 1 439
$32,683,925 $37,484,000 (p21,228,ooo
- 14 足
16,869,!300
$14,545,300
TABLE III Sheet 13 of 13 WESTERN GREYHOUND LINES ACCOUNT 2500 - DEPRECIATION RESER\~
:Acct. : : No.
Historical Year Ended March 31, 19bO :California : Adjusted Ledger S;)Tstem : California :Intrastate System
Item
2511
Structures
2521
Revenue Equipment
2531
Service Cars & Equip.
148,012
2541
Shop & Garage Equipment
2551
$ 3,707,886 $ 3,707,900 32,534,621 25,798,900
::~
1,797,500 $ 1,218,300 18,271,400
14,533,600
148,000
90,100
64,500
621,440
621,400
379,700
268,800
Furniture & Office Equip.
782,007
782,000
476,200
341,000
2562
Signs
377 ,518
377 ~500
220,400
144,800
2569
Other Equipment
58,981
59,000
18,400
12,100
2571
Improvements to Lease Prop.
884,562
884~000
410,!600
286,!200
Total
$39,115,027 $32,378,700 $21,664,300 $:16,869,300
- 15 足