Greyhound Lines Fare Increase Request for California Interstate Fares

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)

San Francisco, California Albert C. Porter August 22, 1960 Associate Transportation Engineer

v¥'ES'l'E;Ri~ GRtYtiOUi~D LIEZS APPLICATION NO. 40057 (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 propo 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 including 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

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

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. The federal tax on diesel fuel was increased from 31

to 4¢ 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

Proposed Present Interim

Item Fares Fares

Revenue

Operating Expenses

Operating Income

Net Revenue Increase - Interim Fares

Wage Adjustments - Year Beginning 3-1-60

Federal Fuel Tax Adjustment

Adjusted Income

Income Tax

Net Operating Income

Rate Base

Operating Ratio After Taxes

Rate of Return

(Red Figure)

$31,292,900

27,854.900

$ 3,438,000

(771,900)

(54.600)

$ 2,611,500

1,316,200

$ 1,295,300

$14,545,300

95.9%

. 8.9%

$ 3,438,000

869,500

(771.900)

(54.600)

$ 3,481,000

1.775,300

$ 1,705,700

$14,545,300

94.7%

1107%

- 1

TABLE IIWESTERN 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.

4220

4265

4311

4100

4613

46.52

5240

Item

Drivers' Hages

Drivers' Expenses

Station Employees

Maintenance Employees

Office Employees

Non-Contract Employees

Welfare Benefits

Social Security Taxes

Subtotal

Accrued During March 1960

Total Adjustment

Year Year : Begirming :March 1 , 1960

Beginning March 1, 1961

$437,400 $ 742,500

2,600 4,600

.10?,100 175,) 00

129,100 264,300

35,200 59,300

4JJ 2OO 43,200

41,700 72,000

17,000 29,100

$808,300 $1»390,100

36,400 ]6,400

$771,900 $1,353,700

- 2

TABLE III Sheet 1 of 13

WESTERN GREYHOUND LINES RESULTS OF OPERATIONS

Historical Year Ended March 31, 1960 :Acct.: Ledger : Adjusted: :California : No. Item System System :California :Intrastate

Bus Miles 136,174,084 136,174,100 83,085,300

3200 3210 3400 3600 3900

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 Hisce11aneous Station Rev. 1,786,911 1,786,900 1,137,300 729,400 Other 698,213 698,200 492,300 319,100

Total $79,200,238 $79,200,200 $46,714,800 $31,292,900

4100 4200 4300 lwOO 4500 4600 5000 5200 5300

Operating Expenses Equip. Maint. & Garage Transportation Station Traffic and Advertising Insurance and Safety Administrative &General Depreciation Operating Taxes & Licenses Operating Rents - Net

$ 9,443,172 ~p 9,443,200 $ 5,726,700 $ 4,022,800 25,614,388 25,614,400 16,130,700 11,764,800 8,906,701 8,906,700 4,919,800 3,485,000 2,643,392 2,643,400 1,620,000 1,055,900 2,704,487 2,704,500 1,614,600 1,148,600 5,617,084 5,607,200 3,414,800 2,445,000 4,254,843 3,746,000 2,187,100 1,525,700 6,397,008 6(156,300 3,621,000 2,482,100

(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 ~~14,616,200 $ 7,601,100 $ 3,438,000

State & Federal Inc.Taxes .~ 7 ,157 ,558-l~$ 7,427 ,500 ~~ 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

TABLE III Sheet 2 of 1.3

WESTEF.N GREYHOUND 1.INES OPERATING REVENUES

Historical Year Ended March 31, 1960 :Acct. t Ledger : Adjusted: : California: : No. Item System : ~stem : California: Intrastate:

3200 Passenger Revenue $ 68,278,890 $ 68,278,900 $40,621,300 $26,222,600

3210 Special Bus Revenue 4,109,830 4,109,800 2,845,800 2,550,800

3220 Baggage Revenue 26,797 26,800 15,800 9,600

3300 Mail Revenue 168,027 168,000 1l3,500 68,900

3400 Express Revenue 4,326,394 4,326,400 1,618,100 1,471,000

3500 Newspaper Revenue 340,070 340,100 250,000 165,000

Miscellaneous Station Revenue

3601 Parcel and Baggage Storage 344,399 344,400 229,400 150,100

3609 other 1,442,512 1,442,500 907,900 579,300

3900 other Operating Revenue 163,319 163, ]00 1132°00 752600

Total $ 79,200,238 $ 79,200,200 $46,714,800 $31;~92~9CO

- 4

TABLE III Sheet .3 of 13

ACCOUNT WESTERN Gt"9.EYHOUND LINES

4l00-EQUIPMENT YiAINTd~NCE AND GARAGE EXPENSE

:Acct. : : No. Item

Historical Year Ended March 31, 1960 Ledger Adjusted :California System : System : Califorma : Intrastate

Repairs to Revenue Equipment 4141 4142

Material Labor

Hp5,005,796 $5,005,800 )

$3,039,100 $2,143,200

4143 Accident 169,423 169,400 99,400 66,900

Servicing Reverrue Equipment 4151 Lubrication $ 90,101 $ 90,100 $ 54,900 $ 37,500 4152 Washing & Cleaning 862,834 862,800 555,500 410,900 4159 Other 54,981 55,000 32,000 20,200

4160 Tires & Tubes 1,695,887 1,695,900 990,100 667,400

4110,20,30 Garage OvGrheads 1,592,567 1,592,600 973,100 689,000

4191 4196

J oint Garage Expense Joint Garage Expense

- Debi:t . - Credit

1672571 (195,988)

167,!600 (196 2 °°0)

102~4oo (119,800)

72 2500 (84,800)

Total $9,443,172 $9,443,200 ~~5, 726,700 $4,022,800

Garage Overhead Detail 4111 Salaries $ 320,355 $ 320,400 4119 Other 6,532 6,500 4121 Repairs-Garage Equipment 46,234 46,200 4122 Oper. & Maint.-Service Equip. 21,386 21,400 4128 Repairs-Buildings & Grounds 35,294 35,300 4131 Light, Heat, Power & tvater 84,084 84,100

4134 Stores Salaries 211,301 211,300 4135 Stores & Transportation Exp. 59,004 59,000 4136 Misc. Garage Labor 717,620 717,600 !.~139 Misc. Supplies & Expense 90,!757 90~800

Total $1,592,567 $1,592,600

(Red Figure)

- 5

TABL~ III Sheet 4 of 13

WESTERN GREYHOUND LINES ACC0uiTT 4200 - TRANSPORTATION EXPENSE

:Acct. : : No.

4211

4219

4220

4230

4240

4250

4262

4263

4265

4266

4267

4268

4269

Historical Year Ended March 31, 1960

Item Lerlger : Adjusted: : California System §ystem :California: Intrastate

Supervision - Salaries $ 1,384,442 $ 1,384,400 $ 1,000,200 $

Supervision - Other 133,239 133,200 96,200

Drivers'Wages 20,091,732 20,091,800 12,594,300

Fuel for Revenue Equip_ 2,801,964 2,802,000 1,608,700

Oil for Revenue Equip. 92,667 92,700 55,500

Purchased Transportation 233 200 100

Bridge Tolls 384,735 384,700 342,300

Misc. Transportation Wages 4,362 4,400 2,800

Drivers' Expenses 523,884 523,900 3il,7oo

Checking Service 22,878 22,900 14,000

Air Conditioning Supplies 13,540 13,500 7,800

Bus Supplies 129,147 129,100 78,700

Other 31,565 31,600 18,400

753,200

72,400

9,214,500

1,095,900

39,200

100

303,000

1,800

204,800

9,600

4,900

53,800

11,600

Total $25,614,388 $25,614,400 $16,130,700 a1l~164.800

- 6

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


WESTERN GREYHOUND LINES ACCOtTl'JT 4300 - STATION EXPENSE

Historical Year Ended March 312 19bO :Acct. : Ledger : Adjusted .. California : No. Item S;tstem System : California: Intrastate

}~311 Salaries $ 5,145,010 $ 5,145,000 $ 3,218,900 $ 2,114,700

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 & 198,044 198,000 119,7oo 79,900 Equipment

4331 Commissions Paid 3,661,832 3,661,800 1,625,700 1,115,700

.4332 Other Expenses Allowed 66,058 66,100 30,800 23,600

4340 Interline Commissions Paid 347,413 347,hoo 86,900

4350 Interline Commissions (709 z130) (7022100 ) (,2821200)Earned

uJ91 Joint Station Facilities-Dr. 32,137 32,100

4396 Joint Station Facilities- , 280 2 802) ( 280 2 800) (38 2 .200) (26 250.9 ) Cr.

$ 8,906,701 $ 8,906,700 $ 4,919,800 $ 3,485,000Total

(Red Figure)

- 7

---- --


WESTERN GREYHOUND LlNES Ji.ccom~T 4400 - TRAFFIC AND ADVERTISING EXPENSE

Historical Year Ended March 31~ 1960 :Acct. : Ledger Adjusted Califo rnia : : No. Item System System :California: In·tra8tate:

$ 541,137 $ 541,100 $ 333,300 $ 220,000

111 J 192 111,200 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

105,602 105,600 66,000 44,300

166,951 166,900 112,800 83,300

169,098 169,100 103,500 66,800

1,477 ,423 1,477,400 890,800 566,100

44ll

4412

4431

4432

4433

4434

4440

4450

4470

Traffic Solicitation

Salaries

Expenses

Tariffs and Schedules

Salaries

Postage

Printing Tariffs

Printing Schedules

Tickets & Baggage Checks

other Traffic Expenses

Adverti sing

Tctal $ 2,643,392 $ 2,643,400 $ 1,620,000 $1,055,900

- 8

TABlE III Sheet 7 of 13

WESTERN GREYHOUND LINES ACCOU~~ 4S00-INSURANCE AtID SAFETY EXPENSE

:Acct. : : No. Item

Historical Year Ended March 31, 1960 Ledger Adjusted : California System System : California : Intrastate..

4511 Claims & Ins. - Salaries $ 96,297 $ 96,300 $ 59,300 $ 42,200

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 0;-9,871) 059,900) (221.!500) (157.1 900 )

4539 P. L. & P. D.-Other Expense 13

4541 ~vorkrnen' s Compo Ins. 103,149 103,100 8,100 5,700

4546 Workmen's Comp.-Self Ins. 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 102666 10,700 62600 4,500

Total $2,704,487 $2,704,500 $1,614,600 $ 1,148,600

(Red Figure)

- 9


lrvTESTERN GREYHOlThTD LUiES ACCOUNT 4600-AD~ilNISTRATIVE & GENERAL

Historical Year Ended March 31, 1960 : :Acct. : : No. Item

4611 4612 4613 4614

4616

4621 4623 4629

4631 4632 4633 4634 4639

4640 4651

4652A 4652B 4652C 4655A 4655B 4656

4673 4680 4691 4696

Administrative & General General Officers-Salary General Officers-Expenses Acct'g Employees-Salaries Other Gen'l Off.Emp.

Salaries Gen'l Off. Empl.-Expenses

Law Expenses-Salaries Lat-J Expenses-Fees & Ret. Law Expenses-Other

General Office Supervision & Expense Stationery, Printing & Sup. 150,562

(Red Figure)

Postage Light,Heat,Power & ~Jater Tab. Mach. - Servo &Rent Other

Communication Service Outside Auditing Expense

Employee Welfare-Pension Employee Welfare-Group Ins. Employee Welfare-Other Purchase & Stores-Cash Disc. Purchase & Stores-Other Other General Expenses

Other Regulatory Comm.Exp. Uncollectible Revenues Joint Operating Exp.-Debit Joint Operating Exp.-Credit

$ 60,352 22,487

1,104,693

123,077 19,141

17,558 13,718 11,728

ll,183 16,149 75,722

130,148

386,826 10,869

2,072,756 793,972

(425) (E;I22) 10,894 71,02)

51,461 13,000

462,419 (4,107)

Total $5,617,084

$ 60,400 22,500

1,104,700

123,100 19,100

17,600 13,700 1l,700

150,600 11,200 16,100 75,700

1)0,100

386,800 10,900

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

- 10


vlESTERN GREYHOUND LINES ACCOU1T SOOO-DEPRECIATION EXPENSE

Acct. : No. Item

Historical Year Ended March 312 1900 Ledger Adjusted : California: System System : California : Intrastate:

SOil Structures $ 366,082 " .jJ) 366,100 s~',y 175,000 $ 118,700

5021 Revenue Equipment 3,746,316 3,108,600 1,860,900 1,301,200

5031 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) ~ 142700) (10,300)

Total ~P4, 254, 843 ~)3, 746,000 ~~ 2,187,100 $1,525,700

- 11

- - ---- -

TABLE III Shee t 10 of 13

WESTERN GREYHOUND LINES ACCOUNT 5200-OPERATING TAXES & LICENSES

Historical Year Ended March 31z 19bO :Acct.: Ledger .. Adjusted California: : No. Item System System : California Intrastate:

5211 Fuel & Oil - State & City $1,524,905 $1,524,900 $1,030,300 $ 714,600

5212 Fuel & Oil - Federal 892,224 892,200 520,800 361,200

5220 Vehicle License & Reg. 1,710,402 1,710,400 814,100 530,000

5231 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 Taxes~~ 488 2306 247,600 156,600 110z00q

Tot al $6,397,008 $6,156,300 $3.,621,000 $2,482,100

~~California Franchise Tax Removed and Included in Income TaxeS.

- 12

- - - - - ----


WESTERN GREYHOUND LINES ACCOUNT 5300-oPERATING RENTS-NET

Historical Year Ended March 3Iz I960 :Acct. : Ledger : Adjusted :California: : No. Item System .. System : California :Intrastate:

5310 Equip. Rents - Debit $1,091,974 $ $ $

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 ( 12413,415) ( 229,!300) (1382600) (97 2800)

5360 Rent from Owned Land & Structures (249,883) (249,900) (1)9,800) (106 290O)

5371 Garage Rental Income (J2!400) (3202 400) (192800) (14!00O)

5372 Station Rental Income ( 73 2441) ( 73 2400) (382900) (24,300)

5390 Joint Facility Rents-Credit (24})24) (24l>00) (13,700) (9,t700)

Total $ (329 z733) $ (237 2700) $ (12i,!000) $ (7),!OOO)

(Red Figure)

- 13


HESTERN GREYHOUND LINES ACCOUNT 1200-INVESTMENT AND RATE BASE

Historical Year Ended March 31, 1900 Acct. : Ledger : Adjusted :Ca1ifornia:

No. Item S;zstem : S;zstem : California :Intrastate:

1201 Land & Land Rights $,',5,240,406 $ '5,240,400 $ ",2,873,900 $ 1,926 ,700

1211 Structures 10,690,216 10,690,200 5,240,900 3,559,200


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 $71,225,513 $69,289,300 $42,544,800 $31,170,000

2500 Reserve (Shest 13) 39~115,027 32,378,!700 21,664,300 16,869,!300

InYestment Less Reserve $32,110,486 $36,910,600 1~20,880,500 $14,300,700

Materials & Supplies 573 1439 573,!400 347,500 244,600

Rate Base $32,683,925 $37,484,000 (p21,228,ooo $14,545,300

- 14


WESTERN GREYHOUND LINES ACCOUNT 2500 - DEPRECIATION RESER\~

Historical Year Ended March 31, 19bO :Acct. : Ledger : Adjusted :California : No. Item System S;)Tstem : California :Intrastate

2511 Structures $ 3,707,886 $ 3,707,900 ::~ 1,797,500 $ 1,218,300


2531 Service Cars &Equip. 148,012 148,000 90,100 64,500

2541 Shop & Garage Equipment 621,440 621,400 379,700 268,800

2551 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

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Documents

Greyhound Lines Fare Increase Request for California Interstate Fares