Greyhound Lines Fare Increase Request for California Interstate Fares

Page 1

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


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