Los Angeles Transit Street Car Lines to Motor Coach 1954
description
Transcript of Los Angeles Transit Street Car Lines to Motor Coach 1954
OALIFORNIA PUBLIC UTILITIES COW~ISSION
TRANSPORTATION DIVISION ENGINEERING SECTION shy
MY WATER AND MOTOR COACH TRANSPORT
LOS ANGELES TRANEiIT LINES APPLICATION NO 35601 - TO INCREASE FARES
APPLICATION NO 35728 - TO CONVERT CERTAIN STREET CAR LINES TO 14OTOR COACH I ETC
n~GlNEERING-ECONOMIC PXPORT SHOWING ESTIMATED RESULTS OF OPERATION
FOR THE l~~MONTH PERIOD ENDING OCTOBER 31 1955 UNDER PriESENT AND PROPOSED FARE STRUCTURES
~ UNIlFJl PRESENT OPERATIONS
AND PPOPOSED MOTOR COACH SUBSTITUTION
John L Pearson Timothy J Canty Senior Transportation EngineerSupervising Transportation Engineer
San Francisco CaliIol~ia Oc t ob e r 5 1954
MEMORANDUM
In the preparation of this report Transportation
Engineers of the staff participated as follows
Paul A Burket Assistant Engineer General Data
George H Morrison Assistant Engineer Operating Expenses
Albert c Porter Assistant Engineer Rate Base and Depreciation Expense
Edward P Thurban Assistant Engineer Taxes
Donald J Warth Assistant Engineer General Data
LOS AJGSL~S TRA~lSIT LIl-RS RPPLIC~TION NOS)5601 AND raquo728
TABLE OF CIJNTNTS
Tit 1 e Page No
Chart 1 - Transit Passenger Trends Los Angeles County Trends and Los Angeles Transit Lines Trends 1
Gerter81 Presentation 2
Chart 2 - Trend and Estimate of Adult Revenue Passenger - Case I ar1d II 15 Tlble 1 - Estimate of P3ssengers and Passenger Revenue - CClse I mo II 16 Table 2 - Estimate of Mileage-Case I and Caso II 17 Table) - Estimate of Jperating ~d Maintenance Expense - Case I
Rail 18 Trolley Coach 19 Motor Coach 20
Table 4 - Estirnlte of Allowlllce s for Amortization md Interest Due to Rail Ab l11 donments - Case I lnd Case II 21
Tlble S - Sstimlte of Cost of Public Liability md Property Dlmage gnd Workmens Compen sa tion Insurance - Caso I 22
Table 6 - Estimlte of Operlting Tuces - Case I 24
Chart) - Pictures md Data - Street Car lnd TrollDY COlCh Equipment ~S of September 1 1954 25
Chart 4 - Pictures lnd Datl - Motor COlch EquiomGnt middot1 S 0f SeptGrnber 1 1954
Chart 5 - Pictures lnd Dlt1 - Rebuilding Motor COlches of the 6000 Rnd 6100 Series 27
T1b1e 7 - Estirntte of Inv( stmont D0preciition md Rlto Base - Case I 28
Tlble 8 - Estimate of Investmcmt Deprociation md Rlte a lti se Ctse II- 29 T~ble 9 - Estimlted Inve stmont Depreciltion Res8rve md H -n so forcxpu
equipment on 11unit plm depreciqtion 30
T1ble 10 - Estimttc of Results of Cponti0n - Cse I 31
Table 11 - E s timmiddot1to of Oper1ting Expense md Tuco s - ClS8 II 32
T~b18 12 - Estimlte of Rosults of [poratirm - ClSC II 33
I CHART
40 42 44 46 Ll8 50 52 53 200
TRANSITII
180 p~~ PASSENGERgtf~
o S71 o~ -If- -shy 1
~ 160 I ~ - TRENDS
i If - e1 - shy ( INOex 1940= 100)
bYpshyl ~
~ j (oS
140 irf ~- ~LOSAN6ELpoundS TRANSIT LINE5i W --
120 1 r
~ 1 WITED STATES 100
r--I
I--STATE OF CALIFORNIA 80
200 ~ LOS AN6ELES COUNTY
180 lt SELECTED TRENDS ~ lt~ ~ ( I NDpoundX 1940 = lOa)
+~ Xshy 160 ~O REGISTRATIONW l tI ~
lt
~ 140 ~
pshy -shy fx 1 - POPULATION
~ 120 f~ li~~ qshy
~ ~ ~ ~1
LATL PASSENGERSw
~ - - ~gt6 ~ ~ 100 r-- AU~ 101 t- ---AUTO REGISTRATION pc roo Io pltl i--
4 ltgt
llt4Glf ~~~shy PER 100 POPULA nON 80
240 LOS ANGELES
IfrZONE CA iN 7shy j I ltIshy 15-1 ISi I~ TRANSIT LINES10k IV 7 30 so 2WSl jr4tJl 7Ye
1 LOCAL rARe
220 OPERATING STATISTICSDRIVERS WAGfS 72 85 88 93 95 1-00 123 135 1-40 middot47 middot52 Iss 1middot75 81 $ PER 1I0VR -
( INDEX 1940 = 100)200 --shy 7 J X bullbullbullbulli
I- ~ I ~ DRIVERS WAGES180 V [r ~~ ON AN HOURLY BASIS
~~ shy~ 160 ~~ t~~ ~l
lJJ 6~ f- if ~~ASSENGER REVENUE
~ fl ~ V140 ~
OPERATING EXPENSES17 ~~I ~~ ~
Ill I--shy
---- r-shy120
I---AVERAGE RATE OF FAREl 6 t ~~bull ~~ ~~r-
1 lt1 t~middot ~~ ~ PER PASSENGER 100 -- yq M~ ~ r---
t---VEHICLE MILES OPERATED~ -00
80 52 )340 42 44 46 48 50
~
LOS ANGELES TRANSIT LINES APPLICATION NO35601 APPLICATION NO3728
General
The purpose of this engineering~economic roport is to set forth
the operating results of the Los ~eles Transit Lines for a twelve-month
period ending October 31 1955 under present fares and under fares proposed
in Application No 35601 and under present operations and under the plan of t-middot
motor coach substitution for certain rail lines as set forth in Application
No 35728 The results of operation Jill be shown under thefolloVing
bases
Case I-A Present Operations with Present Fares
Caso I-B Presont Operations with Proposed Fares
Case II-A Proposed Motor Coach Substitution l-li th
Present Fares
Case II-B Proposed Motor Coach Substitution with
Propo sed Fares
i~here Case I is referred to in the text it implies both Case I-A
and Case I-B and where Case II is referred to it implies both Case II-A and
Case II-B
Territory Served
Tho Los Angeles Transit Lines serves an area roughly thirteen miles
in diameter centered around the downtown business district of Los Angeles
For faro collection purposos this is divided into an inner zone approximately
nine miles in diameter surroundod by a ring two miles in ltlidth which is
_ 2 _
separated into seven second zoncs Additional third zone areas arc served
as follows
Eagle Rock and Griffith Park districts in the North
Beverly Hills district in the West
Inglmrood and South Gate districts in tho South
Further to the south two fourth-zone areas are designated as Hawthorno
Zone 4 and Hollydale Zone 4
Historical Aspects of Traffic Trends and Operating Statistics
Chart 1 provides a historical background for traffic trends and
operating statistics of Los Angeles Transit Lines for the period from 1940
to 1953
Present and Proposed Fare Structures
The fares currently charged and those re~uested in Application
Nc 35601 are as follows
Present Fares
I-Zone - 2-Zone 3-Zone J-Zone
Adult l5~ or 20cent or 25~ or )O~ or T Til + 5~ T loi T l5~
School 9~ l2cent l5~
T = Token sold at 7$100
Proposed Fares Set Forth in A~lication NQ 2~60l
Adult 29~ 35~
School 20cent
Sold in books of 40 rides
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In summary thepropos~dchalges aro - t - ~ ~- shy
(1) Eliminate tokens
(2) Increase single zone fare middot tQ 17 with 6~ increments for each addi tional zone
(3) Increase school single-zono cominUte fara to lO~ with 5cent incroments for each add~ tional zone
Changes in Operation - Case II
In Application No 35728 Los Angeles Transit Lines requests authority
to convert about 40 of its present street car serVice to motor coach service
and at the same time to convert ono line nbw operated by motor coach to trolley
coach Following is a list of the street car iines ~hich the company proposes
toconvort to motor coach
No and Name of Line Amount to be Converted
No 5 - Eagle Rock and Hawthorne Entire Line
No7 - So Broadway and Civic Center n II
No8 - W54th St and No Main st II No9 - W4Bth St-Lincoln Park In part From W end of
Line at Crenshaw Blvd and 48th St to Broadway and 11th St
FlI_ S Vermont and Union Station Entire Line
IIW _ W Washington and Highland Park In part From Broadway and Pa saQena Ave to N end of the line at Y middot)l~Y lv and Avenue 50
The motor coach line to be converted to trolley coach is
No and NRme of Line Amount to be Converted
Entire LineNo 41 - Alvarado Street
Passengers and Passenger Revenuo- Case rand Case middotII
Adult Passengers and Revenue
Because of the method of fare collection the company does not main-
t[in records of passengers carried HowErVer it does maintain a daily record
of cash fares and token fares This revenue informationi s used herein in
conjunction with a traffic check which ltlas m~de to determine the n~ber of
passengers by zones The traffic check was conducted in 1950 in connection
with Application No 32335 and the resulting percentage distribution by zones
of adult passengers is sho1rm in Column 1 of the following tabulation The
column to the right shows the percentage distribution used in this reportwhich
has been adjusted to reflect variation in diminution by zones and in the trea tshy
ment of certain passengers handled to Hollywood Park
Percent of Adult Passengers
As Used in As Used in ARglication )2225 This Rill2ort
l-Zono 674 666 2-Zonc 286 293 3-Zone 37 3~5
4-Zone 03 15
1000 10000
The following tabulation shows the fares in effect from the lattor
pc~rt of 1950 when the present pattern was established to date The first
column shows tho actua l adult I-Zone fare while the second column shows the
computed average adult fare for all zones Average Adult Fere
Period ~ Adult I-Zone Fare All Zones
12-10-50 to 1-23-52 lOp 1182l 1-24-52 to 11-2-52 15~ or 225p 14bull58
11-3-52 to 11-29~53 15~ or 340cent 1554
11-30-53 to Date 15~ or 7$100 1655
This average f are is estimated at 1664~ for the rate year under present fares because of the declining use of tokens
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The trend of total adult pa~s~ngers is shown in Chart 2 The
estimated adult revenue passengers for the twelve-month period ending ~
October 311955 under prosent fares are135363000 andare shown in the
chart at m1dpqint of the rate year Token use under present fares was
estimated to be 35 in each of the four zones The diminution or loss of
passengers due to increased fares was estimated to be 25 of the percentage
incrbase in the fare involved The estimated 135363000 adult passengers
developed in Chart 2 are also shown in Table 1 Coi1lffiIl 5 Line 13 and flrEl
distributed to the various zones on the basis of the percentages shown in
the above tabulation
Hollywood Park passengers are esti~ated to be 200000 annually
and the fare for these passengers is 10~ Although these Hollylood Park
passeng~rs may originate in the dOlntown area they become in essence new
passengers when they board the Hollywood Park Line since they have no transshy
fer privileges Adult passengers and revenue (shown in detail in Table 1)
for the twelve months ending October 31 1955 are summarized as follows
Passengers Revenue
Presont Fares 135563000 $22513000
Applicants Proposed Fares 130039000 25037000
Following is an estimate of school passengers and revenue and
U s Postal employee passengers and revenue
School Passengers Revenue
Case I-A Present Fares 3358000 $319000
Case I-B Proposed Fares 3245000 351000
6 shy
U S Post Office
Pas senger s Revenue
Case I-A Present Fares 616000 $ middot88000
Caso r~B Proposed Fares 616000 105000
Token Adjustment
It is estimated that based upon tho present experience of applishy
cant three tokens out of 1000 tokens sold or 0356middot will never be redeemed
This amount will be considered as an added revenue and is estimated at
$20000 under present fares
Other Revenue
From such sources as rent interest on franchise bonds charter
advertising and miscellaneous there is an estimat~d rovenue of $187000
under all cases
Revenue under Case II - Proposed Motor Coach Substitution (Application No 35728)
UnderCas8s II-A and II-B proposed motor coach substitution the
estimated rovenue will be the same as in Cases I-A and I-B respectively
Mileage
The estimated mileage to be operated during the rate year is
shOllTn in Table 2 This estimated mileage is based upon a study by
Mr William F Hibbard Associate Transportation Engineer of the
Commissions staff and is shown as a separate exhibit in this matter
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Operating and Maintenance Expenses -- Case I
Estimates of operating and maintenance expenses are shown in
Table 3
General
Unless otherwise stated in the following paragraphs operating
and maintenance expenses are based on experience and conditions currently
prevailing In estimating operating and maintenance expenses it is
estimated that 100 new 48-passenger diesel coaches will start operating
at the beginning of the rate year replacing older coaches now in
operation These new coaches will slightly increase the fleet cost of
tires and substantially decrease the cost of Account No 4140 - Maintenance
Expense
Wages All wages are included in the detailed estimates
shown in Table 3 at the level prevailing immediately
prior to ~ 1 1954
Wage Increase The wage increase which becomes fully
effective on December 1 1954 is sh~m separately
on Line 12 in Table 10 Results of Operation
Fuel The cost of fuel is based upon the current level
of costs including an ircrease in the Sales Tax
on diesel of 05 effective July 1 1954 for
the City of Los Angeles
Tires The unit cost of tires is based on that prevailing
under contract for the period July 1 to Decernber-31
1954 The estimate of the cost of tires reflects the
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~ - - -- -- - - shy
estimated higher unit middot tire cost per mile for the
loa ne coaches which are to be put in operation at
the beginning of the rate year
Power The cost of power reflects the increase recently
granted to Southern California Edison Company by
this Commission
Public Liability and Property Damage Insurance and Workmens Compensation Insurance Coverage for these types
of insurance is carried with Transit Casualty
Company the stock of which is owned by the following
affiliated or subsidiary companies
Percent of Common Stock Owned
National City Lines 30 Los Angeles Transit Lines 24 St Louis Public Service Company 46
Total middot 100
From 1953 Annual Report to the Insurance Department State of California The present premium rate charged by Transit Casualty Company to applicant is 7 of passenger revenue In this report as in pre~ous reports the estimate of the Commissions staff has been predicated on unit costs related to the number of passengers carried and tho vehicle miles operated The estimate for Case I is shown in Table 5
Operating Expenses - Case II
Case II - Operating expenses are shown in detail in Table 11
and are based on operations of Casc I adjusted to reflect the estimated
decrease in rail expenses due to the abandOnroent of lItrEiet car operations
as proposed in Application No 35728 the increase in motor coach expenses
re~uired by the substitution of motor coach service for street car service
and the increase in trolley coach expense due to the conversion of Line
No 41 from motor coach operation to trolley coach operation with a
corresponding decrease in motor coach expenses
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Operating Taxes - Case I
Franchise Taxes cmd Business Licenses
Under Case I Present Operationafrnnchise taxes to the City of
Los Angeles were determined by applying current tax rates to estimated
revenues
Ad Vnlore~ Taxes
The estimate for ad valorem taxes under Case I is based on an
assessinent of $6496250 and a tax rate of $67402
Fuel Taxes
Fuel taxes are based on the following per gallon rntes of Federal
and State Taxes
illA Cents ner Ga11Qn Effectiye Dates
Diesel Federal 11-1-54 to 3-31-55 12i ~ 4-1-55 to 10-31-55
State 7 11-1-54 to 6-30-55 ~ 2 ~ 7-1-55 to 10-31-55
Gasoline Federal 2 ~1-1-54 to 3-31-55 11
2 ~ 4-1-55 to 10-31-55
State 6 ~ 11-1-54 to 6-30-55 5i cent 7-1-55 to 10-31-55
Motor Vehicle Licenses
The estinate for motor vehic10 licenses is based on the registrashy
tion weight and vehicle license fees Which will be in effect during 1955
under equipmontrequiremonts as sot forth in the report by Public Utilities
Commission Associate Engineer Wil1in~ F Hibbard
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Trapsportati CD Ii CADse Tax
This license tax is assessed by the Board cf Equalization and
represents 3~ of the gross revenue derived from operations in non-incorporated
areas by motor and trolley coaches The estimate is based on
curront tax rates applied to estimated revenues
Pavroll Taxes
Tho ratos in effect aro 2 for Social s~curity taxos and 03 for
Federal Unemployment Insurance Paymonts to tho State Unemployment funds
will remain at zero as a sufficient accumulation of funds is presently
on hand It is estimated that 94 of applicants total payroll will be
subject to Social Security Tax undor the increased coverago offective
January 1 1955 and that 100 of the employees are subject to FUI taxes
at $3000 per year
Other Taxes
Other taxos include operatorsl licenses Foderal transportation
ta~ manufacturers excise taxes and other miscellnneous taxes The
estimate is based on actwd experience for the yeor ending May 31 1954
Income Taxes
State Corpor8tion Franchise Taxes have been computed at the
current rate of 4 Federal Income Taxes have been computed on tho basis
of a change in rate effective April 1 1955 On this basis the normal
tax 0 f 30 was used for five months of the rata year and 25 for soven
months of the rate year Tho surtax of 22 remains constant throughout
the year In calculating income taxes in both Cnse I and CasarI an
interest credit of $100300 was used
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Rate Base and Depreciation Expense
In General
In accnrdance wi th current Cornmi ssion practice of treating all
property en a remaining life basis the Commission Staff has made an
analysis of Applicont1s property As 0 rosult as of January 1 1954
1 Motor coaches of the series 6200 6300 6600 6700 6800
and 6900 (404 coaches) were put on a total life basis of
12 years This is considered reasonable in view of the
attained age and the condition of the fleet
2 The annual accrual of the Genoral Office Building (Acct 522)
was adjusted to reflect a totel life of 50 years
3 Buildings in Accounts 523 and 524 were assigned a remaining
life of 24 years with depreciation reserve adjusted to reflect
age-life condition
Under both Cpses I and II 100 nel motor coaches have been included
in the rate base as of November 1 1954 tho beginning of the rate ye~r
Other Lpnd (Acct bull 503) and Rights of Way (Acct 502) hewe been
adjusted to reflect estimated original cost
Under Cese I
150 motor coaches of the 6000 and 6100 series (including current
work orders for rebuilding) have boen deleted due to the inclusion of the
100 new coaches as well as tc conform to the equipment roquirements set forth in
Staff Witness Hibbards Exhibit ith 10 f ~r spares
All property on group plan depreciation reflects the current
4 rate of accrual with nermal additions and retiroMents tken into considerashy
tion
The 40 P C C crrs on uni t plan depreCiation wore extended as
of Innuary 1 1954 to a total life of 25 years
12 shy
Under Case II
As evidenced by correspondenco betoJeen the Commission and
Applicant and the request for changes in accounting practices as outlined
in a letter from the Applicant to the Commission under date of April 291954
it is assumed that applicant intends to completely convert to motor coach
operation by the end of 1965 The Rate Base under Case II assumes that all
property relnted to the rail and trolley coach oper2tion ltlill be fully
depreciated by that time This would include all rel~ted items of property
hitherto considered non-dopreciable those rel~ted ~o the present proposed
conversion havo been charged to the group plan depreciation reserve as of
November I 1954 those remaining 2xe depreciated over ~ 12 year period
boginning January 1 1954
150 coaches of the 6000 and 6100 series have been included in order
to satisfy oquipment requirements as outlined by Staff litness Hibbards 1
Exhibit No The work orders for rebuilding 83 of those coachos have
been put on a 3 year lifo (Soc Chart 5)
In conjunction wi th the rate base presentAtion there are shown in
Chart ) pictures and data of the streetcars and trolley coach equipment as
of September 1 1954 Camp~rt 4 shows ~ictures and data of motor coach equipshy
mont as of September I 1954
Amortization and Interest Allowance
Amortization and Interest allowance f or abandcnment oblig~tionsunder
Cases I and II is sho~m in Table 4 The estimates ccntained therein refloct
an income tax credit on the total amount of the obligations The estimate
under Case I is fer obligations incurred prior to 1954 and oblig~tionsconcerned
nV ttwith changos on tho ruld tTRtl lines made effective JUly 25 1954 Under
- 13 shy
C~se II is added the estin~ted obligation in connecticn with the abandonment
nsprop0sed in Application No 35728
Results of Operatirn
Ou-so I Relbvant infr-rr1pticn sh0vm in the f0regcing text ancl
in the tables is summarized in Table 10 - Estimated
Results of Operation - Case I and from this informashy
tion a rate of return and operating ratios are
calculated under Present and Proposed Fares
Case II Using the basic inf0rmation as used in Table 10 in
c0 njunction with the estimate of operating expenses
for Caso II as shown in Table 11 the rates of
return and operating ratins under Case II are developed
in Table 12 - Estimated Results of Operation - Case II
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LO S ANGELES TRANSIT LINES
TREN 0 OF WEEKLY REVENUE- PASS ENGER5 (E)(CLU SIVE OF POSTAL EMPLOYEES AND RIDERS ON SCHOOL FARES)
FEBRUARY 1952 TOJULY 1954 AND
ESTIMATE FOR 12 MONTHS ENDING OCT 31 1955
~ 3middot5 W w ~
a w 0
_ I cJ)
a 30 uJ 19 Z UJ cJ) cJ)
laquo 0
IL 0 25
([)
z 0 J J
~
bull ~ I
l T
-
- -
ltI-N
- 2
- wr-
u
- 2
--
w
- u
A I
1 ( A A I
j
~ J r 1f
I a V J 1 fv V V ~J
V 1IV I 1 II I
I I Jr 0
~
l) - 0 (c
rlt1
gt bull r gt 0 10 z I z ~
I I I w iw
I
I I EST I~ATE FOR 12 foONTHS ENDING OCTOBER 31 1955 w I UNDER PRpoundSENT FARES-
I w
u A - PASSENGERS PER WEEK bullbullbullbullbullbullbullbullbullbullbullbull 2 596 000
u B - PASSENGERS PER yEAR bullbullbullbullbullbullbullbullbullbull 135 363 000
- Z Ii
w I
w I
lt I
u u i
it i--0 w
~ - -lt 0-H gt- =-1--1 a 0
-Y
VI
I
I )
T ~20
JAN f EBMAR APRoMAY J UN JUL AUG SEPOCTNOV DEC JANFEB MARAP R MAY JUNJULAUG SE P OCT NOVmCJANfEB MARAPRMAY JUN JUL AUG S EP OCTNOV DE C JAN FEB MAR APR IoiIAY JU N gt- c-+shy
rv1952 953 954 1955 Wl
LOS ANGELES TRANSIT LINES ESTIMATE OF REVEruE PASSENGERS lID PASSENGER REVENUE
FOR 12 MONTHS ENDInG OCTOBER 31 1955 CASE I AND CASE II APPLICATION NO 15601 AND NO 35728
Present Fares Applicants Proposed Fares Est
Percent of Dlmin- PassenshyLlne of Total Fare Zone Passengera Revenue Fare utlon cera Revenue -=-----Ho-- Item Orldnalt Adjusted (Cents) Paus i cent (Cents) ~ cent cent
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
Adul t Passengers
lOne-Zone 15 65 58599 $ 8790 17 333 56648 $ 9630 2 1427 35 31553 4507 17 475 )0054 5109 3 666 666 1475 100 90152 $13297 86702 $14739
4 Two-Zone 20 65 25780 $ 5156 23 3middot75 24813 $ 5707 5 1927 ~ 13881 2677 ~ 481 13212 30)9 6 293 293 19751 100 39661 $ 783) 38026 $ 8746
7 Three-Zone 25 65 3476 $ 869 29 400 3337 $ 968 a-- 8 2427 22 1871 454 29 485 1 180 516 I 9 38 395 2475 100 5)47 $ 1323 511 $ 1484
10 Four-~one )0 65 1)2 $ 39 35 417 126 $ 44shy11 2927 35 71 21 35 488 68 24 12 ~ ----l5 29 75f 100 20) $ 60 - 194 $ 68 13 Sub-Total 1000 1000 ~ 135363 $22513 1300)9 $25037 14 Holly Park 10 200 $ 20 10 200 $ 20 15 Total Adult 13556) $225)) 130239 $25057
16 School 9 2797 $ 252 10 278 2719 $ 272 17 School 12 561 67 15 625 526 79 18 Total School )358 $ )19 )245 $ 351 19 Post Office 1427 616 $ B8 17 616 $ 105 20 Grand Total 139537 $22940 1)4100 $25513
cent (000) Omi tted ~ 1F Weighted Average Fare ~ If See Chart 2 + + As deter~ined by traffic checks and used in previous Staff reports
CHART 3
rr LOS AtJGELES
TRANSIT LINES
STREET CAR AN 0 TROLLEY COAe H
EQUIPMENT AS OF
H4 OR K4 OPEN END WOODEN SEATS H3 CLOSED ENDLEATHER S EATS SEPTEMB E R f 1954
JIshy
OLDER T YPE OF PCC CAR NE WER TYPE OF PCC CAR
8000 SERIES TROLLEY COACH 9000 SERIES TROLLEY COACH 9100 S ERI ES TROLLEY COACH
STREET CARS TROLLEY COACHES
ALL H3 H4 K4 PCC OTHER TOTAL 8000 9000
SEATS 48 48 48 12 5-61 SEATS VARIOU 44 4540-28 SEATS
EQU IPME NT ASSIGNMENTS UNDER PRESENT CoMPANY BASIS EFFECTIVE SEPTEMBER 12
9100
46 TOTAL
SCHEDULED SPARES
TOTAL ASSIGNED UNASSIGNED
TOTAL OWNED
SCHEDULED
SPARES
TOTAL ASSIGNED UNASSIGNED
TOTAL OWNE D
354 22 57 5
411 2 37 101 13
60 165 37 512 40 EQUIP MENT RE QUIREMENTS PRESENT SERVICE FOR RATE YEAR)
354 36
390 122 512
34 6
40 30
81 16
81 9
90 20
110 EQUIPMENT REQUIREMENTS WITH SERVICE AS P ROPOSED IN
ApPLICATIO N 28 (FOR RATE YEAR
SCHEDULED 20431 23 150 93 4 2 21SPARES 1015
TOTAL ASSIGNED 165 22525 10335 UNASSIGNED - 7
TOTAL RETAINED 225 11025 16535 To BE RETIRED 0190 2 7 37 TOTAL Now OWNED 60 110512 215 165 3735
-lE- ESTI MA TED BY P U C STAFF E
2 r
C
-
6600 SER IE S 6700 AND 6900 SER IE S 6800 SER I ES
L I NE 6200 No TE~ 5000 6000 yf 6 100 yf 6300 6400 6600
MACK G M e G M e G M e G MC G M C I i~IA K( amp UODEl NUMBER C-45 -CT TD-4502 rn -4505 TO- 4506 TDH-5103 TOH shy 36 1 2 YE AR BUilT l~ 1940 1941 1945 1951 1947 3 DATE I N SERV I CE 7 -40 1-42 7 - 45 7 - 51 7 -47 4 NUMBER O F CoACHES 50 55 95 200 25 57 5 PU RCHAS ED NEW OR US ED N N
6 S EATI NG CAPAC IT Y 45 45 45 51 36 45 40
~ LE NG TH - OUT S I DE 3~ -0 3~ - 0 37 -0 3~ -6 30 - 6 3~ - 0 3~ -0 WI DTH - OU T S IDE -Oil _-ttl 8 -0 -611 8 - 2 _OM I - 0
9 HE I CHT - OU TS I DE 9 -6 9 shy 5t 9 -6 9 t 4t ll 9 - 2 9 0 9 -6 10 A I SL( HEADROOM 76 77 78 78 76shy 8 76
11 A ISLE WI DTH 19 2 1 26 22 22 20 12 TY PE O f DR I V( HYD HYD HYD HYO HYD HYD
13 BRA KE HORSE POWER amp FUE L 165io) 165( 0) 165(0) 110(0) 165(0) 165(0) 14 Bo DY f RAME MA TE R I AL AL AL AL AL AL NOT G I VE N 15 Bo DY PANEL ~1ATE R I AL AL AL AL AL AL NO T GI VEN
16 ROO F MATER I AL AL AL amp ST AL AL amp ST AL amp ST NO T G I VEN
~ ~ - AT DCC CMBER 3 1 1953shy14 26 15298AV ER AG E INVE ST PER CoACH $ ~ 21962 $ 13 992 17 60 14 209
19 INVESHIENT 1 354 9~ 3 059 506 549 044 7 97 5~ 2 lt164 650 99 466 10 000 509 20 RE SE RV E 1340 6 2 462 923 135951 503 6 1369 1 02 90 896 7 147 497
21 REM AIN ING VALUE (I NCL SALV) 14 250 596 583 413 093 293 869 1 095 548 8 570 2853 012 22 REMA I N I NG LIF E lOYR BAS I S 22 MO 90 MO 43 MO 52 MO 9 MO
23 REMAIN I NG L IFE 12YR BAS I 46 MO 90 MO 67 MO 76 MO 33 MO
yf THC COS T OF REBU IL DING 102 CoACHES OF THC 6000 AND 6 100 SE RIE S NOT I NCLUDE D HEREI N (SCE NEXT PACE)
1941 AN D 1942 MA T ER I AL S WE RE SuBJ ECT TO PR I OR I T ( S AND THEREFOR E STEEL WAS USE D IN PLACE OF
ALUMI NUM FO R BO DY FR AMES PAN EL S AND ROO FS I N SO ME COACHE S O F TH E TD- 4505 SERI ES
G - GASOl I NC D - D I CSE L AL - ALUM I NU M ST - Srr CL HYD - HYDRAUL I C
lt~i
~~4
CHART 4
LOS ANGELES TRANSIT LINES
MOTOR COACH EQUIPMENT
AS OF
SEPTEMB ER 1954IS_T 6000 SER I ES
6200 AND 6300 SER I ES
6
5 CHART
1~A~PLE OF THE DAMAGE TO BODY PANE LS M D RI VET ED JOINTS
2 - COACH WITH ALL BODY PANE LS Il l NDO V FR M1ES M~) SOIIE BO DY BRAC IN G REMOVED
l
LOS ANGELES TRANSIT LINES
PROGRAM OF
REBUILDING MOTOR COACHES
OF THE
6000 AND 6100 SERlES
j - PAR TI AL Re STO RA TI ON SODY PA NE LS Ix I I I )SI I ELD FRA Il E REPLA CED AFT ER kt C~ D I T I ON 116
I+ - AL L BO DY PANE LS AND S I DE W I~ DO J FRAhi ES RE shyPLACED AND ~ ESTO~ED
5 -INT ER IOR SHOW IN G CO MPLET E RE MOVAL OF SEATS AND OTHE R AC COUTERM ENTS REPLACED OR RECOND ITIO NED
6 -COMP LETE D I NTER l OR - t EIJ FLOO R
COV ER IN G WIT H S EAT CUSH IONS ETC
7 - COMP LET ED EXTER l OR COACH REPAI NTED AND READY FOR SERV I CE
I N 195 1 Los AN GELES T RANS IT LINES I NAUGURA TED A PROGRAM OF REBU IL D I NG GMC CoACHES OF THE
6 0 00 (BU ILT IN 1940) AND 61 00 ( BU ILT IN 1941) SER IE S A s OF JU LY 1954 62 COACH ES HAD BEE N
REBUILT WITH 40 ST ILL ON WORK ORDERS BUT IN PROCeSS THE CURRENT EST IM AT ED CO ST OF THIS
P ROGRMil I S AN AV ERAGE OF ~3500 PER COACH THE P U C S TAF F EST IMA TES THE LIF E OF TH ES E
COACH ES TO BE AN ADDIT IO NAL THR EE YEAR S FRO M DATE OF COMP LETI ON COS TS OF REB UILDING AR E
SHOWN I N THE RATE BAS E RE LATIV E TO THE APPROP RI ATE WORK ORDER AN D THEREFORE ARE NOT INCi UDEu
IN THE I NV ESH IENT FOR 60)0 AND 6100 S ERI ES COACH ES SHOWN ON CHAR T No 4
LOS ANGELES TRANSIT LINES SSTIMATED RATE BASE AND DEPRECHTION EXPENSE
12 I~ONTHS ENDING OCTOBSR 31 1955 CISE I - VnTH PRY-SENT METHOD OF SERTICE - APPLICATION NO 35601
Gum October 31 1954 As of October 31 1955
Line
No Item (1)
Iccnunt Number Invcstment
(2)
(3) Reserve
(4)
Inve stmen t Less
Reserve (5)
Remaining
Life (6)
In
Inve s tIDen t Less
vestment Reserve Reserve (7) (8) (9)
Depreciation Expense RAte YeAr
(10) LAND
1 2
Rights of VVAY Other Lmd
502 503
S 426974 1931112
$ 426974 1931112
$ middot 426974 1931112
$ 426974 $ 1931 112
EQUIP~NT ONl~ITDEPRECI~TION
3 Auto Tr011ey pcc53033Jf~034288 $ 7167640 $ 6866648 V3rious $14034288 $ 8125353 $ 5908935 $ 957713
PROPERTY ON GROUP DEPRECIATIJN OverheAQs
4 Engineering 501 $ 44651 $ 44651 OrgAnizAtiorfshy 546 601749 601749~ 5
6 Interest 547 middot 916884 916884 7 Gnding 504 1117084 1118084 8 All Other 505-545 27021634 4 Base 27141634 _____ _________ 9 Suttotal
(Lines 4 to 8) $29702002 $22441215 ~ 7260787 $29823002 ~23516286 $ 6306716 $1081071_
10 Tr)W(Lines 123 amp 9) ~46094376 $29608855 ~16485521 $46215376 $]1641639 $14573737 $2038784
11 RATE BASE Use - $2039000 12 Avenge 0f $16485521amp ~1+573 737 $15530000 13 Work in Progress 100000 14 M1terials amp Supplies 735000 15 Bond Deposit - City Fnnchise 411000 16 Deposit for PL Insurance 150000
17 Totil RAte BAse $16926000 8 t ~
-It- rhjor PArt of Acct 546 is Supervisinn --J
-----
LOS ANGELES TRI-NSIT LINES ESTThiIiTED Ri1TE BASE AND DEPRECllTION EXPENSE
12 NiONTHS ENDING OCTOBER 31 1955 CIlSE II - SSUMING MOTOR COACH SUBSTITUTION ON CERTHN RAIL LINES AS PROPOSED m iiPPLICilTION NO 35728
---- --------------- As f Oct)ber 31 195amp As of Oct0ber 31 1955 Inve sUn8nt Investment IBpreciaticn
Line Account Le ss REffiainin~ Less ExpensE No Item Number Inve-stmcnt ReS8riTe Reserve Life Investment Reserve ~ Reserve Rate Yeqr
(T) T2) 0) (Ii) (5) (6) (7) (8) (9) (10)
Ll~ND
1 Other LAnd 503 ~ 1925510 $ Ci 1925510 ~ 1925510 $ 1925510
EQUIP1A~NT ON UNIT DEPRECIATION 2 itutoIrol1eyPCC 5))3338 $16392563 $ 9323673 $ 7068890 Various $16392563 ~10391985 $ 6000578 $1068312
BUILDJNGS 3 General Office-~ 522 $ 916255 $ 563016 ~ 353239 1917 Yrs$ 916255 $ 581446 $ 334809 $ 18430 4 Shops Grgs Admin 523 amp524 2733772 1013500 1720272 2320 Yrs 2733772 1087633 1646139 74133 5 Subtotal (Lines 3 amp4) 3650027 ~ 1576516 gt 2073511 igt 3650027 11669079 ~ 1980948) 92563
~ PROPERTY ON GROUP DEPRECIATION Overheaas
6 Engineering 501) 7 Organizqtion 5~6) tt 1563178 ~ 1563178 8 Interest 547) 9 Grlding 504)
10 Righ ts of Vgy 502 117922 117922 11 All Other 505-5h5 15 651 31 7 15 771 31 7 ~---7-=-~-- lr-r-----=~ -x---r---~ 12 Subtotal (Lines 6 to 11) )17332417 $11343350 ~ 5989067 1117 Yramp$17452417 ~11833307 ~ 5619110 ~ 495957
13 Totql(Lines 125 amp 12) ~39300517 822243539 ~17056978 839420517 023894371 015526146 01656832
14 RATE BASE Use ~1657OOO 15 Avcr~ge of ~1705697B qnd )15526146 016292000 16 Nwk in Progre s s 100000 Am)unts sh)wn include lpplic3ble -werheqds fr)ll 17 Haterills amp Supplies 735000 Accnunts 546 amp 541 18 Bond Deposit - City Frqnchisc 411000 cent Investment ~d depreciation reserve assumes all 19 Deposit for PL Insurqnce 150000 retirements for the lines to be cmiddotmvcrted 1--3
20 Use Vqlue - Fully Depreciated CJtches 1)2000 ~re m~de 3S ) f November 1 1954 qnd that the ~ full unnunt middotf r e tirements qre charged to the EJ
21 Tot-l R1te Blse ~17840000 reserve co
10S ANG3LSS TRANSIT LI~S
INVESTWNT DSPRCIATICN R~SsRVS AND EXPSNS~ FOR ~QUIPMLNT ON UNIT PLAN DEPR3CHTION
CASES I AND II APPLICATIONS NO 35601 AND 35728
As of Oct0ber 31 ffi4 As of October 31 1955 Line NoTotal Investment fnvestment Depre No Item of Life Investment Reserve Less Investment Reserve Less Expense
Units Reserve Reserve Rate Year (1) (2) (J) 4) - ---(~ CD) en -- --8)----- -(9j- (10)
For Case I 1 Motor Coach Groups
62006300 66-6900 hOh 12 Yrs$6421159 $4728599 ~1692560 ~ 6421159 $ 500 1011 ~1330lh8 $ 362412 2 5000 6hoo 75 10 II 1486387 77~175 711212 1h86387 92h851 561536 149676 3 Coaches on order 100 10 II 2285400 2285400 2285400 2265J~0 2058860 226540
II
I 5 Automobiles 51 V3r 99485 50916 h8569 99485 66540 329h5 15624 ~ 6 Trucks amp Service Cars 56 II 280584 250572 30012 280584 265813 lh771 15241 I 7 Misc( Fare BoxesMotors) 170193 115191 55002 170193 122271 47922 7080
h Trolley Coaches 110 15 2108h09 908560 1199849 2108h09 1Oh6116 1062293 137556
8 Total of Lines 1 to 7 ~12851617 ~~6829013 ~02260h ~12i351617 ~ 77h3lh2 $5108475 $ 914129
9 PCC Rail Cars 40 25 rsJ~ 1182671 ) 338627 gt 84h04h 1182671 ~ 382211 ~ 800460 $ h3581~
10 Case I - Line 8 + Line 9 $14034288 $7167640 $6866648 ~14034288 $ 8125353 t5908935 $ 957713
For Case II
11 6000 amp 6100 Series MC 150 FD ~ 2092963 $2070463 ~ 22500 $ 2092963 $ 2070463 $ 22500 12 Work orders on 6000s
amp 6100 s 3 Yrs 265312 61860 203452 265312 144007 121305 $ 82147 13 PCC Rail Cars 401717 1182671 362 337__ ~~~ 334 1182671 43473 ___748298 72036
14 Case II - Lines 8 + 11+ 12+ 13 ~16392563 9323673 n068890 $16392563 ttl0391985 ~6ooo578 ~1068312
t-3
125 other PCC Cars are in Group Depreciation Schedule G ~
Note579 motor coaches under Case I and 729 under Case II D
LOS AlJGELES TRANSIT LnlES TABLE 10 ESTIMATE]) RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD E1TDUTG OCTOBER 31 1955 CASE I - UNDER PRESENT OPERATIONS
12 Months Jan-June
Line No Item
Tab1e Ending or May 31 1954 Page Fe fer
(2)
Book Record
(])
1954 Annualized
Book Record
(4)
Case I-A Present
Fares (5 )
Case I-B Applicant l s
Proposed Fares
(6)
1 Vehicle Miles T2 34036066 33569520 32747000 32440000
Revenue 2 3 4 5
Passenger Revenue Unredeemed Tokens Other Revenue Total
T1 P7 P7
$24849150
122402 $25044557
$24517866
183810 $24 701676
$22940000 $25513000 20000
1821 000 182 000 $23147000 $25700000
6 7 8
Operating Expenses Rail Trolley Coach Motor Coach
T3 T3 T3
$ 8493744 1442232 8622956
$ 8575232 1451430 8 n6470
$ 8115900 $ 8047000 1366000 1355400 8144200 8088900
9 10 11 12 13
Sub-Total Depreciation Operating Taxes Wage Increase Total
T7 T6
18563932 2176608 1676358
$22416898
18743132 2185804 1760600
$22689536
17626800 17491300~ 2039000 2039000 1663800 1711700
439800 436500 $21769400 $21678500
14 Operating Income $ 2627659 $ 20J2JJQ $ 1377600 $ 4021500 15 Other Inc amp Inc Deduct 21258 (9328)
16 Net Inc Before IncTaxes 2635217 2002742 1377600 4021500 I 17 Income Taxes (St ampFe~) 1302758 1026568 647500 1 999 000 18 Net Operating Income 1332459 976174 730100 2022 500 i 19 Allowance T4 112216 80752 1541000 1541000 20 Net Income $ 1220243 $ 895422 $576100 $ 1868500
21 Rate Base T7 $17393000 $16727000 $16926000 $16926000 22 Rate of Return 70~ 535 340 1104
Operating Ratio 23 Before Income Taxes 9405 8435 24 After Inc Taxes ampAllow 9751 927)
Not Applicable
Computed by PUC Staff Allowance for interest and amortization of abandoned property (Red ]figure)
- 31 shy
IDS ill~GElES TRANSIT LINES ESTIMATE OF OPERATllIG EX-degENSES JuID TAXES
FOR 12 f10NTHS ENDING OCTOBER 31 1955 CASE II - KOTOR COACH Sl~STITUTION - j~PLrCATION NO 35728
Table or Line Page Hotor Trolley
~To Item Reference Streetcar Coach Coach Total
l 2 3
4
I S
rv 6VJ
I 7 8 9
10 ll 12 13 Ih 15 16
17
13
(ll- -- shy
Vehicle Miles Case I - Present Operation Case II - Proposed Operation
Increase in i1iles
Opere amp I1aint Expense - Case I
Changes in Expense Due to Conversion Way and Structures Substation Operation Rail Crossing Protection Vehicle Maintenance Servicing of Vehicles Tires - Hotor Coach Equipment Operators vJages Fuel Oil or Power 21 amp PD Insurance ~Jorkmen I s Compensation Insurance Training Drivers for Conversion
Total Increase in Expense
Oper amp i1aint Expense - Case II (Line h +
Operating Taxes - Case II
(Red Figure)
(Z)
T2 T2
T3
Line 16)
D)
11887000 6691000
(5196000)
~ 8115900
t (11500) (42200) (55000)
(270900) (76900)
(1232900) (219800)
(liT shy
18314000 23h67000 5153000
amp 314~900
~
355000 h3300 32500
1154300 153000
-C5) (6)
2546000 32747000 2949000 33107000
403000 360000
S 1366000 ~gt 17 626800
If (144500) 1 ~ v$ ltW (42 200 ) - bull (55 000 ) 7HmiddotVj
19200 103300 M~ f~
3000 ( 30600) A N- i
32500 94400 15800 14600 (52206)
(1l1100) ~ [ (1200) Glh
30000 ~i
p (258200)
$17368600 r3
c~ 1786600 cr ill
I- CD
I- i-
TABLE 12
LOS ANGELES TRANSIT LINES ESTIMATED RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD ENDING OCTOBER 11 1955 CASE II - MOTOR COACH SUBSTITUTION - APPLICATION NO 15728
Table Case II-A Case II-B Line Item Refer- Present Proposed
Nos i FSles Faresect~nce
( 1) (2) (3) ( 4)
1 Vehicles Miles T 2 33107000 32817000
2 Operating Revenue T 10 $23147000 $25700000
O~erating E~ense
3 Operating and Maintenance Tll $17368600 $17234900 4 Depreciation T 8 1657000 1657000 5 Operating Taxes Tll 1786000 1837800 6 Wage Increase 434ZQQ 431 lt)00
Total $21246300 $211612007
8 Operating Income $ 1900700 $ 4538800 Other Inc amp Inc Deductions it 119
10 Net Income Before Income Taxes $ 1900700 $ 4538800 11 Income Taxes (State amp Federal) 214 200 2262 400 12 Net Operating Income $ 985800 $ 2275400 13 Allowance T 4 ~ 2090QO ~ 20200Q 14 Net Income $ 776800 $ 2066400
15 Rate Base T 8 $17840000 $17840000 16 Rate of Return 435 1158
012erating Ratio 17 Before Income Taxes 9179 8234 18 After Income Taxes amp Allowance 9664 9196
Not Appli cable
Allowance for interest and amortization related to streetcar abandonment of the past and for abandonmcnts proposed in Application No 35728
-33shy
LOS ANGELES TRANSIT Ln~S ESTH1ATE OF HILES TO i3LJ OERATEJJ FOR THE TlJ7IVE HONTHS-ENDING OCTOBER 31 1 q55
A UNDJilR PRESENT OPERATIONS B WITH HOTOR COACH SlfilSTITUTION AS PROPOSED IN APPLICATION NO 35n8
CASE I - PRESENT OPERlTI03S Present Fares Propose(l Fares
Estimatet Estimated Estimated Hiloago Estimated Est T)imirDl l4i Recluc-Estimatea Miles Miles (a) Decrease In Traffic Roduction Mileage of Traffiction Below Proposed
Item As Shown In Miles of the Decline Duo TrafficPresent FaresBelow TrafCol6 Due to Fares PDC Staff Dacrease9-15-54 to Docline (2) x At PrescntDiminution Col 6 x
________ (3) x (4) (100 - Col 5gt Fares (7) x (3) (100 - ColFJdlibLLJamp~Passengers ~-55 8) (1) (2) (3) (4) (5) (6) (7) (8) (9)
streetcar 12041861 30 43 L29 11587000 39 117 11748000
Trolley Coach 2546000 92573633 25f~ 43 1 075~b 3 0 975 2521000
Motor Coach (b) ]8li-~4 849 20 4 3~ 86 10 18106000 39 78 18163000bull I~
f-- ---J Total (b) 33080343 32739000 32432000
CASE II - OFSRATIONS PROPOSED IN APPLICATION NO 15728 Present Fares Proposed Fares
Item Estimatefl 1JIiles(a) As SnownEstimate~- Miles Present FarosEstimate~ Milos Proposed ___-~___------I=n~PDCStaff Exhibit No Col lOx (100 - Col 5) Faros Col llx (100-CQl~
(1) (10) (11) (12)
Stroetcar 6778211 6691000 6 61300O
Trolley Coach 2981376 2949000 2920000
Motor Coach (b) 236629)) 23459 1000 2276 7000
~Total (b) 33422542 33099000 32809000 ill r trl
(a) Based on th~ l ovel of traffic of Septombor 1954 I)
(b) To the estirl8ted milos shown here should bo a~dod 7500 Charter Miles
t-3
- - - - - - -
LOS kJGELES TRANSIT LINES Table 3 Sheet 1 of 3ESTIMATE OF RAIL OPERiTINGifiPENSES
CASE I - UNDER PRESENT OPERATIONS
Company Estfor 12 Mo~ Records Ending
Acct Jan-May 1954 103155 No I t e m Annualized Present Fares
Car Miles Way and Structures
1-24 ill Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 Superintendence 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conducting Transportation 63 Superintendence 64 Conductor Motormen etc 66 Car Service Emp 67 Miscel1 Car Service Exp 70 Car House Empa
Var other Cond Transp Accounts Total
Traffic 79 Superintendence 80 AdvertiSing
Total General
83 Gen Off - Sal and Exp 84 Gen Off Emp - Sal amp Exp 85 Gen Off a SuppJies amp Exps 88 Pensions
(93 Insurance PL amp PO (93 Insurance Workmens Comp (93 Insurance Other
Var Other General Accounts Total
Total Rail Operating Expense
Cents per Car Mile
12573226
$ 722615
$ 79078 759547 146522
$ 985141
$ 18190 174643 482945
23033 $ 698 811
$ 438900 3257666
104525 76608
351696 57240
$ 4286635
$ 6346 18353
$ 24699
$ 83645 123281
35570 4818S8 765019 46840 13664
287090 $ 1836967
$ 8554874
68004cent
ll887OOO
$ 722600
$ 79100 671200 147900
$ 898200
$) 18200 174600 547200
28900 $ 768900
$ 438900 2890900
104500 72200
351700 59600
$ 3917800
$ 6300 18400
$ 24700
$ 78900 123300 35600
456600 750400 ~ 43100 13700
282tl00 $ 1783700
$ 8115900
6827cent
Co
)
-
(1
I
flI
Car Miles Oper middot Exp Case I-B - Applicants Proposed Fares 11748000 $ 8047000 ~ Expenses Variable with Car Miles Wage rates used herein are those whieh
Ac30amp33 565 cent~ile prevailed immediately prior to 6154 59 460 The cost of the wage increase which 64 2432 tecomes fully effective on 12154 is 70 148 50 of total shown separately in Results of
Total 3605 centmile Operation table ~ See Table 5 for amounts under Proposed Fare
- 18 shy
- - - - - ------
LCB ANGELES TRANSIT LINFS Table 3 ESTIMATE OF TROLLEY COACH OPERATING EXPENSES Sheet 2 of 3
CASE I - UNDER PRESENT OPERATIONS
Acct No I t e m
Coach Miles Way and Structures
1-24 All Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 --superintendenoe 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conduoting Transportation 63 Superintendence 64 Operators Wages 70 Car House Employees
Var Other Condo Transp Accounts Total
Traffic 79 Superintendence 80 Advertising
Total General
83 Gen Off - Sal amp Exp 84 85
Gen Off Emp - Sal amp Exp Gen Off Supplies amp Exps
88 Pensions (93 Insurance PL amp PD (93 Insurance Worlanen s Comp (93 Insurance Other
Var Other General Accounts Total
Total Operating Expense
Cents per Mile
Case I-B - Applicants Proposed Fares
Expenses Variable with Coach Miles Acs 30amp33 477centmile
59 3038 64 2342 70 075 50 of total
Total 3232centjmi1e
~ See Table 5 for Amount Under Proposed Fares
Company Estfor 12 ME Recorda Ending Jan-May 1954 103155 I ~
Annualized Present Fares ~
2629188 2546000
$ 26518 $ 27000
$ 32628 $ 32600 125469 121400
11012 9600 $ 169109 $ 163600
$ 3770 $ 3800 35770 35BOO 75017 86000 1
8417 9000 $ 122974 $ 134600
$ 99161 $ 99200 612513 596300
38273 38300 21802 21500
$ 771749 $ 755300
$ 979 $ 1000 3588 3600
$ 4567 $ 4600
$ 15134 $ 12100 22990 23000 5669 5700
87614 83000 165089 97300 I
8516 8000 ~ 3054 3100
49076 48700 $ 357142 $ 280900 6
$1452059 $1366000
5523cent 5365cent
Coach Miles Oper Exp 2521000 $1355400 -- -0
Wage rates used herein are those which prevailed immedshyiately prior to 6154 The cost of the wage i~crease which becomes fully effective on 12154 is shown separately in Results of Operations table
- 19 shy
LOS ANGELES TRANS1 LINS TABLE 3 ESTIMATE OF MOTOR COAOH OPERATING EXPENSE Sheet 3 of 3
CASE I - UNDER PRESENT OPERATIONS
Company Estimate for Records 12 months
Jan - May Ending Acct 1954 103155 No I t e m Annualized Present Fares ~
Coach Miles 1832~158 18314000 Equipment Maintenance amp Gara~ Expense
4110 Supv - Shop and Gar $ 142788 $ 142800 4140-2 Repairs to Rev E~uipment 1097376 848800 4150 Servicing Rev Equipment 308373 307700 4160 Tires - Rev Equipment 123305 125200 Var Other Maint Accounts 151444 147300
Total $1823286 $1571800 Transportation Expense
4210 Supervision of Transp $ 487284 $ 487300 4220 Drivers I vrages 3767184 37589001= 3) bull
4230 522175 523800 )0
4240 Oil for Revenue Equipment 17256 19500 JOJ
Var Other Trans Exp Accounts 60153 58200 Total $4854052 $4847700
Traffic and Advertising 4470 Advertising $ 21593 $ 21600 Var Other Traffic Accounts 7)329 76500
Total $ 94922 $ 98100 Insurance
4510 Salaries and Expenses $ 18818 $ 18800 4520 Insurance PL amp PD 786322 542OOOp 4541 Insurance Workmens Compo 51458 50100p Var Other Insurance Exp 11357 11700 - shy
Fuel for Revenue Equipment _
J Total $ 867955 $ 622600 Administrative and General
4611-2 Gen Officers - Sal amp Exps $ 90806 $ 73500 4613-6 Gen Off Employees - Sal ampExp 138043 137000 4620 Law Expense 12910 16000 4630 Gen Office Supplies amp Exp 51689 44800 4640 Communication Expense 41143 45500 4652 Employees vlelfare 525737 498200 4655 Purchasing amp Stores 120790 120800 Var All Oth~r Adm amp Gen Exp 70090 53900
Total $1051208 $ 989700 Rents 15000 15000
Total Motor Coach Expense $8706423 $8144900 Cents per Mile 47middot50cent 4447cent
Coach Miles Ouer Exp Case I-B - Applicants Proposed Fares 18171 000 $8088900 -----shy
Expennes Variable with Milos Wage rates used herein are those which Ac 4140 463centmile prevailed immediately prior to 6154
4150 084 50 of total The cost of tho wage increase toJhich beshy4160 068 comes fully effective on 12154 is clnwn 4220 2052 separately in Results of Operation table 4230 286 4240 011
Total 2964centmile cent See Table 5 for Amount Under Proposed Fares 20 shy
TABLE 4
IDS ANGELES TRANSIT LUIES AMORTIZATION AND INTEREST ALLOWANCE
PAVING AND REMOVAL OBLIGATIONS - CASES I AND II APPLICATIONS NOS 35601 AND ~5728
A - Obligations from Abandonments Prior to 1954
Yearly Amortization $132000 Interest 16000
Total $148000
B - Obligations from Abandonment of Portions of IV and Rlt Lines (July 25 1954)
Yearly Amortization $ 4000 Interest 2000
Total $ 6000
C - Obligations from Abandonments as Proposed in Application No 35728 (November 1 154)
Yearly Amortization $ 35000 Interest 2JOOO
Total $ 55000
For Case I - Items A + B $154000
For Case II- Items A + B + C $209000
Includes cost of removal of electrical distribution system ($123700) and of substation equipment ($21600)
- 21 shy
LOS ANGELES TRAl~SIT Lli~S
RJBLIC LIABILITY PROPERTY DAl1AGE AND 1l0RIJftElI i S CCMFEi-TSATION EXPENSE illLATED TO SOUln~EbTT MILES Aim R3W-RLS PAS~lWEFS
CASE I - UNDER PRHSENT OPSHATIONS 1947 - 1950 Inc Jan-May Est FOr
Line Ito m 1951 1952 1953 195412 MosEnd No Total Av per Yr Annualizod 10 31 55
1 Lossos paid (n) $ 3890 $ 972 $ 1082 $ 902 $ 580 $ 262 2 Losses ostimato~ (a) 39 10 52 280 634 881 3 Reinsurance costs (a) 282 71 62 69 ____81 65 4 Total Losses_amp Insurance (a) $ 4211 $ 1053 $ 1196 $ 1251 $ 1295 $ 1208
5 Expenses paid (a) $ 1536 $ 384 $ 353 $ 385 $ 242 $ 170 6 Expenses estimated (a) 7 2 _ __ 11) 61 182 24S 7 Total expenses (a) $ 1543 $ middot 386 ~ 363 $ 446 $ 424 $415 8 Total LossesReiils amp Exp (a) $ 5754 $ 1439 1559 $ 1697 1719 $ 1622
(Lina 4- + 7) I 9 Number of claims filed 59991 14998 11588 11104 10246 9228
N
N 10 Vehiclo miles (millions) 153 4 384 356 351 346 336 I
11 Revenue Passon~crs (millions) 10093 2523 1924 1746 1661 1531
12 Loss Per 11i1 lliilos (4 ~ 10) ~27451 $27451 ~33596 $35~641 $37428 $35952 $35000
13 Loss Por i-Hllion Pass (4 11) $ 4172 $ 4172 ~ 6216 ) 7165 ~ 7797 $ 7890 $ 7500 14 Expensos por claim (7 f 9) h
ltfgt 2572 Y 25middot72 i) 3133 $ 4017 4138 $ 4497 $ 45 15 Claims per million miles (9 10) 391 391 326 316 296 275 280
16 Claims per million pass (9 11) 59 59 60 64 62 60 60
Ul p- CD (I)
(a) Thousand of dollars amp8
t-G o ~ H
J N
TABLE 5 LOS ANGELES TRANSIT LUTES Sheet 2 0 f 2
ESTIMATE OF PUBLIC LIABILITY AND PROPERTY DAMAGE AND WOBKMElJ 1 S COMPENSATION EXPENSES
FOR 12-MONTH PERIOD ENDING OCTOBER 31 1955 UNDER CASE I-A AND CASE I-B - PRESENT OPERATIONS ~lITH PRESENT amp PROPOSED FARES
Line 110
Cost Factors 1 Claims per million revenue passengers bull bull bull 2 raquo raquo vehicle miles bull bull bull 3 Expense per claim bull bull 4 Losses per million revenue passengers
raquo raquo vehicle miles bull bull bull bull 5 bull bull
60 280 45
7500 35000
Estimated Expense For PL and PD and Workmens Compensation Insurance
Case I-A Present Fares
6 Number of rovenue passengers (millions) 1395
7 Number of vehicle miles(millions) 3275
A - Basod on Number of Passengers 8 Losses 9 Expense
10 Total
B - Based 11 Losses 12 Expense 13 Total
$1046200 376700
$1422900
on Number of Vehicle Hiles $1146200
412700 $1558900
14 Average of A and B (PL amp PD and Workmen 6 Compo - $1490900
15 Workmens Compensation Insurance 101~200(a) 16 PL and PD Insurance 1389700
Distribution of Total PL amp PD Percent
17 Rail Operations 541 $ 750400 18 Trolloy Coach Operations 7 97300 19 Motor Coach Operations ~ -542000 20 Total 100 $1389700
Case I-B Proposed Fares
1341 3244
$1005700 362100
$1367800
$1135400 408700
$1544100
$1456000 100200 (b)
1355800
$ 732~100 94900
528800 $1355800
(a) Rail=$43lOO Trolley Coach=$8000 and Motor Coach=$50100
(b) Rail=$42 600_ Trolley Coach=$7 ~ 900 and Hotor Coach=$49 (00 _ --- I
- 23 shy
lA3LE 6
LOS ANGELES TRANSIT LINES ESTIHATE 041 OPERAT1NG TAXES
FOR 12 MONTHS ENDING OCTOBER 31 1955 CASE I - PRESENT OPERATIONS
APPLICATION NO 35601
Book Record Case I-A Case I-B L1ne I t e m 12 Months Present Proposed
No End 5-31~ Fares Fares(~ ) -=-----=-(3)~--=--~r(4~)~-(1)
1 City Franchise Taxes $ 473687 $ 434600 ~ 481900
2 Property Taxes-Ad Valorem 457963 435000 435000
3 Fuel and Oil Taxes 360580 337700 335100
4 Motor Vehicle License Taxes 136984 Ib8 900 168900
5 Transportation License 15600 21~00 (3 B of EHlshy
6 payroll Tuxes 265000 262500
Other raxes 7000 70007
Total ~ip 1 603 800
Net after weight fee credit
-24shy
MEMORANDUM
In the preparation of this report Transportation
Engineers of the staff participated as follows
Paul A Burket Assistant Engineer General Data
George H Morrison Assistant Engineer Operating Expenses
Albert c Porter Assistant Engineer Rate Base and Depreciation Expense
Edward P Thurban Assistant Engineer Taxes
Donald J Warth Assistant Engineer General Data
LOS AJGSL~S TRA~lSIT LIl-RS RPPLIC~TION NOS)5601 AND raquo728
TABLE OF CIJNTNTS
Tit 1 e Page No
Chart 1 - Transit Passenger Trends Los Angeles County Trends and Los Angeles Transit Lines Trends 1
Gerter81 Presentation 2
Chart 2 - Trend and Estimate of Adult Revenue Passenger - Case I ar1d II 15 Tlble 1 - Estimate of P3ssengers and Passenger Revenue - CClse I mo II 16 Table 2 - Estimate of Mileage-Case I and Caso II 17 Table) - Estimate of Jperating ~d Maintenance Expense - Case I
Rail 18 Trolley Coach 19 Motor Coach 20
Table 4 - Estirnlte of Allowlllce s for Amortization md Interest Due to Rail Ab l11 donments - Case I lnd Case II 21
Tlble S - Sstimlte of Cost of Public Liability md Property Dlmage gnd Workmens Compen sa tion Insurance - Caso I 22
Table 6 - Estimlte of Operlting Tuces - Case I 24
Chart) - Pictures md Data - Street Car lnd TrollDY COlCh Equipment ~S of September 1 1954 25
Chart 4 - Pictures lnd Datl - Motor COlch EquiomGnt middot1 S 0f SeptGrnber 1 1954
Chart 5 - Pictures lnd Dlt1 - Rebuilding Motor COlches of the 6000 Rnd 6100 Series 27
T1b1e 7 - Estirntte of Inv( stmont D0preciition md Rlto Base - Case I 28
Tlble 8 - Estimate of Investmcmt Deprociation md Rlte a lti se Ctse II- 29 T~ble 9 - Estimlted Inve stmont Depreciltion Res8rve md H -n so forcxpu
equipment on 11unit plm depreciqtion 30
T1ble 10 - Estimttc of Results of Cponti0n - Cse I 31
Table 11 - E s timmiddot1to of Oper1ting Expense md Tuco s - ClS8 II 32
T~b18 12 - Estimlte of Rosults of [poratirm - ClSC II 33
I CHART
40 42 44 46 Ll8 50 52 53 200
TRANSITII
180 p~~ PASSENGERgtf~
o S71 o~ -If- -shy 1
~ 160 I ~ - TRENDS
i If - e1 - shy ( INOex 1940= 100)
bYpshyl ~
~ j (oS
140 irf ~- ~LOSAN6ELpoundS TRANSIT LINE5i W --
120 1 r
~ 1 WITED STATES 100
r--I
I--STATE OF CALIFORNIA 80
200 ~ LOS AN6ELES COUNTY
180 lt SELECTED TRENDS ~ lt~ ~ ( I NDpoundX 1940 = lOa)
+~ Xshy 160 ~O REGISTRATIONW l tI ~
lt
~ 140 ~
pshy -shy fx 1 - POPULATION
~ 120 f~ li~~ qshy
~ ~ ~ ~1
LATL PASSENGERSw
~ - - ~gt6 ~ ~ 100 r-- AU~ 101 t- ---AUTO REGISTRATION pc roo Io pltl i--
4 ltgt
llt4Glf ~~~shy PER 100 POPULA nON 80
240 LOS ANGELES
IfrZONE CA iN 7shy j I ltIshy 15-1 ISi I~ TRANSIT LINES10k IV 7 30 so 2WSl jr4tJl 7Ye
1 LOCAL rARe
220 OPERATING STATISTICSDRIVERS WAGfS 72 85 88 93 95 1-00 123 135 1-40 middot47 middot52 Iss 1middot75 81 $ PER 1I0VR -
( INDEX 1940 = 100)200 --shy 7 J X bullbullbullbulli
I- ~ I ~ DRIVERS WAGES180 V [r ~~ ON AN HOURLY BASIS
~~ shy~ 160 ~~ t~~ ~l
lJJ 6~ f- if ~~ASSENGER REVENUE
~ fl ~ V140 ~
OPERATING EXPENSES17 ~~I ~~ ~
Ill I--shy
---- r-shy120
I---AVERAGE RATE OF FAREl 6 t ~~bull ~~ ~~r-
1 lt1 t~middot ~~ ~ PER PASSENGER 100 -- yq M~ ~ r---
t---VEHICLE MILES OPERATED~ -00
80 52 )340 42 44 46 48 50
~
LOS ANGELES TRANSIT LINES APPLICATION NO35601 APPLICATION NO3728
General
The purpose of this engineering~economic roport is to set forth
the operating results of the Los ~eles Transit Lines for a twelve-month
period ending October 31 1955 under present fares and under fares proposed
in Application No 35601 and under present operations and under the plan of t-middot
motor coach substitution for certain rail lines as set forth in Application
No 35728 The results of operation Jill be shown under thefolloVing
bases
Case I-A Present Operations with Present Fares
Caso I-B Presont Operations with Proposed Fares
Case II-A Proposed Motor Coach Substitution l-li th
Present Fares
Case II-B Proposed Motor Coach Substitution with
Propo sed Fares
i~here Case I is referred to in the text it implies both Case I-A
and Case I-B and where Case II is referred to it implies both Case II-A and
Case II-B
Territory Served
Tho Los Angeles Transit Lines serves an area roughly thirteen miles
in diameter centered around the downtown business district of Los Angeles
For faro collection purposos this is divided into an inner zone approximately
nine miles in diameter surroundod by a ring two miles in ltlidth which is
_ 2 _
separated into seven second zoncs Additional third zone areas arc served
as follows
Eagle Rock and Griffith Park districts in the North
Beverly Hills district in the West
Inglmrood and South Gate districts in tho South
Further to the south two fourth-zone areas are designated as Hawthorno
Zone 4 and Hollydale Zone 4
Historical Aspects of Traffic Trends and Operating Statistics
Chart 1 provides a historical background for traffic trends and
operating statistics of Los Angeles Transit Lines for the period from 1940
to 1953
Present and Proposed Fare Structures
The fares currently charged and those re~uested in Application
Nc 35601 are as follows
Present Fares
I-Zone - 2-Zone 3-Zone J-Zone
Adult l5~ or 20cent or 25~ or )O~ or T Til + 5~ T loi T l5~
School 9~ l2cent l5~
T = Token sold at 7$100
Proposed Fares Set Forth in A~lication NQ 2~60l
Adult 29~ 35~
School 20cent
Sold in books of 40 rides
- J shy
In summary thepropos~dchalges aro - t - ~ ~- shy
(1) Eliminate tokens
(2) Increase single zone fare middot tQ 17 with 6~ increments for each addi tional zone
(3) Increase school single-zono cominUte fara to lO~ with 5cent incroments for each add~ tional zone
Changes in Operation - Case II
In Application No 35728 Los Angeles Transit Lines requests authority
to convert about 40 of its present street car serVice to motor coach service
and at the same time to convert ono line nbw operated by motor coach to trolley
coach Following is a list of the street car iines ~hich the company proposes
toconvort to motor coach
No and Name of Line Amount to be Converted
No 5 - Eagle Rock and Hawthorne Entire Line
No7 - So Broadway and Civic Center n II
No8 - W54th St and No Main st II No9 - W4Bth St-Lincoln Park In part From W end of
Line at Crenshaw Blvd and 48th St to Broadway and 11th St
FlI_ S Vermont and Union Station Entire Line
IIW _ W Washington and Highland Park In part From Broadway and Pa saQena Ave to N end of the line at Y middot)l~Y lv and Avenue 50
The motor coach line to be converted to trolley coach is
No and NRme of Line Amount to be Converted
Entire LineNo 41 - Alvarado Street
Passengers and Passenger Revenuo- Case rand Case middotII
Adult Passengers and Revenue
Because of the method of fare collection the company does not main-
t[in records of passengers carried HowErVer it does maintain a daily record
of cash fares and token fares This revenue informationi s used herein in
conjunction with a traffic check which ltlas m~de to determine the n~ber of
passengers by zones The traffic check was conducted in 1950 in connection
with Application No 32335 and the resulting percentage distribution by zones
of adult passengers is sho1rm in Column 1 of the following tabulation The
column to the right shows the percentage distribution used in this reportwhich
has been adjusted to reflect variation in diminution by zones and in the trea tshy
ment of certain passengers handled to Hollywood Park
Percent of Adult Passengers
As Used in As Used in ARglication )2225 This Rill2ort
l-Zono 674 666 2-Zonc 286 293 3-Zone 37 3~5
4-Zone 03 15
1000 10000
The following tabulation shows the fares in effect from the lattor
pc~rt of 1950 when the present pattern was established to date The first
column shows tho actua l adult I-Zone fare while the second column shows the
computed average adult fare for all zones Average Adult Fere
Period ~ Adult I-Zone Fare All Zones
12-10-50 to 1-23-52 lOp 1182l 1-24-52 to 11-2-52 15~ or 225p 14bull58
11-3-52 to 11-29~53 15~ or 340cent 1554
11-30-53 to Date 15~ or 7$100 1655
This average f are is estimated at 1664~ for the rate year under present fares because of the declining use of tokens
- 5 shy
The trend of total adult pa~s~ngers is shown in Chart 2 The
estimated adult revenue passengers for the twelve-month period ending ~
October 311955 under prosent fares are135363000 andare shown in the
chart at m1dpqint of the rate year Token use under present fares was
estimated to be 35 in each of the four zones The diminution or loss of
passengers due to increased fares was estimated to be 25 of the percentage
incrbase in the fare involved The estimated 135363000 adult passengers
developed in Chart 2 are also shown in Table 1 Coi1lffiIl 5 Line 13 and flrEl
distributed to the various zones on the basis of the percentages shown in
the above tabulation
Hollywood Park passengers are esti~ated to be 200000 annually
and the fare for these passengers is 10~ Although these Hollylood Park
passeng~rs may originate in the dOlntown area they become in essence new
passengers when they board the Hollywood Park Line since they have no transshy
fer privileges Adult passengers and revenue (shown in detail in Table 1)
for the twelve months ending October 31 1955 are summarized as follows
Passengers Revenue
Presont Fares 135563000 $22513000
Applicants Proposed Fares 130039000 25037000
Following is an estimate of school passengers and revenue and
U s Postal employee passengers and revenue
School Passengers Revenue
Case I-A Present Fares 3358000 $319000
Case I-B Proposed Fares 3245000 351000
6 shy
U S Post Office
Pas senger s Revenue
Case I-A Present Fares 616000 $ middot88000
Caso r~B Proposed Fares 616000 105000
Token Adjustment
It is estimated that based upon tho present experience of applishy
cant three tokens out of 1000 tokens sold or 0356middot will never be redeemed
This amount will be considered as an added revenue and is estimated at
$20000 under present fares
Other Revenue
From such sources as rent interest on franchise bonds charter
advertising and miscellaneous there is an estimat~d rovenue of $187000
under all cases
Revenue under Case II - Proposed Motor Coach Substitution (Application No 35728)
UnderCas8s II-A and II-B proposed motor coach substitution the
estimated rovenue will be the same as in Cases I-A and I-B respectively
Mileage
The estimated mileage to be operated during the rate year is
shOllTn in Table 2 This estimated mileage is based upon a study by
Mr William F Hibbard Associate Transportation Engineer of the
Commissions staff and is shown as a separate exhibit in this matter
- 7 shy
Operating and Maintenance Expenses -- Case I
Estimates of operating and maintenance expenses are shown in
Table 3
General
Unless otherwise stated in the following paragraphs operating
and maintenance expenses are based on experience and conditions currently
prevailing In estimating operating and maintenance expenses it is
estimated that 100 new 48-passenger diesel coaches will start operating
at the beginning of the rate year replacing older coaches now in
operation These new coaches will slightly increase the fleet cost of
tires and substantially decrease the cost of Account No 4140 - Maintenance
Expense
Wages All wages are included in the detailed estimates
shown in Table 3 at the level prevailing immediately
prior to ~ 1 1954
Wage Increase The wage increase which becomes fully
effective on December 1 1954 is sh~m separately
on Line 12 in Table 10 Results of Operation
Fuel The cost of fuel is based upon the current level
of costs including an ircrease in the Sales Tax
on diesel of 05 effective July 1 1954 for
the City of Los Angeles
Tires The unit cost of tires is based on that prevailing
under contract for the period July 1 to Decernber-31
1954 The estimate of the cost of tires reflects the
- 8 shy
~ - - -- -- - - shy
estimated higher unit middot tire cost per mile for the
loa ne coaches which are to be put in operation at
the beginning of the rate year
Power The cost of power reflects the increase recently
granted to Southern California Edison Company by
this Commission
Public Liability and Property Damage Insurance and Workmens Compensation Insurance Coverage for these types
of insurance is carried with Transit Casualty
Company the stock of which is owned by the following
affiliated or subsidiary companies
Percent of Common Stock Owned
National City Lines 30 Los Angeles Transit Lines 24 St Louis Public Service Company 46
Total middot 100
From 1953 Annual Report to the Insurance Department State of California The present premium rate charged by Transit Casualty Company to applicant is 7 of passenger revenue In this report as in pre~ous reports the estimate of the Commissions staff has been predicated on unit costs related to the number of passengers carried and tho vehicle miles operated The estimate for Case I is shown in Table 5
Operating Expenses - Case II
Case II - Operating expenses are shown in detail in Table 11
and are based on operations of Casc I adjusted to reflect the estimated
decrease in rail expenses due to the abandOnroent of lItrEiet car operations
as proposed in Application No 35728 the increase in motor coach expenses
re~uired by the substitution of motor coach service for street car service
and the increase in trolley coach expense due to the conversion of Line
No 41 from motor coach operation to trolley coach operation with a
corresponding decrease in motor coach expenses
- 9 shy
Operating Taxes - Case I
Franchise Taxes cmd Business Licenses
Under Case I Present Operationafrnnchise taxes to the City of
Los Angeles were determined by applying current tax rates to estimated
revenues
Ad Vnlore~ Taxes
The estimate for ad valorem taxes under Case I is based on an
assessinent of $6496250 and a tax rate of $67402
Fuel Taxes
Fuel taxes are based on the following per gallon rntes of Federal
and State Taxes
illA Cents ner Ga11Qn Effectiye Dates
Diesel Federal 11-1-54 to 3-31-55 12i ~ 4-1-55 to 10-31-55
State 7 11-1-54 to 6-30-55 ~ 2 ~ 7-1-55 to 10-31-55
Gasoline Federal 2 ~1-1-54 to 3-31-55 11
2 ~ 4-1-55 to 10-31-55
State 6 ~ 11-1-54 to 6-30-55 5i cent 7-1-55 to 10-31-55
Motor Vehicle Licenses
The estinate for motor vehic10 licenses is based on the registrashy
tion weight and vehicle license fees Which will be in effect during 1955
under equipmontrequiremonts as sot forth in the report by Public Utilities
Commission Associate Engineer Wil1in~ F Hibbard
- 10 shy
Trapsportati CD Ii CADse Tax
This license tax is assessed by the Board cf Equalization and
represents 3~ of the gross revenue derived from operations in non-incorporated
areas by motor and trolley coaches The estimate is based on
curront tax rates applied to estimated revenues
Pavroll Taxes
Tho ratos in effect aro 2 for Social s~curity taxos and 03 for
Federal Unemployment Insurance Paymonts to tho State Unemployment funds
will remain at zero as a sufficient accumulation of funds is presently
on hand It is estimated that 94 of applicants total payroll will be
subject to Social Security Tax undor the increased coverago offective
January 1 1955 and that 100 of the employees are subject to FUI taxes
at $3000 per year
Other Taxes
Other taxos include operatorsl licenses Foderal transportation
ta~ manufacturers excise taxes and other miscellnneous taxes The
estimate is based on actwd experience for the yeor ending May 31 1954
Income Taxes
State Corpor8tion Franchise Taxes have been computed at the
current rate of 4 Federal Income Taxes have been computed on tho basis
of a change in rate effective April 1 1955 On this basis the normal
tax 0 f 30 was used for five months of the rata year and 25 for soven
months of the rate year Tho surtax of 22 remains constant throughout
the year In calculating income taxes in both Cnse I and CasarI an
interest credit of $100300 was used
- 11 shy
Rate Base and Depreciation Expense
In General
In accnrdance wi th current Cornmi ssion practice of treating all
property en a remaining life basis the Commission Staff has made an
analysis of Applicont1s property As 0 rosult as of January 1 1954
1 Motor coaches of the series 6200 6300 6600 6700 6800
and 6900 (404 coaches) were put on a total life basis of
12 years This is considered reasonable in view of the
attained age and the condition of the fleet
2 The annual accrual of the Genoral Office Building (Acct 522)
was adjusted to reflect a totel life of 50 years
3 Buildings in Accounts 523 and 524 were assigned a remaining
life of 24 years with depreciation reserve adjusted to reflect
age-life condition
Under both Cpses I and II 100 nel motor coaches have been included
in the rate base as of November 1 1954 tho beginning of the rate ye~r
Other Lpnd (Acct bull 503) and Rights of Way (Acct 502) hewe been
adjusted to reflect estimated original cost
Under Cese I
150 motor coaches of the 6000 and 6100 series (including current
work orders for rebuilding) have boen deleted due to the inclusion of the
100 new coaches as well as tc conform to the equipment roquirements set forth in
Staff Witness Hibbards Exhibit ith 10 f ~r spares
All property on group plan depreciation reflects the current
4 rate of accrual with nermal additions and retiroMents tken into considerashy
tion
The 40 P C C crrs on uni t plan depreCiation wore extended as
of Innuary 1 1954 to a total life of 25 years
12 shy
Under Case II
As evidenced by correspondenco betoJeen the Commission and
Applicant and the request for changes in accounting practices as outlined
in a letter from the Applicant to the Commission under date of April 291954
it is assumed that applicant intends to completely convert to motor coach
operation by the end of 1965 The Rate Base under Case II assumes that all
property relnted to the rail and trolley coach oper2tion ltlill be fully
depreciated by that time This would include all rel~ted items of property
hitherto considered non-dopreciable those rel~ted ~o the present proposed
conversion havo been charged to the group plan depreciation reserve as of
November I 1954 those remaining 2xe depreciated over ~ 12 year period
boginning January 1 1954
150 coaches of the 6000 and 6100 series have been included in order
to satisfy oquipment requirements as outlined by Staff litness Hibbards 1
Exhibit No The work orders for rebuilding 83 of those coachos have
been put on a 3 year lifo (Soc Chart 5)
In conjunction wi th the rate base presentAtion there are shown in
Chart ) pictures and data of the streetcars and trolley coach equipment as
of September 1 1954 Camp~rt 4 shows ~ictures and data of motor coach equipshy
mont as of September I 1954
Amortization and Interest Allowance
Amortization and Interest allowance f or abandcnment oblig~tionsunder
Cases I and II is sho~m in Table 4 The estimates ccntained therein refloct
an income tax credit on the total amount of the obligations The estimate
under Case I is fer obligations incurred prior to 1954 and oblig~tionsconcerned
nV ttwith changos on tho ruld tTRtl lines made effective JUly 25 1954 Under
- 13 shy
C~se II is added the estin~ted obligation in connecticn with the abandonment
nsprop0sed in Application No 35728
Results of Operatirn
Ou-so I Relbvant infr-rr1pticn sh0vm in the f0regcing text ancl
in the tables is summarized in Table 10 - Estimated
Results of Operation - Case I and from this informashy
tion a rate of return and operating ratios are
calculated under Present and Proposed Fares
Case II Using the basic inf0rmation as used in Table 10 in
c0 njunction with the estimate of operating expenses
for Caso II as shown in Table 11 the rates of
return and operating ratins under Case II are developed
in Table 12 - Estimated Results of Operation - Case II
- 14 shy
LO S ANGELES TRANSIT LINES
TREN 0 OF WEEKLY REVENUE- PASS ENGER5 (E)(CLU SIVE OF POSTAL EMPLOYEES AND RIDERS ON SCHOOL FARES)
FEBRUARY 1952 TOJULY 1954 AND
ESTIMATE FOR 12 MONTHS ENDING OCT 31 1955
~ 3middot5 W w ~
a w 0
_ I cJ)
a 30 uJ 19 Z UJ cJ) cJ)
laquo 0
IL 0 25
([)
z 0 J J
~
bull ~ I
l T
-
- -
ltI-N
- 2
- wr-
u
- 2
--
w
- u
A I
1 ( A A I
j
~ J r 1f
I a V J 1 fv V V ~J
V 1IV I 1 II I
I I Jr 0
~
l) - 0 (c
rlt1
gt bull r gt 0 10 z I z ~
I I I w iw
I
I I EST I~ATE FOR 12 foONTHS ENDING OCTOBER 31 1955 w I UNDER PRpoundSENT FARES-
I w
u A - PASSENGERS PER WEEK bullbullbullbullbullbullbullbullbullbullbullbull 2 596 000
u B - PASSENGERS PER yEAR bullbullbullbullbullbullbullbullbullbull 135 363 000
- Z Ii
w I
w I
lt I
u u i
it i--0 w
~ - -lt 0-H gt- =-1--1 a 0
-Y
VI
I
I )
T ~20
JAN f EBMAR APRoMAY J UN JUL AUG SEPOCTNOV DEC JANFEB MARAP R MAY JUNJULAUG SE P OCT NOVmCJANfEB MARAPRMAY JUN JUL AUG S EP OCTNOV DE C JAN FEB MAR APR IoiIAY JU N gt- c-+shy
rv1952 953 954 1955 Wl
LOS ANGELES TRANSIT LINES ESTIMATE OF REVEruE PASSENGERS lID PASSENGER REVENUE
FOR 12 MONTHS ENDInG OCTOBER 31 1955 CASE I AND CASE II APPLICATION NO 15601 AND NO 35728
Present Fares Applicants Proposed Fares Est
Percent of Dlmin- PassenshyLlne of Total Fare Zone Passengera Revenue Fare utlon cera Revenue -=-----Ho-- Item Orldnalt Adjusted (Cents) Paus i cent (Cents) ~ cent cent
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
Adul t Passengers
lOne-Zone 15 65 58599 $ 8790 17 333 56648 $ 9630 2 1427 35 31553 4507 17 475 )0054 5109 3 666 666 1475 100 90152 $13297 86702 $14739
4 Two-Zone 20 65 25780 $ 5156 23 3middot75 24813 $ 5707 5 1927 ~ 13881 2677 ~ 481 13212 30)9 6 293 293 19751 100 39661 $ 783) 38026 $ 8746
7 Three-Zone 25 65 3476 $ 869 29 400 3337 $ 968 a-- 8 2427 22 1871 454 29 485 1 180 516 I 9 38 395 2475 100 5)47 $ 1323 511 $ 1484
10 Four-~one )0 65 1)2 $ 39 35 417 126 $ 44shy11 2927 35 71 21 35 488 68 24 12 ~ ----l5 29 75f 100 20) $ 60 - 194 $ 68 13 Sub-Total 1000 1000 ~ 135363 $22513 1300)9 $25037 14 Holly Park 10 200 $ 20 10 200 $ 20 15 Total Adult 13556) $225)) 130239 $25057
16 School 9 2797 $ 252 10 278 2719 $ 272 17 School 12 561 67 15 625 526 79 18 Total School )358 $ )19 )245 $ 351 19 Post Office 1427 616 $ B8 17 616 $ 105 20 Grand Total 139537 $22940 1)4100 $25513
cent (000) Omi tted ~ 1F Weighted Average Fare ~ If See Chart 2 + + As deter~ined by traffic checks and used in previous Staff reports
CHART 3
rr LOS AtJGELES
TRANSIT LINES
STREET CAR AN 0 TROLLEY COAe H
EQUIPMENT AS OF
H4 OR K4 OPEN END WOODEN SEATS H3 CLOSED ENDLEATHER S EATS SEPTEMB E R f 1954
JIshy
OLDER T YPE OF PCC CAR NE WER TYPE OF PCC CAR
8000 SERIES TROLLEY COACH 9000 SERIES TROLLEY COACH 9100 S ERI ES TROLLEY COACH
STREET CARS TROLLEY COACHES
ALL H3 H4 K4 PCC OTHER TOTAL 8000 9000
SEATS 48 48 48 12 5-61 SEATS VARIOU 44 4540-28 SEATS
EQU IPME NT ASSIGNMENTS UNDER PRESENT CoMPANY BASIS EFFECTIVE SEPTEMBER 12
9100
46 TOTAL
SCHEDULED SPARES
TOTAL ASSIGNED UNASSIGNED
TOTAL OWNED
SCHEDULED
SPARES
TOTAL ASSIGNED UNASSIGNED
TOTAL OWNE D
354 22 57 5
411 2 37 101 13
60 165 37 512 40 EQUIP MENT RE QUIREMENTS PRESENT SERVICE FOR RATE YEAR)
354 36
390 122 512
34 6
40 30
81 16
81 9
90 20
110 EQUIPMENT REQUIREMENTS WITH SERVICE AS P ROPOSED IN
ApPLICATIO N 28 (FOR RATE YEAR
SCHEDULED 20431 23 150 93 4 2 21SPARES 1015
TOTAL ASSIGNED 165 22525 10335 UNASSIGNED - 7
TOTAL RETAINED 225 11025 16535 To BE RETIRED 0190 2 7 37 TOTAL Now OWNED 60 110512 215 165 3735
-lE- ESTI MA TED BY P U C STAFF E
2 r
C
-
6600 SER IE S 6700 AND 6900 SER IE S 6800 SER I ES
L I NE 6200 No TE~ 5000 6000 yf 6 100 yf 6300 6400 6600
MACK G M e G M e G M e G MC G M C I i~IA K( amp UODEl NUMBER C-45 -CT TD-4502 rn -4505 TO- 4506 TDH-5103 TOH shy 36 1 2 YE AR BUilT l~ 1940 1941 1945 1951 1947 3 DATE I N SERV I CE 7 -40 1-42 7 - 45 7 - 51 7 -47 4 NUMBER O F CoACHES 50 55 95 200 25 57 5 PU RCHAS ED NEW OR US ED N N
6 S EATI NG CAPAC IT Y 45 45 45 51 36 45 40
~ LE NG TH - OUT S I DE 3~ -0 3~ - 0 37 -0 3~ -6 30 - 6 3~ - 0 3~ -0 WI DTH - OU T S IDE -Oil _-ttl 8 -0 -611 8 - 2 _OM I - 0
9 HE I CHT - OU TS I DE 9 -6 9 shy 5t 9 -6 9 t 4t ll 9 - 2 9 0 9 -6 10 A I SL( HEADROOM 76 77 78 78 76shy 8 76
11 A ISLE WI DTH 19 2 1 26 22 22 20 12 TY PE O f DR I V( HYD HYD HYD HYO HYD HYD
13 BRA KE HORSE POWER amp FUE L 165io) 165( 0) 165(0) 110(0) 165(0) 165(0) 14 Bo DY f RAME MA TE R I AL AL AL AL AL AL NOT G I VE N 15 Bo DY PANEL ~1ATE R I AL AL AL AL AL AL NO T GI VEN
16 ROO F MATER I AL AL AL amp ST AL AL amp ST AL amp ST NO T G I VEN
~ ~ - AT DCC CMBER 3 1 1953shy14 26 15298AV ER AG E INVE ST PER CoACH $ ~ 21962 $ 13 992 17 60 14 209
19 INVESHIENT 1 354 9~ 3 059 506 549 044 7 97 5~ 2 lt164 650 99 466 10 000 509 20 RE SE RV E 1340 6 2 462 923 135951 503 6 1369 1 02 90 896 7 147 497
21 REM AIN ING VALUE (I NCL SALV) 14 250 596 583 413 093 293 869 1 095 548 8 570 2853 012 22 REMA I N I NG LIF E lOYR BAS I S 22 MO 90 MO 43 MO 52 MO 9 MO
23 REMAIN I NG L IFE 12YR BAS I 46 MO 90 MO 67 MO 76 MO 33 MO
yf THC COS T OF REBU IL DING 102 CoACHES OF THC 6000 AND 6 100 SE RIE S NOT I NCLUDE D HEREI N (SCE NEXT PACE)
1941 AN D 1942 MA T ER I AL S WE RE SuBJ ECT TO PR I OR I T ( S AND THEREFOR E STEEL WAS USE D IN PLACE OF
ALUMI NUM FO R BO DY FR AMES PAN EL S AND ROO FS I N SO ME COACHE S O F TH E TD- 4505 SERI ES
G - GASOl I NC D - D I CSE L AL - ALUM I NU M ST - Srr CL HYD - HYDRAUL I C
lt~i
~~4
CHART 4
LOS ANGELES TRANSIT LINES
MOTOR COACH EQUIPMENT
AS OF
SEPTEMB ER 1954IS_T 6000 SER I ES
6200 AND 6300 SER I ES
6
5 CHART
1~A~PLE OF THE DAMAGE TO BODY PANE LS M D RI VET ED JOINTS
2 - COACH WITH ALL BODY PANE LS Il l NDO V FR M1ES M~) SOIIE BO DY BRAC IN G REMOVED
l
LOS ANGELES TRANSIT LINES
PROGRAM OF
REBUILDING MOTOR COACHES
OF THE
6000 AND 6100 SERlES
j - PAR TI AL Re STO RA TI ON SODY PA NE LS Ix I I I )SI I ELD FRA Il E REPLA CED AFT ER kt C~ D I T I ON 116
I+ - AL L BO DY PANE LS AND S I DE W I~ DO J FRAhi ES RE shyPLACED AND ~ ESTO~ED
5 -INT ER IOR SHOW IN G CO MPLET E RE MOVAL OF SEATS AND OTHE R AC COUTERM ENTS REPLACED OR RECOND ITIO NED
6 -COMP LETE D I NTER l OR - t EIJ FLOO R
COV ER IN G WIT H S EAT CUSH IONS ETC
7 - COMP LET ED EXTER l OR COACH REPAI NTED AND READY FOR SERV I CE
I N 195 1 Los AN GELES T RANS IT LINES I NAUGURA TED A PROGRAM OF REBU IL D I NG GMC CoACHES OF THE
6 0 00 (BU ILT IN 1940) AND 61 00 ( BU ILT IN 1941) SER IE S A s OF JU LY 1954 62 COACH ES HAD BEE N
REBUILT WITH 40 ST ILL ON WORK ORDERS BUT IN PROCeSS THE CURRENT EST IM AT ED CO ST OF THIS
P ROGRMil I S AN AV ERAGE OF ~3500 PER COACH THE P U C S TAF F EST IMA TES THE LIF E OF TH ES E
COACH ES TO BE AN ADDIT IO NAL THR EE YEAR S FRO M DATE OF COMP LETI ON COS TS OF REB UILDING AR E
SHOWN I N THE RATE BAS E RE LATIV E TO THE APPROP RI ATE WORK ORDER AN D THEREFORE ARE NOT INCi UDEu
IN THE I NV ESH IENT FOR 60)0 AND 6100 S ERI ES COACH ES SHOWN ON CHAR T No 4
LOS ANGELES TRANSIT LINES SSTIMATED RATE BASE AND DEPRECHTION EXPENSE
12 I~ONTHS ENDING OCTOBSR 31 1955 CISE I - VnTH PRY-SENT METHOD OF SERTICE - APPLICATION NO 35601
Gum October 31 1954 As of October 31 1955
Line
No Item (1)
Iccnunt Number Invcstment
(2)
(3) Reserve
(4)
Inve stmen t Less
Reserve (5)
Remaining
Life (6)
In
Inve s tIDen t Less
vestment Reserve Reserve (7) (8) (9)
Depreciation Expense RAte YeAr
(10) LAND
1 2
Rights of VVAY Other Lmd
502 503
S 426974 1931112
$ 426974 1931112
$ middot 426974 1931112
$ 426974 $ 1931 112
EQUIP~NT ONl~ITDEPRECI~TION
3 Auto Tr011ey pcc53033Jf~034288 $ 7167640 $ 6866648 V3rious $14034288 $ 8125353 $ 5908935 $ 957713
PROPERTY ON GROUP DEPRECIATIJN OverheAQs
4 Engineering 501 $ 44651 $ 44651 OrgAnizAtiorfshy 546 601749 601749~ 5
6 Interest 547 middot 916884 916884 7 Gnding 504 1117084 1118084 8 All Other 505-545 27021634 4 Base 27141634 _____ _________ 9 Suttotal
(Lines 4 to 8) $29702002 $22441215 ~ 7260787 $29823002 ~23516286 $ 6306716 $1081071_
10 Tr)W(Lines 123 amp 9) ~46094376 $29608855 ~16485521 $46215376 $]1641639 $14573737 $2038784
11 RATE BASE Use - $2039000 12 Avenge 0f $16485521amp ~1+573 737 $15530000 13 Work in Progress 100000 14 M1terials amp Supplies 735000 15 Bond Deposit - City Fnnchise 411000 16 Deposit for PL Insurance 150000
17 Totil RAte BAse $16926000 8 t ~
-It- rhjor PArt of Acct 546 is Supervisinn --J
-----
LOS ANGELES TRI-NSIT LINES ESTThiIiTED Ri1TE BASE AND DEPRECllTION EXPENSE
12 NiONTHS ENDING OCTOBER 31 1955 CIlSE II - SSUMING MOTOR COACH SUBSTITUTION ON CERTHN RAIL LINES AS PROPOSED m iiPPLICilTION NO 35728
---- --------------- As f Oct)ber 31 195amp As of Oct0ber 31 1955 Inve sUn8nt Investment IBpreciaticn
Line Account Le ss REffiainin~ Less ExpensE No Item Number Inve-stmcnt ReS8riTe Reserve Life Investment Reserve ~ Reserve Rate Yeqr
(T) T2) 0) (Ii) (5) (6) (7) (8) (9) (10)
Ll~ND
1 Other LAnd 503 ~ 1925510 $ Ci 1925510 ~ 1925510 $ 1925510
EQUIP1A~NT ON UNIT DEPRECIATION 2 itutoIrol1eyPCC 5))3338 $16392563 $ 9323673 $ 7068890 Various $16392563 ~10391985 $ 6000578 $1068312
BUILDJNGS 3 General Office-~ 522 $ 916255 $ 563016 ~ 353239 1917 Yrs$ 916255 $ 581446 $ 334809 $ 18430 4 Shops Grgs Admin 523 amp524 2733772 1013500 1720272 2320 Yrs 2733772 1087633 1646139 74133 5 Subtotal (Lines 3 amp4) 3650027 ~ 1576516 gt 2073511 igt 3650027 11669079 ~ 1980948) 92563
~ PROPERTY ON GROUP DEPRECIATION Overheaas
6 Engineering 501) 7 Organizqtion 5~6) tt 1563178 ~ 1563178 8 Interest 547) 9 Grlding 504)
10 Righ ts of Vgy 502 117922 117922 11 All Other 505-5h5 15 651 31 7 15 771 31 7 ~---7-=-~-- lr-r-----=~ -x---r---~ 12 Subtotal (Lines 6 to 11) )17332417 $11343350 ~ 5989067 1117 Yramp$17452417 ~11833307 ~ 5619110 ~ 495957
13 Totql(Lines 125 amp 12) ~39300517 822243539 ~17056978 839420517 023894371 015526146 01656832
14 RATE BASE Use ~1657OOO 15 Avcr~ge of ~1705697B qnd )15526146 016292000 16 Nwk in Progre s s 100000 Am)unts sh)wn include lpplic3ble -werheqds fr)ll 17 Haterills amp Supplies 735000 Accnunts 546 amp 541 18 Bond Deposit - City Frqnchisc 411000 cent Investment ~d depreciation reserve assumes all 19 Deposit for PL Insurqnce 150000 retirements for the lines to be cmiddotmvcrted 1--3
20 Use Vqlue - Fully Depreciated CJtches 1)2000 ~re m~de 3S ) f November 1 1954 qnd that the ~ full unnunt middotf r e tirements qre charged to the EJ
21 Tot-l R1te Blse ~17840000 reserve co
10S ANG3LSS TRANSIT LI~S
INVESTWNT DSPRCIATICN R~SsRVS AND EXPSNS~ FOR ~QUIPMLNT ON UNIT PLAN DEPR3CHTION
CASES I AND II APPLICATIONS NO 35601 AND 35728
As of Oct0ber 31 ffi4 As of October 31 1955 Line NoTotal Investment fnvestment Depre No Item of Life Investment Reserve Less Investment Reserve Less Expense
Units Reserve Reserve Rate Year (1) (2) (J) 4) - ---(~ CD) en -- --8)----- -(9j- (10)
For Case I 1 Motor Coach Groups
62006300 66-6900 hOh 12 Yrs$6421159 $4728599 ~1692560 ~ 6421159 $ 500 1011 ~1330lh8 $ 362412 2 5000 6hoo 75 10 II 1486387 77~175 711212 1h86387 92h851 561536 149676 3 Coaches on order 100 10 II 2285400 2285400 2285400 2265J~0 2058860 226540
II
I 5 Automobiles 51 V3r 99485 50916 h8569 99485 66540 329h5 15624 ~ 6 Trucks amp Service Cars 56 II 280584 250572 30012 280584 265813 lh771 15241 I 7 Misc( Fare BoxesMotors) 170193 115191 55002 170193 122271 47922 7080
h Trolley Coaches 110 15 2108h09 908560 1199849 2108h09 1Oh6116 1062293 137556
8 Total of Lines 1 to 7 ~12851617 ~~6829013 ~02260h ~12i351617 ~ 77h3lh2 $5108475 $ 914129
9 PCC Rail Cars 40 25 rsJ~ 1182671 ) 338627 gt 84h04h 1182671 ~ 382211 ~ 800460 $ h3581~
10 Case I - Line 8 + Line 9 $14034288 $7167640 $6866648 ~14034288 $ 8125353 t5908935 $ 957713
For Case II
11 6000 amp 6100 Series MC 150 FD ~ 2092963 $2070463 ~ 22500 $ 2092963 $ 2070463 $ 22500 12 Work orders on 6000s
amp 6100 s 3 Yrs 265312 61860 203452 265312 144007 121305 $ 82147 13 PCC Rail Cars 401717 1182671 362 337__ ~~~ 334 1182671 43473 ___748298 72036
14 Case II - Lines 8 + 11+ 12+ 13 ~16392563 9323673 n068890 $16392563 ttl0391985 ~6ooo578 ~1068312
t-3
125 other PCC Cars are in Group Depreciation Schedule G ~
Note579 motor coaches under Case I and 729 under Case II D
LOS AlJGELES TRANSIT LnlES TABLE 10 ESTIMATE]) RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD E1TDUTG OCTOBER 31 1955 CASE I - UNDER PRESENT OPERATIONS
12 Months Jan-June
Line No Item
Tab1e Ending or May 31 1954 Page Fe fer
(2)
Book Record
(])
1954 Annualized
Book Record
(4)
Case I-A Present
Fares (5 )
Case I-B Applicant l s
Proposed Fares
(6)
1 Vehicle Miles T2 34036066 33569520 32747000 32440000
Revenue 2 3 4 5
Passenger Revenue Unredeemed Tokens Other Revenue Total
T1 P7 P7
$24849150
122402 $25044557
$24517866
183810 $24 701676
$22940000 $25513000 20000
1821 000 182 000 $23147000 $25700000
6 7 8
Operating Expenses Rail Trolley Coach Motor Coach
T3 T3 T3
$ 8493744 1442232 8622956
$ 8575232 1451430 8 n6470
$ 8115900 $ 8047000 1366000 1355400 8144200 8088900
9 10 11 12 13
Sub-Total Depreciation Operating Taxes Wage Increase Total
T7 T6
18563932 2176608 1676358
$22416898
18743132 2185804 1760600
$22689536
17626800 17491300~ 2039000 2039000 1663800 1711700
439800 436500 $21769400 $21678500
14 Operating Income $ 2627659 $ 20J2JJQ $ 1377600 $ 4021500 15 Other Inc amp Inc Deduct 21258 (9328)
16 Net Inc Before IncTaxes 2635217 2002742 1377600 4021500 I 17 Income Taxes (St ampFe~) 1302758 1026568 647500 1 999 000 18 Net Operating Income 1332459 976174 730100 2022 500 i 19 Allowance T4 112216 80752 1541000 1541000 20 Net Income $ 1220243 $ 895422 $576100 $ 1868500
21 Rate Base T7 $17393000 $16727000 $16926000 $16926000 22 Rate of Return 70~ 535 340 1104
Operating Ratio 23 Before Income Taxes 9405 8435 24 After Inc Taxes ampAllow 9751 927)
Not Applicable
Computed by PUC Staff Allowance for interest and amortization of abandoned property (Red ]figure)
- 31 shy
IDS ill~GElES TRANSIT LINES ESTIMATE OF OPERATllIG EX-degENSES JuID TAXES
FOR 12 f10NTHS ENDING OCTOBER 31 1955 CASE II - KOTOR COACH Sl~STITUTION - j~PLrCATION NO 35728
Table or Line Page Hotor Trolley
~To Item Reference Streetcar Coach Coach Total
l 2 3
4
I S
rv 6VJ
I 7 8 9
10 ll 12 13 Ih 15 16
17
13
(ll- -- shy
Vehicle Miles Case I - Present Operation Case II - Proposed Operation
Increase in i1iles
Opere amp I1aint Expense - Case I
Changes in Expense Due to Conversion Way and Structures Substation Operation Rail Crossing Protection Vehicle Maintenance Servicing of Vehicles Tires - Hotor Coach Equipment Operators vJages Fuel Oil or Power 21 amp PD Insurance ~Jorkmen I s Compensation Insurance Training Drivers for Conversion
Total Increase in Expense
Oper amp i1aint Expense - Case II (Line h +
Operating Taxes - Case II
(Red Figure)
(Z)
T2 T2
T3
Line 16)
D)
11887000 6691000
(5196000)
~ 8115900
t (11500) (42200) (55000)
(270900) (76900)
(1232900) (219800)
(liT shy
18314000 23h67000 5153000
amp 314~900
~
355000 h3300 32500
1154300 153000
-C5) (6)
2546000 32747000 2949000 33107000
403000 360000
S 1366000 ~gt 17 626800
If (144500) 1 ~ v$ ltW (42 200 ) - bull (55 000 ) 7HmiddotVj
19200 103300 M~ f~
3000 ( 30600) A N- i
32500 94400 15800 14600 (52206)
(1l1100) ~ [ (1200) Glh
30000 ~i
p (258200)
$17368600 r3
c~ 1786600 cr ill
I- CD
I- i-
TABLE 12
LOS ANGELES TRANSIT LINES ESTIMATED RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD ENDING OCTOBER 11 1955 CASE II - MOTOR COACH SUBSTITUTION - APPLICATION NO 15728
Table Case II-A Case II-B Line Item Refer- Present Proposed
Nos i FSles Faresect~nce
( 1) (2) (3) ( 4)
1 Vehicles Miles T 2 33107000 32817000
2 Operating Revenue T 10 $23147000 $25700000
O~erating E~ense
3 Operating and Maintenance Tll $17368600 $17234900 4 Depreciation T 8 1657000 1657000 5 Operating Taxes Tll 1786000 1837800 6 Wage Increase 434ZQQ 431 lt)00
Total $21246300 $211612007
8 Operating Income $ 1900700 $ 4538800 Other Inc amp Inc Deductions it 119
10 Net Income Before Income Taxes $ 1900700 $ 4538800 11 Income Taxes (State amp Federal) 214 200 2262 400 12 Net Operating Income $ 985800 $ 2275400 13 Allowance T 4 ~ 2090QO ~ 20200Q 14 Net Income $ 776800 $ 2066400
15 Rate Base T 8 $17840000 $17840000 16 Rate of Return 435 1158
012erating Ratio 17 Before Income Taxes 9179 8234 18 After Income Taxes amp Allowance 9664 9196
Not Appli cable
Allowance for interest and amortization related to streetcar abandonment of the past and for abandonmcnts proposed in Application No 35728
-33shy
LOS ANGELES TRANSIT Ln~S ESTH1ATE OF HILES TO i3LJ OERATEJJ FOR THE TlJ7IVE HONTHS-ENDING OCTOBER 31 1 q55
A UNDJilR PRESENT OPERATIONS B WITH HOTOR COACH SlfilSTITUTION AS PROPOSED IN APPLICATION NO 35n8
CASE I - PRESENT OPERlTI03S Present Fares Propose(l Fares
Estimatet Estimated Estimated Hiloago Estimated Est T)imirDl l4i Recluc-Estimatea Miles Miles (a) Decrease In Traffic Roduction Mileage of Traffiction Below Proposed
Item As Shown In Miles of the Decline Duo TrafficPresent FaresBelow TrafCol6 Due to Fares PDC Staff Dacrease9-15-54 to Docline (2) x At PrescntDiminution Col 6 x
________ (3) x (4) (100 - Col 5gt Fares (7) x (3) (100 - ColFJdlibLLJamp~Passengers ~-55 8) (1) (2) (3) (4) (5) (6) (7) (8) (9)
streetcar 12041861 30 43 L29 11587000 39 117 11748000
Trolley Coach 2546000 92573633 25f~ 43 1 075~b 3 0 975 2521000
Motor Coach (b) ]8li-~4 849 20 4 3~ 86 10 18106000 39 78 18163000bull I~
f-- ---J Total (b) 33080343 32739000 32432000
CASE II - OFSRATIONS PROPOSED IN APPLICATION NO 15728 Present Fares Proposed Fares
Item Estimatefl 1JIiles(a) As SnownEstimate~- Miles Present FarosEstimate~ Milos Proposed ___-~___------I=n~PDCStaff Exhibit No Col lOx (100 - Col 5) Faros Col llx (100-CQl~
(1) (10) (11) (12)
Stroetcar 6778211 6691000 6 61300O
Trolley Coach 2981376 2949000 2920000
Motor Coach (b) 236629)) 23459 1000 2276 7000
~Total (b) 33422542 33099000 32809000 ill r trl
(a) Based on th~ l ovel of traffic of Septombor 1954 I)
(b) To the estirl8ted milos shown here should bo a~dod 7500 Charter Miles
t-3
- - - - - - -
LOS kJGELES TRANSIT LINES Table 3 Sheet 1 of 3ESTIMATE OF RAIL OPERiTINGifiPENSES
CASE I - UNDER PRESENT OPERATIONS
Company Estfor 12 Mo~ Records Ending
Acct Jan-May 1954 103155 No I t e m Annualized Present Fares
Car Miles Way and Structures
1-24 ill Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 Superintendence 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conducting Transportation 63 Superintendence 64 Conductor Motormen etc 66 Car Service Emp 67 Miscel1 Car Service Exp 70 Car House Empa
Var other Cond Transp Accounts Total
Traffic 79 Superintendence 80 AdvertiSing
Total General
83 Gen Off - Sal and Exp 84 Gen Off Emp - Sal amp Exp 85 Gen Off a SuppJies amp Exps 88 Pensions
(93 Insurance PL amp PO (93 Insurance Workmens Comp (93 Insurance Other
Var Other General Accounts Total
Total Rail Operating Expense
Cents per Car Mile
12573226
$ 722615
$ 79078 759547 146522
$ 985141
$ 18190 174643 482945
23033 $ 698 811
$ 438900 3257666
104525 76608
351696 57240
$ 4286635
$ 6346 18353
$ 24699
$ 83645 123281
35570 4818S8 765019 46840 13664
287090 $ 1836967
$ 8554874
68004cent
ll887OOO
$ 722600
$ 79100 671200 147900
$ 898200
$) 18200 174600 547200
28900 $ 768900
$ 438900 2890900
104500 72200
351700 59600
$ 3917800
$ 6300 18400
$ 24700
$ 78900 123300 35600
456600 750400 ~ 43100 13700
282tl00 $ 1783700
$ 8115900
6827cent
Co
)
-
(1
I
flI
Car Miles Oper middot Exp Case I-B - Applicants Proposed Fares 11748000 $ 8047000 ~ Expenses Variable with Car Miles Wage rates used herein are those whieh
Ac30amp33 565 cent~ile prevailed immediately prior to 6154 59 460 The cost of the wage increase which 64 2432 tecomes fully effective on 12154 is 70 148 50 of total shown separately in Results of
Total 3605 centmile Operation table ~ See Table 5 for amounts under Proposed Fare
- 18 shy
- - - - - ------
LCB ANGELES TRANSIT LINFS Table 3 ESTIMATE OF TROLLEY COACH OPERATING EXPENSES Sheet 2 of 3
CASE I - UNDER PRESENT OPERATIONS
Acct No I t e m
Coach Miles Way and Structures
1-24 All Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 --superintendenoe 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conduoting Transportation 63 Superintendence 64 Operators Wages 70 Car House Employees
Var Other Condo Transp Accounts Total
Traffic 79 Superintendence 80 Advertising
Total General
83 Gen Off - Sal amp Exp 84 85
Gen Off Emp - Sal amp Exp Gen Off Supplies amp Exps
88 Pensions (93 Insurance PL amp PD (93 Insurance Worlanen s Comp (93 Insurance Other
Var Other General Accounts Total
Total Operating Expense
Cents per Mile
Case I-B - Applicants Proposed Fares
Expenses Variable with Coach Miles Acs 30amp33 477centmile
59 3038 64 2342 70 075 50 of total
Total 3232centjmi1e
~ See Table 5 for Amount Under Proposed Fares
Company Estfor 12 ME Recorda Ending Jan-May 1954 103155 I ~
Annualized Present Fares ~
2629188 2546000
$ 26518 $ 27000
$ 32628 $ 32600 125469 121400
11012 9600 $ 169109 $ 163600
$ 3770 $ 3800 35770 35BOO 75017 86000 1
8417 9000 $ 122974 $ 134600
$ 99161 $ 99200 612513 596300
38273 38300 21802 21500
$ 771749 $ 755300
$ 979 $ 1000 3588 3600
$ 4567 $ 4600
$ 15134 $ 12100 22990 23000 5669 5700
87614 83000 165089 97300 I
8516 8000 ~ 3054 3100
49076 48700 $ 357142 $ 280900 6
$1452059 $1366000
5523cent 5365cent
Coach Miles Oper Exp 2521000 $1355400 -- -0
Wage rates used herein are those which prevailed immedshyiately prior to 6154 The cost of the wage i~crease which becomes fully effective on 12154 is shown separately in Results of Operations table
- 19 shy
LOS ANGELES TRANS1 LINS TABLE 3 ESTIMATE OF MOTOR COAOH OPERATING EXPENSE Sheet 3 of 3
CASE I - UNDER PRESENT OPERATIONS
Company Estimate for Records 12 months
Jan - May Ending Acct 1954 103155 No I t e m Annualized Present Fares ~
Coach Miles 1832~158 18314000 Equipment Maintenance amp Gara~ Expense
4110 Supv - Shop and Gar $ 142788 $ 142800 4140-2 Repairs to Rev E~uipment 1097376 848800 4150 Servicing Rev Equipment 308373 307700 4160 Tires - Rev Equipment 123305 125200 Var Other Maint Accounts 151444 147300
Total $1823286 $1571800 Transportation Expense
4210 Supervision of Transp $ 487284 $ 487300 4220 Drivers I vrages 3767184 37589001= 3) bull
4230 522175 523800 )0
4240 Oil for Revenue Equipment 17256 19500 JOJ
Var Other Trans Exp Accounts 60153 58200 Total $4854052 $4847700
Traffic and Advertising 4470 Advertising $ 21593 $ 21600 Var Other Traffic Accounts 7)329 76500
Total $ 94922 $ 98100 Insurance
4510 Salaries and Expenses $ 18818 $ 18800 4520 Insurance PL amp PD 786322 542OOOp 4541 Insurance Workmens Compo 51458 50100p Var Other Insurance Exp 11357 11700 - shy
Fuel for Revenue Equipment _
J Total $ 867955 $ 622600 Administrative and General
4611-2 Gen Officers - Sal amp Exps $ 90806 $ 73500 4613-6 Gen Off Employees - Sal ampExp 138043 137000 4620 Law Expense 12910 16000 4630 Gen Office Supplies amp Exp 51689 44800 4640 Communication Expense 41143 45500 4652 Employees vlelfare 525737 498200 4655 Purchasing amp Stores 120790 120800 Var All Oth~r Adm amp Gen Exp 70090 53900
Total $1051208 $ 989700 Rents 15000 15000
Total Motor Coach Expense $8706423 $8144900 Cents per Mile 47middot50cent 4447cent
Coach Miles Ouer Exp Case I-B - Applicants Proposed Fares 18171 000 $8088900 -----shy
Expennes Variable with Milos Wage rates used herein are those which Ac 4140 463centmile prevailed immediately prior to 6154
4150 084 50 of total The cost of tho wage increase toJhich beshy4160 068 comes fully effective on 12154 is clnwn 4220 2052 separately in Results of Operation table 4230 286 4240 011
Total 2964centmile cent See Table 5 for Amount Under Proposed Fares 20 shy
TABLE 4
IDS ANGELES TRANSIT LUIES AMORTIZATION AND INTEREST ALLOWANCE
PAVING AND REMOVAL OBLIGATIONS - CASES I AND II APPLICATIONS NOS 35601 AND ~5728
A - Obligations from Abandonments Prior to 1954
Yearly Amortization $132000 Interest 16000
Total $148000
B - Obligations from Abandonment of Portions of IV and Rlt Lines (July 25 1954)
Yearly Amortization $ 4000 Interest 2000
Total $ 6000
C - Obligations from Abandonments as Proposed in Application No 35728 (November 1 154)
Yearly Amortization $ 35000 Interest 2JOOO
Total $ 55000
For Case I - Items A + B $154000
For Case II- Items A + B + C $209000
Includes cost of removal of electrical distribution system ($123700) and of substation equipment ($21600)
- 21 shy
LOS ANGELES TRAl~SIT Lli~S
RJBLIC LIABILITY PROPERTY DAl1AGE AND 1l0RIJftElI i S CCMFEi-TSATION EXPENSE illLATED TO SOUln~EbTT MILES Aim R3W-RLS PAS~lWEFS
CASE I - UNDER PRHSENT OPSHATIONS 1947 - 1950 Inc Jan-May Est FOr
Line Ito m 1951 1952 1953 195412 MosEnd No Total Av per Yr Annualizod 10 31 55
1 Lossos paid (n) $ 3890 $ 972 $ 1082 $ 902 $ 580 $ 262 2 Losses ostimato~ (a) 39 10 52 280 634 881 3 Reinsurance costs (a) 282 71 62 69 ____81 65 4 Total Losses_amp Insurance (a) $ 4211 $ 1053 $ 1196 $ 1251 $ 1295 $ 1208
5 Expenses paid (a) $ 1536 $ 384 $ 353 $ 385 $ 242 $ 170 6 Expenses estimated (a) 7 2 _ __ 11) 61 182 24S 7 Total expenses (a) $ 1543 $ middot 386 ~ 363 $ 446 $ 424 $415 8 Total LossesReiils amp Exp (a) $ 5754 $ 1439 1559 $ 1697 1719 $ 1622
(Lina 4- + 7) I 9 Number of claims filed 59991 14998 11588 11104 10246 9228
N
N 10 Vehiclo miles (millions) 153 4 384 356 351 346 336 I
11 Revenue Passon~crs (millions) 10093 2523 1924 1746 1661 1531
12 Loss Per 11i1 lliilos (4 ~ 10) ~27451 $27451 ~33596 $35~641 $37428 $35952 $35000
13 Loss Por i-Hllion Pass (4 11) $ 4172 $ 4172 ~ 6216 ) 7165 ~ 7797 $ 7890 $ 7500 14 Expensos por claim (7 f 9) h
ltfgt 2572 Y 25middot72 i) 3133 $ 4017 4138 $ 4497 $ 45 15 Claims per million miles (9 10) 391 391 326 316 296 275 280
16 Claims per million pass (9 11) 59 59 60 64 62 60 60
Ul p- CD (I)
(a) Thousand of dollars amp8
t-G o ~ H
J N
TABLE 5 LOS ANGELES TRANSIT LUTES Sheet 2 0 f 2
ESTIMATE OF PUBLIC LIABILITY AND PROPERTY DAMAGE AND WOBKMElJ 1 S COMPENSATION EXPENSES
FOR 12-MONTH PERIOD ENDING OCTOBER 31 1955 UNDER CASE I-A AND CASE I-B - PRESENT OPERATIONS ~lITH PRESENT amp PROPOSED FARES
Line 110
Cost Factors 1 Claims per million revenue passengers bull bull bull 2 raquo raquo vehicle miles bull bull bull 3 Expense per claim bull bull 4 Losses per million revenue passengers
raquo raquo vehicle miles bull bull bull bull 5 bull bull
60 280 45
7500 35000
Estimated Expense For PL and PD and Workmens Compensation Insurance
Case I-A Present Fares
6 Number of rovenue passengers (millions) 1395
7 Number of vehicle miles(millions) 3275
A - Basod on Number of Passengers 8 Losses 9 Expense
10 Total
B - Based 11 Losses 12 Expense 13 Total
$1046200 376700
$1422900
on Number of Vehicle Hiles $1146200
412700 $1558900
14 Average of A and B (PL amp PD and Workmen 6 Compo - $1490900
15 Workmens Compensation Insurance 101~200(a) 16 PL and PD Insurance 1389700
Distribution of Total PL amp PD Percent
17 Rail Operations 541 $ 750400 18 Trolloy Coach Operations 7 97300 19 Motor Coach Operations ~ -542000 20 Total 100 $1389700
Case I-B Proposed Fares
1341 3244
$1005700 362100
$1367800
$1135400 408700
$1544100
$1456000 100200 (b)
1355800
$ 732~100 94900
528800 $1355800
(a) Rail=$43lOO Trolley Coach=$8000 and Motor Coach=$50100
(b) Rail=$42 600_ Trolley Coach=$7 ~ 900 and Hotor Coach=$49 (00 _ --- I
- 23 shy
lA3LE 6
LOS ANGELES TRANSIT LINES ESTIHATE 041 OPERAT1NG TAXES
FOR 12 MONTHS ENDING OCTOBER 31 1955 CASE I - PRESENT OPERATIONS
APPLICATION NO 35601
Book Record Case I-A Case I-B L1ne I t e m 12 Months Present Proposed
No End 5-31~ Fares Fares(~ ) -=-----=-(3)~--=--~r(4~)~-(1)
1 City Franchise Taxes $ 473687 $ 434600 ~ 481900
2 Property Taxes-Ad Valorem 457963 435000 435000
3 Fuel and Oil Taxes 360580 337700 335100
4 Motor Vehicle License Taxes 136984 Ib8 900 168900
5 Transportation License 15600 21~00 (3 B of EHlshy
6 payroll Tuxes 265000 262500
Other raxes 7000 70007
Total ~ip 1 603 800
Net after weight fee credit
-24shy
LOS AJGSL~S TRA~lSIT LIl-RS RPPLIC~TION NOS)5601 AND raquo728
TABLE OF CIJNTNTS
Tit 1 e Page No
Chart 1 - Transit Passenger Trends Los Angeles County Trends and Los Angeles Transit Lines Trends 1
Gerter81 Presentation 2
Chart 2 - Trend and Estimate of Adult Revenue Passenger - Case I ar1d II 15 Tlble 1 - Estimate of P3ssengers and Passenger Revenue - CClse I mo II 16 Table 2 - Estimate of Mileage-Case I and Caso II 17 Table) - Estimate of Jperating ~d Maintenance Expense - Case I
Rail 18 Trolley Coach 19 Motor Coach 20
Table 4 - Estirnlte of Allowlllce s for Amortization md Interest Due to Rail Ab l11 donments - Case I lnd Case II 21
Tlble S - Sstimlte of Cost of Public Liability md Property Dlmage gnd Workmens Compen sa tion Insurance - Caso I 22
Table 6 - Estimlte of Operlting Tuces - Case I 24
Chart) - Pictures md Data - Street Car lnd TrollDY COlCh Equipment ~S of September 1 1954 25
Chart 4 - Pictures lnd Datl - Motor COlch EquiomGnt middot1 S 0f SeptGrnber 1 1954
Chart 5 - Pictures lnd Dlt1 - Rebuilding Motor COlches of the 6000 Rnd 6100 Series 27
T1b1e 7 - Estirntte of Inv( stmont D0preciition md Rlto Base - Case I 28
Tlble 8 - Estimate of Investmcmt Deprociation md Rlte a lti se Ctse II- 29 T~ble 9 - Estimlted Inve stmont Depreciltion Res8rve md H -n so forcxpu
equipment on 11unit plm depreciqtion 30
T1ble 10 - Estimttc of Results of Cponti0n - Cse I 31
Table 11 - E s timmiddot1to of Oper1ting Expense md Tuco s - ClS8 II 32
T~b18 12 - Estimlte of Rosults of [poratirm - ClSC II 33
I CHART
40 42 44 46 Ll8 50 52 53 200
TRANSITII
180 p~~ PASSENGERgtf~
o S71 o~ -If- -shy 1
~ 160 I ~ - TRENDS
i If - e1 - shy ( INOex 1940= 100)
bYpshyl ~
~ j (oS
140 irf ~- ~LOSAN6ELpoundS TRANSIT LINE5i W --
120 1 r
~ 1 WITED STATES 100
r--I
I--STATE OF CALIFORNIA 80
200 ~ LOS AN6ELES COUNTY
180 lt SELECTED TRENDS ~ lt~ ~ ( I NDpoundX 1940 = lOa)
+~ Xshy 160 ~O REGISTRATIONW l tI ~
lt
~ 140 ~
pshy -shy fx 1 - POPULATION
~ 120 f~ li~~ qshy
~ ~ ~ ~1
LATL PASSENGERSw
~ - - ~gt6 ~ ~ 100 r-- AU~ 101 t- ---AUTO REGISTRATION pc roo Io pltl i--
4 ltgt
llt4Glf ~~~shy PER 100 POPULA nON 80
240 LOS ANGELES
IfrZONE CA iN 7shy j I ltIshy 15-1 ISi I~ TRANSIT LINES10k IV 7 30 so 2WSl jr4tJl 7Ye
1 LOCAL rARe
220 OPERATING STATISTICSDRIVERS WAGfS 72 85 88 93 95 1-00 123 135 1-40 middot47 middot52 Iss 1middot75 81 $ PER 1I0VR -
( INDEX 1940 = 100)200 --shy 7 J X bullbullbullbulli
I- ~ I ~ DRIVERS WAGES180 V [r ~~ ON AN HOURLY BASIS
~~ shy~ 160 ~~ t~~ ~l
lJJ 6~ f- if ~~ASSENGER REVENUE
~ fl ~ V140 ~
OPERATING EXPENSES17 ~~I ~~ ~
Ill I--shy
---- r-shy120
I---AVERAGE RATE OF FAREl 6 t ~~bull ~~ ~~r-
1 lt1 t~middot ~~ ~ PER PASSENGER 100 -- yq M~ ~ r---
t---VEHICLE MILES OPERATED~ -00
80 52 )340 42 44 46 48 50
~
LOS ANGELES TRANSIT LINES APPLICATION NO35601 APPLICATION NO3728
General
The purpose of this engineering~economic roport is to set forth
the operating results of the Los ~eles Transit Lines for a twelve-month
period ending October 31 1955 under present fares and under fares proposed
in Application No 35601 and under present operations and under the plan of t-middot
motor coach substitution for certain rail lines as set forth in Application
No 35728 The results of operation Jill be shown under thefolloVing
bases
Case I-A Present Operations with Present Fares
Caso I-B Presont Operations with Proposed Fares
Case II-A Proposed Motor Coach Substitution l-li th
Present Fares
Case II-B Proposed Motor Coach Substitution with
Propo sed Fares
i~here Case I is referred to in the text it implies both Case I-A
and Case I-B and where Case II is referred to it implies both Case II-A and
Case II-B
Territory Served
Tho Los Angeles Transit Lines serves an area roughly thirteen miles
in diameter centered around the downtown business district of Los Angeles
For faro collection purposos this is divided into an inner zone approximately
nine miles in diameter surroundod by a ring two miles in ltlidth which is
_ 2 _
separated into seven second zoncs Additional third zone areas arc served
as follows
Eagle Rock and Griffith Park districts in the North
Beverly Hills district in the West
Inglmrood and South Gate districts in tho South
Further to the south two fourth-zone areas are designated as Hawthorno
Zone 4 and Hollydale Zone 4
Historical Aspects of Traffic Trends and Operating Statistics
Chart 1 provides a historical background for traffic trends and
operating statistics of Los Angeles Transit Lines for the period from 1940
to 1953
Present and Proposed Fare Structures
The fares currently charged and those re~uested in Application
Nc 35601 are as follows
Present Fares
I-Zone - 2-Zone 3-Zone J-Zone
Adult l5~ or 20cent or 25~ or )O~ or T Til + 5~ T loi T l5~
School 9~ l2cent l5~
T = Token sold at 7$100
Proposed Fares Set Forth in A~lication NQ 2~60l
Adult 29~ 35~
School 20cent
Sold in books of 40 rides
- J shy
In summary thepropos~dchalges aro - t - ~ ~- shy
(1) Eliminate tokens
(2) Increase single zone fare middot tQ 17 with 6~ increments for each addi tional zone
(3) Increase school single-zono cominUte fara to lO~ with 5cent incroments for each add~ tional zone
Changes in Operation - Case II
In Application No 35728 Los Angeles Transit Lines requests authority
to convert about 40 of its present street car serVice to motor coach service
and at the same time to convert ono line nbw operated by motor coach to trolley
coach Following is a list of the street car iines ~hich the company proposes
toconvort to motor coach
No and Name of Line Amount to be Converted
No 5 - Eagle Rock and Hawthorne Entire Line
No7 - So Broadway and Civic Center n II
No8 - W54th St and No Main st II No9 - W4Bth St-Lincoln Park In part From W end of
Line at Crenshaw Blvd and 48th St to Broadway and 11th St
FlI_ S Vermont and Union Station Entire Line
IIW _ W Washington and Highland Park In part From Broadway and Pa saQena Ave to N end of the line at Y middot)l~Y lv and Avenue 50
The motor coach line to be converted to trolley coach is
No and NRme of Line Amount to be Converted
Entire LineNo 41 - Alvarado Street
Passengers and Passenger Revenuo- Case rand Case middotII
Adult Passengers and Revenue
Because of the method of fare collection the company does not main-
t[in records of passengers carried HowErVer it does maintain a daily record
of cash fares and token fares This revenue informationi s used herein in
conjunction with a traffic check which ltlas m~de to determine the n~ber of
passengers by zones The traffic check was conducted in 1950 in connection
with Application No 32335 and the resulting percentage distribution by zones
of adult passengers is sho1rm in Column 1 of the following tabulation The
column to the right shows the percentage distribution used in this reportwhich
has been adjusted to reflect variation in diminution by zones and in the trea tshy
ment of certain passengers handled to Hollywood Park
Percent of Adult Passengers
As Used in As Used in ARglication )2225 This Rill2ort
l-Zono 674 666 2-Zonc 286 293 3-Zone 37 3~5
4-Zone 03 15
1000 10000
The following tabulation shows the fares in effect from the lattor
pc~rt of 1950 when the present pattern was established to date The first
column shows tho actua l adult I-Zone fare while the second column shows the
computed average adult fare for all zones Average Adult Fere
Period ~ Adult I-Zone Fare All Zones
12-10-50 to 1-23-52 lOp 1182l 1-24-52 to 11-2-52 15~ or 225p 14bull58
11-3-52 to 11-29~53 15~ or 340cent 1554
11-30-53 to Date 15~ or 7$100 1655
This average f are is estimated at 1664~ for the rate year under present fares because of the declining use of tokens
- 5 shy
The trend of total adult pa~s~ngers is shown in Chart 2 The
estimated adult revenue passengers for the twelve-month period ending ~
October 311955 under prosent fares are135363000 andare shown in the
chart at m1dpqint of the rate year Token use under present fares was
estimated to be 35 in each of the four zones The diminution or loss of
passengers due to increased fares was estimated to be 25 of the percentage
incrbase in the fare involved The estimated 135363000 adult passengers
developed in Chart 2 are also shown in Table 1 Coi1lffiIl 5 Line 13 and flrEl
distributed to the various zones on the basis of the percentages shown in
the above tabulation
Hollywood Park passengers are esti~ated to be 200000 annually
and the fare for these passengers is 10~ Although these Hollylood Park
passeng~rs may originate in the dOlntown area they become in essence new
passengers when they board the Hollywood Park Line since they have no transshy
fer privileges Adult passengers and revenue (shown in detail in Table 1)
for the twelve months ending October 31 1955 are summarized as follows
Passengers Revenue
Presont Fares 135563000 $22513000
Applicants Proposed Fares 130039000 25037000
Following is an estimate of school passengers and revenue and
U s Postal employee passengers and revenue
School Passengers Revenue
Case I-A Present Fares 3358000 $319000
Case I-B Proposed Fares 3245000 351000
6 shy
U S Post Office
Pas senger s Revenue
Case I-A Present Fares 616000 $ middot88000
Caso r~B Proposed Fares 616000 105000
Token Adjustment
It is estimated that based upon tho present experience of applishy
cant three tokens out of 1000 tokens sold or 0356middot will never be redeemed
This amount will be considered as an added revenue and is estimated at
$20000 under present fares
Other Revenue
From such sources as rent interest on franchise bonds charter
advertising and miscellaneous there is an estimat~d rovenue of $187000
under all cases
Revenue under Case II - Proposed Motor Coach Substitution (Application No 35728)
UnderCas8s II-A and II-B proposed motor coach substitution the
estimated rovenue will be the same as in Cases I-A and I-B respectively
Mileage
The estimated mileage to be operated during the rate year is
shOllTn in Table 2 This estimated mileage is based upon a study by
Mr William F Hibbard Associate Transportation Engineer of the
Commissions staff and is shown as a separate exhibit in this matter
- 7 shy
Operating and Maintenance Expenses -- Case I
Estimates of operating and maintenance expenses are shown in
Table 3
General
Unless otherwise stated in the following paragraphs operating
and maintenance expenses are based on experience and conditions currently
prevailing In estimating operating and maintenance expenses it is
estimated that 100 new 48-passenger diesel coaches will start operating
at the beginning of the rate year replacing older coaches now in
operation These new coaches will slightly increase the fleet cost of
tires and substantially decrease the cost of Account No 4140 - Maintenance
Expense
Wages All wages are included in the detailed estimates
shown in Table 3 at the level prevailing immediately
prior to ~ 1 1954
Wage Increase The wage increase which becomes fully
effective on December 1 1954 is sh~m separately
on Line 12 in Table 10 Results of Operation
Fuel The cost of fuel is based upon the current level
of costs including an ircrease in the Sales Tax
on diesel of 05 effective July 1 1954 for
the City of Los Angeles
Tires The unit cost of tires is based on that prevailing
under contract for the period July 1 to Decernber-31
1954 The estimate of the cost of tires reflects the
- 8 shy
~ - - -- -- - - shy
estimated higher unit middot tire cost per mile for the
loa ne coaches which are to be put in operation at
the beginning of the rate year
Power The cost of power reflects the increase recently
granted to Southern California Edison Company by
this Commission
Public Liability and Property Damage Insurance and Workmens Compensation Insurance Coverage for these types
of insurance is carried with Transit Casualty
Company the stock of which is owned by the following
affiliated or subsidiary companies
Percent of Common Stock Owned
National City Lines 30 Los Angeles Transit Lines 24 St Louis Public Service Company 46
Total middot 100
From 1953 Annual Report to the Insurance Department State of California The present premium rate charged by Transit Casualty Company to applicant is 7 of passenger revenue In this report as in pre~ous reports the estimate of the Commissions staff has been predicated on unit costs related to the number of passengers carried and tho vehicle miles operated The estimate for Case I is shown in Table 5
Operating Expenses - Case II
Case II - Operating expenses are shown in detail in Table 11
and are based on operations of Casc I adjusted to reflect the estimated
decrease in rail expenses due to the abandOnroent of lItrEiet car operations
as proposed in Application No 35728 the increase in motor coach expenses
re~uired by the substitution of motor coach service for street car service
and the increase in trolley coach expense due to the conversion of Line
No 41 from motor coach operation to trolley coach operation with a
corresponding decrease in motor coach expenses
- 9 shy
Operating Taxes - Case I
Franchise Taxes cmd Business Licenses
Under Case I Present Operationafrnnchise taxes to the City of
Los Angeles were determined by applying current tax rates to estimated
revenues
Ad Vnlore~ Taxes
The estimate for ad valorem taxes under Case I is based on an
assessinent of $6496250 and a tax rate of $67402
Fuel Taxes
Fuel taxes are based on the following per gallon rntes of Federal
and State Taxes
illA Cents ner Ga11Qn Effectiye Dates
Diesel Federal 11-1-54 to 3-31-55 12i ~ 4-1-55 to 10-31-55
State 7 11-1-54 to 6-30-55 ~ 2 ~ 7-1-55 to 10-31-55
Gasoline Federal 2 ~1-1-54 to 3-31-55 11
2 ~ 4-1-55 to 10-31-55
State 6 ~ 11-1-54 to 6-30-55 5i cent 7-1-55 to 10-31-55
Motor Vehicle Licenses
The estinate for motor vehic10 licenses is based on the registrashy
tion weight and vehicle license fees Which will be in effect during 1955
under equipmontrequiremonts as sot forth in the report by Public Utilities
Commission Associate Engineer Wil1in~ F Hibbard
- 10 shy
Trapsportati CD Ii CADse Tax
This license tax is assessed by the Board cf Equalization and
represents 3~ of the gross revenue derived from operations in non-incorporated
areas by motor and trolley coaches The estimate is based on
curront tax rates applied to estimated revenues
Pavroll Taxes
Tho ratos in effect aro 2 for Social s~curity taxos and 03 for
Federal Unemployment Insurance Paymonts to tho State Unemployment funds
will remain at zero as a sufficient accumulation of funds is presently
on hand It is estimated that 94 of applicants total payroll will be
subject to Social Security Tax undor the increased coverago offective
January 1 1955 and that 100 of the employees are subject to FUI taxes
at $3000 per year
Other Taxes
Other taxos include operatorsl licenses Foderal transportation
ta~ manufacturers excise taxes and other miscellnneous taxes The
estimate is based on actwd experience for the yeor ending May 31 1954
Income Taxes
State Corpor8tion Franchise Taxes have been computed at the
current rate of 4 Federal Income Taxes have been computed on tho basis
of a change in rate effective April 1 1955 On this basis the normal
tax 0 f 30 was used for five months of the rata year and 25 for soven
months of the rate year Tho surtax of 22 remains constant throughout
the year In calculating income taxes in both Cnse I and CasarI an
interest credit of $100300 was used
- 11 shy
Rate Base and Depreciation Expense
In General
In accnrdance wi th current Cornmi ssion practice of treating all
property en a remaining life basis the Commission Staff has made an
analysis of Applicont1s property As 0 rosult as of January 1 1954
1 Motor coaches of the series 6200 6300 6600 6700 6800
and 6900 (404 coaches) were put on a total life basis of
12 years This is considered reasonable in view of the
attained age and the condition of the fleet
2 The annual accrual of the Genoral Office Building (Acct 522)
was adjusted to reflect a totel life of 50 years
3 Buildings in Accounts 523 and 524 were assigned a remaining
life of 24 years with depreciation reserve adjusted to reflect
age-life condition
Under both Cpses I and II 100 nel motor coaches have been included
in the rate base as of November 1 1954 tho beginning of the rate ye~r
Other Lpnd (Acct bull 503) and Rights of Way (Acct 502) hewe been
adjusted to reflect estimated original cost
Under Cese I
150 motor coaches of the 6000 and 6100 series (including current
work orders for rebuilding) have boen deleted due to the inclusion of the
100 new coaches as well as tc conform to the equipment roquirements set forth in
Staff Witness Hibbards Exhibit ith 10 f ~r spares
All property on group plan depreciation reflects the current
4 rate of accrual with nermal additions and retiroMents tken into considerashy
tion
The 40 P C C crrs on uni t plan depreCiation wore extended as
of Innuary 1 1954 to a total life of 25 years
12 shy
Under Case II
As evidenced by correspondenco betoJeen the Commission and
Applicant and the request for changes in accounting practices as outlined
in a letter from the Applicant to the Commission under date of April 291954
it is assumed that applicant intends to completely convert to motor coach
operation by the end of 1965 The Rate Base under Case II assumes that all
property relnted to the rail and trolley coach oper2tion ltlill be fully
depreciated by that time This would include all rel~ted items of property
hitherto considered non-dopreciable those rel~ted ~o the present proposed
conversion havo been charged to the group plan depreciation reserve as of
November I 1954 those remaining 2xe depreciated over ~ 12 year period
boginning January 1 1954
150 coaches of the 6000 and 6100 series have been included in order
to satisfy oquipment requirements as outlined by Staff litness Hibbards 1
Exhibit No The work orders for rebuilding 83 of those coachos have
been put on a 3 year lifo (Soc Chart 5)
In conjunction wi th the rate base presentAtion there are shown in
Chart ) pictures and data of the streetcars and trolley coach equipment as
of September 1 1954 Camp~rt 4 shows ~ictures and data of motor coach equipshy
mont as of September I 1954
Amortization and Interest Allowance
Amortization and Interest allowance f or abandcnment oblig~tionsunder
Cases I and II is sho~m in Table 4 The estimates ccntained therein refloct
an income tax credit on the total amount of the obligations The estimate
under Case I is fer obligations incurred prior to 1954 and oblig~tionsconcerned
nV ttwith changos on tho ruld tTRtl lines made effective JUly 25 1954 Under
- 13 shy
C~se II is added the estin~ted obligation in connecticn with the abandonment
nsprop0sed in Application No 35728
Results of Operatirn
Ou-so I Relbvant infr-rr1pticn sh0vm in the f0regcing text ancl
in the tables is summarized in Table 10 - Estimated
Results of Operation - Case I and from this informashy
tion a rate of return and operating ratios are
calculated under Present and Proposed Fares
Case II Using the basic inf0rmation as used in Table 10 in
c0 njunction with the estimate of operating expenses
for Caso II as shown in Table 11 the rates of
return and operating ratins under Case II are developed
in Table 12 - Estimated Results of Operation - Case II
- 14 shy
LO S ANGELES TRANSIT LINES
TREN 0 OF WEEKLY REVENUE- PASS ENGER5 (E)(CLU SIVE OF POSTAL EMPLOYEES AND RIDERS ON SCHOOL FARES)
FEBRUARY 1952 TOJULY 1954 AND
ESTIMATE FOR 12 MONTHS ENDING OCT 31 1955
~ 3middot5 W w ~
a w 0
_ I cJ)
a 30 uJ 19 Z UJ cJ) cJ)
laquo 0
IL 0 25
([)
z 0 J J
~
bull ~ I
l T
-
- -
ltI-N
- 2
- wr-
u
- 2
--
w
- u
A I
1 ( A A I
j
~ J r 1f
I a V J 1 fv V V ~J
V 1IV I 1 II I
I I Jr 0
~
l) - 0 (c
rlt1
gt bull r gt 0 10 z I z ~
I I I w iw
I
I I EST I~ATE FOR 12 foONTHS ENDING OCTOBER 31 1955 w I UNDER PRpoundSENT FARES-
I w
u A - PASSENGERS PER WEEK bullbullbullbullbullbullbullbullbullbullbullbull 2 596 000
u B - PASSENGERS PER yEAR bullbullbullbullbullbullbullbullbullbull 135 363 000
- Z Ii
w I
w I
lt I
u u i
it i--0 w
~ - -lt 0-H gt- =-1--1 a 0
-Y
VI
I
I )
T ~20
JAN f EBMAR APRoMAY J UN JUL AUG SEPOCTNOV DEC JANFEB MARAP R MAY JUNJULAUG SE P OCT NOVmCJANfEB MARAPRMAY JUN JUL AUG S EP OCTNOV DE C JAN FEB MAR APR IoiIAY JU N gt- c-+shy
rv1952 953 954 1955 Wl
LOS ANGELES TRANSIT LINES ESTIMATE OF REVEruE PASSENGERS lID PASSENGER REVENUE
FOR 12 MONTHS ENDInG OCTOBER 31 1955 CASE I AND CASE II APPLICATION NO 15601 AND NO 35728
Present Fares Applicants Proposed Fares Est
Percent of Dlmin- PassenshyLlne of Total Fare Zone Passengera Revenue Fare utlon cera Revenue -=-----Ho-- Item Orldnalt Adjusted (Cents) Paus i cent (Cents) ~ cent cent
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
Adul t Passengers
lOne-Zone 15 65 58599 $ 8790 17 333 56648 $ 9630 2 1427 35 31553 4507 17 475 )0054 5109 3 666 666 1475 100 90152 $13297 86702 $14739
4 Two-Zone 20 65 25780 $ 5156 23 3middot75 24813 $ 5707 5 1927 ~ 13881 2677 ~ 481 13212 30)9 6 293 293 19751 100 39661 $ 783) 38026 $ 8746
7 Three-Zone 25 65 3476 $ 869 29 400 3337 $ 968 a-- 8 2427 22 1871 454 29 485 1 180 516 I 9 38 395 2475 100 5)47 $ 1323 511 $ 1484
10 Four-~one )0 65 1)2 $ 39 35 417 126 $ 44shy11 2927 35 71 21 35 488 68 24 12 ~ ----l5 29 75f 100 20) $ 60 - 194 $ 68 13 Sub-Total 1000 1000 ~ 135363 $22513 1300)9 $25037 14 Holly Park 10 200 $ 20 10 200 $ 20 15 Total Adult 13556) $225)) 130239 $25057
16 School 9 2797 $ 252 10 278 2719 $ 272 17 School 12 561 67 15 625 526 79 18 Total School )358 $ )19 )245 $ 351 19 Post Office 1427 616 $ B8 17 616 $ 105 20 Grand Total 139537 $22940 1)4100 $25513
cent (000) Omi tted ~ 1F Weighted Average Fare ~ If See Chart 2 + + As deter~ined by traffic checks and used in previous Staff reports
CHART 3
rr LOS AtJGELES
TRANSIT LINES
STREET CAR AN 0 TROLLEY COAe H
EQUIPMENT AS OF
H4 OR K4 OPEN END WOODEN SEATS H3 CLOSED ENDLEATHER S EATS SEPTEMB E R f 1954
JIshy
OLDER T YPE OF PCC CAR NE WER TYPE OF PCC CAR
8000 SERIES TROLLEY COACH 9000 SERIES TROLLEY COACH 9100 S ERI ES TROLLEY COACH
STREET CARS TROLLEY COACHES
ALL H3 H4 K4 PCC OTHER TOTAL 8000 9000
SEATS 48 48 48 12 5-61 SEATS VARIOU 44 4540-28 SEATS
EQU IPME NT ASSIGNMENTS UNDER PRESENT CoMPANY BASIS EFFECTIVE SEPTEMBER 12
9100
46 TOTAL
SCHEDULED SPARES
TOTAL ASSIGNED UNASSIGNED
TOTAL OWNED
SCHEDULED
SPARES
TOTAL ASSIGNED UNASSIGNED
TOTAL OWNE D
354 22 57 5
411 2 37 101 13
60 165 37 512 40 EQUIP MENT RE QUIREMENTS PRESENT SERVICE FOR RATE YEAR)
354 36
390 122 512
34 6
40 30
81 16
81 9
90 20
110 EQUIPMENT REQUIREMENTS WITH SERVICE AS P ROPOSED IN
ApPLICATIO N 28 (FOR RATE YEAR
SCHEDULED 20431 23 150 93 4 2 21SPARES 1015
TOTAL ASSIGNED 165 22525 10335 UNASSIGNED - 7
TOTAL RETAINED 225 11025 16535 To BE RETIRED 0190 2 7 37 TOTAL Now OWNED 60 110512 215 165 3735
-lE- ESTI MA TED BY P U C STAFF E
2 r
C
-
6600 SER IE S 6700 AND 6900 SER IE S 6800 SER I ES
L I NE 6200 No TE~ 5000 6000 yf 6 100 yf 6300 6400 6600
MACK G M e G M e G M e G MC G M C I i~IA K( amp UODEl NUMBER C-45 -CT TD-4502 rn -4505 TO- 4506 TDH-5103 TOH shy 36 1 2 YE AR BUilT l~ 1940 1941 1945 1951 1947 3 DATE I N SERV I CE 7 -40 1-42 7 - 45 7 - 51 7 -47 4 NUMBER O F CoACHES 50 55 95 200 25 57 5 PU RCHAS ED NEW OR US ED N N
6 S EATI NG CAPAC IT Y 45 45 45 51 36 45 40
~ LE NG TH - OUT S I DE 3~ -0 3~ - 0 37 -0 3~ -6 30 - 6 3~ - 0 3~ -0 WI DTH - OU T S IDE -Oil _-ttl 8 -0 -611 8 - 2 _OM I - 0
9 HE I CHT - OU TS I DE 9 -6 9 shy 5t 9 -6 9 t 4t ll 9 - 2 9 0 9 -6 10 A I SL( HEADROOM 76 77 78 78 76shy 8 76
11 A ISLE WI DTH 19 2 1 26 22 22 20 12 TY PE O f DR I V( HYD HYD HYD HYO HYD HYD
13 BRA KE HORSE POWER amp FUE L 165io) 165( 0) 165(0) 110(0) 165(0) 165(0) 14 Bo DY f RAME MA TE R I AL AL AL AL AL AL NOT G I VE N 15 Bo DY PANEL ~1ATE R I AL AL AL AL AL AL NO T GI VEN
16 ROO F MATER I AL AL AL amp ST AL AL amp ST AL amp ST NO T G I VEN
~ ~ - AT DCC CMBER 3 1 1953shy14 26 15298AV ER AG E INVE ST PER CoACH $ ~ 21962 $ 13 992 17 60 14 209
19 INVESHIENT 1 354 9~ 3 059 506 549 044 7 97 5~ 2 lt164 650 99 466 10 000 509 20 RE SE RV E 1340 6 2 462 923 135951 503 6 1369 1 02 90 896 7 147 497
21 REM AIN ING VALUE (I NCL SALV) 14 250 596 583 413 093 293 869 1 095 548 8 570 2853 012 22 REMA I N I NG LIF E lOYR BAS I S 22 MO 90 MO 43 MO 52 MO 9 MO
23 REMAIN I NG L IFE 12YR BAS I 46 MO 90 MO 67 MO 76 MO 33 MO
yf THC COS T OF REBU IL DING 102 CoACHES OF THC 6000 AND 6 100 SE RIE S NOT I NCLUDE D HEREI N (SCE NEXT PACE)
1941 AN D 1942 MA T ER I AL S WE RE SuBJ ECT TO PR I OR I T ( S AND THEREFOR E STEEL WAS USE D IN PLACE OF
ALUMI NUM FO R BO DY FR AMES PAN EL S AND ROO FS I N SO ME COACHE S O F TH E TD- 4505 SERI ES
G - GASOl I NC D - D I CSE L AL - ALUM I NU M ST - Srr CL HYD - HYDRAUL I C
lt~i
~~4
CHART 4
LOS ANGELES TRANSIT LINES
MOTOR COACH EQUIPMENT
AS OF
SEPTEMB ER 1954IS_T 6000 SER I ES
6200 AND 6300 SER I ES
6
5 CHART
1~A~PLE OF THE DAMAGE TO BODY PANE LS M D RI VET ED JOINTS
2 - COACH WITH ALL BODY PANE LS Il l NDO V FR M1ES M~) SOIIE BO DY BRAC IN G REMOVED
l
LOS ANGELES TRANSIT LINES
PROGRAM OF
REBUILDING MOTOR COACHES
OF THE
6000 AND 6100 SERlES
j - PAR TI AL Re STO RA TI ON SODY PA NE LS Ix I I I )SI I ELD FRA Il E REPLA CED AFT ER kt C~ D I T I ON 116
I+ - AL L BO DY PANE LS AND S I DE W I~ DO J FRAhi ES RE shyPLACED AND ~ ESTO~ED
5 -INT ER IOR SHOW IN G CO MPLET E RE MOVAL OF SEATS AND OTHE R AC COUTERM ENTS REPLACED OR RECOND ITIO NED
6 -COMP LETE D I NTER l OR - t EIJ FLOO R
COV ER IN G WIT H S EAT CUSH IONS ETC
7 - COMP LET ED EXTER l OR COACH REPAI NTED AND READY FOR SERV I CE
I N 195 1 Los AN GELES T RANS IT LINES I NAUGURA TED A PROGRAM OF REBU IL D I NG GMC CoACHES OF THE
6 0 00 (BU ILT IN 1940) AND 61 00 ( BU ILT IN 1941) SER IE S A s OF JU LY 1954 62 COACH ES HAD BEE N
REBUILT WITH 40 ST ILL ON WORK ORDERS BUT IN PROCeSS THE CURRENT EST IM AT ED CO ST OF THIS
P ROGRMil I S AN AV ERAGE OF ~3500 PER COACH THE P U C S TAF F EST IMA TES THE LIF E OF TH ES E
COACH ES TO BE AN ADDIT IO NAL THR EE YEAR S FRO M DATE OF COMP LETI ON COS TS OF REB UILDING AR E
SHOWN I N THE RATE BAS E RE LATIV E TO THE APPROP RI ATE WORK ORDER AN D THEREFORE ARE NOT INCi UDEu
IN THE I NV ESH IENT FOR 60)0 AND 6100 S ERI ES COACH ES SHOWN ON CHAR T No 4
LOS ANGELES TRANSIT LINES SSTIMATED RATE BASE AND DEPRECHTION EXPENSE
12 I~ONTHS ENDING OCTOBSR 31 1955 CISE I - VnTH PRY-SENT METHOD OF SERTICE - APPLICATION NO 35601
Gum October 31 1954 As of October 31 1955
Line
No Item (1)
Iccnunt Number Invcstment
(2)
(3) Reserve
(4)
Inve stmen t Less
Reserve (5)
Remaining
Life (6)
In
Inve s tIDen t Less
vestment Reserve Reserve (7) (8) (9)
Depreciation Expense RAte YeAr
(10) LAND
1 2
Rights of VVAY Other Lmd
502 503
S 426974 1931112
$ 426974 1931112
$ middot 426974 1931112
$ 426974 $ 1931 112
EQUIP~NT ONl~ITDEPRECI~TION
3 Auto Tr011ey pcc53033Jf~034288 $ 7167640 $ 6866648 V3rious $14034288 $ 8125353 $ 5908935 $ 957713
PROPERTY ON GROUP DEPRECIATIJN OverheAQs
4 Engineering 501 $ 44651 $ 44651 OrgAnizAtiorfshy 546 601749 601749~ 5
6 Interest 547 middot 916884 916884 7 Gnding 504 1117084 1118084 8 All Other 505-545 27021634 4 Base 27141634 _____ _________ 9 Suttotal
(Lines 4 to 8) $29702002 $22441215 ~ 7260787 $29823002 ~23516286 $ 6306716 $1081071_
10 Tr)W(Lines 123 amp 9) ~46094376 $29608855 ~16485521 $46215376 $]1641639 $14573737 $2038784
11 RATE BASE Use - $2039000 12 Avenge 0f $16485521amp ~1+573 737 $15530000 13 Work in Progress 100000 14 M1terials amp Supplies 735000 15 Bond Deposit - City Fnnchise 411000 16 Deposit for PL Insurance 150000
17 Totil RAte BAse $16926000 8 t ~
-It- rhjor PArt of Acct 546 is Supervisinn --J
-----
LOS ANGELES TRI-NSIT LINES ESTThiIiTED Ri1TE BASE AND DEPRECllTION EXPENSE
12 NiONTHS ENDING OCTOBER 31 1955 CIlSE II - SSUMING MOTOR COACH SUBSTITUTION ON CERTHN RAIL LINES AS PROPOSED m iiPPLICilTION NO 35728
---- --------------- As f Oct)ber 31 195amp As of Oct0ber 31 1955 Inve sUn8nt Investment IBpreciaticn
Line Account Le ss REffiainin~ Less ExpensE No Item Number Inve-stmcnt ReS8riTe Reserve Life Investment Reserve ~ Reserve Rate Yeqr
(T) T2) 0) (Ii) (5) (6) (7) (8) (9) (10)
Ll~ND
1 Other LAnd 503 ~ 1925510 $ Ci 1925510 ~ 1925510 $ 1925510
EQUIP1A~NT ON UNIT DEPRECIATION 2 itutoIrol1eyPCC 5))3338 $16392563 $ 9323673 $ 7068890 Various $16392563 ~10391985 $ 6000578 $1068312
BUILDJNGS 3 General Office-~ 522 $ 916255 $ 563016 ~ 353239 1917 Yrs$ 916255 $ 581446 $ 334809 $ 18430 4 Shops Grgs Admin 523 amp524 2733772 1013500 1720272 2320 Yrs 2733772 1087633 1646139 74133 5 Subtotal (Lines 3 amp4) 3650027 ~ 1576516 gt 2073511 igt 3650027 11669079 ~ 1980948) 92563
~ PROPERTY ON GROUP DEPRECIATION Overheaas
6 Engineering 501) 7 Organizqtion 5~6) tt 1563178 ~ 1563178 8 Interest 547) 9 Grlding 504)
10 Righ ts of Vgy 502 117922 117922 11 All Other 505-5h5 15 651 31 7 15 771 31 7 ~---7-=-~-- lr-r-----=~ -x---r---~ 12 Subtotal (Lines 6 to 11) )17332417 $11343350 ~ 5989067 1117 Yramp$17452417 ~11833307 ~ 5619110 ~ 495957
13 Totql(Lines 125 amp 12) ~39300517 822243539 ~17056978 839420517 023894371 015526146 01656832
14 RATE BASE Use ~1657OOO 15 Avcr~ge of ~1705697B qnd )15526146 016292000 16 Nwk in Progre s s 100000 Am)unts sh)wn include lpplic3ble -werheqds fr)ll 17 Haterills amp Supplies 735000 Accnunts 546 amp 541 18 Bond Deposit - City Frqnchisc 411000 cent Investment ~d depreciation reserve assumes all 19 Deposit for PL Insurqnce 150000 retirements for the lines to be cmiddotmvcrted 1--3
20 Use Vqlue - Fully Depreciated CJtches 1)2000 ~re m~de 3S ) f November 1 1954 qnd that the ~ full unnunt middotf r e tirements qre charged to the EJ
21 Tot-l R1te Blse ~17840000 reserve co
10S ANG3LSS TRANSIT LI~S
INVESTWNT DSPRCIATICN R~SsRVS AND EXPSNS~ FOR ~QUIPMLNT ON UNIT PLAN DEPR3CHTION
CASES I AND II APPLICATIONS NO 35601 AND 35728
As of Oct0ber 31 ffi4 As of October 31 1955 Line NoTotal Investment fnvestment Depre No Item of Life Investment Reserve Less Investment Reserve Less Expense
Units Reserve Reserve Rate Year (1) (2) (J) 4) - ---(~ CD) en -- --8)----- -(9j- (10)
For Case I 1 Motor Coach Groups
62006300 66-6900 hOh 12 Yrs$6421159 $4728599 ~1692560 ~ 6421159 $ 500 1011 ~1330lh8 $ 362412 2 5000 6hoo 75 10 II 1486387 77~175 711212 1h86387 92h851 561536 149676 3 Coaches on order 100 10 II 2285400 2285400 2285400 2265J~0 2058860 226540
II
I 5 Automobiles 51 V3r 99485 50916 h8569 99485 66540 329h5 15624 ~ 6 Trucks amp Service Cars 56 II 280584 250572 30012 280584 265813 lh771 15241 I 7 Misc( Fare BoxesMotors) 170193 115191 55002 170193 122271 47922 7080
h Trolley Coaches 110 15 2108h09 908560 1199849 2108h09 1Oh6116 1062293 137556
8 Total of Lines 1 to 7 ~12851617 ~~6829013 ~02260h ~12i351617 ~ 77h3lh2 $5108475 $ 914129
9 PCC Rail Cars 40 25 rsJ~ 1182671 ) 338627 gt 84h04h 1182671 ~ 382211 ~ 800460 $ h3581~
10 Case I - Line 8 + Line 9 $14034288 $7167640 $6866648 ~14034288 $ 8125353 t5908935 $ 957713
For Case II
11 6000 amp 6100 Series MC 150 FD ~ 2092963 $2070463 ~ 22500 $ 2092963 $ 2070463 $ 22500 12 Work orders on 6000s
amp 6100 s 3 Yrs 265312 61860 203452 265312 144007 121305 $ 82147 13 PCC Rail Cars 401717 1182671 362 337__ ~~~ 334 1182671 43473 ___748298 72036
14 Case II - Lines 8 + 11+ 12+ 13 ~16392563 9323673 n068890 $16392563 ttl0391985 ~6ooo578 ~1068312
t-3
125 other PCC Cars are in Group Depreciation Schedule G ~
Note579 motor coaches under Case I and 729 under Case II D
LOS AlJGELES TRANSIT LnlES TABLE 10 ESTIMATE]) RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD E1TDUTG OCTOBER 31 1955 CASE I - UNDER PRESENT OPERATIONS
12 Months Jan-June
Line No Item
Tab1e Ending or May 31 1954 Page Fe fer
(2)
Book Record
(])
1954 Annualized
Book Record
(4)
Case I-A Present
Fares (5 )
Case I-B Applicant l s
Proposed Fares
(6)
1 Vehicle Miles T2 34036066 33569520 32747000 32440000
Revenue 2 3 4 5
Passenger Revenue Unredeemed Tokens Other Revenue Total
T1 P7 P7
$24849150
122402 $25044557
$24517866
183810 $24 701676
$22940000 $25513000 20000
1821 000 182 000 $23147000 $25700000
6 7 8
Operating Expenses Rail Trolley Coach Motor Coach
T3 T3 T3
$ 8493744 1442232 8622956
$ 8575232 1451430 8 n6470
$ 8115900 $ 8047000 1366000 1355400 8144200 8088900
9 10 11 12 13
Sub-Total Depreciation Operating Taxes Wage Increase Total
T7 T6
18563932 2176608 1676358
$22416898
18743132 2185804 1760600
$22689536
17626800 17491300~ 2039000 2039000 1663800 1711700
439800 436500 $21769400 $21678500
14 Operating Income $ 2627659 $ 20J2JJQ $ 1377600 $ 4021500 15 Other Inc amp Inc Deduct 21258 (9328)
16 Net Inc Before IncTaxes 2635217 2002742 1377600 4021500 I 17 Income Taxes (St ampFe~) 1302758 1026568 647500 1 999 000 18 Net Operating Income 1332459 976174 730100 2022 500 i 19 Allowance T4 112216 80752 1541000 1541000 20 Net Income $ 1220243 $ 895422 $576100 $ 1868500
21 Rate Base T7 $17393000 $16727000 $16926000 $16926000 22 Rate of Return 70~ 535 340 1104
Operating Ratio 23 Before Income Taxes 9405 8435 24 After Inc Taxes ampAllow 9751 927)
Not Applicable
Computed by PUC Staff Allowance for interest and amortization of abandoned property (Red ]figure)
- 31 shy
IDS ill~GElES TRANSIT LINES ESTIMATE OF OPERATllIG EX-degENSES JuID TAXES
FOR 12 f10NTHS ENDING OCTOBER 31 1955 CASE II - KOTOR COACH Sl~STITUTION - j~PLrCATION NO 35728
Table or Line Page Hotor Trolley
~To Item Reference Streetcar Coach Coach Total
l 2 3
4
I S
rv 6VJ
I 7 8 9
10 ll 12 13 Ih 15 16
17
13
(ll- -- shy
Vehicle Miles Case I - Present Operation Case II - Proposed Operation
Increase in i1iles
Opere amp I1aint Expense - Case I
Changes in Expense Due to Conversion Way and Structures Substation Operation Rail Crossing Protection Vehicle Maintenance Servicing of Vehicles Tires - Hotor Coach Equipment Operators vJages Fuel Oil or Power 21 amp PD Insurance ~Jorkmen I s Compensation Insurance Training Drivers for Conversion
Total Increase in Expense
Oper amp i1aint Expense - Case II (Line h +
Operating Taxes - Case II
(Red Figure)
(Z)
T2 T2
T3
Line 16)
D)
11887000 6691000
(5196000)
~ 8115900
t (11500) (42200) (55000)
(270900) (76900)
(1232900) (219800)
(liT shy
18314000 23h67000 5153000
amp 314~900
~
355000 h3300 32500
1154300 153000
-C5) (6)
2546000 32747000 2949000 33107000
403000 360000
S 1366000 ~gt 17 626800
If (144500) 1 ~ v$ ltW (42 200 ) - bull (55 000 ) 7HmiddotVj
19200 103300 M~ f~
3000 ( 30600) A N- i
32500 94400 15800 14600 (52206)
(1l1100) ~ [ (1200) Glh
30000 ~i
p (258200)
$17368600 r3
c~ 1786600 cr ill
I- CD
I- i-
TABLE 12
LOS ANGELES TRANSIT LINES ESTIMATED RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD ENDING OCTOBER 11 1955 CASE II - MOTOR COACH SUBSTITUTION - APPLICATION NO 15728
Table Case II-A Case II-B Line Item Refer- Present Proposed
Nos i FSles Faresect~nce
( 1) (2) (3) ( 4)
1 Vehicles Miles T 2 33107000 32817000
2 Operating Revenue T 10 $23147000 $25700000
O~erating E~ense
3 Operating and Maintenance Tll $17368600 $17234900 4 Depreciation T 8 1657000 1657000 5 Operating Taxes Tll 1786000 1837800 6 Wage Increase 434ZQQ 431 lt)00
Total $21246300 $211612007
8 Operating Income $ 1900700 $ 4538800 Other Inc amp Inc Deductions it 119
10 Net Income Before Income Taxes $ 1900700 $ 4538800 11 Income Taxes (State amp Federal) 214 200 2262 400 12 Net Operating Income $ 985800 $ 2275400 13 Allowance T 4 ~ 2090QO ~ 20200Q 14 Net Income $ 776800 $ 2066400
15 Rate Base T 8 $17840000 $17840000 16 Rate of Return 435 1158
012erating Ratio 17 Before Income Taxes 9179 8234 18 After Income Taxes amp Allowance 9664 9196
Not Appli cable
Allowance for interest and amortization related to streetcar abandonment of the past and for abandonmcnts proposed in Application No 35728
-33shy
LOS ANGELES TRANSIT Ln~S ESTH1ATE OF HILES TO i3LJ OERATEJJ FOR THE TlJ7IVE HONTHS-ENDING OCTOBER 31 1 q55
A UNDJilR PRESENT OPERATIONS B WITH HOTOR COACH SlfilSTITUTION AS PROPOSED IN APPLICATION NO 35n8
CASE I - PRESENT OPERlTI03S Present Fares Propose(l Fares
Estimatet Estimated Estimated Hiloago Estimated Est T)imirDl l4i Recluc-Estimatea Miles Miles (a) Decrease In Traffic Roduction Mileage of Traffiction Below Proposed
Item As Shown In Miles of the Decline Duo TrafficPresent FaresBelow TrafCol6 Due to Fares PDC Staff Dacrease9-15-54 to Docline (2) x At PrescntDiminution Col 6 x
________ (3) x (4) (100 - Col 5gt Fares (7) x (3) (100 - ColFJdlibLLJamp~Passengers ~-55 8) (1) (2) (3) (4) (5) (6) (7) (8) (9)
streetcar 12041861 30 43 L29 11587000 39 117 11748000
Trolley Coach 2546000 92573633 25f~ 43 1 075~b 3 0 975 2521000
Motor Coach (b) ]8li-~4 849 20 4 3~ 86 10 18106000 39 78 18163000bull I~
f-- ---J Total (b) 33080343 32739000 32432000
CASE II - OFSRATIONS PROPOSED IN APPLICATION NO 15728 Present Fares Proposed Fares
Item Estimatefl 1JIiles(a) As SnownEstimate~- Miles Present FarosEstimate~ Milos Proposed ___-~___------I=n~PDCStaff Exhibit No Col lOx (100 - Col 5) Faros Col llx (100-CQl~
(1) (10) (11) (12)
Stroetcar 6778211 6691000 6 61300O
Trolley Coach 2981376 2949000 2920000
Motor Coach (b) 236629)) 23459 1000 2276 7000
~Total (b) 33422542 33099000 32809000 ill r trl
(a) Based on th~ l ovel of traffic of Septombor 1954 I)
(b) To the estirl8ted milos shown here should bo a~dod 7500 Charter Miles
t-3
- - - - - - -
LOS kJGELES TRANSIT LINES Table 3 Sheet 1 of 3ESTIMATE OF RAIL OPERiTINGifiPENSES
CASE I - UNDER PRESENT OPERATIONS
Company Estfor 12 Mo~ Records Ending
Acct Jan-May 1954 103155 No I t e m Annualized Present Fares
Car Miles Way and Structures
1-24 ill Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 Superintendence 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conducting Transportation 63 Superintendence 64 Conductor Motormen etc 66 Car Service Emp 67 Miscel1 Car Service Exp 70 Car House Empa
Var other Cond Transp Accounts Total
Traffic 79 Superintendence 80 AdvertiSing
Total General
83 Gen Off - Sal and Exp 84 Gen Off Emp - Sal amp Exp 85 Gen Off a SuppJies amp Exps 88 Pensions
(93 Insurance PL amp PO (93 Insurance Workmens Comp (93 Insurance Other
Var Other General Accounts Total
Total Rail Operating Expense
Cents per Car Mile
12573226
$ 722615
$ 79078 759547 146522
$ 985141
$ 18190 174643 482945
23033 $ 698 811
$ 438900 3257666
104525 76608
351696 57240
$ 4286635
$ 6346 18353
$ 24699
$ 83645 123281
35570 4818S8 765019 46840 13664
287090 $ 1836967
$ 8554874
68004cent
ll887OOO
$ 722600
$ 79100 671200 147900
$ 898200
$) 18200 174600 547200
28900 $ 768900
$ 438900 2890900
104500 72200
351700 59600
$ 3917800
$ 6300 18400
$ 24700
$ 78900 123300 35600
456600 750400 ~ 43100 13700
282tl00 $ 1783700
$ 8115900
6827cent
Co
)
-
(1
I
flI
Car Miles Oper middot Exp Case I-B - Applicants Proposed Fares 11748000 $ 8047000 ~ Expenses Variable with Car Miles Wage rates used herein are those whieh
Ac30amp33 565 cent~ile prevailed immediately prior to 6154 59 460 The cost of the wage increase which 64 2432 tecomes fully effective on 12154 is 70 148 50 of total shown separately in Results of
Total 3605 centmile Operation table ~ See Table 5 for amounts under Proposed Fare
- 18 shy
- - - - - ------
LCB ANGELES TRANSIT LINFS Table 3 ESTIMATE OF TROLLEY COACH OPERATING EXPENSES Sheet 2 of 3
CASE I - UNDER PRESENT OPERATIONS
Acct No I t e m
Coach Miles Way and Structures
1-24 All Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 --superintendenoe 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conduoting Transportation 63 Superintendence 64 Operators Wages 70 Car House Employees
Var Other Condo Transp Accounts Total
Traffic 79 Superintendence 80 Advertising
Total General
83 Gen Off - Sal amp Exp 84 85
Gen Off Emp - Sal amp Exp Gen Off Supplies amp Exps
88 Pensions (93 Insurance PL amp PD (93 Insurance Worlanen s Comp (93 Insurance Other
Var Other General Accounts Total
Total Operating Expense
Cents per Mile
Case I-B - Applicants Proposed Fares
Expenses Variable with Coach Miles Acs 30amp33 477centmile
59 3038 64 2342 70 075 50 of total
Total 3232centjmi1e
~ See Table 5 for Amount Under Proposed Fares
Company Estfor 12 ME Recorda Ending Jan-May 1954 103155 I ~
Annualized Present Fares ~
2629188 2546000
$ 26518 $ 27000
$ 32628 $ 32600 125469 121400
11012 9600 $ 169109 $ 163600
$ 3770 $ 3800 35770 35BOO 75017 86000 1
8417 9000 $ 122974 $ 134600
$ 99161 $ 99200 612513 596300
38273 38300 21802 21500
$ 771749 $ 755300
$ 979 $ 1000 3588 3600
$ 4567 $ 4600
$ 15134 $ 12100 22990 23000 5669 5700
87614 83000 165089 97300 I
8516 8000 ~ 3054 3100
49076 48700 $ 357142 $ 280900 6
$1452059 $1366000
5523cent 5365cent
Coach Miles Oper Exp 2521000 $1355400 -- -0
Wage rates used herein are those which prevailed immedshyiately prior to 6154 The cost of the wage i~crease which becomes fully effective on 12154 is shown separately in Results of Operations table
- 19 shy
LOS ANGELES TRANS1 LINS TABLE 3 ESTIMATE OF MOTOR COAOH OPERATING EXPENSE Sheet 3 of 3
CASE I - UNDER PRESENT OPERATIONS
Company Estimate for Records 12 months
Jan - May Ending Acct 1954 103155 No I t e m Annualized Present Fares ~
Coach Miles 1832~158 18314000 Equipment Maintenance amp Gara~ Expense
4110 Supv - Shop and Gar $ 142788 $ 142800 4140-2 Repairs to Rev E~uipment 1097376 848800 4150 Servicing Rev Equipment 308373 307700 4160 Tires - Rev Equipment 123305 125200 Var Other Maint Accounts 151444 147300
Total $1823286 $1571800 Transportation Expense
4210 Supervision of Transp $ 487284 $ 487300 4220 Drivers I vrages 3767184 37589001= 3) bull
4230 522175 523800 )0
4240 Oil for Revenue Equipment 17256 19500 JOJ
Var Other Trans Exp Accounts 60153 58200 Total $4854052 $4847700
Traffic and Advertising 4470 Advertising $ 21593 $ 21600 Var Other Traffic Accounts 7)329 76500
Total $ 94922 $ 98100 Insurance
4510 Salaries and Expenses $ 18818 $ 18800 4520 Insurance PL amp PD 786322 542OOOp 4541 Insurance Workmens Compo 51458 50100p Var Other Insurance Exp 11357 11700 - shy
Fuel for Revenue Equipment _
J Total $ 867955 $ 622600 Administrative and General
4611-2 Gen Officers - Sal amp Exps $ 90806 $ 73500 4613-6 Gen Off Employees - Sal ampExp 138043 137000 4620 Law Expense 12910 16000 4630 Gen Office Supplies amp Exp 51689 44800 4640 Communication Expense 41143 45500 4652 Employees vlelfare 525737 498200 4655 Purchasing amp Stores 120790 120800 Var All Oth~r Adm amp Gen Exp 70090 53900
Total $1051208 $ 989700 Rents 15000 15000
Total Motor Coach Expense $8706423 $8144900 Cents per Mile 47middot50cent 4447cent
Coach Miles Ouer Exp Case I-B - Applicants Proposed Fares 18171 000 $8088900 -----shy
Expennes Variable with Milos Wage rates used herein are those which Ac 4140 463centmile prevailed immediately prior to 6154
4150 084 50 of total The cost of tho wage increase toJhich beshy4160 068 comes fully effective on 12154 is clnwn 4220 2052 separately in Results of Operation table 4230 286 4240 011
Total 2964centmile cent See Table 5 for Amount Under Proposed Fares 20 shy
TABLE 4
IDS ANGELES TRANSIT LUIES AMORTIZATION AND INTEREST ALLOWANCE
PAVING AND REMOVAL OBLIGATIONS - CASES I AND II APPLICATIONS NOS 35601 AND ~5728
A - Obligations from Abandonments Prior to 1954
Yearly Amortization $132000 Interest 16000
Total $148000
B - Obligations from Abandonment of Portions of IV and Rlt Lines (July 25 1954)
Yearly Amortization $ 4000 Interest 2000
Total $ 6000
C - Obligations from Abandonments as Proposed in Application No 35728 (November 1 154)
Yearly Amortization $ 35000 Interest 2JOOO
Total $ 55000
For Case I - Items A + B $154000
For Case II- Items A + B + C $209000
Includes cost of removal of electrical distribution system ($123700) and of substation equipment ($21600)
- 21 shy
LOS ANGELES TRAl~SIT Lli~S
RJBLIC LIABILITY PROPERTY DAl1AGE AND 1l0RIJftElI i S CCMFEi-TSATION EXPENSE illLATED TO SOUln~EbTT MILES Aim R3W-RLS PAS~lWEFS
CASE I - UNDER PRHSENT OPSHATIONS 1947 - 1950 Inc Jan-May Est FOr
Line Ito m 1951 1952 1953 195412 MosEnd No Total Av per Yr Annualizod 10 31 55
1 Lossos paid (n) $ 3890 $ 972 $ 1082 $ 902 $ 580 $ 262 2 Losses ostimato~ (a) 39 10 52 280 634 881 3 Reinsurance costs (a) 282 71 62 69 ____81 65 4 Total Losses_amp Insurance (a) $ 4211 $ 1053 $ 1196 $ 1251 $ 1295 $ 1208
5 Expenses paid (a) $ 1536 $ 384 $ 353 $ 385 $ 242 $ 170 6 Expenses estimated (a) 7 2 _ __ 11) 61 182 24S 7 Total expenses (a) $ 1543 $ middot 386 ~ 363 $ 446 $ 424 $415 8 Total LossesReiils amp Exp (a) $ 5754 $ 1439 1559 $ 1697 1719 $ 1622
(Lina 4- + 7) I 9 Number of claims filed 59991 14998 11588 11104 10246 9228
N
N 10 Vehiclo miles (millions) 153 4 384 356 351 346 336 I
11 Revenue Passon~crs (millions) 10093 2523 1924 1746 1661 1531
12 Loss Per 11i1 lliilos (4 ~ 10) ~27451 $27451 ~33596 $35~641 $37428 $35952 $35000
13 Loss Por i-Hllion Pass (4 11) $ 4172 $ 4172 ~ 6216 ) 7165 ~ 7797 $ 7890 $ 7500 14 Expensos por claim (7 f 9) h
ltfgt 2572 Y 25middot72 i) 3133 $ 4017 4138 $ 4497 $ 45 15 Claims per million miles (9 10) 391 391 326 316 296 275 280
16 Claims per million pass (9 11) 59 59 60 64 62 60 60
Ul p- CD (I)
(a) Thousand of dollars amp8
t-G o ~ H
J N
TABLE 5 LOS ANGELES TRANSIT LUTES Sheet 2 0 f 2
ESTIMATE OF PUBLIC LIABILITY AND PROPERTY DAMAGE AND WOBKMElJ 1 S COMPENSATION EXPENSES
FOR 12-MONTH PERIOD ENDING OCTOBER 31 1955 UNDER CASE I-A AND CASE I-B - PRESENT OPERATIONS ~lITH PRESENT amp PROPOSED FARES
Line 110
Cost Factors 1 Claims per million revenue passengers bull bull bull 2 raquo raquo vehicle miles bull bull bull 3 Expense per claim bull bull 4 Losses per million revenue passengers
raquo raquo vehicle miles bull bull bull bull 5 bull bull
60 280 45
7500 35000
Estimated Expense For PL and PD and Workmens Compensation Insurance
Case I-A Present Fares
6 Number of rovenue passengers (millions) 1395
7 Number of vehicle miles(millions) 3275
A - Basod on Number of Passengers 8 Losses 9 Expense
10 Total
B - Based 11 Losses 12 Expense 13 Total
$1046200 376700
$1422900
on Number of Vehicle Hiles $1146200
412700 $1558900
14 Average of A and B (PL amp PD and Workmen 6 Compo - $1490900
15 Workmens Compensation Insurance 101~200(a) 16 PL and PD Insurance 1389700
Distribution of Total PL amp PD Percent
17 Rail Operations 541 $ 750400 18 Trolloy Coach Operations 7 97300 19 Motor Coach Operations ~ -542000 20 Total 100 $1389700
Case I-B Proposed Fares
1341 3244
$1005700 362100
$1367800
$1135400 408700
$1544100
$1456000 100200 (b)
1355800
$ 732~100 94900
528800 $1355800
(a) Rail=$43lOO Trolley Coach=$8000 and Motor Coach=$50100
(b) Rail=$42 600_ Trolley Coach=$7 ~ 900 and Hotor Coach=$49 (00 _ --- I
- 23 shy
lA3LE 6
LOS ANGELES TRANSIT LINES ESTIHATE 041 OPERAT1NG TAXES
FOR 12 MONTHS ENDING OCTOBER 31 1955 CASE I - PRESENT OPERATIONS
APPLICATION NO 35601
Book Record Case I-A Case I-B L1ne I t e m 12 Months Present Proposed
No End 5-31~ Fares Fares(~ ) -=-----=-(3)~--=--~r(4~)~-(1)
1 City Franchise Taxes $ 473687 $ 434600 ~ 481900
2 Property Taxes-Ad Valorem 457963 435000 435000
3 Fuel and Oil Taxes 360580 337700 335100
4 Motor Vehicle License Taxes 136984 Ib8 900 168900
5 Transportation License 15600 21~00 (3 B of EHlshy
6 payroll Tuxes 265000 262500
Other raxes 7000 70007
Total ~ip 1 603 800
Net after weight fee credit
-24shy
I CHART
40 42 44 46 Ll8 50 52 53 200
TRANSITII
180 p~~ PASSENGERgtf~
o S71 o~ -If- -shy 1
~ 160 I ~ - TRENDS
i If - e1 - shy ( INOex 1940= 100)
bYpshyl ~
~ j (oS
140 irf ~- ~LOSAN6ELpoundS TRANSIT LINE5i W --
120 1 r
~ 1 WITED STATES 100
r--I
I--STATE OF CALIFORNIA 80
200 ~ LOS AN6ELES COUNTY
180 lt SELECTED TRENDS ~ lt~ ~ ( I NDpoundX 1940 = lOa)
+~ Xshy 160 ~O REGISTRATIONW l tI ~
lt
~ 140 ~
pshy -shy fx 1 - POPULATION
~ 120 f~ li~~ qshy
~ ~ ~ ~1
LATL PASSENGERSw
~ - - ~gt6 ~ ~ 100 r-- AU~ 101 t- ---AUTO REGISTRATION pc roo Io pltl i--
4 ltgt
llt4Glf ~~~shy PER 100 POPULA nON 80
240 LOS ANGELES
IfrZONE CA iN 7shy j I ltIshy 15-1 ISi I~ TRANSIT LINES10k IV 7 30 so 2WSl jr4tJl 7Ye
1 LOCAL rARe
220 OPERATING STATISTICSDRIVERS WAGfS 72 85 88 93 95 1-00 123 135 1-40 middot47 middot52 Iss 1middot75 81 $ PER 1I0VR -
( INDEX 1940 = 100)200 --shy 7 J X bullbullbullbulli
I- ~ I ~ DRIVERS WAGES180 V [r ~~ ON AN HOURLY BASIS
~~ shy~ 160 ~~ t~~ ~l
lJJ 6~ f- if ~~ASSENGER REVENUE
~ fl ~ V140 ~
OPERATING EXPENSES17 ~~I ~~ ~
Ill I--shy
---- r-shy120
I---AVERAGE RATE OF FAREl 6 t ~~bull ~~ ~~r-
1 lt1 t~middot ~~ ~ PER PASSENGER 100 -- yq M~ ~ r---
t---VEHICLE MILES OPERATED~ -00
80 52 )340 42 44 46 48 50
~
LOS ANGELES TRANSIT LINES APPLICATION NO35601 APPLICATION NO3728
General
The purpose of this engineering~economic roport is to set forth
the operating results of the Los ~eles Transit Lines for a twelve-month
period ending October 31 1955 under present fares and under fares proposed
in Application No 35601 and under present operations and under the plan of t-middot
motor coach substitution for certain rail lines as set forth in Application
No 35728 The results of operation Jill be shown under thefolloVing
bases
Case I-A Present Operations with Present Fares
Caso I-B Presont Operations with Proposed Fares
Case II-A Proposed Motor Coach Substitution l-li th
Present Fares
Case II-B Proposed Motor Coach Substitution with
Propo sed Fares
i~here Case I is referred to in the text it implies both Case I-A
and Case I-B and where Case II is referred to it implies both Case II-A and
Case II-B
Territory Served
Tho Los Angeles Transit Lines serves an area roughly thirteen miles
in diameter centered around the downtown business district of Los Angeles
For faro collection purposos this is divided into an inner zone approximately
nine miles in diameter surroundod by a ring two miles in ltlidth which is
_ 2 _
separated into seven second zoncs Additional third zone areas arc served
as follows
Eagle Rock and Griffith Park districts in the North
Beverly Hills district in the West
Inglmrood and South Gate districts in tho South
Further to the south two fourth-zone areas are designated as Hawthorno
Zone 4 and Hollydale Zone 4
Historical Aspects of Traffic Trends and Operating Statistics
Chart 1 provides a historical background for traffic trends and
operating statistics of Los Angeles Transit Lines for the period from 1940
to 1953
Present and Proposed Fare Structures
The fares currently charged and those re~uested in Application
Nc 35601 are as follows
Present Fares
I-Zone - 2-Zone 3-Zone J-Zone
Adult l5~ or 20cent or 25~ or )O~ or T Til + 5~ T loi T l5~
School 9~ l2cent l5~
T = Token sold at 7$100
Proposed Fares Set Forth in A~lication NQ 2~60l
Adult 29~ 35~
School 20cent
Sold in books of 40 rides
- J shy
In summary thepropos~dchalges aro - t - ~ ~- shy
(1) Eliminate tokens
(2) Increase single zone fare middot tQ 17 with 6~ increments for each addi tional zone
(3) Increase school single-zono cominUte fara to lO~ with 5cent incroments for each add~ tional zone
Changes in Operation - Case II
In Application No 35728 Los Angeles Transit Lines requests authority
to convert about 40 of its present street car serVice to motor coach service
and at the same time to convert ono line nbw operated by motor coach to trolley
coach Following is a list of the street car iines ~hich the company proposes
toconvort to motor coach
No and Name of Line Amount to be Converted
No 5 - Eagle Rock and Hawthorne Entire Line
No7 - So Broadway and Civic Center n II
No8 - W54th St and No Main st II No9 - W4Bth St-Lincoln Park In part From W end of
Line at Crenshaw Blvd and 48th St to Broadway and 11th St
FlI_ S Vermont and Union Station Entire Line
IIW _ W Washington and Highland Park In part From Broadway and Pa saQena Ave to N end of the line at Y middot)l~Y lv and Avenue 50
The motor coach line to be converted to trolley coach is
No and NRme of Line Amount to be Converted
Entire LineNo 41 - Alvarado Street
Passengers and Passenger Revenuo- Case rand Case middotII
Adult Passengers and Revenue
Because of the method of fare collection the company does not main-
t[in records of passengers carried HowErVer it does maintain a daily record
of cash fares and token fares This revenue informationi s used herein in
conjunction with a traffic check which ltlas m~de to determine the n~ber of
passengers by zones The traffic check was conducted in 1950 in connection
with Application No 32335 and the resulting percentage distribution by zones
of adult passengers is sho1rm in Column 1 of the following tabulation The
column to the right shows the percentage distribution used in this reportwhich
has been adjusted to reflect variation in diminution by zones and in the trea tshy
ment of certain passengers handled to Hollywood Park
Percent of Adult Passengers
As Used in As Used in ARglication )2225 This Rill2ort
l-Zono 674 666 2-Zonc 286 293 3-Zone 37 3~5
4-Zone 03 15
1000 10000
The following tabulation shows the fares in effect from the lattor
pc~rt of 1950 when the present pattern was established to date The first
column shows tho actua l adult I-Zone fare while the second column shows the
computed average adult fare for all zones Average Adult Fere
Period ~ Adult I-Zone Fare All Zones
12-10-50 to 1-23-52 lOp 1182l 1-24-52 to 11-2-52 15~ or 225p 14bull58
11-3-52 to 11-29~53 15~ or 340cent 1554
11-30-53 to Date 15~ or 7$100 1655
This average f are is estimated at 1664~ for the rate year under present fares because of the declining use of tokens
- 5 shy
The trend of total adult pa~s~ngers is shown in Chart 2 The
estimated adult revenue passengers for the twelve-month period ending ~
October 311955 under prosent fares are135363000 andare shown in the
chart at m1dpqint of the rate year Token use under present fares was
estimated to be 35 in each of the four zones The diminution or loss of
passengers due to increased fares was estimated to be 25 of the percentage
incrbase in the fare involved The estimated 135363000 adult passengers
developed in Chart 2 are also shown in Table 1 Coi1lffiIl 5 Line 13 and flrEl
distributed to the various zones on the basis of the percentages shown in
the above tabulation
Hollywood Park passengers are esti~ated to be 200000 annually
and the fare for these passengers is 10~ Although these Hollylood Park
passeng~rs may originate in the dOlntown area they become in essence new
passengers when they board the Hollywood Park Line since they have no transshy
fer privileges Adult passengers and revenue (shown in detail in Table 1)
for the twelve months ending October 31 1955 are summarized as follows
Passengers Revenue
Presont Fares 135563000 $22513000
Applicants Proposed Fares 130039000 25037000
Following is an estimate of school passengers and revenue and
U s Postal employee passengers and revenue
School Passengers Revenue
Case I-A Present Fares 3358000 $319000
Case I-B Proposed Fares 3245000 351000
6 shy
U S Post Office
Pas senger s Revenue
Case I-A Present Fares 616000 $ middot88000
Caso r~B Proposed Fares 616000 105000
Token Adjustment
It is estimated that based upon tho present experience of applishy
cant three tokens out of 1000 tokens sold or 0356middot will never be redeemed
This amount will be considered as an added revenue and is estimated at
$20000 under present fares
Other Revenue
From such sources as rent interest on franchise bonds charter
advertising and miscellaneous there is an estimat~d rovenue of $187000
under all cases
Revenue under Case II - Proposed Motor Coach Substitution (Application No 35728)
UnderCas8s II-A and II-B proposed motor coach substitution the
estimated rovenue will be the same as in Cases I-A and I-B respectively
Mileage
The estimated mileage to be operated during the rate year is
shOllTn in Table 2 This estimated mileage is based upon a study by
Mr William F Hibbard Associate Transportation Engineer of the
Commissions staff and is shown as a separate exhibit in this matter
- 7 shy
Operating and Maintenance Expenses -- Case I
Estimates of operating and maintenance expenses are shown in
Table 3
General
Unless otherwise stated in the following paragraphs operating
and maintenance expenses are based on experience and conditions currently
prevailing In estimating operating and maintenance expenses it is
estimated that 100 new 48-passenger diesel coaches will start operating
at the beginning of the rate year replacing older coaches now in
operation These new coaches will slightly increase the fleet cost of
tires and substantially decrease the cost of Account No 4140 - Maintenance
Expense
Wages All wages are included in the detailed estimates
shown in Table 3 at the level prevailing immediately
prior to ~ 1 1954
Wage Increase The wage increase which becomes fully
effective on December 1 1954 is sh~m separately
on Line 12 in Table 10 Results of Operation
Fuel The cost of fuel is based upon the current level
of costs including an ircrease in the Sales Tax
on diesel of 05 effective July 1 1954 for
the City of Los Angeles
Tires The unit cost of tires is based on that prevailing
under contract for the period July 1 to Decernber-31
1954 The estimate of the cost of tires reflects the
- 8 shy
~ - - -- -- - - shy
estimated higher unit middot tire cost per mile for the
loa ne coaches which are to be put in operation at
the beginning of the rate year
Power The cost of power reflects the increase recently
granted to Southern California Edison Company by
this Commission
Public Liability and Property Damage Insurance and Workmens Compensation Insurance Coverage for these types
of insurance is carried with Transit Casualty
Company the stock of which is owned by the following
affiliated or subsidiary companies
Percent of Common Stock Owned
National City Lines 30 Los Angeles Transit Lines 24 St Louis Public Service Company 46
Total middot 100
From 1953 Annual Report to the Insurance Department State of California The present premium rate charged by Transit Casualty Company to applicant is 7 of passenger revenue In this report as in pre~ous reports the estimate of the Commissions staff has been predicated on unit costs related to the number of passengers carried and tho vehicle miles operated The estimate for Case I is shown in Table 5
Operating Expenses - Case II
Case II - Operating expenses are shown in detail in Table 11
and are based on operations of Casc I adjusted to reflect the estimated
decrease in rail expenses due to the abandOnroent of lItrEiet car operations
as proposed in Application No 35728 the increase in motor coach expenses
re~uired by the substitution of motor coach service for street car service
and the increase in trolley coach expense due to the conversion of Line
No 41 from motor coach operation to trolley coach operation with a
corresponding decrease in motor coach expenses
- 9 shy
Operating Taxes - Case I
Franchise Taxes cmd Business Licenses
Under Case I Present Operationafrnnchise taxes to the City of
Los Angeles were determined by applying current tax rates to estimated
revenues
Ad Vnlore~ Taxes
The estimate for ad valorem taxes under Case I is based on an
assessinent of $6496250 and a tax rate of $67402
Fuel Taxes
Fuel taxes are based on the following per gallon rntes of Federal
and State Taxes
illA Cents ner Ga11Qn Effectiye Dates
Diesel Federal 11-1-54 to 3-31-55 12i ~ 4-1-55 to 10-31-55
State 7 11-1-54 to 6-30-55 ~ 2 ~ 7-1-55 to 10-31-55
Gasoline Federal 2 ~1-1-54 to 3-31-55 11
2 ~ 4-1-55 to 10-31-55
State 6 ~ 11-1-54 to 6-30-55 5i cent 7-1-55 to 10-31-55
Motor Vehicle Licenses
The estinate for motor vehic10 licenses is based on the registrashy
tion weight and vehicle license fees Which will be in effect during 1955
under equipmontrequiremonts as sot forth in the report by Public Utilities
Commission Associate Engineer Wil1in~ F Hibbard
- 10 shy
Trapsportati CD Ii CADse Tax
This license tax is assessed by the Board cf Equalization and
represents 3~ of the gross revenue derived from operations in non-incorporated
areas by motor and trolley coaches The estimate is based on
curront tax rates applied to estimated revenues
Pavroll Taxes
Tho ratos in effect aro 2 for Social s~curity taxos and 03 for
Federal Unemployment Insurance Paymonts to tho State Unemployment funds
will remain at zero as a sufficient accumulation of funds is presently
on hand It is estimated that 94 of applicants total payroll will be
subject to Social Security Tax undor the increased coverago offective
January 1 1955 and that 100 of the employees are subject to FUI taxes
at $3000 per year
Other Taxes
Other taxos include operatorsl licenses Foderal transportation
ta~ manufacturers excise taxes and other miscellnneous taxes The
estimate is based on actwd experience for the yeor ending May 31 1954
Income Taxes
State Corpor8tion Franchise Taxes have been computed at the
current rate of 4 Federal Income Taxes have been computed on tho basis
of a change in rate effective April 1 1955 On this basis the normal
tax 0 f 30 was used for five months of the rata year and 25 for soven
months of the rate year Tho surtax of 22 remains constant throughout
the year In calculating income taxes in both Cnse I and CasarI an
interest credit of $100300 was used
- 11 shy
Rate Base and Depreciation Expense
In General
In accnrdance wi th current Cornmi ssion practice of treating all
property en a remaining life basis the Commission Staff has made an
analysis of Applicont1s property As 0 rosult as of January 1 1954
1 Motor coaches of the series 6200 6300 6600 6700 6800
and 6900 (404 coaches) were put on a total life basis of
12 years This is considered reasonable in view of the
attained age and the condition of the fleet
2 The annual accrual of the Genoral Office Building (Acct 522)
was adjusted to reflect a totel life of 50 years
3 Buildings in Accounts 523 and 524 were assigned a remaining
life of 24 years with depreciation reserve adjusted to reflect
age-life condition
Under both Cpses I and II 100 nel motor coaches have been included
in the rate base as of November 1 1954 tho beginning of the rate ye~r
Other Lpnd (Acct bull 503) and Rights of Way (Acct 502) hewe been
adjusted to reflect estimated original cost
Under Cese I
150 motor coaches of the 6000 and 6100 series (including current
work orders for rebuilding) have boen deleted due to the inclusion of the
100 new coaches as well as tc conform to the equipment roquirements set forth in
Staff Witness Hibbards Exhibit ith 10 f ~r spares
All property on group plan depreciation reflects the current
4 rate of accrual with nermal additions and retiroMents tken into considerashy
tion
The 40 P C C crrs on uni t plan depreCiation wore extended as
of Innuary 1 1954 to a total life of 25 years
12 shy
Under Case II
As evidenced by correspondenco betoJeen the Commission and
Applicant and the request for changes in accounting practices as outlined
in a letter from the Applicant to the Commission under date of April 291954
it is assumed that applicant intends to completely convert to motor coach
operation by the end of 1965 The Rate Base under Case II assumes that all
property relnted to the rail and trolley coach oper2tion ltlill be fully
depreciated by that time This would include all rel~ted items of property
hitherto considered non-dopreciable those rel~ted ~o the present proposed
conversion havo been charged to the group plan depreciation reserve as of
November I 1954 those remaining 2xe depreciated over ~ 12 year period
boginning January 1 1954
150 coaches of the 6000 and 6100 series have been included in order
to satisfy oquipment requirements as outlined by Staff litness Hibbards 1
Exhibit No The work orders for rebuilding 83 of those coachos have
been put on a 3 year lifo (Soc Chart 5)
In conjunction wi th the rate base presentAtion there are shown in
Chart ) pictures and data of the streetcars and trolley coach equipment as
of September 1 1954 Camp~rt 4 shows ~ictures and data of motor coach equipshy
mont as of September I 1954
Amortization and Interest Allowance
Amortization and Interest allowance f or abandcnment oblig~tionsunder
Cases I and II is sho~m in Table 4 The estimates ccntained therein refloct
an income tax credit on the total amount of the obligations The estimate
under Case I is fer obligations incurred prior to 1954 and oblig~tionsconcerned
nV ttwith changos on tho ruld tTRtl lines made effective JUly 25 1954 Under
- 13 shy
C~se II is added the estin~ted obligation in connecticn with the abandonment
nsprop0sed in Application No 35728
Results of Operatirn
Ou-so I Relbvant infr-rr1pticn sh0vm in the f0regcing text ancl
in the tables is summarized in Table 10 - Estimated
Results of Operation - Case I and from this informashy
tion a rate of return and operating ratios are
calculated under Present and Proposed Fares
Case II Using the basic inf0rmation as used in Table 10 in
c0 njunction with the estimate of operating expenses
for Caso II as shown in Table 11 the rates of
return and operating ratins under Case II are developed
in Table 12 - Estimated Results of Operation - Case II
- 14 shy
LO S ANGELES TRANSIT LINES
TREN 0 OF WEEKLY REVENUE- PASS ENGER5 (E)(CLU SIVE OF POSTAL EMPLOYEES AND RIDERS ON SCHOOL FARES)
FEBRUARY 1952 TOJULY 1954 AND
ESTIMATE FOR 12 MONTHS ENDING OCT 31 1955
~ 3middot5 W w ~
a w 0
_ I cJ)
a 30 uJ 19 Z UJ cJ) cJ)
laquo 0
IL 0 25
([)
z 0 J J
~
bull ~ I
l T
-
- -
ltI-N
- 2
- wr-
u
- 2
--
w
- u
A I
1 ( A A I
j
~ J r 1f
I a V J 1 fv V V ~J
V 1IV I 1 II I
I I Jr 0
~
l) - 0 (c
rlt1
gt bull r gt 0 10 z I z ~
I I I w iw
I
I I EST I~ATE FOR 12 foONTHS ENDING OCTOBER 31 1955 w I UNDER PRpoundSENT FARES-
I w
u A - PASSENGERS PER WEEK bullbullbullbullbullbullbullbullbullbullbullbull 2 596 000
u B - PASSENGERS PER yEAR bullbullbullbullbullbullbullbullbullbull 135 363 000
- Z Ii
w I
w I
lt I
u u i
it i--0 w
~ - -lt 0-H gt- =-1--1 a 0
-Y
VI
I
I )
T ~20
JAN f EBMAR APRoMAY J UN JUL AUG SEPOCTNOV DEC JANFEB MARAP R MAY JUNJULAUG SE P OCT NOVmCJANfEB MARAPRMAY JUN JUL AUG S EP OCTNOV DE C JAN FEB MAR APR IoiIAY JU N gt- c-+shy
rv1952 953 954 1955 Wl
LOS ANGELES TRANSIT LINES ESTIMATE OF REVEruE PASSENGERS lID PASSENGER REVENUE
FOR 12 MONTHS ENDInG OCTOBER 31 1955 CASE I AND CASE II APPLICATION NO 15601 AND NO 35728
Present Fares Applicants Proposed Fares Est
Percent of Dlmin- PassenshyLlne of Total Fare Zone Passengera Revenue Fare utlon cera Revenue -=-----Ho-- Item Orldnalt Adjusted (Cents) Paus i cent (Cents) ~ cent cent
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
Adul t Passengers
lOne-Zone 15 65 58599 $ 8790 17 333 56648 $ 9630 2 1427 35 31553 4507 17 475 )0054 5109 3 666 666 1475 100 90152 $13297 86702 $14739
4 Two-Zone 20 65 25780 $ 5156 23 3middot75 24813 $ 5707 5 1927 ~ 13881 2677 ~ 481 13212 30)9 6 293 293 19751 100 39661 $ 783) 38026 $ 8746
7 Three-Zone 25 65 3476 $ 869 29 400 3337 $ 968 a-- 8 2427 22 1871 454 29 485 1 180 516 I 9 38 395 2475 100 5)47 $ 1323 511 $ 1484
10 Four-~one )0 65 1)2 $ 39 35 417 126 $ 44shy11 2927 35 71 21 35 488 68 24 12 ~ ----l5 29 75f 100 20) $ 60 - 194 $ 68 13 Sub-Total 1000 1000 ~ 135363 $22513 1300)9 $25037 14 Holly Park 10 200 $ 20 10 200 $ 20 15 Total Adult 13556) $225)) 130239 $25057
16 School 9 2797 $ 252 10 278 2719 $ 272 17 School 12 561 67 15 625 526 79 18 Total School )358 $ )19 )245 $ 351 19 Post Office 1427 616 $ B8 17 616 $ 105 20 Grand Total 139537 $22940 1)4100 $25513
cent (000) Omi tted ~ 1F Weighted Average Fare ~ If See Chart 2 + + As deter~ined by traffic checks and used in previous Staff reports
CHART 3
rr LOS AtJGELES
TRANSIT LINES
STREET CAR AN 0 TROLLEY COAe H
EQUIPMENT AS OF
H4 OR K4 OPEN END WOODEN SEATS H3 CLOSED ENDLEATHER S EATS SEPTEMB E R f 1954
JIshy
OLDER T YPE OF PCC CAR NE WER TYPE OF PCC CAR
8000 SERIES TROLLEY COACH 9000 SERIES TROLLEY COACH 9100 S ERI ES TROLLEY COACH
STREET CARS TROLLEY COACHES
ALL H3 H4 K4 PCC OTHER TOTAL 8000 9000
SEATS 48 48 48 12 5-61 SEATS VARIOU 44 4540-28 SEATS
EQU IPME NT ASSIGNMENTS UNDER PRESENT CoMPANY BASIS EFFECTIVE SEPTEMBER 12
9100
46 TOTAL
SCHEDULED SPARES
TOTAL ASSIGNED UNASSIGNED
TOTAL OWNED
SCHEDULED
SPARES
TOTAL ASSIGNED UNASSIGNED
TOTAL OWNE D
354 22 57 5
411 2 37 101 13
60 165 37 512 40 EQUIP MENT RE QUIREMENTS PRESENT SERVICE FOR RATE YEAR)
354 36
390 122 512
34 6
40 30
81 16
81 9
90 20
110 EQUIPMENT REQUIREMENTS WITH SERVICE AS P ROPOSED IN
ApPLICATIO N 28 (FOR RATE YEAR
SCHEDULED 20431 23 150 93 4 2 21SPARES 1015
TOTAL ASSIGNED 165 22525 10335 UNASSIGNED - 7
TOTAL RETAINED 225 11025 16535 To BE RETIRED 0190 2 7 37 TOTAL Now OWNED 60 110512 215 165 3735
-lE- ESTI MA TED BY P U C STAFF E
2 r
C
-
6600 SER IE S 6700 AND 6900 SER IE S 6800 SER I ES
L I NE 6200 No TE~ 5000 6000 yf 6 100 yf 6300 6400 6600
MACK G M e G M e G M e G MC G M C I i~IA K( amp UODEl NUMBER C-45 -CT TD-4502 rn -4505 TO- 4506 TDH-5103 TOH shy 36 1 2 YE AR BUilT l~ 1940 1941 1945 1951 1947 3 DATE I N SERV I CE 7 -40 1-42 7 - 45 7 - 51 7 -47 4 NUMBER O F CoACHES 50 55 95 200 25 57 5 PU RCHAS ED NEW OR US ED N N
6 S EATI NG CAPAC IT Y 45 45 45 51 36 45 40
~ LE NG TH - OUT S I DE 3~ -0 3~ - 0 37 -0 3~ -6 30 - 6 3~ - 0 3~ -0 WI DTH - OU T S IDE -Oil _-ttl 8 -0 -611 8 - 2 _OM I - 0
9 HE I CHT - OU TS I DE 9 -6 9 shy 5t 9 -6 9 t 4t ll 9 - 2 9 0 9 -6 10 A I SL( HEADROOM 76 77 78 78 76shy 8 76
11 A ISLE WI DTH 19 2 1 26 22 22 20 12 TY PE O f DR I V( HYD HYD HYD HYO HYD HYD
13 BRA KE HORSE POWER amp FUE L 165io) 165( 0) 165(0) 110(0) 165(0) 165(0) 14 Bo DY f RAME MA TE R I AL AL AL AL AL AL NOT G I VE N 15 Bo DY PANEL ~1ATE R I AL AL AL AL AL AL NO T GI VEN
16 ROO F MATER I AL AL AL amp ST AL AL amp ST AL amp ST NO T G I VEN
~ ~ - AT DCC CMBER 3 1 1953shy14 26 15298AV ER AG E INVE ST PER CoACH $ ~ 21962 $ 13 992 17 60 14 209
19 INVESHIENT 1 354 9~ 3 059 506 549 044 7 97 5~ 2 lt164 650 99 466 10 000 509 20 RE SE RV E 1340 6 2 462 923 135951 503 6 1369 1 02 90 896 7 147 497
21 REM AIN ING VALUE (I NCL SALV) 14 250 596 583 413 093 293 869 1 095 548 8 570 2853 012 22 REMA I N I NG LIF E lOYR BAS I S 22 MO 90 MO 43 MO 52 MO 9 MO
23 REMAIN I NG L IFE 12YR BAS I 46 MO 90 MO 67 MO 76 MO 33 MO
yf THC COS T OF REBU IL DING 102 CoACHES OF THC 6000 AND 6 100 SE RIE S NOT I NCLUDE D HEREI N (SCE NEXT PACE)
1941 AN D 1942 MA T ER I AL S WE RE SuBJ ECT TO PR I OR I T ( S AND THEREFOR E STEEL WAS USE D IN PLACE OF
ALUMI NUM FO R BO DY FR AMES PAN EL S AND ROO FS I N SO ME COACHE S O F TH E TD- 4505 SERI ES
G - GASOl I NC D - D I CSE L AL - ALUM I NU M ST - Srr CL HYD - HYDRAUL I C
lt~i
~~4
CHART 4
LOS ANGELES TRANSIT LINES
MOTOR COACH EQUIPMENT
AS OF
SEPTEMB ER 1954IS_T 6000 SER I ES
6200 AND 6300 SER I ES
6
5 CHART
1~A~PLE OF THE DAMAGE TO BODY PANE LS M D RI VET ED JOINTS
2 - COACH WITH ALL BODY PANE LS Il l NDO V FR M1ES M~) SOIIE BO DY BRAC IN G REMOVED
l
LOS ANGELES TRANSIT LINES
PROGRAM OF
REBUILDING MOTOR COACHES
OF THE
6000 AND 6100 SERlES
j - PAR TI AL Re STO RA TI ON SODY PA NE LS Ix I I I )SI I ELD FRA Il E REPLA CED AFT ER kt C~ D I T I ON 116
I+ - AL L BO DY PANE LS AND S I DE W I~ DO J FRAhi ES RE shyPLACED AND ~ ESTO~ED
5 -INT ER IOR SHOW IN G CO MPLET E RE MOVAL OF SEATS AND OTHE R AC COUTERM ENTS REPLACED OR RECOND ITIO NED
6 -COMP LETE D I NTER l OR - t EIJ FLOO R
COV ER IN G WIT H S EAT CUSH IONS ETC
7 - COMP LET ED EXTER l OR COACH REPAI NTED AND READY FOR SERV I CE
I N 195 1 Los AN GELES T RANS IT LINES I NAUGURA TED A PROGRAM OF REBU IL D I NG GMC CoACHES OF THE
6 0 00 (BU ILT IN 1940) AND 61 00 ( BU ILT IN 1941) SER IE S A s OF JU LY 1954 62 COACH ES HAD BEE N
REBUILT WITH 40 ST ILL ON WORK ORDERS BUT IN PROCeSS THE CURRENT EST IM AT ED CO ST OF THIS
P ROGRMil I S AN AV ERAGE OF ~3500 PER COACH THE P U C S TAF F EST IMA TES THE LIF E OF TH ES E
COACH ES TO BE AN ADDIT IO NAL THR EE YEAR S FRO M DATE OF COMP LETI ON COS TS OF REB UILDING AR E
SHOWN I N THE RATE BAS E RE LATIV E TO THE APPROP RI ATE WORK ORDER AN D THEREFORE ARE NOT INCi UDEu
IN THE I NV ESH IENT FOR 60)0 AND 6100 S ERI ES COACH ES SHOWN ON CHAR T No 4
LOS ANGELES TRANSIT LINES SSTIMATED RATE BASE AND DEPRECHTION EXPENSE
12 I~ONTHS ENDING OCTOBSR 31 1955 CISE I - VnTH PRY-SENT METHOD OF SERTICE - APPLICATION NO 35601
Gum October 31 1954 As of October 31 1955
Line
No Item (1)
Iccnunt Number Invcstment
(2)
(3) Reserve
(4)
Inve stmen t Less
Reserve (5)
Remaining
Life (6)
In
Inve s tIDen t Less
vestment Reserve Reserve (7) (8) (9)
Depreciation Expense RAte YeAr
(10) LAND
1 2
Rights of VVAY Other Lmd
502 503
S 426974 1931112
$ 426974 1931112
$ middot 426974 1931112
$ 426974 $ 1931 112
EQUIP~NT ONl~ITDEPRECI~TION
3 Auto Tr011ey pcc53033Jf~034288 $ 7167640 $ 6866648 V3rious $14034288 $ 8125353 $ 5908935 $ 957713
PROPERTY ON GROUP DEPRECIATIJN OverheAQs
4 Engineering 501 $ 44651 $ 44651 OrgAnizAtiorfshy 546 601749 601749~ 5
6 Interest 547 middot 916884 916884 7 Gnding 504 1117084 1118084 8 All Other 505-545 27021634 4 Base 27141634 _____ _________ 9 Suttotal
(Lines 4 to 8) $29702002 $22441215 ~ 7260787 $29823002 ~23516286 $ 6306716 $1081071_
10 Tr)W(Lines 123 amp 9) ~46094376 $29608855 ~16485521 $46215376 $]1641639 $14573737 $2038784
11 RATE BASE Use - $2039000 12 Avenge 0f $16485521amp ~1+573 737 $15530000 13 Work in Progress 100000 14 M1terials amp Supplies 735000 15 Bond Deposit - City Fnnchise 411000 16 Deposit for PL Insurance 150000
17 Totil RAte BAse $16926000 8 t ~
-It- rhjor PArt of Acct 546 is Supervisinn --J
-----
LOS ANGELES TRI-NSIT LINES ESTThiIiTED Ri1TE BASE AND DEPRECllTION EXPENSE
12 NiONTHS ENDING OCTOBER 31 1955 CIlSE II - SSUMING MOTOR COACH SUBSTITUTION ON CERTHN RAIL LINES AS PROPOSED m iiPPLICilTION NO 35728
---- --------------- As f Oct)ber 31 195amp As of Oct0ber 31 1955 Inve sUn8nt Investment IBpreciaticn
Line Account Le ss REffiainin~ Less ExpensE No Item Number Inve-stmcnt ReS8riTe Reserve Life Investment Reserve ~ Reserve Rate Yeqr
(T) T2) 0) (Ii) (5) (6) (7) (8) (9) (10)
Ll~ND
1 Other LAnd 503 ~ 1925510 $ Ci 1925510 ~ 1925510 $ 1925510
EQUIP1A~NT ON UNIT DEPRECIATION 2 itutoIrol1eyPCC 5))3338 $16392563 $ 9323673 $ 7068890 Various $16392563 ~10391985 $ 6000578 $1068312
BUILDJNGS 3 General Office-~ 522 $ 916255 $ 563016 ~ 353239 1917 Yrs$ 916255 $ 581446 $ 334809 $ 18430 4 Shops Grgs Admin 523 amp524 2733772 1013500 1720272 2320 Yrs 2733772 1087633 1646139 74133 5 Subtotal (Lines 3 amp4) 3650027 ~ 1576516 gt 2073511 igt 3650027 11669079 ~ 1980948) 92563
~ PROPERTY ON GROUP DEPRECIATION Overheaas
6 Engineering 501) 7 Organizqtion 5~6) tt 1563178 ~ 1563178 8 Interest 547) 9 Grlding 504)
10 Righ ts of Vgy 502 117922 117922 11 All Other 505-5h5 15 651 31 7 15 771 31 7 ~---7-=-~-- lr-r-----=~ -x---r---~ 12 Subtotal (Lines 6 to 11) )17332417 $11343350 ~ 5989067 1117 Yramp$17452417 ~11833307 ~ 5619110 ~ 495957
13 Totql(Lines 125 amp 12) ~39300517 822243539 ~17056978 839420517 023894371 015526146 01656832
14 RATE BASE Use ~1657OOO 15 Avcr~ge of ~1705697B qnd )15526146 016292000 16 Nwk in Progre s s 100000 Am)unts sh)wn include lpplic3ble -werheqds fr)ll 17 Haterills amp Supplies 735000 Accnunts 546 amp 541 18 Bond Deposit - City Frqnchisc 411000 cent Investment ~d depreciation reserve assumes all 19 Deposit for PL Insurqnce 150000 retirements for the lines to be cmiddotmvcrted 1--3
20 Use Vqlue - Fully Depreciated CJtches 1)2000 ~re m~de 3S ) f November 1 1954 qnd that the ~ full unnunt middotf r e tirements qre charged to the EJ
21 Tot-l R1te Blse ~17840000 reserve co
10S ANG3LSS TRANSIT LI~S
INVESTWNT DSPRCIATICN R~SsRVS AND EXPSNS~ FOR ~QUIPMLNT ON UNIT PLAN DEPR3CHTION
CASES I AND II APPLICATIONS NO 35601 AND 35728
As of Oct0ber 31 ffi4 As of October 31 1955 Line NoTotal Investment fnvestment Depre No Item of Life Investment Reserve Less Investment Reserve Less Expense
Units Reserve Reserve Rate Year (1) (2) (J) 4) - ---(~ CD) en -- --8)----- -(9j- (10)
For Case I 1 Motor Coach Groups
62006300 66-6900 hOh 12 Yrs$6421159 $4728599 ~1692560 ~ 6421159 $ 500 1011 ~1330lh8 $ 362412 2 5000 6hoo 75 10 II 1486387 77~175 711212 1h86387 92h851 561536 149676 3 Coaches on order 100 10 II 2285400 2285400 2285400 2265J~0 2058860 226540
II
I 5 Automobiles 51 V3r 99485 50916 h8569 99485 66540 329h5 15624 ~ 6 Trucks amp Service Cars 56 II 280584 250572 30012 280584 265813 lh771 15241 I 7 Misc( Fare BoxesMotors) 170193 115191 55002 170193 122271 47922 7080
h Trolley Coaches 110 15 2108h09 908560 1199849 2108h09 1Oh6116 1062293 137556
8 Total of Lines 1 to 7 ~12851617 ~~6829013 ~02260h ~12i351617 ~ 77h3lh2 $5108475 $ 914129
9 PCC Rail Cars 40 25 rsJ~ 1182671 ) 338627 gt 84h04h 1182671 ~ 382211 ~ 800460 $ h3581~
10 Case I - Line 8 + Line 9 $14034288 $7167640 $6866648 ~14034288 $ 8125353 t5908935 $ 957713
For Case II
11 6000 amp 6100 Series MC 150 FD ~ 2092963 $2070463 ~ 22500 $ 2092963 $ 2070463 $ 22500 12 Work orders on 6000s
amp 6100 s 3 Yrs 265312 61860 203452 265312 144007 121305 $ 82147 13 PCC Rail Cars 401717 1182671 362 337__ ~~~ 334 1182671 43473 ___748298 72036
14 Case II - Lines 8 + 11+ 12+ 13 ~16392563 9323673 n068890 $16392563 ttl0391985 ~6ooo578 ~1068312
t-3
125 other PCC Cars are in Group Depreciation Schedule G ~
Note579 motor coaches under Case I and 729 under Case II D
LOS AlJGELES TRANSIT LnlES TABLE 10 ESTIMATE]) RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD E1TDUTG OCTOBER 31 1955 CASE I - UNDER PRESENT OPERATIONS
12 Months Jan-June
Line No Item
Tab1e Ending or May 31 1954 Page Fe fer
(2)
Book Record
(])
1954 Annualized
Book Record
(4)
Case I-A Present
Fares (5 )
Case I-B Applicant l s
Proposed Fares
(6)
1 Vehicle Miles T2 34036066 33569520 32747000 32440000
Revenue 2 3 4 5
Passenger Revenue Unredeemed Tokens Other Revenue Total
T1 P7 P7
$24849150
122402 $25044557
$24517866
183810 $24 701676
$22940000 $25513000 20000
1821 000 182 000 $23147000 $25700000
6 7 8
Operating Expenses Rail Trolley Coach Motor Coach
T3 T3 T3
$ 8493744 1442232 8622956
$ 8575232 1451430 8 n6470
$ 8115900 $ 8047000 1366000 1355400 8144200 8088900
9 10 11 12 13
Sub-Total Depreciation Operating Taxes Wage Increase Total
T7 T6
18563932 2176608 1676358
$22416898
18743132 2185804 1760600
$22689536
17626800 17491300~ 2039000 2039000 1663800 1711700
439800 436500 $21769400 $21678500
14 Operating Income $ 2627659 $ 20J2JJQ $ 1377600 $ 4021500 15 Other Inc amp Inc Deduct 21258 (9328)
16 Net Inc Before IncTaxes 2635217 2002742 1377600 4021500 I 17 Income Taxes (St ampFe~) 1302758 1026568 647500 1 999 000 18 Net Operating Income 1332459 976174 730100 2022 500 i 19 Allowance T4 112216 80752 1541000 1541000 20 Net Income $ 1220243 $ 895422 $576100 $ 1868500
21 Rate Base T7 $17393000 $16727000 $16926000 $16926000 22 Rate of Return 70~ 535 340 1104
Operating Ratio 23 Before Income Taxes 9405 8435 24 After Inc Taxes ampAllow 9751 927)
Not Applicable
Computed by PUC Staff Allowance for interest and amortization of abandoned property (Red ]figure)
- 31 shy
IDS ill~GElES TRANSIT LINES ESTIMATE OF OPERATllIG EX-degENSES JuID TAXES
FOR 12 f10NTHS ENDING OCTOBER 31 1955 CASE II - KOTOR COACH Sl~STITUTION - j~PLrCATION NO 35728
Table or Line Page Hotor Trolley
~To Item Reference Streetcar Coach Coach Total
l 2 3
4
I S
rv 6VJ
I 7 8 9
10 ll 12 13 Ih 15 16
17
13
(ll- -- shy
Vehicle Miles Case I - Present Operation Case II - Proposed Operation
Increase in i1iles
Opere amp I1aint Expense - Case I
Changes in Expense Due to Conversion Way and Structures Substation Operation Rail Crossing Protection Vehicle Maintenance Servicing of Vehicles Tires - Hotor Coach Equipment Operators vJages Fuel Oil or Power 21 amp PD Insurance ~Jorkmen I s Compensation Insurance Training Drivers for Conversion
Total Increase in Expense
Oper amp i1aint Expense - Case II (Line h +
Operating Taxes - Case II
(Red Figure)
(Z)
T2 T2
T3
Line 16)
D)
11887000 6691000
(5196000)
~ 8115900
t (11500) (42200) (55000)
(270900) (76900)
(1232900) (219800)
(liT shy
18314000 23h67000 5153000
amp 314~900
~
355000 h3300 32500
1154300 153000
-C5) (6)
2546000 32747000 2949000 33107000
403000 360000
S 1366000 ~gt 17 626800
If (144500) 1 ~ v$ ltW (42 200 ) - bull (55 000 ) 7HmiddotVj
19200 103300 M~ f~
3000 ( 30600) A N- i
32500 94400 15800 14600 (52206)
(1l1100) ~ [ (1200) Glh
30000 ~i
p (258200)
$17368600 r3
c~ 1786600 cr ill
I- CD
I- i-
TABLE 12
LOS ANGELES TRANSIT LINES ESTIMATED RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD ENDING OCTOBER 11 1955 CASE II - MOTOR COACH SUBSTITUTION - APPLICATION NO 15728
Table Case II-A Case II-B Line Item Refer- Present Proposed
Nos i FSles Faresect~nce
( 1) (2) (3) ( 4)
1 Vehicles Miles T 2 33107000 32817000
2 Operating Revenue T 10 $23147000 $25700000
O~erating E~ense
3 Operating and Maintenance Tll $17368600 $17234900 4 Depreciation T 8 1657000 1657000 5 Operating Taxes Tll 1786000 1837800 6 Wage Increase 434ZQQ 431 lt)00
Total $21246300 $211612007
8 Operating Income $ 1900700 $ 4538800 Other Inc amp Inc Deductions it 119
10 Net Income Before Income Taxes $ 1900700 $ 4538800 11 Income Taxes (State amp Federal) 214 200 2262 400 12 Net Operating Income $ 985800 $ 2275400 13 Allowance T 4 ~ 2090QO ~ 20200Q 14 Net Income $ 776800 $ 2066400
15 Rate Base T 8 $17840000 $17840000 16 Rate of Return 435 1158
012erating Ratio 17 Before Income Taxes 9179 8234 18 After Income Taxes amp Allowance 9664 9196
Not Appli cable
Allowance for interest and amortization related to streetcar abandonment of the past and for abandonmcnts proposed in Application No 35728
-33shy
LOS ANGELES TRANSIT Ln~S ESTH1ATE OF HILES TO i3LJ OERATEJJ FOR THE TlJ7IVE HONTHS-ENDING OCTOBER 31 1 q55
A UNDJilR PRESENT OPERATIONS B WITH HOTOR COACH SlfilSTITUTION AS PROPOSED IN APPLICATION NO 35n8
CASE I - PRESENT OPERlTI03S Present Fares Propose(l Fares
Estimatet Estimated Estimated Hiloago Estimated Est T)imirDl l4i Recluc-Estimatea Miles Miles (a) Decrease In Traffic Roduction Mileage of Traffiction Below Proposed
Item As Shown In Miles of the Decline Duo TrafficPresent FaresBelow TrafCol6 Due to Fares PDC Staff Dacrease9-15-54 to Docline (2) x At PrescntDiminution Col 6 x
________ (3) x (4) (100 - Col 5gt Fares (7) x (3) (100 - ColFJdlibLLJamp~Passengers ~-55 8) (1) (2) (3) (4) (5) (6) (7) (8) (9)
streetcar 12041861 30 43 L29 11587000 39 117 11748000
Trolley Coach 2546000 92573633 25f~ 43 1 075~b 3 0 975 2521000
Motor Coach (b) ]8li-~4 849 20 4 3~ 86 10 18106000 39 78 18163000bull I~
f-- ---J Total (b) 33080343 32739000 32432000
CASE II - OFSRATIONS PROPOSED IN APPLICATION NO 15728 Present Fares Proposed Fares
Item Estimatefl 1JIiles(a) As SnownEstimate~- Miles Present FarosEstimate~ Milos Proposed ___-~___------I=n~PDCStaff Exhibit No Col lOx (100 - Col 5) Faros Col llx (100-CQl~
(1) (10) (11) (12)
Stroetcar 6778211 6691000 6 61300O
Trolley Coach 2981376 2949000 2920000
Motor Coach (b) 236629)) 23459 1000 2276 7000
~Total (b) 33422542 33099000 32809000 ill r trl
(a) Based on th~ l ovel of traffic of Septombor 1954 I)
(b) To the estirl8ted milos shown here should bo a~dod 7500 Charter Miles
t-3
- - - - - - -
LOS kJGELES TRANSIT LINES Table 3 Sheet 1 of 3ESTIMATE OF RAIL OPERiTINGifiPENSES
CASE I - UNDER PRESENT OPERATIONS
Company Estfor 12 Mo~ Records Ending
Acct Jan-May 1954 103155 No I t e m Annualized Present Fares
Car Miles Way and Structures
1-24 ill Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 Superintendence 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conducting Transportation 63 Superintendence 64 Conductor Motormen etc 66 Car Service Emp 67 Miscel1 Car Service Exp 70 Car House Empa
Var other Cond Transp Accounts Total
Traffic 79 Superintendence 80 AdvertiSing
Total General
83 Gen Off - Sal and Exp 84 Gen Off Emp - Sal amp Exp 85 Gen Off a SuppJies amp Exps 88 Pensions
(93 Insurance PL amp PO (93 Insurance Workmens Comp (93 Insurance Other
Var Other General Accounts Total
Total Rail Operating Expense
Cents per Car Mile
12573226
$ 722615
$ 79078 759547 146522
$ 985141
$ 18190 174643 482945
23033 $ 698 811
$ 438900 3257666
104525 76608
351696 57240
$ 4286635
$ 6346 18353
$ 24699
$ 83645 123281
35570 4818S8 765019 46840 13664
287090 $ 1836967
$ 8554874
68004cent
ll887OOO
$ 722600
$ 79100 671200 147900
$ 898200
$) 18200 174600 547200
28900 $ 768900
$ 438900 2890900
104500 72200
351700 59600
$ 3917800
$ 6300 18400
$ 24700
$ 78900 123300 35600
456600 750400 ~ 43100 13700
282tl00 $ 1783700
$ 8115900
6827cent
Co
)
-
(1
I
flI
Car Miles Oper middot Exp Case I-B - Applicants Proposed Fares 11748000 $ 8047000 ~ Expenses Variable with Car Miles Wage rates used herein are those whieh
Ac30amp33 565 cent~ile prevailed immediately prior to 6154 59 460 The cost of the wage increase which 64 2432 tecomes fully effective on 12154 is 70 148 50 of total shown separately in Results of
Total 3605 centmile Operation table ~ See Table 5 for amounts under Proposed Fare
- 18 shy
- - - - - ------
LCB ANGELES TRANSIT LINFS Table 3 ESTIMATE OF TROLLEY COACH OPERATING EXPENSES Sheet 2 of 3
CASE I - UNDER PRESENT OPERATIONS
Acct No I t e m
Coach Miles Way and Structures
1-24 All Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 --superintendenoe 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conduoting Transportation 63 Superintendence 64 Operators Wages 70 Car House Employees
Var Other Condo Transp Accounts Total
Traffic 79 Superintendence 80 Advertising
Total General
83 Gen Off - Sal amp Exp 84 85
Gen Off Emp - Sal amp Exp Gen Off Supplies amp Exps
88 Pensions (93 Insurance PL amp PD (93 Insurance Worlanen s Comp (93 Insurance Other
Var Other General Accounts Total
Total Operating Expense
Cents per Mile
Case I-B - Applicants Proposed Fares
Expenses Variable with Coach Miles Acs 30amp33 477centmile
59 3038 64 2342 70 075 50 of total
Total 3232centjmi1e
~ See Table 5 for Amount Under Proposed Fares
Company Estfor 12 ME Recorda Ending Jan-May 1954 103155 I ~
Annualized Present Fares ~
2629188 2546000
$ 26518 $ 27000
$ 32628 $ 32600 125469 121400
11012 9600 $ 169109 $ 163600
$ 3770 $ 3800 35770 35BOO 75017 86000 1
8417 9000 $ 122974 $ 134600
$ 99161 $ 99200 612513 596300
38273 38300 21802 21500
$ 771749 $ 755300
$ 979 $ 1000 3588 3600
$ 4567 $ 4600
$ 15134 $ 12100 22990 23000 5669 5700
87614 83000 165089 97300 I
8516 8000 ~ 3054 3100
49076 48700 $ 357142 $ 280900 6
$1452059 $1366000
5523cent 5365cent
Coach Miles Oper Exp 2521000 $1355400 -- -0
Wage rates used herein are those which prevailed immedshyiately prior to 6154 The cost of the wage i~crease which becomes fully effective on 12154 is shown separately in Results of Operations table
- 19 shy
LOS ANGELES TRANS1 LINS TABLE 3 ESTIMATE OF MOTOR COAOH OPERATING EXPENSE Sheet 3 of 3
CASE I - UNDER PRESENT OPERATIONS
Company Estimate for Records 12 months
Jan - May Ending Acct 1954 103155 No I t e m Annualized Present Fares ~
Coach Miles 1832~158 18314000 Equipment Maintenance amp Gara~ Expense
4110 Supv - Shop and Gar $ 142788 $ 142800 4140-2 Repairs to Rev E~uipment 1097376 848800 4150 Servicing Rev Equipment 308373 307700 4160 Tires - Rev Equipment 123305 125200 Var Other Maint Accounts 151444 147300
Total $1823286 $1571800 Transportation Expense
4210 Supervision of Transp $ 487284 $ 487300 4220 Drivers I vrages 3767184 37589001= 3) bull
4230 522175 523800 )0
4240 Oil for Revenue Equipment 17256 19500 JOJ
Var Other Trans Exp Accounts 60153 58200 Total $4854052 $4847700
Traffic and Advertising 4470 Advertising $ 21593 $ 21600 Var Other Traffic Accounts 7)329 76500
Total $ 94922 $ 98100 Insurance
4510 Salaries and Expenses $ 18818 $ 18800 4520 Insurance PL amp PD 786322 542OOOp 4541 Insurance Workmens Compo 51458 50100p Var Other Insurance Exp 11357 11700 - shy
Fuel for Revenue Equipment _
J Total $ 867955 $ 622600 Administrative and General
4611-2 Gen Officers - Sal amp Exps $ 90806 $ 73500 4613-6 Gen Off Employees - Sal ampExp 138043 137000 4620 Law Expense 12910 16000 4630 Gen Office Supplies amp Exp 51689 44800 4640 Communication Expense 41143 45500 4652 Employees vlelfare 525737 498200 4655 Purchasing amp Stores 120790 120800 Var All Oth~r Adm amp Gen Exp 70090 53900
Total $1051208 $ 989700 Rents 15000 15000
Total Motor Coach Expense $8706423 $8144900 Cents per Mile 47middot50cent 4447cent
Coach Miles Ouer Exp Case I-B - Applicants Proposed Fares 18171 000 $8088900 -----shy
Expennes Variable with Milos Wage rates used herein are those which Ac 4140 463centmile prevailed immediately prior to 6154
4150 084 50 of total The cost of tho wage increase toJhich beshy4160 068 comes fully effective on 12154 is clnwn 4220 2052 separately in Results of Operation table 4230 286 4240 011
Total 2964centmile cent See Table 5 for Amount Under Proposed Fares 20 shy
TABLE 4
IDS ANGELES TRANSIT LUIES AMORTIZATION AND INTEREST ALLOWANCE
PAVING AND REMOVAL OBLIGATIONS - CASES I AND II APPLICATIONS NOS 35601 AND ~5728
A - Obligations from Abandonments Prior to 1954
Yearly Amortization $132000 Interest 16000
Total $148000
B - Obligations from Abandonment of Portions of IV and Rlt Lines (July 25 1954)
Yearly Amortization $ 4000 Interest 2000
Total $ 6000
C - Obligations from Abandonments as Proposed in Application No 35728 (November 1 154)
Yearly Amortization $ 35000 Interest 2JOOO
Total $ 55000
For Case I - Items A + B $154000
For Case II- Items A + B + C $209000
Includes cost of removal of electrical distribution system ($123700) and of substation equipment ($21600)
- 21 shy
LOS ANGELES TRAl~SIT Lli~S
RJBLIC LIABILITY PROPERTY DAl1AGE AND 1l0RIJftElI i S CCMFEi-TSATION EXPENSE illLATED TO SOUln~EbTT MILES Aim R3W-RLS PAS~lWEFS
CASE I - UNDER PRHSENT OPSHATIONS 1947 - 1950 Inc Jan-May Est FOr
Line Ito m 1951 1952 1953 195412 MosEnd No Total Av per Yr Annualizod 10 31 55
1 Lossos paid (n) $ 3890 $ 972 $ 1082 $ 902 $ 580 $ 262 2 Losses ostimato~ (a) 39 10 52 280 634 881 3 Reinsurance costs (a) 282 71 62 69 ____81 65 4 Total Losses_amp Insurance (a) $ 4211 $ 1053 $ 1196 $ 1251 $ 1295 $ 1208
5 Expenses paid (a) $ 1536 $ 384 $ 353 $ 385 $ 242 $ 170 6 Expenses estimated (a) 7 2 _ __ 11) 61 182 24S 7 Total expenses (a) $ 1543 $ middot 386 ~ 363 $ 446 $ 424 $415 8 Total LossesReiils amp Exp (a) $ 5754 $ 1439 1559 $ 1697 1719 $ 1622
(Lina 4- + 7) I 9 Number of claims filed 59991 14998 11588 11104 10246 9228
N
N 10 Vehiclo miles (millions) 153 4 384 356 351 346 336 I
11 Revenue Passon~crs (millions) 10093 2523 1924 1746 1661 1531
12 Loss Per 11i1 lliilos (4 ~ 10) ~27451 $27451 ~33596 $35~641 $37428 $35952 $35000
13 Loss Por i-Hllion Pass (4 11) $ 4172 $ 4172 ~ 6216 ) 7165 ~ 7797 $ 7890 $ 7500 14 Expensos por claim (7 f 9) h
ltfgt 2572 Y 25middot72 i) 3133 $ 4017 4138 $ 4497 $ 45 15 Claims per million miles (9 10) 391 391 326 316 296 275 280
16 Claims per million pass (9 11) 59 59 60 64 62 60 60
Ul p- CD (I)
(a) Thousand of dollars amp8
t-G o ~ H
J N
TABLE 5 LOS ANGELES TRANSIT LUTES Sheet 2 0 f 2
ESTIMATE OF PUBLIC LIABILITY AND PROPERTY DAMAGE AND WOBKMElJ 1 S COMPENSATION EXPENSES
FOR 12-MONTH PERIOD ENDING OCTOBER 31 1955 UNDER CASE I-A AND CASE I-B - PRESENT OPERATIONS ~lITH PRESENT amp PROPOSED FARES
Line 110
Cost Factors 1 Claims per million revenue passengers bull bull bull 2 raquo raquo vehicle miles bull bull bull 3 Expense per claim bull bull 4 Losses per million revenue passengers
raquo raquo vehicle miles bull bull bull bull 5 bull bull
60 280 45
7500 35000
Estimated Expense For PL and PD and Workmens Compensation Insurance
Case I-A Present Fares
6 Number of rovenue passengers (millions) 1395
7 Number of vehicle miles(millions) 3275
A - Basod on Number of Passengers 8 Losses 9 Expense
10 Total
B - Based 11 Losses 12 Expense 13 Total
$1046200 376700
$1422900
on Number of Vehicle Hiles $1146200
412700 $1558900
14 Average of A and B (PL amp PD and Workmen 6 Compo - $1490900
15 Workmens Compensation Insurance 101~200(a) 16 PL and PD Insurance 1389700
Distribution of Total PL amp PD Percent
17 Rail Operations 541 $ 750400 18 Trolloy Coach Operations 7 97300 19 Motor Coach Operations ~ -542000 20 Total 100 $1389700
Case I-B Proposed Fares
1341 3244
$1005700 362100
$1367800
$1135400 408700
$1544100
$1456000 100200 (b)
1355800
$ 732~100 94900
528800 $1355800
(a) Rail=$43lOO Trolley Coach=$8000 and Motor Coach=$50100
(b) Rail=$42 600_ Trolley Coach=$7 ~ 900 and Hotor Coach=$49 (00 _ --- I
- 23 shy
lA3LE 6
LOS ANGELES TRANSIT LINES ESTIHATE 041 OPERAT1NG TAXES
FOR 12 MONTHS ENDING OCTOBER 31 1955 CASE I - PRESENT OPERATIONS
APPLICATION NO 35601
Book Record Case I-A Case I-B L1ne I t e m 12 Months Present Proposed
No End 5-31~ Fares Fares(~ ) -=-----=-(3)~--=--~r(4~)~-(1)
1 City Franchise Taxes $ 473687 $ 434600 ~ 481900
2 Property Taxes-Ad Valorem 457963 435000 435000
3 Fuel and Oil Taxes 360580 337700 335100
4 Motor Vehicle License Taxes 136984 Ib8 900 168900
5 Transportation License 15600 21~00 (3 B of EHlshy
6 payroll Tuxes 265000 262500
Other raxes 7000 70007
Total ~ip 1 603 800
Net after weight fee credit
-24shy
LOS ANGELES TRANSIT LINES APPLICATION NO35601 APPLICATION NO3728
General
The purpose of this engineering~economic roport is to set forth
the operating results of the Los ~eles Transit Lines for a twelve-month
period ending October 31 1955 under present fares and under fares proposed
in Application No 35601 and under present operations and under the plan of t-middot
motor coach substitution for certain rail lines as set forth in Application
No 35728 The results of operation Jill be shown under thefolloVing
bases
Case I-A Present Operations with Present Fares
Caso I-B Presont Operations with Proposed Fares
Case II-A Proposed Motor Coach Substitution l-li th
Present Fares
Case II-B Proposed Motor Coach Substitution with
Propo sed Fares
i~here Case I is referred to in the text it implies both Case I-A
and Case I-B and where Case II is referred to it implies both Case II-A and
Case II-B
Territory Served
Tho Los Angeles Transit Lines serves an area roughly thirteen miles
in diameter centered around the downtown business district of Los Angeles
For faro collection purposos this is divided into an inner zone approximately
nine miles in diameter surroundod by a ring two miles in ltlidth which is
_ 2 _
separated into seven second zoncs Additional third zone areas arc served
as follows
Eagle Rock and Griffith Park districts in the North
Beverly Hills district in the West
Inglmrood and South Gate districts in tho South
Further to the south two fourth-zone areas are designated as Hawthorno
Zone 4 and Hollydale Zone 4
Historical Aspects of Traffic Trends and Operating Statistics
Chart 1 provides a historical background for traffic trends and
operating statistics of Los Angeles Transit Lines for the period from 1940
to 1953
Present and Proposed Fare Structures
The fares currently charged and those re~uested in Application
Nc 35601 are as follows
Present Fares
I-Zone - 2-Zone 3-Zone J-Zone
Adult l5~ or 20cent or 25~ or )O~ or T Til + 5~ T loi T l5~
School 9~ l2cent l5~
T = Token sold at 7$100
Proposed Fares Set Forth in A~lication NQ 2~60l
Adult 29~ 35~
School 20cent
Sold in books of 40 rides
- J shy
In summary thepropos~dchalges aro - t - ~ ~- shy
(1) Eliminate tokens
(2) Increase single zone fare middot tQ 17 with 6~ increments for each addi tional zone
(3) Increase school single-zono cominUte fara to lO~ with 5cent incroments for each add~ tional zone
Changes in Operation - Case II
In Application No 35728 Los Angeles Transit Lines requests authority
to convert about 40 of its present street car serVice to motor coach service
and at the same time to convert ono line nbw operated by motor coach to trolley
coach Following is a list of the street car iines ~hich the company proposes
toconvort to motor coach
No and Name of Line Amount to be Converted
No 5 - Eagle Rock and Hawthorne Entire Line
No7 - So Broadway and Civic Center n II
No8 - W54th St and No Main st II No9 - W4Bth St-Lincoln Park In part From W end of
Line at Crenshaw Blvd and 48th St to Broadway and 11th St
FlI_ S Vermont and Union Station Entire Line
IIW _ W Washington and Highland Park In part From Broadway and Pa saQena Ave to N end of the line at Y middot)l~Y lv and Avenue 50
The motor coach line to be converted to trolley coach is
No and NRme of Line Amount to be Converted
Entire LineNo 41 - Alvarado Street
Passengers and Passenger Revenuo- Case rand Case middotII
Adult Passengers and Revenue
Because of the method of fare collection the company does not main-
t[in records of passengers carried HowErVer it does maintain a daily record
of cash fares and token fares This revenue informationi s used herein in
conjunction with a traffic check which ltlas m~de to determine the n~ber of
passengers by zones The traffic check was conducted in 1950 in connection
with Application No 32335 and the resulting percentage distribution by zones
of adult passengers is sho1rm in Column 1 of the following tabulation The
column to the right shows the percentage distribution used in this reportwhich
has been adjusted to reflect variation in diminution by zones and in the trea tshy
ment of certain passengers handled to Hollywood Park
Percent of Adult Passengers
As Used in As Used in ARglication )2225 This Rill2ort
l-Zono 674 666 2-Zonc 286 293 3-Zone 37 3~5
4-Zone 03 15
1000 10000
The following tabulation shows the fares in effect from the lattor
pc~rt of 1950 when the present pattern was established to date The first
column shows tho actua l adult I-Zone fare while the second column shows the
computed average adult fare for all zones Average Adult Fere
Period ~ Adult I-Zone Fare All Zones
12-10-50 to 1-23-52 lOp 1182l 1-24-52 to 11-2-52 15~ or 225p 14bull58
11-3-52 to 11-29~53 15~ or 340cent 1554
11-30-53 to Date 15~ or 7$100 1655
This average f are is estimated at 1664~ for the rate year under present fares because of the declining use of tokens
- 5 shy
The trend of total adult pa~s~ngers is shown in Chart 2 The
estimated adult revenue passengers for the twelve-month period ending ~
October 311955 under prosent fares are135363000 andare shown in the
chart at m1dpqint of the rate year Token use under present fares was
estimated to be 35 in each of the four zones The diminution or loss of
passengers due to increased fares was estimated to be 25 of the percentage
incrbase in the fare involved The estimated 135363000 adult passengers
developed in Chart 2 are also shown in Table 1 Coi1lffiIl 5 Line 13 and flrEl
distributed to the various zones on the basis of the percentages shown in
the above tabulation
Hollywood Park passengers are esti~ated to be 200000 annually
and the fare for these passengers is 10~ Although these Hollylood Park
passeng~rs may originate in the dOlntown area they become in essence new
passengers when they board the Hollywood Park Line since they have no transshy
fer privileges Adult passengers and revenue (shown in detail in Table 1)
for the twelve months ending October 31 1955 are summarized as follows
Passengers Revenue
Presont Fares 135563000 $22513000
Applicants Proposed Fares 130039000 25037000
Following is an estimate of school passengers and revenue and
U s Postal employee passengers and revenue
School Passengers Revenue
Case I-A Present Fares 3358000 $319000
Case I-B Proposed Fares 3245000 351000
6 shy
U S Post Office
Pas senger s Revenue
Case I-A Present Fares 616000 $ middot88000
Caso r~B Proposed Fares 616000 105000
Token Adjustment
It is estimated that based upon tho present experience of applishy
cant three tokens out of 1000 tokens sold or 0356middot will never be redeemed
This amount will be considered as an added revenue and is estimated at
$20000 under present fares
Other Revenue
From such sources as rent interest on franchise bonds charter
advertising and miscellaneous there is an estimat~d rovenue of $187000
under all cases
Revenue under Case II - Proposed Motor Coach Substitution (Application No 35728)
UnderCas8s II-A and II-B proposed motor coach substitution the
estimated rovenue will be the same as in Cases I-A and I-B respectively
Mileage
The estimated mileage to be operated during the rate year is
shOllTn in Table 2 This estimated mileage is based upon a study by
Mr William F Hibbard Associate Transportation Engineer of the
Commissions staff and is shown as a separate exhibit in this matter
- 7 shy
Operating and Maintenance Expenses -- Case I
Estimates of operating and maintenance expenses are shown in
Table 3
General
Unless otherwise stated in the following paragraphs operating
and maintenance expenses are based on experience and conditions currently
prevailing In estimating operating and maintenance expenses it is
estimated that 100 new 48-passenger diesel coaches will start operating
at the beginning of the rate year replacing older coaches now in
operation These new coaches will slightly increase the fleet cost of
tires and substantially decrease the cost of Account No 4140 - Maintenance
Expense
Wages All wages are included in the detailed estimates
shown in Table 3 at the level prevailing immediately
prior to ~ 1 1954
Wage Increase The wage increase which becomes fully
effective on December 1 1954 is sh~m separately
on Line 12 in Table 10 Results of Operation
Fuel The cost of fuel is based upon the current level
of costs including an ircrease in the Sales Tax
on diesel of 05 effective July 1 1954 for
the City of Los Angeles
Tires The unit cost of tires is based on that prevailing
under contract for the period July 1 to Decernber-31
1954 The estimate of the cost of tires reflects the
- 8 shy
~ - - -- -- - - shy
estimated higher unit middot tire cost per mile for the
loa ne coaches which are to be put in operation at
the beginning of the rate year
Power The cost of power reflects the increase recently
granted to Southern California Edison Company by
this Commission
Public Liability and Property Damage Insurance and Workmens Compensation Insurance Coverage for these types
of insurance is carried with Transit Casualty
Company the stock of which is owned by the following
affiliated or subsidiary companies
Percent of Common Stock Owned
National City Lines 30 Los Angeles Transit Lines 24 St Louis Public Service Company 46
Total middot 100
From 1953 Annual Report to the Insurance Department State of California The present premium rate charged by Transit Casualty Company to applicant is 7 of passenger revenue In this report as in pre~ous reports the estimate of the Commissions staff has been predicated on unit costs related to the number of passengers carried and tho vehicle miles operated The estimate for Case I is shown in Table 5
Operating Expenses - Case II
Case II - Operating expenses are shown in detail in Table 11
and are based on operations of Casc I adjusted to reflect the estimated
decrease in rail expenses due to the abandOnroent of lItrEiet car operations
as proposed in Application No 35728 the increase in motor coach expenses
re~uired by the substitution of motor coach service for street car service
and the increase in trolley coach expense due to the conversion of Line
No 41 from motor coach operation to trolley coach operation with a
corresponding decrease in motor coach expenses
- 9 shy
Operating Taxes - Case I
Franchise Taxes cmd Business Licenses
Under Case I Present Operationafrnnchise taxes to the City of
Los Angeles were determined by applying current tax rates to estimated
revenues
Ad Vnlore~ Taxes
The estimate for ad valorem taxes under Case I is based on an
assessinent of $6496250 and a tax rate of $67402
Fuel Taxes
Fuel taxes are based on the following per gallon rntes of Federal
and State Taxes
illA Cents ner Ga11Qn Effectiye Dates
Diesel Federal 11-1-54 to 3-31-55 12i ~ 4-1-55 to 10-31-55
State 7 11-1-54 to 6-30-55 ~ 2 ~ 7-1-55 to 10-31-55
Gasoline Federal 2 ~1-1-54 to 3-31-55 11
2 ~ 4-1-55 to 10-31-55
State 6 ~ 11-1-54 to 6-30-55 5i cent 7-1-55 to 10-31-55
Motor Vehicle Licenses
The estinate for motor vehic10 licenses is based on the registrashy
tion weight and vehicle license fees Which will be in effect during 1955
under equipmontrequiremonts as sot forth in the report by Public Utilities
Commission Associate Engineer Wil1in~ F Hibbard
- 10 shy
Trapsportati CD Ii CADse Tax
This license tax is assessed by the Board cf Equalization and
represents 3~ of the gross revenue derived from operations in non-incorporated
areas by motor and trolley coaches The estimate is based on
curront tax rates applied to estimated revenues
Pavroll Taxes
Tho ratos in effect aro 2 for Social s~curity taxos and 03 for
Federal Unemployment Insurance Paymonts to tho State Unemployment funds
will remain at zero as a sufficient accumulation of funds is presently
on hand It is estimated that 94 of applicants total payroll will be
subject to Social Security Tax undor the increased coverago offective
January 1 1955 and that 100 of the employees are subject to FUI taxes
at $3000 per year
Other Taxes
Other taxos include operatorsl licenses Foderal transportation
ta~ manufacturers excise taxes and other miscellnneous taxes The
estimate is based on actwd experience for the yeor ending May 31 1954
Income Taxes
State Corpor8tion Franchise Taxes have been computed at the
current rate of 4 Federal Income Taxes have been computed on tho basis
of a change in rate effective April 1 1955 On this basis the normal
tax 0 f 30 was used for five months of the rata year and 25 for soven
months of the rate year Tho surtax of 22 remains constant throughout
the year In calculating income taxes in both Cnse I and CasarI an
interest credit of $100300 was used
- 11 shy
Rate Base and Depreciation Expense
In General
In accnrdance wi th current Cornmi ssion practice of treating all
property en a remaining life basis the Commission Staff has made an
analysis of Applicont1s property As 0 rosult as of January 1 1954
1 Motor coaches of the series 6200 6300 6600 6700 6800
and 6900 (404 coaches) were put on a total life basis of
12 years This is considered reasonable in view of the
attained age and the condition of the fleet
2 The annual accrual of the Genoral Office Building (Acct 522)
was adjusted to reflect a totel life of 50 years
3 Buildings in Accounts 523 and 524 were assigned a remaining
life of 24 years with depreciation reserve adjusted to reflect
age-life condition
Under both Cpses I and II 100 nel motor coaches have been included
in the rate base as of November 1 1954 tho beginning of the rate ye~r
Other Lpnd (Acct bull 503) and Rights of Way (Acct 502) hewe been
adjusted to reflect estimated original cost
Under Cese I
150 motor coaches of the 6000 and 6100 series (including current
work orders for rebuilding) have boen deleted due to the inclusion of the
100 new coaches as well as tc conform to the equipment roquirements set forth in
Staff Witness Hibbards Exhibit ith 10 f ~r spares
All property on group plan depreciation reflects the current
4 rate of accrual with nermal additions and retiroMents tken into considerashy
tion
The 40 P C C crrs on uni t plan depreCiation wore extended as
of Innuary 1 1954 to a total life of 25 years
12 shy
Under Case II
As evidenced by correspondenco betoJeen the Commission and
Applicant and the request for changes in accounting practices as outlined
in a letter from the Applicant to the Commission under date of April 291954
it is assumed that applicant intends to completely convert to motor coach
operation by the end of 1965 The Rate Base under Case II assumes that all
property relnted to the rail and trolley coach oper2tion ltlill be fully
depreciated by that time This would include all rel~ted items of property
hitherto considered non-dopreciable those rel~ted ~o the present proposed
conversion havo been charged to the group plan depreciation reserve as of
November I 1954 those remaining 2xe depreciated over ~ 12 year period
boginning January 1 1954
150 coaches of the 6000 and 6100 series have been included in order
to satisfy oquipment requirements as outlined by Staff litness Hibbards 1
Exhibit No The work orders for rebuilding 83 of those coachos have
been put on a 3 year lifo (Soc Chart 5)
In conjunction wi th the rate base presentAtion there are shown in
Chart ) pictures and data of the streetcars and trolley coach equipment as
of September 1 1954 Camp~rt 4 shows ~ictures and data of motor coach equipshy
mont as of September I 1954
Amortization and Interest Allowance
Amortization and Interest allowance f or abandcnment oblig~tionsunder
Cases I and II is sho~m in Table 4 The estimates ccntained therein refloct
an income tax credit on the total amount of the obligations The estimate
under Case I is fer obligations incurred prior to 1954 and oblig~tionsconcerned
nV ttwith changos on tho ruld tTRtl lines made effective JUly 25 1954 Under
- 13 shy
C~se II is added the estin~ted obligation in connecticn with the abandonment
nsprop0sed in Application No 35728
Results of Operatirn
Ou-so I Relbvant infr-rr1pticn sh0vm in the f0regcing text ancl
in the tables is summarized in Table 10 - Estimated
Results of Operation - Case I and from this informashy
tion a rate of return and operating ratios are
calculated under Present and Proposed Fares
Case II Using the basic inf0rmation as used in Table 10 in
c0 njunction with the estimate of operating expenses
for Caso II as shown in Table 11 the rates of
return and operating ratins under Case II are developed
in Table 12 - Estimated Results of Operation - Case II
- 14 shy
LO S ANGELES TRANSIT LINES
TREN 0 OF WEEKLY REVENUE- PASS ENGER5 (E)(CLU SIVE OF POSTAL EMPLOYEES AND RIDERS ON SCHOOL FARES)
FEBRUARY 1952 TOJULY 1954 AND
ESTIMATE FOR 12 MONTHS ENDING OCT 31 1955
~ 3middot5 W w ~
a w 0
_ I cJ)
a 30 uJ 19 Z UJ cJ) cJ)
laquo 0
IL 0 25
([)
z 0 J J
~
bull ~ I
l T
-
- -
ltI-N
- 2
- wr-
u
- 2
--
w
- u
A I
1 ( A A I
j
~ J r 1f
I a V J 1 fv V V ~J
V 1IV I 1 II I
I I Jr 0
~
l) - 0 (c
rlt1
gt bull r gt 0 10 z I z ~
I I I w iw
I
I I EST I~ATE FOR 12 foONTHS ENDING OCTOBER 31 1955 w I UNDER PRpoundSENT FARES-
I w
u A - PASSENGERS PER WEEK bullbullbullbullbullbullbullbullbullbullbullbull 2 596 000
u B - PASSENGERS PER yEAR bullbullbullbullbullbullbullbullbullbull 135 363 000
- Z Ii
w I
w I
lt I
u u i
it i--0 w
~ - -lt 0-H gt- =-1--1 a 0
-Y
VI
I
I )
T ~20
JAN f EBMAR APRoMAY J UN JUL AUG SEPOCTNOV DEC JANFEB MARAP R MAY JUNJULAUG SE P OCT NOVmCJANfEB MARAPRMAY JUN JUL AUG S EP OCTNOV DE C JAN FEB MAR APR IoiIAY JU N gt- c-+shy
rv1952 953 954 1955 Wl
LOS ANGELES TRANSIT LINES ESTIMATE OF REVEruE PASSENGERS lID PASSENGER REVENUE
FOR 12 MONTHS ENDInG OCTOBER 31 1955 CASE I AND CASE II APPLICATION NO 15601 AND NO 35728
Present Fares Applicants Proposed Fares Est
Percent of Dlmin- PassenshyLlne of Total Fare Zone Passengera Revenue Fare utlon cera Revenue -=-----Ho-- Item Orldnalt Adjusted (Cents) Paus i cent (Cents) ~ cent cent
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
Adul t Passengers
lOne-Zone 15 65 58599 $ 8790 17 333 56648 $ 9630 2 1427 35 31553 4507 17 475 )0054 5109 3 666 666 1475 100 90152 $13297 86702 $14739
4 Two-Zone 20 65 25780 $ 5156 23 3middot75 24813 $ 5707 5 1927 ~ 13881 2677 ~ 481 13212 30)9 6 293 293 19751 100 39661 $ 783) 38026 $ 8746
7 Three-Zone 25 65 3476 $ 869 29 400 3337 $ 968 a-- 8 2427 22 1871 454 29 485 1 180 516 I 9 38 395 2475 100 5)47 $ 1323 511 $ 1484
10 Four-~one )0 65 1)2 $ 39 35 417 126 $ 44shy11 2927 35 71 21 35 488 68 24 12 ~ ----l5 29 75f 100 20) $ 60 - 194 $ 68 13 Sub-Total 1000 1000 ~ 135363 $22513 1300)9 $25037 14 Holly Park 10 200 $ 20 10 200 $ 20 15 Total Adult 13556) $225)) 130239 $25057
16 School 9 2797 $ 252 10 278 2719 $ 272 17 School 12 561 67 15 625 526 79 18 Total School )358 $ )19 )245 $ 351 19 Post Office 1427 616 $ B8 17 616 $ 105 20 Grand Total 139537 $22940 1)4100 $25513
cent (000) Omi tted ~ 1F Weighted Average Fare ~ If See Chart 2 + + As deter~ined by traffic checks and used in previous Staff reports
CHART 3
rr LOS AtJGELES
TRANSIT LINES
STREET CAR AN 0 TROLLEY COAe H
EQUIPMENT AS OF
H4 OR K4 OPEN END WOODEN SEATS H3 CLOSED ENDLEATHER S EATS SEPTEMB E R f 1954
JIshy
OLDER T YPE OF PCC CAR NE WER TYPE OF PCC CAR
8000 SERIES TROLLEY COACH 9000 SERIES TROLLEY COACH 9100 S ERI ES TROLLEY COACH
STREET CARS TROLLEY COACHES
ALL H3 H4 K4 PCC OTHER TOTAL 8000 9000
SEATS 48 48 48 12 5-61 SEATS VARIOU 44 4540-28 SEATS
EQU IPME NT ASSIGNMENTS UNDER PRESENT CoMPANY BASIS EFFECTIVE SEPTEMBER 12
9100
46 TOTAL
SCHEDULED SPARES
TOTAL ASSIGNED UNASSIGNED
TOTAL OWNED
SCHEDULED
SPARES
TOTAL ASSIGNED UNASSIGNED
TOTAL OWNE D
354 22 57 5
411 2 37 101 13
60 165 37 512 40 EQUIP MENT RE QUIREMENTS PRESENT SERVICE FOR RATE YEAR)
354 36
390 122 512
34 6
40 30
81 16
81 9
90 20
110 EQUIPMENT REQUIREMENTS WITH SERVICE AS P ROPOSED IN
ApPLICATIO N 28 (FOR RATE YEAR
SCHEDULED 20431 23 150 93 4 2 21SPARES 1015
TOTAL ASSIGNED 165 22525 10335 UNASSIGNED - 7
TOTAL RETAINED 225 11025 16535 To BE RETIRED 0190 2 7 37 TOTAL Now OWNED 60 110512 215 165 3735
-lE- ESTI MA TED BY P U C STAFF E
2 r
C
-
6600 SER IE S 6700 AND 6900 SER IE S 6800 SER I ES
L I NE 6200 No TE~ 5000 6000 yf 6 100 yf 6300 6400 6600
MACK G M e G M e G M e G MC G M C I i~IA K( amp UODEl NUMBER C-45 -CT TD-4502 rn -4505 TO- 4506 TDH-5103 TOH shy 36 1 2 YE AR BUilT l~ 1940 1941 1945 1951 1947 3 DATE I N SERV I CE 7 -40 1-42 7 - 45 7 - 51 7 -47 4 NUMBER O F CoACHES 50 55 95 200 25 57 5 PU RCHAS ED NEW OR US ED N N
6 S EATI NG CAPAC IT Y 45 45 45 51 36 45 40
~ LE NG TH - OUT S I DE 3~ -0 3~ - 0 37 -0 3~ -6 30 - 6 3~ - 0 3~ -0 WI DTH - OU T S IDE -Oil _-ttl 8 -0 -611 8 - 2 _OM I - 0
9 HE I CHT - OU TS I DE 9 -6 9 shy 5t 9 -6 9 t 4t ll 9 - 2 9 0 9 -6 10 A I SL( HEADROOM 76 77 78 78 76shy 8 76
11 A ISLE WI DTH 19 2 1 26 22 22 20 12 TY PE O f DR I V( HYD HYD HYD HYO HYD HYD
13 BRA KE HORSE POWER amp FUE L 165io) 165( 0) 165(0) 110(0) 165(0) 165(0) 14 Bo DY f RAME MA TE R I AL AL AL AL AL AL NOT G I VE N 15 Bo DY PANEL ~1ATE R I AL AL AL AL AL AL NO T GI VEN
16 ROO F MATER I AL AL AL amp ST AL AL amp ST AL amp ST NO T G I VEN
~ ~ - AT DCC CMBER 3 1 1953shy14 26 15298AV ER AG E INVE ST PER CoACH $ ~ 21962 $ 13 992 17 60 14 209
19 INVESHIENT 1 354 9~ 3 059 506 549 044 7 97 5~ 2 lt164 650 99 466 10 000 509 20 RE SE RV E 1340 6 2 462 923 135951 503 6 1369 1 02 90 896 7 147 497
21 REM AIN ING VALUE (I NCL SALV) 14 250 596 583 413 093 293 869 1 095 548 8 570 2853 012 22 REMA I N I NG LIF E lOYR BAS I S 22 MO 90 MO 43 MO 52 MO 9 MO
23 REMAIN I NG L IFE 12YR BAS I 46 MO 90 MO 67 MO 76 MO 33 MO
yf THC COS T OF REBU IL DING 102 CoACHES OF THC 6000 AND 6 100 SE RIE S NOT I NCLUDE D HEREI N (SCE NEXT PACE)
1941 AN D 1942 MA T ER I AL S WE RE SuBJ ECT TO PR I OR I T ( S AND THEREFOR E STEEL WAS USE D IN PLACE OF
ALUMI NUM FO R BO DY FR AMES PAN EL S AND ROO FS I N SO ME COACHE S O F TH E TD- 4505 SERI ES
G - GASOl I NC D - D I CSE L AL - ALUM I NU M ST - Srr CL HYD - HYDRAUL I C
lt~i
~~4
CHART 4
LOS ANGELES TRANSIT LINES
MOTOR COACH EQUIPMENT
AS OF
SEPTEMB ER 1954IS_T 6000 SER I ES
6200 AND 6300 SER I ES
6
5 CHART
1~A~PLE OF THE DAMAGE TO BODY PANE LS M D RI VET ED JOINTS
2 - COACH WITH ALL BODY PANE LS Il l NDO V FR M1ES M~) SOIIE BO DY BRAC IN G REMOVED
l
LOS ANGELES TRANSIT LINES
PROGRAM OF
REBUILDING MOTOR COACHES
OF THE
6000 AND 6100 SERlES
j - PAR TI AL Re STO RA TI ON SODY PA NE LS Ix I I I )SI I ELD FRA Il E REPLA CED AFT ER kt C~ D I T I ON 116
I+ - AL L BO DY PANE LS AND S I DE W I~ DO J FRAhi ES RE shyPLACED AND ~ ESTO~ED
5 -INT ER IOR SHOW IN G CO MPLET E RE MOVAL OF SEATS AND OTHE R AC COUTERM ENTS REPLACED OR RECOND ITIO NED
6 -COMP LETE D I NTER l OR - t EIJ FLOO R
COV ER IN G WIT H S EAT CUSH IONS ETC
7 - COMP LET ED EXTER l OR COACH REPAI NTED AND READY FOR SERV I CE
I N 195 1 Los AN GELES T RANS IT LINES I NAUGURA TED A PROGRAM OF REBU IL D I NG GMC CoACHES OF THE
6 0 00 (BU ILT IN 1940) AND 61 00 ( BU ILT IN 1941) SER IE S A s OF JU LY 1954 62 COACH ES HAD BEE N
REBUILT WITH 40 ST ILL ON WORK ORDERS BUT IN PROCeSS THE CURRENT EST IM AT ED CO ST OF THIS
P ROGRMil I S AN AV ERAGE OF ~3500 PER COACH THE P U C S TAF F EST IMA TES THE LIF E OF TH ES E
COACH ES TO BE AN ADDIT IO NAL THR EE YEAR S FRO M DATE OF COMP LETI ON COS TS OF REB UILDING AR E
SHOWN I N THE RATE BAS E RE LATIV E TO THE APPROP RI ATE WORK ORDER AN D THEREFORE ARE NOT INCi UDEu
IN THE I NV ESH IENT FOR 60)0 AND 6100 S ERI ES COACH ES SHOWN ON CHAR T No 4
LOS ANGELES TRANSIT LINES SSTIMATED RATE BASE AND DEPRECHTION EXPENSE
12 I~ONTHS ENDING OCTOBSR 31 1955 CISE I - VnTH PRY-SENT METHOD OF SERTICE - APPLICATION NO 35601
Gum October 31 1954 As of October 31 1955
Line
No Item (1)
Iccnunt Number Invcstment
(2)
(3) Reserve
(4)
Inve stmen t Less
Reserve (5)
Remaining
Life (6)
In
Inve s tIDen t Less
vestment Reserve Reserve (7) (8) (9)
Depreciation Expense RAte YeAr
(10) LAND
1 2
Rights of VVAY Other Lmd
502 503
S 426974 1931112
$ 426974 1931112
$ middot 426974 1931112
$ 426974 $ 1931 112
EQUIP~NT ONl~ITDEPRECI~TION
3 Auto Tr011ey pcc53033Jf~034288 $ 7167640 $ 6866648 V3rious $14034288 $ 8125353 $ 5908935 $ 957713
PROPERTY ON GROUP DEPRECIATIJN OverheAQs
4 Engineering 501 $ 44651 $ 44651 OrgAnizAtiorfshy 546 601749 601749~ 5
6 Interest 547 middot 916884 916884 7 Gnding 504 1117084 1118084 8 All Other 505-545 27021634 4 Base 27141634 _____ _________ 9 Suttotal
(Lines 4 to 8) $29702002 $22441215 ~ 7260787 $29823002 ~23516286 $ 6306716 $1081071_
10 Tr)W(Lines 123 amp 9) ~46094376 $29608855 ~16485521 $46215376 $]1641639 $14573737 $2038784
11 RATE BASE Use - $2039000 12 Avenge 0f $16485521amp ~1+573 737 $15530000 13 Work in Progress 100000 14 M1terials amp Supplies 735000 15 Bond Deposit - City Fnnchise 411000 16 Deposit for PL Insurance 150000
17 Totil RAte BAse $16926000 8 t ~
-It- rhjor PArt of Acct 546 is Supervisinn --J
-----
LOS ANGELES TRI-NSIT LINES ESTThiIiTED Ri1TE BASE AND DEPRECllTION EXPENSE
12 NiONTHS ENDING OCTOBER 31 1955 CIlSE II - SSUMING MOTOR COACH SUBSTITUTION ON CERTHN RAIL LINES AS PROPOSED m iiPPLICilTION NO 35728
---- --------------- As f Oct)ber 31 195amp As of Oct0ber 31 1955 Inve sUn8nt Investment IBpreciaticn
Line Account Le ss REffiainin~ Less ExpensE No Item Number Inve-stmcnt ReS8riTe Reserve Life Investment Reserve ~ Reserve Rate Yeqr
(T) T2) 0) (Ii) (5) (6) (7) (8) (9) (10)
Ll~ND
1 Other LAnd 503 ~ 1925510 $ Ci 1925510 ~ 1925510 $ 1925510
EQUIP1A~NT ON UNIT DEPRECIATION 2 itutoIrol1eyPCC 5))3338 $16392563 $ 9323673 $ 7068890 Various $16392563 ~10391985 $ 6000578 $1068312
BUILDJNGS 3 General Office-~ 522 $ 916255 $ 563016 ~ 353239 1917 Yrs$ 916255 $ 581446 $ 334809 $ 18430 4 Shops Grgs Admin 523 amp524 2733772 1013500 1720272 2320 Yrs 2733772 1087633 1646139 74133 5 Subtotal (Lines 3 amp4) 3650027 ~ 1576516 gt 2073511 igt 3650027 11669079 ~ 1980948) 92563
~ PROPERTY ON GROUP DEPRECIATION Overheaas
6 Engineering 501) 7 Organizqtion 5~6) tt 1563178 ~ 1563178 8 Interest 547) 9 Grlding 504)
10 Righ ts of Vgy 502 117922 117922 11 All Other 505-5h5 15 651 31 7 15 771 31 7 ~---7-=-~-- lr-r-----=~ -x---r---~ 12 Subtotal (Lines 6 to 11) )17332417 $11343350 ~ 5989067 1117 Yramp$17452417 ~11833307 ~ 5619110 ~ 495957
13 Totql(Lines 125 amp 12) ~39300517 822243539 ~17056978 839420517 023894371 015526146 01656832
14 RATE BASE Use ~1657OOO 15 Avcr~ge of ~1705697B qnd )15526146 016292000 16 Nwk in Progre s s 100000 Am)unts sh)wn include lpplic3ble -werheqds fr)ll 17 Haterills amp Supplies 735000 Accnunts 546 amp 541 18 Bond Deposit - City Frqnchisc 411000 cent Investment ~d depreciation reserve assumes all 19 Deposit for PL Insurqnce 150000 retirements for the lines to be cmiddotmvcrted 1--3
20 Use Vqlue - Fully Depreciated CJtches 1)2000 ~re m~de 3S ) f November 1 1954 qnd that the ~ full unnunt middotf r e tirements qre charged to the EJ
21 Tot-l R1te Blse ~17840000 reserve co
10S ANG3LSS TRANSIT LI~S
INVESTWNT DSPRCIATICN R~SsRVS AND EXPSNS~ FOR ~QUIPMLNT ON UNIT PLAN DEPR3CHTION
CASES I AND II APPLICATIONS NO 35601 AND 35728
As of Oct0ber 31 ffi4 As of October 31 1955 Line NoTotal Investment fnvestment Depre No Item of Life Investment Reserve Less Investment Reserve Less Expense
Units Reserve Reserve Rate Year (1) (2) (J) 4) - ---(~ CD) en -- --8)----- -(9j- (10)
For Case I 1 Motor Coach Groups
62006300 66-6900 hOh 12 Yrs$6421159 $4728599 ~1692560 ~ 6421159 $ 500 1011 ~1330lh8 $ 362412 2 5000 6hoo 75 10 II 1486387 77~175 711212 1h86387 92h851 561536 149676 3 Coaches on order 100 10 II 2285400 2285400 2285400 2265J~0 2058860 226540
II
I 5 Automobiles 51 V3r 99485 50916 h8569 99485 66540 329h5 15624 ~ 6 Trucks amp Service Cars 56 II 280584 250572 30012 280584 265813 lh771 15241 I 7 Misc( Fare BoxesMotors) 170193 115191 55002 170193 122271 47922 7080
h Trolley Coaches 110 15 2108h09 908560 1199849 2108h09 1Oh6116 1062293 137556
8 Total of Lines 1 to 7 ~12851617 ~~6829013 ~02260h ~12i351617 ~ 77h3lh2 $5108475 $ 914129
9 PCC Rail Cars 40 25 rsJ~ 1182671 ) 338627 gt 84h04h 1182671 ~ 382211 ~ 800460 $ h3581~
10 Case I - Line 8 + Line 9 $14034288 $7167640 $6866648 ~14034288 $ 8125353 t5908935 $ 957713
For Case II
11 6000 amp 6100 Series MC 150 FD ~ 2092963 $2070463 ~ 22500 $ 2092963 $ 2070463 $ 22500 12 Work orders on 6000s
amp 6100 s 3 Yrs 265312 61860 203452 265312 144007 121305 $ 82147 13 PCC Rail Cars 401717 1182671 362 337__ ~~~ 334 1182671 43473 ___748298 72036
14 Case II - Lines 8 + 11+ 12+ 13 ~16392563 9323673 n068890 $16392563 ttl0391985 ~6ooo578 ~1068312
t-3
125 other PCC Cars are in Group Depreciation Schedule G ~
Note579 motor coaches under Case I and 729 under Case II D
LOS AlJGELES TRANSIT LnlES TABLE 10 ESTIMATE]) RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD E1TDUTG OCTOBER 31 1955 CASE I - UNDER PRESENT OPERATIONS
12 Months Jan-June
Line No Item
Tab1e Ending or May 31 1954 Page Fe fer
(2)
Book Record
(])
1954 Annualized
Book Record
(4)
Case I-A Present
Fares (5 )
Case I-B Applicant l s
Proposed Fares
(6)
1 Vehicle Miles T2 34036066 33569520 32747000 32440000
Revenue 2 3 4 5
Passenger Revenue Unredeemed Tokens Other Revenue Total
T1 P7 P7
$24849150
122402 $25044557
$24517866
183810 $24 701676
$22940000 $25513000 20000
1821 000 182 000 $23147000 $25700000
6 7 8
Operating Expenses Rail Trolley Coach Motor Coach
T3 T3 T3
$ 8493744 1442232 8622956
$ 8575232 1451430 8 n6470
$ 8115900 $ 8047000 1366000 1355400 8144200 8088900
9 10 11 12 13
Sub-Total Depreciation Operating Taxes Wage Increase Total
T7 T6
18563932 2176608 1676358
$22416898
18743132 2185804 1760600
$22689536
17626800 17491300~ 2039000 2039000 1663800 1711700
439800 436500 $21769400 $21678500
14 Operating Income $ 2627659 $ 20J2JJQ $ 1377600 $ 4021500 15 Other Inc amp Inc Deduct 21258 (9328)
16 Net Inc Before IncTaxes 2635217 2002742 1377600 4021500 I 17 Income Taxes (St ampFe~) 1302758 1026568 647500 1 999 000 18 Net Operating Income 1332459 976174 730100 2022 500 i 19 Allowance T4 112216 80752 1541000 1541000 20 Net Income $ 1220243 $ 895422 $576100 $ 1868500
21 Rate Base T7 $17393000 $16727000 $16926000 $16926000 22 Rate of Return 70~ 535 340 1104
Operating Ratio 23 Before Income Taxes 9405 8435 24 After Inc Taxes ampAllow 9751 927)
Not Applicable
Computed by PUC Staff Allowance for interest and amortization of abandoned property (Red ]figure)
- 31 shy
IDS ill~GElES TRANSIT LINES ESTIMATE OF OPERATllIG EX-degENSES JuID TAXES
FOR 12 f10NTHS ENDING OCTOBER 31 1955 CASE II - KOTOR COACH Sl~STITUTION - j~PLrCATION NO 35728
Table or Line Page Hotor Trolley
~To Item Reference Streetcar Coach Coach Total
l 2 3
4
I S
rv 6VJ
I 7 8 9
10 ll 12 13 Ih 15 16
17
13
(ll- -- shy
Vehicle Miles Case I - Present Operation Case II - Proposed Operation
Increase in i1iles
Opere amp I1aint Expense - Case I
Changes in Expense Due to Conversion Way and Structures Substation Operation Rail Crossing Protection Vehicle Maintenance Servicing of Vehicles Tires - Hotor Coach Equipment Operators vJages Fuel Oil or Power 21 amp PD Insurance ~Jorkmen I s Compensation Insurance Training Drivers for Conversion
Total Increase in Expense
Oper amp i1aint Expense - Case II (Line h +
Operating Taxes - Case II
(Red Figure)
(Z)
T2 T2
T3
Line 16)
D)
11887000 6691000
(5196000)
~ 8115900
t (11500) (42200) (55000)
(270900) (76900)
(1232900) (219800)
(liT shy
18314000 23h67000 5153000
amp 314~900
~
355000 h3300 32500
1154300 153000
-C5) (6)
2546000 32747000 2949000 33107000
403000 360000
S 1366000 ~gt 17 626800
If (144500) 1 ~ v$ ltW (42 200 ) - bull (55 000 ) 7HmiddotVj
19200 103300 M~ f~
3000 ( 30600) A N- i
32500 94400 15800 14600 (52206)
(1l1100) ~ [ (1200) Glh
30000 ~i
p (258200)
$17368600 r3
c~ 1786600 cr ill
I- CD
I- i-
TABLE 12
LOS ANGELES TRANSIT LINES ESTIMATED RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD ENDING OCTOBER 11 1955 CASE II - MOTOR COACH SUBSTITUTION - APPLICATION NO 15728
Table Case II-A Case II-B Line Item Refer- Present Proposed
Nos i FSles Faresect~nce
( 1) (2) (3) ( 4)
1 Vehicles Miles T 2 33107000 32817000
2 Operating Revenue T 10 $23147000 $25700000
O~erating E~ense
3 Operating and Maintenance Tll $17368600 $17234900 4 Depreciation T 8 1657000 1657000 5 Operating Taxes Tll 1786000 1837800 6 Wage Increase 434ZQQ 431 lt)00
Total $21246300 $211612007
8 Operating Income $ 1900700 $ 4538800 Other Inc amp Inc Deductions it 119
10 Net Income Before Income Taxes $ 1900700 $ 4538800 11 Income Taxes (State amp Federal) 214 200 2262 400 12 Net Operating Income $ 985800 $ 2275400 13 Allowance T 4 ~ 2090QO ~ 20200Q 14 Net Income $ 776800 $ 2066400
15 Rate Base T 8 $17840000 $17840000 16 Rate of Return 435 1158
012erating Ratio 17 Before Income Taxes 9179 8234 18 After Income Taxes amp Allowance 9664 9196
Not Appli cable
Allowance for interest and amortization related to streetcar abandonment of the past and for abandonmcnts proposed in Application No 35728
-33shy
LOS ANGELES TRANSIT Ln~S ESTH1ATE OF HILES TO i3LJ OERATEJJ FOR THE TlJ7IVE HONTHS-ENDING OCTOBER 31 1 q55
A UNDJilR PRESENT OPERATIONS B WITH HOTOR COACH SlfilSTITUTION AS PROPOSED IN APPLICATION NO 35n8
CASE I - PRESENT OPERlTI03S Present Fares Propose(l Fares
Estimatet Estimated Estimated Hiloago Estimated Est T)imirDl l4i Recluc-Estimatea Miles Miles (a) Decrease In Traffic Roduction Mileage of Traffiction Below Proposed
Item As Shown In Miles of the Decline Duo TrafficPresent FaresBelow TrafCol6 Due to Fares PDC Staff Dacrease9-15-54 to Docline (2) x At PrescntDiminution Col 6 x
________ (3) x (4) (100 - Col 5gt Fares (7) x (3) (100 - ColFJdlibLLJamp~Passengers ~-55 8) (1) (2) (3) (4) (5) (6) (7) (8) (9)
streetcar 12041861 30 43 L29 11587000 39 117 11748000
Trolley Coach 2546000 92573633 25f~ 43 1 075~b 3 0 975 2521000
Motor Coach (b) ]8li-~4 849 20 4 3~ 86 10 18106000 39 78 18163000bull I~
f-- ---J Total (b) 33080343 32739000 32432000
CASE II - OFSRATIONS PROPOSED IN APPLICATION NO 15728 Present Fares Proposed Fares
Item Estimatefl 1JIiles(a) As SnownEstimate~- Miles Present FarosEstimate~ Milos Proposed ___-~___------I=n~PDCStaff Exhibit No Col lOx (100 - Col 5) Faros Col llx (100-CQl~
(1) (10) (11) (12)
Stroetcar 6778211 6691000 6 61300O
Trolley Coach 2981376 2949000 2920000
Motor Coach (b) 236629)) 23459 1000 2276 7000
~Total (b) 33422542 33099000 32809000 ill r trl
(a) Based on th~ l ovel of traffic of Septombor 1954 I)
(b) To the estirl8ted milos shown here should bo a~dod 7500 Charter Miles
t-3
- - - - - - -
LOS kJGELES TRANSIT LINES Table 3 Sheet 1 of 3ESTIMATE OF RAIL OPERiTINGifiPENSES
CASE I - UNDER PRESENT OPERATIONS
Company Estfor 12 Mo~ Records Ending
Acct Jan-May 1954 103155 No I t e m Annualized Present Fares
Car Miles Way and Structures
1-24 ill Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 Superintendence 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conducting Transportation 63 Superintendence 64 Conductor Motormen etc 66 Car Service Emp 67 Miscel1 Car Service Exp 70 Car House Empa
Var other Cond Transp Accounts Total
Traffic 79 Superintendence 80 AdvertiSing
Total General
83 Gen Off - Sal and Exp 84 Gen Off Emp - Sal amp Exp 85 Gen Off a SuppJies amp Exps 88 Pensions
(93 Insurance PL amp PO (93 Insurance Workmens Comp (93 Insurance Other
Var Other General Accounts Total
Total Rail Operating Expense
Cents per Car Mile
12573226
$ 722615
$ 79078 759547 146522
$ 985141
$ 18190 174643 482945
23033 $ 698 811
$ 438900 3257666
104525 76608
351696 57240
$ 4286635
$ 6346 18353
$ 24699
$ 83645 123281
35570 4818S8 765019 46840 13664
287090 $ 1836967
$ 8554874
68004cent
ll887OOO
$ 722600
$ 79100 671200 147900
$ 898200
$) 18200 174600 547200
28900 $ 768900
$ 438900 2890900
104500 72200
351700 59600
$ 3917800
$ 6300 18400
$ 24700
$ 78900 123300 35600
456600 750400 ~ 43100 13700
282tl00 $ 1783700
$ 8115900
6827cent
Co
)
-
(1
I
flI
Car Miles Oper middot Exp Case I-B - Applicants Proposed Fares 11748000 $ 8047000 ~ Expenses Variable with Car Miles Wage rates used herein are those whieh
Ac30amp33 565 cent~ile prevailed immediately prior to 6154 59 460 The cost of the wage increase which 64 2432 tecomes fully effective on 12154 is 70 148 50 of total shown separately in Results of
Total 3605 centmile Operation table ~ See Table 5 for amounts under Proposed Fare
- 18 shy
- - - - - ------
LCB ANGELES TRANSIT LINFS Table 3 ESTIMATE OF TROLLEY COACH OPERATING EXPENSES Sheet 2 of 3
CASE I - UNDER PRESENT OPERATIONS
Acct No I t e m
Coach Miles Way and Structures
1-24 All Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 --superintendenoe 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conduoting Transportation 63 Superintendence 64 Operators Wages 70 Car House Employees
Var Other Condo Transp Accounts Total
Traffic 79 Superintendence 80 Advertising
Total General
83 Gen Off - Sal amp Exp 84 85
Gen Off Emp - Sal amp Exp Gen Off Supplies amp Exps
88 Pensions (93 Insurance PL amp PD (93 Insurance Worlanen s Comp (93 Insurance Other
Var Other General Accounts Total
Total Operating Expense
Cents per Mile
Case I-B - Applicants Proposed Fares
Expenses Variable with Coach Miles Acs 30amp33 477centmile
59 3038 64 2342 70 075 50 of total
Total 3232centjmi1e
~ See Table 5 for Amount Under Proposed Fares
Company Estfor 12 ME Recorda Ending Jan-May 1954 103155 I ~
Annualized Present Fares ~
2629188 2546000
$ 26518 $ 27000
$ 32628 $ 32600 125469 121400
11012 9600 $ 169109 $ 163600
$ 3770 $ 3800 35770 35BOO 75017 86000 1
8417 9000 $ 122974 $ 134600
$ 99161 $ 99200 612513 596300
38273 38300 21802 21500
$ 771749 $ 755300
$ 979 $ 1000 3588 3600
$ 4567 $ 4600
$ 15134 $ 12100 22990 23000 5669 5700
87614 83000 165089 97300 I
8516 8000 ~ 3054 3100
49076 48700 $ 357142 $ 280900 6
$1452059 $1366000
5523cent 5365cent
Coach Miles Oper Exp 2521000 $1355400 -- -0
Wage rates used herein are those which prevailed immedshyiately prior to 6154 The cost of the wage i~crease which becomes fully effective on 12154 is shown separately in Results of Operations table
- 19 shy
LOS ANGELES TRANS1 LINS TABLE 3 ESTIMATE OF MOTOR COAOH OPERATING EXPENSE Sheet 3 of 3
CASE I - UNDER PRESENT OPERATIONS
Company Estimate for Records 12 months
Jan - May Ending Acct 1954 103155 No I t e m Annualized Present Fares ~
Coach Miles 1832~158 18314000 Equipment Maintenance amp Gara~ Expense
4110 Supv - Shop and Gar $ 142788 $ 142800 4140-2 Repairs to Rev E~uipment 1097376 848800 4150 Servicing Rev Equipment 308373 307700 4160 Tires - Rev Equipment 123305 125200 Var Other Maint Accounts 151444 147300
Total $1823286 $1571800 Transportation Expense
4210 Supervision of Transp $ 487284 $ 487300 4220 Drivers I vrages 3767184 37589001= 3) bull
4230 522175 523800 )0
4240 Oil for Revenue Equipment 17256 19500 JOJ
Var Other Trans Exp Accounts 60153 58200 Total $4854052 $4847700
Traffic and Advertising 4470 Advertising $ 21593 $ 21600 Var Other Traffic Accounts 7)329 76500
Total $ 94922 $ 98100 Insurance
4510 Salaries and Expenses $ 18818 $ 18800 4520 Insurance PL amp PD 786322 542OOOp 4541 Insurance Workmens Compo 51458 50100p Var Other Insurance Exp 11357 11700 - shy
Fuel for Revenue Equipment _
J Total $ 867955 $ 622600 Administrative and General
4611-2 Gen Officers - Sal amp Exps $ 90806 $ 73500 4613-6 Gen Off Employees - Sal ampExp 138043 137000 4620 Law Expense 12910 16000 4630 Gen Office Supplies amp Exp 51689 44800 4640 Communication Expense 41143 45500 4652 Employees vlelfare 525737 498200 4655 Purchasing amp Stores 120790 120800 Var All Oth~r Adm amp Gen Exp 70090 53900
Total $1051208 $ 989700 Rents 15000 15000
Total Motor Coach Expense $8706423 $8144900 Cents per Mile 47middot50cent 4447cent
Coach Miles Ouer Exp Case I-B - Applicants Proposed Fares 18171 000 $8088900 -----shy
Expennes Variable with Milos Wage rates used herein are those which Ac 4140 463centmile prevailed immediately prior to 6154
4150 084 50 of total The cost of tho wage increase toJhich beshy4160 068 comes fully effective on 12154 is clnwn 4220 2052 separately in Results of Operation table 4230 286 4240 011
Total 2964centmile cent See Table 5 for Amount Under Proposed Fares 20 shy
TABLE 4
IDS ANGELES TRANSIT LUIES AMORTIZATION AND INTEREST ALLOWANCE
PAVING AND REMOVAL OBLIGATIONS - CASES I AND II APPLICATIONS NOS 35601 AND ~5728
A - Obligations from Abandonments Prior to 1954
Yearly Amortization $132000 Interest 16000
Total $148000
B - Obligations from Abandonment of Portions of IV and Rlt Lines (July 25 1954)
Yearly Amortization $ 4000 Interest 2000
Total $ 6000
C - Obligations from Abandonments as Proposed in Application No 35728 (November 1 154)
Yearly Amortization $ 35000 Interest 2JOOO
Total $ 55000
For Case I - Items A + B $154000
For Case II- Items A + B + C $209000
Includes cost of removal of electrical distribution system ($123700) and of substation equipment ($21600)
- 21 shy
LOS ANGELES TRAl~SIT Lli~S
RJBLIC LIABILITY PROPERTY DAl1AGE AND 1l0RIJftElI i S CCMFEi-TSATION EXPENSE illLATED TO SOUln~EbTT MILES Aim R3W-RLS PAS~lWEFS
CASE I - UNDER PRHSENT OPSHATIONS 1947 - 1950 Inc Jan-May Est FOr
Line Ito m 1951 1952 1953 195412 MosEnd No Total Av per Yr Annualizod 10 31 55
1 Lossos paid (n) $ 3890 $ 972 $ 1082 $ 902 $ 580 $ 262 2 Losses ostimato~ (a) 39 10 52 280 634 881 3 Reinsurance costs (a) 282 71 62 69 ____81 65 4 Total Losses_amp Insurance (a) $ 4211 $ 1053 $ 1196 $ 1251 $ 1295 $ 1208
5 Expenses paid (a) $ 1536 $ 384 $ 353 $ 385 $ 242 $ 170 6 Expenses estimated (a) 7 2 _ __ 11) 61 182 24S 7 Total expenses (a) $ 1543 $ middot 386 ~ 363 $ 446 $ 424 $415 8 Total LossesReiils amp Exp (a) $ 5754 $ 1439 1559 $ 1697 1719 $ 1622
(Lina 4- + 7) I 9 Number of claims filed 59991 14998 11588 11104 10246 9228
N
N 10 Vehiclo miles (millions) 153 4 384 356 351 346 336 I
11 Revenue Passon~crs (millions) 10093 2523 1924 1746 1661 1531
12 Loss Per 11i1 lliilos (4 ~ 10) ~27451 $27451 ~33596 $35~641 $37428 $35952 $35000
13 Loss Por i-Hllion Pass (4 11) $ 4172 $ 4172 ~ 6216 ) 7165 ~ 7797 $ 7890 $ 7500 14 Expensos por claim (7 f 9) h
ltfgt 2572 Y 25middot72 i) 3133 $ 4017 4138 $ 4497 $ 45 15 Claims per million miles (9 10) 391 391 326 316 296 275 280
16 Claims per million pass (9 11) 59 59 60 64 62 60 60
Ul p- CD (I)
(a) Thousand of dollars amp8
t-G o ~ H
J N
TABLE 5 LOS ANGELES TRANSIT LUTES Sheet 2 0 f 2
ESTIMATE OF PUBLIC LIABILITY AND PROPERTY DAMAGE AND WOBKMElJ 1 S COMPENSATION EXPENSES
FOR 12-MONTH PERIOD ENDING OCTOBER 31 1955 UNDER CASE I-A AND CASE I-B - PRESENT OPERATIONS ~lITH PRESENT amp PROPOSED FARES
Line 110
Cost Factors 1 Claims per million revenue passengers bull bull bull 2 raquo raquo vehicle miles bull bull bull 3 Expense per claim bull bull 4 Losses per million revenue passengers
raquo raquo vehicle miles bull bull bull bull 5 bull bull
60 280 45
7500 35000
Estimated Expense For PL and PD and Workmens Compensation Insurance
Case I-A Present Fares
6 Number of rovenue passengers (millions) 1395
7 Number of vehicle miles(millions) 3275
A - Basod on Number of Passengers 8 Losses 9 Expense
10 Total
B - Based 11 Losses 12 Expense 13 Total
$1046200 376700
$1422900
on Number of Vehicle Hiles $1146200
412700 $1558900
14 Average of A and B (PL amp PD and Workmen 6 Compo - $1490900
15 Workmens Compensation Insurance 101~200(a) 16 PL and PD Insurance 1389700
Distribution of Total PL amp PD Percent
17 Rail Operations 541 $ 750400 18 Trolloy Coach Operations 7 97300 19 Motor Coach Operations ~ -542000 20 Total 100 $1389700
Case I-B Proposed Fares
1341 3244
$1005700 362100
$1367800
$1135400 408700
$1544100
$1456000 100200 (b)
1355800
$ 732~100 94900
528800 $1355800
(a) Rail=$43lOO Trolley Coach=$8000 and Motor Coach=$50100
(b) Rail=$42 600_ Trolley Coach=$7 ~ 900 and Hotor Coach=$49 (00 _ --- I
- 23 shy
lA3LE 6
LOS ANGELES TRANSIT LINES ESTIHATE 041 OPERAT1NG TAXES
FOR 12 MONTHS ENDING OCTOBER 31 1955 CASE I - PRESENT OPERATIONS
APPLICATION NO 35601
Book Record Case I-A Case I-B L1ne I t e m 12 Months Present Proposed
No End 5-31~ Fares Fares(~ ) -=-----=-(3)~--=--~r(4~)~-(1)
1 City Franchise Taxes $ 473687 $ 434600 ~ 481900
2 Property Taxes-Ad Valorem 457963 435000 435000
3 Fuel and Oil Taxes 360580 337700 335100
4 Motor Vehicle License Taxes 136984 Ib8 900 168900
5 Transportation License 15600 21~00 (3 B of EHlshy
6 payroll Tuxes 265000 262500
Other raxes 7000 70007
Total ~ip 1 603 800
Net after weight fee credit
-24shy
separated into seven second zoncs Additional third zone areas arc served
as follows
Eagle Rock and Griffith Park districts in the North
Beverly Hills district in the West
Inglmrood and South Gate districts in tho South
Further to the south two fourth-zone areas are designated as Hawthorno
Zone 4 and Hollydale Zone 4
Historical Aspects of Traffic Trends and Operating Statistics
Chart 1 provides a historical background for traffic trends and
operating statistics of Los Angeles Transit Lines for the period from 1940
to 1953
Present and Proposed Fare Structures
The fares currently charged and those re~uested in Application
Nc 35601 are as follows
Present Fares
I-Zone - 2-Zone 3-Zone J-Zone
Adult l5~ or 20cent or 25~ or )O~ or T Til + 5~ T loi T l5~
School 9~ l2cent l5~
T = Token sold at 7$100
Proposed Fares Set Forth in A~lication NQ 2~60l
Adult 29~ 35~
School 20cent
Sold in books of 40 rides
- J shy
In summary thepropos~dchalges aro - t - ~ ~- shy
(1) Eliminate tokens
(2) Increase single zone fare middot tQ 17 with 6~ increments for each addi tional zone
(3) Increase school single-zono cominUte fara to lO~ with 5cent incroments for each add~ tional zone
Changes in Operation - Case II
In Application No 35728 Los Angeles Transit Lines requests authority
to convert about 40 of its present street car serVice to motor coach service
and at the same time to convert ono line nbw operated by motor coach to trolley
coach Following is a list of the street car iines ~hich the company proposes
toconvort to motor coach
No and Name of Line Amount to be Converted
No 5 - Eagle Rock and Hawthorne Entire Line
No7 - So Broadway and Civic Center n II
No8 - W54th St and No Main st II No9 - W4Bth St-Lincoln Park In part From W end of
Line at Crenshaw Blvd and 48th St to Broadway and 11th St
FlI_ S Vermont and Union Station Entire Line
IIW _ W Washington and Highland Park In part From Broadway and Pa saQena Ave to N end of the line at Y middot)l~Y lv and Avenue 50
The motor coach line to be converted to trolley coach is
No and NRme of Line Amount to be Converted
Entire LineNo 41 - Alvarado Street
Passengers and Passenger Revenuo- Case rand Case middotII
Adult Passengers and Revenue
Because of the method of fare collection the company does not main-
t[in records of passengers carried HowErVer it does maintain a daily record
of cash fares and token fares This revenue informationi s used herein in
conjunction with a traffic check which ltlas m~de to determine the n~ber of
passengers by zones The traffic check was conducted in 1950 in connection
with Application No 32335 and the resulting percentage distribution by zones
of adult passengers is sho1rm in Column 1 of the following tabulation The
column to the right shows the percentage distribution used in this reportwhich
has been adjusted to reflect variation in diminution by zones and in the trea tshy
ment of certain passengers handled to Hollywood Park
Percent of Adult Passengers
As Used in As Used in ARglication )2225 This Rill2ort
l-Zono 674 666 2-Zonc 286 293 3-Zone 37 3~5
4-Zone 03 15
1000 10000
The following tabulation shows the fares in effect from the lattor
pc~rt of 1950 when the present pattern was established to date The first
column shows tho actua l adult I-Zone fare while the second column shows the
computed average adult fare for all zones Average Adult Fere
Period ~ Adult I-Zone Fare All Zones
12-10-50 to 1-23-52 lOp 1182l 1-24-52 to 11-2-52 15~ or 225p 14bull58
11-3-52 to 11-29~53 15~ or 340cent 1554
11-30-53 to Date 15~ or 7$100 1655
This average f are is estimated at 1664~ for the rate year under present fares because of the declining use of tokens
- 5 shy
The trend of total adult pa~s~ngers is shown in Chart 2 The
estimated adult revenue passengers for the twelve-month period ending ~
October 311955 under prosent fares are135363000 andare shown in the
chart at m1dpqint of the rate year Token use under present fares was
estimated to be 35 in each of the four zones The diminution or loss of
passengers due to increased fares was estimated to be 25 of the percentage
incrbase in the fare involved The estimated 135363000 adult passengers
developed in Chart 2 are also shown in Table 1 Coi1lffiIl 5 Line 13 and flrEl
distributed to the various zones on the basis of the percentages shown in
the above tabulation
Hollywood Park passengers are esti~ated to be 200000 annually
and the fare for these passengers is 10~ Although these Hollylood Park
passeng~rs may originate in the dOlntown area they become in essence new
passengers when they board the Hollywood Park Line since they have no transshy
fer privileges Adult passengers and revenue (shown in detail in Table 1)
for the twelve months ending October 31 1955 are summarized as follows
Passengers Revenue
Presont Fares 135563000 $22513000
Applicants Proposed Fares 130039000 25037000
Following is an estimate of school passengers and revenue and
U s Postal employee passengers and revenue
School Passengers Revenue
Case I-A Present Fares 3358000 $319000
Case I-B Proposed Fares 3245000 351000
6 shy
U S Post Office
Pas senger s Revenue
Case I-A Present Fares 616000 $ middot88000
Caso r~B Proposed Fares 616000 105000
Token Adjustment
It is estimated that based upon tho present experience of applishy
cant three tokens out of 1000 tokens sold or 0356middot will never be redeemed
This amount will be considered as an added revenue and is estimated at
$20000 under present fares
Other Revenue
From such sources as rent interest on franchise bonds charter
advertising and miscellaneous there is an estimat~d rovenue of $187000
under all cases
Revenue under Case II - Proposed Motor Coach Substitution (Application No 35728)
UnderCas8s II-A and II-B proposed motor coach substitution the
estimated rovenue will be the same as in Cases I-A and I-B respectively
Mileage
The estimated mileage to be operated during the rate year is
shOllTn in Table 2 This estimated mileage is based upon a study by
Mr William F Hibbard Associate Transportation Engineer of the
Commissions staff and is shown as a separate exhibit in this matter
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Operating and Maintenance Expenses -- Case I
Estimates of operating and maintenance expenses are shown in
Table 3
General
Unless otherwise stated in the following paragraphs operating
and maintenance expenses are based on experience and conditions currently
prevailing In estimating operating and maintenance expenses it is
estimated that 100 new 48-passenger diesel coaches will start operating
at the beginning of the rate year replacing older coaches now in
operation These new coaches will slightly increase the fleet cost of
tires and substantially decrease the cost of Account No 4140 - Maintenance
Expense
Wages All wages are included in the detailed estimates
shown in Table 3 at the level prevailing immediately
prior to ~ 1 1954
Wage Increase The wage increase which becomes fully
effective on December 1 1954 is sh~m separately
on Line 12 in Table 10 Results of Operation
Fuel The cost of fuel is based upon the current level
of costs including an ircrease in the Sales Tax
on diesel of 05 effective July 1 1954 for
the City of Los Angeles
Tires The unit cost of tires is based on that prevailing
under contract for the period July 1 to Decernber-31
1954 The estimate of the cost of tires reflects the
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~ - - -- -- - - shy
estimated higher unit middot tire cost per mile for the
loa ne coaches which are to be put in operation at
the beginning of the rate year
Power The cost of power reflects the increase recently
granted to Southern California Edison Company by
this Commission
Public Liability and Property Damage Insurance and Workmens Compensation Insurance Coverage for these types
of insurance is carried with Transit Casualty
Company the stock of which is owned by the following
affiliated or subsidiary companies
Percent of Common Stock Owned
National City Lines 30 Los Angeles Transit Lines 24 St Louis Public Service Company 46
Total middot 100
From 1953 Annual Report to the Insurance Department State of California The present premium rate charged by Transit Casualty Company to applicant is 7 of passenger revenue In this report as in pre~ous reports the estimate of the Commissions staff has been predicated on unit costs related to the number of passengers carried and tho vehicle miles operated The estimate for Case I is shown in Table 5
Operating Expenses - Case II
Case II - Operating expenses are shown in detail in Table 11
and are based on operations of Casc I adjusted to reflect the estimated
decrease in rail expenses due to the abandOnroent of lItrEiet car operations
as proposed in Application No 35728 the increase in motor coach expenses
re~uired by the substitution of motor coach service for street car service
and the increase in trolley coach expense due to the conversion of Line
No 41 from motor coach operation to trolley coach operation with a
corresponding decrease in motor coach expenses
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Operating Taxes - Case I
Franchise Taxes cmd Business Licenses
Under Case I Present Operationafrnnchise taxes to the City of
Los Angeles were determined by applying current tax rates to estimated
revenues
Ad Vnlore~ Taxes
The estimate for ad valorem taxes under Case I is based on an
assessinent of $6496250 and a tax rate of $67402
Fuel Taxes
Fuel taxes are based on the following per gallon rntes of Federal
and State Taxes
illA Cents ner Ga11Qn Effectiye Dates
Diesel Federal 11-1-54 to 3-31-55 12i ~ 4-1-55 to 10-31-55
State 7 11-1-54 to 6-30-55 ~ 2 ~ 7-1-55 to 10-31-55
Gasoline Federal 2 ~1-1-54 to 3-31-55 11
2 ~ 4-1-55 to 10-31-55
State 6 ~ 11-1-54 to 6-30-55 5i cent 7-1-55 to 10-31-55
Motor Vehicle Licenses
The estinate for motor vehic10 licenses is based on the registrashy
tion weight and vehicle license fees Which will be in effect during 1955
under equipmontrequiremonts as sot forth in the report by Public Utilities
Commission Associate Engineer Wil1in~ F Hibbard
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Trapsportati CD Ii CADse Tax
This license tax is assessed by the Board cf Equalization and
represents 3~ of the gross revenue derived from operations in non-incorporated
areas by motor and trolley coaches The estimate is based on
curront tax rates applied to estimated revenues
Pavroll Taxes
Tho ratos in effect aro 2 for Social s~curity taxos and 03 for
Federal Unemployment Insurance Paymonts to tho State Unemployment funds
will remain at zero as a sufficient accumulation of funds is presently
on hand It is estimated that 94 of applicants total payroll will be
subject to Social Security Tax undor the increased coverago offective
January 1 1955 and that 100 of the employees are subject to FUI taxes
at $3000 per year
Other Taxes
Other taxos include operatorsl licenses Foderal transportation
ta~ manufacturers excise taxes and other miscellnneous taxes The
estimate is based on actwd experience for the yeor ending May 31 1954
Income Taxes
State Corpor8tion Franchise Taxes have been computed at the
current rate of 4 Federal Income Taxes have been computed on tho basis
of a change in rate effective April 1 1955 On this basis the normal
tax 0 f 30 was used for five months of the rata year and 25 for soven
months of the rate year Tho surtax of 22 remains constant throughout
the year In calculating income taxes in both Cnse I and CasarI an
interest credit of $100300 was used
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Rate Base and Depreciation Expense
In General
In accnrdance wi th current Cornmi ssion practice of treating all
property en a remaining life basis the Commission Staff has made an
analysis of Applicont1s property As 0 rosult as of January 1 1954
1 Motor coaches of the series 6200 6300 6600 6700 6800
and 6900 (404 coaches) were put on a total life basis of
12 years This is considered reasonable in view of the
attained age and the condition of the fleet
2 The annual accrual of the Genoral Office Building (Acct 522)
was adjusted to reflect a totel life of 50 years
3 Buildings in Accounts 523 and 524 were assigned a remaining
life of 24 years with depreciation reserve adjusted to reflect
age-life condition
Under both Cpses I and II 100 nel motor coaches have been included
in the rate base as of November 1 1954 tho beginning of the rate ye~r
Other Lpnd (Acct bull 503) and Rights of Way (Acct 502) hewe been
adjusted to reflect estimated original cost
Under Cese I
150 motor coaches of the 6000 and 6100 series (including current
work orders for rebuilding) have boen deleted due to the inclusion of the
100 new coaches as well as tc conform to the equipment roquirements set forth in
Staff Witness Hibbards Exhibit ith 10 f ~r spares
All property on group plan depreciation reflects the current
4 rate of accrual with nermal additions and retiroMents tken into considerashy
tion
The 40 P C C crrs on uni t plan depreCiation wore extended as
of Innuary 1 1954 to a total life of 25 years
12 shy
Under Case II
As evidenced by correspondenco betoJeen the Commission and
Applicant and the request for changes in accounting practices as outlined
in a letter from the Applicant to the Commission under date of April 291954
it is assumed that applicant intends to completely convert to motor coach
operation by the end of 1965 The Rate Base under Case II assumes that all
property relnted to the rail and trolley coach oper2tion ltlill be fully
depreciated by that time This would include all rel~ted items of property
hitherto considered non-dopreciable those rel~ted ~o the present proposed
conversion havo been charged to the group plan depreciation reserve as of
November I 1954 those remaining 2xe depreciated over ~ 12 year period
boginning January 1 1954
150 coaches of the 6000 and 6100 series have been included in order
to satisfy oquipment requirements as outlined by Staff litness Hibbards 1
Exhibit No The work orders for rebuilding 83 of those coachos have
been put on a 3 year lifo (Soc Chart 5)
In conjunction wi th the rate base presentAtion there are shown in
Chart ) pictures and data of the streetcars and trolley coach equipment as
of September 1 1954 Camp~rt 4 shows ~ictures and data of motor coach equipshy
mont as of September I 1954
Amortization and Interest Allowance
Amortization and Interest allowance f or abandcnment oblig~tionsunder
Cases I and II is sho~m in Table 4 The estimates ccntained therein refloct
an income tax credit on the total amount of the obligations The estimate
under Case I is fer obligations incurred prior to 1954 and oblig~tionsconcerned
nV ttwith changos on tho ruld tTRtl lines made effective JUly 25 1954 Under
- 13 shy
C~se II is added the estin~ted obligation in connecticn with the abandonment
nsprop0sed in Application No 35728
Results of Operatirn
Ou-so I Relbvant infr-rr1pticn sh0vm in the f0regcing text ancl
in the tables is summarized in Table 10 - Estimated
Results of Operation - Case I and from this informashy
tion a rate of return and operating ratios are
calculated under Present and Proposed Fares
Case II Using the basic inf0rmation as used in Table 10 in
c0 njunction with the estimate of operating expenses
for Caso II as shown in Table 11 the rates of
return and operating ratins under Case II are developed
in Table 12 - Estimated Results of Operation - Case II
- 14 shy
LO S ANGELES TRANSIT LINES
TREN 0 OF WEEKLY REVENUE- PASS ENGER5 (E)(CLU SIVE OF POSTAL EMPLOYEES AND RIDERS ON SCHOOL FARES)
FEBRUARY 1952 TOJULY 1954 AND
ESTIMATE FOR 12 MONTHS ENDING OCT 31 1955
~ 3middot5 W w ~
a w 0
_ I cJ)
a 30 uJ 19 Z UJ cJ) cJ)
laquo 0
IL 0 25
([)
z 0 J J
~
bull ~ I
l T
-
- -
ltI-N
- 2
- wr-
u
- 2
--
w
- u
A I
1 ( A A I
j
~ J r 1f
I a V J 1 fv V V ~J
V 1IV I 1 II I
I I Jr 0
~
l) - 0 (c
rlt1
gt bull r gt 0 10 z I z ~
I I I w iw
I
I I EST I~ATE FOR 12 foONTHS ENDING OCTOBER 31 1955 w I UNDER PRpoundSENT FARES-
I w
u A - PASSENGERS PER WEEK bullbullbullbullbullbullbullbullbullbullbullbull 2 596 000
u B - PASSENGERS PER yEAR bullbullbullbullbullbullbullbullbullbull 135 363 000
- Z Ii
w I
w I
lt I
u u i
it i--0 w
~ - -lt 0-H gt- =-1--1 a 0
-Y
VI
I
I )
T ~20
JAN f EBMAR APRoMAY J UN JUL AUG SEPOCTNOV DEC JANFEB MARAP R MAY JUNJULAUG SE P OCT NOVmCJANfEB MARAPRMAY JUN JUL AUG S EP OCTNOV DE C JAN FEB MAR APR IoiIAY JU N gt- c-+shy
rv1952 953 954 1955 Wl
LOS ANGELES TRANSIT LINES ESTIMATE OF REVEruE PASSENGERS lID PASSENGER REVENUE
FOR 12 MONTHS ENDInG OCTOBER 31 1955 CASE I AND CASE II APPLICATION NO 15601 AND NO 35728
Present Fares Applicants Proposed Fares Est
Percent of Dlmin- PassenshyLlne of Total Fare Zone Passengera Revenue Fare utlon cera Revenue -=-----Ho-- Item Orldnalt Adjusted (Cents) Paus i cent (Cents) ~ cent cent
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
Adul t Passengers
lOne-Zone 15 65 58599 $ 8790 17 333 56648 $ 9630 2 1427 35 31553 4507 17 475 )0054 5109 3 666 666 1475 100 90152 $13297 86702 $14739
4 Two-Zone 20 65 25780 $ 5156 23 3middot75 24813 $ 5707 5 1927 ~ 13881 2677 ~ 481 13212 30)9 6 293 293 19751 100 39661 $ 783) 38026 $ 8746
7 Three-Zone 25 65 3476 $ 869 29 400 3337 $ 968 a-- 8 2427 22 1871 454 29 485 1 180 516 I 9 38 395 2475 100 5)47 $ 1323 511 $ 1484
10 Four-~one )0 65 1)2 $ 39 35 417 126 $ 44shy11 2927 35 71 21 35 488 68 24 12 ~ ----l5 29 75f 100 20) $ 60 - 194 $ 68 13 Sub-Total 1000 1000 ~ 135363 $22513 1300)9 $25037 14 Holly Park 10 200 $ 20 10 200 $ 20 15 Total Adult 13556) $225)) 130239 $25057
16 School 9 2797 $ 252 10 278 2719 $ 272 17 School 12 561 67 15 625 526 79 18 Total School )358 $ )19 )245 $ 351 19 Post Office 1427 616 $ B8 17 616 $ 105 20 Grand Total 139537 $22940 1)4100 $25513
cent (000) Omi tted ~ 1F Weighted Average Fare ~ If See Chart 2 + + As deter~ined by traffic checks and used in previous Staff reports
CHART 3
rr LOS AtJGELES
TRANSIT LINES
STREET CAR AN 0 TROLLEY COAe H
EQUIPMENT AS OF
H4 OR K4 OPEN END WOODEN SEATS H3 CLOSED ENDLEATHER S EATS SEPTEMB E R f 1954
JIshy
OLDER T YPE OF PCC CAR NE WER TYPE OF PCC CAR
8000 SERIES TROLLEY COACH 9000 SERIES TROLLEY COACH 9100 S ERI ES TROLLEY COACH
STREET CARS TROLLEY COACHES
ALL H3 H4 K4 PCC OTHER TOTAL 8000 9000
SEATS 48 48 48 12 5-61 SEATS VARIOU 44 4540-28 SEATS
EQU IPME NT ASSIGNMENTS UNDER PRESENT CoMPANY BASIS EFFECTIVE SEPTEMBER 12
9100
46 TOTAL
SCHEDULED SPARES
TOTAL ASSIGNED UNASSIGNED
TOTAL OWNED
SCHEDULED
SPARES
TOTAL ASSIGNED UNASSIGNED
TOTAL OWNE D
354 22 57 5
411 2 37 101 13
60 165 37 512 40 EQUIP MENT RE QUIREMENTS PRESENT SERVICE FOR RATE YEAR)
354 36
390 122 512
34 6
40 30
81 16
81 9
90 20
110 EQUIPMENT REQUIREMENTS WITH SERVICE AS P ROPOSED IN
ApPLICATIO N 28 (FOR RATE YEAR
SCHEDULED 20431 23 150 93 4 2 21SPARES 1015
TOTAL ASSIGNED 165 22525 10335 UNASSIGNED - 7
TOTAL RETAINED 225 11025 16535 To BE RETIRED 0190 2 7 37 TOTAL Now OWNED 60 110512 215 165 3735
-lE- ESTI MA TED BY P U C STAFF E
2 r
C
-
6600 SER IE S 6700 AND 6900 SER IE S 6800 SER I ES
L I NE 6200 No TE~ 5000 6000 yf 6 100 yf 6300 6400 6600
MACK G M e G M e G M e G MC G M C I i~IA K( amp UODEl NUMBER C-45 -CT TD-4502 rn -4505 TO- 4506 TDH-5103 TOH shy 36 1 2 YE AR BUilT l~ 1940 1941 1945 1951 1947 3 DATE I N SERV I CE 7 -40 1-42 7 - 45 7 - 51 7 -47 4 NUMBER O F CoACHES 50 55 95 200 25 57 5 PU RCHAS ED NEW OR US ED N N
6 S EATI NG CAPAC IT Y 45 45 45 51 36 45 40
~ LE NG TH - OUT S I DE 3~ -0 3~ - 0 37 -0 3~ -6 30 - 6 3~ - 0 3~ -0 WI DTH - OU T S IDE -Oil _-ttl 8 -0 -611 8 - 2 _OM I - 0
9 HE I CHT - OU TS I DE 9 -6 9 shy 5t 9 -6 9 t 4t ll 9 - 2 9 0 9 -6 10 A I SL( HEADROOM 76 77 78 78 76shy 8 76
11 A ISLE WI DTH 19 2 1 26 22 22 20 12 TY PE O f DR I V( HYD HYD HYD HYO HYD HYD
13 BRA KE HORSE POWER amp FUE L 165io) 165( 0) 165(0) 110(0) 165(0) 165(0) 14 Bo DY f RAME MA TE R I AL AL AL AL AL AL NOT G I VE N 15 Bo DY PANEL ~1ATE R I AL AL AL AL AL AL NO T GI VEN
16 ROO F MATER I AL AL AL amp ST AL AL amp ST AL amp ST NO T G I VEN
~ ~ - AT DCC CMBER 3 1 1953shy14 26 15298AV ER AG E INVE ST PER CoACH $ ~ 21962 $ 13 992 17 60 14 209
19 INVESHIENT 1 354 9~ 3 059 506 549 044 7 97 5~ 2 lt164 650 99 466 10 000 509 20 RE SE RV E 1340 6 2 462 923 135951 503 6 1369 1 02 90 896 7 147 497
21 REM AIN ING VALUE (I NCL SALV) 14 250 596 583 413 093 293 869 1 095 548 8 570 2853 012 22 REMA I N I NG LIF E lOYR BAS I S 22 MO 90 MO 43 MO 52 MO 9 MO
23 REMAIN I NG L IFE 12YR BAS I 46 MO 90 MO 67 MO 76 MO 33 MO
yf THC COS T OF REBU IL DING 102 CoACHES OF THC 6000 AND 6 100 SE RIE S NOT I NCLUDE D HEREI N (SCE NEXT PACE)
1941 AN D 1942 MA T ER I AL S WE RE SuBJ ECT TO PR I OR I T ( S AND THEREFOR E STEEL WAS USE D IN PLACE OF
ALUMI NUM FO R BO DY FR AMES PAN EL S AND ROO FS I N SO ME COACHE S O F TH E TD- 4505 SERI ES
G - GASOl I NC D - D I CSE L AL - ALUM I NU M ST - Srr CL HYD - HYDRAUL I C
lt~i
~~4
CHART 4
LOS ANGELES TRANSIT LINES
MOTOR COACH EQUIPMENT
AS OF
SEPTEMB ER 1954IS_T 6000 SER I ES
6200 AND 6300 SER I ES
6
5 CHART
1~A~PLE OF THE DAMAGE TO BODY PANE LS M D RI VET ED JOINTS
2 - COACH WITH ALL BODY PANE LS Il l NDO V FR M1ES M~) SOIIE BO DY BRAC IN G REMOVED
l
LOS ANGELES TRANSIT LINES
PROGRAM OF
REBUILDING MOTOR COACHES
OF THE
6000 AND 6100 SERlES
j - PAR TI AL Re STO RA TI ON SODY PA NE LS Ix I I I )SI I ELD FRA Il E REPLA CED AFT ER kt C~ D I T I ON 116
I+ - AL L BO DY PANE LS AND S I DE W I~ DO J FRAhi ES RE shyPLACED AND ~ ESTO~ED
5 -INT ER IOR SHOW IN G CO MPLET E RE MOVAL OF SEATS AND OTHE R AC COUTERM ENTS REPLACED OR RECOND ITIO NED
6 -COMP LETE D I NTER l OR - t EIJ FLOO R
COV ER IN G WIT H S EAT CUSH IONS ETC
7 - COMP LET ED EXTER l OR COACH REPAI NTED AND READY FOR SERV I CE
I N 195 1 Los AN GELES T RANS IT LINES I NAUGURA TED A PROGRAM OF REBU IL D I NG GMC CoACHES OF THE
6 0 00 (BU ILT IN 1940) AND 61 00 ( BU ILT IN 1941) SER IE S A s OF JU LY 1954 62 COACH ES HAD BEE N
REBUILT WITH 40 ST ILL ON WORK ORDERS BUT IN PROCeSS THE CURRENT EST IM AT ED CO ST OF THIS
P ROGRMil I S AN AV ERAGE OF ~3500 PER COACH THE P U C S TAF F EST IMA TES THE LIF E OF TH ES E
COACH ES TO BE AN ADDIT IO NAL THR EE YEAR S FRO M DATE OF COMP LETI ON COS TS OF REB UILDING AR E
SHOWN I N THE RATE BAS E RE LATIV E TO THE APPROP RI ATE WORK ORDER AN D THEREFORE ARE NOT INCi UDEu
IN THE I NV ESH IENT FOR 60)0 AND 6100 S ERI ES COACH ES SHOWN ON CHAR T No 4
LOS ANGELES TRANSIT LINES SSTIMATED RATE BASE AND DEPRECHTION EXPENSE
12 I~ONTHS ENDING OCTOBSR 31 1955 CISE I - VnTH PRY-SENT METHOD OF SERTICE - APPLICATION NO 35601
Gum October 31 1954 As of October 31 1955
Line
No Item (1)
Iccnunt Number Invcstment
(2)
(3) Reserve
(4)
Inve stmen t Less
Reserve (5)
Remaining
Life (6)
In
Inve s tIDen t Less
vestment Reserve Reserve (7) (8) (9)
Depreciation Expense RAte YeAr
(10) LAND
1 2
Rights of VVAY Other Lmd
502 503
S 426974 1931112
$ 426974 1931112
$ middot 426974 1931112
$ 426974 $ 1931 112
EQUIP~NT ONl~ITDEPRECI~TION
3 Auto Tr011ey pcc53033Jf~034288 $ 7167640 $ 6866648 V3rious $14034288 $ 8125353 $ 5908935 $ 957713
PROPERTY ON GROUP DEPRECIATIJN OverheAQs
4 Engineering 501 $ 44651 $ 44651 OrgAnizAtiorfshy 546 601749 601749~ 5
6 Interest 547 middot 916884 916884 7 Gnding 504 1117084 1118084 8 All Other 505-545 27021634 4 Base 27141634 _____ _________ 9 Suttotal
(Lines 4 to 8) $29702002 $22441215 ~ 7260787 $29823002 ~23516286 $ 6306716 $1081071_
10 Tr)W(Lines 123 amp 9) ~46094376 $29608855 ~16485521 $46215376 $]1641639 $14573737 $2038784
11 RATE BASE Use - $2039000 12 Avenge 0f $16485521amp ~1+573 737 $15530000 13 Work in Progress 100000 14 M1terials amp Supplies 735000 15 Bond Deposit - City Fnnchise 411000 16 Deposit for PL Insurance 150000
17 Totil RAte BAse $16926000 8 t ~
-It- rhjor PArt of Acct 546 is Supervisinn --J
-----
LOS ANGELES TRI-NSIT LINES ESTThiIiTED Ri1TE BASE AND DEPRECllTION EXPENSE
12 NiONTHS ENDING OCTOBER 31 1955 CIlSE II - SSUMING MOTOR COACH SUBSTITUTION ON CERTHN RAIL LINES AS PROPOSED m iiPPLICilTION NO 35728
---- --------------- As f Oct)ber 31 195amp As of Oct0ber 31 1955 Inve sUn8nt Investment IBpreciaticn
Line Account Le ss REffiainin~ Less ExpensE No Item Number Inve-stmcnt ReS8riTe Reserve Life Investment Reserve ~ Reserve Rate Yeqr
(T) T2) 0) (Ii) (5) (6) (7) (8) (9) (10)
Ll~ND
1 Other LAnd 503 ~ 1925510 $ Ci 1925510 ~ 1925510 $ 1925510
EQUIP1A~NT ON UNIT DEPRECIATION 2 itutoIrol1eyPCC 5))3338 $16392563 $ 9323673 $ 7068890 Various $16392563 ~10391985 $ 6000578 $1068312
BUILDJNGS 3 General Office-~ 522 $ 916255 $ 563016 ~ 353239 1917 Yrs$ 916255 $ 581446 $ 334809 $ 18430 4 Shops Grgs Admin 523 amp524 2733772 1013500 1720272 2320 Yrs 2733772 1087633 1646139 74133 5 Subtotal (Lines 3 amp4) 3650027 ~ 1576516 gt 2073511 igt 3650027 11669079 ~ 1980948) 92563
~ PROPERTY ON GROUP DEPRECIATION Overheaas
6 Engineering 501) 7 Organizqtion 5~6) tt 1563178 ~ 1563178 8 Interest 547) 9 Grlding 504)
10 Righ ts of Vgy 502 117922 117922 11 All Other 505-5h5 15 651 31 7 15 771 31 7 ~---7-=-~-- lr-r-----=~ -x---r---~ 12 Subtotal (Lines 6 to 11) )17332417 $11343350 ~ 5989067 1117 Yramp$17452417 ~11833307 ~ 5619110 ~ 495957
13 Totql(Lines 125 amp 12) ~39300517 822243539 ~17056978 839420517 023894371 015526146 01656832
14 RATE BASE Use ~1657OOO 15 Avcr~ge of ~1705697B qnd )15526146 016292000 16 Nwk in Progre s s 100000 Am)unts sh)wn include lpplic3ble -werheqds fr)ll 17 Haterills amp Supplies 735000 Accnunts 546 amp 541 18 Bond Deposit - City Frqnchisc 411000 cent Investment ~d depreciation reserve assumes all 19 Deposit for PL Insurqnce 150000 retirements for the lines to be cmiddotmvcrted 1--3
20 Use Vqlue - Fully Depreciated CJtches 1)2000 ~re m~de 3S ) f November 1 1954 qnd that the ~ full unnunt middotf r e tirements qre charged to the EJ
21 Tot-l R1te Blse ~17840000 reserve co
10S ANG3LSS TRANSIT LI~S
INVESTWNT DSPRCIATICN R~SsRVS AND EXPSNS~ FOR ~QUIPMLNT ON UNIT PLAN DEPR3CHTION
CASES I AND II APPLICATIONS NO 35601 AND 35728
As of Oct0ber 31 ffi4 As of October 31 1955 Line NoTotal Investment fnvestment Depre No Item of Life Investment Reserve Less Investment Reserve Less Expense
Units Reserve Reserve Rate Year (1) (2) (J) 4) - ---(~ CD) en -- --8)----- -(9j- (10)
For Case I 1 Motor Coach Groups
62006300 66-6900 hOh 12 Yrs$6421159 $4728599 ~1692560 ~ 6421159 $ 500 1011 ~1330lh8 $ 362412 2 5000 6hoo 75 10 II 1486387 77~175 711212 1h86387 92h851 561536 149676 3 Coaches on order 100 10 II 2285400 2285400 2285400 2265J~0 2058860 226540
II
I 5 Automobiles 51 V3r 99485 50916 h8569 99485 66540 329h5 15624 ~ 6 Trucks amp Service Cars 56 II 280584 250572 30012 280584 265813 lh771 15241 I 7 Misc( Fare BoxesMotors) 170193 115191 55002 170193 122271 47922 7080
h Trolley Coaches 110 15 2108h09 908560 1199849 2108h09 1Oh6116 1062293 137556
8 Total of Lines 1 to 7 ~12851617 ~~6829013 ~02260h ~12i351617 ~ 77h3lh2 $5108475 $ 914129
9 PCC Rail Cars 40 25 rsJ~ 1182671 ) 338627 gt 84h04h 1182671 ~ 382211 ~ 800460 $ h3581~
10 Case I - Line 8 + Line 9 $14034288 $7167640 $6866648 ~14034288 $ 8125353 t5908935 $ 957713
For Case II
11 6000 amp 6100 Series MC 150 FD ~ 2092963 $2070463 ~ 22500 $ 2092963 $ 2070463 $ 22500 12 Work orders on 6000s
amp 6100 s 3 Yrs 265312 61860 203452 265312 144007 121305 $ 82147 13 PCC Rail Cars 401717 1182671 362 337__ ~~~ 334 1182671 43473 ___748298 72036
14 Case II - Lines 8 + 11+ 12+ 13 ~16392563 9323673 n068890 $16392563 ttl0391985 ~6ooo578 ~1068312
t-3
125 other PCC Cars are in Group Depreciation Schedule G ~
Note579 motor coaches under Case I and 729 under Case II D
LOS AlJGELES TRANSIT LnlES TABLE 10 ESTIMATE]) RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD E1TDUTG OCTOBER 31 1955 CASE I - UNDER PRESENT OPERATIONS
12 Months Jan-June
Line No Item
Tab1e Ending or May 31 1954 Page Fe fer
(2)
Book Record
(])
1954 Annualized
Book Record
(4)
Case I-A Present
Fares (5 )
Case I-B Applicant l s
Proposed Fares
(6)
1 Vehicle Miles T2 34036066 33569520 32747000 32440000
Revenue 2 3 4 5
Passenger Revenue Unredeemed Tokens Other Revenue Total
T1 P7 P7
$24849150
122402 $25044557
$24517866
183810 $24 701676
$22940000 $25513000 20000
1821 000 182 000 $23147000 $25700000
6 7 8
Operating Expenses Rail Trolley Coach Motor Coach
T3 T3 T3
$ 8493744 1442232 8622956
$ 8575232 1451430 8 n6470
$ 8115900 $ 8047000 1366000 1355400 8144200 8088900
9 10 11 12 13
Sub-Total Depreciation Operating Taxes Wage Increase Total
T7 T6
18563932 2176608 1676358
$22416898
18743132 2185804 1760600
$22689536
17626800 17491300~ 2039000 2039000 1663800 1711700
439800 436500 $21769400 $21678500
14 Operating Income $ 2627659 $ 20J2JJQ $ 1377600 $ 4021500 15 Other Inc amp Inc Deduct 21258 (9328)
16 Net Inc Before IncTaxes 2635217 2002742 1377600 4021500 I 17 Income Taxes (St ampFe~) 1302758 1026568 647500 1 999 000 18 Net Operating Income 1332459 976174 730100 2022 500 i 19 Allowance T4 112216 80752 1541000 1541000 20 Net Income $ 1220243 $ 895422 $576100 $ 1868500
21 Rate Base T7 $17393000 $16727000 $16926000 $16926000 22 Rate of Return 70~ 535 340 1104
Operating Ratio 23 Before Income Taxes 9405 8435 24 After Inc Taxes ampAllow 9751 927)
Not Applicable
Computed by PUC Staff Allowance for interest and amortization of abandoned property (Red ]figure)
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IDS ill~GElES TRANSIT LINES ESTIMATE OF OPERATllIG EX-degENSES JuID TAXES
FOR 12 f10NTHS ENDING OCTOBER 31 1955 CASE II - KOTOR COACH Sl~STITUTION - j~PLrCATION NO 35728
Table or Line Page Hotor Trolley
~To Item Reference Streetcar Coach Coach Total
l 2 3
4
I S
rv 6VJ
I 7 8 9
10 ll 12 13 Ih 15 16
17
13
(ll- -- shy
Vehicle Miles Case I - Present Operation Case II - Proposed Operation
Increase in i1iles
Opere amp I1aint Expense - Case I
Changes in Expense Due to Conversion Way and Structures Substation Operation Rail Crossing Protection Vehicle Maintenance Servicing of Vehicles Tires - Hotor Coach Equipment Operators vJages Fuel Oil or Power 21 amp PD Insurance ~Jorkmen I s Compensation Insurance Training Drivers for Conversion
Total Increase in Expense
Oper amp i1aint Expense - Case II (Line h +
Operating Taxes - Case II
(Red Figure)
(Z)
T2 T2
T3
Line 16)
D)
11887000 6691000
(5196000)
~ 8115900
t (11500) (42200) (55000)
(270900) (76900)
(1232900) (219800)
(liT shy
18314000 23h67000 5153000
amp 314~900
~
355000 h3300 32500
1154300 153000
-C5) (6)
2546000 32747000 2949000 33107000
403000 360000
S 1366000 ~gt 17 626800
If (144500) 1 ~ v$ ltW (42 200 ) - bull (55 000 ) 7HmiddotVj
19200 103300 M~ f~
3000 ( 30600) A N- i
32500 94400 15800 14600 (52206)
(1l1100) ~ [ (1200) Glh
30000 ~i
p (258200)
$17368600 r3
c~ 1786600 cr ill
I- CD
I- i-
TABLE 12
LOS ANGELES TRANSIT LINES ESTIMATED RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD ENDING OCTOBER 11 1955 CASE II - MOTOR COACH SUBSTITUTION - APPLICATION NO 15728
Table Case II-A Case II-B Line Item Refer- Present Proposed
Nos i FSles Faresect~nce
( 1) (2) (3) ( 4)
1 Vehicles Miles T 2 33107000 32817000
2 Operating Revenue T 10 $23147000 $25700000
O~erating E~ense
3 Operating and Maintenance Tll $17368600 $17234900 4 Depreciation T 8 1657000 1657000 5 Operating Taxes Tll 1786000 1837800 6 Wage Increase 434ZQQ 431 lt)00
Total $21246300 $211612007
8 Operating Income $ 1900700 $ 4538800 Other Inc amp Inc Deductions it 119
10 Net Income Before Income Taxes $ 1900700 $ 4538800 11 Income Taxes (State amp Federal) 214 200 2262 400 12 Net Operating Income $ 985800 $ 2275400 13 Allowance T 4 ~ 2090QO ~ 20200Q 14 Net Income $ 776800 $ 2066400
15 Rate Base T 8 $17840000 $17840000 16 Rate of Return 435 1158
012erating Ratio 17 Before Income Taxes 9179 8234 18 After Income Taxes amp Allowance 9664 9196
Not Appli cable
Allowance for interest and amortization related to streetcar abandonment of the past and for abandonmcnts proposed in Application No 35728
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LOS ANGELES TRANSIT Ln~S ESTH1ATE OF HILES TO i3LJ OERATEJJ FOR THE TlJ7IVE HONTHS-ENDING OCTOBER 31 1 q55
A UNDJilR PRESENT OPERATIONS B WITH HOTOR COACH SlfilSTITUTION AS PROPOSED IN APPLICATION NO 35n8
CASE I - PRESENT OPERlTI03S Present Fares Propose(l Fares
Estimatet Estimated Estimated Hiloago Estimated Est T)imirDl l4i Recluc-Estimatea Miles Miles (a) Decrease In Traffic Roduction Mileage of Traffiction Below Proposed
Item As Shown In Miles of the Decline Duo TrafficPresent FaresBelow TrafCol6 Due to Fares PDC Staff Dacrease9-15-54 to Docline (2) x At PrescntDiminution Col 6 x
________ (3) x (4) (100 - Col 5gt Fares (7) x (3) (100 - ColFJdlibLLJamp~Passengers ~-55 8) (1) (2) (3) (4) (5) (6) (7) (8) (9)
streetcar 12041861 30 43 L29 11587000 39 117 11748000
Trolley Coach 2546000 92573633 25f~ 43 1 075~b 3 0 975 2521000
Motor Coach (b) ]8li-~4 849 20 4 3~ 86 10 18106000 39 78 18163000bull I~
f-- ---J Total (b) 33080343 32739000 32432000
CASE II - OFSRATIONS PROPOSED IN APPLICATION NO 15728 Present Fares Proposed Fares
Item Estimatefl 1JIiles(a) As SnownEstimate~- Miles Present FarosEstimate~ Milos Proposed ___-~___------I=n~PDCStaff Exhibit No Col lOx (100 - Col 5) Faros Col llx (100-CQl~
(1) (10) (11) (12)
Stroetcar 6778211 6691000 6 61300O
Trolley Coach 2981376 2949000 2920000
Motor Coach (b) 236629)) 23459 1000 2276 7000
~Total (b) 33422542 33099000 32809000 ill r trl
(a) Based on th~ l ovel of traffic of Septombor 1954 I)
(b) To the estirl8ted milos shown here should bo a~dod 7500 Charter Miles
t-3
- - - - - - -
LOS kJGELES TRANSIT LINES Table 3 Sheet 1 of 3ESTIMATE OF RAIL OPERiTINGifiPENSES
CASE I - UNDER PRESENT OPERATIONS
Company Estfor 12 Mo~ Records Ending
Acct Jan-May 1954 103155 No I t e m Annualized Present Fares
Car Miles Way and Structures
1-24 ill Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 Superintendence 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conducting Transportation 63 Superintendence 64 Conductor Motormen etc 66 Car Service Emp 67 Miscel1 Car Service Exp 70 Car House Empa
Var other Cond Transp Accounts Total
Traffic 79 Superintendence 80 AdvertiSing
Total General
83 Gen Off - Sal and Exp 84 Gen Off Emp - Sal amp Exp 85 Gen Off a SuppJies amp Exps 88 Pensions
(93 Insurance PL amp PO (93 Insurance Workmens Comp (93 Insurance Other
Var Other General Accounts Total
Total Rail Operating Expense
Cents per Car Mile
12573226
$ 722615
$ 79078 759547 146522
$ 985141
$ 18190 174643 482945
23033 $ 698 811
$ 438900 3257666
104525 76608
351696 57240
$ 4286635
$ 6346 18353
$ 24699
$ 83645 123281
35570 4818S8 765019 46840 13664
287090 $ 1836967
$ 8554874
68004cent
ll887OOO
$ 722600
$ 79100 671200 147900
$ 898200
$) 18200 174600 547200
28900 $ 768900
$ 438900 2890900
104500 72200
351700 59600
$ 3917800
$ 6300 18400
$ 24700
$ 78900 123300 35600
456600 750400 ~ 43100 13700
282tl00 $ 1783700
$ 8115900
6827cent
Co
)
-
(1
I
flI
Car Miles Oper middot Exp Case I-B - Applicants Proposed Fares 11748000 $ 8047000 ~ Expenses Variable with Car Miles Wage rates used herein are those whieh
Ac30amp33 565 cent~ile prevailed immediately prior to 6154 59 460 The cost of the wage increase which 64 2432 tecomes fully effective on 12154 is 70 148 50 of total shown separately in Results of
Total 3605 centmile Operation table ~ See Table 5 for amounts under Proposed Fare
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- - - - - ------
LCB ANGELES TRANSIT LINFS Table 3 ESTIMATE OF TROLLEY COACH OPERATING EXPENSES Sheet 2 of 3
CASE I - UNDER PRESENT OPERATIONS
Acct No I t e m
Coach Miles Way and Structures
1-24 All Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 --superintendenoe 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conduoting Transportation 63 Superintendence 64 Operators Wages 70 Car House Employees
Var Other Condo Transp Accounts Total
Traffic 79 Superintendence 80 Advertising
Total General
83 Gen Off - Sal amp Exp 84 85
Gen Off Emp - Sal amp Exp Gen Off Supplies amp Exps
88 Pensions (93 Insurance PL amp PD (93 Insurance Worlanen s Comp (93 Insurance Other
Var Other General Accounts Total
Total Operating Expense
Cents per Mile
Case I-B - Applicants Proposed Fares
Expenses Variable with Coach Miles Acs 30amp33 477centmile
59 3038 64 2342 70 075 50 of total
Total 3232centjmi1e
~ See Table 5 for Amount Under Proposed Fares
Company Estfor 12 ME Recorda Ending Jan-May 1954 103155 I ~
Annualized Present Fares ~
2629188 2546000
$ 26518 $ 27000
$ 32628 $ 32600 125469 121400
11012 9600 $ 169109 $ 163600
$ 3770 $ 3800 35770 35BOO 75017 86000 1
8417 9000 $ 122974 $ 134600
$ 99161 $ 99200 612513 596300
38273 38300 21802 21500
$ 771749 $ 755300
$ 979 $ 1000 3588 3600
$ 4567 $ 4600
$ 15134 $ 12100 22990 23000 5669 5700
87614 83000 165089 97300 I
8516 8000 ~ 3054 3100
49076 48700 $ 357142 $ 280900 6
$1452059 $1366000
5523cent 5365cent
Coach Miles Oper Exp 2521000 $1355400 -- -0
Wage rates used herein are those which prevailed immedshyiately prior to 6154 The cost of the wage i~crease which becomes fully effective on 12154 is shown separately in Results of Operations table
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LOS ANGELES TRANS1 LINS TABLE 3 ESTIMATE OF MOTOR COAOH OPERATING EXPENSE Sheet 3 of 3
CASE I - UNDER PRESENT OPERATIONS
Company Estimate for Records 12 months
Jan - May Ending Acct 1954 103155 No I t e m Annualized Present Fares ~
Coach Miles 1832~158 18314000 Equipment Maintenance amp Gara~ Expense
4110 Supv - Shop and Gar $ 142788 $ 142800 4140-2 Repairs to Rev E~uipment 1097376 848800 4150 Servicing Rev Equipment 308373 307700 4160 Tires - Rev Equipment 123305 125200 Var Other Maint Accounts 151444 147300
Total $1823286 $1571800 Transportation Expense
4210 Supervision of Transp $ 487284 $ 487300 4220 Drivers I vrages 3767184 37589001= 3) bull
4230 522175 523800 )0
4240 Oil for Revenue Equipment 17256 19500 JOJ
Var Other Trans Exp Accounts 60153 58200 Total $4854052 $4847700
Traffic and Advertising 4470 Advertising $ 21593 $ 21600 Var Other Traffic Accounts 7)329 76500
Total $ 94922 $ 98100 Insurance
4510 Salaries and Expenses $ 18818 $ 18800 4520 Insurance PL amp PD 786322 542OOOp 4541 Insurance Workmens Compo 51458 50100p Var Other Insurance Exp 11357 11700 - shy
Fuel for Revenue Equipment _
J Total $ 867955 $ 622600 Administrative and General
4611-2 Gen Officers - Sal amp Exps $ 90806 $ 73500 4613-6 Gen Off Employees - Sal ampExp 138043 137000 4620 Law Expense 12910 16000 4630 Gen Office Supplies amp Exp 51689 44800 4640 Communication Expense 41143 45500 4652 Employees vlelfare 525737 498200 4655 Purchasing amp Stores 120790 120800 Var All Oth~r Adm amp Gen Exp 70090 53900
Total $1051208 $ 989700 Rents 15000 15000
Total Motor Coach Expense $8706423 $8144900 Cents per Mile 47middot50cent 4447cent
Coach Miles Ouer Exp Case I-B - Applicants Proposed Fares 18171 000 $8088900 -----shy
Expennes Variable with Milos Wage rates used herein are those which Ac 4140 463centmile prevailed immediately prior to 6154
4150 084 50 of total The cost of tho wage increase toJhich beshy4160 068 comes fully effective on 12154 is clnwn 4220 2052 separately in Results of Operation table 4230 286 4240 011
Total 2964centmile cent See Table 5 for Amount Under Proposed Fares 20 shy
TABLE 4
IDS ANGELES TRANSIT LUIES AMORTIZATION AND INTEREST ALLOWANCE
PAVING AND REMOVAL OBLIGATIONS - CASES I AND II APPLICATIONS NOS 35601 AND ~5728
A - Obligations from Abandonments Prior to 1954
Yearly Amortization $132000 Interest 16000
Total $148000
B - Obligations from Abandonment of Portions of IV and Rlt Lines (July 25 1954)
Yearly Amortization $ 4000 Interest 2000
Total $ 6000
C - Obligations from Abandonments as Proposed in Application No 35728 (November 1 154)
Yearly Amortization $ 35000 Interest 2JOOO
Total $ 55000
For Case I - Items A + B $154000
For Case II- Items A + B + C $209000
Includes cost of removal of electrical distribution system ($123700) and of substation equipment ($21600)
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LOS ANGELES TRAl~SIT Lli~S
RJBLIC LIABILITY PROPERTY DAl1AGE AND 1l0RIJftElI i S CCMFEi-TSATION EXPENSE illLATED TO SOUln~EbTT MILES Aim R3W-RLS PAS~lWEFS
CASE I - UNDER PRHSENT OPSHATIONS 1947 - 1950 Inc Jan-May Est FOr
Line Ito m 1951 1952 1953 195412 MosEnd No Total Av per Yr Annualizod 10 31 55
1 Lossos paid (n) $ 3890 $ 972 $ 1082 $ 902 $ 580 $ 262 2 Losses ostimato~ (a) 39 10 52 280 634 881 3 Reinsurance costs (a) 282 71 62 69 ____81 65 4 Total Losses_amp Insurance (a) $ 4211 $ 1053 $ 1196 $ 1251 $ 1295 $ 1208
5 Expenses paid (a) $ 1536 $ 384 $ 353 $ 385 $ 242 $ 170 6 Expenses estimated (a) 7 2 _ __ 11) 61 182 24S 7 Total expenses (a) $ 1543 $ middot 386 ~ 363 $ 446 $ 424 $415 8 Total LossesReiils amp Exp (a) $ 5754 $ 1439 1559 $ 1697 1719 $ 1622
(Lina 4- + 7) I 9 Number of claims filed 59991 14998 11588 11104 10246 9228
N
N 10 Vehiclo miles (millions) 153 4 384 356 351 346 336 I
11 Revenue Passon~crs (millions) 10093 2523 1924 1746 1661 1531
12 Loss Per 11i1 lliilos (4 ~ 10) ~27451 $27451 ~33596 $35~641 $37428 $35952 $35000
13 Loss Por i-Hllion Pass (4 11) $ 4172 $ 4172 ~ 6216 ) 7165 ~ 7797 $ 7890 $ 7500 14 Expensos por claim (7 f 9) h
ltfgt 2572 Y 25middot72 i) 3133 $ 4017 4138 $ 4497 $ 45 15 Claims per million miles (9 10) 391 391 326 316 296 275 280
16 Claims per million pass (9 11) 59 59 60 64 62 60 60
Ul p- CD (I)
(a) Thousand of dollars amp8
t-G o ~ H
J N
TABLE 5 LOS ANGELES TRANSIT LUTES Sheet 2 0 f 2
ESTIMATE OF PUBLIC LIABILITY AND PROPERTY DAMAGE AND WOBKMElJ 1 S COMPENSATION EXPENSES
FOR 12-MONTH PERIOD ENDING OCTOBER 31 1955 UNDER CASE I-A AND CASE I-B - PRESENT OPERATIONS ~lITH PRESENT amp PROPOSED FARES
Line 110
Cost Factors 1 Claims per million revenue passengers bull bull bull 2 raquo raquo vehicle miles bull bull bull 3 Expense per claim bull bull 4 Losses per million revenue passengers
raquo raquo vehicle miles bull bull bull bull 5 bull bull
60 280 45
7500 35000
Estimated Expense For PL and PD and Workmens Compensation Insurance
Case I-A Present Fares
6 Number of rovenue passengers (millions) 1395
7 Number of vehicle miles(millions) 3275
A - Basod on Number of Passengers 8 Losses 9 Expense
10 Total
B - Based 11 Losses 12 Expense 13 Total
$1046200 376700
$1422900
on Number of Vehicle Hiles $1146200
412700 $1558900
14 Average of A and B (PL amp PD and Workmen 6 Compo - $1490900
15 Workmens Compensation Insurance 101~200(a) 16 PL and PD Insurance 1389700
Distribution of Total PL amp PD Percent
17 Rail Operations 541 $ 750400 18 Trolloy Coach Operations 7 97300 19 Motor Coach Operations ~ -542000 20 Total 100 $1389700
Case I-B Proposed Fares
1341 3244
$1005700 362100
$1367800
$1135400 408700
$1544100
$1456000 100200 (b)
1355800
$ 732~100 94900
528800 $1355800
(a) Rail=$43lOO Trolley Coach=$8000 and Motor Coach=$50100
(b) Rail=$42 600_ Trolley Coach=$7 ~ 900 and Hotor Coach=$49 (00 _ --- I
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lA3LE 6
LOS ANGELES TRANSIT LINES ESTIHATE 041 OPERAT1NG TAXES
FOR 12 MONTHS ENDING OCTOBER 31 1955 CASE I - PRESENT OPERATIONS
APPLICATION NO 35601
Book Record Case I-A Case I-B L1ne I t e m 12 Months Present Proposed
No End 5-31~ Fares Fares(~ ) -=-----=-(3)~--=--~r(4~)~-(1)
1 City Franchise Taxes $ 473687 $ 434600 ~ 481900
2 Property Taxes-Ad Valorem 457963 435000 435000
3 Fuel and Oil Taxes 360580 337700 335100
4 Motor Vehicle License Taxes 136984 Ib8 900 168900
5 Transportation License 15600 21~00 (3 B of EHlshy
6 payroll Tuxes 265000 262500
Other raxes 7000 70007
Total ~ip 1 603 800
Net after weight fee credit
-24shy
In summary thepropos~dchalges aro - t - ~ ~- shy
(1) Eliminate tokens
(2) Increase single zone fare middot tQ 17 with 6~ increments for each addi tional zone
(3) Increase school single-zono cominUte fara to lO~ with 5cent incroments for each add~ tional zone
Changes in Operation - Case II
In Application No 35728 Los Angeles Transit Lines requests authority
to convert about 40 of its present street car serVice to motor coach service
and at the same time to convert ono line nbw operated by motor coach to trolley
coach Following is a list of the street car iines ~hich the company proposes
toconvort to motor coach
No and Name of Line Amount to be Converted
No 5 - Eagle Rock and Hawthorne Entire Line
No7 - So Broadway and Civic Center n II
No8 - W54th St and No Main st II No9 - W4Bth St-Lincoln Park In part From W end of
Line at Crenshaw Blvd and 48th St to Broadway and 11th St
FlI_ S Vermont and Union Station Entire Line
IIW _ W Washington and Highland Park In part From Broadway and Pa saQena Ave to N end of the line at Y middot)l~Y lv and Avenue 50
The motor coach line to be converted to trolley coach is
No and NRme of Line Amount to be Converted
Entire LineNo 41 - Alvarado Street
Passengers and Passenger Revenuo- Case rand Case middotII
Adult Passengers and Revenue
Because of the method of fare collection the company does not main-
t[in records of passengers carried HowErVer it does maintain a daily record
of cash fares and token fares This revenue informationi s used herein in
conjunction with a traffic check which ltlas m~de to determine the n~ber of
passengers by zones The traffic check was conducted in 1950 in connection
with Application No 32335 and the resulting percentage distribution by zones
of adult passengers is sho1rm in Column 1 of the following tabulation The
column to the right shows the percentage distribution used in this reportwhich
has been adjusted to reflect variation in diminution by zones and in the trea tshy
ment of certain passengers handled to Hollywood Park
Percent of Adult Passengers
As Used in As Used in ARglication )2225 This Rill2ort
l-Zono 674 666 2-Zonc 286 293 3-Zone 37 3~5
4-Zone 03 15
1000 10000
The following tabulation shows the fares in effect from the lattor
pc~rt of 1950 when the present pattern was established to date The first
column shows tho actua l adult I-Zone fare while the second column shows the
computed average adult fare for all zones Average Adult Fere
Period ~ Adult I-Zone Fare All Zones
12-10-50 to 1-23-52 lOp 1182l 1-24-52 to 11-2-52 15~ or 225p 14bull58
11-3-52 to 11-29~53 15~ or 340cent 1554
11-30-53 to Date 15~ or 7$100 1655
This average f are is estimated at 1664~ for the rate year under present fares because of the declining use of tokens
- 5 shy
The trend of total adult pa~s~ngers is shown in Chart 2 The
estimated adult revenue passengers for the twelve-month period ending ~
October 311955 under prosent fares are135363000 andare shown in the
chart at m1dpqint of the rate year Token use under present fares was
estimated to be 35 in each of the four zones The diminution or loss of
passengers due to increased fares was estimated to be 25 of the percentage
incrbase in the fare involved The estimated 135363000 adult passengers
developed in Chart 2 are also shown in Table 1 Coi1lffiIl 5 Line 13 and flrEl
distributed to the various zones on the basis of the percentages shown in
the above tabulation
Hollywood Park passengers are esti~ated to be 200000 annually
and the fare for these passengers is 10~ Although these Hollylood Park
passeng~rs may originate in the dOlntown area they become in essence new
passengers when they board the Hollywood Park Line since they have no transshy
fer privileges Adult passengers and revenue (shown in detail in Table 1)
for the twelve months ending October 31 1955 are summarized as follows
Passengers Revenue
Presont Fares 135563000 $22513000
Applicants Proposed Fares 130039000 25037000
Following is an estimate of school passengers and revenue and
U s Postal employee passengers and revenue
School Passengers Revenue
Case I-A Present Fares 3358000 $319000
Case I-B Proposed Fares 3245000 351000
6 shy
U S Post Office
Pas senger s Revenue
Case I-A Present Fares 616000 $ middot88000
Caso r~B Proposed Fares 616000 105000
Token Adjustment
It is estimated that based upon tho present experience of applishy
cant three tokens out of 1000 tokens sold or 0356middot will never be redeemed
This amount will be considered as an added revenue and is estimated at
$20000 under present fares
Other Revenue
From such sources as rent interest on franchise bonds charter
advertising and miscellaneous there is an estimat~d rovenue of $187000
under all cases
Revenue under Case II - Proposed Motor Coach Substitution (Application No 35728)
UnderCas8s II-A and II-B proposed motor coach substitution the
estimated rovenue will be the same as in Cases I-A and I-B respectively
Mileage
The estimated mileage to be operated during the rate year is
shOllTn in Table 2 This estimated mileage is based upon a study by
Mr William F Hibbard Associate Transportation Engineer of the
Commissions staff and is shown as a separate exhibit in this matter
- 7 shy
Operating and Maintenance Expenses -- Case I
Estimates of operating and maintenance expenses are shown in
Table 3
General
Unless otherwise stated in the following paragraphs operating
and maintenance expenses are based on experience and conditions currently
prevailing In estimating operating and maintenance expenses it is
estimated that 100 new 48-passenger diesel coaches will start operating
at the beginning of the rate year replacing older coaches now in
operation These new coaches will slightly increase the fleet cost of
tires and substantially decrease the cost of Account No 4140 - Maintenance
Expense
Wages All wages are included in the detailed estimates
shown in Table 3 at the level prevailing immediately
prior to ~ 1 1954
Wage Increase The wage increase which becomes fully
effective on December 1 1954 is sh~m separately
on Line 12 in Table 10 Results of Operation
Fuel The cost of fuel is based upon the current level
of costs including an ircrease in the Sales Tax
on diesel of 05 effective July 1 1954 for
the City of Los Angeles
Tires The unit cost of tires is based on that prevailing
under contract for the period July 1 to Decernber-31
1954 The estimate of the cost of tires reflects the
- 8 shy
~ - - -- -- - - shy
estimated higher unit middot tire cost per mile for the
loa ne coaches which are to be put in operation at
the beginning of the rate year
Power The cost of power reflects the increase recently
granted to Southern California Edison Company by
this Commission
Public Liability and Property Damage Insurance and Workmens Compensation Insurance Coverage for these types
of insurance is carried with Transit Casualty
Company the stock of which is owned by the following
affiliated or subsidiary companies
Percent of Common Stock Owned
National City Lines 30 Los Angeles Transit Lines 24 St Louis Public Service Company 46
Total middot 100
From 1953 Annual Report to the Insurance Department State of California The present premium rate charged by Transit Casualty Company to applicant is 7 of passenger revenue In this report as in pre~ous reports the estimate of the Commissions staff has been predicated on unit costs related to the number of passengers carried and tho vehicle miles operated The estimate for Case I is shown in Table 5
Operating Expenses - Case II
Case II - Operating expenses are shown in detail in Table 11
and are based on operations of Casc I adjusted to reflect the estimated
decrease in rail expenses due to the abandOnroent of lItrEiet car operations
as proposed in Application No 35728 the increase in motor coach expenses
re~uired by the substitution of motor coach service for street car service
and the increase in trolley coach expense due to the conversion of Line
No 41 from motor coach operation to trolley coach operation with a
corresponding decrease in motor coach expenses
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Operating Taxes - Case I
Franchise Taxes cmd Business Licenses
Under Case I Present Operationafrnnchise taxes to the City of
Los Angeles were determined by applying current tax rates to estimated
revenues
Ad Vnlore~ Taxes
The estimate for ad valorem taxes under Case I is based on an
assessinent of $6496250 and a tax rate of $67402
Fuel Taxes
Fuel taxes are based on the following per gallon rntes of Federal
and State Taxes
illA Cents ner Ga11Qn Effectiye Dates
Diesel Federal 11-1-54 to 3-31-55 12i ~ 4-1-55 to 10-31-55
State 7 11-1-54 to 6-30-55 ~ 2 ~ 7-1-55 to 10-31-55
Gasoline Federal 2 ~1-1-54 to 3-31-55 11
2 ~ 4-1-55 to 10-31-55
State 6 ~ 11-1-54 to 6-30-55 5i cent 7-1-55 to 10-31-55
Motor Vehicle Licenses
The estinate for motor vehic10 licenses is based on the registrashy
tion weight and vehicle license fees Which will be in effect during 1955
under equipmontrequiremonts as sot forth in the report by Public Utilities
Commission Associate Engineer Wil1in~ F Hibbard
- 10 shy
Trapsportati CD Ii CADse Tax
This license tax is assessed by the Board cf Equalization and
represents 3~ of the gross revenue derived from operations in non-incorporated
areas by motor and trolley coaches The estimate is based on
curront tax rates applied to estimated revenues
Pavroll Taxes
Tho ratos in effect aro 2 for Social s~curity taxos and 03 for
Federal Unemployment Insurance Paymonts to tho State Unemployment funds
will remain at zero as a sufficient accumulation of funds is presently
on hand It is estimated that 94 of applicants total payroll will be
subject to Social Security Tax undor the increased coverago offective
January 1 1955 and that 100 of the employees are subject to FUI taxes
at $3000 per year
Other Taxes
Other taxos include operatorsl licenses Foderal transportation
ta~ manufacturers excise taxes and other miscellnneous taxes The
estimate is based on actwd experience for the yeor ending May 31 1954
Income Taxes
State Corpor8tion Franchise Taxes have been computed at the
current rate of 4 Federal Income Taxes have been computed on tho basis
of a change in rate effective April 1 1955 On this basis the normal
tax 0 f 30 was used for five months of the rata year and 25 for soven
months of the rate year Tho surtax of 22 remains constant throughout
the year In calculating income taxes in both Cnse I and CasarI an
interest credit of $100300 was used
- 11 shy
Rate Base and Depreciation Expense
In General
In accnrdance wi th current Cornmi ssion practice of treating all
property en a remaining life basis the Commission Staff has made an
analysis of Applicont1s property As 0 rosult as of January 1 1954
1 Motor coaches of the series 6200 6300 6600 6700 6800
and 6900 (404 coaches) were put on a total life basis of
12 years This is considered reasonable in view of the
attained age and the condition of the fleet
2 The annual accrual of the Genoral Office Building (Acct 522)
was adjusted to reflect a totel life of 50 years
3 Buildings in Accounts 523 and 524 were assigned a remaining
life of 24 years with depreciation reserve adjusted to reflect
age-life condition
Under both Cpses I and II 100 nel motor coaches have been included
in the rate base as of November 1 1954 tho beginning of the rate ye~r
Other Lpnd (Acct bull 503) and Rights of Way (Acct 502) hewe been
adjusted to reflect estimated original cost
Under Cese I
150 motor coaches of the 6000 and 6100 series (including current
work orders for rebuilding) have boen deleted due to the inclusion of the
100 new coaches as well as tc conform to the equipment roquirements set forth in
Staff Witness Hibbards Exhibit ith 10 f ~r spares
All property on group plan depreciation reflects the current
4 rate of accrual with nermal additions and retiroMents tken into considerashy
tion
The 40 P C C crrs on uni t plan depreCiation wore extended as
of Innuary 1 1954 to a total life of 25 years
12 shy
Under Case II
As evidenced by correspondenco betoJeen the Commission and
Applicant and the request for changes in accounting practices as outlined
in a letter from the Applicant to the Commission under date of April 291954
it is assumed that applicant intends to completely convert to motor coach
operation by the end of 1965 The Rate Base under Case II assumes that all
property relnted to the rail and trolley coach oper2tion ltlill be fully
depreciated by that time This would include all rel~ted items of property
hitherto considered non-dopreciable those rel~ted ~o the present proposed
conversion havo been charged to the group plan depreciation reserve as of
November I 1954 those remaining 2xe depreciated over ~ 12 year period
boginning January 1 1954
150 coaches of the 6000 and 6100 series have been included in order
to satisfy oquipment requirements as outlined by Staff litness Hibbards 1
Exhibit No The work orders for rebuilding 83 of those coachos have
been put on a 3 year lifo (Soc Chart 5)
In conjunction wi th the rate base presentAtion there are shown in
Chart ) pictures and data of the streetcars and trolley coach equipment as
of September 1 1954 Camp~rt 4 shows ~ictures and data of motor coach equipshy
mont as of September I 1954
Amortization and Interest Allowance
Amortization and Interest allowance f or abandcnment oblig~tionsunder
Cases I and II is sho~m in Table 4 The estimates ccntained therein refloct
an income tax credit on the total amount of the obligations The estimate
under Case I is fer obligations incurred prior to 1954 and oblig~tionsconcerned
nV ttwith changos on tho ruld tTRtl lines made effective JUly 25 1954 Under
- 13 shy
C~se II is added the estin~ted obligation in connecticn with the abandonment
nsprop0sed in Application No 35728
Results of Operatirn
Ou-so I Relbvant infr-rr1pticn sh0vm in the f0regcing text ancl
in the tables is summarized in Table 10 - Estimated
Results of Operation - Case I and from this informashy
tion a rate of return and operating ratios are
calculated under Present and Proposed Fares
Case II Using the basic inf0rmation as used in Table 10 in
c0 njunction with the estimate of operating expenses
for Caso II as shown in Table 11 the rates of
return and operating ratins under Case II are developed
in Table 12 - Estimated Results of Operation - Case II
- 14 shy
LO S ANGELES TRANSIT LINES
TREN 0 OF WEEKLY REVENUE- PASS ENGER5 (E)(CLU SIVE OF POSTAL EMPLOYEES AND RIDERS ON SCHOOL FARES)
FEBRUARY 1952 TOJULY 1954 AND
ESTIMATE FOR 12 MONTHS ENDING OCT 31 1955
~ 3middot5 W w ~
a w 0
_ I cJ)
a 30 uJ 19 Z UJ cJ) cJ)
laquo 0
IL 0 25
([)
z 0 J J
~
bull ~ I
l T
-
- -
ltI-N
- 2
- wr-
u
- 2
--
w
- u
A I
1 ( A A I
j
~ J r 1f
I a V J 1 fv V V ~J
V 1IV I 1 II I
I I Jr 0
~
l) - 0 (c
rlt1
gt bull r gt 0 10 z I z ~
I I I w iw
I
I I EST I~ATE FOR 12 foONTHS ENDING OCTOBER 31 1955 w I UNDER PRpoundSENT FARES-
I w
u A - PASSENGERS PER WEEK bullbullbullbullbullbullbullbullbullbullbullbull 2 596 000
u B - PASSENGERS PER yEAR bullbullbullbullbullbullbullbullbullbull 135 363 000
- Z Ii
w I
w I
lt I
u u i
it i--0 w
~ - -lt 0-H gt- =-1--1 a 0
-Y
VI
I
I )
T ~20
JAN f EBMAR APRoMAY J UN JUL AUG SEPOCTNOV DEC JANFEB MARAP R MAY JUNJULAUG SE P OCT NOVmCJANfEB MARAPRMAY JUN JUL AUG S EP OCTNOV DE C JAN FEB MAR APR IoiIAY JU N gt- c-+shy
rv1952 953 954 1955 Wl
LOS ANGELES TRANSIT LINES ESTIMATE OF REVEruE PASSENGERS lID PASSENGER REVENUE
FOR 12 MONTHS ENDInG OCTOBER 31 1955 CASE I AND CASE II APPLICATION NO 15601 AND NO 35728
Present Fares Applicants Proposed Fares Est
Percent of Dlmin- PassenshyLlne of Total Fare Zone Passengera Revenue Fare utlon cera Revenue -=-----Ho-- Item Orldnalt Adjusted (Cents) Paus i cent (Cents) ~ cent cent
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
Adul t Passengers
lOne-Zone 15 65 58599 $ 8790 17 333 56648 $ 9630 2 1427 35 31553 4507 17 475 )0054 5109 3 666 666 1475 100 90152 $13297 86702 $14739
4 Two-Zone 20 65 25780 $ 5156 23 3middot75 24813 $ 5707 5 1927 ~ 13881 2677 ~ 481 13212 30)9 6 293 293 19751 100 39661 $ 783) 38026 $ 8746
7 Three-Zone 25 65 3476 $ 869 29 400 3337 $ 968 a-- 8 2427 22 1871 454 29 485 1 180 516 I 9 38 395 2475 100 5)47 $ 1323 511 $ 1484
10 Four-~one )0 65 1)2 $ 39 35 417 126 $ 44shy11 2927 35 71 21 35 488 68 24 12 ~ ----l5 29 75f 100 20) $ 60 - 194 $ 68 13 Sub-Total 1000 1000 ~ 135363 $22513 1300)9 $25037 14 Holly Park 10 200 $ 20 10 200 $ 20 15 Total Adult 13556) $225)) 130239 $25057
16 School 9 2797 $ 252 10 278 2719 $ 272 17 School 12 561 67 15 625 526 79 18 Total School )358 $ )19 )245 $ 351 19 Post Office 1427 616 $ B8 17 616 $ 105 20 Grand Total 139537 $22940 1)4100 $25513
cent (000) Omi tted ~ 1F Weighted Average Fare ~ If See Chart 2 + + As deter~ined by traffic checks and used in previous Staff reports
CHART 3
rr LOS AtJGELES
TRANSIT LINES
STREET CAR AN 0 TROLLEY COAe H
EQUIPMENT AS OF
H4 OR K4 OPEN END WOODEN SEATS H3 CLOSED ENDLEATHER S EATS SEPTEMB E R f 1954
JIshy
OLDER T YPE OF PCC CAR NE WER TYPE OF PCC CAR
8000 SERIES TROLLEY COACH 9000 SERIES TROLLEY COACH 9100 S ERI ES TROLLEY COACH
STREET CARS TROLLEY COACHES
ALL H3 H4 K4 PCC OTHER TOTAL 8000 9000
SEATS 48 48 48 12 5-61 SEATS VARIOU 44 4540-28 SEATS
EQU IPME NT ASSIGNMENTS UNDER PRESENT CoMPANY BASIS EFFECTIVE SEPTEMBER 12
9100
46 TOTAL
SCHEDULED SPARES
TOTAL ASSIGNED UNASSIGNED
TOTAL OWNED
SCHEDULED
SPARES
TOTAL ASSIGNED UNASSIGNED
TOTAL OWNE D
354 22 57 5
411 2 37 101 13
60 165 37 512 40 EQUIP MENT RE QUIREMENTS PRESENT SERVICE FOR RATE YEAR)
354 36
390 122 512
34 6
40 30
81 16
81 9
90 20
110 EQUIPMENT REQUIREMENTS WITH SERVICE AS P ROPOSED IN
ApPLICATIO N 28 (FOR RATE YEAR
SCHEDULED 20431 23 150 93 4 2 21SPARES 1015
TOTAL ASSIGNED 165 22525 10335 UNASSIGNED - 7
TOTAL RETAINED 225 11025 16535 To BE RETIRED 0190 2 7 37 TOTAL Now OWNED 60 110512 215 165 3735
-lE- ESTI MA TED BY P U C STAFF E
2 r
C
-
6600 SER IE S 6700 AND 6900 SER IE S 6800 SER I ES
L I NE 6200 No TE~ 5000 6000 yf 6 100 yf 6300 6400 6600
MACK G M e G M e G M e G MC G M C I i~IA K( amp UODEl NUMBER C-45 -CT TD-4502 rn -4505 TO- 4506 TDH-5103 TOH shy 36 1 2 YE AR BUilT l~ 1940 1941 1945 1951 1947 3 DATE I N SERV I CE 7 -40 1-42 7 - 45 7 - 51 7 -47 4 NUMBER O F CoACHES 50 55 95 200 25 57 5 PU RCHAS ED NEW OR US ED N N
6 S EATI NG CAPAC IT Y 45 45 45 51 36 45 40
~ LE NG TH - OUT S I DE 3~ -0 3~ - 0 37 -0 3~ -6 30 - 6 3~ - 0 3~ -0 WI DTH - OU T S IDE -Oil _-ttl 8 -0 -611 8 - 2 _OM I - 0
9 HE I CHT - OU TS I DE 9 -6 9 shy 5t 9 -6 9 t 4t ll 9 - 2 9 0 9 -6 10 A I SL( HEADROOM 76 77 78 78 76shy 8 76
11 A ISLE WI DTH 19 2 1 26 22 22 20 12 TY PE O f DR I V( HYD HYD HYD HYO HYD HYD
13 BRA KE HORSE POWER amp FUE L 165io) 165( 0) 165(0) 110(0) 165(0) 165(0) 14 Bo DY f RAME MA TE R I AL AL AL AL AL AL NOT G I VE N 15 Bo DY PANEL ~1ATE R I AL AL AL AL AL AL NO T GI VEN
16 ROO F MATER I AL AL AL amp ST AL AL amp ST AL amp ST NO T G I VEN
~ ~ - AT DCC CMBER 3 1 1953shy14 26 15298AV ER AG E INVE ST PER CoACH $ ~ 21962 $ 13 992 17 60 14 209
19 INVESHIENT 1 354 9~ 3 059 506 549 044 7 97 5~ 2 lt164 650 99 466 10 000 509 20 RE SE RV E 1340 6 2 462 923 135951 503 6 1369 1 02 90 896 7 147 497
21 REM AIN ING VALUE (I NCL SALV) 14 250 596 583 413 093 293 869 1 095 548 8 570 2853 012 22 REMA I N I NG LIF E lOYR BAS I S 22 MO 90 MO 43 MO 52 MO 9 MO
23 REMAIN I NG L IFE 12YR BAS I 46 MO 90 MO 67 MO 76 MO 33 MO
yf THC COS T OF REBU IL DING 102 CoACHES OF THC 6000 AND 6 100 SE RIE S NOT I NCLUDE D HEREI N (SCE NEXT PACE)
1941 AN D 1942 MA T ER I AL S WE RE SuBJ ECT TO PR I OR I T ( S AND THEREFOR E STEEL WAS USE D IN PLACE OF
ALUMI NUM FO R BO DY FR AMES PAN EL S AND ROO FS I N SO ME COACHE S O F TH E TD- 4505 SERI ES
G - GASOl I NC D - D I CSE L AL - ALUM I NU M ST - Srr CL HYD - HYDRAUL I C
lt~i
~~4
CHART 4
LOS ANGELES TRANSIT LINES
MOTOR COACH EQUIPMENT
AS OF
SEPTEMB ER 1954IS_T 6000 SER I ES
6200 AND 6300 SER I ES
6
5 CHART
1~A~PLE OF THE DAMAGE TO BODY PANE LS M D RI VET ED JOINTS
2 - COACH WITH ALL BODY PANE LS Il l NDO V FR M1ES M~) SOIIE BO DY BRAC IN G REMOVED
l
LOS ANGELES TRANSIT LINES
PROGRAM OF
REBUILDING MOTOR COACHES
OF THE
6000 AND 6100 SERlES
j - PAR TI AL Re STO RA TI ON SODY PA NE LS Ix I I I )SI I ELD FRA Il E REPLA CED AFT ER kt C~ D I T I ON 116
I+ - AL L BO DY PANE LS AND S I DE W I~ DO J FRAhi ES RE shyPLACED AND ~ ESTO~ED
5 -INT ER IOR SHOW IN G CO MPLET E RE MOVAL OF SEATS AND OTHE R AC COUTERM ENTS REPLACED OR RECOND ITIO NED
6 -COMP LETE D I NTER l OR - t EIJ FLOO R
COV ER IN G WIT H S EAT CUSH IONS ETC
7 - COMP LET ED EXTER l OR COACH REPAI NTED AND READY FOR SERV I CE
I N 195 1 Los AN GELES T RANS IT LINES I NAUGURA TED A PROGRAM OF REBU IL D I NG GMC CoACHES OF THE
6 0 00 (BU ILT IN 1940) AND 61 00 ( BU ILT IN 1941) SER IE S A s OF JU LY 1954 62 COACH ES HAD BEE N
REBUILT WITH 40 ST ILL ON WORK ORDERS BUT IN PROCeSS THE CURRENT EST IM AT ED CO ST OF THIS
P ROGRMil I S AN AV ERAGE OF ~3500 PER COACH THE P U C S TAF F EST IMA TES THE LIF E OF TH ES E
COACH ES TO BE AN ADDIT IO NAL THR EE YEAR S FRO M DATE OF COMP LETI ON COS TS OF REB UILDING AR E
SHOWN I N THE RATE BAS E RE LATIV E TO THE APPROP RI ATE WORK ORDER AN D THEREFORE ARE NOT INCi UDEu
IN THE I NV ESH IENT FOR 60)0 AND 6100 S ERI ES COACH ES SHOWN ON CHAR T No 4
LOS ANGELES TRANSIT LINES SSTIMATED RATE BASE AND DEPRECHTION EXPENSE
12 I~ONTHS ENDING OCTOBSR 31 1955 CISE I - VnTH PRY-SENT METHOD OF SERTICE - APPLICATION NO 35601
Gum October 31 1954 As of October 31 1955
Line
No Item (1)
Iccnunt Number Invcstment
(2)
(3) Reserve
(4)
Inve stmen t Less
Reserve (5)
Remaining
Life (6)
In
Inve s tIDen t Less
vestment Reserve Reserve (7) (8) (9)
Depreciation Expense RAte YeAr
(10) LAND
1 2
Rights of VVAY Other Lmd
502 503
S 426974 1931112
$ 426974 1931112
$ middot 426974 1931112
$ 426974 $ 1931 112
EQUIP~NT ONl~ITDEPRECI~TION
3 Auto Tr011ey pcc53033Jf~034288 $ 7167640 $ 6866648 V3rious $14034288 $ 8125353 $ 5908935 $ 957713
PROPERTY ON GROUP DEPRECIATIJN OverheAQs
4 Engineering 501 $ 44651 $ 44651 OrgAnizAtiorfshy 546 601749 601749~ 5
6 Interest 547 middot 916884 916884 7 Gnding 504 1117084 1118084 8 All Other 505-545 27021634 4 Base 27141634 _____ _________ 9 Suttotal
(Lines 4 to 8) $29702002 $22441215 ~ 7260787 $29823002 ~23516286 $ 6306716 $1081071_
10 Tr)W(Lines 123 amp 9) ~46094376 $29608855 ~16485521 $46215376 $]1641639 $14573737 $2038784
11 RATE BASE Use - $2039000 12 Avenge 0f $16485521amp ~1+573 737 $15530000 13 Work in Progress 100000 14 M1terials amp Supplies 735000 15 Bond Deposit - City Fnnchise 411000 16 Deposit for PL Insurance 150000
17 Totil RAte BAse $16926000 8 t ~
-It- rhjor PArt of Acct 546 is Supervisinn --J
-----
LOS ANGELES TRI-NSIT LINES ESTThiIiTED Ri1TE BASE AND DEPRECllTION EXPENSE
12 NiONTHS ENDING OCTOBER 31 1955 CIlSE II - SSUMING MOTOR COACH SUBSTITUTION ON CERTHN RAIL LINES AS PROPOSED m iiPPLICilTION NO 35728
---- --------------- As f Oct)ber 31 195amp As of Oct0ber 31 1955 Inve sUn8nt Investment IBpreciaticn
Line Account Le ss REffiainin~ Less ExpensE No Item Number Inve-stmcnt ReS8riTe Reserve Life Investment Reserve ~ Reserve Rate Yeqr
(T) T2) 0) (Ii) (5) (6) (7) (8) (9) (10)
Ll~ND
1 Other LAnd 503 ~ 1925510 $ Ci 1925510 ~ 1925510 $ 1925510
EQUIP1A~NT ON UNIT DEPRECIATION 2 itutoIrol1eyPCC 5))3338 $16392563 $ 9323673 $ 7068890 Various $16392563 ~10391985 $ 6000578 $1068312
BUILDJNGS 3 General Office-~ 522 $ 916255 $ 563016 ~ 353239 1917 Yrs$ 916255 $ 581446 $ 334809 $ 18430 4 Shops Grgs Admin 523 amp524 2733772 1013500 1720272 2320 Yrs 2733772 1087633 1646139 74133 5 Subtotal (Lines 3 amp4) 3650027 ~ 1576516 gt 2073511 igt 3650027 11669079 ~ 1980948) 92563
~ PROPERTY ON GROUP DEPRECIATION Overheaas
6 Engineering 501) 7 Organizqtion 5~6) tt 1563178 ~ 1563178 8 Interest 547) 9 Grlding 504)
10 Righ ts of Vgy 502 117922 117922 11 All Other 505-5h5 15 651 31 7 15 771 31 7 ~---7-=-~-- lr-r-----=~ -x---r---~ 12 Subtotal (Lines 6 to 11) )17332417 $11343350 ~ 5989067 1117 Yramp$17452417 ~11833307 ~ 5619110 ~ 495957
13 Totql(Lines 125 amp 12) ~39300517 822243539 ~17056978 839420517 023894371 015526146 01656832
14 RATE BASE Use ~1657OOO 15 Avcr~ge of ~1705697B qnd )15526146 016292000 16 Nwk in Progre s s 100000 Am)unts sh)wn include lpplic3ble -werheqds fr)ll 17 Haterills amp Supplies 735000 Accnunts 546 amp 541 18 Bond Deposit - City Frqnchisc 411000 cent Investment ~d depreciation reserve assumes all 19 Deposit for PL Insurqnce 150000 retirements for the lines to be cmiddotmvcrted 1--3
20 Use Vqlue - Fully Depreciated CJtches 1)2000 ~re m~de 3S ) f November 1 1954 qnd that the ~ full unnunt middotf r e tirements qre charged to the EJ
21 Tot-l R1te Blse ~17840000 reserve co
10S ANG3LSS TRANSIT LI~S
INVESTWNT DSPRCIATICN R~SsRVS AND EXPSNS~ FOR ~QUIPMLNT ON UNIT PLAN DEPR3CHTION
CASES I AND II APPLICATIONS NO 35601 AND 35728
As of Oct0ber 31 ffi4 As of October 31 1955 Line NoTotal Investment fnvestment Depre No Item of Life Investment Reserve Less Investment Reserve Less Expense
Units Reserve Reserve Rate Year (1) (2) (J) 4) - ---(~ CD) en -- --8)----- -(9j- (10)
For Case I 1 Motor Coach Groups
62006300 66-6900 hOh 12 Yrs$6421159 $4728599 ~1692560 ~ 6421159 $ 500 1011 ~1330lh8 $ 362412 2 5000 6hoo 75 10 II 1486387 77~175 711212 1h86387 92h851 561536 149676 3 Coaches on order 100 10 II 2285400 2285400 2285400 2265J~0 2058860 226540
II
I 5 Automobiles 51 V3r 99485 50916 h8569 99485 66540 329h5 15624 ~ 6 Trucks amp Service Cars 56 II 280584 250572 30012 280584 265813 lh771 15241 I 7 Misc( Fare BoxesMotors) 170193 115191 55002 170193 122271 47922 7080
h Trolley Coaches 110 15 2108h09 908560 1199849 2108h09 1Oh6116 1062293 137556
8 Total of Lines 1 to 7 ~12851617 ~~6829013 ~02260h ~12i351617 ~ 77h3lh2 $5108475 $ 914129
9 PCC Rail Cars 40 25 rsJ~ 1182671 ) 338627 gt 84h04h 1182671 ~ 382211 ~ 800460 $ h3581~
10 Case I - Line 8 + Line 9 $14034288 $7167640 $6866648 ~14034288 $ 8125353 t5908935 $ 957713
For Case II
11 6000 amp 6100 Series MC 150 FD ~ 2092963 $2070463 ~ 22500 $ 2092963 $ 2070463 $ 22500 12 Work orders on 6000s
amp 6100 s 3 Yrs 265312 61860 203452 265312 144007 121305 $ 82147 13 PCC Rail Cars 401717 1182671 362 337__ ~~~ 334 1182671 43473 ___748298 72036
14 Case II - Lines 8 + 11+ 12+ 13 ~16392563 9323673 n068890 $16392563 ttl0391985 ~6ooo578 ~1068312
t-3
125 other PCC Cars are in Group Depreciation Schedule G ~
Note579 motor coaches under Case I and 729 under Case II D
LOS AlJGELES TRANSIT LnlES TABLE 10 ESTIMATE]) RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD E1TDUTG OCTOBER 31 1955 CASE I - UNDER PRESENT OPERATIONS
12 Months Jan-June
Line No Item
Tab1e Ending or May 31 1954 Page Fe fer
(2)
Book Record
(])
1954 Annualized
Book Record
(4)
Case I-A Present
Fares (5 )
Case I-B Applicant l s
Proposed Fares
(6)
1 Vehicle Miles T2 34036066 33569520 32747000 32440000
Revenue 2 3 4 5
Passenger Revenue Unredeemed Tokens Other Revenue Total
T1 P7 P7
$24849150
122402 $25044557
$24517866
183810 $24 701676
$22940000 $25513000 20000
1821 000 182 000 $23147000 $25700000
6 7 8
Operating Expenses Rail Trolley Coach Motor Coach
T3 T3 T3
$ 8493744 1442232 8622956
$ 8575232 1451430 8 n6470
$ 8115900 $ 8047000 1366000 1355400 8144200 8088900
9 10 11 12 13
Sub-Total Depreciation Operating Taxes Wage Increase Total
T7 T6
18563932 2176608 1676358
$22416898
18743132 2185804 1760600
$22689536
17626800 17491300~ 2039000 2039000 1663800 1711700
439800 436500 $21769400 $21678500
14 Operating Income $ 2627659 $ 20J2JJQ $ 1377600 $ 4021500 15 Other Inc amp Inc Deduct 21258 (9328)
16 Net Inc Before IncTaxes 2635217 2002742 1377600 4021500 I 17 Income Taxes (St ampFe~) 1302758 1026568 647500 1 999 000 18 Net Operating Income 1332459 976174 730100 2022 500 i 19 Allowance T4 112216 80752 1541000 1541000 20 Net Income $ 1220243 $ 895422 $576100 $ 1868500
21 Rate Base T7 $17393000 $16727000 $16926000 $16926000 22 Rate of Return 70~ 535 340 1104
Operating Ratio 23 Before Income Taxes 9405 8435 24 After Inc Taxes ampAllow 9751 927)
Not Applicable
Computed by PUC Staff Allowance for interest and amortization of abandoned property (Red ]figure)
- 31 shy
IDS ill~GElES TRANSIT LINES ESTIMATE OF OPERATllIG EX-degENSES JuID TAXES
FOR 12 f10NTHS ENDING OCTOBER 31 1955 CASE II - KOTOR COACH Sl~STITUTION - j~PLrCATION NO 35728
Table or Line Page Hotor Trolley
~To Item Reference Streetcar Coach Coach Total
l 2 3
4
I S
rv 6VJ
I 7 8 9
10 ll 12 13 Ih 15 16
17
13
(ll- -- shy
Vehicle Miles Case I - Present Operation Case II - Proposed Operation
Increase in i1iles
Opere amp I1aint Expense - Case I
Changes in Expense Due to Conversion Way and Structures Substation Operation Rail Crossing Protection Vehicle Maintenance Servicing of Vehicles Tires - Hotor Coach Equipment Operators vJages Fuel Oil or Power 21 amp PD Insurance ~Jorkmen I s Compensation Insurance Training Drivers for Conversion
Total Increase in Expense
Oper amp i1aint Expense - Case II (Line h +
Operating Taxes - Case II
(Red Figure)
(Z)
T2 T2
T3
Line 16)
D)
11887000 6691000
(5196000)
~ 8115900
t (11500) (42200) (55000)
(270900) (76900)
(1232900) (219800)
(liT shy
18314000 23h67000 5153000
amp 314~900
~
355000 h3300 32500
1154300 153000
-C5) (6)
2546000 32747000 2949000 33107000
403000 360000
S 1366000 ~gt 17 626800
If (144500) 1 ~ v$ ltW (42 200 ) - bull (55 000 ) 7HmiddotVj
19200 103300 M~ f~
3000 ( 30600) A N- i
32500 94400 15800 14600 (52206)
(1l1100) ~ [ (1200) Glh
30000 ~i
p (258200)
$17368600 r3
c~ 1786600 cr ill
I- CD
I- i-
TABLE 12
LOS ANGELES TRANSIT LINES ESTIMATED RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD ENDING OCTOBER 11 1955 CASE II - MOTOR COACH SUBSTITUTION - APPLICATION NO 15728
Table Case II-A Case II-B Line Item Refer- Present Proposed
Nos i FSles Faresect~nce
( 1) (2) (3) ( 4)
1 Vehicles Miles T 2 33107000 32817000
2 Operating Revenue T 10 $23147000 $25700000
O~erating E~ense
3 Operating and Maintenance Tll $17368600 $17234900 4 Depreciation T 8 1657000 1657000 5 Operating Taxes Tll 1786000 1837800 6 Wage Increase 434ZQQ 431 lt)00
Total $21246300 $211612007
8 Operating Income $ 1900700 $ 4538800 Other Inc amp Inc Deductions it 119
10 Net Income Before Income Taxes $ 1900700 $ 4538800 11 Income Taxes (State amp Federal) 214 200 2262 400 12 Net Operating Income $ 985800 $ 2275400 13 Allowance T 4 ~ 2090QO ~ 20200Q 14 Net Income $ 776800 $ 2066400
15 Rate Base T 8 $17840000 $17840000 16 Rate of Return 435 1158
012erating Ratio 17 Before Income Taxes 9179 8234 18 After Income Taxes amp Allowance 9664 9196
Not Appli cable
Allowance for interest and amortization related to streetcar abandonment of the past and for abandonmcnts proposed in Application No 35728
-33shy
LOS ANGELES TRANSIT Ln~S ESTH1ATE OF HILES TO i3LJ OERATEJJ FOR THE TlJ7IVE HONTHS-ENDING OCTOBER 31 1 q55
A UNDJilR PRESENT OPERATIONS B WITH HOTOR COACH SlfilSTITUTION AS PROPOSED IN APPLICATION NO 35n8
CASE I - PRESENT OPERlTI03S Present Fares Propose(l Fares
Estimatet Estimated Estimated Hiloago Estimated Est T)imirDl l4i Recluc-Estimatea Miles Miles (a) Decrease In Traffic Roduction Mileage of Traffiction Below Proposed
Item As Shown In Miles of the Decline Duo TrafficPresent FaresBelow TrafCol6 Due to Fares PDC Staff Dacrease9-15-54 to Docline (2) x At PrescntDiminution Col 6 x
________ (3) x (4) (100 - Col 5gt Fares (7) x (3) (100 - ColFJdlibLLJamp~Passengers ~-55 8) (1) (2) (3) (4) (5) (6) (7) (8) (9)
streetcar 12041861 30 43 L29 11587000 39 117 11748000
Trolley Coach 2546000 92573633 25f~ 43 1 075~b 3 0 975 2521000
Motor Coach (b) ]8li-~4 849 20 4 3~ 86 10 18106000 39 78 18163000bull I~
f-- ---J Total (b) 33080343 32739000 32432000
CASE II - OFSRATIONS PROPOSED IN APPLICATION NO 15728 Present Fares Proposed Fares
Item Estimatefl 1JIiles(a) As SnownEstimate~- Miles Present FarosEstimate~ Milos Proposed ___-~___------I=n~PDCStaff Exhibit No Col lOx (100 - Col 5) Faros Col llx (100-CQl~
(1) (10) (11) (12)
Stroetcar 6778211 6691000 6 61300O
Trolley Coach 2981376 2949000 2920000
Motor Coach (b) 236629)) 23459 1000 2276 7000
~Total (b) 33422542 33099000 32809000 ill r trl
(a) Based on th~ l ovel of traffic of Septombor 1954 I)
(b) To the estirl8ted milos shown here should bo a~dod 7500 Charter Miles
t-3
- - - - - - -
LOS kJGELES TRANSIT LINES Table 3 Sheet 1 of 3ESTIMATE OF RAIL OPERiTINGifiPENSES
CASE I - UNDER PRESENT OPERATIONS
Company Estfor 12 Mo~ Records Ending
Acct Jan-May 1954 103155 No I t e m Annualized Present Fares
Car Miles Way and Structures
1-24 ill Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 Superintendence 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conducting Transportation 63 Superintendence 64 Conductor Motormen etc 66 Car Service Emp 67 Miscel1 Car Service Exp 70 Car House Empa
Var other Cond Transp Accounts Total
Traffic 79 Superintendence 80 AdvertiSing
Total General
83 Gen Off - Sal and Exp 84 Gen Off Emp - Sal amp Exp 85 Gen Off a SuppJies amp Exps 88 Pensions
(93 Insurance PL amp PO (93 Insurance Workmens Comp (93 Insurance Other
Var Other General Accounts Total
Total Rail Operating Expense
Cents per Car Mile
12573226
$ 722615
$ 79078 759547 146522
$ 985141
$ 18190 174643 482945
23033 $ 698 811
$ 438900 3257666
104525 76608
351696 57240
$ 4286635
$ 6346 18353
$ 24699
$ 83645 123281
35570 4818S8 765019 46840 13664
287090 $ 1836967
$ 8554874
68004cent
ll887OOO
$ 722600
$ 79100 671200 147900
$ 898200
$) 18200 174600 547200
28900 $ 768900
$ 438900 2890900
104500 72200
351700 59600
$ 3917800
$ 6300 18400
$ 24700
$ 78900 123300 35600
456600 750400 ~ 43100 13700
282tl00 $ 1783700
$ 8115900
6827cent
Co
)
-
(1
I
flI
Car Miles Oper middot Exp Case I-B - Applicants Proposed Fares 11748000 $ 8047000 ~ Expenses Variable with Car Miles Wage rates used herein are those whieh
Ac30amp33 565 cent~ile prevailed immediately prior to 6154 59 460 The cost of the wage increase which 64 2432 tecomes fully effective on 12154 is 70 148 50 of total shown separately in Results of
Total 3605 centmile Operation table ~ See Table 5 for amounts under Proposed Fare
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- - - - - ------
LCB ANGELES TRANSIT LINFS Table 3 ESTIMATE OF TROLLEY COACH OPERATING EXPENSES Sheet 2 of 3
CASE I - UNDER PRESENT OPERATIONS
Acct No I t e m
Coach Miles Way and Structures
1-24 All Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 --superintendenoe 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conduoting Transportation 63 Superintendence 64 Operators Wages 70 Car House Employees
Var Other Condo Transp Accounts Total
Traffic 79 Superintendence 80 Advertising
Total General
83 Gen Off - Sal amp Exp 84 85
Gen Off Emp - Sal amp Exp Gen Off Supplies amp Exps
88 Pensions (93 Insurance PL amp PD (93 Insurance Worlanen s Comp (93 Insurance Other
Var Other General Accounts Total
Total Operating Expense
Cents per Mile
Case I-B - Applicants Proposed Fares
Expenses Variable with Coach Miles Acs 30amp33 477centmile
59 3038 64 2342 70 075 50 of total
Total 3232centjmi1e
~ See Table 5 for Amount Under Proposed Fares
Company Estfor 12 ME Recorda Ending Jan-May 1954 103155 I ~
Annualized Present Fares ~
2629188 2546000
$ 26518 $ 27000
$ 32628 $ 32600 125469 121400
11012 9600 $ 169109 $ 163600
$ 3770 $ 3800 35770 35BOO 75017 86000 1
8417 9000 $ 122974 $ 134600
$ 99161 $ 99200 612513 596300
38273 38300 21802 21500
$ 771749 $ 755300
$ 979 $ 1000 3588 3600
$ 4567 $ 4600
$ 15134 $ 12100 22990 23000 5669 5700
87614 83000 165089 97300 I
8516 8000 ~ 3054 3100
49076 48700 $ 357142 $ 280900 6
$1452059 $1366000
5523cent 5365cent
Coach Miles Oper Exp 2521000 $1355400 -- -0
Wage rates used herein are those which prevailed immedshyiately prior to 6154 The cost of the wage i~crease which becomes fully effective on 12154 is shown separately in Results of Operations table
- 19 shy
LOS ANGELES TRANS1 LINS TABLE 3 ESTIMATE OF MOTOR COAOH OPERATING EXPENSE Sheet 3 of 3
CASE I - UNDER PRESENT OPERATIONS
Company Estimate for Records 12 months
Jan - May Ending Acct 1954 103155 No I t e m Annualized Present Fares ~
Coach Miles 1832~158 18314000 Equipment Maintenance amp Gara~ Expense
4110 Supv - Shop and Gar $ 142788 $ 142800 4140-2 Repairs to Rev E~uipment 1097376 848800 4150 Servicing Rev Equipment 308373 307700 4160 Tires - Rev Equipment 123305 125200 Var Other Maint Accounts 151444 147300
Total $1823286 $1571800 Transportation Expense
4210 Supervision of Transp $ 487284 $ 487300 4220 Drivers I vrages 3767184 37589001= 3) bull
4230 522175 523800 )0
4240 Oil for Revenue Equipment 17256 19500 JOJ
Var Other Trans Exp Accounts 60153 58200 Total $4854052 $4847700
Traffic and Advertising 4470 Advertising $ 21593 $ 21600 Var Other Traffic Accounts 7)329 76500
Total $ 94922 $ 98100 Insurance
4510 Salaries and Expenses $ 18818 $ 18800 4520 Insurance PL amp PD 786322 542OOOp 4541 Insurance Workmens Compo 51458 50100p Var Other Insurance Exp 11357 11700 - shy
Fuel for Revenue Equipment _
J Total $ 867955 $ 622600 Administrative and General
4611-2 Gen Officers - Sal amp Exps $ 90806 $ 73500 4613-6 Gen Off Employees - Sal ampExp 138043 137000 4620 Law Expense 12910 16000 4630 Gen Office Supplies amp Exp 51689 44800 4640 Communication Expense 41143 45500 4652 Employees vlelfare 525737 498200 4655 Purchasing amp Stores 120790 120800 Var All Oth~r Adm amp Gen Exp 70090 53900
Total $1051208 $ 989700 Rents 15000 15000
Total Motor Coach Expense $8706423 $8144900 Cents per Mile 47middot50cent 4447cent
Coach Miles Ouer Exp Case I-B - Applicants Proposed Fares 18171 000 $8088900 -----shy
Expennes Variable with Milos Wage rates used herein are those which Ac 4140 463centmile prevailed immediately prior to 6154
4150 084 50 of total The cost of tho wage increase toJhich beshy4160 068 comes fully effective on 12154 is clnwn 4220 2052 separately in Results of Operation table 4230 286 4240 011
Total 2964centmile cent See Table 5 for Amount Under Proposed Fares 20 shy
TABLE 4
IDS ANGELES TRANSIT LUIES AMORTIZATION AND INTEREST ALLOWANCE
PAVING AND REMOVAL OBLIGATIONS - CASES I AND II APPLICATIONS NOS 35601 AND ~5728
A - Obligations from Abandonments Prior to 1954
Yearly Amortization $132000 Interest 16000
Total $148000
B - Obligations from Abandonment of Portions of IV and Rlt Lines (July 25 1954)
Yearly Amortization $ 4000 Interest 2000
Total $ 6000
C - Obligations from Abandonments as Proposed in Application No 35728 (November 1 154)
Yearly Amortization $ 35000 Interest 2JOOO
Total $ 55000
For Case I - Items A + B $154000
For Case II- Items A + B + C $209000
Includes cost of removal of electrical distribution system ($123700) and of substation equipment ($21600)
- 21 shy
LOS ANGELES TRAl~SIT Lli~S
RJBLIC LIABILITY PROPERTY DAl1AGE AND 1l0RIJftElI i S CCMFEi-TSATION EXPENSE illLATED TO SOUln~EbTT MILES Aim R3W-RLS PAS~lWEFS
CASE I - UNDER PRHSENT OPSHATIONS 1947 - 1950 Inc Jan-May Est FOr
Line Ito m 1951 1952 1953 195412 MosEnd No Total Av per Yr Annualizod 10 31 55
1 Lossos paid (n) $ 3890 $ 972 $ 1082 $ 902 $ 580 $ 262 2 Losses ostimato~ (a) 39 10 52 280 634 881 3 Reinsurance costs (a) 282 71 62 69 ____81 65 4 Total Losses_amp Insurance (a) $ 4211 $ 1053 $ 1196 $ 1251 $ 1295 $ 1208
5 Expenses paid (a) $ 1536 $ 384 $ 353 $ 385 $ 242 $ 170 6 Expenses estimated (a) 7 2 _ __ 11) 61 182 24S 7 Total expenses (a) $ 1543 $ middot 386 ~ 363 $ 446 $ 424 $415 8 Total LossesReiils amp Exp (a) $ 5754 $ 1439 1559 $ 1697 1719 $ 1622
(Lina 4- + 7) I 9 Number of claims filed 59991 14998 11588 11104 10246 9228
N
N 10 Vehiclo miles (millions) 153 4 384 356 351 346 336 I
11 Revenue Passon~crs (millions) 10093 2523 1924 1746 1661 1531
12 Loss Per 11i1 lliilos (4 ~ 10) ~27451 $27451 ~33596 $35~641 $37428 $35952 $35000
13 Loss Por i-Hllion Pass (4 11) $ 4172 $ 4172 ~ 6216 ) 7165 ~ 7797 $ 7890 $ 7500 14 Expensos por claim (7 f 9) h
ltfgt 2572 Y 25middot72 i) 3133 $ 4017 4138 $ 4497 $ 45 15 Claims per million miles (9 10) 391 391 326 316 296 275 280
16 Claims per million pass (9 11) 59 59 60 64 62 60 60
Ul p- CD (I)
(a) Thousand of dollars amp8
t-G o ~ H
J N
TABLE 5 LOS ANGELES TRANSIT LUTES Sheet 2 0 f 2
ESTIMATE OF PUBLIC LIABILITY AND PROPERTY DAMAGE AND WOBKMElJ 1 S COMPENSATION EXPENSES
FOR 12-MONTH PERIOD ENDING OCTOBER 31 1955 UNDER CASE I-A AND CASE I-B - PRESENT OPERATIONS ~lITH PRESENT amp PROPOSED FARES
Line 110
Cost Factors 1 Claims per million revenue passengers bull bull bull 2 raquo raquo vehicle miles bull bull bull 3 Expense per claim bull bull 4 Losses per million revenue passengers
raquo raquo vehicle miles bull bull bull bull 5 bull bull
60 280 45
7500 35000
Estimated Expense For PL and PD and Workmens Compensation Insurance
Case I-A Present Fares
6 Number of rovenue passengers (millions) 1395
7 Number of vehicle miles(millions) 3275
A - Basod on Number of Passengers 8 Losses 9 Expense
10 Total
B - Based 11 Losses 12 Expense 13 Total
$1046200 376700
$1422900
on Number of Vehicle Hiles $1146200
412700 $1558900
14 Average of A and B (PL amp PD and Workmen 6 Compo - $1490900
15 Workmens Compensation Insurance 101~200(a) 16 PL and PD Insurance 1389700
Distribution of Total PL amp PD Percent
17 Rail Operations 541 $ 750400 18 Trolloy Coach Operations 7 97300 19 Motor Coach Operations ~ -542000 20 Total 100 $1389700
Case I-B Proposed Fares
1341 3244
$1005700 362100
$1367800
$1135400 408700
$1544100
$1456000 100200 (b)
1355800
$ 732~100 94900
528800 $1355800
(a) Rail=$43lOO Trolley Coach=$8000 and Motor Coach=$50100
(b) Rail=$42 600_ Trolley Coach=$7 ~ 900 and Hotor Coach=$49 (00 _ --- I
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lA3LE 6
LOS ANGELES TRANSIT LINES ESTIHATE 041 OPERAT1NG TAXES
FOR 12 MONTHS ENDING OCTOBER 31 1955 CASE I - PRESENT OPERATIONS
APPLICATION NO 35601
Book Record Case I-A Case I-B L1ne I t e m 12 Months Present Proposed
No End 5-31~ Fares Fares(~ ) -=-----=-(3)~--=--~r(4~)~-(1)
1 City Franchise Taxes $ 473687 $ 434600 ~ 481900
2 Property Taxes-Ad Valorem 457963 435000 435000
3 Fuel and Oil Taxes 360580 337700 335100
4 Motor Vehicle License Taxes 136984 Ib8 900 168900
5 Transportation License 15600 21~00 (3 B of EHlshy
6 payroll Tuxes 265000 262500
Other raxes 7000 70007
Total ~ip 1 603 800
Net after weight fee credit
-24shy
Passengers and Passenger Revenuo- Case rand Case middotII
Adult Passengers and Revenue
Because of the method of fare collection the company does not main-
t[in records of passengers carried HowErVer it does maintain a daily record
of cash fares and token fares This revenue informationi s used herein in
conjunction with a traffic check which ltlas m~de to determine the n~ber of
passengers by zones The traffic check was conducted in 1950 in connection
with Application No 32335 and the resulting percentage distribution by zones
of adult passengers is sho1rm in Column 1 of the following tabulation The
column to the right shows the percentage distribution used in this reportwhich
has been adjusted to reflect variation in diminution by zones and in the trea tshy
ment of certain passengers handled to Hollywood Park
Percent of Adult Passengers
As Used in As Used in ARglication )2225 This Rill2ort
l-Zono 674 666 2-Zonc 286 293 3-Zone 37 3~5
4-Zone 03 15
1000 10000
The following tabulation shows the fares in effect from the lattor
pc~rt of 1950 when the present pattern was established to date The first
column shows tho actua l adult I-Zone fare while the second column shows the
computed average adult fare for all zones Average Adult Fere
Period ~ Adult I-Zone Fare All Zones
12-10-50 to 1-23-52 lOp 1182l 1-24-52 to 11-2-52 15~ or 225p 14bull58
11-3-52 to 11-29~53 15~ or 340cent 1554
11-30-53 to Date 15~ or 7$100 1655
This average f are is estimated at 1664~ for the rate year under present fares because of the declining use of tokens
- 5 shy
The trend of total adult pa~s~ngers is shown in Chart 2 The
estimated adult revenue passengers for the twelve-month period ending ~
October 311955 under prosent fares are135363000 andare shown in the
chart at m1dpqint of the rate year Token use under present fares was
estimated to be 35 in each of the four zones The diminution or loss of
passengers due to increased fares was estimated to be 25 of the percentage
incrbase in the fare involved The estimated 135363000 adult passengers
developed in Chart 2 are also shown in Table 1 Coi1lffiIl 5 Line 13 and flrEl
distributed to the various zones on the basis of the percentages shown in
the above tabulation
Hollywood Park passengers are esti~ated to be 200000 annually
and the fare for these passengers is 10~ Although these Hollylood Park
passeng~rs may originate in the dOlntown area they become in essence new
passengers when they board the Hollywood Park Line since they have no transshy
fer privileges Adult passengers and revenue (shown in detail in Table 1)
for the twelve months ending October 31 1955 are summarized as follows
Passengers Revenue
Presont Fares 135563000 $22513000
Applicants Proposed Fares 130039000 25037000
Following is an estimate of school passengers and revenue and
U s Postal employee passengers and revenue
School Passengers Revenue
Case I-A Present Fares 3358000 $319000
Case I-B Proposed Fares 3245000 351000
6 shy
U S Post Office
Pas senger s Revenue
Case I-A Present Fares 616000 $ middot88000
Caso r~B Proposed Fares 616000 105000
Token Adjustment
It is estimated that based upon tho present experience of applishy
cant three tokens out of 1000 tokens sold or 0356middot will never be redeemed
This amount will be considered as an added revenue and is estimated at
$20000 under present fares
Other Revenue
From such sources as rent interest on franchise bonds charter
advertising and miscellaneous there is an estimat~d rovenue of $187000
under all cases
Revenue under Case II - Proposed Motor Coach Substitution (Application No 35728)
UnderCas8s II-A and II-B proposed motor coach substitution the
estimated rovenue will be the same as in Cases I-A and I-B respectively
Mileage
The estimated mileage to be operated during the rate year is
shOllTn in Table 2 This estimated mileage is based upon a study by
Mr William F Hibbard Associate Transportation Engineer of the
Commissions staff and is shown as a separate exhibit in this matter
- 7 shy
Operating and Maintenance Expenses -- Case I
Estimates of operating and maintenance expenses are shown in
Table 3
General
Unless otherwise stated in the following paragraphs operating
and maintenance expenses are based on experience and conditions currently
prevailing In estimating operating and maintenance expenses it is
estimated that 100 new 48-passenger diesel coaches will start operating
at the beginning of the rate year replacing older coaches now in
operation These new coaches will slightly increase the fleet cost of
tires and substantially decrease the cost of Account No 4140 - Maintenance
Expense
Wages All wages are included in the detailed estimates
shown in Table 3 at the level prevailing immediately
prior to ~ 1 1954
Wage Increase The wage increase which becomes fully
effective on December 1 1954 is sh~m separately
on Line 12 in Table 10 Results of Operation
Fuel The cost of fuel is based upon the current level
of costs including an ircrease in the Sales Tax
on diesel of 05 effective July 1 1954 for
the City of Los Angeles
Tires The unit cost of tires is based on that prevailing
under contract for the period July 1 to Decernber-31
1954 The estimate of the cost of tires reflects the
- 8 shy
~ - - -- -- - - shy
estimated higher unit middot tire cost per mile for the
loa ne coaches which are to be put in operation at
the beginning of the rate year
Power The cost of power reflects the increase recently
granted to Southern California Edison Company by
this Commission
Public Liability and Property Damage Insurance and Workmens Compensation Insurance Coverage for these types
of insurance is carried with Transit Casualty
Company the stock of which is owned by the following
affiliated or subsidiary companies
Percent of Common Stock Owned
National City Lines 30 Los Angeles Transit Lines 24 St Louis Public Service Company 46
Total middot 100
From 1953 Annual Report to the Insurance Department State of California The present premium rate charged by Transit Casualty Company to applicant is 7 of passenger revenue In this report as in pre~ous reports the estimate of the Commissions staff has been predicated on unit costs related to the number of passengers carried and tho vehicle miles operated The estimate for Case I is shown in Table 5
Operating Expenses - Case II
Case II - Operating expenses are shown in detail in Table 11
and are based on operations of Casc I adjusted to reflect the estimated
decrease in rail expenses due to the abandOnroent of lItrEiet car operations
as proposed in Application No 35728 the increase in motor coach expenses
re~uired by the substitution of motor coach service for street car service
and the increase in trolley coach expense due to the conversion of Line
No 41 from motor coach operation to trolley coach operation with a
corresponding decrease in motor coach expenses
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Operating Taxes - Case I
Franchise Taxes cmd Business Licenses
Under Case I Present Operationafrnnchise taxes to the City of
Los Angeles were determined by applying current tax rates to estimated
revenues
Ad Vnlore~ Taxes
The estimate for ad valorem taxes under Case I is based on an
assessinent of $6496250 and a tax rate of $67402
Fuel Taxes
Fuel taxes are based on the following per gallon rntes of Federal
and State Taxes
illA Cents ner Ga11Qn Effectiye Dates
Diesel Federal 11-1-54 to 3-31-55 12i ~ 4-1-55 to 10-31-55
State 7 11-1-54 to 6-30-55 ~ 2 ~ 7-1-55 to 10-31-55
Gasoline Federal 2 ~1-1-54 to 3-31-55 11
2 ~ 4-1-55 to 10-31-55
State 6 ~ 11-1-54 to 6-30-55 5i cent 7-1-55 to 10-31-55
Motor Vehicle Licenses
The estinate for motor vehic10 licenses is based on the registrashy
tion weight and vehicle license fees Which will be in effect during 1955
under equipmontrequiremonts as sot forth in the report by Public Utilities
Commission Associate Engineer Wil1in~ F Hibbard
- 10 shy
Trapsportati CD Ii CADse Tax
This license tax is assessed by the Board cf Equalization and
represents 3~ of the gross revenue derived from operations in non-incorporated
areas by motor and trolley coaches The estimate is based on
curront tax rates applied to estimated revenues
Pavroll Taxes
Tho ratos in effect aro 2 for Social s~curity taxos and 03 for
Federal Unemployment Insurance Paymonts to tho State Unemployment funds
will remain at zero as a sufficient accumulation of funds is presently
on hand It is estimated that 94 of applicants total payroll will be
subject to Social Security Tax undor the increased coverago offective
January 1 1955 and that 100 of the employees are subject to FUI taxes
at $3000 per year
Other Taxes
Other taxos include operatorsl licenses Foderal transportation
ta~ manufacturers excise taxes and other miscellnneous taxes The
estimate is based on actwd experience for the yeor ending May 31 1954
Income Taxes
State Corpor8tion Franchise Taxes have been computed at the
current rate of 4 Federal Income Taxes have been computed on tho basis
of a change in rate effective April 1 1955 On this basis the normal
tax 0 f 30 was used for five months of the rata year and 25 for soven
months of the rate year Tho surtax of 22 remains constant throughout
the year In calculating income taxes in both Cnse I and CasarI an
interest credit of $100300 was used
- 11 shy
Rate Base and Depreciation Expense
In General
In accnrdance wi th current Cornmi ssion practice of treating all
property en a remaining life basis the Commission Staff has made an
analysis of Applicont1s property As 0 rosult as of January 1 1954
1 Motor coaches of the series 6200 6300 6600 6700 6800
and 6900 (404 coaches) were put on a total life basis of
12 years This is considered reasonable in view of the
attained age and the condition of the fleet
2 The annual accrual of the Genoral Office Building (Acct 522)
was adjusted to reflect a totel life of 50 years
3 Buildings in Accounts 523 and 524 were assigned a remaining
life of 24 years with depreciation reserve adjusted to reflect
age-life condition
Under both Cpses I and II 100 nel motor coaches have been included
in the rate base as of November 1 1954 tho beginning of the rate ye~r
Other Lpnd (Acct bull 503) and Rights of Way (Acct 502) hewe been
adjusted to reflect estimated original cost
Under Cese I
150 motor coaches of the 6000 and 6100 series (including current
work orders for rebuilding) have boen deleted due to the inclusion of the
100 new coaches as well as tc conform to the equipment roquirements set forth in
Staff Witness Hibbards Exhibit ith 10 f ~r spares
All property on group plan depreciation reflects the current
4 rate of accrual with nermal additions and retiroMents tken into considerashy
tion
The 40 P C C crrs on uni t plan depreCiation wore extended as
of Innuary 1 1954 to a total life of 25 years
12 shy
Under Case II
As evidenced by correspondenco betoJeen the Commission and
Applicant and the request for changes in accounting practices as outlined
in a letter from the Applicant to the Commission under date of April 291954
it is assumed that applicant intends to completely convert to motor coach
operation by the end of 1965 The Rate Base under Case II assumes that all
property relnted to the rail and trolley coach oper2tion ltlill be fully
depreciated by that time This would include all rel~ted items of property
hitherto considered non-dopreciable those rel~ted ~o the present proposed
conversion havo been charged to the group plan depreciation reserve as of
November I 1954 those remaining 2xe depreciated over ~ 12 year period
boginning January 1 1954
150 coaches of the 6000 and 6100 series have been included in order
to satisfy oquipment requirements as outlined by Staff litness Hibbards 1
Exhibit No The work orders for rebuilding 83 of those coachos have
been put on a 3 year lifo (Soc Chart 5)
In conjunction wi th the rate base presentAtion there are shown in
Chart ) pictures and data of the streetcars and trolley coach equipment as
of September 1 1954 Camp~rt 4 shows ~ictures and data of motor coach equipshy
mont as of September I 1954
Amortization and Interest Allowance
Amortization and Interest allowance f or abandcnment oblig~tionsunder
Cases I and II is sho~m in Table 4 The estimates ccntained therein refloct
an income tax credit on the total amount of the obligations The estimate
under Case I is fer obligations incurred prior to 1954 and oblig~tionsconcerned
nV ttwith changos on tho ruld tTRtl lines made effective JUly 25 1954 Under
- 13 shy
C~se II is added the estin~ted obligation in connecticn with the abandonment
nsprop0sed in Application No 35728
Results of Operatirn
Ou-so I Relbvant infr-rr1pticn sh0vm in the f0regcing text ancl
in the tables is summarized in Table 10 - Estimated
Results of Operation - Case I and from this informashy
tion a rate of return and operating ratios are
calculated under Present and Proposed Fares
Case II Using the basic inf0rmation as used in Table 10 in
c0 njunction with the estimate of operating expenses
for Caso II as shown in Table 11 the rates of
return and operating ratins under Case II are developed
in Table 12 - Estimated Results of Operation - Case II
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LO S ANGELES TRANSIT LINES
TREN 0 OF WEEKLY REVENUE- PASS ENGER5 (E)(CLU SIVE OF POSTAL EMPLOYEES AND RIDERS ON SCHOOL FARES)
FEBRUARY 1952 TOJULY 1954 AND
ESTIMATE FOR 12 MONTHS ENDING OCT 31 1955
~ 3middot5 W w ~
a w 0
_ I cJ)
a 30 uJ 19 Z UJ cJ) cJ)
laquo 0
IL 0 25
([)
z 0 J J
~
bull ~ I
l T
-
- -
ltI-N
- 2
- wr-
u
- 2
--
w
- u
A I
1 ( A A I
j
~ J r 1f
I a V J 1 fv V V ~J
V 1IV I 1 II I
I I Jr 0
~
l) - 0 (c
rlt1
gt bull r gt 0 10 z I z ~
I I I w iw
I
I I EST I~ATE FOR 12 foONTHS ENDING OCTOBER 31 1955 w I UNDER PRpoundSENT FARES-
I w
u A - PASSENGERS PER WEEK bullbullbullbullbullbullbullbullbullbullbullbull 2 596 000
u B - PASSENGERS PER yEAR bullbullbullbullbullbullbullbullbullbull 135 363 000
- Z Ii
w I
w I
lt I
u u i
it i--0 w
~ - -lt 0-H gt- =-1--1 a 0
-Y
VI
I
I )
T ~20
JAN f EBMAR APRoMAY J UN JUL AUG SEPOCTNOV DEC JANFEB MARAP R MAY JUNJULAUG SE P OCT NOVmCJANfEB MARAPRMAY JUN JUL AUG S EP OCTNOV DE C JAN FEB MAR APR IoiIAY JU N gt- c-+shy
rv1952 953 954 1955 Wl
LOS ANGELES TRANSIT LINES ESTIMATE OF REVEruE PASSENGERS lID PASSENGER REVENUE
FOR 12 MONTHS ENDInG OCTOBER 31 1955 CASE I AND CASE II APPLICATION NO 15601 AND NO 35728
Present Fares Applicants Proposed Fares Est
Percent of Dlmin- PassenshyLlne of Total Fare Zone Passengera Revenue Fare utlon cera Revenue -=-----Ho-- Item Orldnalt Adjusted (Cents) Paus i cent (Cents) ~ cent cent
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
Adul t Passengers
lOne-Zone 15 65 58599 $ 8790 17 333 56648 $ 9630 2 1427 35 31553 4507 17 475 )0054 5109 3 666 666 1475 100 90152 $13297 86702 $14739
4 Two-Zone 20 65 25780 $ 5156 23 3middot75 24813 $ 5707 5 1927 ~ 13881 2677 ~ 481 13212 30)9 6 293 293 19751 100 39661 $ 783) 38026 $ 8746
7 Three-Zone 25 65 3476 $ 869 29 400 3337 $ 968 a-- 8 2427 22 1871 454 29 485 1 180 516 I 9 38 395 2475 100 5)47 $ 1323 511 $ 1484
10 Four-~one )0 65 1)2 $ 39 35 417 126 $ 44shy11 2927 35 71 21 35 488 68 24 12 ~ ----l5 29 75f 100 20) $ 60 - 194 $ 68 13 Sub-Total 1000 1000 ~ 135363 $22513 1300)9 $25037 14 Holly Park 10 200 $ 20 10 200 $ 20 15 Total Adult 13556) $225)) 130239 $25057
16 School 9 2797 $ 252 10 278 2719 $ 272 17 School 12 561 67 15 625 526 79 18 Total School )358 $ )19 )245 $ 351 19 Post Office 1427 616 $ B8 17 616 $ 105 20 Grand Total 139537 $22940 1)4100 $25513
cent (000) Omi tted ~ 1F Weighted Average Fare ~ If See Chart 2 + + As deter~ined by traffic checks and used in previous Staff reports
CHART 3
rr LOS AtJGELES
TRANSIT LINES
STREET CAR AN 0 TROLLEY COAe H
EQUIPMENT AS OF
H4 OR K4 OPEN END WOODEN SEATS H3 CLOSED ENDLEATHER S EATS SEPTEMB E R f 1954
JIshy
OLDER T YPE OF PCC CAR NE WER TYPE OF PCC CAR
8000 SERIES TROLLEY COACH 9000 SERIES TROLLEY COACH 9100 S ERI ES TROLLEY COACH
STREET CARS TROLLEY COACHES
ALL H3 H4 K4 PCC OTHER TOTAL 8000 9000
SEATS 48 48 48 12 5-61 SEATS VARIOU 44 4540-28 SEATS
EQU IPME NT ASSIGNMENTS UNDER PRESENT CoMPANY BASIS EFFECTIVE SEPTEMBER 12
9100
46 TOTAL
SCHEDULED SPARES
TOTAL ASSIGNED UNASSIGNED
TOTAL OWNED
SCHEDULED
SPARES
TOTAL ASSIGNED UNASSIGNED
TOTAL OWNE D
354 22 57 5
411 2 37 101 13
60 165 37 512 40 EQUIP MENT RE QUIREMENTS PRESENT SERVICE FOR RATE YEAR)
354 36
390 122 512
34 6
40 30
81 16
81 9
90 20
110 EQUIPMENT REQUIREMENTS WITH SERVICE AS P ROPOSED IN
ApPLICATIO N 28 (FOR RATE YEAR
SCHEDULED 20431 23 150 93 4 2 21SPARES 1015
TOTAL ASSIGNED 165 22525 10335 UNASSIGNED - 7
TOTAL RETAINED 225 11025 16535 To BE RETIRED 0190 2 7 37 TOTAL Now OWNED 60 110512 215 165 3735
-lE- ESTI MA TED BY P U C STAFF E
2 r
C
-
6600 SER IE S 6700 AND 6900 SER IE S 6800 SER I ES
L I NE 6200 No TE~ 5000 6000 yf 6 100 yf 6300 6400 6600
MACK G M e G M e G M e G MC G M C I i~IA K( amp UODEl NUMBER C-45 -CT TD-4502 rn -4505 TO- 4506 TDH-5103 TOH shy 36 1 2 YE AR BUilT l~ 1940 1941 1945 1951 1947 3 DATE I N SERV I CE 7 -40 1-42 7 - 45 7 - 51 7 -47 4 NUMBER O F CoACHES 50 55 95 200 25 57 5 PU RCHAS ED NEW OR US ED N N
6 S EATI NG CAPAC IT Y 45 45 45 51 36 45 40
~ LE NG TH - OUT S I DE 3~ -0 3~ - 0 37 -0 3~ -6 30 - 6 3~ - 0 3~ -0 WI DTH - OU T S IDE -Oil _-ttl 8 -0 -611 8 - 2 _OM I - 0
9 HE I CHT - OU TS I DE 9 -6 9 shy 5t 9 -6 9 t 4t ll 9 - 2 9 0 9 -6 10 A I SL( HEADROOM 76 77 78 78 76shy 8 76
11 A ISLE WI DTH 19 2 1 26 22 22 20 12 TY PE O f DR I V( HYD HYD HYD HYO HYD HYD
13 BRA KE HORSE POWER amp FUE L 165io) 165( 0) 165(0) 110(0) 165(0) 165(0) 14 Bo DY f RAME MA TE R I AL AL AL AL AL AL NOT G I VE N 15 Bo DY PANEL ~1ATE R I AL AL AL AL AL AL NO T GI VEN
16 ROO F MATER I AL AL AL amp ST AL AL amp ST AL amp ST NO T G I VEN
~ ~ - AT DCC CMBER 3 1 1953shy14 26 15298AV ER AG E INVE ST PER CoACH $ ~ 21962 $ 13 992 17 60 14 209
19 INVESHIENT 1 354 9~ 3 059 506 549 044 7 97 5~ 2 lt164 650 99 466 10 000 509 20 RE SE RV E 1340 6 2 462 923 135951 503 6 1369 1 02 90 896 7 147 497
21 REM AIN ING VALUE (I NCL SALV) 14 250 596 583 413 093 293 869 1 095 548 8 570 2853 012 22 REMA I N I NG LIF E lOYR BAS I S 22 MO 90 MO 43 MO 52 MO 9 MO
23 REMAIN I NG L IFE 12YR BAS I 46 MO 90 MO 67 MO 76 MO 33 MO
yf THC COS T OF REBU IL DING 102 CoACHES OF THC 6000 AND 6 100 SE RIE S NOT I NCLUDE D HEREI N (SCE NEXT PACE)
1941 AN D 1942 MA T ER I AL S WE RE SuBJ ECT TO PR I OR I T ( S AND THEREFOR E STEEL WAS USE D IN PLACE OF
ALUMI NUM FO R BO DY FR AMES PAN EL S AND ROO FS I N SO ME COACHE S O F TH E TD- 4505 SERI ES
G - GASOl I NC D - D I CSE L AL - ALUM I NU M ST - Srr CL HYD - HYDRAUL I C
lt~i
~~4
CHART 4
LOS ANGELES TRANSIT LINES
MOTOR COACH EQUIPMENT
AS OF
SEPTEMB ER 1954IS_T 6000 SER I ES
6200 AND 6300 SER I ES
6
5 CHART
1~A~PLE OF THE DAMAGE TO BODY PANE LS M D RI VET ED JOINTS
2 - COACH WITH ALL BODY PANE LS Il l NDO V FR M1ES M~) SOIIE BO DY BRAC IN G REMOVED
l
LOS ANGELES TRANSIT LINES
PROGRAM OF
REBUILDING MOTOR COACHES
OF THE
6000 AND 6100 SERlES
j - PAR TI AL Re STO RA TI ON SODY PA NE LS Ix I I I )SI I ELD FRA Il E REPLA CED AFT ER kt C~ D I T I ON 116
I+ - AL L BO DY PANE LS AND S I DE W I~ DO J FRAhi ES RE shyPLACED AND ~ ESTO~ED
5 -INT ER IOR SHOW IN G CO MPLET E RE MOVAL OF SEATS AND OTHE R AC COUTERM ENTS REPLACED OR RECOND ITIO NED
6 -COMP LETE D I NTER l OR - t EIJ FLOO R
COV ER IN G WIT H S EAT CUSH IONS ETC
7 - COMP LET ED EXTER l OR COACH REPAI NTED AND READY FOR SERV I CE
I N 195 1 Los AN GELES T RANS IT LINES I NAUGURA TED A PROGRAM OF REBU IL D I NG GMC CoACHES OF THE
6 0 00 (BU ILT IN 1940) AND 61 00 ( BU ILT IN 1941) SER IE S A s OF JU LY 1954 62 COACH ES HAD BEE N
REBUILT WITH 40 ST ILL ON WORK ORDERS BUT IN PROCeSS THE CURRENT EST IM AT ED CO ST OF THIS
P ROGRMil I S AN AV ERAGE OF ~3500 PER COACH THE P U C S TAF F EST IMA TES THE LIF E OF TH ES E
COACH ES TO BE AN ADDIT IO NAL THR EE YEAR S FRO M DATE OF COMP LETI ON COS TS OF REB UILDING AR E
SHOWN I N THE RATE BAS E RE LATIV E TO THE APPROP RI ATE WORK ORDER AN D THEREFORE ARE NOT INCi UDEu
IN THE I NV ESH IENT FOR 60)0 AND 6100 S ERI ES COACH ES SHOWN ON CHAR T No 4
LOS ANGELES TRANSIT LINES SSTIMATED RATE BASE AND DEPRECHTION EXPENSE
12 I~ONTHS ENDING OCTOBSR 31 1955 CISE I - VnTH PRY-SENT METHOD OF SERTICE - APPLICATION NO 35601
Gum October 31 1954 As of October 31 1955
Line
No Item (1)
Iccnunt Number Invcstment
(2)
(3) Reserve
(4)
Inve stmen t Less
Reserve (5)
Remaining
Life (6)
In
Inve s tIDen t Less
vestment Reserve Reserve (7) (8) (9)
Depreciation Expense RAte YeAr
(10) LAND
1 2
Rights of VVAY Other Lmd
502 503
S 426974 1931112
$ 426974 1931112
$ middot 426974 1931112
$ 426974 $ 1931 112
EQUIP~NT ONl~ITDEPRECI~TION
3 Auto Tr011ey pcc53033Jf~034288 $ 7167640 $ 6866648 V3rious $14034288 $ 8125353 $ 5908935 $ 957713
PROPERTY ON GROUP DEPRECIATIJN OverheAQs
4 Engineering 501 $ 44651 $ 44651 OrgAnizAtiorfshy 546 601749 601749~ 5
6 Interest 547 middot 916884 916884 7 Gnding 504 1117084 1118084 8 All Other 505-545 27021634 4 Base 27141634 _____ _________ 9 Suttotal
(Lines 4 to 8) $29702002 $22441215 ~ 7260787 $29823002 ~23516286 $ 6306716 $1081071_
10 Tr)W(Lines 123 amp 9) ~46094376 $29608855 ~16485521 $46215376 $]1641639 $14573737 $2038784
11 RATE BASE Use - $2039000 12 Avenge 0f $16485521amp ~1+573 737 $15530000 13 Work in Progress 100000 14 M1terials amp Supplies 735000 15 Bond Deposit - City Fnnchise 411000 16 Deposit for PL Insurance 150000
17 Totil RAte BAse $16926000 8 t ~
-It- rhjor PArt of Acct 546 is Supervisinn --J
-----
LOS ANGELES TRI-NSIT LINES ESTThiIiTED Ri1TE BASE AND DEPRECllTION EXPENSE
12 NiONTHS ENDING OCTOBER 31 1955 CIlSE II - SSUMING MOTOR COACH SUBSTITUTION ON CERTHN RAIL LINES AS PROPOSED m iiPPLICilTION NO 35728
---- --------------- As f Oct)ber 31 195amp As of Oct0ber 31 1955 Inve sUn8nt Investment IBpreciaticn
Line Account Le ss REffiainin~ Less ExpensE No Item Number Inve-stmcnt ReS8riTe Reserve Life Investment Reserve ~ Reserve Rate Yeqr
(T) T2) 0) (Ii) (5) (6) (7) (8) (9) (10)
Ll~ND
1 Other LAnd 503 ~ 1925510 $ Ci 1925510 ~ 1925510 $ 1925510
EQUIP1A~NT ON UNIT DEPRECIATION 2 itutoIrol1eyPCC 5))3338 $16392563 $ 9323673 $ 7068890 Various $16392563 ~10391985 $ 6000578 $1068312
BUILDJNGS 3 General Office-~ 522 $ 916255 $ 563016 ~ 353239 1917 Yrs$ 916255 $ 581446 $ 334809 $ 18430 4 Shops Grgs Admin 523 amp524 2733772 1013500 1720272 2320 Yrs 2733772 1087633 1646139 74133 5 Subtotal (Lines 3 amp4) 3650027 ~ 1576516 gt 2073511 igt 3650027 11669079 ~ 1980948) 92563
~ PROPERTY ON GROUP DEPRECIATION Overheaas
6 Engineering 501) 7 Organizqtion 5~6) tt 1563178 ~ 1563178 8 Interest 547) 9 Grlding 504)
10 Righ ts of Vgy 502 117922 117922 11 All Other 505-5h5 15 651 31 7 15 771 31 7 ~---7-=-~-- lr-r-----=~ -x---r---~ 12 Subtotal (Lines 6 to 11) )17332417 $11343350 ~ 5989067 1117 Yramp$17452417 ~11833307 ~ 5619110 ~ 495957
13 Totql(Lines 125 amp 12) ~39300517 822243539 ~17056978 839420517 023894371 015526146 01656832
14 RATE BASE Use ~1657OOO 15 Avcr~ge of ~1705697B qnd )15526146 016292000 16 Nwk in Progre s s 100000 Am)unts sh)wn include lpplic3ble -werheqds fr)ll 17 Haterills amp Supplies 735000 Accnunts 546 amp 541 18 Bond Deposit - City Frqnchisc 411000 cent Investment ~d depreciation reserve assumes all 19 Deposit for PL Insurqnce 150000 retirements for the lines to be cmiddotmvcrted 1--3
20 Use Vqlue - Fully Depreciated CJtches 1)2000 ~re m~de 3S ) f November 1 1954 qnd that the ~ full unnunt middotf r e tirements qre charged to the EJ
21 Tot-l R1te Blse ~17840000 reserve co
10S ANG3LSS TRANSIT LI~S
INVESTWNT DSPRCIATICN R~SsRVS AND EXPSNS~ FOR ~QUIPMLNT ON UNIT PLAN DEPR3CHTION
CASES I AND II APPLICATIONS NO 35601 AND 35728
As of Oct0ber 31 ffi4 As of October 31 1955 Line NoTotal Investment fnvestment Depre No Item of Life Investment Reserve Less Investment Reserve Less Expense
Units Reserve Reserve Rate Year (1) (2) (J) 4) - ---(~ CD) en -- --8)----- -(9j- (10)
For Case I 1 Motor Coach Groups
62006300 66-6900 hOh 12 Yrs$6421159 $4728599 ~1692560 ~ 6421159 $ 500 1011 ~1330lh8 $ 362412 2 5000 6hoo 75 10 II 1486387 77~175 711212 1h86387 92h851 561536 149676 3 Coaches on order 100 10 II 2285400 2285400 2285400 2265J~0 2058860 226540
II
I 5 Automobiles 51 V3r 99485 50916 h8569 99485 66540 329h5 15624 ~ 6 Trucks amp Service Cars 56 II 280584 250572 30012 280584 265813 lh771 15241 I 7 Misc( Fare BoxesMotors) 170193 115191 55002 170193 122271 47922 7080
h Trolley Coaches 110 15 2108h09 908560 1199849 2108h09 1Oh6116 1062293 137556
8 Total of Lines 1 to 7 ~12851617 ~~6829013 ~02260h ~12i351617 ~ 77h3lh2 $5108475 $ 914129
9 PCC Rail Cars 40 25 rsJ~ 1182671 ) 338627 gt 84h04h 1182671 ~ 382211 ~ 800460 $ h3581~
10 Case I - Line 8 + Line 9 $14034288 $7167640 $6866648 ~14034288 $ 8125353 t5908935 $ 957713
For Case II
11 6000 amp 6100 Series MC 150 FD ~ 2092963 $2070463 ~ 22500 $ 2092963 $ 2070463 $ 22500 12 Work orders on 6000s
amp 6100 s 3 Yrs 265312 61860 203452 265312 144007 121305 $ 82147 13 PCC Rail Cars 401717 1182671 362 337__ ~~~ 334 1182671 43473 ___748298 72036
14 Case II - Lines 8 + 11+ 12+ 13 ~16392563 9323673 n068890 $16392563 ttl0391985 ~6ooo578 ~1068312
t-3
125 other PCC Cars are in Group Depreciation Schedule G ~
Note579 motor coaches under Case I and 729 under Case II D
LOS AlJGELES TRANSIT LnlES TABLE 10 ESTIMATE]) RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD E1TDUTG OCTOBER 31 1955 CASE I - UNDER PRESENT OPERATIONS
12 Months Jan-June
Line No Item
Tab1e Ending or May 31 1954 Page Fe fer
(2)
Book Record
(])
1954 Annualized
Book Record
(4)
Case I-A Present
Fares (5 )
Case I-B Applicant l s
Proposed Fares
(6)
1 Vehicle Miles T2 34036066 33569520 32747000 32440000
Revenue 2 3 4 5
Passenger Revenue Unredeemed Tokens Other Revenue Total
T1 P7 P7
$24849150
122402 $25044557
$24517866
183810 $24 701676
$22940000 $25513000 20000
1821 000 182 000 $23147000 $25700000
6 7 8
Operating Expenses Rail Trolley Coach Motor Coach
T3 T3 T3
$ 8493744 1442232 8622956
$ 8575232 1451430 8 n6470
$ 8115900 $ 8047000 1366000 1355400 8144200 8088900
9 10 11 12 13
Sub-Total Depreciation Operating Taxes Wage Increase Total
T7 T6
18563932 2176608 1676358
$22416898
18743132 2185804 1760600
$22689536
17626800 17491300~ 2039000 2039000 1663800 1711700
439800 436500 $21769400 $21678500
14 Operating Income $ 2627659 $ 20J2JJQ $ 1377600 $ 4021500 15 Other Inc amp Inc Deduct 21258 (9328)
16 Net Inc Before IncTaxes 2635217 2002742 1377600 4021500 I 17 Income Taxes (St ampFe~) 1302758 1026568 647500 1 999 000 18 Net Operating Income 1332459 976174 730100 2022 500 i 19 Allowance T4 112216 80752 1541000 1541000 20 Net Income $ 1220243 $ 895422 $576100 $ 1868500
21 Rate Base T7 $17393000 $16727000 $16926000 $16926000 22 Rate of Return 70~ 535 340 1104
Operating Ratio 23 Before Income Taxes 9405 8435 24 After Inc Taxes ampAllow 9751 927)
Not Applicable
Computed by PUC Staff Allowance for interest and amortization of abandoned property (Red ]figure)
- 31 shy
IDS ill~GElES TRANSIT LINES ESTIMATE OF OPERATllIG EX-degENSES JuID TAXES
FOR 12 f10NTHS ENDING OCTOBER 31 1955 CASE II - KOTOR COACH Sl~STITUTION - j~PLrCATION NO 35728
Table or Line Page Hotor Trolley
~To Item Reference Streetcar Coach Coach Total
l 2 3
4
I S
rv 6VJ
I 7 8 9
10 ll 12 13 Ih 15 16
17
13
(ll- -- shy
Vehicle Miles Case I - Present Operation Case II - Proposed Operation
Increase in i1iles
Opere amp I1aint Expense - Case I
Changes in Expense Due to Conversion Way and Structures Substation Operation Rail Crossing Protection Vehicle Maintenance Servicing of Vehicles Tires - Hotor Coach Equipment Operators vJages Fuel Oil or Power 21 amp PD Insurance ~Jorkmen I s Compensation Insurance Training Drivers for Conversion
Total Increase in Expense
Oper amp i1aint Expense - Case II (Line h +
Operating Taxes - Case II
(Red Figure)
(Z)
T2 T2
T3
Line 16)
D)
11887000 6691000
(5196000)
~ 8115900
t (11500) (42200) (55000)
(270900) (76900)
(1232900) (219800)
(liT shy
18314000 23h67000 5153000
amp 314~900
~
355000 h3300 32500
1154300 153000
-C5) (6)
2546000 32747000 2949000 33107000
403000 360000
S 1366000 ~gt 17 626800
If (144500) 1 ~ v$ ltW (42 200 ) - bull (55 000 ) 7HmiddotVj
19200 103300 M~ f~
3000 ( 30600) A N- i
32500 94400 15800 14600 (52206)
(1l1100) ~ [ (1200) Glh
30000 ~i
p (258200)
$17368600 r3
c~ 1786600 cr ill
I- CD
I- i-
TABLE 12
LOS ANGELES TRANSIT LINES ESTIMATED RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD ENDING OCTOBER 11 1955 CASE II - MOTOR COACH SUBSTITUTION - APPLICATION NO 15728
Table Case II-A Case II-B Line Item Refer- Present Proposed
Nos i FSles Faresect~nce
( 1) (2) (3) ( 4)
1 Vehicles Miles T 2 33107000 32817000
2 Operating Revenue T 10 $23147000 $25700000
O~erating E~ense
3 Operating and Maintenance Tll $17368600 $17234900 4 Depreciation T 8 1657000 1657000 5 Operating Taxes Tll 1786000 1837800 6 Wage Increase 434ZQQ 431 lt)00
Total $21246300 $211612007
8 Operating Income $ 1900700 $ 4538800 Other Inc amp Inc Deductions it 119
10 Net Income Before Income Taxes $ 1900700 $ 4538800 11 Income Taxes (State amp Federal) 214 200 2262 400 12 Net Operating Income $ 985800 $ 2275400 13 Allowance T 4 ~ 2090QO ~ 20200Q 14 Net Income $ 776800 $ 2066400
15 Rate Base T 8 $17840000 $17840000 16 Rate of Return 435 1158
012erating Ratio 17 Before Income Taxes 9179 8234 18 After Income Taxes amp Allowance 9664 9196
Not Appli cable
Allowance for interest and amortization related to streetcar abandonment of the past and for abandonmcnts proposed in Application No 35728
-33shy
LOS ANGELES TRANSIT Ln~S ESTH1ATE OF HILES TO i3LJ OERATEJJ FOR THE TlJ7IVE HONTHS-ENDING OCTOBER 31 1 q55
A UNDJilR PRESENT OPERATIONS B WITH HOTOR COACH SlfilSTITUTION AS PROPOSED IN APPLICATION NO 35n8
CASE I - PRESENT OPERlTI03S Present Fares Propose(l Fares
Estimatet Estimated Estimated Hiloago Estimated Est T)imirDl l4i Recluc-Estimatea Miles Miles (a) Decrease In Traffic Roduction Mileage of Traffiction Below Proposed
Item As Shown In Miles of the Decline Duo TrafficPresent FaresBelow TrafCol6 Due to Fares PDC Staff Dacrease9-15-54 to Docline (2) x At PrescntDiminution Col 6 x
________ (3) x (4) (100 - Col 5gt Fares (7) x (3) (100 - ColFJdlibLLJamp~Passengers ~-55 8) (1) (2) (3) (4) (5) (6) (7) (8) (9)
streetcar 12041861 30 43 L29 11587000 39 117 11748000
Trolley Coach 2546000 92573633 25f~ 43 1 075~b 3 0 975 2521000
Motor Coach (b) ]8li-~4 849 20 4 3~ 86 10 18106000 39 78 18163000bull I~
f-- ---J Total (b) 33080343 32739000 32432000
CASE II - OFSRATIONS PROPOSED IN APPLICATION NO 15728 Present Fares Proposed Fares
Item Estimatefl 1JIiles(a) As SnownEstimate~- Miles Present FarosEstimate~ Milos Proposed ___-~___------I=n~PDCStaff Exhibit No Col lOx (100 - Col 5) Faros Col llx (100-CQl~
(1) (10) (11) (12)
Stroetcar 6778211 6691000 6 61300O
Trolley Coach 2981376 2949000 2920000
Motor Coach (b) 236629)) 23459 1000 2276 7000
~Total (b) 33422542 33099000 32809000 ill r trl
(a) Based on th~ l ovel of traffic of Septombor 1954 I)
(b) To the estirl8ted milos shown here should bo a~dod 7500 Charter Miles
t-3
- - - - - - -
LOS kJGELES TRANSIT LINES Table 3 Sheet 1 of 3ESTIMATE OF RAIL OPERiTINGifiPENSES
CASE I - UNDER PRESENT OPERATIONS
Company Estfor 12 Mo~ Records Ending
Acct Jan-May 1954 103155 No I t e m Annualized Present Fares
Car Miles Way and Structures
1-24 ill Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 Superintendence 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conducting Transportation 63 Superintendence 64 Conductor Motormen etc 66 Car Service Emp 67 Miscel1 Car Service Exp 70 Car House Empa
Var other Cond Transp Accounts Total
Traffic 79 Superintendence 80 AdvertiSing
Total General
83 Gen Off - Sal and Exp 84 Gen Off Emp - Sal amp Exp 85 Gen Off a SuppJies amp Exps 88 Pensions
(93 Insurance PL amp PO (93 Insurance Workmens Comp (93 Insurance Other
Var Other General Accounts Total
Total Rail Operating Expense
Cents per Car Mile
12573226
$ 722615
$ 79078 759547 146522
$ 985141
$ 18190 174643 482945
23033 $ 698 811
$ 438900 3257666
104525 76608
351696 57240
$ 4286635
$ 6346 18353
$ 24699
$ 83645 123281
35570 4818S8 765019 46840 13664
287090 $ 1836967
$ 8554874
68004cent
ll887OOO
$ 722600
$ 79100 671200 147900
$ 898200
$) 18200 174600 547200
28900 $ 768900
$ 438900 2890900
104500 72200
351700 59600
$ 3917800
$ 6300 18400
$ 24700
$ 78900 123300 35600
456600 750400 ~ 43100 13700
282tl00 $ 1783700
$ 8115900
6827cent
Co
)
-
(1
I
flI
Car Miles Oper middot Exp Case I-B - Applicants Proposed Fares 11748000 $ 8047000 ~ Expenses Variable with Car Miles Wage rates used herein are those whieh
Ac30amp33 565 cent~ile prevailed immediately prior to 6154 59 460 The cost of the wage increase which 64 2432 tecomes fully effective on 12154 is 70 148 50 of total shown separately in Results of
Total 3605 centmile Operation table ~ See Table 5 for amounts under Proposed Fare
- 18 shy
- - - - - ------
LCB ANGELES TRANSIT LINFS Table 3 ESTIMATE OF TROLLEY COACH OPERATING EXPENSES Sheet 2 of 3
CASE I - UNDER PRESENT OPERATIONS
Acct No I t e m
Coach Miles Way and Structures
1-24 All Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 --superintendenoe 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conduoting Transportation 63 Superintendence 64 Operators Wages 70 Car House Employees
Var Other Condo Transp Accounts Total
Traffic 79 Superintendence 80 Advertising
Total General
83 Gen Off - Sal amp Exp 84 85
Gen Off Emp - Sal amp Exp Gen Off Supplies amp Exps
88 Pensions (93 Insurance PL amp PD (93 Insurance Worlanen s Comp (93 Insurance Other
Var Other General Accounts Total
Total Operating Expense
Cents per Mile
Case I-B - Applicants Proposed Fares
Expenses Variable with Coach Miles Acs 30amp33 477centmile
59 3038 64 2342 70 075 50 of total
Total 3232centjmi1e
~ See Table 5 for Amount Under Proposed Fares
Company Estfor 12 ME Recorda Ending Jan-May 1954 103155 I ~
Annualized Present Fares ~
2629188 2546000
$ 26518 $ 27000
$ 32628 $ 32600 125469 121400
11012 9600 $ 169109 $ 163600
$ 3770 $ 3800 35770 35BOO 75017 86000 1
8417 9000 $ 122974 $ 134600
$ 99161 $ 99200 612513 596300
38273 38300 21802 21500
$ 771749 $ 755300
$ 979 $ 1000 3588 3600
$ 4567 $ 4600
$ 15134 $ 12100 22990 23000 5669 5700
87614 83000 165089 97300 I
8516 8000 ~ 3054 3100
49076 48700 $ 357142 $ 280900 6
$1452059 $1366000
5523cent 5365cent
Coach Miles Oper Exp 2521000 $1355400 -- -0
Wage rates used herein are those which prevailed immedshyiately prior to 6154 The cost of the wage i~crease which becomes fully effective on 12154 is shown separately in Results of Operations table
- 19 shy
LOS ANGELES TRANS1 LINS TABLE 3 ESTIMATE OF MOTOR COAOH OPERATING EXPENSE Sheet 3 of 3
CASE I - UNDER PRESENT OPERATIONS
Company Estimate for Records 12 months
Jan - May Ending Acct 1954 103155 No I t e m Annualized Present Fares ~
Coach Miles 1832~158 18314000 Equipment Maintenance amp Gara~ Expense
4110 Supv - Shop and Gar $ 142788 $ 142800 4140-2 Repairs to Rev E~uipment 1097376 848800 4150 Servicing Rev Equipment 308373 307700 4160 Tires - Rev Equipment 123305 125200 Var Other Maint Accounts 151444 147300
Total $1823286 $1571800 Transportation Expense
4210 Supervision of Transp $ 487284 $ 487300 4220 Drivers I vrages 3767184 37589001= 3) bull
4230 522175 523800 )0
4240 Oil for Revenue Equipment 17256 19500 JOJ
Var Other Trans Exp Accounts 60153 58200 Total $4854052 $4847700
Traffic and Advertising 4470 Advertising $ 21593 $ 21600 Var Other Traffic Accounts 7)329 76500
Total $ 94922 $ 98100 Insurance
4510 Salaries and Expenses $ 18818 $ 18800 4520 Insurance PL amp PD 786322 542OOOp 4541 Insurance Workmens Compo 51458 50100p Var Other Insurance Exp 11357 11700 - shy
Fuel for Revenue Equipment _
J Total $ 867955 $ 622600 Administrative and General
4611-2 Gen Officers - Sal amp Exps $ 90806 $ 73500 4613-6 Gen Off Employees - Sal ampExp 138043 137000 4620 Law Expense 12910 16000 4630 Gen Office Supplies amp Exp 51689 44800 4640 Communication Expense 41143 45500 4652 Employees vlelfare 525737 498200 4655 Purchasing amp Stores 120790 120800 Var All Oth~r Adm amp Gen Exp 70090 53900
Total $1051208 $ 989700 Rents 15000 15000
Total Motor Coach Expense $8706423 $8144900 Cents per Mile 47middot50cent 4447cent
Coach Miles Ouer Exp Case I-B - Applicants Proposed Fares 18171 000 $8088900 -----shy
Expennes Variable with Milos Wage rates used herein are those which Ac 4140 463centmile prevailed immediately prior to 6154
4150 084 50 of total The cost of tho wage increase toJhich beshy4160 068 comes fully effective on 12154 is clnwn 4220 2052 separately in Results of Operation table 4230 286 4240 011
Total 2964centmile cent See Table 5 for Amount Under Proposed Fares 20 shy
TABLE 4
IDS ANGELES TRANSIT LUIES AMORTIZATION AND INTEREST ALLOWANCE
PAVING AND REMOVAL OBLIGATIONS - CASES I AND II APPLICATIONS NOS 35601 AND ~5728
A - Obligations from Abandonments Prior to 1954
Yearly Amortization $132000 Interest 16000
Total $148000
B - Obligations from Abandonment of Portions of IV and Rlt Lines (July 25 1954)
Yearly Amortization $ 4000 Interest 2000
Total $ 6000
C - Obligations from Abandonments as Proposed in Application No 35728 (November 1 154)
Yearly Amortization $ 35000 Interest 2JOOO
Total $ 55000
For Case I - Items A + B $154000
For Case II- Items A + B + C $209000
Includes cost of removal of electrical distribution system ($123700) and of substation equipment ($21600)
- 21 shy
LOS ANGELES TRAl~SIT Lli~S
RJBLIC LIABILITY PROPERTY DAl1AGE AND 1l0RIJftElI i S CCMFEi-TSATION EXPENSE illLATED TO SOUln~EbTT MILES Aim R3W-RLS PAS~lWEFS
CASE I - UNDER PRHSENT OPSHATIONS 1947 - 1950 Inc Jan-May Est FOr
Line Ito m 1951 1952 1953 195412 MosEnd No Total Av per Yr Annualizod 10 31 55
1 Lossos paid (n) $ 3890 $ 972 $ 1082 $ 902 $ 580 $ 262 2 Losses ostimato~ (a) 39 10 52 280 634 881 3 Reinsurance costs (a) 282 71 62 69 ____81 65 4 Total Losses_amp Insurance (a) $ 4211 $ 1053 $ 1196 $ 1251 $ 1295 $ 1208
5 Expenses paid (a) $ 1536 $ 384 $ 353 $ 385 $ 242 $ 170 6 Expenses estimated (a) 7 2 _ __ 11) 61 182 24S 7 Total expenses (a) $ 1543 $ middot 386 ~ 363 $ 446 $ 424 $415 8 Total LossesReiils amp Exp (a) $ 5754 $ 1439 1559 $ 1697 1719 $ 1622
(Lina 4- + 7) I 9 Number of claims filed 59991 14998 11588 11104 10246 9228
N
N 10 Vehiclo miles (millions) 153 4 384 356 351 346 336 I
11 Revenue Passon~crs (millions) 10093 2523 1924 1746 1661 1531
12 Loss Per 11i1 lliilos (4 ~ 10) ~27451 $27451 ~33596 $35~641 $37428 $35952 $35000
13 Loss Por i-Hllion Pass (4 11) $ 4172 $ 4172 ~ 6216 ) 7165 ~ 7797 $ 7890 $ 7500 14 Expensos por claim (7 f 9) h
ltfgt 2572 Y 25middot72 i) 3133 $ 4017 4138 $ 4497 $ 45 15 Claims per million miles (9 10) 391 391 326 316 296 275 280
16 Claims per million pass (9 11) 59 59 60 64 62 60 60
Ul p- CD (I)
(a) Thousand of dollars amp8
t-G o ~ H
J N
TABLE 5 LOS ANGELES TRANSIT LUTES Sheet 2 0 f 2
ESTIMATE OF PUBLIC LIABILITY AND PROPERTY DAMAGE AND WOBKMElJ 1 S COMPENSATION EXPENSES
FOR 12-MONTH PERIOD ENDING OCTOBER 31 1955 UNDER CASE I-A AND CASE I-B - PRESENT OPERATIONS ~lITH PRESENT amp PROPOSED FARES
Line 110
Cost Factors 1 Claims per million revenue passengers bull bull bull 2 raquo raquo vehicle miles bull bull bull 3 Expense per claim bull bull 4 Losses per million revenue passengers
raquo raquo vehicle miles bull bull bull bull 5 bull bull
60 280 45
7500 35000
Estimated Expense For PL and PD and Workmens Compensation Insurance
Case I-A Present Fares
6 Number of rovenue passengers (millions) 1395
7 Number of vehicle miles(millions) 3275
A - Basod on Number of Passengers 8 Losses 9 Expense
10 Total
B - Based 11 Losses 12 Expense 13 Total
$1046200 376700
$1422900
on Number of Vehicle Hiles $1146200
412700 $1558900
14 Average of A and B (PL amp PD and Workmen 6 Compo - $1490900
15 Workmens Compensation Insurance 101~200(a) 16 PL and PD Insurance 1389700
Distribution of Total PL amp PD Percent
17 Rail Operations 541 $ 750400 18 Trolloy Coach Operations 7 97300 19 Motor Coach Operations ~ -542000 20 Total 100 $1389700
Case I-B Proposed Fares
1341 3244
$1005700 362100
$1367800
$1135400 408700
$1544100
$1456000 100200 (b)
1355800
$ 732~100 94900
528800 $1355800
(a) Rail=$43lOO Trolley Coach=$8000 and Motor Coach=$50100
(b) Rail=$42 600_ Trolley Coach=$7 ~ 900 and Hotor Coach=$49 (00 _ --- I
- 23 shy
lA3LE 6
LOS ANGELES TRANSIT LINES ESTIHATE 041 OPERAT1NG TAXES
FOR 12 MONTHS ENDING OCTOBER 31 1955 CASE I - PRESENT OPERATIONS
APPLICATION NO 35601
Book Record Case I-A Case I-B L1ne I t e m 12 Months Present Proposed
No End 5-31~ Fares Fares(~ ) -=-----=-(3)~--=--~r(4~)~-(1)
1 City Franchise Taxes $ 473687 $ 434600 ~ 481900
2 Property Taxes-Ad Valorem 457963 435000 435000
3 Fuel and Oil Taxes 360580 337700 335100
4 Motor Vehicle License Taxes 136984 Ib8 900 168900
5 Transportation License 15600 21~00 (3 B of EHlshy
6 payroll Tuxes 265000 262500
Other raxes 7000 70007
Total ~ip 1 603 800
Net after weight fee credit
-24shy
The trend of total adult pa~s~ngers is shown in Chart 2 The
estimated adult revenue passengers for the twelve-month period ending ~
October 311955 under prosent fares are135363000 andare shown in the
chart at m1dpqint of the rate year Token use under present fares was
estimated to be 35 in each of the four zones The diminution or loss of
passengers due to increased fares was estimated to be 25 of the percentage
incrbase in the fare involved The estimated 135363000 adult passengers
developed in Chart 2 are also shown in Table 1 Coi1lffiIl 5 Line 13 and flrEl
distributed to the various zones on the basis of the percentages shown in
the above tabulation
Hollywood Park passengers are esti~ated to be 200000 annually
and the fare for these passengers is 10~ Although these Hollylood Park
passeng~rs may originate in the dOlntown area they become in essence new
passengers when they board the Hollywood Park Line since they have no transshy
fer privileges Adult passengers and revenue (shown in detail in Table 1)
for the twelve months ending October 31 1955 are summarized as follows
Passengers Revenue
Presont Fares 135563000 $22513000
Applicants Proposed Fares 130039000 25037000
Following is an estimate of school passengers and revenue and
U s Postal employee passengers and revenue
School Passengers Revenue
Case I-A Present Fares 3358000 $319000
Case I-B Proposed Fares 3245000 351000
6 shy
U S Post Office
Pas senger s Revenue
Case I-A Present Fares 616000 $ middot88000
Caso r~B Proposed Fares 616000 105000
Token Adjustment
It is estimated that based upon tho present experience of applishy
cant three tokens out of 1000 tokens sold or 0356middot will never be redeemed
This amount will be considered as an added revenue and is estimated at
$20000 under present fares
Other Revenue
From such sources as rent interest on franchise bonds charter
advertising and miscellaneous there is an estimat~d rovenue of $187000
under all cases
Revenue under Case II - Proposed Motor Coach Substitution (Application No 35728)
UnderCas8s II-A and II-B proposed motor coach substitution the
estimated rovenue will be the same as in Cases I-A and I-B respectively
Mileage
The estimated mileage to be operated during the rate year is
shOllTn in Table 2 This estimated mileage is based upon a study by
Mr William F Hibbard Associate Transportation Engineer of the
Commissions staff and is shown as a separate exhibit in this matter
- 7 shy
Operating and Maintenance Expenses -- Case I
Estimates of operating and maintenance expenses are shown in
Table 3
General
Unless otherwise stated in the following paragraphs operating
and maintenance expenses are based on experience and conditions currently
prevailing In estimating operating and maintenance expenses it is
estimated that 100 new 48-passenger diesel coaches will start operating
at the beginning of the rate year replacing older coaches now in
operation These new coaches will slightly increase the fleet cost of
tires and substantially decrease the cost of Account No 4140 - Maintenance
Expense
Wages All wages are included in the detailed estimates
shown in Table 3 at the level prevailing immediately
prior to ~ 1 1954
Wage Increase The wage increase which becomes fully
effective on December 1 1954 is sh~m separately
on Line 12 in Table 10 Results of Operation
Fuel The cost of fuel is based upon the current level
of costs including an ircrease in the Sales Tax
on diesel of 05 effective July 1 1954 for
the City of Los Angeles
Tires The unit cost of tires is based on that prevailing
under contract for the period July 1 to Decernber-31
1954 The estimate of the cost of tires reflects the
- 8 shy
~ - - -- -- - - shy
estimated higher unit middot tire cost per mile for the
loa ne coaches which are to be put in operation at
the beginning of the rate year
Power The cost of power reflects the increase recently
granted to Southern California Edison Company by
this Commission
Public Liability and Property Damage Insurance and Workmens Compensation Insurance Coverage for these types
of insurance is carried with Transit Casualty
Company the stock of which is owned by the following
affiliated or subsidiary companies
Percent of Common Stock Owned
National City Lines 30 Los Angeles Transit Lines 24 St Louis Public Service Company 46
Total middot 100
From 1953 Annual Report to the Insurance Department State of California The present premium rate charged by Transit Casualty Company to applicant is 7 of passenger revenue In this report as in pre~ous reports the estimate of the Commissions staff has been predicated on unit costs related to the number of passengers carried and tho vehicle miles operated The estimate for Case I is shown in Table 5
Operating Expenses - Case II
Case II - Operating expenses are shown in detail in Table 11
and are based on operations of Casc I adjusted to reflect the estimated
decrease in rail expenses due to the abandOnroent of lItrEiet car operations
as proposed in Application No 35728 the increase in motor coach expenses
re~uired by the substitution of motor coach service for street car service
and the increase in trolley coach expense due to the conversion of Line
No 41 from motor coach operation to trolley coach operation with a
corresponding decrease in motor coach expenses
- 9 shy
Operating Taxes - Case I
Franchise Taxes cmd Business Licenses
Under Case I Present Operationafrnnchise taxes to the City of
Los Angeles were determined by applying current tax rates to estimated
revenues
Ad Vnlore~ Taxes
The estimate for ad valorem taxes under Case I is based on an
assessinent of $6496250 and a tax rate of $67402
Fuel Taxes
Fuel taxes are based on the following per gallon rntes of Federal
and State Taxes
illA Cents ner Ga11Qn Effectiye Dates
Diesel Federal 11-1-54 to 3-31-55 12i ~ 4-1-55 to 10-31-55
State 7 11-1-54 to 6-30-55 ~ 2 ~ 7-1-55 to 10-31-55
Gasoline Federal 2 ~1-1-54 to 3-31-55 11
2 ~ 4-1-55 to 10-31-55
State 6 ~ 11-1-54 to 6-30-55 5i cent 7-1-55 to 10-31-55
Motor Vehicle Licenses
The estinate for motor vehic10 licenses is based on the registrashy
tion weight and vehicle license fees Which will be in effect during 1955
under equipmontrequiremonts as sot forth in the report by Public Utilities
Commission Associate Engineer Wil1in~ F Hibbard
- 10 shy
Trapsportati CD Ii CADse Tax
This license tax is assessed by the Board cf Equalization and
represents 3~ of the gross revenue derived from operations in non-incorporated
areas by motor and trolley coaches The estimate is based on
curront tax rates applied to estimated revenues
Pavroll Taxes
Tho ratos in effect aro 2 for Social s~curity taxos and 03 for
Federal Unemployment Insurance Paymonts to tho State Unemployment funds
will remain at zero as a sufficient accumulation of funds is presently
on hand It is estimated that 94 of applicants total payroll will be
subject to Social Security Tax undor the increased coverago offective
January 1 1955 and that 100 of the employees are subject to FUI taxes
at $3000 per year
Other Taxes
Other taxos include operatorsl licenses Foderal transportation
ta~ manufacturers excise taxes and other miscellnneous taxes The
estimate is based on actwd experience for the yeor ending May 31 1954
Income Taxes
State Corpor8tion Franchise Taxes have been computed at the
current rate of 4 Federal Income Taxes have been computed on tho basis
of a change in rate effective April 1 1955 On this basis the normal
tax 0 f 30 was used for five months of the rata year and 25 for soven
months of the rate year Tho surtax of 22 remains constant throughout
the year In calculating income taxes in both Cnse I and CasarI an
interest credit of $100300 was used
- 11 shy
Rate Base and Depreciation Expense
In General
In accnrdance wi th current Cornmi ssion practice of treating all
property en a remaining life basis the Commission Staff has made an
analysis of Applicont1s property As 0 rosult as of January 1 1954
1 Motor coaches of the series 6200 6300 6600 6700 6800
and 6900 (404 coaches) were put on a total life basis of
12 years This is considered reasonable in view of the
attained age and the condition of the fleet
2 The annual accrual of the Genoral Office Building (Acct 522)
was adjusted to reflect a totel life of 50 years
3 Buildings in Accounts 523 and 524 were assigned a remaining
life of 24 years with depreciation reserve adjusted to reflect
age-life condition
Under both Cpses I and II 100 nel motor coaches have been included
in the rate base as of November 1 1954 tho beginning of the rate ye~r
Other Lpnd (Acct bull 503) and Rights of Way (Acct 502) hewe been
adjusted to reflect estimated original cost
Under Cese I
150 motor coaches of the 6000 and 6100 series (including current
work orders for rebuilding) have boen deleted due to the inclusion of the
100 new coaches as well as tc conform to the equipment roquirements set forth in
Staff Witness Hibbards Exhibit ith 10 f ~r spares
All property on group plan depreciation reflects the current
4 rate of accrual with nermal additions and retiroMents tken into considerashy
tion
The 40 P C C crrs on uni t plan depreCiation wore extended as
of Innuary 1 1954 to a total life of 25 years
12 shy
Under Case II
As evidenced by correspondenco betoJeen the Commission and
Applicant and the request for changes in accounting practices as outlined
in a letter from the Applicant to the Commission under date of April 291954
it is assumed that applicant intends to completely convert to motor coach
operation by the end of 1965 The Rate Base under Case II assumes that all
property relnted to the rail and trolley coach oper2tion ltlill be fully
depreciated by that time This would include all rel~ted items of property
hitherto considered non-dopreciable those rel~ted ~o the present proposed
conversion havo been charged to the group plan depreciation reserve as of
November I 1954 those remaining 2xe depreciated over ~ 12 year period
boginning January 1 1954
150 coaches of the 6000 and 6100 series have been included in order
to satisfy oquipment requirements as outlined by Staff litness Hibbards 1
Exhibit No The work orders for rebuilding 83 of those coachos have
been put on a 3 year lifo (Soc Chart 5)
In conjunction wi th the rate base presentAtion there are shown in
Chart ) pictures and data of the streetcars and trolley coach equipment as
of September 1 1954 Camp~rt 4 shows ~ictures and data of motor coach equipshy
mont as of September I 1954
Amortization and Interest Allowance
Amortization and Interest allowance f or abandcnment oblig~tionsunder
Cases I and II is sho~m in Table 4 The estimates ccntained therein refloct
an income tax credit on the total amount of the obligations The estimate
under Case I is fer obligations incurred prior to 1954 and oblig~tionsconcerned
nV ttwith changos on tho ruld tTRtl lines made effective JUly 25 1954 Under
- 13 shy
C~se II is added the estin~ted obligation in connecticn with the abandonment
nsprop0sed in Application No 35728
Results of Operatirn
Ou-so I Relbvant infr-rr1pticn sh0vm in the f0regcing text ancl
in the tables is summarized in Table 10 - Estimated
Results of Operation - Case I and from this informashy
tion a rate of return and operating ratios are
calculated under Present and Proposed Fares
Case II Using the basic inf0rmation as used in Table 10 in
c0 njunction with the estimate of operating expenses
for Caso II as shown in Table 11 the rates of
return and operating ratins under Case II are developed
in Table 12 - Estimated Results of Operation - Case II
- 14 shy
LO S ANGELES TRANSIT LINES
TREN 0 OF WEEKLY REVENUE- PASS ENGER5 (E)(CLU SIVE OF POSTAL EMPLOYEES AND RIDERS ON SCHOOL FARES)
FEBRUARY 1952 TOJULY 1954 AND
ESTIMATE FOR 12 MONTHS ENDING OCT 31 1955
~ 3middot5 W w ~
a w 0
_ I cJ)
a 30 uJ 19 Z UJ cJ) cJ)
laquo 0
IL 0 25
([)
z 0 J J
~
bull ~ I
l T
-
- -
ltI-N
- 2
- wr-
u
- 2
--
w
- u
A I
1 ( A A I
j
~ J r 1f
I a V J 1 fv V V ~J
V 1IV I 1 II I
I I Jr 0
~
l) - 0 (c
rlt1
gt bull r gt 0 10 z I z ~
I I I w iw
I
I I EST I~ATE FOR 12 foONTHS ENDING OCTOBER 31 1955 w I UNDER PRpoundSENT FARES-
I w
u A - PASSENGERS PER WEEK bullbullbullbullbullbullbullbullbullbullbullbull 2 596 000
u B - PASSENGERS PER yEAR bullbullbullbullbullbullbullbullbullbull 135 363 000
- Z Ii
w I
w I
lt I
u u i
it i--0 w
~ - -lt 0-H gt- =-1--1 a 0
-Y
VI
I
I )
T ~20
JAN f EBMAR APRoMAY J UN JUL AUG SEPOCTNOV DEC JANFEB MARAP R MAY JUNJULAUG SE P OCT NOVmCJANfEB MARAPRMAY JUN JUL AUG S EP OCTNOV DE C JAN FEB MAR APR IoiIAY JU N gt- c-+shy
rv1952 953 954 1955 Wl
LOS ANGELES TRANSIT LINES ESTIMATE OF REVEruE PASSENGERS lID PASSENGER REVENUE
FOR 12 MONTHS ENDInG OCTOBER 31 1955 CASE I AND CASE II APPLICATION NO 15601 AND NO 35728
Present Fares Applicants Proposed Fares Est
Percent of Dlmin- PassenshyLlne of Total Fare Zone Passengera Revenue Fare utlon cera Revenue -=-----Ho-- Item Orldnalt Adjusted (Cents) Paus i cent (Cents) ~ cent cent
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
Adul t Passengers
lOne-Zone 15 65 58599 $ 8790 17 333 56648 $ 9630 2 1427 35 31553 4507 17 475 )0054 5109 3 666 666 1475 100 90152 $13297 86702 $14739
4 Two-Zone 20 65 25780 $ 5156 23 3middot75 24813 $ 5707 5 1927 ~ 13881 2677 ~ 481 13212 30)9 6 293 293 19751 100 39661 $ 783) 38026 $ 8746
7 Three-Zone 25 65 3476 $ 869 29 400 3337 $ 968 a-- 8 2427 22 1871 454 29 485 1 180 516 I 9 38 395 2475 100 5)47 $ 1323 511 $ 1484
10 Four-~one )0 65 1)2 $ 39 35 417 126 $ 44shy11 2927 35 71 21 35 488 68 24 12 ~ ----l5 29 75f 100 20) $ 60 - 194 $ 68 13 Sub-Total 1000 1000 ~ 135363 $22513 1300)9 $25037 14 Holly Park 10 200 $ 20 10 200 $ 20 15 Total Adult 13556) $225)) 130239 $25057
16 School 9 2797 $ 252 10 278 2719 $ 272 17 School 12 561 67 15 625 526 79 18 Total School )358 $ )19 )245 $ 351 19 Post Office 1427 616 $ B8 17 616 $ 105 20 Grand Total 139537 $22940 1)4100 $25513
cent (000) Omi tted ~ 1F Weighted Average Fare ~ If See Chart 2 + + As deter~ined by traffic checks and used in previous Staff reports
CHART 3
rr LOS AtJGELES
TRANSIT LINES
STREET CAR AN 0 TROLLEY COAe H
EQUIPMENT AS OF
H4 OR K4 OPEN END WOODEN SEATS H3 CLOSED ENDLEATHER S EATS SEPTEMB E R f 1954
JIshy
OLDER T YPE OF PCC CAR NE WER TYPE OF PCC CAR
8000 SERIES TROLLEY COACH 9000 SERIES TROLLEY COACH 9100 S ERI ES TROLLEY COACH
STREET CARS TROLLEY COACHES
ALL H3 H4 K4 PCC OTHER TOTAL 8000 9000
SEATS 48 48 48 12 5-61 SEATS VARIOU 44 4540-28 SEATS
EQU IPME NT ASSIGNMENTS UNDER PRESENT CoMPANY BASIS EFFECTIVE SEPTEMBER 12
9100
46 TOTAL
SCHEDULED SPARES
TOTAL ASSIGNED UNASSIGNED
TOTAL OWNED
SCHEDULED
SPARES
TOTAL ASSIGNED UNASSIGNED
TOTAL OWNE D
354 22 57 5
411 2 37 101 13
60 165 37 512 40 EQUIP MENT RE QUIREMENTS PRESENT SERVICE FOR RATE YEAR)
354 36
390 122 512
34 6
40 30
81 16
81 9
90 20
110 EQUIPMENT REQUIREMENTS WITH SERVICE AS P ROPOSED IN
ApPLICATIO N 28 (FOR RATE YEAR
SCHEDULED 20431 23 150 93 4 2 21SPARES 1015
TOTAL ASSIGNED 165 22525 10335 UNASSIGNED - 7
TOTAL RETAINED 225 11025 16535 To BE RETIRED 0190 2 7 37 TOTAL Now OWNED 60 110512 215 165 3735
-lE- ESTI MA TED BY P U C STAFF E
2 r
C
-
6600 SER IE S 6700 AND 6900 SER IE S 6800 SER I ES
L I NE 6200 No TE~ 5000 6000 yf 6 100 yf 6300 6400 6600
MACK G M e G M e G M e G MC G M C I i~IA K( amp UODEl NUMBER C-45 -CT TD-4502 rn -4505 TO- 4506 TDH-5103 TOH shy 36 1 2 YE AR BUilT l~ 1940 1941 1945 1951 1947 3 DATE I N SERV I CE 7 -40 1-42 7 - 45 7 - 51 7 -47 4 NUMBER O F CoACHES 50 55 95 200 25 57 5 PU RCHAS ED NEW OR US ED N N
6 S EATI NG CAPAC IT Y 45 45 45 51 36 45 40
~ LE NG TH - OUT S I DE 3~ -0 3~ - 0 37 -0 3~ -6 30 - 6 3~ - 0 3~ -0 WI DTH - OU T S IDE -Oil _-ttl 8 -0 -611 8 - 2 _OM I - 0
9 HE I CHT - OU TS I DE 9 -6 9 shy 5t 9 -6 9 t 4t ll 9 - 2 9 0 9 -6 10 A I SL( HEADROOM 76 77 78 78 76shy 8 76
11 A ISLE WI DTH 19 2 1 26 22 22 20 12 TY PE O f DR I V( HYD HYD HYD HYO HYD HYD
13 BRA KE HORSE POWER amp FUE L 165io) 165( 0) 165(0) 110(0) 165(0) 165(0) 14 Bo DY f RAME MA TE R I AL AL AL AL AL AL NOT G I VE N 15 Bo DY PANEL ~1ATE R I AL AL AL AL AL AL NO T GI VEN
16 ROO F MATER I AL AL AL amp ST AL AL amp ST AL amp ST NO T G I VEN
~ ~ - AT DCC CMBER 3 1 1953shy14 26 15298AV ER AG E INVE ST PER CoACH $ ~ 21962 $ 13 992 17 60 14 209
19 INVESHIENT 1 354 9~ 3 059 506 549 044 7 97 5~ 2 lt164 650 99 466 10 000 509 20 RE SE RV E 1340 6 2 462 923 135951 503 6 1369 1 02 90 896 7 147 497
21 REM AIN ING VALUE (I NCL SALV) 14 250 596 583 413 093 293 869 1 095 548 8 570 2853 012 22 REMA I N I NG LIF E lOYR BAS I S 22 MO 90 MO 43 MO 52 MO 9 MO
23 REMAIN I NG L IFE 12YR BAS I 46 MO 90 MO 67 MO 76 MO 33 MO
yf THC COS T OF REBU IL DING 102 CoACHES OF THC 6000 AND 6 100 SE RIE S NOT I NCLUDE D HEREI N (SCE NEXT PACE)
1941 AN D 1942 MA T ER I AL S WE RE SuBJ ECT TO PR I OR I T ( S AND THEREFOR E STEEL WAS USE D IN PLACE OF
ALUMI NUM FO R BO DY FR AMES PAN EL S AND ROO FS I N SO ME COACHE S O F TH E TD- 4505 SERI ES
G - GASOl I NC D - D I CSE L AL - ALUM I NU M ST - Srr CL HYD - HYDRAUL I C
lt~i
~~4
CHART 4
LOS ANGELES TRANSIT LINES
MOTOR COACH EQUIPMENT
AS OF
SEPTEMB ER 1954IS_T 6000 SER I ES
6200 AND 6300 SER I ES
6
5 CHART
1~A~PLE OF THE DAMAGE TO BODY PANE LS M D RI VET ED JOINTS
2 - COACH WITH ALL BODY PANE LS Il l NDO V FR M1ES M~) SOIIE BO DY BRAC IN G REMOVED
l
LOS ANGELES TRANSIT LINES
PROGRAM OF
REBUILDING MOTOR COACHES
OF THE
6000 AND 6100 SERlES
j - PAR TI AL Re STO RA TI ON SODY PA NE LS Ix I I I )SI I ELD FRA Il E REPLA CED AFT ER kt C~ D I T I ON 116
I+ - AL L BO DY PANE LS AND S I DE W I~ DO J FRAhi ES RE shyPLACED AND ~ ESTO~ED
5 -INT ER IOR SHOW IN G CO MPLET E RE MOVAL OF SEATS AND OTHE R AC COUTERM ENTS REPLACED OR RECOND ITIO NED
6 -COMP LETE D I NTER l OR - t EIJ FLOO R
COV ER IN G WIT H S EAT CUSH IONS ETC
7 - COMP LET ED EXTER l OR COACH REPAI NTED AND READY FOR SERV I CE
I N 195 1 Los AN GELES T RANS IT LINES I NAUGURA TED A PROGRAM OF REBU IL D I NG GMC CoACHES OF THE
6 0 00 (BU ILT IN 1940) AND 61 00 ( BU ILT IN 1941) SER IE S A s OF JU LY 1954 62 COACH ES HAD BEE N
REBUILT WITH 40 ST ILL ON WORK ORDERS BUT IN PROCeSS THE CURRENT EST IM AT ED CO ST OF THIS
P ROGRMil I S AN AV ERAGE OF ~3500 PER COACH THE P U C S TAF F EST IMA TES THE LIF E OF TH ES E
COACH ES TO BE AN ADDIT IO NAL THR EE YEAR S FRO M DATE OF COMP LETI ON COS TS OF REB UILDING AR E
SHOWN I N THE RATE BAS E RE LATIV E TO THE APPROP RI ATE WORK ORDER AN D THEREFORE ARE NOT INCi UDEu
IN THE I NV ESH IENT FOR 60)0 AND 6100 S ERI ES COACH ES SHOWN ON CHAR T No 4
LOS ANGELES TRANSIT LINES SSTIMATED RATE BASE AND DEPRECHTION EXPENSE
12 I~ONTHS ENDING OCTOBSR 31 1955 CISE I - VnTH PRY-SENT METHOD OF SERTICE - APPLICATION NO 35601
Gum October 31 1954 As of October 31 1955
Line
No Item (1)
Iccnunt Number Invcstment
(2)
(3) Reserve
(4)
Inve stmen t Less
Reserve (5)
Remaining
Life (6)
In
Inve s tIDen t Less
vestment Reserve Reserve (7) (8) (9)
Depreciation Expense RAte YeAr
(10) LAND
1 2
Rights of VVAY Other Lmd
502 503
S 426974 1931112
$ 426974 1931112
$ middot 426974 1931112
$ 426974 $ 1931 112
EQUIP~NT ONl~ITDEPRECI~TION
3 Auto Tr011ey pcc53033Jf~034288 $ 7167640 $ 6866648 V3rious $14034288 $ 8125353 $ 5908935 $ 957713
PROPERTY ON GROUP DEPRECIATIJN OverheAQs
4 Engineering 501 $ 44651 $ 44651 OrgAnizAtiorfshy 546 601749 601749~ 5
6 Interest 547 middot 916884 916884 7 Gnding 504 1117084 1118084 8 All Other 505-545 27021634 4 Base 27141634 _____ _________ 9 Suttotal
(Lines 4 to 8) $29702002 $22441215 ~ 7260787 $29823002 ~23516286 $ 6306716 $1081071_
10 Tr)W(Lines 123 amp 9) ~46094376 $29608855 ~16485521 $46215376 $]1641639 $14573737 $2038784
11 RATE BASE Use - $2039000 12 Avenge 0f $16485521amp ~1+573 737 $15530000 13 Work in Progress 100000 14 M1terials amp Supplies 735000 15 Bond Deposit - City Fnnchise 411000 16 Deposit for PL Insurance 150000
17 Totil RAte BAse $16926000 8 t ~
-It- rhjor PArt of Acct 546 is Supervisinn --J
-----
LOS ANGELES TRI-NSIT LINES ESTThiIiTED Ri1TE BASE AND DEPRECllTION EXPENSE
12 NiONTHS ENDING OCTOBER 31 1955 CIlSE II - SSUMING MOTOR COACH SUBSTITUTION ON CERTHN RAIL LINES AS PROPOSED m iiPPLICilTION NO 35728
---- --------------- As f Oct)ber 31 195amp As of Oct0ber 31 1955 Inve sUn8nt Investment IBpreciaticn
Line Account Le ss REffiainin~ Less ExpensE No Item Number Inve-stmcnt ReS8riTe Reserve Life Investment Reserve ~ Reserve Rate Yeqr
(T) T2) 0) (Ii) (5) (6) (7) (8) (9) (10)
Ll~ND
1 Other LAnd 503 ~ 1925510 $ Ci 1925510 ~ 1925510 $ 1925510
EQUIP1A~NT ON UNIT DEPRECIATION 2 itutoIrol1eyPCC 5))3338 $16392563 $ 9323673 $ 7068890 Various $16392563 ~10391985 $ 6000578 $1068312
BUILDJNGS 3 General Office-~ 522 $ 916255 $ 563016 ~ 353239 1917 Yrs$ 916255 $ 581446 $ 334809 $ 18430 4 Shops Grgs Admin 523 amp524 2733772 1013500 1720272 2320 Yrs 2733772 1087633 1646139 74133 5 Subtotal (Lines 3 amp4) 3650027 ~ 1576516 gt 2073511 igt 3650027 11669079 ~ 1980948) 92563
~ PROPERTY ON GROUP DEPRECIATION Overheaas
6 Engineering 501) 7 Organizqtion 5~6) tt 1563178 ~ 1563178 8 Interest 547) 9 Grlding 504)
10 Righ ts of Vgy 502 117922 117922 11 All Other 505-5h5 15 651 31 7 15 771 31 7 ~---7-=-~-- lr-r-----=~ -x---r---~ 12 Subtotal (Lines 6 to 11) )17332417 $11343350 ~ 5989067 1117 Yramp$17452417 ~11833307 ~ 5619110 ~ 495957
13 Totql(Lines 125 amp 12) ~39300517 822243539 ~17056978 839420517 023894371 015526146 01656832
14 RATE BASE Use ~1657OOO 15 Avcr~ge of ~1705697B qnd )15526146 016292000 16 Nwk in Progre s s 100000 Am)unts sh)wn include lpplic3ble -werheqds fr)ll 17 Haterills amp Supplies 735000 Accnunts 546 amp 541 18 Bond Deposit - City Frqnchisc 411000 cent Investment ~d depreciation reserve assumes all 19 Deposit for PL Insurqnce 150000 retirements for the lines to be cmiddotmvcrted 1--3
20 Use Vqlue - Fully Depreciated CJtches 1)2000 ~re m~de 3S ) f November 1 1954 qnd that the ~ full unnunt middotf r e tirements qre charged to the EJ
21 Tot-l R1te Blse ~17840000 reserve co
10S ANG3LSS TRANSIT LI~S
INVESTWNT DSPRCIATICN R~SsRVS AND EXPSNS~ FOR ~QUIPMLNT ON UNIT PLAN DEPR3CHTION
CASES I AND II APPLICATIONS NO 35601 AND 35728
As of Oct0ber 31 ffi4 As of October 31 1955 Line NoTotal Investment fnvestment Depre No Item of Life Investment Reserve Less Investment Reserve Less Expense
Units Reserve Reserve Rate Year (1) (2) (J) 4) - ---(~ CD) en -- --8)----- -(9j- (10)
For Case I 1 Motor Coach Groups
62006300 66-6900 hOh 12 Yrs$6421159 $4728599 ~1692560 ~ 6421159 $ 500 1011 ~1330lh8 $ 362412 2 5000 6hoo 75 10 II 1486387 77~175 711212 1h86387 92h851 561536 149676 3 Coaches on order 100 10 II 2285400 2285400 2285400 2265J~0 2058860 226540
II
I 5 Automobiles 51 V3r 99485 50916 h8569 99485 66540 329h5 15624 ~ 6 Trucks amp Service Cars 56 II 280584 250572 30012 280584 265813 lh771 15241 I 7 Misc( Fare BoxesMotors) 170193 115191 55002 170193 122271 47922 7080
h Trolley Coaches 110 15 2108h09 908560 1199849 2108h09 1Oh6116 1062293 137556
8 Total of Lines 1 to 7 ~12851617 ~~6829013 ~02260h ~12i351617 ~ 77h3lh2 $5108475 $ 914129
9 PCC Rail Cars 40 25 rsJ~ 1182671 ) 338627 gt 84h04h 1182671 ~ 382211 ~ 800460 $ h3581~
10 Case I - Line 8 + Line 9 $14034288 $7167640 $6866648 ~14034288 $ 8125353 t5908935 $ 957713
For Case II
11 6000 amp 6100 Series MC 150 FD ~ 2092963 $2070463 ~ 22500 $ 2092963 $ 2070463 $ 22500 12 Work orders on 6000s
amp 6100 s 3 Yrs 265312 61860 203452 265312 144007 121305 $ 82147 13 PCC Rail Cars 401717 1182671 362 337__ ~~~ 334 1182671 43473 ___748298 72036
14 Case II - Lines 8 + 11+ 12+ 13 ~16392563 9323673 n068890 $16392563 ttl0391985 ~6ooo578 ~1068312
t-3
125 other PCC Cars are in Group Depreciation Schedule G ~
Note579 motor coaches under Case I and 729 under Case II D
LOS AlJGELES TRANSIT LnlES TABLE 10 ESTIMATE]) RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD E1TDUTG OCTOBER 31 1955 CASE I - UNDER PRESENT OPERATIONS
12 Months Jan-June
Line No Item
Tab1e Ending or May 31 1954 Page Fe fer
(2)
Book Record
(])
1954 Annualized
Book Record
(4)
Case I-A Present
Fares (5 )
Case I-B Applicant l s
Proposed Fares
(6)
1 Vehicle Miles T2 34036066 33569520 32747000 32440000
Revenue 2 3 4 5
Passenger Revenue Unredeemed Tokens Other Revenue Total
T1 P7 P7
$24849150
122402 $25044557
$24517866
183810 $24 701676
$22940000 $25513000 20000
1821 000 182 000 $23147000 $25700000
6 7 8
Operating Expenses Rail Trolley Coach Motor Coach
T3 T3 T3
$ 8493744 1442232 8622956
$ 8575232 1451430 8 n6470
$ 8115900 $ 8047000 1366000 1355400 8144200 8088900
9 10 11 12 13
Sub-Total Depreciation Operating Taxes Wage Increase Total
T7 T6
18563932 2176608 1676358
$22416898
18743132 2185804 1760600
$22689536
17626800 17491300~ 2039000 2039000 1663800 1711700
439800 436500 $21769400 $21678500
14 Operating Income $ 2627659 $ 20J2JJQ $ 1377600 $ 4021500 15 Other Inc amp Inc Deduct 21258 (9328)
16 Net Inc Before IncTaxes 2635217 2002742 1377600 4021500 I 17 Income Taxes (St ampFe~) 1302758 1026568 647500 1 999 000 18 Net Operating Income 1332459 976174 730100 2022 500 i 19 Allowance T4 112216 80752 1541000 1541000 20 Net Income $ 1220243 $ 895422 $576100 $ 1868500
21 Rate Base T7 $17393000 $16727000 $16926000 $16926000 22 Rate of Return 70~ 535 340 1104
Operating Ratio 23 Before Income Taxes 9405 8435 24 After Inc Taxes ampAllow 9751 927)
Not Applicable
Computed by PUC Staff Allowance for interest and amortization of abandoned property (Red ]figure)
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IDS ill~GElES TRANSIT LINES ESTIMATE OF OPERATllIG EX-degENSES JuID TAXES
FOR 12 f10NTHS ENDING OCTOBER 31 1955 CASE II - KOTOR COACH Sl~STITUTION - j~PLrCATION NO 35728
Table or Line Page Hotor Trolley
~To Item Reference Streetcar Coach Coach Total
l 2 3
4
I S
rv 6VJ
I 7 8 9
10 ll 12 13 Ih 15 16
17
13
(ll- -- shy
Vehicle Miles Case I - Present Operation Case II - Proposed Operation
Increase in i1iles
Opere amp I1aint Expense - Case I
Changes in Expense Due to Conversion Way and Structures Substation Operation Rail Crossing Protection Vehicle Maintenance Servicing of Vehicles Tires - Hotor Coach Equipment Operators vJages Fuel Oil or Power 21 amp PD Insurance ~Jorkmen I s Compensation Insurance Training Drivers for Conversion
Total Increase in Expense
Oper amp i1aint Expense - Case II (Line h +
Operating Taxes - Case II
(Red Figure)
(Z)
T2 T2
T3
Line 16)
D)
11887000 6691000
(5196000)
~ 8115900
t (11500) (42200) (55000)
(270900) (76900)
(1232900) (219800)
(liT shy
18314000 23h67000 5153000
amp 314~900
~
355000 h3300 32500
1154300 153000
-C5) (6)
2546000 32747000 2949000 33107000
403000 360000
S 1366000 ~gt 17 626800
If (144500) 1 ~ v$ ltW (42 200 ) - bull (55 000 ) 7HmiddotVj
19200 103300 M~ f~
3000 ( 30600) A N- i
32500 94400 15800 14600 (52206)
(1l1100) ~ [ (1200) Glh
30000 ~i
p (258200)
$17368600 r3
c~ 1786600 cr ill
I- CD
I- i-
TABLE 12
LOS ANGELES TRANSIT LINES ESTIMATED RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD ENDING OCTOBER 11 1955 CASE II - MOTOR COACH SUBSTITUTION - APPLICATION NO 15728
Table Case II-A Case II-B Line Item Refer- Present Proposed
Nos i FSles Faresect~nce
( 1) (2) (3) ( 4)
1 Vehicles Miles T 2 33107000 32817000
2 Operating Revenue T 10 $23147000 $25700000
O~erating E~ense
3 Operating and Maintenance Tll $17368600 $17234900 4 Depreciation T 8 1657000 1657000 5 Operating Taxes Tll 1786000 1837800 6 Wage Increase 434ZQQ 431 lt)00
Total $21246300 $211612007
8 Operating Income $ 1900700 $ 4538800 Other Inc amp Inc Deductions it 119
10 Net Income Before Income Taxes $ 1900700 $ 4538800 11 Income Taxes (State amp Federal) 214 200 2262 400 12 Net Operating Income $ 985800 $ 2275400 13 Allowance T 4 ~ 2090QO ~ 20200Q 14 Net Income $ 776800 $ 2066400
15 Rate Base T 8 $17840000 $17840000 16 Rate of Return 435 1158
012erating Ratio 17 Before Income Taxes 9179 8234 18 After Income Taxes amp Allowance 9664 9196
Not Appli cable
Allowance for interest and amortization related to streetcar abandonment of the past and for abandonmcnts proposed in Application No 35728
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LOS ANGELES TRANSIT Ln~S ESTH1ATE OF HILES TO i3LJ OERATEJJ FOR THE TlJ7IVE HONTHS-ENDING OCTOBER 31 1 q55
A UNDJilR PRESENT OPERATIONS B WITH HOTOR COACH SlfilSTITUTION AS PROPOSED IN APPLICATION NO 35n8
CASE I - PRESENT OPERlTI03S Present Fares Propose(l Fares
Estimatet Estimated Estimated Hiloago Estimated Est T)imirDl l4i Recluc-Estimatea Miles Miles (a) Decrease In Traffic Roduction Mileage of Traffiction Below Proposed
Item As Shown In Miles of the Decline Duo TrafficPresent FaresBelow TrafCol6 Due to Fares PDC Staff Dacrease9-15-54 to Docline (2) x At PrescntDiminution Col 6 x
________ (3) x (4) (100 - Col 5gt Fares (7) x (3) (100 - ColFJdlibLLJamp~Passengers ~-55 8) (1) (2) (3) (4) (5) (6) (7) (8) (9)
streetcar 12041861 30 43 L29 11587000 39 117 11748000
Trolley Coach 2546000 92573633 25f~ 43 1 075~b 3 0 975 2521000
Motor Coach (b) ]8li-~4 849 20 4 3~ 86 10 18106000 39 78 18163000bull I~
f-- ---J Total (b) 33080343 32739000 32432000
CASE II - OFSRATIONS PROPOSED IN APPLICATION NO 15728 Present Fares Proposed Fares
Item Estimatefl 1JIiles(a) As SnownEstimate~- Miles Present FarosEstimate~ Milos Proposed ___-~___------I=n~PDCStaff Exhibit No Col lOx (100 - Col 5) Faros Col llx (100-CQl~
(1) (10) (11) (12)
Stroetcar 6778211 6691000 6 61300O
Trolley Coach 2981376 2949000 2920000
Motor Coach (b) 236629)) 23459 1000 2276 7000
~Total (b) 33422542 33099000 32809000 ill r trl
(a) Based on th~ l ovel of traffic of Septombor 1954 I)
(b) To the estirl8ted milos shown here should bo a~dod 7500 Charter Miles
t-3
- - - - - - -
LOS kJGELES TRANSIT LINES Table 3 Sheet 1 of 3ESTIMATE OF RAIL OPERiTINGifiPENSES
CASE I - UNDER PRESENT OPERATIONS
Company Estfor 12 Mo~ Records Ending
Acct Jan-May 1954 103155 No I t e m Annualized Present Fares
Car Miles Way and Structures
1-24 ill Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 Superintendence 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conducting Transportation 63 Superintendence 64 Conductor Motormen etc 66 Car Service Emp 67 Miscel1 Car Service Exp 70 Car House Empa
Var other Cond Transp Accounts Total
Traffic 79 Superintendence 80 AdvertiSing
Total General
83 Gen Off - Sal and Exp 84 Gen Off Emp - Sal amp Exp 85 Gen Off a SuppJies amp Exps 88 Pensions
(93 Insurance PL amp PO (93 Insurance Workmens Comp (93 Insurance Other
Var Other General Accounts Total
Total Rail Operating Expense
Cents per Car Mile
12573226
$ 722615
$ 79078 759547 146522
$ 985141
$ 18190 174643 482945
23033 $ 698 811
$ 438900 3257666
104525 76608
351696 57240
$ 4286635
$ 6346 18353
$ 24699
$ 83645 123281
35570 4818S8 765019 46840 13664
287090 $ 1836967
$ 8554874
68004cent
ll887OOO
$ 722600
$ 79100 671200 147900
$ 898200
$) 18200 174600 547200
28900 $ 768900
$ 438900 2890900
104500 72200
351700 59600
$ 3917800
$ 6300 18400
$ 24700
$ 78900 123300 35600
456600 750400 ~ 43100 13700
282tl00 $ 1783700
$ 8115900
6827cent
Co
)
-
(1
I
flI
Car Miles Oper middot Exp Case I-B - Applicants Proposed Fares 11748000 $ 8047000 ~ Expenses Variable with Car Miles Wage rates used herein are those whieh
Ac30amp33 565 cent~ile prevailed immediately prior to 6154 59 460 The cost of the wage increase which 64 2432 tecomes fully effective on 12154 is 70 148 50 of total shown separately in Results of
Total 3605 centmile Operation table ~ See Table 5 for amounts under Proposed Fare
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- - - - - ------
LCB ANGELES TRANSIT LINFS Table 3 ESTIMATE OF TROLLEY COACH OPERATING EXPENSES Sheet 2 of 3
CASE I - UNDER PRESENT OPERATIONS
Acct No I t e m
Coach Miles Way and Structures
1-24 All Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 --superintendenoe 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conduoting Transportation 63 Superintendence 64 Operators Wages 70 Car House Employees
Var Other Condo Transp Accounts Total
Traffic 79 Superintendence 80 Advertising
Total General
83 Gen Off - Sal amp Exp 84 85
Gen Off Emp - Sal amp Exp Gen Off Supplies amp Exps
88 Pensions (93 Insurance PL amp PD (93 Insurance Worlanen s Comp (93 Insurance Other
Var Other General Accounts Total
Total Operating Expense
Cents per Mile
Case I-B - Applicants Proposed Fares
Expenses Variable with Coach Miles Acs 30amp33 477centmile
59 3038 64 2342 70 075 50 of total
Total 3232centjmi1e
~ See Table 5 for Amount Under Proposed Fares
Company Estfor 12 ME Recorda Ending Jan-May 1954 103155 I ~
Annualized Present Fares ~
2629188 2546000
$ 26518 $ 27000
$ 32628 $ 32600 125469 121400
11012 9600 $ 169109 $ 163600
$ 3770 $ 3800 35770 35BOO 75017 86000 1
8417 9000 $ 122974 $ 134600
$ 99161 $ 99200 612513 596300
38273 38300 21802 21500
$ 771749 $ 755300
$ 979 $ 1000 3588 3600
$ 4567 $ 4600
$ 15134 $ 12100 22990 23000 5669 5700
87614 83000 165089 97300 I
8516 8000 ~ 3054 3100
49076 48700 $ 357142 $ 280900 6
$1452059 $1366000
5523cent 5365cent
Coach Miles Oper Exp 2521000 $1355400 -- -0
Wage rates used herein are those which prevailed immedshyiately prior to 6154 The cost of the wage i~crease which becomes fully effective on 12154 is shown separately in Results of Operations table
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LOS ANGELES TRANS1 LINS TABLE 3 ESTIMATE OF MOTOR COAOH OPERATING EXPENSE Sheet 3 of 3
CASE I - UNDER PRESENT OPERATIONS
Company Estimate for Records 12 months
Jan - May Ending Acct 1954 103155 No I t e m Annualized Present Fares ~
Coach Miles 1832~158 18314000 Equipment Maintenance amp Gara~ Expense
4110 Supv - Shop and Gar $ 142788 $ 142800 4140-2 Repairs to Rev E~uipment 1097376 848800 4150 Servicing Rev Equipment 308373 307700 4160 Tires - Rev Equipment 123305 125200 Var Other Maint Accounts 151444 147300
Total $1823286 $1571800 Transportation Expense
4210 Supervision of Transp $ 487284 $ 487300 4220 Drivers I vrages 3767184 37589001= 3) bull
4230 522175 523800 )0
4240 Oil for Revenue Equipment 17256 19500 JOJ
Var Other Trans Exp Accounts 60153 58200 Total $4854052 $4847700
Traffic and Advertising 4470 Advertising $ 21593 $ 21600 Var Other Traffic Accounts 7)329 76500
Total $ 94922 $ 98100 Insurance
4510 Salaries and Expenses $ 18818 $ 18800 4520 Insurance PL amp PD 786322 542OOOp 4541 Insurance Workmens Compo 51458 50100p Var Other Insurance Exp 11357 11700 - shy
Fuel for Revenue Equipment _
J Total $ 867955 $ 622600 Administrative and General
4611-2 Gen Officers - Sal amp Exps $ 90806 $ 73500 4613-6 Gen Off Employees - Sal ampExp 138043 137000 4620 Law Expense 12910 16000 4630 Gen Office Supplies amp Exp 51689 44800 4640 Communication Expense 41143 45500 4652 Employees vlelfare 525737 498200 4655 Purchasing amp Stores 120790 120800 Var All Oth~r Adm amp Gen Exp 70090 53900
Total $1051208 $ 989700 Rents 15000 15000
Total Motor Coach Expense $8706423 $8144900 Cents per Mile 47middot50cent 4447cent
Coach Miles Ouer Exp Case I-B - Applicants Proposed Fares 18171 000 $8088900 -----shy
Expennes Variable with Milos Wage rates used herein are those which Ac 4140 463centmile prevailed immediately prior to 6154
4150 084 50 of total The cost of tho wage increase toJhich beshy4160 068 comes fully effective on 12154 is clnwn 4220 2052 separately in Results of Operation table 4230 286 4240 011
Total 2964centmile cent See Table 5 for Amount Under Proposed Fares 20 shy
TABLE 4
IDS ANGELES TRANSIT LUIES AMORTIZATION AND INTEREST ALLOWANCE
PAVING AND REMOVAL OBLIGATIONS - CASES I AND II APPLICATIONS NOS 35601 AND ~5728
A - Obligations from Abandonments Prior to 1954
Yearly Amortization $132000 Interest 16000
Total $148000
B - Obligations from Abandonment of Portions of IV and Rlt Lines (July 25 1954)
Yearly Amortization $ 4000 Interest 2000
Total $ 6000
C - Obligations from Abandonments as Proposed in Application No 35728 (November 1 154)
Yearly Amortization $ 35000 Interest 2JOOO
Total $ 55000
For Case I - Items A + B $154000
For Case II- Items A + B + C $209000
Includes cost of removal of electrical distribution system ($123700) and of substation equipment ($21600)
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LOS ANGELES TRAl~SIT Lli~S
RJBLIC LIABILITY PROPERTY DAl1AGE AND 1l0RIJftElI i S CCMFEi-TSATION EXPENSE illLATED TO SOUln~EbTT MILES Aim R3W-RLS PAS~lWEFS
CASE I - UNDER PRHSENT OPSHATIONS 1947 - 1950 Inc Jan-May Est FOr
Line Ito m 1951 1952 1953 195412 MosEnd No Total Av per Yr Annualizod 10 31 55
1 Lossos paid (n) $ 3890 $ 972 $ 1082 $ 902 $ 580 $ 262 2 Losses ostimato~ (a) 39 10 52 280 634 881 3 Reinsurance costs (a) 282 71 62 69 ____81 65 4 Total Losses_amp Insurance (a) $ 4211 $ 1053 $ 1196 $ 1251 $ 1295 $ 1208
5 Expenses paid (a) $ 1536 $ 384 $ 353 $ 385 $ 242 $ 170 6 Expenses estimated (a) 7 2 _ __ 11) 61 182 24S 7 Total expenses (a) $ 1543 $ middot 386 ~ 363 $ 446 $ 424 $415 8 Total LossesReiils amp Exp (a) $ 5754 $ 1439 1559 $ 1697 1719 $ 1622
(Lina 4- + 7) I 9 Number of claims filed 59991 14998 11588 11104 10246 9228
N
N 10 Vehiclo miles (millions) 153 4 384 356 351 346 336 I
11 Revenue Passon~crs (millions) 10093 2523 1924 1746 1661 1531
12 Loss Per 11i1 lliilos (4 ~ 10) ~27451 $27451 ~33596 $35~641 $37428 $35952 $35000
13 Loss Por i-Hllion Pass (4 11) $ 4172 $ 4172 ~ 6216 ) 7165 ~ 7797 $ 7890 $ 7500 14 Expensos por claim (7 f 9) h
ltfgt 2572 Y 25middot72 i) 3133 $ 4017 4138 $ 4497 $ 45 15 Claims per million miles (9 10) 391 391 326 316 296 275 280
16 Claims per million pass (9 11) 59 59 60 64 62 60 60
Ul p- CD (I)
(a) Thousand of dollars amp8
t-G o ~ H
J N
TABLE 5 LOS ANGELES TRANSIT LUTES Sheet 2 0 f 2
ESTIMATE OF PUBLIC LIABILITY AND PROPERTY DAMAGE AND WOBKMElJ 1 S COMPENSATION EXPENSES
FOR 12-MONTH PERIOD ENDING OCTOBER 31 1955 UNDER CASE I-A AND CASE I-B - PRESENT OPERATIONS ~lITH PRESENT amp PROPOSED FARES
Line 110
Cost Factors 1 Claims per million revenue passengers bull bull bull 2 raquo raquo vehicle miles bull bull bull 3 Expense per claim bull bull 4 Losses per million revenue passengers
raquo raquo vehicle miles bull bull bull bull 5 bull bull
60 280 45
7500 35000
Estimated Expense For PL and PD and Workmens Compensation Insurance
Case I-A Present Fares
6 Number of rovenue passengers (millions) 1395
7 Number of vehicle miles(millions) 3275
A - Basod on Number of Passengers 8 Losses 9 Expense
10 Total
B - Based 11 Losses 12 Expense 13 Total
$1046200 376700
$1422900
on Number of Vehicle Hiles $1146200
412700 $1558900
14 Average of A and B (PL amp PD and Workmen 6 Compo - $1490900
15 Workmens Compensation Insurance 101~200(a) 16 PL and PD Insurance 1389700
Distribution of Total PL amp PD Percent
17 Rail Operations 541 $ 750400 18 Trolloy Coach Operations 7 97300 19 Motor Coach Operations ~ -542000 20 Total 100 $1389700
Case I-B Proposed Fares
1341 3244
$1005700 362100
$1367800
$1135400 408700
$1544100
$1456000 100200 (b)
1355800
$ 732~100 94900
528800 $1355800
(a) Rail=$43lOO Trolley Coach=$8000 and Motor Coach=$50100
(b) Rail=$42 600_ Trolley Coach=$7 ~ 900 and Hotor Coach=$49 (00 _ --- I
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lA3LE 6
LOS ANGELES TRANSIT LINES ESTIHATE 041 OPERAT1NG TAXES
FOR 12 MONTHS ENDING OCTOBER 31 1955 CASE I - PRESENT OPERATIONS
APPLICATION NO 35601
Book Record Case I-A Case I-B L1ne I t e m 12 Months Present Proposed
No End 5-31~ Fares Fares(~ ) -=-----=-(3)~--=--~r(4~)~-(1)
1 City Franchise Taxes $ 473687 $ 434600 ~ 481900
2 Property Taxes-Ad Valorem 457963 435000 435000
3 Fuel and Oil Taxes 360580 337700 335100
4 Motor Vehicle License Taxes 136984 Ib8 900 168900
5 Transportation License 15600 21~00 (3 B of EHlshy
6 payroll Tuxes 265000 262500
Other raxes 7000 70007
Total ~ip 1 603 800
Net after weight fee credit
-24shy
U S Post Office
Pas senger s Revenue
Case I-A Present Fares 616000 $ middot88000
Caso r~B Proposed Fares 616000 105000
Token Adjustment
It is estimated that based upon tho present experience of applishy
cant three tokens out of 1000 tokens sold or 0356middot will never be redeemed
This amount will be considered as an added revenue and is estimated at
$20000 under present fares
Other Revenue
From such sources as rent interest on franchise bonds charter
advertising and miscellaneous there is an estimat~d rovenue of $187000
under all cases
Revenue under Case II - Proposed Motor Coach Substitution (Application No 35728)
UnderCas8s II-A and II-B proposed motor coach substitution the
estimated rovenue will be the same as in Cases I-A and I-B respectively
Mileage
The estimated mileage to be operated during the rate year is
shOllTn in Table 2 This estimated mileage is based upon a study by
Mr William F Hibbard Associate Transportation Engineer of the
Commissions staff and is shown as a separate exhibit in this matter
- 7 shy
Operating and Maintenance Expenses -- Case I
Estimates of operating and maintenance expenses are shown in
Table 3
General
Unless otherwise stated in the following paragraphs operating
and maintenance expenses are based on experience and conditions currently
prevailing In estimating operating and maintenance expenses it is
estimated that 100 new 48-passenger diesel coaches will start operating
at the beginning of the rate year replacing older coaches now in
operation These new coaches will slightly increase the fleet cost of
tires and substantially decrease the cost of Account No 4140 - Maintenance
Expense
Wages All wages are included in the detailed estimates
shown in Table 3 at the level prevailing immediately
prior to ~ 1 1954
Wage Increase The wage increase which becomes fully
effective on December 1 1954 is sh~m separately
on Line 12 in Table 10 Results of Operation
Fuel The cost of fuel is based upon the current level
of costs including an ircrease in the Sales Tax
on diesel of 05 effective July 1 1954 for
the City of Los Angeles
Tires The unit cost of tires is based on that prevailing
under contract for the period July 1 to Decernber-31
1954 The estimate of the cost of tires reflects the
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~ - - -- -- - - shy
estimated higher unit middot tire cost per mile for the
loa ne coaches which are to be put in operation at
the beginning of the rate year
Power The cost of power reflects the increase recently
granted to Southern California Edison Company by
this Commission
Public Liability and Property Damage Insurance and Workmens Compensation Insurance Coverage for these types
of insurance is carried with Transit Casualty
Company the stock of which is owned by the following
affiliated or subsidiary companies
Percent of Common Stock Owned
National City Lines 30 Los Angeles Transit Lines 24 St Louis Public Service Company 46
Total middot 100
From 1953 Annual Report to the Insurance Department State of California The present premium rate charged by Transit Casualty Company to applicant is 7 of passenger revenue In this report as in pre~ous reports the estimate of the Commissions staff has been predicated on unit costs related to the number of passengers carried and tho vehicle miles operated The estimate for Case I is shown in Table 5
Operating Expenses - Case II
Case II - Operating expenses are shown in detail in Table 11
and are based on operations of Casc I adjusted to reflect the estimated
decrease in rail expenses due to the abandOnroent of lItrEiet car operations
as proposed in Application No 35728 the increase in motor coach expenses
re~uired by the substitution of motor coach service for street car service
and the increase in trolley coach expense due to the conversion of Line
No 41 from motor coach operation to trolley coach operation with a
corresponding decrease in motor coach expenses
- 9 shy
Operating Taxes - Case I
Franchise Taxes cmd Business Licenses
Under Case I Present Operationafrnnchise taxes to the City of
Los Angeles were determined by applying current tax rates to estimated
revenues
Ad Vnlore~ Taxes
The estimate for ad valorem taxes under Case I is based on an
assessinent of $6496250 and a tax rate of $67402
Fuel Taxes
Fuel taxes are based on the following per gallon rntes of Federal
and State Taxes
illA Cents ner Ga11Qn Effectiye Dates
Diesel Federal 11-1-54 to 3-31-55 12i ~ 4-1-55 to 10-31-55
State 7 11-1-54 to 6-30-55 ~ 2 ~ 7-1-55 to 10-31-55
Gasoline Federal 2 ~1-1-54 to 3-31-55 11
2 ~ 4-1-55 to 10-31-55
State 6 ~ 11-1-54 to 6-30-55 5i cent 7-1-55 to 10-31-55
Motor Vehicle Licenses
The estinate for motor vehic10 licenses is based on the registrashy
tion weight and vehicle license fees Which will be in effect during 1955
under equipmontrequiremonts as sot forth in the report by Public Utilities
Commission Associate Engineer Wil1in~ F Hibbard
- 10 shy
Trapsportati CD Ii CADse Tax
This license tax is assessed by the Board cf Equalization and
represents 3~ of the gross revenue derived from operations in non-incorporated
areas by motor and trolley coaches The estimate is based on
curront tax rates applied to estimated revenues
Pavroll Taxes
Tho ratos in effect aro 2 for Social s~curity taxos and 03 for
Federal Unemployment Insurance Paymonts to tho State Unemployment funds
will remain at zero as a sufficient accumulation of funds is presently
on hand It is estimated that 94 of applicants total payroll will be
subject to Social Security Tax undor the increased coverago offective
January 1 1955 and that 100 of the employees are subject to FUI taxes
at $3000 per year
Other Taxes
Other taxos include operatorsl licenses Foderal transportation
ta~ manufacturers excise taxes and other miscellnneous taxes The
estimate is based on actwd experience for the yeor ending May 31 1954
Income Taxes
State Corpor8tion Franchise Taxes have been computed at the
current rate of 4 Federal Income Taxes have been computed on tho basis
of a change in rate effective April 1 1955 On this basis the normal
tax 0 f 30 was used for five months of the rata year and 25 for soven
months of the rate year Tho surtax of 22 remains constant throughout
the year In calculating income taxes in both Cnse I and CasarI an
interest credit of $100300 was used
- 11 shy
Rate Base and Depreciation Expense
In General
In accnrdance wi th current Cornmi ssion practice of treating all
property en a remaining life basis the Commission Staff has made an
analysis of Applicont1s property As 0 rosult as of January 1 1954
1 Motor coaches of the series 6200 6300 6600 6700 6800
and 6900 (404 coaches) were put on a total life basis of
12 years This is considered reasonable in view of the
attained age and the condition of the fleet
2 The annual accrual of the Genoral Office Building (Acct 522)
was adjusted to reflect a totel life of 50 years
3 Buildings in Accounts 523 and 524 were assigned a remaining
life of 24 years with depreciation reserve adjusted to reflect
age-life condition
Under both Cpses I and II 100 nel motor coaches have been included
in the rate base as of November 1 1954 tho beginning of the rate ye~r
Other Lpnd (Acct bull 503) and Rights of Way (Acct 502) hewe been
adjusted to reflect estimated original cost
Under Cese I
150 motor coaches of the 6000 and 6100 series (including current
work orders for rebuilding) have boen deleted due to the inclusion of the
100 new coaches as well as tc conform to the equipment roquirements set forth in
Staff Witness Hibbards Exhibit ith 10 f ~r spares
All property on group plan depreciation reflects the current
4 rate of accrual with nermal additions and retiroMents tken into considerashy
tion
The 40 P C C crrs on uni t plan depreCiation wore extended as
of Innuary 1 1954 to a total life of 25 years
12 shy
Under Case II
As evidenced by correspondenco betoJeen the Commission and
Applicant and the request for changes in accounting practices as outlined
in a letter from the Applicant to the Commission under date of April 291954
it is assumed that applicant intends to completely convert to motor coach
operation by the end of 1965 The Rate Base under Case II assumes that all
property relnted to the rail and trolley coach oper2tion ltlill be fully
depreciated by that time This would include all rel~ted items of property
hitherto considered non-dopreciable those rel~ted ~o the present proposed
conversion havo been charged to the group plan depreciation reserve as of
November I 1954 those remaining 2xe depreciated over ~ 12 year period
boginning January 1 1954
150 coaches of the 6000 and 6100 series have been included in order
to satisfy oquipment requirements as outlined by Staff litness Hibbards 1
Exhibit No The work orders for rebuilding 83 of those coachos have
been put on a 3 year lifo (Soc Chart 5)
In conjunction wi th the rate base presentAtion there are shown in
Chart ) pictures and data of the streetcars and trolley coach equipment as
of September 1 1954 Camp~rt 4 shows ~ictures and data of motor coach equipshy
mont as of September I 1954
Amortization and Interest Allowance
Amortization and Interest allowance f or abandcnment oblig~tionsunder
Cases I and II is sho~m in Table 4 The estimates ccntained therein refloct
an income tax credit on the total amount of the obligations The estimate
under Case I is fer obligations incurred prior to 1954 and oblig~tionsconcerned
nV ttwith changos on tho ruld tTRtl lines made effective JUly 25 1954 Under
- 13 shy
C~se II is added the estin~ted obligation in connecticn with the abandonment
nsprop0sed in Application No 35728
Results of Operatirn
Ou-so I Relbvant infr-rr1pticn sh0vm in the f0regcing text ancl
in the tables is summarized in Table 10 - Estimated
Results of Operation - Case I and from this informashy
tion a rate of return and operating ratios are
calculated under Present and Proposed Fares
Case II Using the basic inf0rmation as used in Table 10 in
c0 njunction with the estimate of operating expenses
for Caso II as shown in Table 11 the rates of
return and operating ratins under Case II are developed
in Table 12 - Estimated Results of Operation - Case II
- 14 shy
LO S ANGELES TRANSIT LINES
TREN 0 OF WEEKLY REVENUE- PASS ENGER5 (E)(CLU SIVE OF POSTAL EMPLOYEES AND RIDERS ON SCHOOL FARES)
FEBRUARY 1952 TOJULY 1954 AND
ESTIMATE FOR 12 MONTHS ENDING OCT 31 1955
~ 3middot5 W w ~
a w 0
_ I cJ)
a 30 uJ 19 Z UJ cJ) cJ)
laquo 0
IL 0 25
([)
z 0 J J
~
bull ~ I
l T
-
- -
ltI-N
- 2
- wr-
u
- 2
--
w
- u
A I
1 ( A A I
j
~ J r 1f
I a V J 1 fv V V ~J
V 1IV I 1 II I
I I Jr 0
~
l) - 0 (c
rlt1
gt bull r gt 0 10 z I z ~
I I I w iw
I
I I EST I~ATE FOR 12 foONTHS ENDING OCTOBER 31 1955 w I UNDER PRpoundSENT FARES-
I w
u A - PASSENGERS PER WEEK bullbullbullbullbullbullbullbullbullbullbullbull 2 596 000
u B - PASSENGERS PER yEAR bullbullbullbullbullbullbullbullbullbull 135 363 000
- Z Ii
w I
w I
lt I
u u i
it i--0 w
~ - -lt 0-H gt- =-1--1 a 0
-Y
VI
I
I )
T ~20
JAN f EBMAR APRoMAY J UN JUL AUG SEPOCTNOV DEC JANFEB MARAP R MAY JUNJULAUG SE P OCT NOVmCJANfEB MARAPRMAY JUN JUL AUG S EP OCTNOV DE C JAN FEB MAR APR IoiIAY JU N gt- c-+shy
rv1952 953 954 1955 Wl
LOS ANGELES TRANSIT LINES ESTIMATE OF REVEruE PASSENGERS lID PASSENGER REVENUE
FOR 12 MONTHS ENDInG OCTOBER 31 1955 CASE I AND CASE II APPLICATION NO 15601 AND NO 35728
Present Fares Applicants Proposed Fares Est
Percent of Dlmin- PassenshyLlne of Total Fare Zone Passengera Revenue Fare utlon cera Revenue -=-----Ho-- Item Orldnalt Adjusted (Cents) Paus i cent (Cents) ~ cent cent
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
Adul t Passengers
lOne-Zone 15 65 58599 $ 8790 17 333 56648 $ 9630 2 1427 35 31553 4507 17 475 )0054 5109 3 666 666 1475 100 90152 $13297 86702 $14739
4 Two-Zone 20 65 25780 $ 5156 23 3middot75 24813 $ 5707 5 1927 ~ 13881 2677 ~ 481 13212 30)9 6 293 293 19751 100 39661 $ 783) 38026 $ 8746
7 Three-Zone 25 65 3476 $ 869 29 400 3337 $ 968 a-- 8 2427 22 1871 454 29 485 1 180 516 I 9 38 395 2475 100 5)47 $ 1323 511 $ 1484
10 Four-~one )0 65 1)2 $ 39 35 417 126 $ 44shy11 2927 35 71 21 35 488 68 24 12 ~ ----l5 29 75f 100 20) $ 60 - 194 $ 68 13 Sub-Total 1000 1000 ~ 135363 $22513 1300)9 $25037 14 Holly Park 10 200 $ 20 10 200 $ 20 15 Total Adult 13556) $225)) 130239 $25057
16 School 9 2797 $ 252 10 278 2719 $ 272 17 School 12 561 67 15 625 526 79 18 Total School )358 $ )19 )245 $ 351 19 Post Office 1427 616 $ B8 17 616 $ 105 20 Grand Total 139537 $22940 1)4100 $25513
cent (000) Omi tted ~ 1F Weighted Average Fare ~ If See Chart 2 + + As deter~ined by traffic checks and used in previous Staff reports
CHART 3
rr LOS AtJGELES
TRANSIT LINES
STREET CAR AN 0 TROLLEY COAe H
EQUIPMENT AS OF
H4 OR K4 OPEN END WOODEN SEATS H3 CLOSED ENDLEATHER S EATS SEPTEMB E R f 1954
JIshy
OLDER T YPE OF PCC CAR NE WER TYPE OF PCC CAR
8000 SERIES TROLLEY COACH 9000 SERIES TROLLEY COACH 9100 S ERI ES TROLLEY COACH
STREET CARS TROLLEY COACHES
ALL H3 H4 K4 PCC OTHER TOTAL 8000 9000
SEATS 48 48 48 12 5-61 SEATS VARIOU 44 4540-28 SEATS
EQU IPME NT ASSIGNMENTS UNDER PRESENT CoMPANY BASIS EFFECTIVE SEPTEMBER 12
9100
46 TOTAL
SCHEDULED SPARES
TOTAL ASSIGNED UNASSIGNED
TOTAL OWNED
SCHEDULED
SPARES
TOTAL ASSIGNED UNASSIGNED
TOTAL OWNE D
354 22 57 5
411 2 37 101 13
60 165 37 512 40 EQUIP MENT RE QUIREMENTS PRESENT SERVICE FOR RATE YEAR)
354 36
390 122 512
34 6
40 30
81 16
81 9
90 20
110 EQUIPMENT REQUIREMENTS WITH SERVICE AS P ROPOSED IN
ApPLICATIO N 28 (FOR RATE YEAR
SCHEDULED 20431 23 150 93 4 2 21SPARES 1015
TOTAL ASSIGNED 165 22525 10335 UNASSIGNED - 7
TOTAL RETAINED 225 11025 16535 To BE RETIRED 0190 2 7 37 TOTAL Now OWNED 60 110512 215 165 3735
-lE- ESTI MA TED BY P U C STAFF E
2 r
C
-
6600 SER IE S 6700 AND 6900 SER IE S 6800 SER I ES
L I NE 6200 No TE~ 5000 6000 yf 6 100 yf 6300 6400 6600
MACK G M e G M e G M e G MC G M C I i~IA K( amp UODEl NUMBER C-45 -CT TD-4502 rn -4505 TO- 4506 TDH-5103 TOH shy 36 1 2 YE AR BUilT l~ 1940 1941 1945 1951 1947 3 DATE I N SERV I CE 7 -40 1-42 7 - 45 7 - 51 7 -47 4 NUMBER O F CoACHES 50 55 95 200 25 57 5 PU RCHAS ED NEW OR US ED N N
6 S EATI NG CAPAC IT Y 45 45 45 51 36 45 40
~ LE NG TH - OUT S I DE 3~ -0 3~ - 0 37 -0 3~ -6 30 - 6 3~ - 0 3~ -0 WI DTH - OU T S IDE -Oil _-ttl 8 -0 -611 8 - 2 _OM I - 0
9 HE I CHT - OU TS I DE 9 -6 9 shy 5t 9 -6 9 t 4t ll 9 - 2 9 0 9 -6 10 A I SL( HEADROOM 76 77 78 78 76shy 8 76
11 A ISLE WI DTH 19 2 1 26 22 22 20 12 TY PE O f DR I V( HYD HYD HYD HYO HYD HYD
13 BRA KE HORSE POWER amp FUE L 165io) 165( 0) 165(0) 110(0) 165(0) 165(0) 14 Bo DY f RAME MA TE R I AL AL AL AL AL AL NOT G I VE N 15 Bo DY PANEL ~1ATE R I AL AL AL AL AL AL NO T GI VEN
16 ROO F MATER I AL AL AL amp ST AL AL amp ST AL amp ST NO T G I VEN
~ ~ - AT DCC CMBER 3 1 1953shy14 26 15298AV ER AG E INVE ST PER CoACH $ ~ 21962 $ 13 992 17 60 14 209
19 INVESHIENT 1 354 9~ 3 059 506 549 044 7 97 5~ 2 lt164 650 99 466 10 000 509 20 RE SE RV E 1340 6 2 462 923 135951 503 6 1369 1 02 90 896 7 147 497
21 REM AIN ING VALUE (I NCL SALV) 14 250 596 583 413 093 293 869 1 095 548 8 570 2853 012 22 REMA I N I NG LIF E lOYR BAS I S 22 MO 90 MO 43 MO 52 MO 9 MO
23 REMAIN I NG L IFE 12YR BAS I 46 MO 90 MO 67 MO 76 MO 33 MO
yf THC COS T OF REBU IL DING 102 CoACHES OF THC 6000 AND 6 100 SE RIE S NOT I NCLUDE D HEREI N (SCE NEXT PACE)
1941 AN D 1942 MA T ER I AL S WE RE SuBJ ECT TO PR I OR I T ( S AND THEREFOR E STEEL WAS USE D IN PLACE OF
ALUMI NUM FO R BO DY FR AMES PAN EL S AND ROO FS I N SO ME COACHE S O F TH E TD- 4505 SERI ES
G - GASOl I NC D - D I CSE L AL - ALUM I NU M ST - Srr CL HYD - HYDRAUL I C
lt~i
~~4
CHART 4
LOS ANGELES TRANSIT LINES
MOTOR COACH EQUIPMENT
AS OF
SEPTEMB ER 1954IS_T 6000 SER I ES
6200 AND 6300 SER I ES
6
5 CHART
1~A~PLE OF THE DAMAGE TO BODY PANE LS M D RI VET ED JOINTS
2 - COACH WITH ALL BODY PANE LS Il l NDO V FR M1ES M~) SOIIE BO DY BRAC IN G REMOVED
l
LOS ANGELES TRANSIT LINES
PROGRAM OF
REBUILDING MOTOR COACHES
OF THE
6000 AND 6100 SERlES
j - PAR TI AL Re STO RA TI ON SODY PA NE LS Ix I I I )SI I ELD FRA Il E REPLA CED AFT ER kt C~ D I T I ON 116
I+ - AL L BO DY PANE LS AND S I DE W I~ DO J FRAhi ES RE shyPLACED AND ~ ESTO~ED
5 -INT ER IOR SHOW IN G CO MPLET E RE MOVAL OF SEATS AND OTHE R AC COUTERM ENTS REPLACED OR RECOND ITIO NED
6 -COMP LETE D I NTER l OR - t EIJ FLOO R
COV ER IN G WIT H S EAT CUSH IONS ETC
7 - COMP LET ED EXTER l OR COACH REPAI NTED AND READY FOR SERV I CE
I N 195 1 Los AN GELES T RANS IT LINES I NAUGURA TED A PROGRAM OF REBU IL D I NG GMC CoACHES OF THE
6 0 00 (BU ILT IN 1940) AND 61 00 ( BU ILT IN 1941) SER IE S A s OF JU LY 1954 62 COACH ES HAD BEE N
REBUILT WITH 40 ST ILL ON WORK ORDERS BUT IN PROCeSS THE CURRENT EST IM AT ED CO ST OF THIS
P ROGRMil I S AN AV ERAGE OF ~3500 PER COACH THE P U C S TAF F EST IMA TES THE LIF E OF TH ES E
COACH ES TO BE AN ADDIT IO NAL THR EE YEAR S FRO M DATE OF COMP LETI ON COS TS OF REB UILDING AR E
SHOWN I N THE RATE BAS E RE LATIV E TO THE APPROP RI ATE WORK ORDER AN D THEREFORE ARE NOT INCi UDEu
IN THE I NV ESH IENT FOR 60)0 AND 6100 S ERI ES COACH ES SHOWN ON CHAR T No 4
LOS ANGELES TRANSIT LINES SSTIMATED RATE BASE AND DEPRECHTION EXPENSE
12 I~ONTHS ENDING OCTOBSR 31 1955 CISE I - VnTH PRY-SENT METHOD OF SERTICE - APPLICATION NO 35601
Gum October 31 1954 As of October 31 1955
Line
No Item (1)
Iccnunt Number Invcstment
(2)
(3) Reserve
(4)
Inve stmen t Less
Reserve (5)
Remaining
Life (6)
In
Inve s tIDen t Less
vestment Reserve Reserve (7) (8) (9)
Depreciation Expense RAte YeAr
(10) LAND
1 2
Rights of VVAY Other Lmd
502 503
S 426974 1931112
$ 426974 1931112
$ middot 426974 1931112
$ 426974 $ 1931 112
EQUIP~NT ONl~ITDEPRECI~TION
3 Auto Tr011ey pcc53033Jf~034288 $ 7167640 $ 6866648 V3rious $14034288 $ 8125353 $ 5908935 $ 957713
PROPERTY ON GROUP DEPRECIATIJN OverheAQs
4 Engineering 501 $ 44651 $ 44651 OrgAnizAtiorfshy 546 601749 601749~ 5
6 Interest 547 middot 916884 916884 7 Gnding 504 1117084 1118084 8 All Other 505-545 27021634 4 Base 27141634 _____ _________ 9 Suttotal
(Lines 4 to 8) $29702002 $22441215 ~ 7260787 $29823002 ~23516286 $ 6306716 $1081071_
10 Tr)W(Lines 123 amp 9) ~46094376 $29608855 ~16485521 $46215376 $]1641639 $14573737 $2038784
11 RATE BASE Use - $2039000 12 Avenge 0f $16485521amp ~1+573 737 $15530000 13 Work in Progress 100000 14 M1terials amp Supplies 735000 15 Bond Deposit - City Fnnchise 411000 16 Deposit for PL Insurance 150000
17 Totil RAte BAse $16926000 8 t ~
-It- rhjor PArt of Acct 546 is Supervisinn --J
-----
LOS ANGELES TRI-NSIT LINES ESTThiIiTED Ri1TE BASE AND DEPRECllTION EXPENSE
12 NiONTHS ENDING OCTOBER 31 1955 CIlSE II - SSUMING MOTOR COACH SUBSTITUTION ON CERTHN RAIL LINES AS PROPOSED m iiPPLICilTION NO 35728
---- --------------- As f Oct)ber 31 195amp As of Oct0ber 31 1955 Inve sUn8nt Investment IBpreciaticn
Line Account Le ss REffiainin~ Less ExpensE No Item Number Inve-stmcnt ReS8riTe Reserve Life Investment Reserve ~ Reserve Rate Yeqr
(T) T2) 0) (Ii) (5) (6) (7) (8) (9) (10)
Ll~ND
1 Other LAnd 503 ~ 1925510 $ Ci 1925510 ~ 1925510 $ 1925510
EQUIP1A~NT ON UNIT DEPRECIATION 2 itutoIrol1eyPCC 5))3338 $16392563 $ 9323673 $ 7068890 Various $16392563 ~10391985 $ 6000578 $1068312
BUILDJNGS 3 General Office-~ 522 $ 916255 $ 563016 ~ 353239 1917 Yrs$ 916255 $ 581446 $ 334809 $ 18430 4 Shops Grgs Admin 523 amp524 2733772 1013500 1720272 2320 Yrs 2733772 1087633 1646139 74133 5 Subtotal (Lines 3 amp4) 3650027 ~ 1576516 gt 2073511 igt 3650027 11669079 ~ 1980948) 92563
~ PROPERTY ON GROUP DEPRECIATION Overheaas
6 Engineering 501) 7 Organizqtion 5~6) tt 1563178 ~ 1563178 8 Interest 547) 9 Grlding 504)
10 Righ ts of Vgy 502 117922 117922 11 All Other 505-5h5 15 651 31 7 15 771 31 7 ~---7-=-~-- lr-r-----=~ -x---r---~ 12 Subtotal (Lines 6 to 11) )17332417 $11343350 ~ 5989067 1117 Yramp$17452417 ~11833307 ~ 5619110 ~ 495957
13 Totql(Lines 125 amp 12) ~39300517 822243539 ~17056978 839420517 023894371 015526146 01656832
14 RATE BASE Use ~1657OOO 15 Avcr~ge of ~1705697B qnd )15526146 016292000 16 Nwk in Progre s s 100000 Am)unts sh)wn include lpplic3ble -werheqds fr)ll 17 Haterills amp Supplies 735000 Accnunts 546 amp 541 18 Bond Deposit - City Frqnchisc 411000 cent Investment ~d depreciation reserve assumes all 19 Deposit for PL Insurqnce 150000 retirements for the lines to be cmiddotmvcrted 1--3
20 Use Vqlue - Fully Depreciated CJtches 1)2000 ~re m~de 3S ) f November 1 1954 qnd that the ~ full unnunt middotf r e tirements qre charged to the EJ
21 Tot-l R1te Blse ~17840000 reserve co
10S ANG3LSS TRANSIT LI~S
INVESTWNT DSPRCIATICN R~SsRVS AND EXPSNS~ FOR ~QUIPMLNT ON UNIT PLAN DEPR3CHTION
CASES I AND II APPLICATIONS NO 35601 AND 35728
As of Oct0ber 31 ffi4 As of October 31 1955 Line NoTotal Investment fnvestment Depre No Item of Life Investment Reserve Less Investment Reserve Less Expense
Units Reserve Reserve Rate Year (1) (2) (J) 4) - ---(~ CD) en -- --8)----- -(9j- (10)
For Case I 1 Motor Coach Groups
62006300 66-6900 hOh 12 Yrs$6421159 $4728599 ~1692560 ~ 6421159 $ 500 1011 ~1330lh8 $ 362412 2 5000 6hoo 75 10 II 1486387 77~175 711212 1h86387 92h851 561536 149676 3 Coaches on order 100 10 II 2285400 2285400 2285400 2265J~0 2058860 226540
II
I 5 Automobiles 51 V3r 99485 50916 h8569 99485 66540 329h5 15624 ~ 6 Trucks amp Service Cars 56 II 280584 250572 30012 280584 265813 lh771 15241 I 7 Misc( Fare BoxesMotors) 170193 115191 55002 170193 122271 47922 7080
h Trolley Coaches 110 15 2108h09 908560 1199849 2108h09 1Oh6116 1062293 137556
8 Total of Lines 1 to 7 ~12851617 ~~6829013 ~02260h ~12i351617 ~ 77h3lh2 $5108475 $ 914129
9 PCC Rail Cars 40 25 rsJ~ 1182671 ) 338627 gt 84h04h 1182671 ~ 382211 ~ 800460 $ h3581~
10 Case I - Line 8 + Line 9 $14034288 $7167640 $6866648 ~14034288 $ 8125353 t5908935 $ 957713
For Case II
11 6000 amp 6100 Series MC 150 FD ~ 2092963 $2070463 ~ 22500 $ 2092963 $ 2070463 $ 22500 12 Work orders on 6000s
amp 6100 s 3 Yrs 265312 61860 203452 265312 144007 121305 $ 82147 13 PCC Rail Cars 401717 1182671 362 337__ ~~~ 334 1182671 43473 ___748298 72036
14 Case II - Lines 8 + 11+ 12+ 13 ~16392563 9323673 n068890 $16392563 ttl0391985 ~6ooo578 ~1068312
t-3
125 other PCC Cars are in Group Depreciation Schedule G ~
Note579 motor coaches under Case I and 729 under Case II D
LOS AlJGELES TRANSIT LnlES TABLE 10 ESTIMATE]) RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD E1TDUTG OCTOBER 31 1955 CASE I - UNDER PRESENT OPERATIONS
12 Months Jan-June
Line No Item
Tab1e Ending or May 31 1954 Page Fe fer
(2)
Book Record
(])
1954 Annualized
Book Record
(4)
Case I-A Present
Fares (5 )
Case I-B Applicant l s
Proposed Fares
(6)
1 Vehicle Miles T2 34036066 33569520 32747000 32440000
Revenue 2 3 4 5
Passenger Revenue Unredeemed Tokens Other Revenue Total
T1 P7 P7
$24849150
122402 $25044557
$24517866
183810 $24 701676
$22940000 $25513000 20000
1821 000 182 000 $23147000 $25700000
6 7 8
Operating Expenses Rail Trolley Coach Motor Coach
T3 T3 T3
$ 8493744 1442232 8622956
$ 8575232 1451430 8 n6470
$ 8115900 $ 8047000 1366000 1355400 8144200 8088900
9 10 11 12 13
Sub-Total Depreciation Operating Taxes Wage Increase Total
T7 T6
18563932 2176608 1676358
$22416898
18743132 2185804 1760600
$22689536
17626800 17491300~ 2039000 2039000 1663800 1711700
439800 436500 $21769400 $21678500
14 Operating Income $ 2627659 $ 20J2JJQ $ 1377600 $ 4021500 15 Other Inc amp Inc Deduct 21258 (9328)
16 Net Inc Before IncTaxes 2635217 2002742 1377600 4021500 I 17 Income Taxes (St ampFe~) 1302758 1026568 647500 1 999 000 18 Net Operating Income 1332459 976174 730100 2022 500 i 19 Allowance T4 112216 80752 1541000 1541000 20 Net Income $ 1220243 $ 895422 $576100 $ 1868500
21 Rate Base T7 $17393000 $16727000 $16926000 $16926000 22 Rate of Return 70~ 535 340 1104
Operating Ratio 23 Before Income Taxes 9405 8435 24 After Inc Taxes ampAllow 9751 927)
Not Applicable
Computed by PUC Staff Allowance for interest and amortization of abandoned property (Red ]figure)
- 31 shy
IDS ill~GElES TRANSIT LINES ESTIMATE OF OPERATllIG EX-degENSES JuID TAXES
FOR 12 f10NTHS ENDING OCTOBER 31 1955 CASE II - KOTOR COACH Sl~STITUTION - j~PLrCATION NO 35728
Table or Line Page Hotor Trolley
~To Item Reference Streetcar Coach Coach Total
l 2 3
4
I S
rv 6VJ
I 7 8 9
10 ll 12 13 Ih 15 16
17
13
(ll- -- shy
Vehicle Miles Case I - Present Operation Case II - Proposed Operation
Increase in i1iles
Opere amp I1aint Expense - Case I
Changes in Expense Due to Conversion Way and Structures Substation Operation Rail Crossing Protection Vehicle Maintenance Servicing of Vehicles Tires - Hotor Coach Equipment Operators vJages Fuel Oil or Power 21 amp PD Insurance ~Jorkmen I s Compensation Insurance Training Drivers for Conversion
Total Increase in Expense
Oper amp i1aint Expense - Case II (Line h +
Operating Taxes - Case II
(Red Figure)
(Z)
T2 T2
T3
Line 16)
D)
11887000 6691000
(5196000)
~ 8115900
t (11500) (42200) (55000)
(270900) (76900)
(1232900) (219800)
(liT shy
18314000 23h67000 5153000
amp 314~900
~
355000 h3300 32500
1154300 153000
-C5) (6)
2546000 32747000 2949000 33107000
403000 360000
S 1366000 ~gt 17 626800
If (144500) 1 ~ v$ ltW (42 200 ) - bull (55 000 ) 7HmiddotVj
19200 103300 M~ f~
3000 ( 30600) A N- i
32500 94400 15800 14600 (52206)
(1l1100) ~ [ (1200) Glh
30000 ~i
p (258200)
$17368600 r3
c~ 1786600 cr ill
I- CD
I- i-
TABLE 12
LOS ANGELES TRANSIT LINES ESTIMATED RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD ENDING OCTOBER 11 1955 CASE II - MOTOR COACH SUBSTITUTION - APPLICATION NO 15728
Table Case II-A Case II-B Line Item Refer- Present Proposed
Nos i FSles Faresect~nce
( 1) (2) (3) ( 4)
1 Vehicles Miles T 2 33107000 32817000
2 Operating Revenue T 10 $23147000 $25700000
O~erating E~ense
3 Operating and Maintenance Tll $17368600 $17234900 4 Depreciation T 8 1657000 1657000 5 Operating Taxes Tll 1786000 1837800 6 Wage Increase 434ZQQ 431 lt)00
Total $21246300 $211612007
8 Operating Income $ 1900700 $ 4538800 Other Inc amp Inc Deductions it 119
10 Net Income Before Income Taxes $ 1900700 $ 4538800 11 Income Taxes (State amp Federal) 214 200 2262 400 12 Net Operating Income $ 985800 $ 2275400 13 Allowance T 4 ~ 2090QO ~ 20200Q 14 Net Income $ 776800 $ 2066400
15 Rate Base T 8 $17840000 $17840000 16 Rate of Return 435 1158
012erating Ratio 17 Before Income Taxes 9179 8234 18 After Income Taxes amp Allowance 9664 9196
Not Appli cable
Allowance for interest and amortization related to streetcar abandonment of the past and for abandonmcnts proposed in Application No 35728
-33shy
LOS ANGELES TRANSIT Ln~S ESTH1ATE OF HILES TO i3LJ OERATEJJ FOR THE TlJ7IVE HONTHS-ENDING OCTOBER 31 1 q55
A UNDJilR PRESENT OPERATIONS B WITH HOTOR COACH SlfilSTITUTION AS PROPOSED IN APPLICATION NO 35n8
CASE I - PRESENT OPERlTI03S Present Fares Propose(l Fares
Estimatet Estimated Estimated Hiloago Estimated Est T)imirDl l4i Recluc-Estimatea Miles Miles (a) Decrease In Traffic Roduction Mileage of Traffiction Below Proposed
Item As Shown In Miles of the Decline Duo TrafficPresent FaresBelow TrafCol6 Due to Fares PDC Staff Dacrease9-15-54 to Docline (2) x At PrescntDiminution Col 6 x
________ (3) x (4) (100 - Col 5gt Fares (7) x (3) (100 - ColFJdlibLLJamp~Passengers ~-55 8) (1) (2) (3) (4) (5) (6) (7) (8) (9)
streetcar 12041861 30 43 L29 11587000 39 117 11748000
Trolley Coach 2546000 92573633 25f~ 43 1 075~b 3 0 975 2521000
Motor Coach (b) ]8li-~4 849 20 4 3~ 86 10 18106000 39 78 18163000bull I~
f-- ---J Total (b) 33080343 32739000 32432000
CASE II - OFSRATIONS PROPOSED IN APPLICATION NO 15728 Present Fares Proposed Fares
Item Estimatefl 1JIiles(a) As SnownEstimate~- Miles Present FarosEstimate~ Milos Proposed ___-~___------I=n~PDCStaff Exhibit No Col lOx (100 - Col 5) Faros Col llx (100-CQl~
(1) (10) (11) (12)
Stroetcar 6778211 6691000 6 61300O
Trolley Coach 2981376 2949000 2920000
Motor Coach (b) 236629)) 23459 1000 2276 7000
~Total (b) 33422542 33099000 32809000 ill r trl
(a) Based on th~ l ovel of traffic of Septombor 1954 I)
(b) To the estirl8ted milos shown here should bo a~dod 7500 Charter Miles
t-3
- - - - - - -
LOS kJGELES TRANSIT LINES Table 3 Sheet 1 of 3ESTIMATE OF RAIL OPERiTINGifiPENSES
CASE I - UNDER PRESENT OPERATIONS
Company Estfor 12 Mo~ Records Ending
Acct Jan-May 1954 103155 No I t e m Annualized Present Fares
Car Miles Way and Structures
1-24 ill Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 Superintendence 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conducting Transportation 63 Superintendence 64 Conductor Motormen etc 66 Car Service Emp 67 Miscel1 Car Service Exp 70 Car House Empa
Var other Cond Transp Accounts Total
Traffic 79 Superintendence 80 AdvertiSing
Total General
83 Gen Off - Sal and Exp 84 Gen Off Emp - Sal amp Exp 85 Gen Off a SuppJies amp Exps 88 Pensions
(93 Insurance PL amp PO (93 Insurance Workmens Comp (93 Insurance Other
Var Other General Accounts Total
Total Rail Operating Expense
Cents per Car Mile
12573226
$ 722615
$ 79078 759547 146522
$ 985141
$ 18190 174643 482945
23033 $ 698 811
$ 438900 3257666
104525 76608
351696 57240
$ 4286635
$ 6346 18353
$ 24699
$ 83645 123281
35570 4818S8 765019 46840 13664
287090 $ 1836967
$ 8554874
68004cent
ll887OOO
$ 722600
$ 79100 671200 147900
$ 898200
$) 18200 174600 547200
28900 $ 768900
$ 438900 2890900
104500 72200
351700 59600
$ 3917800
$ 6300 18400
$ 24700
$ 78900 123300 35600
456600 750400 ~ 43100 13700
282tl00 $ 1783700
$ 8115900
6827cent
Co
)
-
(1
I
flI
Car Miles Oper middot Exp Case I-B - Applicants Proposed Fares 11748000 $ 8047000 ~ Expenses Variable with Car Miles Wage rates used herein are those whieh
Ac30amp33 565 cent~ile prevailed immediately prior to 6154 59 460 The cost of the wage increase which 64 2432 tecomes fully effective on 12154 is 70 148 50 of total shown separately in Results of
Total 3605 centmile Operation table ~ See Table 5 for amounts under Proposed Fare
- 18 shy
- - - - - ------
LCB ANGELES TRANSIT LINFS Table 3 ESTIMATE OF TROLLEY COACH OPERATING EXPENSES Sheet 2 of 3
CASE I - UNDER PRESENT OPERATIONS
Acct No I t e m
Coach Miles Way and Structures
1-24 All Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 --superintendenoe 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conduoting Transportation 63 Superintendence 64 Operators Wages 70 Car House Employees
Var Other Condo Transp Accounts Total
Traffic 79 Superintendence 80 Advertising
Total General
83 Gen Off - Sal amp Exp 84 85
Gen Off Emp - Sal amp Exp Gen Off Supplies amp Exps
88 Pensions (93 Insurance PL amp PD (93 Insurance Worlanen s Comp (93 Insurance Other
Var Other General Accounts Total
Total Operating Expense
Cents per Mile
Case I-B - Applicants Proposed Fares
Expenses Variable with Coach Miles Acs 30amp33 477centmile
59 3038 64 2342 70 075 50 of total
Total 3232centjmi1e
~ See Table 5 for Amount Under Proposed Fares
Company Estfor 12 ME Recorda Ending Jan-May 1954 103155 I ~
Annualized Present Fares ~
2629188 2546000
$ 26518 $ 27000
$ 32628 $ 32600 125469 121400
11012 9600 $ 169109 $ 163600
$ 3770 $ 3800 35770 35BOO 75017 86000 1
8417 9000 $ 122974 $ 134600
$ 99161 $ 99200 612513 596300
38273 38300 21802 21500
$ 771749 $ 755300
$ 979 $ 1000 3588 3600
$ 4567 $ 4600
$ 15134 $ 12100 22990 23000 5669 5700
87614 83000 165089 97300 I
8516 8000 ~ 3054 3100
49076 48700 $ 357142 $ 280900 6
$1452059 $1366000
5523cent 5365cent
Coach Miles Oper Exp 2521000 $1355400 -- -0
Wage rates used herein are those which prevailed immedshyiately prior to 6154 The cost of the wage i~crease which becomes fully effective on 12154 is shown separately in Results of Operations table
- 19 shy
LOS ANGELES TRANS1 LINS TABLE 3 ESTIMATE OF MOTOR COAOH OPERATING EXPENSE Sheet 3 of 3
CASE I - UNDER PRESENT OPERATIONS
Company Estimate for Records 12 months
Jan - May Ending Acct 1954 103155 No I t e m Annualized Present Fares ~
Coach Miles 1832~158 18314000 Equipment Maintenance amp Gara~ Expense
4110 Supv - Shop and Gar $ 142788 $ 142800 4140-2 Repairs to Rev E~uipment 1097376 848800 4150 Servicing Rev Equipment 308373 307700 4160 Tires - Rev Equipment 123305 125200 Var Other Maint Accounts 151444 147300
Total $1823286 $1571800 Transportation Expense
4210 Supervision of Transp $ 487284 $ 487300 4220 Drivers I vrages 3767184 37589001= 3) bull
4230 522175 523800 )0
4240 Oil for Revenue Equipment 17256 19500 JOJ
Var Other Trans Exp Accounts 60153 58200 Total $4854052 $4847700
Traffic and Advertising 4470 Advertising $ 21593 $ 21600 Var Other Traffic Accounts 7)329 76500
Total $ 94922 $ 98100 Insurance
4510 Salaries and Expenses $ 18818 $ 18800 4520 Insurance PL amp PD 786322 542OOOp 4541 Insurance Workmens Compo 51458 50100p Var Other Insurance Exp 11357 11700 - shy
Fuel for Revenue Equipment _
J Total $ 867955 $ 622600 Administrative and General
4611-2 Gen Officers - Sal amp Exps $ 90806 $ 73500 4613-6 Gen Off Employees - Sal ampExp 138043 137000 4620 Law Expense 12910 16000 4630 Gen Office Supplies amp Exp 51689 44800 4640 Communication Expense 41143 45500 4652 Employees vlelfare 525737 498200 4655 Purchasing amp Stores 120790 120800 Var All Oth~r Adm amp Gen Exp 70090 53900
Total $1051208 $ 989700 Rents 15000 15000
Total Motor Coach Expense $8706423 $8144900 Cents per Mile 47middot50cent 4447cent
Coach Miles Ouer Exp Case I-B - Applicants Proposed Fares 18171 000 $8088900 -----shy
Expennes Variable with Milos Wage rates used herein are those which Ac 4140 463centmile prevailed immediately prior to 6154
4150 084 50 of total The cost of tho wage increase toJhich beshy4160 068 comes fully effective on 12154 is clnwn 4220 2052 separately in Results of Operation table 4230 286 4240 011
Total 2964centmile cent See Table 5 for Amount Under Proposed Fares 20 shy
TABLE 4
IDS ANGELES TRANSIT LUIES AMORTIZATION AND INTEREST ALLOWANCE
PAVING AND REMOVAL OBLIGATIONS - CASES I AND II APPLICATIONS NOS 35601 AND ~5728
A - Obligations from Abandonments Prior to 1954
Yearly Amortization $132000 Interest 16000
Total $148000
B - Obligations from Abandonment of Portions of IV and Rlt Lines (July 25 1954)
Yearly Amortization $ 4000 Interest 2000
Total $ 6000
C - Obligations from Abandonments as Proposed in Application No 35728 (November 1 154)
Yearly Amortization $ 35000 Interest 2JOOO
Total $ 55000
For Case I - Items A + B $154000
For Case II- Items A + B + C $209000
Includes cost of removal of electrical distribution system ($123700) and of substation equipment ($21600)
- 21 shy
LOS ANGELES TRAl~SIT Lli~S
RJBLIC LIABILITY PROPERTY DAl1AGE AND 1l0RIJftElI i S CCMFEi-TSATION EXPENSE illLATED TO SOUln~EbTT MILES Aim R3W-RLS PAS~lWEFS
CASE I - UNDER PRHSENT OPSHATIONS 1947 - 1950 Inc Jan-May Est FOr
Line Ito m 1951 1952 1953 195412 MosEnd No Total Av per Yr Annualizod 10 31 55
1 Lossos paid (n) $ 3890 $ 972 $ 1082 $ 902 $ 580 $ 262 2 Losses ostimato~ (a) 39 10 52 280 634 881 3 Reinsurance costs (a) 282 71 62 69 ____81 65 4 Total Losses_amp Insurance (a) $ 4211 $ 1053 $ 1196 $ 1251 $ 1295 $ 1208
5 Expenses paid (a) $ 1536 $ 384 $ 353 $ 385 $ 242 $ 170 6 Expenses estimated (a) 7 2 _ __ 11) 61 182 24S 7 Total expenses (a) $ 1543 $ middot 386 ~ 363 $ 446 $ 424 $415 8 Total LossesReiils amp Exp (a) $ 5754 $ 1439 1559 $ 1697 1719 $ 1622
(Lina 4- + 7) I 9 Number of claims filed 59991 14998 11588 11104 10246 9228
N
N 10 Vehiclo miles (millions) 153 4 384 356 351 346 336 I
11 Revenue Passon~crs (millions) 10093 2523 1924 1746 1661 1531
12 Loss Per 11i1 lliilos (4 ~ 10) ~27451 $27451 ~33596 $35~641 $37428 $35952 $35000
13 Loss Por i-Hllion Pass (4 11) $ 4172 $ 4172 ~ 6216 ) 7165 ~ 7797 $ 7890 $ 7500 14 Expensos por claim (7 f 9) h
ltfgt 2572 Y 25middot72 i) 3133 $ 4017 4138 $ 4497 $ 45 15 Claims per million miles (9 10) 391 391 326 316 296 275 280
16 Claims per million pass (9 11) 59 59 60 64 62 60 60
Ul p- CD (I)
(a) Thousand of dollars amp8
t-G o ~ H
J N
TABLE 5 LOS ANGELES TRANSIT LUTES Sheet 2 0 f 2
ESTIMATE OF PUBLIC LIABILITY AND PROPERTY DAMAGE AND WOBKMElJ 1 S COMPENSATION EXPENSES
FOR 12-MONTH PERIOD ENDING OCTOBER 31 1955 UNDER CASE I-A AND CASE I-B - PRESENT OPERATIONS ~lITH PRESENT amp PROPOSED FARES
Line 110
Cost Factors 1 Claims per million revenue passengers bull bull bull 2 raquo raquo vehicle miles bull bull bull 3 Expense per claim bull bull 4 Losses per million revenue passengers
raquo raquo vehicle miles bull bull bull bull 5 bull bull
60 280 45
7500 35000
Estimated Expense For PL and PD and Workmens Compensation Insurance
Case I-A Present Fares
6 Number of rovenue passengers (millions) 1395
7 Number of vehicle miles(millions) 3275
A - Basod on Number of Passengers 8 Losses 9 Expense
10 Total
B - Based 11 Losses 12 Expense 13 Total
$1046200 376700
$1422900
on Number of Vehicle Hiles $1146200
412700 $1558900
14 Average of A and B (PL amp PD and Workmen 6 Compo - $1490900
15 Workmens Compensation Insurance 101~200(a) 16 PL and PD Insurance 1389700
Distribution of Total PL amp PD Percent
17 Rail Operations 541 $ 750400 18 Trolloy Coach Operations 7 97300 19 Motor Coach Operations ~ -542000 20 Total 100 $1389700
Case I-B Proposed Fares
1341 3244
$1005700 362100
$1367800
$1135400 408700
$1544100
$1456000 100200 (b)
1355800
$ 732~100 94900
528800 $1355800
(a) Rail=$43lOO Trolley Coach=$8000 and Motor Coach=$50100
(b) Rail=$42 600_ Trolley Coach=$7 ~ 900 and Hotor Coach=$49 (00 _ --- I
- 23 shy
lA3LE 6
LOS ANGELES TRANSIT LINES ESTIHATE 041 OPERAT1NG TAXES
FOR 12 MONTHS ENDING OCTOBER 31 1955 CASE I - PRESENT OPERATIONS
APPLICATION NO 35601
Book Record Case I-A Case I-B L1ne I t e m 12 Months Present Proposed
No End 5-31~ Fares Fares(~ ) -=-----=-(3)~--=--~r(4~)~-(1)
1 City Franchise Taxes $ 473687 $ 434600 ~ 481900
2 Property Taxes-Ad Valorem 457963 435000 435000
3 Fuel and Oil Taxes 360580 337700 335100
4 Motor Vehicle License Taxes 136984 Ib8 900 168900
5 Transportation License 15600 21~00 (3 B of EHlshy
6 payroll Tuxes 265000 262500
Other raxes 7000 70007
Total ~ip 1 603 800
Net after weight fee credit
-24shy
Operating and Maintenance Expenses -- Case I
Estimates of operating and maintenance expenses are shown in
Table 3
General
Unless otherwise stated in the following paragraphs operating
and maintenance expenses are based on experience and conditions currently
prevailing In estimating operating and maintenance expenses it is
estimated that 100 new 48-passenger diesel coaches will start operating
at the beginning of the rate year replacing older coaches now in
operation These new coaches will slightly increase the fleet cost of
tires and substantially decrease the cost of Account No 4140 - Maintenance
Expense
Wages All wages are included in the detailed estimates
shown in Table 3 at the level prevailing immediately
prior to ~ 1 1954
Wage Increase The wage increase which becomes fully
effective on December 1 1954 is sh~m separately
on Line 12 in Table 10 Results of Operation
Fuel The cost of fuel is based upon the current level
of costs including an ircrease in the Sales Tax
on diesel of 05 effective July 1 1954 for
the City of Los Angeles
Tires The unit cost of tires is based on that prevailing
under contract for the period July 1 to Decernber-31
1954 The estimate of the cost of tires reflects the
- 8 shy
~ - - -- -- - - shy
estimated higher unit middot tire cost per mile for the
loa ne coaches which are to be put in operation at
the beginning of the rate year
Power The cost of power reflects the increase recently
granted to Southern California Edison Company by
this Commission
Public Liability and Property Damage Insurance and Workmens Compensation Insurance Coverage for these types
of insurance is carried with Transit Casualty
Company the stock of which is owned by the following
affiliated or subsidiary companies
Percent of Common Stock Owned
National City Lines 30 Los Angeles Transit Lines 24 St Louis Public Service Company 46
Total middot 100
From 1953 Annual Report to the Insurance Department State of California The present premium rate charged by Transit Casualty Company to applicant is 7 of passenger revenue In this report as in pre~ous reports the estimate of the Commissions staff has been predicated on unit costs related to the number of passengers carried and tho vehicle miles operated The estimate for Case I is shown in Table 5
Operating Expenses - Case II
Case II - Operating expenses are shown in detail in Table 11
and are based on operations of Casc I adjusted to reflect the estimated
decrease in rail expenses due to the abandOnroent of lItrEiet car operations
as proposed in Application No 35728 the increase in motor coach expenses
re~uired by the substitution of motor coach service for street car service
and the increase in trolley coach expense due to the conversion of Line
No 41 from motor coach operation to trolley coach operation with a
corresponding decrease in motor coach expenses
- 9 shy
Operating Taxes - Case I
Franchise Taxes cmd Business Licenses
Under Case I Present Operationafrnnchise taxes to the City of
Los Angeles were determined by applying current tax rates to estimated
revenues
Ad Vnlore~ Taxes
The estimate for ad valorem taxes under Case I is based on an
assessinent of $6496250 and a tax rate of $67402
Fuel Taxes
Fuel taxes are based on the following per gallon rntes of Federal
and State Taxes
illA Cents ner Ga11Qn Effectiye Dates
Diesel Federal 11-1-54 to 3-31-55 12i ~ 4-1-55 to 10-31-55
State 7 11-1-54 to 6-30-55 ~ 2 ~ 7-1-55 to 10-31-55
Gasoline Federal 2 ~1-1-54 to 3-31-55 11
2 ~ 4-1-55 to 10-31-55
State 6 ~ 11-1-54 to 6-30-55 5i cent 7-1-55 to 10-31-55
Motor Vehicle Licenses
The estinate for motor vehic10 licenses is based on the registrashy
tion weight and vehicle license fees Which will be in effect during 1955
under equipmontrequiremonts as sot forth in the report by Public Utilities
Commission Associate Engineer Wil1in~ F Hibbard
- 10 shy
Trapsportati CD Ii CADse Tax
This license tax is assessed by the Board cf Equalization and
represents 3~ of the gross revenue derived from operations in non-incorporated
areas by motor and trolley coaches The estimate is based on
curront tax rates applied to estimated revenues
Pavroll Taxes
Tho ratos in effect aro 2 for Social s~curity taxos and 03 for
Federal Unemployment Insurance Paymonts to tho State Unemployment funds
will remain at zero as a sufficient accumulation of funds is presently
on hand It is estimated that 94 of applicants total payroll will be
subject to Social Security Tax undor the increased coverago offective
January 1 1955 and that 100 of the employees are subject to FUI taxes
at $3000 per year
Other Taxes
Other taxos include operatorsl licenses Foderal transportation
ta~ manufacturers excise taxes and other miscellnneous taxes The
estimate is based on actwd experience for the yeor ending May 31 1954
Income Taxes
State Corpor8tion Franchise Taxes have been computed at the
current rate of 4 Federal Income Taxes have been computed on tho basis
of a change in rate effective April 1 1955 On this basis the normal
tax 0 f 30 was used for five months of the rata year and 25 for soven
months of the rate year Tho surtax of 22 remains constant throughout
the year In calculating income taxes in both Cnse I and CasarI an
interest credit of $100300 was used
- 11 shy
Rate Base and Depreciation Expense
In General
In accnrdance wi th current Cornmi ssion practice of treating all
property en a remaining life basis the Commission Staff has made an
analysis of Applicont1s property As 0 rosult as of January 1 1954
1 Motor coaches of the series 6200 6300 6600 6700 6800
and 6900 (404 coaches) were put on a total life basis of
12 years This is considered reasonable in view of the
attained age and the condition of the fleet
2 The annual accrual of the Genoral Office Building (Acct 522)
was adjusted to reflect a totel life of 50 years
3 Buildings in Accounts 523 and 524 were assigned a remaining
life of 24 years with depreciation reserve adjusted to reflect
age-life condition
Under both Cpses I and II 100 nel motor coaches have been included
in the rate base as of November 1 1954 tho beginning of the rate ye~r
Other Lpnd (Acct bull 503) and Rights of Way (Acct 502) hewe been
adjusted to reflect estimated original cost
Under Cese I
150 motor coaches of the 6000 and 6100 series (including current
work orders for rebuilding) have boen deleted due to the inclusion of the
100 new coaches as well as tc conform to the equipment roquirements set forth in
Staff Witness Hibbards Exhibit ith 10 f ~r spares
All property on group plan depreciation reflects the current
4 rate of accrual with nermal additions and retiroMents tken into considerashy
tion
The 40 P C C crrs on uni t plan depreCiation wore extended as
of Innuary 1 1954 to a total life of 25 years
12 shy
Under Case II
As evidenced by correspondenco betoJeen the Commission and
Applicant and the request for changes in accounting practices as outlined
in a letter from the Applicant to the Commission under date of April 291954
it is assumed that applicant intends to completely convert to motor coach
operation by the end of 1965 The Rate Base under Case II assumes that all
property relnted to the rail and trolley coach oper2tion ltlill be fully
depreciated by that time This would include all rel~ted items of property
hitherto considered non-dopreciable those rel~ted ~o the present proposed
conversion havo been charged to the group plan depreciation reserve as of
November I 1954 those remaining 2xe depreciated over ~ 12 year period
boginning January 1 1954
150 coaches of the 6000 and 6100 series have been included in order
to satisfy oquipment requirements as outlined by Staff litness Hibbards 1
Exhibit No The work orders for rebuilding 83 of those coachos have
been put on a 3 year lifo (Soc Chart 5)
In conjunction wi th the rate base presentAtion there are shown in
Chart ) pictures and data of the streetcars and trolley coach equipment as
of September 1 1954 Camp~rt 4 shows ~ictures and data of motor coach equipshy
mont as of September I 1954
Amortization and Interest Allowance
Amortization and Interest allowance f or abandcnment oblig~tionsunder
Cases I and II is sho~m in Table 4 The estimates ccntained therein refloct
an income tax credit on the total amount of the obligations The estimate
under Case I is fer obligations incurred prior to 1954 and oblig~tionsconcerned
nV ttwith changos on tho ruld tTRtl lines made effective JUly 25 1954 Under
- 13 shy
C~se II is added the estin~ted obligation in connecticn with the abandonment
nsprop0sed in Application No 35728
Results of Operatirn
Ou-so I Relbvant infr-rr1pticn sh0vm in the f0regcing text ancl
in the tables is summarized in Table 10 - Estimated
Results of Operation - Case I and from this informashy
tion a rate of return and operating ratios are
calculated under Present and Proposed Fares
Case II Using the basic inf0rmation as used in Table 10 in
c0 njunction with the estimate of operating expenses
for Caso II as shown in Table 11 the rates of
return and operating ratins under Case II are developed
in Table 12 - Estimated Results of Operation - Case II
- 14 shy
LO S ANGELES TRANSIT LINES
TREN 0 OF WEEKLY REVENUE- PASS ENGER5 (E)(CLU SIVE OF POSTAL EMPLOYEES AND RIDERS ON SCHOOL FARES)
FEBRUARY 1952 TOJULY 1954 AND
ESTIMATE FOR 12 MONTHS ENDING OCT 31 1955
~ 3middot5 W w ~
a w 0
_ I cJ)
a 30 uJ 19 Z UJ cJ) cJ)
laquo 0
IL 0 25
([)
z 0 J J
~
bull ~ I
l T
-
- -
ltI-N
- 2
- wr-
u
- 2
--
w
- u
A I
1 ( A A I
j
~ J r 1f
I a V J 1 fv V V ~J
V 1IV I 1 II I
I I Jr 0
~
l) - 0 (c
rlt1
gt bull r gt 0 10 z I z ~
I I I w iw
I
I I EST I~ATE FOR 12 foONTHS ENDING OCTOBER 31 1955 w I UNDER PRpoundSENT FARES-
I w
u A - PASSENGERS PER WEEK bullbullbullbullbullbullbullbullbullbullbullbull 2 596 000
u B - PASSENGERS PER yEAR bullbullbullbullbullbullbullbullbullbull 135 363 000
- Z Ii
w I
w I
lt I
u u i
it i--0 w
~ - -lt 0-H gt- =-1--1 a 0
-Y
VI
I
I )
T ~20
JAN f EBMAR APRoMAY J UN JUL AUG SEPOCTNOV DEC JANFEB MARAP R MAY JUNJULAUG SE P OCT NOVmCJANfEB MARAPRMAY JUN JUL AUG S EP OCTNOV DE C JAN FEB MAR APR IoiIAY JU N gt- c-+shy
rv1952 953 954 1955 Wl
LOS ANGELES TRANSIT LINES ESTIMATE OF REVEruE PASSENGERS lID PASSENGER REVENUE
FOR 12 MONTHS ENDInG OCTOBER 31 1955 CASE I AND CASE II APPLICATION NO 15601 AND NO 35728
Present Fares Applicants Proposed Fares Est
Percent of Dlmin- PassenshyLlne of Total Fare Zone Passengera Revenue Fare utlon cera Revenue -=-----Ho-- Item Orldnalt Adjusted (Cents) Paus i cent (Cents) ~ cent cent
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
Adul t Passengers
lOne-Zone 15 65 58599 $ 8790 17 333 56648 $ 9630 2 1427 35 31553 4507 17 475 )0054 5109 3 666 666 1475 100 90152 $13297 86702 $14739
4 Two-Zone 20 65 25780 $ 5156 23 3middot75 24813 $ 5707 5 1927 ~ 13881 2677 ~ 481 13212 30)9 6 293 293 19751 100 39661 $ 783) 38026 $ 8746
7 Three-Zone 25 65 3476 $ 869 29 400 3337 $ 968 a-- 8 2427 22 1871 454 29 485 1 180 516 I 9 38 395 2475 100 5)47 $ 1323 511 $ 1484
10 Four-~one )0 65 1)2 $ 39 35 417 126 $ 44shy11 2927 35 71 21 35 488 68 24 12 ~ ----l5 29 75f 100 20) $ 60 - 194 $ 68 13 Sub-Total 1000 1000 ~ 135363 $22513 1300)9 $25037 14 Holly Park 10 200 $ 20 10 200 $ 20 15 Total Adult 13556) $225)) 130239 $25057
16 School 9 2797 $ 252 10 278 2719 $ 272 17 School 12 561 67 15 625 526 79 18 Total School )358 $ )19 )245 $ 351 19 Post Office 1427 616 $ B8 17 616 $ 105 20 Grand Total 139537 $22940 1)4100 $25513
cent (000) Omi tted ~ 1F Weighted Average Fare ~ If See Chart 2 + + As deter~ined by traffic checks and used in previous Staff reports
CHART 3
rr LOS AtJGELES
TRANSIT LINES
STREET CAR AN 0 TROLLEY COAe H
EQUIPMENT AS OF
H4 OR K4 OPEN END WOODEN SEATS H3 CLOSED ENDLEATHER S EATS SEPTEMB E R f 1954
JIshy
OLDER T YPE OF PCC CAR NE WER TYPE OF PCC CAR
8000 SERIES TROLLEY COACH 9000 SERIES TROLLEY COACH 9100 S ERI ES TROLLEY COACH
STREET CARS TROLLEY COACHES
ALL H3 H4 K4 PCC OTHER TOTAL 8000 9000
SEATS 48 48 48 12 5-61 SEATS VARIOU 44 4540-28 SEATS
EQU IPME NT ASSIGNMENTS UNDER PRESENT CoMPANY BASIS EFFECTIVE SEPTEMBER 12
9100
46 TOTAL
SCHEDULED SPARES
TOTAL ASSIGNED UNASSIGNED
TOTAL OWNED
SCHEDULED
SPARES
TOTAL ASSIGNED UNASSIGNED
TOTAL OWNE D
354 22 57 5
411 2 37 101 13
60 165 37 512 40 EQUIP MENT RE QUIREMENTS PRESENT SERVICE FOR RATE YEAR)
354 36
390 122 512
34 6
40 30
81 16
81 9
90 20
110 EQUIPMENT REQUIREMENTS WITH SERVICE AS P ROPOSED IN
ApPLICATIO N 28 (FOR RATE YEAR
SCHEDULED 20431 23 150 93 4 2 21SPARES 1015
TOTAL ASSIGNED 165 22525 10335 UNASSIGNED - 7
TOTAL RETAINED 225 11025 16535 To BE RETIRED 0190 2 7 37 TOTAL Now OWNED 60 110512 215 165 3735
-lE- ESTI MA TED BY P U C STAFF E
2 r
C
-
6600 SER IE S 6700 AND 6900 SER IE S 6800 SER I ES
L I NE 6200 No TE~ 5000 6000 yf 6 100 yf 6300 6400 6600
MACK G M e G M e G M e G MC G M C I i~IA K( amp UODEl NUMBER C-45 -CT TD-4502 rn -4505 TO- 4506 TDH-5103 TOH shy 36 1 2 YE AR BUilT l~ 1940 1941 1945 1951 1947 3 DATE I N SERV I CE 7 -40 1-42 7 - 45 7 - 51 7 -47 4 NUMBER O F CoACHES 50 55 95 200 25 57 5 PU RCHAS ED NEW OR US ED N N
6 S EATI NG CAPAC IT Y 45 45 45 51 36 45 40
~ LE NG TH - OUT S I DE 3~ -0 3~ - 0 37 -0 3~ -6 30 - 6 3~ - 0 3~ -0 WI DTH - OU T S IDE -Oil _-ttl 8 -0 -611 8 - 2 _OM I - 0
9 HE I CHT - OU TS I DE 9 -6 9 shy 5t 9 -6 9 t 4t ll 9 - 2 9 0 9 -6 10 A I SL( HEADROOM 76 77 78 78 76shy 8 76
11 A ISLE WI DTH 19 2 1 26 22 22 20 12 TY PE O f DR I V( HYD HYD HYD HYO HYD HYD
13 BRA KE HORSE POWER amp FUE L 165io) 165( 0) 165(0) 110(0) 165(0) 165(0) 14 Bo DY f RAME MA TE R I AL AL AL AL AL AL NOT G I VE N 15 Bo DY PANEL ~1ATE R I AL AL AL AL AL AL NO T GI VEN
16 ROO F MATER I AL AL AL amp ST AL AL amp ST AL amp ST NO T G I VEN
~ ~ - AT DCC CMBER 3 1 1953shy14 26 15298AV ER AG E INVE ST PER CoACH $ ~ 21962 $ 13 992 17 60 14 209
19 INVESHIENT 1 354 9~ 3 059 506 549 044 7 97 5~ 2 lt164 650 99 466 10 000 509 20 RE SE RV E 1340 6 2 462 923 135951 503 6 1369 1 02 90 896 7 147 497
21 REM AIN ING VALUE (I NCL SALV) 14 250 596 583 413 093 293 869 1 095 548 8 570 2853 012 22 REMA I N I NG LIF E lOYR BAS I S 22 MO 90 MO 43 MO 52 MO 9 MO
23 REMAIN I NG L IFE 12YR BAS I 46 MO 90 MO 67 MO 76 MO 33 MO
yf THC COS T OF REBU IL DING 102 CoACHES OF THC 6000 AND 6 100 SE RIE S NOT I NCLUDE D HEREI N (SCE NEXT PACE)
1941 AN D 1942 MA T ER I AL S WE RE SuBJ ECT TO PR I OR I T ( S AND THEREFOR E STEEL WAS USE D IN PLACE OF
ALUMI NUM FO R BO DY FR AMES PAN EL S AND ROO FS I N SO ME COACHE S O F TH E TD- 4505 SERI ES
G - GASOl I NC D - D I CSE L AL - ALUM I NU M ST - Srr CL HYD - HYDRAUL I C
lt~i
~~4
CHART 4
LOS ANGELES TRANSIT LINES
MOTOR COACH EQUIPMENT
AS OF
SEPTEMB ER 1954IS_T 6000 SER I ES
6200 AND 6300 SER I ES
6
5 CHART
1~A~PLE OF THE DAMAGE TO BODY PANE LS M D RI VET ED JOINTS
2 - COACH WITH ALL BODY PANE LS Il l NDO V FR M1ES M~) SOIIE BO DY BRAC IN G REMOVED
l
LOS ANGELES TRANSIT LINES
PROGRAM OF
REBUILDING MOTOR COACHES
OF THE
6000 AND 6100 SERlES
j - PAR TI AL Re STO RA TI ON SODY PA NE LS Ix I I I )SI I ELD FRA Il E REPLA CED AFT ER kt C~ D I T I ON 116
I+ - AL L BO DY PANE LS AND S I DE W I~ DO J FRAhi ES RE shyPLACED AND ~ ESTO~ED
5 -INT ER IOR SHOW IN G CO MPLET E RE MOVAL OF SEATS AND OTHE R AC COUTERM ENTS REPLACED OR RECOND ITIO NED
6 -COMP LETE D I NTER l OR - t EIJ FLOO R
COV ER IN G WIT H S EAT CUSH IONS ETC
7 - COMP LET ED EXTER l OR COACH REPAI NTED AND READY FOR SERV I CE
I N 195 1 Los AN GELES T RANS IT LINES I NAUGURA TED A PROGRAM OF REBU IL D I NG GMC CoACHES OF THE
6 0 00 (BU ILT IN 1940) AND 61 00 ( BU ILT IN 1941) SER IE S A s OF JU LY 1954 62 COACH ES HAD BEE N
REBUILT WITH 40 ST ILL ON WORK ORDERS BUT IN PROCeSS THE CURRENT EST IM AT ED CO ST OF THIS
P ROGRMil I S AN AV ERAGE OF ~3500 PER COACH THE P U C S TAF F EST IMA TES THE LIF E OF TH ES E
COACH ES TO BE AN ADDIT IO NAL THR EE YEAR S FRO M DATE OF COMP LETI ON COS TS OF REB UILDING AR E
SHOWN I N THE RATE BAS E RE LATIV E TO THE APPROP RI ATE WORK ORDER AN D THEREFORE ARE NOT INCi UDEu
IN THE I NV ESH IENT FOR 60)0 AND 6100 S ERI ES COACH ES SHOWN ON CHAR T No 4
LOS ANGELES TRANSIT LINES SSTIMATED RATE BASE AND DEPRECHTION EXPENSE
12 I~ONTHS ENDING OCTOBSR 31 1955 CISE I - VnTH PRY-SENT METHOD OF SERTICE - APPLICATION NO 35601
Gum October 31 1954 As of October 31 1955
Line
No Item (1)
Iccnunt Number Invcstment
(2)
(3) Reserve
(4)
Inve stmen t Less
Reserve (5)
Remaining
Life (6)
In
Inve s tIDen t Less
vestment Reserve Reserve (7) (8) (9)
Depreciation Expense RAte YeAr
(10) LAND
1 2
Rights of VVAY Other Lmd
502 503
S 426974 1931112
$ 426974 1931112
$ middot 426974 1931112
$ 426974 $ 1931 112
EQUIP~NT ONl~ITDEPRECI~TION
3 Auto Tr011ey pcc53033Jf~034288 $ 7167640 $ 6866648 V3rious $14034288 $ 8125353 $ 5908935 $ 957713
PROPERTY ON GROUP DEPRECIATIJN OverheAQs
4 Engineering 501 $ 44651 $ 44651 OrgAnizAtiorfshy 546 601749 601749~ 5
6 Interest 547 middot 916884 916884 7 Gnding 504 1117084 1118084 8 All Other 505-545 27021634 4 Base 27141634 _____ _________ 9 Suttotal
(Lines 4 to 8) $29702002 $22441215 ~ 7260787 $29823002 ~23516286 $ 6306716 $1081071_
10 Tr)W(Lines 123 amp 9) ~46094376 $29608855 ~16485521 $46215376 $]1641639 $14573737 $2038784
11 RATE BASE Use - $2039000 12 Avenge 0f $16485521amp ~1+573 737 $15530000 13 Work in Progress 100000 14 M1terials amp Supplies 735000 15 Bond Deposit - City Fnnchise 411000 16 Deposit for PL Insurance 150000
17 Totil RAte BAse $16926000 8 t ~
-It- rhjor PArt of Acct 546 is Supervisinn --J
-----
LOS ANGELES TRI-NSIT LINES ESTThiIiTED Ri1TE BASE AND DEPRECllTION EXPENSE
12 NiONTHS ENDING OCTOBER 31 1955 CIlSE II - SSUMING MOTOR COACH SUBSTITUTION ON CERTHN RAIL LINES AS PROPOSED m iiPPLICilTION NO 35728
---- --------------- As f Oct)ber 31 195amp As of Oct0ber 31 1955 Inve sUn8nt Investment IBpreciaticn
Line Account Le ss REffiainin~ Less ExpensE No Item Number Inve-stmcnt ReS8riTe Reserve Life Investment Reserve ~ Reserve Rate Yeqr
(T) T2) 0) (Ii) (5) (6) (7) (8) (9) (10)
Ll~ND
1 Other LAnd 503 ~ 1925510 $ Ci 1925510 ~ 1925510 $ 1925510
EQUIP1A~NT ON UNIT DEPRECIATION 2 itutoIrol1eyPCC 5))3338 $16392563 $ 9323673 $ 7068890 Various $16392563 ~10391985 $ 6000578 $1068312
BUILDJNGS 3 General Office-~ 522 $ 916255 $ 563016 ~ 353239 1917 Yrs$ 916255 $ 581446 $ 334809 $ 18430 4 Shops Grgs Admin 523 amp524 2733772 1013500 1720272 2320 Yrs 2733772 1087633 1646139 74133 5 Subtotal (Lines 3 amp4) 3650027 ~ 1576516 gt 2073511 igt 3650027 11669079 ~ 1980948) 92563
~ PROPERTY ON GROUP DEPRECIATION Overheaas
6 Engineering 501) 7 Organizqtion 5~6) tt 1563178 ~ 1563178 8 Interest 547) 9 Grlding 504)
10 Righ ts of Vgy 502 117922 117922 11 All Other 505-5h5 15 651 31 7 15 771 31 7 ~---7-=-~-- lr-r-----=~ -x---r---~ 12 Subtotal (Lines 6 to 11) )17332417 $11343350 ~ 5989067 1117 Yramp$17452417 ~11833307 ~ 5619110 ~ 495957
13 Totql(Lines 125 amp 12) ~39300517 822243539 ~17056978 839420517 023894371 015526146 01656832
14 RATE BASE Use ~1657OOO 15 Avcr~ge of ~1705697B qnd )15526146 016292000 16 Nwk in Progre s s 100000 Am)unts sh)wn include lpplic3ble -werheqds fr)ll 17 Haterills amp Supplies 735000 Accnunts 546 amp 541 18 Bond Deposit - City Frqnchisc 411000 cent Investment ~d depreciation reserve assumes all 19 Deposit for PL Insurqnce 150000 retirements for the lines to be cmiddotmvcrted 1--3
20 Use Vqlue - Fully Depreciated CJtches 1)2000 ~re m~de 3S ) f November 1 1954 qnd that the ~ full unnunt middotf r e tirements qre charged to the EJ
21 Tot-l R1te Blse ~17840000 reserve co
10S ANG3LSS TRANSIT LI~S
INVESTWNT DSPRCIATICN R~SsRVS AND EXPSNS~ FOR ~QUIPMLNT ON UNIT PLAN DEPR3CHTION
CASES I AND II APPLICATIONS NO 35601 AND 35728
As of Oct0ber 31 ffi4 As of October 31 1955 Line NoTotal Investment fnvestment Depre No Item of Life Investment Reserve Less Investment Reserve Less Expense
Units Reserve Reserve Rate Year (1) (2) (J) 4) - ---(~ CD) en -- --8)----- -(9j- (10)
For Case I 1 Motor Coach Groups
62006300 66-6900 hOh 12 Yrs$6421159 $4728599 ~1692560 ~ 6421159 $ 500 1011 ~1330lh8 $ 362412 2 5000 6hoo 75 10 II 1486387 77~175 711212 1h86387 92h851 561536 149676 3 Coaches on order 100 10 II 2285400 2285400 2285400 2265J~0 2058860 226540
II
I 5 Automobiles 51 V3r 99485 50916 h8569 99485 66540 329h5 15624 ~ 6 Trucks amp Service Cars 56 II 280584 250572 30012 280584 265813 lh771 15241 I 7 Misc( Fare BoxesMotors) 170193 115191 55002 170193 122271 47922 7080
h Trolley Coaches 110 15 2108h09 908560 1199849 2108h09 1Oh6116 1062293 137556
8 Total of Lines 1 to 7 ~12851617 ~~6829013 ~02260h ~12i351617 ~ 77h3lh2 $5108475 $ 914129
9 PCC Rail Cars 40 25 rsJ~ 1182671 ) 338627 gt 84h04h 1182671 ~ 382211 ~ 800460 $ h3581~
10 Case I - Line 8 + Line 9 $14034288 $7167640 $6866648 ~14034288 $ 8125353 t5908935 $ 957713
For Case II
11 6000 amp 6100 Series MC 150 FD ~ 2092963 $2070463 ~ 22500 $ 2092963 $ 2070463 $ 22500 12 Work orders on 6000s
amp 6100 s 3 Yrs 265312 61860 203452 265312 144007 121305 $ 82147 13 PCC Rail Cars 401717 1182671 362 337__ ~~~ 334 1182671 43473 ___748298 72036
14 Case II - Lines 8 + 11+ 12+ 13 ~16392563 9323673 n068890 $16392563 ttl0391985 ~6ooo578 ~1068312
t-3
125 other PCC Cars are in Group Depreciation Schedule G ~
Note579 motor coaches under Case I and 729 under Case II D
LOS AlJGELES TRANSIT LnlES TABLE 10 ESTIMATE]) RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD E1TDUTG OCTOBER 31 1955 CASE I - UNDER PRESENT OPERATIONS
12 Months Jan-June
Line No Item
Tab1e Ending or May 31 1954 Page Fe fer
(2)
Book Record
(])
1954 Annualized
Book Record
(4)
Case I-A Present
Fares (5 )
Case I-B Applicant l s
Proposed Fares
(6)
1 Vehicle Miles T2 34036066 33569520 32747000 32440000
Revenue 2 3 4 5
Passenger Revenue Unredeemed Tokens Other Revenue Total
T1 P7 P7
$24849150
122402 $25044557
$24517866
183810 $24 701676
$22940000 $25513000 20000
1821 000 182 000 $23147000 $25700000
6 7 8
Operating Expenses Rail Trolley Coach Motor Coach
T3 T3 T3
$ 8493744 1442232 8622956
$ 8575232 1451430 8 n6470
$ 8115900 $ 8047000 1366000 1355400 8144200 8088900
9 10 11 12 13
Sub-Total Depreciation Operating Taxes Wage Increase Total
T7 T6
18563932 2176608 1676358
$22416898
18743132 2185804 1760600
$22689536
17626800 17491300~ 2039000 2039000 1663800 1711700
439800 436500 $21769400 $21678500
14 Operating Income $ 2627659 $ 20J2JJQ $ 1377600 $ 4021500 15 Other Inc amp Inc Deduct 21258 (9328)
16 Net Inc Before IncTaxes 2635217 2002742 1377600 4021500 I 17 Income Taxes (St ampFe~) 1302758 1026568 647500 1 999 000 18 Net Operating Income 1332459 976174 730100 2022 500 i 19 Allowance T4 112216 80752 1541000 1541000 20 Net Income $ 1220243 $ 895422 $576100 $ 1868500
21 Rate Base T7 $17393000 $16727000 $16926000 $16926000 22 Rate of Return 70~ 535 340 1104
Operating Ratio 23 Before Income Taxes 9405 8435 24 After Inc Taxes ampAllow 9751 927)
Not Applicable
Computed by PUC Staff Allowance for interest and amortization of abandoned property (Red ]figure)
- 31 shy
IDS ill~GElES TRANSIT LINES ESTIMATE OF OPERATllIG EX-degENSES JuID TAXES
FOR 12 f10NTHS ENDING OCTOBER 31 1955 CASE II - KOTOR COACH Sl~STITUTION - j~PLrCATION NO 35728
Table or Line Page Hotor Trolley
~To Item Reference Streetcar Coach Coach Total
l 2 3
4
I S
rv 6VJ
I 7 8 9
10 ll 12 13 Ih 15 16
17
13
(ll- -- shy
Vehicle Miles Case I - Present Operation Case II - Proposed Operation
Increase in i1iles
Opere amp I1aint Expense - Case I
Changes in Expense Due to Conversion Way and Structures Substation Operation Rail Crossing Protection Vehicle Maintenance Servicing of Vehicles Tires - Hotor Coach Equipment Operators vJages Fuel Oil or Power 21 amp PD Insurance ~Jorkmen I s Compensation Insurance Training Drivers for Conversion
Total Increase in Expense
Oper amp i1aint Expense - Case II (Line h +
Operating Taxes - Case II
(Red Figure)
(Z)
T2 T2
T3
Line 16)
D)
11887000 6691000
(5196000)
~ 8115900
t (11500) (42200) (55000)
(270900) (76900)
(1232900) (219800)
(liT shy
18314000 23h67000 5153000
amp 314~900
~
355000 h3300 32500
1154300 153000
-C5) (6)
2546000 32747000 2949000 33107000
403000 360000
S 1366000 ~gt 17 626800
If (144500) 1 ~ v$ ltW (42 200 ) - bull (55 000 ) 7HmiddotVj
19200 103300 M~ f~
3000 ( 30600) A N- i
32500 94400 15800 14600 (52206)
(1l1100) ~ [ (1200) Glh
30000 ~i
p (258200)
$17368600 r3
c~ 1786600 cr ill
I- CD
I- i-
TABLE 12
LOS ANGELES TRANSIT LINES ESTIMATED RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD ENDING OCTOBER 11 1955 CASE II - MOTOR COACH SUBSTITUTION - APPLICATION NO 15728
Table Case II-A Case II-B Line Item Refer- Present Proposed
Nos i FSles Faresect~nce
( 1) (2) (3) ( 4)
1 Vehicles Miles T 2 33107000 32817000
2 Operating Revenue T 10 $23147000 $25700000
O~erating E~ense
3 Operating and Maintenance Tll $17368600 $17234900 4 Depreciation T 8 1657000 1657000 5 Operating Taxes Tll 1786000 1837800 6 Wage Increase 434ZQQ 431 lt)00
Total $21246300 $211612007
8 Operating Income $ 1900700 $ 4538800 Other Inc amp Inc Deductions it 119
10 Net Income Before Income Taxes $ 1900700 $ 4538800 11 Income Taxes (State amp Federal) 214 200 2262 400 12 Net Operating Income $ 985800 $ 2275400 13 Allowance T 4 ~ 2090QO ~ 20200Q 14 Net Income $ 776800 $ 2066400
15 Rate Base T 8 $17840000 $17840000 16 Rate of Return 435 1158
012erating Ratio 17 Before Income Taxes 9179 8234 18 After Income Taxes amp Allowance 9664 9196
Not Appli cable
Allowance for interest and amortization related to streetcar abandonment of the past and for abandonmcnts proposed in Application No 35728
-33shy
LOS ANGELES TRANSIT Ln~S ESTH1ATE OF HILES TO i3LJ OERATEJJ FOR THE TlJ7IVE HONTHS-ENDING OCTOBER 31 1 q55
A UNDJilR PRESENT OPERATIONS B WITH HOTOR COACH SlfilSTITUTION AS PROPOSED IN APPLICATION NO 35n8
CASE I - PRESENT OPERlTI03S Present Fares Propose(l Fares
Estimatet Estimated Estimated Hiloago Estimated Est T)imirDl l4i Recluc-Estimatea Miles Miles (a) Decrease In Traffic Roduction Mileage of Traffiction Below Proposed
Item As Shown In Miles of the Decline Duo TrafficPresent FaresBelow TrafCol6 Due to Fares PDC Staff Dacrease9-15-54 to Docline (2) x At PrescntDiminution Col 6 x
________ (3) x (4) (100 - Col 5gt Fares (7) x (3) (100 - ColFJdlibLLJamp~Passengers ~-55 8) (1) (2) (3) (4) (5) (6) (7) (8) (9)
streetcar 12041861 30 43 L29 11587000 39 117 11748000
Trolley Coach 2546000 92573633 25f~ 43 1 075~b 3 0 975 2521000
Motor Coach (b) ]8li-~4 849 20 4 3~ 86 10 18106000 39 78 18163000bull I~
f-- ---J Total (b) 33080343 32739000 32432000
CASE II - OFSRATIONS PROPOSED IN APPLICATION NO 15728 Present Fares Proposed Fares
Item Estimatefl 1JIiles(a) As SnownEstimate~- Miles Present FarosEstimate~ Milos Proposed ___-~___------I=n~PDCStaff Exhibit No Col lOx (100 - Col 5) Faros Col llx (100-CQl~
(1) (10) (11) (12)
Stroetcar 6778211 6691000 6 61300O
Trolley Coach 2981376 2949000 2920000
Motor Coach (b) 236629)) 23459 1000 2276 7000
~Total (b) 33422542 33099000 32809000 ill r trl
(a) Based on th~ l ovel of traffic of Septombor 1954 I)
(b) To the estirl8ted milos shown here should bo a~dod 7500 Charter Miles
t-3
- - - - - - -
LOS kJGELES TRANSIT LINES Table 3 Sheet 1 of 3ESTIMATE OF RAIL OPERiTINGifiPENSES
CASE I - UNDER PRESENT OPERATIONS
Company Estfor 12 Mo~ Records Ending
Acct Jan-May 1954 103155 No I t e m Annualized Present Fares
Car Miles Way and Structures
1-24 ill Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 Superintendence 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conducting Transportation 63 Superintendence 64 Conductor Motormen etc 66 Car Service Emp 67 Miscel1 Car Service Exp 70 Car House Empa
Var other Cond Transp Accounts Total
Traffic 79 Superintendence 80 AdvertiSing
Total General
83 Gen Off - Sal and Exp 84 Gen Off Emp - Sal amp Exp 85 Gen Off a SuppJies amp Exps 88 Pensions
(93 Insurance PL amp PO (93 Insurance Workmens Comp (93 Insurance Other
Var Other General Accounts Total
Total Rail Operating Expense
Cents per Car Mile
12573226
$ 722615
$ 79078 759547 146522
$ 985141
$ 18190 174643 482945
23033 $ 698 811
$ 438900 3257666
104525 76608
351696 57240
$ 4286635
$ 6346 18353
$ 24699
$ 83645 123281
35570 4818S8 765019 46840 13664
287090 $ 1836967
$ 8554874
68004cent
ll887OOO
$ 722600
$ 79100 671200 147900
$ 898200
$) 18200 174600 547200
28900 $ 768900
$ 438900 2890900
104500 72200
351700 59600
$ 3917800
$ 6300 18400
$ 24700
$ 78900 123300 35600
456600 750400 ~ 43100 13700
282tl00 $ 1783700
$ 8115900
6827cent
Co
)
-
(1
I
flI
Car Miles Oper middot Exp Case I-B - Applicants Proposed Fares 11748000 $ 8047000 ~ Expenses Variable with Car Miles Wage rates used herein are those whieh
Ac30amp33 565 cent~ile prevailed immediately prior to 6154 59 460 The cost of the wage increase which 64 2432 tecomes fully effective on 12154 is 70 148 50 of total shown separately in Results of
Total 3605 centmile Operation table ~ See Table 5 for amounts under Proposed Fare
- 18 shy
- - - - - ------
LCB ANGELES TRANSIT LINFS Table 3 ESTIMATE OF TROLLEY COACH OPERATING EXPENSES Sheet 2 of 3
CASE I - UNDER PRESENT OPERATIONS
Acct No I t e m
Coach Miles Way and Structures
1-24 All Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 --superintendenoe 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conduoting Transportation 63 Superintendence 64 Operators Wages 70 Car House Employees
Var Other Condo Transp Accounts Total
Traffic 79 Superintendence 80 Advertising
Total General
83 Gen Off - Sal amp Exp 84 85
Gen Off Emp - Sal amp Exp Gen Off Supplies amp Exps
88 Pensions (93 Insurance PL amp PD (93 Insurance Worlanen s Comp (93 Insurance Other
Var Other General Accounts Total
Total Operating Expense
Cents per Mile
Case I-B - Applicants Proposed Fares
Expenses Variable with Coach Miles Acs 30amp33 477centmile
59 3038 64 2342 70 075 50 of total
Total 3232centjmi1e
~ See Table 5 for Amount Under Proposed Fares
Company Estfor 12 ME Recorda Ending Jan-May 1954 103155 I ~
Annualized Present Fares ~
2629188 2546000
$ 26518 $ 27000
$ 32628 $ 32600 125469 121400
11012 9600 $ 169109 $ 163600
$ 3770 $ 3800 35770 35BOO 75017 86000 1
8417 9000 $ 122974 $ 134600
$ 99161 $ 99200 612513 596300
38273 38300 21802 21500
$ 771749 $ 755300
$ 979 $ 1000 3588 3600
$ 4567 $ 4600
$ 15134 $ 12100 22990 23000 5669 5700
87614 83000 165089 97300 I
8516 8000 ~ 3054 3100
49076 48700 $ 357142 $ 280900 6
$1452059 $1366000
5523cent 5365cent
Coach Miles Oper Exp 2521000 $1355400 -- -0
Wage rates used herein are those which prevailed immedshyiately prior to 6154 The cost of the wage i~crease which becomes fully effective on 12154 is shown separately in Results of Operations table
- 19 shy
LOS ANGELES TRANS1 LINS TABLE 3 ESTIMATE OF MOTOR COAOH OPERATING EXPENSE Sheet 3 of 3
CASE I - UNDER PRESENT OPERATIONS
Company Estimate for Records 12 months
Jan - May Ending Acct 1954 103155 No I t e m Annualized Present Fares ~
Coach Miles 1832~158 18314000 Equipment Maintenance amp Gara~ Expense
4110 Supv - Shop and Gar $ 142788 $ 142800 4140-2 Repairs to Rev E~uipment 1097376 848800 4150 Servicing Rev Equipment 308373 307700 4160 Tires - Rev Equipment 123305 125200 Var Other Maint Accounts 151444 147300
Total $1823286 $1571800 Transportation Expense
4210 Supervision of Transp $ 487284 $ 487300 4220 Drivers I vrages 3767184 37589001= 3) bull
4230 522175 523800 )0
4240 Oil for Revenue Equipment 17256 19500 JOJ
Var Other Trans Exp Accounts 60153 58200 Total $4854052 $4847700
Traffic and Advertising 4470 Advertising $ 21593 $ 21600 Var Other Traffic Accounts 7)329 76500
Total $ 94922 $ 98100 Insurance
4510 Salaries and Expenses $ 18818 $ 18800 4520 Insurance PL amp PD 786322 542OOOp 4541 Insurance Workmens Compo 51458 50100p Var Other Insurance Exp 11357 11700 - shy
Fuel for Revenue Equipment _
J Total $ 867955 $ 622600 Administrative and General
4611-2 Gen Officers - Sal amp Exps $ 90806 $ 73500 4613-6 Gen Off Employees - Sal ampExp 138043 137000 4620 Law Expense 12910 16000 4630 Gen Office Supplies amp Exp 51689 44800 4640 Communication Expense 41143 45500 4652 Employees vlelfare 525737 498200 4655 Purchasing amp Stores 120790 120800 Var All Oth~r Adm amp Gen Exp 70090 53900
Total $1051208 $ 989700 Rents 15000 15000
Total Motor Coach Expense $8706423 $8144900 Cents per Mile 47middot50cent 4447cent
Coach Miles Ouer Exp Case I-B - Applicants Proposed Fares 18171 000 $8088900 -----shy
Expennes Variable with Milos Wage rates used herein are those which Ac 4140 463centmile prevailed immediately prior to 6154
4150 084 50 of total The cost of tho wage increase toJhich beshy4160 068 comes fully effective on 12154 is clnwn 4220 2052 separately in Results of Operation table 4230 286 4240 011
Total 2964centmile cent See Table 5 for Amount Under Proposed Fares 20 shy
TABLE 4
IDS ANGELES TRANSIT LUIES AMORTIZATION AND INTEREST ALLOWANCE
PAVING AND REMOVAL OBLIGATIONS - CASES I AND II APPLICATIONS NOS 35601 AND ~5728
A - Obligations from Abandonments Prior to 1954
Yearly Amortization $132000 Interest 16000
Total $148000
B - Obligations from Abandonment of Portions of IV and Rlt Lines (July 25 1954)
Yearly Amortization $ 4000 Interest 2000
Total $ 6000
C - Obligations from Abandonments as Proposed in Application No 35728 (November 1 154)
Yearly Amortization $ 35000 Interest 2JOOO
Total $ 55000
For Case I - Items A + B $154000
For Case II- Items A + B + C $209000
Includes cost of removal of electrical distribution system ($123700) and of substation equipment ($21600)
- 21 shy
LOS ANGELES TRAl~SIT Lli~S
RJBLIC LIABILITY PROPERTY DAl1AGE AND 1l0RIJftElI i S CCMFEi-TSATION EXPENSE illLATED TO SOUln~EbTT MILES Aim R3W-RLS PAS~lWEFS
CASE I - UNDER PRHSENT OPSHATIONS 1947 - 1950 Inc Jan-May Est FOr
Line Ito m 1951 1952 1953 195412 MosEnd No Total Av per Yr Annualizod 10 31 55
1 Lossos paid (n) $ 3890 $ 972 $ 1082 $ 902 $ 580 $ 262 2 Losses ostimato~ (a) 39 10 52 280 634 881 3 Reinsurance costs (a) 282 71 62 69 ____81 65 4 Total Losses_amp Insurance (a) $ 4211 $ 1053 $ 1196 $ 1251 $ 1295 $ 1208
5 Expenses paid (a) $ 1536 $ 384 $ 353 $ 385 $ 242 $ 170 6 Expenses estimated (a) 7 2 _ __ 11) 61 182 24S 7 Total expenses (a) $ 1543 $ middot 386 ~ 363 $ 446 $ 424 $415 8 Total LossesReiils amp Exp (a) $ 5754 $ 1439 1559 $ 1697 1719 $ 1622
(Lina 4- + 7) I 9 Number of claims filed 59991 14998 11588 11104 10246 9228
N
N 10 Vehiclo miles (millions) 153 4 384 356 351 346 336 I
11 Revenue Passon~crs (millions) 10093 2523 1924 1746 1661 1531
12 Loss Per 11i1 lliilos (4 ~ 10) ~27451 $27451 ~33596 $35~641 $37428 $35952 $35000
13 Loss Por i-Hllion Pass (4 11) $ 4172 $ 4172 ~ 6216 ) 7165 ~ 7797 $ 7890 $ 7500 14 Expensos por claim (7 f 9) h
ltfgt 2572 Y 25middot72 i) 3133 $ 4017 4138 $ 4497 $ 45 15 Claims per million miles (9 10) 391 391 326 316 296 275 280
16 Claims per million pass (9 11) 59 59 60 64 62 60 60
Ul p- CD (I)
(a) Thousand of dollars amp8
t-G o ~ H
J N
TABLE 5 LOS ANGELES TRANSIT LUTES Sheet 2 0 f 2
ESTIMATE OF PUBLIC LIABILITY AND PROPERTY DAMAGE AND WOBKMElJ 1 S COMPENSATION EXPENSES
FOR 12-MONTH PERIOD ENDING OCTOBER 31 1955 UNDER CASE I-A AND CASE I-B - PRESENT OPERATIONS ~lITH PRESENT amp PROPOSED FARES
Line 110
Cost Factors 1 Claims per million revenue passengers bull bull bull 2 raquo raquo vehicle miles bull bull bull 3 Expense per claim bull bull 4 Losses per million revenue passengers
raquo raquo vehicle miles bull bull bull bull 5 bull bull
60 280 45
7500 35000
Estimated Expense For PL and PD and Workmens Compensation Insurance
Case I-A Present Fares
6 Number of rovenue passengers (millions) 1395
7 Number of vehicle miles(millions) 3275
A - Basod on Number of Passengers 8 Losses 9 Expense
10 Total
B - Based 11 Losses 12 Expense 13 Total
$1046200 376700
$1422900
on Number of Vehicle Hiles $1146200
412700 $1558900
14 Average of A and B (PL amp PD and Workmen 6 Compo - $1490900
15 Workmens Compensation Insurance 101~200(a) 16 PL and PD Insurance 1389700
Distribution of Total PL amp PD Percent
17 Rail Operations 541 $ 750400 18 Trolloy Coach Operations 7 97300 19 Motor Coach Operations ~ -542000 20 Total 100 $1389700
Case I-B Proposed Fares
1341 3244
$1005700 362100
$1367800
$1135400 408700
$1544100
$1456000 100200 (b)
1355800
$ 732~100 94900
528800 $1355800
(a) Rail=$43lOO Trolley Coach=$8000 and Motor Coach=$50100
(b) Rail=$42 600_ Trolley Coach=$7 ~ 900 and Hotor Coach=$49 (00 _ --- I
- 23 shy
lA3LE 6
LOS ANGELES TRANSIT LINES ESTIHATE 041 OPERAT1NG TAXES
FOR 12 MONTHS ENDING OCTOBER 31 1955 CASE I - PRESENT OPERATIONS
APPLICATION NO 35601
Book Record Case I-A Case I-B L1ne I t e m 12 Months Present Proposed
No End 5-31~ Fares Fares(~ ) -=-----=-(3)~--=--~r(4~)~-(1)
1 City Franchise Taxes $ 473687 $ 434600 ~ 481900
2 Property Taxes-Ad Valorem 457963 435000 435000
3 Fuel and Oil Taxes 360580 337700 335100
4 Motor Vehicle License Taxes 136984 Ib8 900 168900
5 Transportation License 15600 21~00 (3 B of EHlshy
6 payroll Tuxes 265000 262500
Other raxes 7000 70007
Total ~ip 1 603 800
Net after weight fee credit
-24shy
estimated higher unit middot tire cost per mile for the
loa ne coaches which are to be put in operation at
the beginning of the rate year
Power The cost of power reflects the increase recently
granted to Southern California Edison Company by
this Commission
Public Liability and Property Damage Insurance and Workmens Compensation Insurance Coverage for these types
of insurance is carried with Transit Casualty
Company the stock of which is owned by the following
affiliated or subsidiary companies
Percent of Common Stock Owned
National City Lines 30 Los Angeles Transit Lines 24 St Louis Public Service Company 46
Total middot 100
From 1953 Annual Report to the Insurance Department State of California The present premium rate charged by Transit Casualty Company to applicant is 7 of passenger revenue In this report as in pre~ous reports the estimate of the Commissions staff has been predicated on unit costs related to the number of passengers carried and tho vehicle miles operated The estimate for Case I is shown in Table 5
Operating Expenses - Case II
Case II - Operating expenses are shown in detail in Table 11
and are based on operations of Casc I adjusted to reflect the estimated
decrease in rail expenses due to the abandOnroent of lItrEiet car operations
as proposed in Application No 35728 the increase in motor coach expenses
re~uired by the substitution of motor coach service for street car service
and the increase in trolley coach expense due to the conversion of Line
No 41 from motor coach operation to trolley coach operation with a
corresponding decrease in motor coach expenses
- 9 shy
Operating Taxes - Case I
Franchise Taxes cmd Business Licenses
Under Case I Present Operationafrnnchise taxes to the City of
Los Angeles were determined by applying current tax rates to estimated
revenues
Ad Vnlore~ Taxes
The estimate for ad valorem taxes under Case I is based on an
assessinent of $6496250 and a tax rate of $67402
Fuel Taxes
Fuel taxes are based on the following per gallon rntes of Federal
and State Taxes
illA Cents ner Ga11Qn Effectiye Dates
Diesel Federal 11-1-54 to 3-31-55 12i ~ 4-1-55 to 10-31-55
State 7 11-1-54 to 6-30-55 ~ 2 ~ 7-1-55 to 10-31-55
Gasoline Federal 2 ~1-1-54 to 3-31-55 11
2 ~ 4-1-55 to 10-31-55
State 6 ~ 11-1-54 to 6-30-55 5i cent 7-1-55 to 10-31-55
Motor Vehicle Licenses
The estinate for motor vehic10 licenses is based on the registrashy
tion weight and vehicle license fees Which will be in effect during 1955
under equipmontrequiremonts as sot forth in the report by Public Utilities
Commission Associate Engineer Wil1in~ F Hibbard
- 10 shy
Trapsportati CD Ii CADse Tax
This license tax is assessed by the Board cf Equalization and
represents 3~ of the gross revenue derived from operations in non-incorporated
areas by motor and trolley coaches The estimate is based on
curront tax rates applied to estimated revenues
Pavroll Taxes
Tho ratos in effect aro 2 for Social s~curity taxos and 03 for
Federal Unemployment Insurance Paymonts to tho State Unemployment funds
will remain at zero as a sufficient accumulation of funds is presently
on hand It is estimated that 94 of applicants total payroll will be
subject to Social Security Tax undor the increased coverago offective
January 1 1955 and that 100 of the employees are subject to FUI taxes
at $3000 per year
Other Taxes
Other taxos include operatorsl licenses Foderal transportation
ta~ manufacturers excise taxes and other miscellnneous taxes The
estimate is based on actwd experience for the yeor ending May 31 1954
Income Taxes
State Corpor8tion Franchise Taxes have been computed at the
current rate of 4 Federal Income Taxes have been computed on tho basis
of a change in rate effective April 1 1955 On this basis the normal
tax 0 f 30 was used for five months of the rata year and 25 for soven
months of the rate year Tho surtax of 22 remains constant throughout
the year In calculating income taxes in both Cnse I and CasarI an
interest credit of $100300 was used
- 11 shy
Rate Base and Depreciation Expense
In General
In accnrdance wi th current Cornmi ssion practice of treating all
property en a remaining life basis the Commission Staff has made an
analysis of Applicont1s property As 0 rosult as of January 1 1954
1 Motor coaches of the series 6200 6300 6600 6700 6800
and 6900 (404 coaches) were put on a total life basis of
12 years This is considered reasonable in view of the
attained age and the condition of the fleet
2 The annual accrual of the Genoral Office Building (Acct 522)
was adjusted to reflect a totel life of 50 years
3 Buildings in Accounts 523 and 524 were assigned a remaining
life of 24 years with depreciation reserve adjusted to reflect
age-life condition
Under both Cpses I and II 100 nel motor coaches have been included
in the rate base as of November 1 1954 tho beginning of the rate ye~r
Other Lpnd (Acct bull 503) and Rights of Way (Acct 502) hewe been
adjusted to reflect estimated original cost
Under Cese I
150 motor coaches of the 6000 and 6100 series (including current
work orders for rebuilding) have boen deleted due to the inclusion of the
100 new coaches as well as tc conform to the equipment roquirements set forth in
Staff Witness Hibbards Exhibit ith 10 f ~r spares
All property on group plan depreciation reflects the current
4 rate of accrual with nermal additions and retiroMents tken into considerashy
tion
The 40 P C C crrs on uni t plan depreCiation wore extended as
of Innuary 1 1954 to a total life of 25 years
12 shy
Under Case II
As evidenced by correspondenco betoJeen the Commission and
Applicant and the request for changes in accounting practices as outlined
in a letter from the Applicant to the Commission under date of April 291954
it is assumed that applicant intends to completely convert to motor coach
operation by the end of 1965 The Rate Base under Case II assumes that all
property relnted to the rail and trolley coach oper2tion ltlill be fully
depreciated by that time This would include all rel~ted items of property
hitherto considered non-dopreciable those rel~ted ~o the present proposed
conversion havo been charged to the group plan depreciation reserve as of
November I 1954 those remaining 2xe depreciated over ~ 12 year period
boginning January 1 1954
150 coaches of the 6000 and 6100 series have been included in order
to satisfy oquipment requirements as outlined by Staff litness Hibbards 1
Exhibit No The work orders for rebuilding 83 of those coachos have
been put on a 3 year lifo (Soc Chart 5)
In conjunction wi th the rate base presentAtion there are shown in
Chart ) pictures and data of the streetcars and trolley coach equipment as
of September 1 1954 Camp~rt 4 shows ~ictures and data of motor coach equipshy
mont as of September I 1954
Amortization and Interest Allowance
Amortization and Interest allowance f or abandcnment oblig~tionsunder
Cases I and II is sho~m in Table 4 The estimates ccntained therein refloct
an income tax credit on the total amount of the obligations The estimate
under Case I is fer obligations incurred prior to 1954 and oblig~tionsconcerned
nV ttwith changos on tho ruld tTRtl lines made effective JUly 25 1954 Under
- 13 shy
C~se II is added the estin~ted obligation in connecticn with the abandonment
nsprop0sed in Application No 35728
Results of Operatirn
Ou-so I Relbvant infr-rr1pticn sh0vm in the f0regcing text ancl
in the tables is summarized in Table 10 - Estimated
Results of Operation - Case I and from this informashy
tion a rate of return and operating ratios are
calculated under Present and Proposed Fares
Case II Using the basic inf0rmation as used in Table 10 in
c0 njunction with the estimate of operating expenses
for Caso II as shown in Table 11 the rates of
return and operating ratins under Case II are developed
in Table 12 - Estimated Results of Operation - Case II
- 14 shy
LO S ANGELES TRANSIT LINES
TREN 0 OF WEEKLY REVENUE- PASS ENGER5 (E)(CLU SIVE OF POSTAL EMPLOYEES AND RIDERS ON SCHOOL FARES)
FEBRUARY 1952 TOJULY 1954 AND
ESTIMATE FOR 12 MONTHS ENDING OCT 31 1955
~ 3middot5 W w ~
a w 0
_ I cJ)
a 30 uJ 19 Z UJ cJ) cJ)
laquo 0
IL 0 25
([)
z 0 J J
~
bull ~ I
l T
-
- -
ltI-N
- 2
- wr-
u
- 2
--
w
- u
A I
1 ( A A I
j
~ J r 1f
I a V J 1 fv V V ~J
V 1IV I 1 II I
I I Jr 0
~
l) - 0 (c
rlt1
gt bull r gt 0 10 z I z ~
I I I w iw
I
I I EST I~ATE FOR 12 foONTHS ENDING OCTOBER 31 1955 w I UNDER PRpoundSENT FARES-
I w
u A - PASSENGERS PER WEEK bullbullbullbullbullbullbullbullbullbullbullbull 2 596 000
u B - PASSENGERS PER yEAR bullbullbullbullbullbullbullbullbullbull 135 363 000
- Z Ii
w I
w I
lt I
u u i
it i--0 w
~ - -lt 0-H gt- =-1--1 a 0
-Y
VI
I
I )
T ~20
JAN f EBMAR APRoMAY J UN JUL AUG SEPOCTNOV DEC JANFEB MARAP R MAY JUNJULAUG SE P OCT NOVmCJANfEB MARAPRMAY JUN JUL AUG S EP OCTNOV DE C JAN FEB MAR APR IoiIAY JU N gt- c-+shy
rv1952 953 954 1955 Wl
LOS ANGELES TRANSIT LINES ESTIMATE OF REVEruE PASSENGERS lID PASSENGER REVENUE
FOR 12 MONTHS ENDInG OCTOBER 31 1955 CASE I AND CASE II APPLICATION NO 15601 AND NO 35728
Present Fares Applicants Proposed Fares Est
Percent of Dlmin- PassenshyLlne of Total Fare Zone Passengera Revenue Fare utlon cera Revenue -=-----Ho-- Item Orldnalt Adjusted (Cents) Paus i cent (Cents) ~ cent cent
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
Adul t Passengers
lOne-Zone 15 65 58599 $ 8790 17 333 56648 $ 9630 2 1427 35 31553 4507 17 475 )0054 5109 3 666 666 1475 100 90152 $13297 86702 $14739
4 Two-Zone 20 65 25780 $ 5156 23 3middot75 24813 $ 5707 5 1927 ~ 13881 2677 ~ 481 13212 30)9 6 293 293 19751 100 39661 $ 783) 38026 $ 8746
7 Three-Zone 25 65 3476 $ 869 29 400 3337 $ 968 a-- 8 2427 22 1871 454 29 485 1 180 516 I 9 38 395 2475 100 5)47 $ 1323 511 $ 1484
10 Four-~one )0 65 1)2 $ 39 35 417 126 $ 44shy11 2927 35 71 21 35 488 68 24 12 ~ ----l5 29 75f 100 20) $ 60 - 194 $ 68 13 Sub-Total 1000 1000 ~ 135363 $22513 1300)9 $25037 14 Holly Park 10 200 $ 20 10 200 $ 20 15 Total Adult 13556) $225)) 130239 $25057
16 School 9 2797 $ 252 10 278 2719 $ 272 17 School 12 561 67 15 625 526 79 18 Total School )358 $ )19 )245 $ 351 19 Post Office 1427 616 $ B8 17 616 $ 105 20 Grand Total 139537 $22940 1)4100 $25513
cent (000) Omi tted ~ 1F Weighted Average Fare ~ If See Chart 2 + + As deter~ined by traffic checks and used in previous Staff reports
CHART 3
rr LOS AtJGELES
TRANSIT LINES
STREET CAR AN 0 TROLLEY COAe H
EQUIPMENT AS OF
H4 OR K4 OPEN END WOODEN SEATS H3 CLOSED ENDLEATHER S EATS SEPTEMB E R f 1954
JIshy
OLDER T YPE OF PCC CAR NE WER TYPE OF PCC CAR
8000 SERIES TROLLEY COACH 9000 SERIES TROLLEY COACH 9100 S ERI ES TROLLEY COACH
STREET CARS TROLLEY COACHES
ALL H3 H4 K4 PCC OTHER TOTAL 8000 9000
SEATS 48 48 48 12 5-61 SEATS VARIOU 44 4540-28 SEATS
EQU IPME NT ASSIGNMENTS UNDER PRESENT CoMPANY BASIS EFFECTIVE SEPTEMBER 12
9100
46 TOTAL
SCHEDULED SPARES
TOTAL ASSIGNED UNASSIGNED
TOTAL OWNED
SCHEDULED
SPARES
TOTAL ASSIGNED UNASSIGNED
TOTAL OWNE D
354 22 57 5
411 2 37 101 13
60 165 37 512 40 EQUIP MENT RE QUIREMENTS PRESENT SERVICE FOR RATE YEAR)
354 36
390 122 512
34 6
40 30
81 16
81 9
90 20
110 EQUIPMENT REQUIREMENTS WITH SERVICE AS P ROPOSED IN
ApPLICATIO N 28 (FOR RATE YEAR
SCHEDULED 20431 23 150 93 4 2 21SPARES 1015
TOTAL ASSIGNED 165 22525 10335 UNASSIGNED - 7
TOTAL RETAINED 225 11025 16535 To BE RETIRED 0190 2 7 37 TOTAL Now OWNED 60 110512 215 165 3735
-lE- ESTI MA TED BY P U C STAFF E
2 r
C
-
6600 SER IE S 6700 AND 6900 SER IE S 6800 SER I ES
L I NE 6200 No TE~ 5000 6000 yf 6 100 yf 6300 6400 6600
MACK G M e G M e G M e G MC G M C I i~IA K( amp UODEl NUMBER C-45 -CT TD-4502 rn -4505 TO- 4506 TDH-5103 TOH shy 36 1 2 YE AR BUilT l~ 1940 1941 1945 1951 1947 3 DATE I N SERV I CE 7 -40 1-42 7 - 45 7 - 51 7 -47 4 NUMBER O F CoACHES 50 55 95 200 25 57 5 PU RCHAS ED NEW OR US ED N N
6 S EATI NG CAPAC IT Y 45 45 45 51 36 45 40
~ LE NG TH - OUT S I DE 3~ -0 3~ - 0 37 -0 3~ -6 30 - 6 3~ - 0 3~ -0 WI DTH - OU T S IDE -Oil _-ttl 8 -0 -611 8 - 2 _OM I - 0
9 HE I CHT - OU TS I DE 9 -6 9 shy 5t 9 -6 9 t 4t ll 9 - 2 9 0 9 -6 10 A I SL( HEADROOM 76 77 78 78 76shy 8 76
11 A ISLE WI DTH 19 2 1 26 22 22 20 12 TY PE O f DR I V( HYD HYD HYD HYO HYD HYD
13 BRA KE HORSE POWER amp FUE L 165io) 165( 0) 165(0) 110(0) 165(0) 165(0) 14 Bo DY f RAME MA TE R I AL AL AL AL AL AL NOT G I VE N 15 Bo DY PANEL ~1ATE R I AL AL AL AL AL AL NO T GI VEN
16 ROO F MATER I AL AL AL amp ST AL AL amp ST AL amp ST NO T G I VEN
~ ~ - AT DCC CMBER 3 1 1953shy14 26 15298AV ER AG E INVE ST PER CoACH $ ~ 21962 $ 13 992 17 60 14 209
19 INVESHIENT 1 354 9~ 3 059 506 549 044 7 97 5~ 2 lt164 650 99 466 10 000 509 20 RE SE RV E 1340 6 2 462 923 135951 503 6 1369 1 02 90 896 7 147 497
21 REM AIN ING VALUE (I NCL SALV) 14 250 596 583 413 093 293 869 1 095 548 8 570 2853 012 22 REMA I N I NG LIF E lOYR BAS I S 22 MO 90 MO 43 MO 52 MO 9 MO
23 REMAIN I NG L IFE 12YR BAS I 46 MO 90 MO 67 MO 76 MO 33 MO
yf THC COS T OF REBU IL DING 102 CoACHES OF THC 6000 AND 6 100 SE RIE S NOT I NCLUDE D HEREI N (SCE NEXT PACE)
1941 AN D 1942 MA T ER I AL S WE RE SuBJ ECT TO PR I OR I T ( S AND THEREFOR E STEEL WAS USE D IN PLACE OF
ALUMI NUM FO R BO DY FR AMES PAN EL S AND ROO FS I N SO ME COACHE S O F TH E TD- 4505 SERI ES
G - GASOl I NC D - D I CSE L AL - ALUM I NU M ST - Srr CL HYD - HYDRAUL I C
lt~i
~~4
CHART 4
LOS ANGELES TRANSIT LINES
MOTOR COACH EQUIPMENT
AS OF
SEPTEMB ER 1954IS_T 6000 SER I ES
6200 AND 6300 SER I ES
6
5 CHART
1~A~PLE OF THE DAMAGE TO BODY PANE LS M D RI VET ED JOINTS
2 - COACH WITH ALL BODY PANE LS Il l NDO V FR M1ES M~) SOIIE BO DY BRAC IN G REMOVED
l
LOS ANGELES TRANSIT LINES
PROGRAM OF
REBUILDING MOTOR COACHES
OF THE
6000 AND 6100 SERlES
j - PAR TI AL Re STO RA TI ON SODY PA NE LS Ix I I I )SI I ELD FRA Il E REPLA CED AFT ER kt C~ D I T I ON 116
I+ - AL L BO DY PANE LS AND S I DE W I~ DO J FRAhi ES RE shyPLACED AND ~ ESTO~ED
5 -INT ER IOR SHOW IN G CO MPLET E RE MOVAL OF SEATS AND OTHE R AC COUTERM ENTS REPLACED OR RECOND ITIO NED
6 -COMP LETE D I NTER l OR - t EIJ FLOO R
COV ER IN G WIT H S EAT CUSH IONS ETC
7 - COMP LET ED EXTER l OR COACH REPAI NTED AND READY FOR SERV I CE
I N 195 1 Los AN GELES T RANS IT LINES I NAUGURA TED A PROGRAM OF REBU IL D I NG GMC CoACHES OF THE
6 0 00 (BU ILT IN 1940) AND 61 00 ( BU ILT IN 1941) SER IE S A s OF JU LY 1954 62 COACH ES HAD BEE N
REBUILT WITH 40 ST ILL ON WORK ORDERS BUT IN PROCeSS THE CURRENT EST IM AT ED CO ST OF THIS
P ROGRMil I S AN AV ERAGE OF ~3500 PER COACH THE P U C S TAF F EST IMA TES THE LIF E OF TH ES E
COACH ES TO BE AN ADDIT IO NAL THR EE YEAR S FRO M DATE OF COMP LETI ON COS TS OF REB UILDING AR E
SHOWN I N THE RATE BAS E RE LATIV E TO THE APPROP RI ATE WORK ORDER AN D THEREFORE ARE NOT INCi UDEu
IN THE I NV ESH IENT FOR 60)0 AND 6100 S ERI ES COACH ES SHOWN ON CHAR T No 4
LOS ANGELES TRANSIT LINES SSTIMATED RATE BASE AND DEPRECHTION EXPENSE
12 I~ONTHS ENDING OCTOBSR 31 1955 CISE I - VnTH PRY-SENT METHOD OF SERTICE - APPLICATION NO 35601
Gum October 31 1954 As of October 31 1955
Line
No Item (1)
Iccnunt Number Invcstment
(2)
(3) Reserve
(4)
Inve stmen t Less
Reserve (5)
Remaining
Life (6)
In
Inve s tIDen t Less
vestment Reserve Reserve (7) (8) (9)
Depreciation Expense RAte YeAr
(10) LAND
1 2
Rights of VVAY Other Lmd
502 503
S 426974 1931112
$ 426974 1931112
$ middot 426974 1931112
$ 426974 $ 1931 112
EQUIP~NT ONl~ITDEPRECI~TION
3 Auto Tr011ey pcc53033Jf~034288 $ 7167640 $ 6866648 V3rious $14034288 $ 8125353 $ 5908935 $ 957713
PROPERTY ON GROUP DEPRECIATIJN OverheAQs
4 Engineering 501 $ 44651 $ 44651 OrgAnizAtiorfshy 546 601749 601749~ 5
6 Interest 547 middot 916884 916884 7 Gnding 504 1117084 1118084 8 All Other 505-545 27021634 4 Base 27141634 _____ _________ 9 Suttotal
(Lines 4 to 8) $29702002 $22441215 ~ 7260787 $29823002 ~23516286 $ 6306716 $1081071_
10 Tr)W(Lines 123 amp 9) ~46094376 $29608855 ~16485521 $46215376 $]1641639 $14573737 $2038784
11 RATE BASE Use - $2039000 12 Avenge 0f $16485521amp ~1+573 737 $15530000 13 Work in Progress 100000 14 M1terials amp Supplies 735000 15 Bond Deposit - City Fnnchise 411000 16 Deposit for PL Insurance 150000
17 Totil RAte BAse $16926000 8 t ~
-It- rhjor PArt of Acct 546 is Supervisinn --J
-----
LOS ANGELES TRI-NSIT LINES ESTThiIiTED Ri1TE BASE AND DEPRECllTION EXPENSE
12 NiONTHS ENDING OCTOBER 31 1955 CIlSE II - SSUMING MOTOR COACH SUBSTITUTION ON CERTHN RAIL LINES AS PROPOSED m iiPPLICilTION NO 35728
---- --------------- As f Oct)ber 31 195amp As of Oct0ber 31 1955 Inve sUn8nt Investment IBpreciaticn
Line Account Le ss REffiainin~ Less ExpensE No Item Number Inve-stmcnt ReS8riTe Reserve Life Investment Reserve ~ Reserve Rate Yeqr
(T) T2) 0) (Ii) (5) (6) (7) (8) (9) (10)
Ll~ND
1 Other LAnd 503 ~ 1925510 $ Ci 1925510 ~ 1925510 $ 1925510
EQUIP1A~NT ON UNIT DEPRECIATION 2 itutoIrol1eyPCC 5))3338 $16392563 $ 9323673 $ 7068890 Various $16392563 ~10391985 $ 6000578 $1068312
BUILDJNGS 3 General Office-~ 522 $ 916255 $ 563016 ~ 353239 1917 Yrs$ 916255 $ 581446 $ 334809 $ 18430 4 Shops Grgs Admin 523 amp524 2733772 1013500 1720272 2320 Yrs 2733772 1087633 1646139 74133 5 Subtotal (Lines 3 amp4) 3650027 ~ 1576516 gt 2073511 igt 3650027 11669079 ~ 1980948) 92563
~ PROPERTY ON GROUP DEPRECIATION Overheaas
6 Engineering 501) 7 Organizqtion 5~6) tt 1563178 ~ 1563178 8 Interest 547) 9 Grlding 504)
10 Righ ts of Vgy 502 117922 117922 11 All Other 505-5h5 15 651 31 7 15 771 31 7 ~---7-=-~-- lr-r-----=~ -x---r---~ 12 Subtotal (Lines 6 to 11) )17332417 $11343350 ~ 5989067 1117 Yramp$17452417 ~11833307 ~ 5619110 ~ 495957
13 Totql(Lines 125 amp 12) ~39300517 822243539 ~17056978 839420517 023894371 015526146 01656832
14 RATE BASE Use ~1657OOO 15 Avcr~ge of ~1705697B qnd )15526146 016292000 16 Nwk in Progre s s 100000 Am)unts sh)wn include lpplic3ble -werheqds fr)ll 17 Haterills amp Supplies 735000 Accnunts 546 amp 541 18 Bond Deposit - City Frqnchisc 411000 cent Investment ~d depreciation reserve assumes all 19 Deposit for PL Insurqnce 150000 retirements for the lines to be cmiddotmvcrted 1--3
20 Use Vqlue - Fully Depreciated CJtches 1)2000 ~re m~de 3S ) f November 1 1954 qnd that the ~ full unnunt middotf r e tirements qre charged to the EJ
21 Tot-l R1te Blse ~17840000 reserve co
10S ANG3LSS TRANSIT LI~S
INVESTWNT DSPRCIATICN R~SsRVS AND EXPSNS~ FOR ~QUIPMLNT ON UNIT PLAN DEPR3CHTION
CASES I AND II APPLICATIONS NO 35601 AND 35728
As of Oct0ber 31 ffi4 As of October 31 1955 Line NoTotal Investment fnvestment Depre No Item of Life Investment Reserve Less Investment Reserve Less Expense
Units Reserve Reserve Rate Year (1) (2) (J) 4) - ---(~ CD) en -- --8)----- -(9j- (10)
For Case I 1 Motor Coach Groups
62006300 66-6900 hOh 12 Yrs$6421159 $4728599 ~1692560 ~ 6421159 $ 500 1011 ~1330lh8 $ 362412 2 5000 6hoo 75 10 II 1486387 77~175 711212 1h86387 92h851 561536 149676 3 Coaches on order 100 10 II 2285400 2285400 2285400 2265J~0 2058860 226540
II
I 5 Automobiles 51 V3r 99485 50916 h8569 99485 66540 329h5 15624 ~ 6 Trucks amp Service Cars 56 II 280584 250572 30012 280584 265813 lh771 15241 I 7 Misc( Fare BoxesMotors) 170193 115191 55002 170193 122271 47922 7080
h Trolley Coaches 110 15 2108h09 908560 1199849 2108h09 1Oh6116 1062293 137556
8 Total of Lines 1 to 7 ~12851617 ~~6829013 ~02260h ~12i351617 ~ 77h3lh2 $5108475 $ 914129
9 PCC Rail Cars 40 25 rsJ~ 1182671 ) 338627 gt 84h04h 1182671 ~ 382211 ~ 800460 $ h3581~
10 Case I - Line 8 + Line 9 $14034288 $7167640 $6866648 ~14034288 $ 8125353 t5908935 $ 957713
For Case II
11 6000 amp 6100 Series MC 150 FD ~ 2092963 $2070463 ~ 22500 $ 2092963 $ 2070463 $ 22500 12 Work orders on 6000s
amp 6100 s 3 Yrs 265312 61860 203452 265312 144007 121305 $ 82147 13 PCC Rail Cars 401717 1182671 362 337__ ~~~ 334 1182671 43473 ___748298 72036
14 Case II - Lines 8 + 11+ 12+ 13 ~16392563 9323673 n068890 $16392563 ttl0391985 ~6ooo578 ~1068312
t-3
125 other PCC Cars are in Group Depreciation Schedule G ~
Note579 motor coaches under Case I and 729 under Case II D
LOS AlJGELES TRANSIT LnlES TABLE 10 ESTIMATE]) RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD E1TDUTG OCTOBER 31 1955 CASE I - UNDER PRESENT OPERATIONS
12 Months Jan-June
Line No Item
Tab1e Ending or May 31 1954 Page Fe fer
(2)
Book Record
(])
1954 Annualized
Book Record
(4)
Case I-A Present
Fares (5 )
Case I-B Applicant l s
Proposed Fares
(6)
1 Vehicle Miles T2 34036066 33569520 32747000 32440000
Revenue 2 3 4 5
Passenger Revenue Unredeemed Tokens Other Revenue Total
T1 P7 P7
$24849150
122402 $25044557
$24517866
183810 $24 701676
$22940000 $25513000 20000
1821 000 182 000 $23147000 $25700000
6 7 8
Operating Expenses Rail Trolley Coach Motor Coach
T3 T3 T3
$ 8493744 1442232 8622956
$ 8575232 1451430 8 n6470
$ 8115900 $ 8047000 1366000 1355400 8144200 8088900
9 10 11 12 13
Sub-Total Depreciation Operating Taxes Wage Increase Total
T7 T6
18563932 2176608 1676358
$22416898
18743132 2185804 1760600
$22689536
17626800 17491300~ 2039000 2039000 1663800 1711700
439800 436500 $21769400 $21678500
14 Operating Income $ 2627659 $ 20J2JJQ $ 1377600 $ 4021500 15 Other Inc amp Inc Deduct 21258 (9328)
16 Net Inc Before IncTaxes 2635217 2002742 1377600 4021500 I 17 Income Taxes (St ampFe~) 1302758 1026568 647500 1 999 000 18 Net Operating Income 1332459 976174 730100 2022 500 i 19 Allowance T4 112216 80752 1541000 1541000 20 Net Income $ 1220243 $ 895422 $576100 $ 1868500
21 Rate Base T7 $17393000 $16727000 $16926000 $16926000 22 Rate of Return 70~ 535 340 1104
Operating Ratio 23 Before Income Taxes 9405 8435 24 After Inc Taxes ampAllow 9751 927)
Not Applicable
Computed by PUC Staff Allowance for interest and amortization of abandoned property (Red ]figure)
- 31 shy
IDS ill~GElES TRANSIT LINES ESTIMATE OF OPERATllIG EX-degENSES JuID TAXES
FOR 12 f10NTHS ENDING OCTOBER 31 1955 CASE II - KOTOR COACH Sl~STITUTION - j~PLrCATION NO 35728
Table or Line Page Hotor Trolley
~To Item Reference Streetcar Coach Coach Total
l 2 3
4
I S
rv 6VJ
I 7 8 9
10 ll 12 13 Ih 15 16
17
13
(ll- -- shy
Vehicle Miles Case I - Present Operation Case II - Proposed Operation
Increase in i1iles
Opere amp I1aint Expense - Case I
Changes in Expense Due to Conversion Way and Structures Substation Operation Rail Crossing Protection Vehicle Maintenance Servicing of Vehicles Tires - Hotor Coach Equipment Operators vJages Fuel Oil or Power 21 amp PD Insurance ~Jorkmen I s Compensation Insurance Training Drivers for Conversion
Total Increase in Expense
Oper amp i1aint Expense - Case II (Line h +
Operating Taxes - Case II
(Red Figure)
(Z)
T2 T2
T3
Line 16)
D)
11887000 6691000
(5196000)
~ 8115900
t (11500) (42200) (55000)
(270900) (76900)
(1232900) (219800)
(liT shy
18314000 23h67000 5153000
amp 314~900
~
355000 h3300 32500
1154300 153000
-C5) (6)
2546000 32747000 2949000 33107000
403000 360000
S 1366000 ~gt 17 626800
If (144500) 1 ~ v$ ltW (42 200 ) - bull (55 000 ) 7HmiddotVj
19200 103300 M~ f~
3000 ( 30600) A N- i
32500 94400 15800 14600 (52206)
(1l1100) ~ [ (1200) Glh
30000 ~i
p (258200)
$17368600 r3
c~ 1786600 cr ill
I- CD
I- i-
TABLE 12
LOS ANGELES TRANSIT LINES ESTIMATED RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD ENDING OCTOBER 11 1955 CASE II - MOTOR COACH SUBSTITUTION - APPLICATION NO 15728
Table Case II-A Case II-B Line Item Refer- Present Proposed
Nos i FSles Faresect~nce
( 1) (2) (3) ( 4)
1 Vehicles Miles T 2 33107000 32817000
2 Operating Revenue T 10 $23147000 $25700000
O~erating E~ense
3 Operating and Maintenance Tll $17368600 $17234900 4 Depreciation T 8 1657000 1657000 5 Operating Taxes Tll 1786000 1837800 6 Wage Increase 434ZQQ 431 lt)00
Total $21246300 $211612007
8 Operating Income $ 1900700 $ 4538800 Other Inc amp Inc Deductions it 119
10 Net Income Before Income Taxes $ 1900700 $ 4538800 11 Income Taxes (State amp Federal) 214 200 2262 400 12 Net Operating Income $ 985800 $ 2275400 13 Allowance T 4 ~ 2090QO ~ 20200Q 14 Net Income $ 776800 $ 2066400
15 Rate Base T 8 $17840000 $17840000 16 Rate of Return 435 1158
012erating Ratio 17 Before Income Taxes 9179 8234 18 After Income Taxes amp Allowance 9664 9196
Not Appli cable
Allowance for interest and amortization related to streetcar abandonment of the past and for abandonmcnts proposed in Application No 35728
-33shy
LOS ANGELES TRANSIT Ln~S ESTH1ATE OF HILES TO i3LJ OERATEJJ FOR THE TlJ7IVE HONTHS-ENDING OCTOBER 31 1 q55
A UNDJilR PRESENT OPERATIONS B WITH HOTOR COACH SlfilSTITUTION AS PROPOSED IN APPLICATION NO 35n8
CASE I - PRESENT OPERlTI03S Present Fares Propose(l Fares
Estimatet Estimated Estimated Hiloago Estimated Est T)imirDl l4i Recluc-Estimatea Miles Miles (a) Decrease In Traffic Roduction Mileage of Traffiction Below Proposed
Item As Shown In Miles of the Decline Duo TrafficPresent FaresBelow TrafCol6 Due to Fares PDC Staff Dacrease9-15-54 to Docline (2) x At PrescntDiminution Col 6 x
________ (3) x (4) (100 - Col 5gt Fares (7) x (3) (100 - ColFJdlibLLJamp~Passengers ~-55 8) (1) (2) (3) (4) (5) (6) (7) (8) (9)
streetcar 12041861 30 43 L29 11587000 39 117 11748000
Trolley Coach 2546000 92573633 25f~ 43 1 075~b 3 0 975 2521000
Motor Coach (b) ]8li-~4 849 20 4 3~ 86 10 18106000 39 78 18163000bull I~
f-- ---J Total (b) 33080343 32739000 32432000
CASE II - OFSRATIONS PROPOSED IN APPLICATION NO 15728 Present Fares Proposed Fares
Item Estimatefl 1JIiles(a) As SnownEstimate~- Miles Present FarosEstimate~ Milos Proposed ___-~___------I=n~PDCStaff Exhibit No Col lOx (100 - Col 5) Faros Col llx (100-CQl~
(1) (10) (11) (12)
Stroetcar 6778211 6691000 6 61300O
Trolley Coach 2981376 2949000 2920000
Motor Coach (b) 236629)) 23459 1000 2276 7000
~Total (b) 33422542 33099000 32809000 ill r trl
(a) Based on th~ l ovel of traffic of Septombor 1954 I)
(b) To the estirl8ted milos shown here should bo a~dod 7500 Charter Miles
t-3
- - - - - - -
LOS kJGELES TRANSIT LINES Table 3 Sheet 1 of 3ESTIMATE OF RAIL OPERiTINGifiPENSES
CASE I - UNDER PRESENT OPERATIONS
Company Estfor 12 Mo~ Records Ending
Acct Jan-May 1954 103155 No I t e m Annualized Present Fares
Car Miles Way and Structures
1-24 ill Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 Superintendence 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conducting Transportation 63 Superintendence 64 Conductor Motormen etc 66 Car Service Emp 67 Miscel1 Car Service Exp 70 Car House Empa
Var other Cond Transp Accounts Total
Traffic 79 Superintendence 80 AdvertiSing
Total General
83 Gen Off - Sal and Exp 84 Gen Off Emp - Sal amp Exp 85 Gen Off a SuppJies amp Exps 88 Pensions
(93 Insurance PL amp PO (93 Insurance Workmens Comp (93 Insurance Other
Var Other General Accounts Total
Total Rail Operating Expense
Cents per Car Mile
12573226
$ 722615
$ 79078 759547 146522
$ 985141
$ 18190 174643 482945
23033 $ 698 811
$ 438900 3257666
104525 76608
351696 57240
$ 4286635
$ 6346 18353
$ 24699
$ 83645 123281
35570 4818S8 765019 46840 13664
287090 $ 1836967
$ 8554874
68004cent
ll887OOO
$ 722600
$ 79100 671200 147900
$ 898200
$) 18200 174600 547200
28900 $ 768900
$ 438900 2890900
104500 72200
351700 59600
$ 3917800
$ 6300 18400
$ 24700
$ 78900 123300 35600
456600 750400 ~ 43100 13700
282tl00 $ 1783700
$ 8115900
6827cent
Co
)
-
(1
I
flI
Car Miles Oper middot Exp Case I-B - Applicants Proposed Fares 11748000 $ 8047000 ~ Expenses Variable with Car Miles Wage rates used herein are those whieh
Ac30amp33 565 cent~ile prevailed immediately prior to 6154 59 460 The cost of the wage increase which 64 2432 tecomes fully effective on 12154 is 70 148 50 of total shown separately in Results of
Total 3605 centmile Operation table ~ See Table 5 for amounts under Proposed Fare
- 18 shy
- - - - - ------
LCB ANGELES TRANSIT LINFS Table 3 ESTIMATE OF TROLLEY COACH OPERATING EXPENSES Sheet 2 of 3
CASE I - UNDER PRESENT OPERATIONS
Acct No I t e m
Coach Miles Way and Structures
1-24 All Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 --superintendenoe 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conduoting Transportation 63 Superintendence 64 Operators Wages 70 Car House Employees
Var Other Condo Transp Accounts Total
Traffic 79 Superintendence 80 Advertising
Total General
83 Gen Off - Sal amp Exp 84 85
Gen Off Emp - Sal amp Exp Gen Off Supplies amp Exps
88 Pensions (93 Insurance PL amp PD (93 Insurance Worlanen s Comp (93 Insurance Other
Var Other General Accounts Total
Total Operating Expense
Cents per Mile
Case I-B - Applicants Proposed Fares
Expenses Variable with Coach Miles Acs 30amp33 477centmile
59 3038 64 2342 70 075 50 of total
Total 3232centjmi1e
~ See Table 5 for Amount Under Proposed Fares
Company Estfor 12 ME Recorda Ending Jan-May 1954 103155 I ~
Annualized Present Fares ~
2629188 2546000
$ 26518 $ 27000
$ 32628 $ 32600 125469 121400
11012 9600 $ 169109 $ 163600
$ 3770 $ 3800 35770 35BOO 75017 86000 1
8417 9000 $ 122974 $ 134600
$ 99161 $ 99200 612513 596300
38273 38300 21802 21500
$ 771749 $ 755300
$ 979 $ 1000 3588 3600
$ 4567 $ 4600
$ 15134 $ 12100 22990 23000 5669 5700
87614 83000 165089 97300 I
8516 8000 ~ 3054 3100
49076 48700 $ 357142 $ 280900 6
$1452059 $1366000
5523cent 5365cent
Coach Miles Oper Exp 2521000 $1355400 -- -0
Wage rates used herein are those which prevailed immedshyiately prior to 6154 The cost of the wage i~crease which becomes fully effective on 12154 is shown separately in Results of Operations table
- 19 shy
LOS ANGELES TRANS1 LINS TABLE 3 ESTIMATE OF MOTOR COAOH OPERATING EXPENSE Sheet 3 of 3
CASE I - UNDER PRESENT OPERATIONS
Company Estimate for Records 12 months
Jan - May Ending Acct 1954 103155 No I t e m Annualized Present Fares ~
Coach Miles 1832~158 18314000 Equipment Maintenance amp Gara~ Expense
4110 Supv - Shop and Gar $ 142788 $ 142800 4140-2 Repairs to Rev E~uipment 1097376 848800 4150 Servicing Rev Equipment 308373 307700 4160 Tires - Rev Equipment 123305 125200 Var Other Maint Accounts 151444 147300
Total $1823286 $1571800 Transportation Expense
4210 Supervision of Transp $ 487284 $ 487300 4220 Drivers I vrages 3767184 37589001= 3) bull
4230 522175 523800 )0
4240 Oil for Revenue Equipment 17256 19500 JOJ
Var Other Trans Exp Accounts 60153 58200 Total $4854052 $4847700
Traffic and Advertising 4470 Advertising $ 21593 $ 21600 Var Other Traffic Accounts 7)329 76500
Total $ 94922 $ 98100 Insurance
4510 Salaries and Expenses $ 18818 $ 18800 4520 Insurance PL amp PD 786322 542OOOp 4541 Insurance Workmens Compo 51458 50100p Var Other Insurance Exp 11357 11700 - shy
Fuel for Revenue Equipment _
J Total $ 867955 $ 622600 Administrative and General
4611-2 Gen Officers - Sal amp Exps $ 90806 $ 73500 4613-6 Gen Off Employees - Sal ampExp 138043 137000 4620 Law Expense 12910 16000 4630 Gen Office Supplies amp Exp 51689 44800 4640 Communication Expense 41143 45500 4652 Employees vlelfare 525737 498200 4655 Purchasing amp Stores 120790 120800 Var All Oth~r Adm amp Gen Exp 70090 53900
Total $1051208 $ 989700 Rents 15000 15000
Total Motor Coach Expense $8706423 $8144900 Cents per Mile 47middot50cent 4447cent
Coach Miles Ouer Exp Case I-B - Applicants Proposed Fares 18171 000 $8088900 -----shy
Expennes Variable with Milos Wage rates used herein are those which Ac 4140 463centmile prevailed immediately prior to 6154
4150 084 50 of total The cost of tho wage increase toJhich beshy4160 068 comes fully effective on 12154 is clnwn 4220 2052 separately in Results of Operation table 4230 286 4240 011
Total 2964centmile cent See Table 5 for Amount Under Proposed Fares 20 shy
TABLE 4
IDS ANGELES TRANSIT LUIES AMORTIZATION AND INTEREST ALLOWANCE
PAVING AND REMOVAL OBLIGATIONS - CASES I AND II APPLICATIONS NOS 35601 AND ~5728
A - Obligations from Abandonments Prior to 1954
Yearly Amortization $132000 Interest 16000
Total $148000
B - Obligations from Abandonment of Portions of IV and Rlt Lines (July 25 1954)
Yearly Amortization $ 4000 Interest 2000
Total $ 6000
C - Obligations from Abandonments as Proposed in Application No 35728 (November 1 154)
Yearly Amortization $ 35000 Interest 2JOOO
Total $ 55000
For Case I - Items A + B $154000
For Case II- Items A + B + C $209000
Includes cost of removal of electrical distribution system ($123700) and of substation equipment ($21600)
- 21 shy
LOS ANGELES TRAl~SIT Lli~S
RJBLIC LIABILITY PROPERTY DAl1AGE AND 1l0RIJftElI i S CCMFEi-TSATION EXPENSE illLATED TO SOUln~EbTT MILES Aim R3W-RLS PAS~lWEFS
CASE I - UNDER PRHSENT OPSHATIONS 1947 - 1950 Inc Jan-May Est FOr
Line Ito m 1951 1952 1953 195412 MosEnd No Total Av per Yr Annualizod 10 31 55
1 Lossos paid (n) $ 3890 $ 972 $ 1082 $ 902 $ 580 $ 262 2 Losses ostimato~ (a) 39 10 52 280 634 881 3 Reinsurance costs (a) 282 71 62 69 ____81 65 4 Total Losses_amp Insurance (a) $ 4211 $ 1053 $ 1196 $ 1251 $ 1295 $ 1208
5 Expenses paid (a) $ 1536 $ 384 $ 353 $ 385 $ 242 $ 170 6 Expenses estimated (a) 7 2 _ __ 11) 61 182 24S 7 Total expenses (a) $ 1543 $ middot 386 ~ 363 $ 446 $ 424 $415 8 Total LossesReiils amp Exp (a) $ 5754 $ 1439 1559 $ 1697 1719 $ 1622
(Lina 4- + 7) I 9 Number of claims filed 59991 14998 11588 11104 10246 9228
N
N 10 Vehiclo miles (millions) 153 4 384 356 351 346 336 I
11 Revenue Passon~crs (millions) 10093 2523 1924 1746 1661 1531
12 Loss Per 11i1 lliilos (4 ~ 10) ~27451 $27451 ~33596 $35~641 $37428 $35952 $35000
13 Loss Por i-Hllion Pass (4 11) $ 4172 $ 4172 ~ 6216 ) 7165 ~ 7797 $ 7890 $ 7500 14 Expensos por claim (7 f 9) h
ltfgt 2572 Y 25middot72 i) 3133 $ 4017 4138 $ 4497 $ 45 15 Claims per million miles (9 10) 391 391 326 316 296 275 280
16 Claims per million pass (9 11) 59 59 60 64 62 60 60
Ul p- CD (I)
(a) Thousand of dollars amp8
t-G o ~ H
J N
TABLE 5 LOS ANGELES TRANSIT LUTES Sheet 2 0 f 2
ESTIMATE OF PUBLIC LIABILITY AND PROPERTY DAMAGE AND WOBKMElJ 1 S COMPENSATION EXPENSES
FOR 12-MONTH PERIOD ENDING OCTOBER 31 1955 UNDER CASE I-A AND CASE I-B - PRESENT OPERATIONS ~lITH PRESENT amp PROPOSED FARES
Line 110
Cost Factors 1 Claims per million revenue passengers bull bull bull 2 raquo raquo vehicle miles bull bull bull 3 Expense per claim bull bull 4 Losses per million revenue passengers
raquo raquo vehicle miles bull bull bull bull 5 bull bull
60 280 45
7500 35000
Estimated Expense For PL and PD and Workmens Compensation Insurance
Case I-A Present Fares
6 Number of rovenue passengers (millions) 1395
7 Number of vehicle miles(millions) 3275
A - Basod on Number of Passengers 8 Losses 9 Expense
10 Total
B - Based 11 Losses 12 Expense 13 Total
$1046200 376700
$1422900
on Number of Vehicle Hiles $1146200
412700 $1558900
14 Average of A and B (PL amp PD and Workmen 6 Compo - $1490900
15 Workmens Compensation Insurance 101~200(a) 16 PL and PD Insurance 1389700
Distribution of Total PL amp PD Percent
17 Rail Operations 541 $ 750400 18 Trolloy Coach Operations 7 97300 19 Motor Coach Operations ~ -542000 20 Total 100 $1389700
Case I-B Proposed Fares
1341 3244
$1005700 362100
$1367800
$1135400 408700
$1544100
$1456000 100200 (b)
1355800
$ 732~100 94900
528800 $1355800
(a) Rail=$43lOO Trolley Coach=$8000 and Motor Coach=$50100
(b) Rail=$42 600_ Trolley Coach=$7 ~ 900 and Hotor Coach=$49 (00 _ --- I
- 23 shy
lA3LE 6
LOS ANGELES TRANSIT LINES ESTIHATE 041 OPERAT1NG TAXES
FOR 12 MONTHS ENDING OCTOBER 31 1955 CASE I - PRESENT OPERATIONS
APPLICATION NO 35601
Book Record Case I-A Case I-B L1ne I t e m 12 Months Present Proposed
No End 5-31~ Fares Fares(~ ) -=-----=-(3)~--=--~r(4~)~-(1)
1 City Franchise Taxes $ 473687 $ 434600 ~ 481900
2 Property Taxes-Ad Valorem 457963 435000 435000
3 Fuel and Oil Taxes 360580 337700 335100
4 Motor Vehicle License Taxes 136984 Ib8 900 168900
5 Transportation License 15600 21~00 (3 B of EHlshy
6 payroll Tuxes 265000 262500
Other raxes 7000 70007
Total ~ip 1 603 800
Net after weight fee credit
-24shy
Operating Taxes - Case I
Franchise Taxes cmd Business Licenses
Under Case I Present Operationafrnnchise taxes to the City of
Los Angeles were determined by applying current tax rates to estimated
revenues
Ad Vnlore~ Taxes
The estimate for ad valorem taxes under Case I is based on an
assessinent of $6496250 and a tax rate of $67402
Fuel Taxes
Fuel taxes are based on the following per gallon rntes of Federal
and State Taxes
illA Cents ner Ga11Qn Effectiye Dates
Diesel Federal 11-1-54 to 3-31-55 12i ~ 4-1-55 to 10-31-55
State 7 11-1-54 to 6-30-55 ~ 2 ~ 7-1-55 to 10-31-55
Gasoline Federal 2 ~1-1-54 to 3-31-55 11
2 ~ 4-1-55 to 10-31-55
State 6 ~ 11-1-54 to 6-30-55 5i cent 7-1-55 to 10-31-55
Motor Vehicle Licenses
The estinate for motor vehic10 licenses is based on the registrashy
tion weight and vehicle license fees Which will be in effect during 1955
under equipmontrequiremonts as sot forth in the report by Public Utilities
Commission Associate Engineer Wil1in~ F Hibbard
- 10 shy
Trapsportati CD Ii CADse Tax
This license tax is assessed by the Board cf Equalization and
represents 3~ of the gross revenue derived from operations in non-incorporated
areas by motor and trolley coaches The estimate is based on
curront tax rates applied to estimated revenues
Pavroll Taxes
Tho ratos in effect aro 2 for Social s~curity taxos and 03 for
Federal Unemployment Insurance Paymonts to tho State Unemployment funds
will remain at zero as a sufficient accumulation of funds is presently
on hand It is estimated that 94 of applicants total payroll will be
subject to Social Security Tax undor the increased coverago offective
January 1 1955 and that 100 of the employees are subject to FUI taxes
at $3000 per year
Other Taxes
Other taxos include operatorsl licenses Foderal transportation
ta~ manufacturers excise taxes and other miscellnneous taxes The
estimate is based on actwd experience for the yeor ending May 31 1954
Income Taxes
State Corpor8tion Franchise Taxes have been computed at the
current rate of 4 Federal Income Taxes have been computed on tho basis
of a change in rate effective April 1 1955 On this basis the normal
tax 0 f 30 was used for five months of the rata year and 25 for soven
months of the rate year Tho surtax of 22 remains constant throughout
the year In calculating income taxes in both Cnse I and CasarI an
interest credit of $100300 was used
- 11 shy
Rate Base and Depreciation Expense
In General
In accnrdance wi th current Cornmi ssion practice of treating all
property en a remaining life basis the Commission Staff has made an
analysis of Applicont1s property As 0 rosult as of January 1 1954
1 Motor coaches of the series 6200 6300 6600 6700 6800
and 6900 (404 coaches) were put on a total life basis of
12 years This is considered reasonable in view of the
attained age and the condition of the fleet
2 The annual accrual of the Genoral Office Building (Acct 522)
was adjusted to reflect a totel life of 50 years
3 Buildings in Accounts 523 and 524 were assigned a remaining
life of 24 years with depreciation reserve adjusted to reflect
age-life condition
Under both Cpses I and II 100 nel motor coaches have been included
in the rate base as of November 1 1954 tho beginning of the rate ye~r
Other Lpnd (Acct bull 503) and Rights of Way (Acct 502) hewe been
adjusted to reflect estimated original cost
Under Cese I
150 motor coaches of the 6000 and 6100 series (including current
work orders for rebuilding) have boen deleted due to the inclusion of the
100 new coaches as well as tc conform to the equipment roquirements set forth in
Staff Witness Hibbards Exhibit ith 10 f ~r spares
All property on group plan depreciation reflects the current
4 rate of accrual with nermal additions and retiroMents tken into considerashy
tion
The 40 P C C crrs on uni t plan depreCiation wore extended as
of Innuary 1 1954 to a total life of 25 years
12 shy
Under Case II
As evidenced by correspondenco betoJeen the Commission and
Applicant and the request for changes in accounting practices as outlined
in a letter from the Applicant to the Commission under date of April 291954
it is assumed that applicant intends to completely convert to motor coach
operation by the end of 1965 The Rate Base under Case II assumes that all
property relnted to the rail and trolley coach oper2tion ltlill be fully
depreciated by that time This would include all rel~ted items of property
hitherto considered non-dopreciable those rel~ted ~o the present proposed
conversion havo been charged to the group plan depreciation reserve as of
November I 1954 those remaining 2xe depreciated over ~ 12 year period
boginning January 1 1954
150 coaches of the 6000 and 6100 series have been included in order
to satisfy oquipment requirements as outlined by Staff litness Hibbards 1
Exhibit No The work orders for rebuilding 83 of those coachos have
been put on a 3 year lifo (Soc Chart 5)
In conjunction wi th the rate base presentAtion there are shown in
Chart ) pictures and data of the streetcars and trolley coach equipment as
of September 1 1954 Camp~rt 4 shows ~ictures and data of motor coach equipshy
mont as of September I 1954
Amortization and Interest Allowance
Amortization and Interest allowance f or abandcnment oblig~tionsunder
Cases I and II is sho~m in Table 4 The estimates ccntained therein refloct
an income tax credit on the total amount of the obligations The estimate
under Case I is fer obligations incurred prior to 1954 and oblig~tionsconcerned
nV ttwith changos on tho ruld tTRtl lines made effective JUly 25 1954 Under
- 13 shy
C~se II is added the estin~ted obligation in connecticn with the abandonment
nsprop0sed in Application No 35728
Results of Operatirn
Ou-so I Relbvant infr-rr1pticn sh0vm in the f0regcing text ancl
in the tables is summarized in Table 10 - Estimated
Results of Operation - Case I and from this informashy
tion a rate of return and operating ratios are
calculated under Present and Proposed Fares
Case II Using the basic inf0rmation as used in Table 10 in
c0 njunction with the estimate of operating expenses
for Caso II as shown in Table 11 the rates of
return and operating ratins under Case II are developed
in Table 12 - Estimated Results of Operation - Case II
- 14 shy
LO S ANGELES TRANSIT LINES
TREN 0 OF WEEKLY REVENUE- PASS ENGER5 (E)(CLU SIVE OF POSTAL EMPLOYEES AND RIDERS ON SCHOOL FARES)
FEBRUARY 1952 TOJULY 1954 AND
ESTIMATE FOR 12 MONTHS ENDING OCT 31 1955
~ 3middot5 W w ~
a w 0
_ I cJ)
a 30 uJ 19 Z UJ cJ) cJ)
laquo 0
IL 0 25
([)
z 0 J J
~
bull ~ I
l T
-
- -
ltI-N
- 2
- wr-
u
- 2
--
w
- u
A I
1 ( A A I
j
~ J r 1f
I a V J 1 fv V V ~J
V 1IV I 1 II I
I I Jr 0
~
l) - 0 (c
rlt1
gt bull r gt 0 10 z I z ~
I I I w iw
I
I I EST I~ATE FOR 12 foONTHS ENDING OCTOBER 31 1955 w I UNDER PRpoundSENT FARES-
I w
u A - PASSENGERS PER WEEK bullbullbullbullbullbullbullbullbullbullbullbull 2 596 000
u B - PASSENGERS PER yEAR bullbullbullbullbullbullbullbullbullbull 135 363 000
- Z Ii
w I
w I
lt I
u u i
it i--0 w
~ - -lt 0-H gt- =-1--1 a 0
-Y
VI
I
I )
T ~20
JAN f EBMAR APRoMAY J UN JUL AUG SEPOCTNOV DEC JANFEB MARAP R MAY JUNJULAUG SE P OCT NOVmCJANfEB MARAPRMAY JUN JUL AUG S EP OCTNOV DE C JAN FEB MAR APR IoiIAY JU N gt- c-+shy
rv1952 953 954 1955 Wl
LOS ANGELES TRANSIT LINES ESTIMATE OF REVEruE PASSENGERS lID PASSENGER REVENUE
FOR 12 MONTHS ENDInG OCTOBER 31 1955 CASE I AND CASE II APPLICATION NO 15601 AND NO 35728
Present Fares Applicants Proposed Fares Est
Percent of Dlmin- PassenshyLlne of Total Fare Zone Passengera Revenue Fare utlon cera Revenue -=-----Ho-- Item Orldnalt Adjusted (Cents) Paus i cent (Cents) ~ cent cent
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
Adul t Passengers
lOne-Zone 15 65 58599 $ 8790 17 333 56648 $ 9630 2 1427 35 31553 4507 17 475 )0054 5109 3 666 666 1475 100 90152 $13297 86702 $14739
4 Two-Zone 20 65 25780 $ 5156 23 3middot75 24813 $ 5707 5 1927 ~ 13881 2677 ~ 481 13212 30)9 6 293 293 19751 100 39661 $ 783) 38026 $ 8746
7 Three-Zone 25 65 3476 $ 869 29 400 3337 $ 968 a-- 8 2427 22 1871 454 29 485 1 180 516 I 9 38 395 2475 100 5)47 $ 1323 511 $ 1484
10 Four-~one )0 65 1)2 $ 39 35 417 126 $ 44shy11 2927 35 71 21 35 488 68 24 12 ~ ----l5 29 75f 100 20) $ 60 - 194 $ 68 13 Sub-Total 1000 1000 ~ 135363 $22513 1300)9 $25037 14 Holly Park 10 200 $ 20 10 200 $ 20 15 Total Adult 13556) $225)) 130239 $25057
16 School 9 2797 $ 252 10 278 2719 $ 272 17 School 12 561 67 15 625 526 79 18 Total School )358 $ )19 )245 $ 351 19 Post Office 1427 616 $ B8 17 616 $ 105 20 Grand Total 139537 $22940 1)4100 $25513
cent (000) Omi tted ~ 1F Weighted Average Fare ~ If See Chart 2 + + As deter~ined by traffic checks and used in previous Staff reports
CHART 3
rr LOS AtJGELES
TRANSIT LINES
STREET CAR AN 0 TROLLEY COAe H
EQUIPMENT AS OF
H4 OR K4 OPEN END WOODEN SEATS H3 CLOSED ENDLEATHER S EATS SEPTEMB E R f 1954
JIshy
OLDER T YPE OF PCC CAR NE WER TYPE OF PCC CAR
8000 SERIES TROLLEY COACH 9000 SERIES TROLLEY COACH 9100 S ERI ES TROLLEY COACH
STREET CARS TROLLEY COACHES
ALL H3 H4 K4 PCC OTHER TOTAL 8000 9000
SEATS 48 48 48 12 5-61 SEATS VARIOU 44 4540-28 SEATS
EQU IPME NT ASSIGNMENTS UNDER PRESENT CoMPANY BASIS EFFECTIVE SEPTEMBER 12
9100
46 TOTAL
SCHEDULED SPARES
TOTAL ASSIGNED UNASSIGNED
TOTAL OWNED
SCHEDULED
SPARES
TOTAL ASSIGNED UNASSIGNED
TOTAL OWNE D
354 22 57 5
411 2 37 101 13
60 165 37 512 40 EQUIP MENT RE QUIREMENTS PRESENT SERVICE FOR RATE YEAR)
354 36
390 122 512
34 6
40 30
81 16
81 9
90 20
110 EQUIPMENT REQUIREMENTS WITH SERVICE AS P ROPOSED IN
ApPLICATIO N 28 (FOR RATE YEAR
SCHEDULED 20431 23 150 93 4 2 21SPARES 1015
TOTAL ASSIGNED 165 22525 10335 UNASSIGNED - 7
TOTAL RETAINED 225 11025 16535 To BE RETIRED 0190 2 7 37 TOTAL Now OWNED 60 110512 215 165 3735
-lE- ESTI MA TED BY P U C STAFF E
2 r
C
-
6600 SER IE S 6700 AND 6900 SER IE S 6800 SER I ES
L I NE 6200 No TE~ 5000 6000 yf 6 100 yf 6300 6400 6600
MACK G M e G M e G M e G MC G M C I i~IA K( amp UODEl NUMBER C-45 -CT TD-4502 rn -4505 TO- 4506 TDH-5103 TOH shy 36 1 2 YE AR BUilT l~ 1940 1941 1945 1951 1947 3 DATE I N SERV I CE 7 -40 1-42 7 - 45 7 - 51 7 -47 4 NUMBER O F CoACHES 50 55 95 200 25 57 5 PU RCHAS ED NEW OR US ED N N
6 S EATI NG CAPAC IT Y 45 45 45 51 36 45 40
~ LE NG TH - OUT S I DE 3~ -0 3~ - 0 37 -0 3~ -6 30 - 6 3~ - 0 3~ -0 WI DTH - OU T S IDE -Oil _-ttl 8 -0 -611 8 - 2 _OM I - 0
9 HE I CHT - OU TS I DE 9 -6 9 shy 5t 9 -6 9 t 4t ll 9 - 2 9 0 9 -6 10 A I SL( HEADROOM 76 77 78 78 76shy 8 76
11 A ISLE WI DTH 19 2 1 26 22 22 20 12 TY PE O f DR I V( HYD HYD HYD HYO HYD HYD
13 BRA KE HORSE POWER amp FUE L 165io) 165( 0) 165(0) 110(0) 165(0) 165(0) 14 Bo DY f RAME MA TE R I AL AL AL AL AL AL NOT G I VE N 15 Bo DY PANEL ~1ATE R I AL AL AL AL AL AL NO T GI VEN
16 ROO F MATER I AL AL AL amp ST AL AL amp ST AL amp ST NO T G I VEN
~ ~ - AT DCC CMBER 3 1 1953shy14 26 15298AV ER AG E INVE ST PER CoACH $ ~ 21962 $ 13 992 17 60 14 209
19 INVESHIENT 1 354 9~ 3 059 506 549 044 7 97 5~ 2 lt164 650 99 466 10 000 509 20 RE SE RV E 1340 6 2 462 923 135951 503 6 1369 1 02 90 896 7 147 497
21 REM AIN ING VALUE (I NCL SALV) 14 250 596 583 413 093 293 869 1 095 548 8 570 2853 012 22 REMA I N I NG LIF E lOYR BAS I S 22 MO 90 MO 43 MO 52 MO 9 MO
23 REMAIN I NG L IFE 12YR BAS I 46 MO 90 MO 67 MO 76 MO 33 MO
yf THC COS T OF REBU IL DING 102 CoACHES OF THC 6000 AND 6 100 SE RIE S NOT I NCLUDE D HEREI N (SCE NEXT PACE)
1941 AN D 1942 MA T ER I AL S WE RE SuBJ ECT TO PR I OR I T ( S AND THEREFOR E STEEL WAS USE D IN PLACE OF
ALUMI NUM FO R BO DY FR AMES PAN EL S AND ROO FS I N SO ME COACHE S O F TH E TD- 4505 SERI ES
G - GASOl I NC D - D I CSE L AL - ALUM I NU M ST - Srr CL HYD - HYDRAUL I C
lt~i
~~4
CHART 4
LOS ANGELES TRANSIT LINES
MOTOR COACH EQUIPMENT
AS OF
SEPTEMB ER 1954IS_T 6000 SER I ES
6200 AND 6300 SER I ES
6
5 CHART
1~A~PLE OF THE DAMAGE TO BODY PANE LS M D RI VET ED JOINTS
2 - COACH WITH ALL BODY PANE LS Il l NDO V FR M1ES M~) SOIIE BO DY BRAC IN G REMOVED
l
LOS ANGELES TRANSIT LINES
PROGRAM OF
REBUILDING MOTOR COACHES
OF THE
6000 AND 6100 SERlES
j - PAR TI AL Re STO RA TI ON SODY PA NE LS Ix I I I )SI I ELD FRA Il E REPLA CED AFT ER kt C~ D I T I ON 116
I+ - AL L BO DY PANE LS AND S I DE W I~ DO J FRAhi ES RE shyPLACED AND ~ ESTO~ED
5 -INT ER IOR SHOW IN G CO MPLET E RE MOVAL OF SEATS AND OTHE R AC COUTERM ENTS REPLACED OR RECOND ITIO NED
6 -COMP LETE D I NTER l OR - t EIJ FLOO R
COV ER IN G WIT H S EAT CUSH IONS ETC
7 - COMP LET ED EXTER l OR COACH REPAI NTED AND READY FOR SERV I CE
I N 195 1 Los AN GELES T RANS IT LINES I NAUGURA TED A PROGRAM OF REBU IL D I NG GMC CoACHES OF THE
6 0 00 (BU ILT IN 1940) AND 61 00 ( BU ILT IN 1941) SER IE S A s OF JU LY 1954 62 COACH ES HAD BEE N
REBUILT WITH 40 ST ILL ON WORK ORDERS BUT IN PROCeSS THE CURRENT EST IM AT ED CO ST OF THIS
P ROGRMil I S AN AV ERAGE OF ~3500 PER COACH THE P U C S TAF F EST IMA TES THE LIF E OF TH ES E
COACH ES TO BE AN ADDIT IO NAL THR EE YEAR S FRO M DATE OF COMP LETI ON COS TS OF REB UILDING AR E
SHOWN I N THE RATE BAS E RE LATIV E TO THE APPROP RI ATE WORK ORDER AN D THEREFORE ARE NOT INCi UDEu
IN THE I NV ESH IENT FOR 60)0 AND 6100 S ERI ES COACH ES SHOWN ON CHAR T No 4
LOS ANGELES TRANSIT LINES SSTIMATED RATE BASE AND DEPRECHTION EXPENSE
12 I~ONTHS ENDING OCTOBSR 31 1955 CISE I - VnTH PRY-SENT METHOD OF SERTICE - APPLICATION NO 35601
Gum October 31 1954 As of October 31 1955
Line
No Item (1)
Iccnunt Number Invcstment
(2)
(3) Reserve
(4)
Inve stmen t Less
Reserve (5)
Remaining
Life (6)
In
Inve s tIDen t Less
vestment Reserve Reserve (7) (8) (9)
Depreciation Expense RAte YeAr
(10) LAND
1 2
Rights of VVAY Other Lmd
502 503
S 426974 1931112
$ 426974 1931112
$ middot 426974 1931112
$ 426974 $ 1931 112
EQUIP~NT ONl~ITDEPRECI~TION
3 Auto Tr011ey pcc53033Jf~034288 $ 7167640 $ 6866648 V3rious $14034288 $ 8125353 $ 5908935 $ 957713
PROPERTY ON GROUP DEPRECIATIJN OverheAQs
4 Engineering 501 $ 44651 $ 44651 OrgAnizAtiorfshy 546 601749 601749~ 5
6 Interest 547 middot 916884 916884 7 Gnding 504 1117084 1118084 8 All Other 505-545 27021634 4 Base 27141634 _____ _________ 9 Suttotal
(Lines 4 to 8) $29702002 $22441215 ~ 7260787 $29823002 ~23516286 $ 6306716 $1081071_
10 Tr)W(Lines 123 amp 9) ~46094376 $29608855 ~16485521 $46215376 $]1641639 $14573737 $2038784
11 RATE BASE Use - $2039000 12 Avenge 0f $16485521amp ~1+573 737 $15530000 13 Work in Progress 100000 14 M1terials amp Supplies 735000 15 Bond Deposit - City Fnnchise 411000 16 Deposit for PL Insurance 150000
17 Totil RAte BAse $16926000 8 t ~
-It- rhjor PArt of Acct 546 is Supervisinn --J
-----
LOS ANGELES TRI-NSIT LINES ESTThiIiTED Ri1TE BASE AND DEPRECllTION EXPENSE
12 NiONTHS ENDING OCTOBER 31 1955 CIlSE II - SSUMING MOTOR COACH SUBSTITUTION ON CERTHN RAIL LINES AS PROPOSED m iiPPLICilTION NO 35728
---- --------------- As f Oct)ber 31 195amp As of Oct0ber 31 1955 Inve sUn8nt Investment IBpreciaticn
Line Account Le ss REffiainin~ Less ExpensE No Item Number Inve-stmcnt ReS8riTe Reserve Life Investment Reserve ~ Reserve Rate Yeqr
(T) T2) 0) (Ii) (5) (6) (7) (8) (9) (10)
Ll~ND
1 Other LAnd 503 ~ 1925510 $ Ci 1925510 ~ 1925510 $ 1925510
EQUIP1A~NT ON UNIT DEPRECIATION 2 itutoIrol1eyPCC 5))3338 $16392563 $ 9323673 $ 7068890 Various $16392563 ~10391985 $ 6000578 $1068312
BUILDJNGS 3 General Office-~ 522 $ 916255 $ 563016 ~ 353239 1917 Yrs$ 916255 $ 581446 $ 334809 $ 18430 4 Shops Grgs Admin 523 amp524 2733772 1013500 1720272 2320 Yrs 2733772 1087633 1646139 74133 5 Subtotal (Lines 3 amp4) 3650027 ~ 1576516 gt 2073511 igt 3650027 11669079 ~ 1980948) 92563
~ PROPERTY ON GROUP DEPRECIATION Overheaas
6 Engineering 501) 7 Organizqtion 5~6) tt 1563178 ~ 1563178 8 Interest 547) 9 Grlding 504)
10 Righ ts of Vgy 502 117922 117922 11 All Other 505-5h5 15 651 31 7 15 771 31 7 ~---7-=-~-- lr-r-----=~ -x---r---~ 12 Subtotal (Lines 6 to 11) )17332417 $11343350 ~ 5989067 1117 Yramp$17452417 ~11833307 ~ 5619110 ~ 495957
13 Totql(Lines 125 amp 12) ~39300517 822243539 ~17056978 839420517 023894371 015526146 01656832
14 RATE BASE Use ~1657OOO 15 Avcr~ge of ~1705697B qnd )15526146 016292000 16 Nwk in Progre s s 100000 Am)unts sh)wn include lpplic3ble -werheqds fr)ll 17 Haterills amp Supplies 735000 Accnunts 546 amp 541 18 Bond Deposit - City Frqnchisc 411000 cent Investment ~d depreciation reserve assumes all 19 Deposit for PL Insurqnce 150000 retirements for the lines to be cmiddotmvcrted 1--3
20 Use Vqlue - Fully Depreciated CJtches 1)2000 ~re m~de 3S ) f November 1 1954 qnd that the ~ full unnunt middotf r e tirements qre charged to the EJ
21 Tot-l R1te Blse ~17840000 reserve co
10S ANG3LSS TRANSIT LI~S
INVESTWNT DSPRCIATICN R~SsRVS AND EXPSNS~ FOR ~QUIPMLNT ON UNIT PLAN DEPR3CHTION
CASES I AND II APPLICATIONS NO 35601 AND 35728
As of Oct0ber 31 ffi4 As of October 31 1955 Line NoTotal Investment fnvestment Depre No Item of Life Investment Reserve Less Investment Reserve Less Expense
Units Reserve Reserve Rate Year (1) (2) (J) 4) - ---(~ CD) en -- --8)----- -(9j- (10)
For Case I 1 Motor Coach Groups
62006300 66-6900 hOh 12 Yrs$6421159 $4728599 ~1692560 ~ 6421159 $ 500 1011 ~1330lh8 $ 362412 2 5000 6hoo 75 10 II 1486387 77~175 711212 1h86387 92h851 561536 149676 3 Coaches on order 100 10 II 2285400 2285400 2285400 2265J~0 2058860 226540
II
I 5 Automobiles 51 V3r 99485 50916 h8569 99485 66540 329h5 15624 ~ 6 Trucks amp Service Cars 56 II 280584 250572 30012 280584 265813 lh771 15241 I 7 Misc( Fare BoxesMotors) 170193 115191 55002 170193 122271 47922 7080
h Trolley Coaches 110 15 2108h09 908560 1199849 2108h09 1Oh6116 1062293 137556
8 Total of Lines 1 to 7 ~12851617 ~~6829013 ~02260h ~12i351617 ~ 77h3lh2 $5108475 $ 914129
9 PCC Rail Cars 40 25 rsJ~ 1182671 ) 338627 gt 84h04h 1182671 ~ 382211 ~ 800460 $ h3581~
10 Case I - Line 8 + Line 9 $14034288 $7167640 $6866648 ~14034288 $ 8125353 t5908935 $ 957713
For Case II
11 6000 amp 6100 Series MC 150 FD ~ 2092963 $2070463 ~ 22500 $ 2092963 $ 2070463 $ 22500 12 Work orders on 6000s
amp 6100 s 3 Yrs 265312 61860 203452 265312 144007 121305 $ 82147 13 PCC Rail Cars 401717 1182671 362 337__ ~~~ 334 1182671 43473 ___748298 72036
14 Case II - Lines 8 + 11+ 12+ 13 ~16392563 9323673 n068890 $16392563 ttl0391985 ~6ooo578 ~1068312
t-3
125 other PCC Cars are in Group Depreciation Schedule G ~
Note579 motor coaches under Case I and 729 under Case II D
LOS AlJGELES TRANSIT LnlES TABLE 10 ESTIMATE]) RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD E1TDUTG OCTOBER 31 1955 CASE I - UNDER PRESENT OPERATIONS
12 Months Jan-June
Line No Item
Tab1e Ending or May 31 1954 Page Fe fer
(2)
Book Record
(])
1954 Annualized
Book Record
(4)
Case I-A Present
Fares (5 )
Case I-B Applicant l s
Proposed Fares
(6)
1 Vehicle Miles T2 34036066 33569520 32747000 32440000
Revenue 2 3 4 5
Passenger Revenue Unredeemed Tokens Other Revenue Total
T1 P7 P7
$24849150
122402 $25044557
$24517866
183810 $24 701676
$22940000 $25513000 20000
1821 000 182 000 $23147000 $25700000
6 7 8
Operating Expenses Rail Trolley Coach Motor Coach
T3 T3 T3
$ 8493744 1442232 8622956
$ 8575232 1451430 8 n6470
$ 8115900 $ 8047000 1366000 1355400 8144200 8088900
9 10 11 12 13
Sub-Total Depreciation Operating Taxes Wage Increase Total
T7 T6
18563932 2176608 1676358
$22416898
18743132 2185804 1760600
$22689536
17626800 17491300~ 2039000 2039000 1663800 1711700
439800 436500 $21769400 $21678500
14 Operating Income $ 2627659 $ 20J2JJQ $ 1377600 $ 4021500 15 Other Inc amp Inc Deduct 21258 (9328)
16 Net Inc Before IncTaxes 2635217 2002742 1377600 4021500 I 17 Income Taxes (St ampFe~) 1302758 1026568 647500 1 999 000 18 Net Operating Income 1332459 976174 730100 2022 500 i 19 Allowance T4 112216 80752 1541000 1541000 20 Net Income $ 1220243 $ 895422 $576100 $ 1868500
21 Rate Base T7 $17393000 $16727000 $16926000 $16926000 22 Rate of Return 70~ 535 340 1104
Operating Ratio 23 Before Income Taxes 9405 8435 24 After Inc Taxes ampAllow 9751 927)
Not Applicable
Computed by PUC Staff Allowance for interest and amortization of abandoned property (Red ]figure)
- 31 shy
IDS ill~GElES TRANSIT LINES ESTIMATE OF OPERATllIG EX-degENSES JuID TAXES
FOR 12 f10NTHS ENDING OCTOBER 31 1955 CASE II - KOTOR COACH Sl~STITUTION - j~PLrCATION NO 35728
Table or Line Page Hotor Trolley
~To Item Reference Streetcar Coach Coach Total
l 2 3
4
I S
rv 6VJ
I 7 8 9
10 ll 12 13 Ih 15 16
17
13
(ll- -- shy
Vehicle Miles Case I - Present Operation Case II - Proposed Operation
Increase in i1iles
Opere amp I1aint Expense - Case I
Changes in Expense Due to Conversion Way and Structures Substation Operation Rail Crossing Protection Vehicle Maintenance Servicing of Vehicles Tires - Hotor Coach Equipment Operators vJages Fuel Oil or Power 21 amp PD Insurance ~Jorkmen I s Compensation Insurance Training Drivers for Conversion
Total Increase in Expense
Oper amp i1aint Expense - Case II (Line h +
Operating Taxes - Case II
(Red Figure)
(Z)
T2 T2
T3
Line 16)
D)
11887000 6691000
(5196000)
~ 8115900
t (11500) (42200) (55000)
(270900) (76900)
(1232900) (219800)
(liT shy
18314000 23h67000 5153000
amp 314~900
~
355000 h3300 32500
1154300 153000
-C5) (6)
2546000 32747000 2949000 33107000
403000 360000
S 1366000 ~gt 17 626800
If (144500) 1 ~ v$ ltW (42 200 ) - bull (55 000 ) 7HmiddotVj
19200 103300 M~ f~
3000 ( 30600) A N- i
32500 94400 15800 14600 (52206)
(1l1100) ~ [ (1200) Glh
30000 ~i
p (258200)
$17368600 r3
c~ 1786600 cr ill
I- CD
I- i-
TABLE 12
LOS ANGELES TRANSIT LINES ESTIMATED RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD ENDING OCTOBER 11 1955 CASE II - MOTOR COACH SUBSTITUTION - APPLICATION NO 15728
Table Case II-A Case II-B Line Item Refer- Present Proposed
Nos i FSles Faresect~nce
( 1) (2) (3) ( 4)
1 Vehicles Miles T 2 33107000 32817000
2 Operating Revenue T 10 $23147000 $25700000
O~erating E~ense
3 Operating and Maintenance Tll $17368600 $17234900 4 Depreciation T 8 1657000 1657000 5 Operating Taxes Tll 1786000 1837800 6 Wage Increase 434ZQQ 431 lt)00
Total $21246300 $211612007
8 Operating Income $ 1900700 $ 4538800 Other Inc amp Inc Deductions it 119
10 Net Income Before Income Taxes $ 1900700 $ 4538800 11 Income Taxes (State amp Federal) 214 200 2262 400 12 Net Operating Income $ 985800 $ 2275400 13 Allowance T 4 ~ 2090QO ~ 20200Q 14 Net Income $ 776800 $ 2066400
15 Rate Base T 8 $17840000 $17840000 16 Rate of Return 435 1158
012erating Ratio 17 Before Income Taxes 9179 8234 18 After Income Taxes amp Allowance 9664 9196
Not Appli cable
Allowance for interest and amortization related to streetcar abandonment of the past and for abandonmcnts proposed in Application No 35728
-33shy
LOS ANGELES TRANSIT Ln~S ESTH1ATE OF HILES TO i3LJ OERATEJJ FOR THE TlJ7IVE HONTHS-ENDING OCTOBER 31 1 q55
A UNDJilR PRESENT OPERATIONS B WITH HOTOR COACH SlfilSTITUTION AS PROPOSED IN APPLICATION NO 35n8
CASE I - PRESENT OPERlTI03S Present Fares Propose(l Fares
Estimatet Estimated Estimated Hiloago Estimated Est T)imirDl l4i Recluc-Estimatea Miles Miles (a) Decrease In Traffic Roduction Mileage of Traffiction Below Proposed
Item As Shown In Miles of the Decline Duo TrafficPresent FaresBelow TrafCol6 Due to Fares PDC Staff Dacrease9-15-54 to Docline (2) x At PrescntDiminution Col 6 x
________ (3) x (4) (100 - Col 5gt Fares (7) x (3) (100 - ColFJdlibLLJamp~Passengers ~-55 8) (1) (2) (3) (4) (5) (6) (7) (8) (9)
streetcar 12041861 30 43 L29 11587000 39 117 11748000
Trolley Coach 2546000 92573633 25f~ 43 1 075~b 3 0 975 2521000
Motor Coach (b) ]8li-~4 849 20 4 3~ 86 10 18106000 39 78 18163000bull I~
f-- ---J Total (b) 33080343 32739000 32432000
CASE II - OFSRATIONS PROPOSED IN APPLICATION NO 15728 Present Fares Proposed Fares
Item Estimatefl 1JIiles(a) As SnownEstimate~- Miles Present FarosEstimate~ Milos Proposed ___-~___------I=n~PDCStaff Exhibit No Col lOx (100 - Col 5) Faros Col llx (100-CQl~
(1) (10) (11) (12)
Stroetcar 6778211 6691000 6 61300O
Trolley Coach 2981376 2949000 2920000
Motor Coach (b) 236629)) 23459 1000 2276 7000
~Total (b) 33422542 33099000 32809000 ill r trl
(a) Based on th~ l ovel of traffic of Septombor 1954 I)
(b) To the estirl8ted milos shown here should bo a~dod 7500 Charter Miles
t-3
- - - - - - -
LOS kJGELES TRANSIT LINES Table 3 Sheet 1 of 3ESTIMATE OF RAIL OPERiTINGifiPENSES
CASE I - UNDER PRESENT OPERATIONS
Company Estfor 12 Mo~ Records Ending
Acct Jan-May 1954 103155 No I t e m Annualized Present Fares
Car Miles Way and Structures
1-24 ill Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 Superintendence 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conducting Transportation 63 Superintendence 64 Conductor Motormen etc 66 Car Service Emp 67 Miscel1 Car Service Exp 70 Car House Empa
Var other Cond Transp Accounts Total
Traffic 79 Superintendence 80 AdvertiSing
Total General
83 Gen Off - Sal and Exp 84 Gen Off Emp - Sal amp Exp 85 Gen Off a SuppJies amp Exps 88 Pensions
(93 Insurance PL amp PO (93 Insurance Workmens Comp (93 Insurance Other
Var Other General Accounts Total
Total Rail Operating Expense
Cents per Car Mile
12573226
$ 722615
$ 79078 759547 146522
$ 985141
$ 18190 174643 482945
23033 $ 698 811
$ 438900 3257666
104525 76608
351696 57240
$ 4286635
$ 6346 18353
$ 24699
$ 83645 123281
35570 4818S8 765019 46840 13664
287090 $ 1836967
$ 8554874
68004cent
ll887OOO
$ 722600
$ 79100 671200 147900
$ 898200
$) 18200 174600 547200
28900 $ 768900
$ 438900 2890900
104500 72200
351700 59600
$ 3917800
$ 6300 18400
$ 24700
$ 78900 123300 35600
456600 750400 ~ 43100 13700
282tl00 $ 1783700
$ 8115900
6827cent
Co
)
-
(1
I
flI
Car Miles Oper middot Exp Case I-B - Applicants Proposed Fares 11748000 $ 8047000 ~ Expenses Variable with Car Miles Wage rates used herein are those whieh
Ac30amp33 565 cent~ile prevailed immediately prior to 6154 59 460 The cost of the wage increase which 64 2432 tecomes fully effective on 12154 is 70 148 50 of total shown separately in Results of
Total 3605 centmile Operation table ~ See Table 5 for amounts under Proposed Fare
- 18 shy
- - - - - ------
LCB ANGELES TRANSIT LINFS Table 3 ESTIMATE OF TROLLEY COACH OPERATING EXPENSES Sheet 2 of 3
CASE I - UNDER PRESENT OPERATIONS
Acct No I t e m
Coach Miles Way and Structures
1-24 All Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 --superintendenoe 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conduoting Transportation 63 Superintendence 64 Operators Wages 70 Car House Employees
Var Other Condo Transp Accounts Total
Traffic 79 Superintendence 80 Advertising
Total General
83 Gen Off - Sal amp Exp 84 85
Gen Off Emp - Sal amp Exp Gen Off Supplies amp Exps
88 Pensions (93 Insurance PL amp PD (93 Insurance Worlanen s Comp (93 Insurance Other
Var Other General Accounts Total
Total Operating Expense
Cents per Mile
Case I-B - Applicants Proposed Fares
Expenses Variable with Coach Miles Acs 30amp33 477centmile
59 3038 64 2342 70 075 50 of total
Total 3232centjmi1e
~ See Table 5 for Amount Under Proposed Fares
Company Estfor 12 ME Recorda Ending Jan-May 1954 103155 I ~
Annualized Present Fares ~
2629188 2546000
$ 26518 $ 27000
$ 32628 $ 32600 125469 121400
11012 9600 $ 169109 $ 163600
$ 3770 $ 3800 35770 35BOO 75017 86000 1
8417 9000 $ 122974 $ 134600
$ 99161 $ 99200 612513 596300
38273 38300 21802 21500
$ 771749 $ 755300
$ 979 $ 1000 3588 3600
$ 4567 $ 4600
$ 15134 $ 12100 22990 23000 5669 5700
87614 83000 165089 97300 I
8516 8000 ~ 3054 3100
49076 48700 $ 357142 $ 280900 6
$1452059 $1366000
5523cent 5365cent
Coach Miles Oper Exp 2521000 $1355400 -- -0
Wage rates used herein are those which prevailed immedshyiately prior to 6154 The cost of the wage i~crease which becomes fully effective on 12154 is shown separately in Results of Operations table
- 19 shy
LOS ANGELES TRANS1 LINS TABLE 3 ESTIMATE OF MOTOR COAOH OPERATING EXPENSE Sheet 3 of 3
CASE I - UNDER PRESENT OPERATIONS
Company Estimate for Records 12 months
Jan - May Ending Acct 1954 103155 No I t e m Annualized Present Fares ~
Coach Miles 1832~158 18314000 Equipment Maintenance amp Gara~ Expense
4110 Supv - Shop and Gar $ 142788 $ 142800 4140-2 Repairs to Rev E~uipment 1097376 848800 4150 Servicing Rev Equipment 308373 307700 4160 Tires - Rev Equipment 123305 125200 Var Other Maint Accounts 151444 147300
Total $1823286 $1571800 Transportation Expense
4210 Supervision of Transp $ 487284 $ 487300 4220 Drivers I vrages 3767184 37589001= 3) bull
4230 522175 523800 )0
4240 Oil for Revenue Equipment 17256 19500 JOJ
Var Other Trans Exp Accounts 60153 58200 Total $4854052 $4847700
Traffic and Advertising 4470 Advertising $ 21593 $ 21600 Var Other Traffic Accounts 7)329 76500
Total $ 94922 $ 98100 Insurance
4510 Salaries and Expenses $ 18818 $ 18800 4520 Insurance PL amp PD 786322 542OOOp 4541 Insurance Workmens Compo 51458 50100p Var Other Insurance Exp 11357 11700 - shy
Fuel for Revenue Equipment _
J Total $ 867955 $ 622600 Administrative and General
4611-2 Gen Officers - Sal amp Exps $ 90806 $ 73500 4613-6 Gen Off Employees - Sal ampExp 138043 137000 4620 Law Expense 12910 16000 4630 Gen Office Supplies amp Exp 51689 44800 4640 Communication Expense 41143 45500 4652 Employees vlelfare 525737 498200 4655 Purchasing amp Stores 120790 120800 Var All Oth~r Adm amp Gen Exp 70090 53900
Total $1051208 $ 989700 Rents 15000 15000
Total Motor Coach Expense $8706423 $8144900 Cents per Mile 47middot50cent 4447cent
Coach Miles Ouer Exp Case I-B - Applicants Proposed Fares 18171 000 $8088900 -----shy
Expennes Variable with Milos Wage rates used herein are those which Ac 4140 463centmile prevailed immediately prior to 6154
4150 084 50 of total The cost of tho wage increase toJhich beshy4160 068 comes fully effective on 12154 is clnwn 4220 2052 separately in Results of Operation table 4230 286 4240 011
Total 2964centmile cent See Table 5 for Amount Under Proposed Fares 20 shy
TABLE 4
IDS ANGELES TRANSIT LUIES AMORTIZATION AND INTEREST ALLOWANCE
PAVING AND REMOVAL OBLIGATIONS - CASES I AND II APPLICATIONS NOS 35601 AND ~5728
A - Obligations from Abandonments Prior to 1954
Yearly Amortization $132000 Interest 16000
Total $148000
B - Obligations from Abandonment of Portions of IV and Rlt Lines (July 25 1954)
Yearly Amortization $ 4000 Interest 2000
Total $ 6000
C - Obligations from Abandonments as Proposed in Application No 35728 (November 1 154)
Yearly Amortization $ 35000 Interest 2JOOO
Total $ 55000
For Case I - Items A + B $154000
For Case II- Items A + B + C $209000
Includes cost of removal of electrical distribution system ($123700) and of substation equipment ($21600)
- 21 shy
LOS ANGELES TRAl~SIT Lli~S
RJBLIC LIABILITY PROPERTY DAl1AGE AND 1l0RIJftElI i S CCMFEi-TSATION EXPENSE illLATED TO SOUln~EbTT MILES Aim R3W-RLS PAS~lWEFS
CASE I - UNDER PRHSENT OPSHATIONS 1947 - 1950 Inc Jan-May Est FOr
Line Ito m 1951 1952 1953 195412 MosEnd No Total Av per Yr Annualizod 10 31 55
1 Lossos paid (n) $ 3890 $ 972 $ 1082 $ 902 $ 580 $ 262 2 Losses ostimato~ (a) 39 10 52 280 634 881 3 Reinsurance costs (a) 282 71 62 69 ____81 65 4 Total Losses_amp Insurance (a) $ 4211 $ 1053 $ 1196 $ 1251 $ 1295 $ 1208
5 Expenses paid (a) $ 1536 $ 384 $ 353 $ 385 $ 242 $ 170 6 Expenses estimated (a) 7 2 _ __ 11) 61 182 24S 7 Total expenses (a) $ 1543 $ middot 386 ~ 363 $ 446 $ 424 $415 8 Total LossesReiils amp Exp (a) $ 5754 $ 1439 1559 $ 1697 1719 $ 1622
(Lina 4- + 7) I 9 Number of claims filed 59991 14998 11588 11104 10246 9228
N
N 10 Vehiclo miles (millions) 153 4 384 356 351 346 336 I
11 Revenue Passon~crs (millions) 10093 2523 1924 1746 1661 1531
12 Loss Per 11i1 lliilos (4 ~ 10) ~27451 $27451 ~33596 $35~641 $37428 $35952 $35000
13 Loss Por i-Hllion Pass (4 11) $ 4172 $ 4172 ~ 6216 ) 7165 ~ 7797 $ 7890 $ 7500 14 Expensos por claim (7 f 9) h
ltfgt 2572 Y 25middot72 i) 3133 $ 4017 4138 $ 4497 $ 45 15 Claims per million miles (9 10) 391 391 326 316 296 275 280
16 Claims per million pass (9 11) 59 59 60 64 62 60 60
Ul p- CD (I)
(a) Thousand of dollars amp8
t-G o ~ H
J N
TABLE 5 LOS ANGELES TRANSIT LUTES Sheet 2 0 f 2
ESTIMATE OF PUBLIC LIABILITY AND PROPERTY DAMAGE AND WOBKMElJ 1 S COMPENSATION EXPENSES
FOR 12-MONTH PERIOD ENDING OCTOBER 31 1955 UNDER CASE I-A AND CASE I-B - PRESENT OPERATIONS ~lITH PRESENT amp PROPOSED FARES
Line 110
Cost Factors 1 Claims per million revenue passengers bull bull bull 2 raquo raquo vehicle miles bull bull bull 3 Expense per claim bull bull 4 Losses per million revenue passengers
raquo raquo vehicle miles bull bull bull bull 5 bull bull
60 280 45
7500 35000
Estimated Expense For PL and PD and Workmens Compensation Insurance
Case I-A Present Fares
6 Number of rovenue passengers (millions) 1395
7 Number of vehicle miles(millions) 3275
A - Basod on Number of Passengers 8 Losses 9 Expense
10 Total
B - Based 11 Losses 12 Expense 13 Total
$1046200 376700
$1422900
on Number of Vehicle Hiles $1146200
412700 $1558900
14 Average of A and B (PL amp PD and Workmen 6 Compo - $1490900
15 Workmens Compensation Insurance 101~200(a) 16 PL and PD Insurance 1389700
Distribution of Total PL amp PD Percent
17 Rail Operations 541 $ 750400 18 Trolloy Coach Operations 7 97300 19 Motor Coach Operations ~ -542000 20 Total 100 $1389700
Case I-B Proposed Fares
1341 3244
$1005700 362100
$1367800
$1135400 408700
$1544100
$1456000 100200 (b)
1355800
$ 732~100 94900
528800 $1355800
(a) Rail=$43lOO Trolley Coach=$8000 and Motor Coach=$50100
(b) Rail=$42 600_ Trolley Coach=$7 ~ 900 and Hotor Coach=$49 (00 _ --- I
- 23 shy
lA3LE 6
LOS ANGELES TRANSIT LINES ESTIHATE 041 OPERAT1NG TAXES
FOR 12 MONTHS ENDING OCTOBER 31 1955 CASE I - PRESENT OPERATIONS
APPLICATION NO 35601
Book Record Case I-A Case I-B L1ne I t e m 12 Months Present Proposed
No End 5-31~ Fares Fares(~ ) -=-----=-(3)~--=--~r(4~)~-(1)
1 City Franchise Taxes $ 473687 $ 434600 ~ 481900
2 Property Taxes-Ad Valorem 457963 435000 435000
3 Fuel and Oil Taxes 360580 337700 335100
4 Motor Vehicle License Taxes 136984 Ib8 900 168900
5 Transportation License 15600 21~00 (3 B of EHlshy
6 payroll Tuxes 265000 262500
Other raxes 7000 70007
Total ~ip 1 603 800
Net after weight fee credit
-24shy
Trapsportati CD Ii CADse Tax
This license tax is assessed by the Board cf Equalization and
represents 3~ of the gross revenue derived from operations in non-incorporated
areas by motor and trolley coaches The estimate is based on
curront tax rates applied to estimated revenues
Pavroll Taxes
Tho ratos in effect aro 2 for Social s~curity taxos and 03 for
Federal Unemployment Insurance Paymonts to tho State Unemployment funds
will remain at zero as a sufficient accumulation of funds is presently
on hand It is estimated that 94 of applicants total payroll will be
subject to Social Security Tax undor the increased coverago offective
January 1 1955 and that 100 of the employees are subject to FUI taxes
at $3000 per year
Other Taxes
Other taxos include operatorsl licenses Foderal transportation
ta~ manufacturers excise taxes and other miscellnneous taxes The
estimate is based on actwd experience for the yeor ending May 31 1954
Income Taxes
State Corpor8tion Franchise Taxes have been computed at the
current rate of 4 Federal Income Taxes have been computed on tho basis
of a change in rate effective April 1 1955 On this basis the normal
tax 0 f 30 was used for five months of the rata year and 25 for soven
months of the rate year Tho surtax of 22 remains constant throughout
the year In calculating income taxes in both Cnse I and CasarI an
interest credit of $100300 was used
- 11 shy
Rate Base and Depreciation Expense
In General
In accnrdance wi th current Cornmi ssion practice of treating all
property en a remaining life basis the Commission Staff has made an
analysis of Applicont1s property As 0 rosult as of January 1 1954
1 Motor coaches of the series 6200 6300 6600 6700 6800
and 6900 (404 coaches) were put on a total life basis of
12 years This is considered reasonable in view of the
attained age and the condition of the fleet
2 The annual accrual of the Genoral Office Building (Acct 522)
was adjusted to reflect a totel life of 50 years
3 Buildings in Accounts 523 and 524 were assigned a remaining
life of 24 years with depreciation reserve adjusted to reflect
age-life condition
Under both Cpses I and II 100 nel motor coaches have been included
in the rate base as of November 1 1954 tho beginning of the rate ye~r
Other Lpnd (Acct bull 503) and Rights of Way (Acct 502) hewe been
adjusted to reflect estimated original cost
Under Cese I
150 motor coaches of the 6000 and 6100 series (including current
work orders for rebuilding) have boen deleted due to the inclusion of the
100 new coaches as well as tc conform to the equipment roquirements set forth in
Staff Witness Hibbards Exhibit ith 10 f ~r spares
All property on group plan depreciation reflects the current
4 rate of accrual with nermal additions and retiroMents tken into considerashy
tion
The 40 P C C crrs on uni t plan depreCiation wore extended as
of Innuary 1 1954 to a total life of 25 years
12 shy
Under Case II
As evidenced by correspondenco betoJeen the Commission and
Applicant and the request for changes in accounting practices as outlined
in a letter from the Applicant to the Commission under date of April 291954
it is assumed that applicant intends to completely convert to motor coach
operation by the end of 1965 The Rate Base under Case II assumes that all
property relnted to the rail and trolley coach oper2tion ltlill be fully
depreciated by that time This would include all rel~ted items of property
hitherto considered non-dopreciable those rel~ted ~o the present proposed
conversion havo been charged to the group plan depreciation reserve as of
November I 1954 those remaining 2xe depreciated over ~ 12 year period
boginning January 1 1954
150 coaches of the 6000 and 6100 series have been included in order
to satisfy oquipment requirements as outlined by Staff litness Hibbards 1
Exhibit No The work orders for rebuilding 83 of those coachos have
been put on a 3 year lifo (Soc Chart 5)
In conjunction wi th the rate base presentAtion there are shown in
Chart ) pictures and data of the streetcars and trolley coach equipment as
of September 1 1954 Camp~rt 4 shows ~ictures and data of motor coach equipshy
mont as of September I 1954
Amortization and Interest Allowance
Amortization and Interest allowance f or abandcnment oblig~tionsunder
Cases I and II is sho~m in Table 4 The estimates ccntained therein refloct
an income tax credit on the total amount of the obligations The estimate
under Case I is fer obligations incurred prior to 1954 and oblig~tionsconcerned
nV ttwith changos on tho ruld tTRtl lines made effective JUly 25 1954 Under
- 13 shy
C~se II is added the estin~ted obligation in connecticn with the abandonment
nsprop0sed in Application No 35728
Results of Operatirn
Ou-so I Relbvant infr-rr1pticn sh0vm in the f0regcing text ancl
in the tables is summarized in Table 10 - Estimated
Results of Operation - Case I and from this informashy
tion a rate of return and operating ratios are
calculated under Present and Proposed Fares
Case II Using the basic inf0rmation as used in Table 10 in
c0 njunction with the estimate of operating expenses
for Caso II as shown in Table 11 the rates of
return and operating ratins under Case II are developed
in Table 12 - Estimated Results of Operation - Case II
- 14 shy
LO S ANGELES TRANSIT LINES
TREN 0 OF WEEKLY REVENUE- PASS ENGER5 (E)(CLU SIVE OF POSTAL EMPLOYEES AND RIDERS ON SCHOOL FARES)
FEBRUARY 1952 TOJULY 1954 AND
ESTIMATE FOR 12 MONTHS ENDING OCT 31 1955
~ 3middot5 W w ~
a w 0
_ I cJ)
a 30 uJ 19 Z UJ cJ) cJ)
laquo 0
IL 0 25
([)
z 0 J J
~
bull ~ I
l T
-
- -
ltI-N
- 2
- wr-
u
- 2
--
w
- u
A I
1 ( A A I
j
~ J r 1f
I a V J 1 fv V V ~J
V 1IV I 1 II I
I I Jr 0
~
l) - 0 (c
rlt1
gt bull r gt 0 10 z I z ~
I I I w iw
I
I I EST I~ATE FOR 12 foONTHS ENDING OCTOBER 31 1955 w I UNDER PRpoundSENT FARES-
I w
u A - PASSENGERS PER WEEK bullbullbullbullbullbullbullbullbullbullbullbull 2 596 000
u B - PASSENGERS PER yEAR bullbullbullbullbullbullbullbullbullbull 135 363 000
- Z Ii
w I
w I
lt I
u u i
it i--0 w
~ - -lt 0-H gt- =-1--1 a 0
-Y
VI
I
I )
T ~20
JAN f EBMAR APRoMAY J UN JUL AUG SEPOCTNOV DEC JANFEB MARAP R MAY JUNJULAUG SE P OCT NOVmCJANfEB MARAPRMAY JUN JUL AUG S EP OCTNOV DE C JAN FEB MAR APR IoiIAY JU N gt- c-+shy
rv1952 953 954 1955 Wl
LOS ANGELES TRANSIT LINES ESTIMATE OF REVEruE PASSENGERS lID PASSENGER REVENUE
FOR 12 MONTHS ENDInG OCTOBER 31 1955 CASE I AND CASE II APPLICATION NO 15601 AND NO 35728
Present Fares Applicants Proposed Fares Est
Percent of Dlmin- PassenshyLlne of Total Fare Zone Passengera Revenue Fare utlon cera Revenue -=-----Ho-- Item Orldnalt Adjusted (Cents) Paus i cent (Cents) ~ cent cent
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
Adul t Passengers
lOne-Zone 15 65 58599 $ 8790 17 333 56648 $ 9630 2 1427 35 31553 4507 17 475 )0054 5109 3 666 666 1475 100 90152 $13297 86702 $14739
4 Two-Zone 20 65 25780 $ 5156 23 3middot75 24813 $ 5707 5 1927 ~ 13881 2677 ~ 481 13212 30)9 6 293 293 19751 100 39661 $ 783) 38026 $ 8746
7 Three-Zone 25 65 3476 $ 869 29 400 3337 $ 968 a-- 8 2427 22 1871 454 29 485 1 180 516 I 9 38 395 2475 100 5)47 $ 1323 511 $ 1484
10 Four-~one )0 65 1)2 $ 39 35 417 126 $ 44shy11 2927 35 71 21 35 488 68 24 12 ~ ----l5 29 75f 100 20) $ 60 - 194 $ 68 13 Sub-Total 1000 1000 ~ 135363 $22513 1300)9 $25037 14 Holly Park 10 200 $ 20 10 200 $ 20 15 Total Adult 13556) $225)) 130239 $25057
16 School 9 2797 $ 252 10 278 2719 $ 272 17 School 12 561 67 15 625 526 79 18 Total School )358 $ )19 )245 $ 351 19 Post Office 1427 616 $ B8 17 616 $ 105 20 Grand Total 139537 $22940 1)4100 $25513
cent (000) Omi tted ~ 1F Weighted Average Fare ~ If See Chart 2 + + As deter~ined by traffic checks and used in previous Staff reports
CHART 3
rr LOS AtJGELES
TRANSIT LINES
STREET CAR AN 0 TROLLEY COAe H
EQUIPMENT AS OF
H4 OR K4 OPEN END WOODEN SEATS H3 CLOSED ENDLEATHER S EATS SEPTEMB E R f 1954
JIshy
OLDER T YPE OF PCC CAR NE WER TYPE OF PCC CAR
8000 SERIES TROLLEY COACH 9000 SERIES TROLLEY COACH 9100 S ERI ES TROLLEY COACH
STREET CARS TROLLEY COACHES
ALL H3 H4 K4 PCC OTHER TOTAL 8000 9000
SEATS 48 48 48 12 5-61 SEATS VARIOU 44 4540-28 SEATS
EQU IPME NT ASSIGNMENTS UNDER PRESENT CoMPANY BASIS EFFECTIVE SEPTEMBER 12
9100
46 TOTAL
SCHEDULED SPARES
TOTAL ASSIGNED UNASSIGNED
TOTAL OWNED
SCHEDULED
SPARES
TOTAL ASSIGNED UNASSIGNED
TOTAL OWNE D
354 22 57 5
411 2 37 101 13
60 165 37 512 40 EQUIP MENT RE QUIREMENTS PRESENT SERVICE FOR RATE YEAR)
354 36
390 122 512
34 6
40 30
81 16
81 9
90 20
110 EQUIPMENT REQUIREMENTS WITH SERVICE AS P ROPOSED IN
ApPLICATIO N 28 (FOR RATE YEAR
SCHEDULED 20431 23 150 93 4 2 21SPARES 1015
TOTAL ASSIGNED 165 22525 10335 UNASSIGNED - 7
TOTAL RETAINED 225 11025 16535 To BE RETIRED 0190 2 7 37 TOTAL Now OWNED 60 110512 215 165 3735
-lE- ESTI MA TED BY P U C STAFF E
2 r
C
-
6600 SER IE S 6700 AND 6900 SER IE S 6800 SER I ES
L I NE 6200 No TE~ 5000 6000 yf 6 100 yf 6300 6400 6600
MACK G M e G M e G M e G MC G M C I i~IA K( amp UODEl NUMBER C-45 -CT TD-4502 rn -4505 TO- 4506 TDH-5103 TOH shy 36 1 2 YE AR BUilT l~ 1940 1941 1945 1951 1947 3 DATE I N SERV I CE 7 -40 1-42 7 - 45 7 - 51 7 -47 4 NUMBER O F CoACHES 50 55 95 200 25 57 5 PU RCHAS ED NEW OR US ED N N
6 S EATI NG CAPAC IT Y 45 45 45 51 36 45 40
~ LE NG TH - OUT S I DE 3~ -0 3~ - 0 37 -0 3~ -6 30 - 6 3~ - 0 3~ -0 WI DTH - OU T S IDE -Oil _-ttl 8 -0 -611 8 - 2 _OM I - 0
9 HE I CHT - OU TS I DE 9 -6 9 shy 5t 9 -6 9 t 4t ll 9 - 2 9 0 9 -6 10 A I SL( HEADROOM 76 77 78 78 76shy 8 76
11 A ISLE WI DTH 19 2 1 26 22 22 20 12 TY PE O f DR I V( HYD HYD HYD HYO HYD HYD
13 BRA KE HORSE POWER amp FUE L 165io) 165( 0) 165(0) 110(0) 165(0) 165(0) 14 Bo DY f RAME MA TE R I AL AL AL AL AL AL NOT G I VE N 15 Bo DY PANEL ~1ATE R I AL AL AL AL AL AL NO T GI VEN
16 ROO F MATER I AL AL AL amp ST AL AL amp ST AL amp ST NO T G I VEN
~ ~ - AT DCC CMBER 3 1 1953shy14 26 15298AV ER AG E INVE ST PER CoACH $ ~ 21962 $ 13 992 17 60 14 209
19 INVESHIENT 1 354 9~ 3 059 506 549 044 7 97 5~ 2 lt164 650 99 466 10 000 509 20 RE SE RV E 1340 6 2 462 923 135951 503 6 1369 1 02 90 896 7 147 497
21 REM AIN ING VALUE (I NCL SALV) 14 250 596 583 413 093 293 869 1 095 548 8 570 2853 012 22 REMA I N I NG LIF E lOYR BAS I S 22 MO 90 MO 43 MO 52 MO 9 MO
23 REMAIN I NG L IFE 12YR BAS I 46 MO 90 MO 67 MO 76 MO 33 MO
yf THC COS T OF REBU IL DING 102 CoACHES OF THC 6000 AND 6 100 SE RIE S NOT I NCLUDE D HEREI N (SCE NEXT PACE)
1941 AN D 1942 MA T ER I AL S WE RE SuBJ ECT TO PR I OR I T ( S AND THEREFOR E STEEL WAS USE D IN PLACE OF
ALUMI NUM FO R BO DY FR AMES PAN EL S AND ROO FS I N SO ME COACHE S O F TH E TD- 4505 SERI ES
G - GASOl I NC D - D I CSE L AL - ALUM I NU M ST - Srr CL HYD - HYDRAUL I C
lt~i
~~4
CHART 4
LOS ANGELES TRANSIT LINES
MOTOR COACH EQUIPMENT
AS OF
SEPTEMB ER 1954IS_T 6000 SER I ES
6200 AND 6300 SER I ES
6
5 CHART
1~A~PLE OF THE DAMAGE TO BODY PANE LS M D RI VET ED JOINTS
2 - COACH WITH ALL BODY PANE LS Il l NDO V FR M1ES M~) SOIIE BO DY BRAC IN G REMOVED
l
LOS ANGELES TRANSIT LINES
PROGRAM OF
REBUILDING MOTOR COACHES
OF THE
6000 AND 6100 SERlES
j - PAR TI AL Re STO RA TI ON SODY PA NE LS Ix I I I )SI I ELD FRA Il E REPLA CED AFT ER kt C~ D I T I ON 116
I+ - AL L BO DY PANE LS AND S I DE W I~ DO J FRAhi ES RE shyPLACED AND ~ ESTO~ED
5 -INT ER IOR SHOW IN G CO MPLET E RE MOVAL OF SEATS AND OTHE R AC COUTERM ENTS REPLACED OR RECOND ITIO NED
6 -COMP LETE D I NTER l OR - t EIJ FLOO R
COV ER IN G WIT H S EAT CUSH IONS ETC
7 - COMP LET ED EXTER l OR COACH REPAI NTED AND READY FOR SERV I CE
I N 195 1 Los AN GELES T RANS IT LINES I NAUGURA TED A PROGRAM OF REBU IL D I NG GMC CoACHES OF THE
6 0 00 (BU ILT IN 1940) AND 61 00 ( BU ILT IN 1941) SER IE S A s OF JU LY 1954 62 COACH ES HAD BEE N
REBUILT WITH 40 ST ILL ON WORK ORDERS BUT IN PROCeSS THE CURRENT EST IM AT ED CO ST OF THIS
P ROGRMil I S AN AV ERAGE OF ~3500 PER COACH THE P U C S TAF F EST IMA TES THE LIF E OF TH ES E
COACH ES TO BE AN ADDIT IO NAL THR EE YEAR S FRO M DATE OF COMP LETI ON COS TS OF REB UILDING AR E
SHOWN I N THE RATE BAS E RE LATIV E TO THE APPROP RI ATE WORK ORDER AN D THEREFORE ARE NOT INCi UDEu
IN THE I NV ESH IENT FOR 60)0 AND 6100 S ERI ES COACH ES SHOWN ON CHAR T No 4
LOS ANGELES TRANSIT LINES SSTIMATED RATE BASE AND DEPRECHTION EXPENSE
12 I~ONTHS ENDING OCTOBSR 31 1955 CISE I - VnTH PRY-SENT METHOD OF SERTICE - APPLICATION NO 35601
Gum October 31 1954 As of October 31 1955
Line
No Item (1)
Iccnunt Number Invcstment
(2)
(3) Reserve
(4)
Inve stmen t Less
Reserve (5)
Remaining
Life (6)
In
Inve s tIDen t Less
vestment Reserve Reserve (7) (8) (9)
Depreciation Expense RAte YeAr
(10) LAND
1 2
Rights of VVAY Other Lmd
502 503
S 426974 1931112
$ 426974 1931112
$ middot 426974 1931112
$ 426974 $ 1931 112
EQUIP~NT ONl~ITDEPRECI~TION
3 Auto Tr011ey pcc53033Jf~034288 $ 7167640 $ 6866648 V3rious $14034288 $ 8125353 $ 5908935 $ 957713
PROPERTY ON GROUP DEPRECIATIJN OverheAQs
4 Engineering 501 $ 44651 $ 44651 OrgAnizAtiorfshy 546 601749 601749~ 5
6 Interest 547 middot 916884 916884 7 Gnding 504 1117084 1118084 8 All Other 505-545 27021634 4 Base 27141634 _____ _________ 9 Suttotal
(Lines 4 to 8) $29702002 $22441215 ~ 7260787 $29823002 ~23516286 $ 6306716 $1081071_
10 Tr)W(Lines 123 amp 9) ~46094376 $29608855 ~16485521 $46215376 $]1641639 $14573737 $2038784
11 RATE BASE Use - $2039000 12 Avenge 0f $16485521amp ~1+573 737 $15530000 13 Work in Progress 100000 14 M1terials amp Supplies 735000 15 Bond Deposit - City Fnnchise 411000 16 Deposit for PL Insurance 150000
17 Totil RAte BAse $16926000 8 t ~
-It- rhjor PArt of Acct 546 is Supervisinn --J
-----
LOS ANGELES TRI-NSIT LINES ESTThiIiTED Ri1TE BASE AND DEPRECllTION EXPENSE
12 NiONTHS ENDING OCTOBER 31 1955 CIlSE II - SSUMING MOTOR COACH SUBSTITUTION ON CERTHN RAIL LINES AS PROPOSED m iiPPLICilTION NO 35728
---- --------------- As f Oct)ber 31 195amp As of Oct0ber 31 1955 Inve sUn8nt Investment IBpreciaticn
Line Account Le ss REffiainin~ Less ExpensE No Item Number Inve-stmcnt ReS8riTe Reserve Life Investment Reserve ~ Reserve Rate Yeqr
(T) T2) 0) (Ii) (5) (6) (7) (8) (9) (10)
Ll~ND
1 Other LAnd 503 ~ 1925510 $ Ci 1925510 ~ 1925510 $ 1925510
EQUIP1A~NT ON UNIT DEPRECIATION 2 itutoIrol1eyPCC 5))3338 $16392563 $ 9323673 $ 7068890 Various $16392563 ~10391985 $ 6000578 $1068312
BUILDJNGS 3 General Office-~ 522 $ 916255 $ 563016 ~ 353239 1917 Yrs$ 916255 $ 581446 $ 334809 $ 18430 4 Shops Grgs Admin 523 amp524 2733772 1013500 1720272 2320 Yrs 2733772 1087633 1646139 74133 5 Subtotal (Lines 3 amp4) 3650027 ~ 1576516 gt 2073511 igt 3650027 11669079 ~ 1980948) 92563
~ PROPERTY ON GROUP DEPRECIATION Overheaas
6 Engineering 501) 7 Organizqtion 5~6) tt 1563178 ~ 1563178 8 Interest 547) 9 Grlding 504)
10 Righ ts of Vgy 502 117922 117922 11 All Other 505-5h5 15 651 31 7 15 771 31 7 ~---7-=-~-- lr-r-----=~ -x---r---~ 12 Subtotal (Lines 6 to 11) )17332417 $11343350 ~ 5989067 1117 Yramp$17452417 ~11833307 ~ 5619110 ~ 495957
13 Totql(Lines 125 amp 12) ~39300517 822243539 ~17056978 839420517 023894371 015526146 01656832
14 RATE BASE Use ~1657OOO 15 Avcr~ge of ~1705697B qnd )15526146 016292000 16 Nwk in Progre s s 100000 Am)unts sh)wn include lpplic3ble -werheqds fr)ll 17 Haterills amp Supplies 735000 Accnunts 546 amp 541 18 Bond Deposit - City Frqnchisc 411000 cent Investment ~d depreciation reserve assumes all 19 Deposit for PL Insurqnce 150000 retirements for the lines to be cmiddotmvcrted 1--3
20 Use Vqlue - Fully Depreciated CJtches 1)2000 ~re m~de 3S ) f November 1 1954 qnd that the ~ full unnunt middotf r e tirements qre charged to the EJ
21 Tot-l R1te Blse ~17840000 reserve co
10S ANG3LSS TRANSIT LI~S
INVESTWNT DSPRCIATICN R~SsRVS AND EXPSNS~ FOR ~QUIPMLNT ON UNIT PLAN DEPR3CHTION
CASES I AND II APPLICATIONS NO 35601 AND 35728
As of Oct0ber 31 ffi4 As of October 31 1955 Line NoTotal Investment fnvestment Depre No Item of Life Investment Reserve Less Investment Reserve Less Expense
Units Reserve Reserve Rate Year (1) (2) (J) 4) - ---(~ CD) en -- --8)----- -(9j- (10)
For Case I 1 Motor Coach Groups
62006300 66-6900 hOh 12 Yrs$6421159 $4728599 ~1692560 ~ 6421159 $ 500 1011 ~1330lh8 $ 362412 2 5000 6hoo 75 10 II 1486387 77~175 711212 1h86387 92h851 561536 149676 3 Coaches on order 100 10 II 2285400 2285400 2285400 2265J~0 2058860 226540
II
I 5 Automobiles 51 V3r 99485 50916 h8569 99485 66540 329h5 15624 ~ 6 Trucks amp Service Cars 56 II 280584 250572 30012 280584 265813 lh771 15241 I 7 Misc( Fare BoxesMotors) 170193 115191 55002 170193 122271 47922 7080
h Trolley Coaches 110 15 2108h09 908560 1199849 2108h09 1Oh6116 1062293 137556
8 Total of Lines 1 to 7 ~12851617 ~~6829013 ~02260h ~12i351617 ~ 77h3lh2 $5108475 $ 914129
9 PCC Rail Cars 40 25 rsJ~ 1182671 ) 338627 gt 84h04h 1182671 ~ 382211 ~ 800460 $ h3581~
10 Case I - Line 8 + Line 9 $14034288 $7167640 $6866648 ~14034288 $ 8125353 t5908935 $ 957713
For Case II
11 6000 amp 6100 Series MC 150 FD ~ 2092963 $2070463 ~ 22500 $ 2092963 $ 2070463 $ 22500 12 Work orders on 6000s
amp 6100 s 3 Yrs 265312 61860 203452 265312 144007 121305 $ 82147 13 PCC Rail Cars 401717 1182671 362 337__ ~~~ 334 1182671 43473 ___748298 72036
14 Case II - Lines 8 + 11+ 12+ 13 ~16392563 9323673 n068890 $16392563 ttl0391985 ~6ooo578 ~1068312
t-3
125 other PCC Cars are in Group Depreciation Schedule G ~
Note579 motor coaches under Case I and 729 under Case II D
LOS AlJGELES TRANSIT LnlES TABLE 10 ESTIMATE]) RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD E1TDUTG OCTOBER 31 1955 CASE I - UNDER PRESENT OPERATIONS
12 Months Jan-June
Line No Item
Tab1e Ending or May 31 1954 Page Fe fer
(2)
Book Record
(])
1954 Annualized
Book Record
(4)
Case I-A Present
Fares (5 )
Case I-B Applicant l s
Proposed Fares
(6)
1 Vehicle Miles T2 34036066 33569520 32747000 32440000
Revenue 2 3 4 5
Passenger Revenue Unredeemed Tokens Other Revenue Total
T1 P7 P7
$24849150
122402 $25044557
$24517866
183810 $24 701676
$22940000 $25513000 20000
1821 000 182 000 $23147000 $25700000
6 7 8
Operating Expenses Rail Trolley Coach Motor Coach
T3 T3 T3
$ 8493744 1442232 8622956
$ 8575232 1451430 8 n6470
$ 8115900 $ 8047000 1366000 1355400 8144200 8088900
9 10 11 12 13
Sub-Total Depreciation Operating Taxes Wage Increase Total
T7 T6
18563932 2176608 1676358
$22416898
18743132 2185804 1760600
$22689536
17626800 17491300~ 2039000 2039000 1663800 1711700
439800 436500 $21769400 $21678500
14 Operating Income $ 2627659 $ 20J2JJQ $ 1377600 $ 4021500 15 Other Inc amp Inc Deduct 21258 (9328)
16 Net Inc Before IncTaxes 2635217 2002742 1377600 4021500 I 17 Income Taxes (St ampFe~) 1302758 1026568 647500 1 999 000 18 Net Operating Income 1332459 976174 730100 2022 500 i 19 Allowance T4 112216 80752 1541000 1541000 20 Net Income $ 1220243 $ 895422 $576100 $ 1868500
21 Rate Base T7 $17393000 $16727000 $16926000 $16926000 22 Rate of Return 70~ 535 340 1104
Operating Ratio 23 Before Income Taxes 9405 8435 24 After Inc Taxes ampAllow 9751 927)
Not Applicable
Computed by PUC Staff Allowance for interest and amortization of abandoned property (Red ]figure)
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IDS ill~GElES TRANSIT LINES ESTIMATE OF OPERATllIG EX-degENSES JuID TAXES
FOR 12 f10NTHS ENDING OCTOBER 31 1955 CASE II - KOTOR COACH Sl~STITUTION - j~PLrCATION NO 35728
Table or Line Page Hotor Trolley
~To Item Reference Streetcar Coach Coach Total
l 2 3
4
I S
rv 6VJ
I 7 8 9
10 ll 12 13 Ih 15 16
17
13
(ll- -- shy
Vehicle Miles Case I - Present Operation Case II - Proposed Operation
Increase in i1iles
Opere amp I1aint Expense - Case I
Changes in Expense Due to Conversion Way and Structures Substation Operation Rail Crossing Protection Vehicle Maintenance Servicing of Vehicles Tires - Hotor Coach Equipment Operators vJages Fuel Oil or Power 21 amp PD Insurance ~Jorkmen I s Compensation Insurance Training Drivers for Conversion
Total Increase in Expense
Oper amp i1aint Expense - Case II (Line h +
Operating Taxes - Case II
(Red Figure)
(Z)
T2 T2
T3
Line 16)
D)
11887000 6691000
(5196000)
~ 8115900
t (11500) (42200) (55000)
(270900) (76900)
(1232900) (219800)
(liT shy
18314000 23h67000 5153000
amp 314~900
~
355000 h3300 32500
1154300 153000
-C5) (6)
2546000 32747000 2949000 33107000
403000 360000
S 1366000 ~gt 17 626800
If (144500) 1 ~ v$ ltW (42 200 ) - bull (55 000 ) 7HmiddotVj
19200 103300 M~ f~
3000 ( 30600) A N- i
32500 94400 15800 14600 (52206)
(1l1100) ~ [ (1200) Glh
30000 ~i
p (258200)
$17368600 r3
c~ 1786600 cr ill
I- CD
I- i-
TABLE 12
LOS ANGELES TRANSIT LINES ESTIMATED RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD ENDING OCTOBER 11 1955 CASE II - MOTOR COACH SUBSTITUTION - APPLICATION NO 15728
Table Case II-A Case II-B Line Item Refer- Present Proposed
Nos i FSles Faresect~nce
( 1) (2) (3) ( 4)
1 Vehicles Miles T 2 33107000 32817000
2 Operating Revenue T 10 $23147000 $25700000
O~erating E~ense
3 Operating and Maintenance Tll $17368600 $17234900 4 Depreciation T 8 1657000 1657000 5 Operating Taxes Tll 1786000 1837800 6 Wage Increase 434ZQQ 431 lt)00
Total $21246300 $211612007
8 Operating Income $ 1900700 $ 4538800 Other Inc amp Inc Deductions it 119
10 Net Income Before Income Taxes $ 1900700 $ 4538800 11 Income Taxes (State amp Federal) 214 200 2262 400 12 Net Operating Income $ 985800 $ 2275400 13 Allowance T 4 ~ 2090QO ~ 20200Q 14 Net Income $ 776800 $ 2066400
15 Rate Base T 8 $17840000 $17840000 16 Rate of Return 435 1158
012erating Ratio 17 Before Income Taxes 9179 8234 18 After Income Taxes amp Allowance 9664 9196
Not Appli cable
Allowance for interest and amortization related to streetcar abandonment of the past and for abandonmcnts proposed in Application No 35728
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LOS ANGELES TRANSIT Ln~S ESTH1ATE OF HILES TO i3LJ OERATEJJ FOR THE TlJ7IVE HONTHS-ENDING OCTOBER 31 1 q55
A UNDJilR PRESENT OPERATIONS B WITH HOTOR COACH SlfilSTITUTION AS PROPOSED IN APPLICATION NO 35n8
CASE I - PRESENT OPERlTI03S Present Fares Propose(l Fares
Estimatet Estimated Estimated Hiloago Estimated Est T)imirDl l4i Recluc-Estimatea Miles Miles (a) Decrease In Traffic Roduction Mileage of Traffiction Below Proposed
Item As Shown In Miles of the Decline Duo TrafficPresent FaresBelow TrafCol6 Due to Fares PDC Staff Dacrease9-15-54 to Docline (2) x At PrescntDiminution Col 6 x
________ (3) x (4) (100 - Col 5gt Fares (7) x (3) (100 - ColFJdlibLLJamp~Passengers ~-55 8) (1) (2) (3) (4) (5) (6) (7) (8) (9)
streetcar 12041861 30 43 L29 11587000 39 117 11748000
Trolley Coach 2546000 92573633 25f~ 43 1 075~b 3 0 975 2521000
Motor Coach (b) ]8li-~4 849 20 4 3~ 86 10 18106000 39 78 18163000bull I~
f-- ---J Total (b) 33080343 32739000 32432000
CASE II - OFSRATIONS PROPOSED IN APPLICATION NO 15728 Present Fares Proposed Fares
Item Estimatefl 1JIiles(a) As SnownEstimate~- Miles Present FarosEstimate~ Milos Proposed ___-~___------I=n~PDCStaff Exhibit No Col lOx (100 - Col 5) Faros Col llx (100-CQl~
(1) (10) (11) (12)
Stroetcar 6778211 6691000 6 61300O
Trolley Coach 2981376 2949000 2920000
Motor Coach (b) 236629)) 23459 1000 2276 7000
~Total (b) 33422542 33099000 32809000 ill r trl
(a) Based on th~ l ovel of traffic of Septombor 1954 I)
(b) To the estirl8ted milos shown here should bo a~dod 7500 Charter Miles
t-3
- - - - - - -
LOS kJGELES TRANSIT LINES Table 3 Sheet 1 of 3ESTIMATE OF RAIL OPERiTINGifiPENSES
CASE I - UNDER PRESENT OPERATIONS
Company Estfor 12 Mo~ Records Ending
Acct Jan-May 1954 103155 No I t e m Annualized Present Fares
Car Miles Way and Structures
1-24 ill Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 Superintendence 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conducting Transportation 63 Superintendence 64 Conductor Motormen etc 66 Car Service Emp 67 Miscel1 Car Service Exp 70 Car House Empa
Var other Cond Transp Accounts Total
Traffic 79 Superintendence 80 AdvertiSing
Total General
83 Gen Off - Sal and Exp 84 Gen Off Emp - Sal amp Exp 85 Gen Off a SuppJies amp Exps 88 Pensions
(93 Insurance PL amp PO (93 Insurance Workmens Comp (93 Insurance Other
Var Other General Accounts Total
Total Rail Operating Expense
Cents per Car Mile
12573226
$ 722615
$ 79078 759547 146522
$ 985141
$ 18190 174643 482945
23033 $ 698 811
$ 438900 3257666
104525 76608
351696 57240
$ 4286635
$ 6346 18353
$ 24699
$ 83645 123281
35570 4818S8 765019 46840 13664
287090 $ 1836967
$ 8554874
68004cent
ll887OOO
$ 722600
$ 79100 671200 147900
$ 898200
$) 18200 174600 547200
28900 $ 768900
$ 438900 2890900
104500 72200
351700 59600
$ 3917800
$ 6300 18400
$ 24700
$ 78900 123300 35600
456600 750400 ~ 43100 13700
282tl00 $ 1783700
$ 8115900
6827cent
Co
)
-
(1
I
flI
Car Miles Oper middot Exp Case I-B - Applicants Proposed Fares 11748000 $ 8047000 ~ Expenses Variable with Car Miles Wage rates used herein are those whieh
Ac30amp33 565 cent~ile prevailed immediately prior to 6154 59 460 The cost of the wage increase which 64 2432 tecomes fully effective on 12154 is 70 148 50 of total shown separately in Results of
Total 3605 centmile Operation table ~ See Table 5 for amounts under Proposed Fare
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- - - - - ------
LCB ANGELES TRANSIT LINFS Table 3 ESTIMATE OF TROLLEY COACH OPERATING EXPENSES Sheet 2 of 3
CASE I - UNDER PRESENT OPERATIONS
Acct No I t e m
Coach Miles Way and Structures
1-24 All Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 --superintendenoe 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conduoting Transportation 63 Superintendence 64 Operators Wages 70 Car House Employees
Var Other Condo Transp Accounts Total
Traffic 79 Superintendence 80 Advertising
Total General
83 Gen Off - Sal amp Exp 84 85
Gen Off Emp - Sal amp Exp Gen Off Supplies amp Exps
88 Pensions (93 Insurance PL amp PD (93 Insurance Worlanen s Comp (93 Insurance Other
Var Other General Accounts Total
Total Operating Expense
Cents per Mile
Case I-B - Applicants Proposed Fares
Expenses Variable with Coach Miles Acs 30amp33 477centmile
59 3038 64 2342 70 075 50 of total
Total 3232centjmi1e
~ See Table 5 for Amount Under Proposed Fares
Company Estfor 12 ME Recorda Ending Jan-May 1954 103155 I ~
Annualized Present Fares ~
2629188 2546000
$ 26518 $ 27000
$ 32628 $ 32600 125469 121400
11012 9600 $ 169109 $ 163600
$ 3770 $ 3800 35770 35BOO 75017 86000 1
8417 9000 $ 122974 $ 134600
$ 99161 $ 99200 612513 596300
38273 38300 21802 21500
$ 771749 $ 755300
$ 979 $ 1000 3588 3600
$ 4567 $ 4600
$ 15134 $ 12100 22990 23000 5669 5700
87614 83000 165089 97300 I
8516 8000 ~ 3054 3100
49076 48700 $ 357142 $ 280900 6
$1452059 $1366000
5523cent 5365cent
Coach Miles Oper Exp 2521000 $1355400 -- -0
Wage rates used herein are those which prevailed immedshyiately prior to 6154 The cost of the wage i~crease which becomes fully effective on 12154 is shown separately in Results of Operations table
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LOS ANGELES TRANS1 LINS TABLE 3 ESTIMATE OF MOTOR COAOH OPERATING EXPENSE Sheet 3 of 3
CASE I - UNDER PRESENT OPERATIONS
Company Estimate for Records 12 months
Jan - May Ending Acct 1954 103155 No I t e m Annualized Present Fares ~
Coach Miles 1832~158 18314000 Equipment Maintenance amp Gara~ Expense
4110 Supv - Shop and Gar $ 142788 $ 142800 4140-2 Repairs to Rev E~uipment 1097376 848800 4150 Servicing Rev Equipment 308373 307700 4160 Tires - Rev Equipment 123305 125200 Var Other Maint Accounts 151444 147300
Total $1823286 $1571800 Transportation Expense
4210 Supervision of Transp $ 487284 $ 487300 4220 Drivers I vrages 3767184 37589001= 3) bull
4230 522175 523800 )0
4240 Oil for Revenue Equipment 17256 19500 JOJ
Var Other Trans Exp Accounts 60153 58200 Total $4854052 $4847700
Traffic and Advertising 4470 Advertising $ 21593 $ 21600 Var Other Traffic Accounts 7)329 76500
Total $ 94922 $ 98100 Insurance
4510 Salaries and Expenses $ 18818 $ 18800 4520 Insurance PL amp PD 786322 542OOOp 4541 Insurance Workmens Compo 51458 50100p Var Other Insurance Exp 11357 11700 - shy
Fuel for Revenue Equipment _
J Total $ 867955 $ 622600 Administrative and General
4611-2 Gen Officers - Sal amp Exps $ 90806 $ 73500 4613-6 Gen Off Employees - Sal ampExp 138043 137000 4620 Law Expense 12910 16000 4630 Gen Office Supplies amp Exp 51689 44800 4640 Communication Expense 41143 45500 4652 Employees vlelfare 525737 498200 4655 Purchasing amp Stores 120790 120800 Var All Oth~r Adm amp Gen Exp 70090 53900
Total $1051208 $ 989700 Rents 15000 15000
Total Motor Coach Expense $8706423 $8144900 Cents per Mile 47middot50cent 4447cent
Coach Miles Ouer Exp Case I-B - Applicants Proposed Fares 18171 000 $8088900 -----shy
Expennes Variable with Milos Wage rates used herein are those which Ac 4140 463centmile prevailed immediately prior to 6154
4150 084 50 of total The cost of tho wage increase toJhich beshy4160 068 comes fully effective on 12154 is clnwn 4220 2052 separately in Results of Operation table 4230 286 4240 011
Total 2964centmile cent See Table 5 for Amount Under Proposed Fares 20 shy
TABLE 4
IDS ANGELES TRANSIT LUIES AMORTIZATION AND INTEREST ALLOWANCE
PAVING AND REMOVAL OBLIGATIONS - CASES I AND II APPLICATIONS NOS 35601 AND ~5728
A - Obligations from Abandonments Prior to 1954
Yearly Amortization $132000 Interest 16000
Total $148000
B - Obligations from Abandonment of Portions of IV and Rlt Lines (July 25 1954)
Yearly Amortization $ 4000 Interest 2000
Total $ 6000
C - Obligations from Abandonments as Proposed in Application No 35728 (November 1 154)
Yearly Amortization $ 35000 Interest 2JOOO
Total $ 55000
For Case I - Items A + B $154000
For Case II- Items A + B + C $209000
Includes cost of removal of electrical distribution system ($123700) and of substation equipment ($21600)
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LOS ANGELES TRAl~SIT Lli~S
RJBLIC LIABILITY PROPERTY DAl1AGE AND 1l0RIJftElI i S CCMFEi-TSATION EXPENSE illLATED TO SOUln~EbTT MILES Aim R3W-RLS PAS~lWEFS
CASE I - UNDER PRHSENT OPSHATIONS 1947 - 1950 Inc Jan-May Est FOr
Line Ito m 1951 1952 1953 195412 MosEnd No Total Av per Yr Annualizod 10 31 55
1 Lossos paid (n) $ 3890 $ 972 $ 1082 $ 902 $ 580 $ 262 2 Losses ostimato~ (a) 39 10 52 280 634 881 3 Reinsurance costs (a) 282 71 62 69 ____81 65 4 Total Losses_amp Insurance (a) $ 4211 $ 1053 $ 1196 $ 1251 $ 1295 $ 1208
5 Expenses paid (a) $ 1536 $ 384 $ 353 $ 385 $ 242 $ 170 6 Expenses estimated (a) 7 2 _ __ 11) 61 182 24S 7 Total expenses (a) $ 1543 $ middot 386 ~ 363 $ 446 $ 424 $415 8 Total LossesReiils amp Exp (a) $ 5754 $ 1439 1559 $ 1697 1719 $ 1622
(Lina 4- + 7) I 9 Number of claims filed 59991 14998 11588 11104 10246 9228
N
N 10 Vehiclo miles (millions) 153 4 384 356 351 346 336 I
11 Revenue Passon~crs (millions) 10093 2523 1924 1746 1661 1531
12 Loss Per 11i1 lliilos (4 ~ 10) ~27451 $27451 ~33596 $35~641 $37428 $35952 $35000
13 Loss Por i-Hllion Pass (4 11) $ 4172 $ 4172 ~ 6216 ) 7165 ~ 7797 $ 7890 $ 7500 14 Expensos por claim (7 f 9) h
ltfgt 2572 Y 25middot72 i) 3133 $ 4017 4138 $ 4497 $ 45 15 Claims per million miles (9 10) 391 391 326 316 296 275 280
16 Claims per million pass (9 11) 59 59 60 64 62 60 60
Ul p- CD (I)
(a) Thousand of dollars amp8
t-G o ~ H
J N
TABLE 5 LOS ANGELES TRANSIT LUTES Sheet 2 0 f 2
ESTIMATE OF PUBLIC LIABILITY AND PROPERTY DAMAGE AND WOBKMElJ 1 S COMPENSATION EXPENSES
FOR 12-MONTH PERIOD ENDING OCTOBER 31 1955 UNDER CASE I-A AND CASE I-B - PRESENT OPERATIONS ~lITH PRESENT amp PROPOSED FARES
Line 110
Cost Factors 1 Claims per million revenue passengers bull bull bull 2 raquo raquo vehicle miles bull bull bull 3 Expense per claim bull bull 4 Losses per million revenue passengers
raquo raquo vehicle miles bull bull bull bull 5 bull bull
60 280 45
7500 35000
Estimated Expense For PL and PD and Workmens Compensation Insurance
Case I-A Present Fares
6 Number of rovenue passengers (millions) 1395
7 Number of vehicle miles(millions) 3275
A - Basod on Number of Passengers 8 Losses 9 Expense
10 Total
B - Based 11 Losses 12 Expense 13 Total
$1046200 376700
$1422900
on Number of Vehicle Hiles $1146200
412700 $1558900
14 Average of A and B (PL amp PD and Workmen 6 Compo - $1490900
15 Workmens Compensation Insurance 101~200(a) 16 PL and PD Insurance 1389700
Distribution of Total PL amp PD Percent
17 Rail Operations 541 $ 750400 18 Trolloy Coach Operations 7 97300 19 Motor Coach Operations ~ -542000 20 Total 100 $1389700
Case I-B Proposed Fares
1341 3244
$1005700 362100
$1367800
$1135400 408700
$1544100
$1456000 100200 (b)
1355800
$ 732~100 94900
528800 $1355800
(a) Rail=$43lOO Trolley Coach=$8000 and Motor Coach=$50100
(b) Rail=$42 600_ Trolley Coach=$7 ~ 900 and Hotor Coach=$49 (00 _ --- I
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lA3LE 6
LOS ANGELES TRANSIT LINES ESTIHATE 041 OPERAT1NG TAXES
FOR 12 MONTHS ENDING OCTOBER 31 1955 CASE I - PRESENT OPERATIONS
APPLICATION NO 35601
Book Record Case I-A Case I-B L1ne I t e m 12 Months Present Proposed
No End 5-31~ Fares Fares(~ ) -=-----=-(3)~--=--~r(4~)~-(1)
1 City Franchise Taxes $ 473687 $ 434600 ~ 481900
2 Property Taxes-Ad Valorem 457963 435000 435000
3 Fuel and Oil Taxes 360580 337700 335100
4 Motor Vehicle License Taxes 136984 Ib8 900 168900
5 Transportation License 15600 21~00 (3 B of EHlshy
6 payroll Tuxes 265000 262500
Other raxes 7000 70007
Total ~ip 1 603 800
Net after weight fee credit
-24shy
Rate Base and Depreciation Expense
In General
In accnrdance wi th current Cornmi ssion practice of treating all
property en a remaining life basis the Commission Staff has made an
analysis of Applicont1s property As 0 rosult as of January 1 1954
1 Motor coaches of the series 6200 6300 6600 6700 6800
and 6900 (404 coaches) were put on a total life basis of
12 years This is considered reasonable in view of the
attained age and the condition of the fleet
2 The annual accrual of the Genoral Office Building (Acct 522)
was adjusted to reflect a totel life of 50 years
3 Buildings in Accounts 523 and 524 were assigned a remaining
life of 24 years with depreciation reserve adjusted to reflect
age-life condition
Under both Cpses I and II 100 nel motor coaches have been included
in the rate base as of November 1 1954 tho beginning of the rate ye~r
Other Lpnd (Acct bull 503) and Rights of Way (Acct 502) hewe been
adjusted to reflect estimated original cost
Under Cese I
150 motor coaches of the 6000 and 6100 series (including current
work orders for rebuilding) have boen deleted due to the inclusion of the
100 new coaches as well as tc conform to the equipment roquirements set forth in
Staff Witness Hibbards Exhibit ith 10 f ~r spares
All property on group plan depreciation reflects the current
4 rate of accrual with nermal additions and retiroMents tken into considerashy
tion
The 40 P C C crrs on uni t plan depreCiation wore extended as
of Innuary 1 1954 to a total life of 25 years
12 shy
Under Case II
As evidenced by correspondenco betoJeen the Commission and
Applicant and the request for changes in accounting practices as outlined
in a letter from the Applicant to the Commission under date of April 291954
it is assumed that applicant intends to completely convert to motor coach
operation by the end of 1965 The Rate Base under Case II assumes that all
property relnted to the rail and trolley coach oper2tion ltlill be fully
depreciated by that time This would include all rel~ted items of property
hitherto considered non-dopreciable those rel~ted ~o the present proposed
conversion havo been charged to the group plan depreciation reserve as of
November I 1954 those remaining 2xe depreciated over ~ 12 year period
boginning January 1 1954
150 coaches of the 6000 and 6100 series have been included in order
to satisfy oquipment requirements as outlined by Staff litness Hibbards 1
Exhibit No The work orders for rebuilding 83 of those coachos have
been put on a 3 year lifo (Soc Chart 5)
In conjunction wi th the rate base presentAtion there are shown in
Chart ) pictures and data of the streetcars and trolley coach equipment as
of September 1 1954 Camp~rt 4 shows ~ictures and data of motor coach equipshy
mont as of September I 1954
Amortization and Interest Allowance
Amortization and Interest allowance f or abandcnment oblig~tionsunder
Cases I and II is sho~m in Table 4 The estimates ccntained therein refloct
an income tax credit on the total amount of the obligations The estimate
under Case I is fer obligations incurred prior to 1954 and oblig~tionsconcerned
nV ttwith changos on tho ruld tTRtl lines made effective JUly 25 1954 Under
- 13 shy
C~se II is added the estin~ted obligation in connecticn with the abandonment
nsprop0sed in Application No 35728
Results of Operatirn
Ou-so I Relbvant infr-rr1pticn sh0vm in the f0regcing text ancl
in the tables is summarized in Table 10 - Estimated
Results of Operation - Case I and from this informashy
tion a rate of return and operating ratios are
calculated under Present and Proposed Fares
Case II Using the basic inf0rmation as used in Table 10 in
c0 njunction with the estimate of operating expenses
for Caso II as shown in Table 11 the rates of
return and operating ratins under Case II are developed
in Table 12 - Estimated Results of Operation - Case II
- 14 shy
LO S ANGELES TRANSIT LINES
TREN 0 OF WEEKLY REVENUE- PASS ENGER5 (E)(CLU SIVE OF POSTAL EMPLOYEES AND RIDERS ON SCHOOL FARES)
FEBRUARY 1952 TOJULY 1954 AND
ESTIMATE FOR 12 MONTHS ENDING OCT 31 1955
~ 3middot5 W w ~
a w 0
_ I cJ)
a 30 uJ 19 Z UJ cJ) cJ)
laquo 0
IL 0 25
([)
z 0 J J
~
bull ~ I
l T
-
- -
ltI-N
- 2
- wr-
u
- 2
--
w
- u
A I
1 ( A A I
j
~ J r 1f
I a V J 1 fv V V ~J
V 1IV I 1 II I
I I Jr 0
~
l) - 0 (c
rlt1
gt bull r gt 0 10 z I z ~
I I I w iw
I
I I EST I~ATE FOR 12 foONTHS ENDING OCTOBER 31 1955 w I UNDER PRpoundSENT FARES-
I w
u A - PASSENGERS PER WEEK bullbullbullbullbullbullbullbullbullbullbullbull 2 596 000
u B - PASSENGERS PER yEAR bullbullbullbullbullbullbullbullbullbull 135 363 000
- Z Ii
w I
w I
lt I
u u i
it i--0 w
~ - -lt 0-H gt- =-1--1 a 0
-Y
VI
I
I )
T ~20
JAN f EBMAR APRoMAY J UN JUL AUG SEPOCTNOV DEC JANFEB MARAP R MAY JUNJULAUG SE P OCT NOVmCJANfEB MARAPRMAY JUN JUL AUG S EP OCTNOV DE C JAN FEB MAR APR IoiIAY JU N gt- c-+shy
rv1952 953 954 1955 Wl
LOS ANGELES TRANSIT LINES ESTIMATE OF REVEruE PASSENGERS lID PASSENGER REVENUE
FOR 12 MONTHS ENDInG OCTOBER 31 1955 CASE I AND CASE II APPLICATION NO 15601 AND NO 35728
Present Fares Applicants Proposed Fares Est
Percent of Dlmin- PassenshyLlne of Total Fare Zone Passengera Revenue Fare utlon cera Revenue -=-----Ho-- Item Orldnalt Adjusted (Cents) Paus i cent (Cents) ~ cent cent
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
Adul t Passengers
lOne-Zone 15 65 58599 $ 8790 17 333 56648 $ 9630 2 1427 35 31553 4507 17 475 )0054 5109 3 666 666 1475 100 90152 $13297 86702 $14739
4 Two-Zone 20 65 25780 $ 5156 23 3middot75 24813 $ 5707 5 1927 ~ 13881 2677 ~ 481 13212 30)9 6 293 293 19751 100 39661 $ 783) 38026 $ 8746
7 Three-Zone 25 65 3476 $ 869 29 400 3337 $ 968 a-- 8 2427 22 1871 454 29 485 1 180 516 I 9 38 395 2475 100 5)47 $ 1323 511 $ 1484
10 Four-~one )0 65 1)2 $ 39 35 417 126 $ 44shy11 2927 35 71 21 35 488 68 24 12 ~ ----l5 29 75f 100 20) $ 60 - 194 $ 68 13 Sub-Total 1000 1000 ~ 135363 $22513 1300)9 $25037 14 Holly Park 10 200 $ 20 10 200 $ 20 15 Total Adult 13556) $225)) 130239 $25057
16 School 9 2797 $ 252 10 278 2719 $ 272 17 School 12 561 67 15 625 526 79 18 Total School )358 $ )19 )245 $ 351 19 Post Office 1427 616 $ B8 17 616 $ 105 20 Grand Total 139537 $22940 1)4100 $25513
cent (000) Omi tted ~ 1F Weighted Average Fare ~ If See Chart 2 + + As deter~ined by traffic checks and used in previous Staff reports
CHART 3
rr LOS AtJGELES
TRANSIT LINES
STREET CAR AN 0 TROLLEY COAe H
EQUIPMENT AS OF
H4 OR K4 OPEN END WOODEN SEATS H3 CLOSED ENDLEATHER S EATS SEPTEMB E R f 1954
JIshy
OLDER T YPE OF PCC CAR NE WER TYPE OF PCC CAR
8000 SERIES TROLLEY COACH 9000 SERIES TROLLEY COACH 9100 S ERI ES TROLLEY COACH
STREET CARS TROLLEY COACHES
ALL H3 H4 K4 PCC OTHER TOTAL 8000 9000
SEATS 48 48 48 12 5-61 SEATS VARIOU 44 4540-28 SEATS
EQU IPME NT ASSIGNMENTS UNDER PRESENT CoMPANY BASIS EFFECTIVE SEPTEMBER 12
9100
46 TOTAL
SCHEDULED SPARES
TOTAL ASSIGNED UNASSIGNED
TOTAL OWNED
SCHEDULED
SPARES
TOTAL ASSIGNED UNASSIGNED
TOTAL OWNE D
354 22 57 5
411 2 37 101 13
60 165 37 512 40 EQUIP MENT RE QUIREMENTS PRESENT SERVICE FOR RATE YEAR)
354 36
390 122 512
34 6
40 30
81 16
81 9
90 20
110 EQUIPMENT REQUIREMENTS WITH SERVICE AS P ROPOSED IN
ApPLICATIO N 28 (FOR RATE YEAR
SCHEDULED 20431 23 150 93 4 2 21SPARES 1015
TOTAL ASSIGNED 165 22525 10335 UNASSIGNED - 7
TOTAL RETAINED 225 11025 16535 To BE RETIRED 0190 2 7 37 TOTAL Now OWNED 60 110512 215 165 3735
-lE- ESTI MA TED BY P U C STAFF E
2 r
C
-
6600 SER IE S 6700 AND 6900 SER IE S 6800 SER I ES
L I NE 6200 No TE~ 5000 6000 yf 6 100 yf 6300 6400 6600
MACK G M e G M e G M e G MC G M C I i~IA K( amp UODEl NUMBER C-45 -CT TD-4502 rn -4505 TO- 4506 TDH-5103 TOH shy 36 1 2 YE AR BUilT l~ 1940 1941 1945 1951 1947 3 DATE I N SERV I CE 7 -40 1-42 7 - 45 7 - 51 7 -47 4 NUMBER O F CoACHES 50 55 95 200 25 57 5 PU RCHAS ED NEW OR US ED N N
6 S EATI NG CAPAC IT Y 45 45 45 51 36 45 40
~ LE NG TH - OUT S I DE 3~ -0 3~ - 0 37 -0 3~ -6 30 - 6 3~ - 0 3~ -0 WI DTH - OU T S IDE -Oil _-ttl 8 -0 -611 8 - 2 _OM I - 0
9 HE I CHT - OU TS I DE 9 -6 9 shy 5t 9 -6 9 t 4t ll 9 - 2 9 0 9 -6 10 A I SL( HEADROOM 76 77 78 78 76shy 8 76
11 A ISLE WI DTH 19 2 1 26 22 22 20 12 TY PE O f DR I V( HYD HYD HYD HYO HYD HYD
13 BRA KE HORSE POWER amp FUE L 165io) 165( 0) 165(0) 110(0) 165(0) 165(0) 14 Bo DY f RAME MA TE R I AL AL AL AL AL AL NOT G I VE N 15 Bo DY PANEL ~1ATE R I AL AL AL AL AL AL NO T GI VEN
16 ROO F MATER I AL AL AL amp ST AL AL amp ST AL amp ST NO T G I VEN
~ ~ - AT DCC CMBER 3 1 1953shy14 26 15298AV ER AG E INVE ST PER CoACH $ ~ 21962 $ 13 992 17 60 14 209
19 INVESHIENT 1 354 9~ 3 059 506 549 044 7 97 5~ 2 lt164 650 99 466 10 000 509 20 RE SE RV E 1340 6 2 462 923 135951 503 6 1369 1 02 90 896 7 147 497
21 REM AIN ING VALUE (I NCL SALV) 14 250 596 583 413 093 293 869 1 095 548 8 570 2853 012 22 REMA I N I NG LIF E lOYR BAS I S 22 MO 90 MO 43 MO 52 MO 9 MO
23 REMAIN I NG L IFE 12YR BAS I 46 MO 90 MO 67 MO 76 MO 33 MO
yf THC COS T OF REBU IL DING 102 CoACHES OF THC 6000 AND 6 100 SE RIE S NOT I NCLUDE D HEREI N (SCE NEXT PACE)
1941 AN D 1942 MA T ER I AL S WE RE SuBJ ECT TO PR I OR I T ( S AND THEREFOR E STEEL WAS USE D IN PLACE OF
ALUMI NUM FO R BO DY FR AMES PAN EL S AND ROO FS I N SO ME COACHE S O F TH E TD- 4505 SERI ES
G - GASOl I NC D - D I CSE L AL - ALUM I NU M ST - Srr CL HYD - HYDRAUL I C
lt~i
~~4
CHART 4
LOS ANGELES TRANSIT LINES
MOTOR COACH EQUIPMENT
AS OF
SEPTEMB ER 1954IS_T 6000 SER I ES
6200 AND 6300 SER I ES
6
5 CHART
1~A~PLE OF THE DAMAGE TO BODY PANE LS M D RI VET ED JOINTS
2 - COACH WITH ALL BODY PANE LS Il l NDO V FR M1ES M~) SOIIE BO DY BRAC IN G REMOVED
l
LOS ANGELES TRANSIT LINES
PROGRAM OF
REBUILDING MOTOR COACHES
OF THE
6000 AND 6100 SERlES
j - PAR TI AL Re STO RA TI ON SODY PA NE LS Ix I I I )SI I ELD FRA Il E REPLA CED AFT ER kt C~ D I T I ON 116
I+ - AL L BO DY PANE LS AND S I DE W I~ DO J FRAhi ES RE shyPLACED AND ~ ESTO~ED
5 -INT ER IOR SHOW IN G CO MPLET E RE MOVAL OF SEATS AND OTHE R AC COUTERM ENTS REPLACED OR RECOND ITIO NED
6 -COMP LETE D I NTER l OR - t EIJ FLOO R
COV ER IN G WIT H S EAT CUSH IONS ETC
7 - COMP LET ED EXTER l OR COACH REPAI NTED AND READY FOR SERV I CE
I N 195 1 Los AN GELES T RANS IT LINES I NAUGURA TED A PROGRAM OF REBU IL D I NG GMC CoACHES OF THE
6 0 00 (BU ILT IN 1940) AND 61 00 ( BU ILT IN 1941) SER IE S A s OF JU LY 1954 62 COACH ES HAD BEE N
REBUILT WITH 40 ST ILL ON WORK ORDERS BUT IN PROCeSS THE CURRENT EST IM AT ED CO ST OF THIS
P ROGRMil I S AN AV ERAGE OF ~3500 PER COACH THE P U C S TAF F EST IMA TES THE LIF E OF TH ES E
COACH ES TO BE AN ADDIT IO NAL THR EE YEAR S FRO M DATE OF COMP LETI ON COS TS OF REB UILDING AR E
SHOWN I N THE RATE BAS E RE LATIV E TO THE APPROP RI ATE WORK ORDER AN D THEREFORE ARE NOT INCi UDEu
IN THE I NV ESH IENT FOR 60)0 AND 6100 S ERI ES COACH ES SHOWN ON CHAR T No 4
LOS ANGELES TRANSIT LINES SSTIMATED RATE BASE AND DEPRECHTION EXPENSE
12 I~ONTHS ENDING OCTOBSR 31 1955 CISE I - VnTH PRY-SENT METHOD OF SERTICE - APPLICATION NO 35601
Gum October 31 1954 As of October 31 1955
Line
No Item (1)
Iccnunt Number Invcstment
(2)
(3) Reserve
(4)
Inve stmen t Less
Reserve (5)
Remaining
Life (6)
In
Inve s tIDen t Less
vestment Reserve Reserve (7) (8) (9)
Depreciation Expense RAte YeAr
(10) LAND
1 2
Rights of VVAY Other Lmd
502 503
S 426974 1931112
$ 426974 1931112
$ middot 426974 1931112
$ 426974 $ 1931 112
EQUIP~NT ONl~ITDEPRECI~TION
3 Auto Tr011ey pcc53033Jf~034288 $ 7167640 $ 6866648 V3rious $14034288 $ 8125353 $ 5908935 $ 957713
PROPERTY ON GROUP DEPRECIATIJN OverheAQs
4 Engineering 501 $ 44651 $ 44651 OrgAnizAtiorfshy 546 601749 601749~ 5
6 Interest 547 middot 916884 916884 7 Gnding 504 1117084 1118084 8 All Other 505-545 27021634 4 Base 27141634 _____ _________ 9 Suttotal
(Lines 4 to 8) $29702002 $22441215 ~ 7260787 $29823002 ~23516286 $ 6306716 $1081071_
10 Tr)W(Lines 123 amp 9) ~46094376 $29608855 ~16485521 $46215376 $]1641639 $14573737 $2038784
11 RATE BASE Use - $2039000 12 Avenge 0f $16485521amp ~1+573 737 $15530000 13 Work in Progress 100000 14 M1terials amp Supplies 735000 15 Bond Deposit - City Fnnchise 411000 16 Deposit for PL Insurance 150000
17 Totil RAte BAse $16926000 8 t ~
-It- rhjor PArt of Acct 546 is Supervisinn --J
-----
LOS ANGELES TRI-NSIT LINES ESTThiIiTED Ri1TE BASE AND DEPRECllTION EXPENSE
12 NiONTHS ENDING OCTOBER 31 1955 CIlSE II - SSUMING MOTOR COACH SUBSTITUTION ON CERTHN RAIL LINES AS PROPOSED m iiPPLICilTION NO 35728
---- --------------- As f Oct)ber 31 195amp As of Oct0ber 31 1955 Inve sUn8nt Investment IBpreciaticn
Line Account Le ss REffiainin~ Less ExpensE No Item Number Inve-stmcnt ReS8riTe Reserve Life Investment Reserve ~ Reserve Rate Yeqr
(T) T2) 0) (Ii) (5) (6) (7) (8) (9) (10)
Ll~ND
1 Other LAnd 503 ~ 1925510 $ Ci 1925510 ~ 1925510 $ 1925510
EQUIP1A~NT ON UNIT DEPRECIATION 2 itutoIrol1eyPCC 5))3338 $16392563 $ 9323673 $ 7068890 Various $16392563 ~10391985 $ 6000578 $1068312
BUILDJNGS 3 General Office-~ 522 $ 916255 $ 563016 ~ 353239 1917 Yrs$ 916255 $ 581446 $ 334809 $ 18430 4 Shops Grgs Admin 523 amp524 2733772 1013500 1720272 2320 Yrs 2733772 1087633 1646139 74133 5 Subtotal (Lines 3 amp4) 3650027 ~ 1576516 gt 2073511 igt 3650027 11669079 ~ 1980948) 92563
~ PROPERTY ON GROUP DEPRECIATION Overheaas
6 Engineering 501) 7 Organizqtion 5~6) tt 1563178 ~ 1563178 8 Interest 547) 9 Grlding 504)
10 Righ ts of Vgy 502 117922 117922 11 All Other 505-5h5 15 651 31 7 15 771 31 7 ~---7-=-~-- lr-r-----=~ -x---r---~ 12 Subtotal (Lines 6 to 11) )17332417 $11343350 ~ 5989067 1117 Yramp$17452417 ~11833307 ~ 5619110 ~ 495957
13 Totql(Lines 125 amp 12) ~39300517 822243539 ~17056978 839420517 023894371 015526146 01656832
14 RATE BASE Use ~1657OOO 15 Avcr~ge of ~1705697B qnd )15526146 016292000 16 Nwk in Progre s s 100000 Am)unts sh)wn include lpplic3ble -werheqds fr)ll 17 Haterills amp Supplies 735000 Accnunts 546 amp 541 18 Bond Deposit - City Frqnchisc 411000 cent Investment ~d depreciation reserve assumes all 19 Deposit for PL Insurqnce 150000 retirements for the lines to be cmiddotmvcrted 1--3
20 Use Vqlue - Fully Depreciated CJtches 1)2000 ~re m~de 3S ) f November 1 1954 qnd that the ~ full unnunt middotf r e tirements qre charged to the EJ
21 Tot-l R1te Blse ~17840000 reserve co
10S ANG3LSS TRANSIT LI~S
INVESTWNT DSPRCIATICN R~SsRVS AND EXPSNS~ FOR ~QUIPMLNT ON UNIT PLAN DEPR3CHTION
CASES I AND II APPLICATIONS NO 35601 AND 35728
As of Oct0ber 31 ffi4 As of October 31 1955 Line NoTotal Investment fnvestment Depre No Item of Life Investment Reserve Less Investment Reserve Less Expense
Units Reserve Reserve Rate Year (1) (2) (J) 4) - ---(~ CD) en -- --8)----- -(9j- (10)
For Case I 1 Motor Coach Groups
62006300 66-6900 hOh 12 Yrs$6421159 $4728599 ~1692560 ~ 6421159 $ 500 1011 ~1330lh8 $ 362412 2 5000 6hoo 75 10 II 1486387 77~175 711212 1h86387 92h851 561536 149676 3 Coaches on order 100 10 II 2285400 2285400 2285400 2265J~0 2058860 226540
II
I 5 Automobiles 51 V3r 99485 50916 h8569 99485 66540 329h5 15624 ~ 6 Trucks amp Service Cars 56 II 280584 250572 30012 280584 265813 lh771 15241 I 7 Misc( Fare BoxesMotors) 170193 115191 55002 170193 122271 47922 7080
h Trolley Coaches 110 15 2108h09 908560 1199849 2108h09 1Oh6116 1062293 137556
8 Total of Lines 1 to 7 ~12851617 ~~6829013 ~02260h ~12i351617 ~ 77h3lh2 $5108475 $ 914129
9 PCC Rail Cars 40 25 rsJ~ 1182671 ) 338627 gt 84h04h 1182671 ~ 382211 ~ 800460 $ h3581~
10 Case I - Line 8 + Line 9 $14034288 $7167640 $6866648 ~14034288 $ 8125353 t5908935 $ 957713
For Case II
11 6000 amp 6100 Series MC 150 FD ~ 2092963 $2070463 ~ 22500 $ 2092963 $ 2070463 $ 22500 12 Work orders on 6000s
amp 6100 s 3 Yrs 265312 61860 203452 265312 144007 121305 $ 82147 13 PCC Rail Cars 401717 1182671 362 337__ ~~~ 334 1182671 43473 ___748298 72036
14 Case II - Lines 8 + 11+ 12+ 13 ~16392563 9323673 n068890 $16392563 ttl0391985 ~6ooo578 ~1068312
t-3
125 other PCC Cars are in Group Depreciation Schedule G ~
Note579 motor coaches under Case I and 729 under Case II D
LOS AlJGELES TRANSIT LnlES TABLE 10 ESTIMATE]) RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD E1TDUTG OCTOBER 31 1955 CASE I - UNDER PRESENT OPERATIONS
12 Months Jan-June
Line No Item
Tab1e Ending or May 31 1954 Page Fe fer
(2)
Book Record
(])
1954 Annualized
Book Record
(4)
Case I-A Present
Fares (5 )
Case I-B Applicant l s
Proposed Fares
(6)
1 Vehicle Miles T2 34036066 33569520 32747000 32440000
Revenue 2 3 4 5
Passenger Revenue Unredeemed Tokens Other Revenue Total
T1 P7 P7
$24849150
122402 $25044557
$24517866
183810 $24 701676
$22940000 $25513000 20000
1821 000 182 000 $23147000 $25700000
6 7 8
Operating Expenses Rail Trolley Coach Motor Coach
T3 T3 T3
$ 8493744 1442232 8622956
$ 8575232 1451430 8 n6470
$ 8115900 $ 8047000 1366000 1355400 8144200 8088900
9 10 11 12 13
Sub-Total Depreciation Operating Taxes Wage Increase Total
T7 T6
18563932 2176608 1676358
$22416898
18743132 2185804 1760600
$22689536
17626800 17491300~ 2039000 2039000 1663800 1711700
439800 436500 $21769400 $21678500
14 Operating Income $ 2627659 $ 20J2JJQ $ 1377600 $ 4021500 15 Other Inc amp Inc Deduct 21258 (9328)
16 Net Inc Before IncTaxes 2635217 2002742 1377600 4021500 I 17 Income Taxes (St ampFe~) 1302758 1026568 647500 1 999 000 18 Net Operating Income 1332459 976174 730100 2022 500 i 19 Allowance T4 112216 80752 1541000 1541000 20 Net Income $ 1220243 $ 895422 $576100 $ 1868500
21 Rate Base T7 $17393000 $16727000 $16926000 $16926000 22 Rate of Return 70~ 535 340 1104
Operating Ratio 23 Before Income Taxes 9405 8435 24 After Inc Taxes ampAllow 9751 927)
Not Applicable
Computed by PUC Staff Allowance for interest and amortization of abandoned property (Red ]figure)
- 31 shy
IDS ill~GElES TRANSIT LINES ESTIMATE OF OPERATllIG EX-degENSES JuID TAXES
FOR 12 f10NTHS ENDING OCTOBER 31 1955 CASE II - KOTOR COACH Sl~STITUTION - j~PLrCATION NO 35728
Table or Line Page Hotor Trolley
~To Item Reference Streetcar Coach Coach Total
l 2 3
4
I S
rv 6VJ
I 7 8 9
10 ll 12 13 Ih 15 16
17
13
(ll- -- shy
Vehicle Miles Case I - Present Operation Case II - Proposed Operation
Increase in i1iles
Opere amp I1aint Expense - Case I
Changes in Expense Due to Conversion Way and Structures Substation Operation Rail Crossing Protection Vehicle Maintenance Servicing of Vehicles Tires - Hotor Coach Equipment Operators vJages Fuel Oil or Power 21 amp PD Insurance ~Jorkmen I s Compensation Insurance Training Drivers for Conversion
Total Increase in Expense
Oper amp i1aint Expense - Case II (Line h +
Operating Taxes - Case II
(Red Figure)
(Z)
T2 T2
T3
Line 16)
D)
11887000 6691000
(5196000)
~ 8115900
t (11500) (42200) (55000)
(270900) (76900)
(1232900) (219800)
(liT shy
18314000 23h67000 5153000
amp 314~900
~
355000 h3300 32500
1154300 153000
-C5) (6)
2546000 32747000 2949000 33107000
403000 360000
S 1366000 ~gt 17 626800
If (144500) 1 ~ v$ ltW (42 200 ) - bull (55 000 ) 7HmiddotVj
19200 103300 M~ f~
3000 ( 30600) A N- i
32500 94400 15800 14600 (52206)
(1l1100) ~ [ (1200) Glh
30000 ~i
p (258200)
$17368600 r3
c~ 1786600 cr ill
I- CD
I- i-
TABLE 12
LOS ANGELES TRANSIT LINES ESTIMATED RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD ENDING OCTOBER 11 1955 CASE II - MOTOR COACH SUBSTITUTION - APPLICATION NO 15728
Table Case II-A Case II-B Line Item Refer- Present Proposed
Nos i FSles Faresect~nce
( 1) (2) (3) ( 4)
1 Vehicles Miles T 2 33107000 32817000
2 Operating Revenue T 10 $23147000 $25700000
O~erating E~ense
3 Operating and Maintenance Tll $17368600 $17234900 4 Depreciation T 8 1657000 1657000 5 Operating Taxes Tll 1786000 1837800 6 Wage Increase 434ZQQ 431 lt)00
Total $21246300 $211612007
8 Operating Income $ 1900700 $ 4538800 Other Inc amp Inc Deductions it 119
10 Net Income Before Income Taxes $ 1900700 $ 4538800 11 Income Taxes (State amp Federal) 214 200 2262 400 12 Net Operating Income $ 985800 $ 2275400 13 Allowance T 4 ~ 2090QO ~ 20200Q 14 Net Income $ 776800 $ 2066400
15 Rate Base T 8 $17840000 $17840000 16 Rate of Return 435 1158
012erating Ratio 17 Before Income Taxes 9179 8234 18 After Income Taxes amp Allowance 9664 9196
Not Appli cable
Allowance for interest and amortization related to streetcar abandonment of the past and for abandonmcnts proposed in Application No 35728
-33shy
LOS ANGELES TRANSIT Ln~S ESTH1ATE OF HILES TO i3LJ OERATEJJ FOR THE TlJ7IVE HONTHS-ENDING OCTOBER 31 1 q55
A UNDJilR PRESENT OPERATIONS B WITH HOTOR COACH SlfilSTITUTION AS PROPOSED IN APPLICATION NO 35n8
CASE I - PRESENT OPERlTI03S Present Fares Propose(l Fares
Estimatet Estimated Estimated Hiloago Estimated Est T)imirDl l4i Recluc-Estimatea Miles Miles (a) Decrease In Traffic Roduction Mileage of Traffiction Below Proposed
Item As Shown In Miles of the Decline Duo TrafficPresent FaresBelow TrafCol6 Due to Fares PDC Staff Dacrease9-15-54 to Docline (2) x At PrescntDiminution Col 6 x
________ (3) x (4) (100 - Col 5gt Fares (7) x (3) (100 - ColFJdlibLLJamp~Passengers ~-55 8) (1) (2) (3) (4) (5) (6) (7) (8) (9)
streetcar 12041861 30 43 L29 11587000 39 117 11748000
Trolley Coach 2546000 92573633 25f~ 43 1 075~b 3 0 975 2521000
Motor Coach (b) ]8li-~4 849 20 4 3~ 86 10 18106000 39 78 18163000bull I~
f-- ---J Total (b) 33080343 32739000 32432000
CASE II - OFSRATIONS PROPOSED IN APPLICATION NO 15728 Present Fares Proposed Fares
Item Estimatefl 1JIiles(a) As SnownEstimate~- Miles Present FarosEstimate~ Milos Proposed ___-~___------I=n~PDCStaff Exhibit No Col lOx (100 - Col 5) Faros Col llx (100-CQl~
(1) (10) (11) (12)
Stroetcar 6778211 6691000 6 61300O
Trolley Coach 2981376 2949000 2920000
Motor Coach (b) 236629)) 23459 1000 2276 7000
~Total (b) 33422542 33099000 32809000 ill r trl
(a) Based on th~ l ovel of traffic of Septombor 1954 I)
(b) To the estirl8ted milos shown here should bo a~dod 7500 Charter Miles
t-3
- - - - - - -
LOS kJGELES TRANSIT LINES Table 3 Sheet 1 of 3ESTIMATE OF RAIL OPERiTINGifiPENSES
CASE I - UNDER PRESENT OPERATIONS
Company Estfor 12 Mo~ Records Ending
Acct Jan-May 1954 103155 No I t e m Annualized Present Fares
Car Miles Way and Structures
1-24 ill Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 Superintendence 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conducting Transportation 63 Superintendence 64 Conductor Motormen etc 66 Car Service Emp 67 Miscel1 Car Service Exp 70 Car House Empa
Var other Cond Transp Accounts Total
Traffic 79 Superintendence 80 AdvertiSing
Total General
83 Gen Off - Sal and Exp 84 Gen Off Emp - Sal amp Exp 85 Gen Off a SuppJies amp Exps 88 Pensions
(93 Insurance PL amp PO (93 Insurance Workmens Comp (93 Insurance Other
Var Other General Accounts Total
Total Rail Operating Expense
Cents per Car Mile
12573226
$ 722615
$ 79078 759547 146522
$ 985141
$ 18190 174643 482945
23033 $ 698 811
$ 438900 3257666
104525 76608
351696 57240
$ 4286635
$ 6346 18353
$ 24699
$ 83645 123281
35570 4818S8 765019 46840 13664
287090 $ 1836967
$ 8554874
68004cent
ll887OOO
$ 722600
$ 79100 671200 147900
$ 898200
$) 18200 174600 547200
28900 $ 768900
$ 438900 2890900
104500 72200
351700 59600
$ 3917800
$ 6300 18400
$ 24700
$ 78900 123300 35600
456600 750400 ~ 43100 13700
282tl00 $ 1783700
$ 8115900
6827cent
Co
)
-
(1
I
flI
Car Miles Oper middot Exp Case I-B - Applicants Proposed Fares 11748000 $ 8047000 ~ Expenses Variable with Car Miles Wage rates used herein are those whieh
Ac30amp33 565 cent~ile prevailed immediately prior to 6154 59 460 The cost of the wage increase which 64 2432 tecomes fully effective on 12154 is 70 148 50 of total shown separately in Results of
Total 3605 centmile Operation table ~ See Table 5 for amounts under Proposed Fare
- 18 shy
- - - - - ------
LCB ANGELES TRANSIT LINFS Table 3 ESTIMATE OF TROLLEY COACH OPERATING EXPENSES Sheet 2 of 3
CASE I - UNDER PRESENT OPERATIONS
Acct No I t e m
Coach Miles Way and Structures
1-24 All Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 --superintendenoe 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conduoting Transportation 63 Superintendence 64 Operators Wages 70 Car House Employees
Var Other Condo Transp Accounts Total
Traffic 79 Superintendence 80 Advertising
Total General
83 Gen Off - Sal amp Exp 84 85
Gen Off Emp - Sal amp Exp Gen Off Supplies amp Exps
88 Pensions (93 Insurance PL amp PD (93 Insurance Worlanen s Comp (93 Insurance Other
Var Other General Accounts Total
Total Operating Expense
Cents per Mile
Case I-B - Applicants Proposed Fares
Expenses Variable with Coach Miles Acs 30amp33 477centmile
59 3038 64 2342 70 075 50 of total
Total 3232centjmi1e
~ See Table 5 for Amount Under Proposed Fares
Company Estfor 12 ME Recorda Ending Jan-May 1954 103155 I ~
Annualized Present Fares ~
2629188 2546000
$ 26518 $ 27000
$ 32628 $ 32600 125469 121400
11012 9600 $ 169109 $ 163600
$ 3770 $ 3800 35770 35BOO 75017 86000 1
8417 9000 $ 122974 $ 134600
$ 99161 $ 99200 612513 596300
38273 38300 21802 21500
$ 771749 $ 755300
$ 979 $ 1000 3588 3600
$ 4567 $ 4600
$ 15134 $ 12100 22990 23000 5669 5700
87614 83000 165089 97300 I
8516 8000 ~ 3054 3100
49076 48700 $ 357142 $ 280900 6
$1452059 $1366000
5523cent 5365cent
Coach Miles Oper Exp 2521000 $1355400 -- -0
Wage rates used herein are those which prevailed immedshyiately prior to 6154 The cost of the wage i~crease which becomes fully effective on 12154 is shown separately in Results of Operations table
- 19 shy
LOS ANGELES TRANS1 LINS TABLE 3 ESTIMATE OF MOTOR COAOH OPERATING EXPENSE Sheet 3 of 3
CASE I - UNDER PRESENT OPERATIONS
Company Estimate for Records 12 months
Jan - May Ending Acct 1954 103155 No I t e m Annualized Present Fares ~
Coach Miles 1832~158 18314000 Equipment Maintenance amp Gara~ Expense
4110 Supv - Shop and Gar $ 142788 $ 142800 4140-2 Repairs to Rev E~uipment 1097376 848800 4150 Servicing Rev Equipment 308373 307700 4160 Tires - Rev Equipment 123305 125200 Var Other Maint Accounts 151444 147300
Total $1823286 $1571800 Transportation Expense
4210 Supervision of Transp $ 487284 $ 487300 4220 Drivers I vrages 3767184 37589001= 3) bull
4230 522175 523800 )0
4240 Oil for Revenue Equipment 17256 19500 JOJ
Var Other Trans Exp Accounts 60153 58200 Total $4854052 $4847700
Traffic and Advertising 4470 Advertising $ 21593 $ 21600 Var Other Traffic Accounts 7)329 76500
Total $ 94922 $ 98100 Insurance
4510 Salaries and Expenses $ 18818 $ 18800 4520 Insurance PL amp PD 786322 542OOOp 4541 Insurance Workmens Compo 51458 50100p Var Other Insurance Exp 11357 11700 - shy
Fuel for Revenue Equipment _
J Total $ 867955 $ 622600 Administrative and General
4611-2 Gen Officers - Sal amp Exps $ 90806 $ 73500 4613-6 Gen Off Employees - Sal ampExp 138043 137000 4620 Law Expense 12910 16000 4630 Gen Office Supplies amp Exp 51689 44800 4640 Communication Expense 41143 45500 4652 Employees vlelfare 525737 498200 4655 Purchasing amp Stores 120790 120800 Var All Oth~r Adm amp Gen Exp 70090 53900
Total $1051208 $ 989700 Rents 15000 15000
Total Motor Coach Expense $8706423 $8144900 Cents per Mile 47middot50cent 4447cent
Coach Miles Ouer Exp Case I-B - Applicants Proposed Fares 18171 000 $8088900 -----shy
Expennes Variable with Milos Wage rates used herein are those which Ac 4140 463centmile prevailed immediately prior to 6154
4150 084 50 of total The cost of tho wage increase toJhich beshy4160 068 comes fully effective on 12154 is clnwn 4220 2052 separately in Results of Operation table 4230 286 4240 011
Total 2964centmile cent See Table 5 for Amount Under Proposed Fares 20 shy
TABLE 4
IDS ANGELES TRANSIT LUIES AMORTIZATION AND INTEREST ALLOWANCE
PAVING AND REMOVAL OBLIGATIONS - CASES I AND II APPLICATIONS NOS 35601 AND ~5728
A - Obligations from Abandonments Prior to 1954
Yearly Amortization $132000 Interest 16000
Total $148000
B - Obligations from Abandonment of Portions of IV and Rlt Lines (July 25 1954)
Yearly Amortization $ 4000 Interest 2000
Total $ 6000
C - Obligations from Abandonments as Proposed in Application No 35728 (November 1 154)
Yearly Amortization $ 35000 Interest 2JOOO
Total $ 55000
For Case I - Items A + B $154000
For Case II- Items A + B + C $209000
Includes cost of removal of electrical distribution system ($123700) and of substation equipment ($21600)
- 21 shy
LOS ANGELES TRAl~SIT Lli~S
RJBLIC LIABILITY PROPERTY DAl1AGE AND 1l0RIJftElI i S CCMFEi-TSATION EXPENSE illLATED TO SOUln~EbTT MILES Aim R3W-RLS PAS~lWEFS
CASE I - UNDER PRHSENT OPSHATIONS 1947 - 1950 Inc Jan-May Est FOr
Line Ito m 1951 1952 1953 195412 MosEnd No Total Av per Yr Annualizod 10 31 55
1 Lossos paid (n) $ 3890 $ 972 $ 1082 $ 902 $ 580 $ 262 2 Losses ostimato~ (a) 39 10 52 280 634 881 3 Reinsurance costs (a) 282 71 62 69 ____81 65 4 Total Losses_amp Insurance (a) $ 4211 $ 1053 $ 1196 $ 1251 $ 1295 $ 1208
5 Expenses paid (a) $ 1536 $ 384 $ 353 $ 385 $ 242 $ 170 6 Expenses estimated (a) 7 2 _ __ 11) 61 182 24S 7 Total expenses (a) $ 1543 $ middot 386 ~ 363 $ 446 $ 424 $415 8 Total LossesReiils amp Exp (a) $ 5754 $ 1439 1559 $ 1697 1719 $ 1622
(Lina 4- + 7) I 9 Number of claims filed 59991 14998 11588 11104 10246 9228
N
N 10 Vehiclo miles (millions) 153 4 384 356 351 346 336 I
11 Revenue Passon~crs (millions) 10093 2523 1924 1746 1661 1531
12 Loss Per 11i1 lliilos (4 ~ 10) ~27451 $27451 ~33596 $35~641 $37428 $35952 $35000
13 Loss Por i-Hllion Pass (4 11) $ 4172 $ 4172 ~ 6216 ) 7165 ~ 7797 $ 7890 $ 7500 14 Expensos por claim (7 f 9) h
ltfgt 2572 Y 25middot72 i) 3133 $ 4017 4138 $ 4497 $ 45 15 Claims per million miles (9 10) 391 391 326 316 296 275 280
16 Claims per million pass (9 11) 59 59 60 64 62 60 60
Ul p- CD (I)
(a) Thousand of dollars amp8
t-G o ~ H
J N
TABLE 5 LOS ANGELES TRANSIT LUTES Sheet 2 0 f 2
ESTIMATE OF PUBLIC LIABILITY AND PROPERTY DAMAGE AND WOBKMElJ 1 S COMPENSATION EXPENSES
FOR 12-MONTH PERIOD ENDING OCTOBER 31 1955 UNDER CASE I-A AND CASE I-B - PRESENT OPERATIONS ~lITH PRESENT amp PROPOSED FARES
Line 110
Cost Factors 1 Claims per million revenue passengers bull bull bull 2 raquo raquo vehicle miles bull bull bull 3 Expense per claim bull bull 4 Losses per million revenue passengers
raquo raquo vehicle miles bull bull bull bull 5 bull bull
60 280 45
7500 35000
Estimated Expense For PL and PD and Workmens Compensation Insurance
Case I-A Present Fares
6 Number of rovenue passengers (millions) 1395
7 Number of vehicle miles(millions) 3275
A - Basod on Number of Passengers 8 Losses 9 Expense
10 Total
B - Based 11 Losses 12 Expense 13 Total
$1046200 376700
$1422900
on Number of Vehicle Hiles $1146200
412700 $1558900
14 Average of A and B (PL amp PD and Workmen 6 Compo - $1490900
15 Workmens Compensation Insurance 101~200(a) 16 PL and PD Insurance 1389700
Distribution of Total PL amp PD Percent
17 Rail Operations 541 $ 750400 18 Trolloy Coach Operations 7 97300 19 Motor Coach Operations ~ -542000 20 Total 100 $1389700
Case I-B Proposed Fares
1341 3244
$1005700 362100
$1367800
$1135400 408700
$1544100
$1456000 100200 (b)
1355800
$ 732~100 94900
528800 $1355800
(a) Rail=$43lOO Trolley Coach=$8000 and Motor Coach=$50100
(b) Rail=$42 600_ Trolley Coach=$7 ~ 900 and Hotor Coach=$49 (00 _ --- I
- 23 shy
lA3LE 6
LOS ANGELES TRANSIT LINES ESTIHATE 041 OPERAT1NG TAXES
FOR 12 MONTHS ENDING OCTOBER 31 1955 CASE I - PRESENT OPERATIONS
APPLICATION NO 35601
Book Record Case I-A Case I-B L1ne I t e m 12 Months Present Proposed
No End 5-31~ Fares Fares(~ ) -=-----=-(3)~--=--~r(4~)~-(1)
1 City Franchise Taxes $ 473687 $ 434600 ~ 481900
2 Property Taxes-Ad Valorem 457963 435000 435000
3 Fuel and Oil Taxes 360580 337700 335100
4 Motor Vehicle License Taxes 136984 Ib8 900 168900
5 Transportation License 15600 21~00 (3 B of EHlshy
6 payroll Tuxes 265000 262500
Other raxes 7000 70007
Total ~ip 1 603 800
Net after weight fee credit
-24shy
Under Case II
As evidenced by correspondenco betoJeen the Commission and
Applicant and the request for changes in accounting practices as outlined
in a letter from the Applicant to the Commission under date of April 291954
it is assumed that applicant intends to completely convert to motor coach
operation by the end of 1965 The Rate Base under Case II assumes that all
property relnted to the rail and trolley coach oper2tion ltlill be fully
depreciated by that time This would include all rel~ted items of property
hitherto considered non-dopreciable those rel~ted ~o the present proposed
conversion havo been charged to the group plan depreciation reserve as of
November I 1954 those remaining 2xe depreciated over ~ 12 year period
boginning January 1 1954
150 coaches of the 6000 and 6100 series have been included in order
to satisfy oquipment requirements as outlined by Staff litness Hibbards 1
Exhibit No The work orders for rebuilding 83 of those coachos have
been put on a 3 year lifo (Soc Chart 5)
In conjunction wi th the rate base presentAtion there are shown in
Chart ) pictures and data of the streetcars and trolley coach equipment as
of September 1 1954 Camp~rt 4 shows ~ictures and data of motor coach equipshy
mont as of September I 1954
Amortization and Interest Allowance
Amortization and Interest allowance f or abandcnment oblig~tionsunder
Cases I and II is sho~m in Table 4 The estimates ccntained therein refloct
an income tax credit on the total amount of the obligations The estimate
under Case I is fer obligations incurred prior to 1954 and oblig~tionsconcerned
nV ttwith changos on tho ruld tTRtl lines made effective JUly 25 1954 Under
- 13 shy
C~se II is added the estin~ted obligation in connecticn with the abandonment
nsprop0sed in Application No 35728
Results of Operatirn
Ou-so I Relbvant infr-rr1pticn sh0vm in the f0regcing text ancl
in the tables is summarized in Table 10 - Estimated
Results of Operation - Case I and from this informashy
tion a rate of return and operating ratios are
calculated under Present and Proposed Fares
Case II Using the basic inf0rmation as used in Table 10 in
c0 njunction with the estimate of operating expenses
for Caso II as shown in Table 11 the rates of
return and operating ratins under Case II are developed
in Table 12 - Estimated Results of Operation - Case II
- 14 shy
LO S ANGELES TRANSIT LINES
TREN 0 OF WEEKLY REVENUE- PASS ENGER5 (E)(CLU SIVE OF POSTAL EMPLOYEES AND RIDERS ON SCHOOL FARES)
FEBRUARY 1952 TOJULY 1954 AND
ESTIMATE FOR 12 MONTHS ENDING OCT 31 1955
~ 3middot5 W w ~
a w 0
_ I cJ)
a 30 uJ 19 Z UJ cJ) cJ)
laquo 0
IL 0 25
([)
z 0 J J
~
bull ~ I
l T
-
- -
ltI-N
- 2
- wr-
u
- 2
--
w
- u
A I
1 ( A A I
j
~ J r 1f
I a V J 1 fv V V ~J
V 1IV I 1 II I
I I Jr 0
~
l) - 0 (c
rlt1
gt bull r gt 0 10 z I z ~
I I I w iw
I
I I EST I~ATE FOR 12 foONTHS ENDING OCTOBER 31 1955 w I UNDER PRpoundSENT FARES-
I w
u A - PASSENGERS PER WEEK bullbullbullbullbullbullbullbullbullbullbullbull 2 596 000
u B - PASSENGERS PER yEAR bullbullbullbullbullbullbullbullbullbull 135 363 000
- Z Ii
w I
w I
lt I
u u i
it i--0 w
~ - -lt 0-H gt- =-1--1 a 0
-Y
VI
I
I )
T ~20
JAN f EBMAR APRoMAY J UN JUL AUG SEPOCTNOV DEC JANFEB MARAP R MAY JUNJULAUG SE P OCT NOVmCJANfEB MARAPRMAY JUN JUL AUG S EP OCTNOV DE C JAN FEB MAR APR IoiIAY JU N gt- c-+shy
rv1952 953 954 1955 Wl
LOS ANGELES TRANSIT LINES ESTIMATE OF REVEruE PASSENGERS lID PASSENGER REVENUE
FOR 12 MONTHS ENDInG OCTOBER 31 1955 CASE I AND CASE II APPLICATION NO 15601 AND NO 35728
Present Fares Applicants Proposed Fares Est
Percent of Dlmin- PassenshyLlne of Total Fare Zone Passengera Revenue Fare utlon cera Revenue -=-----Ho-- Item Orldnalt Adjusted (Cents) Paus i cent (Cents) ~ cent cent
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
Adul t Passengers
lOne-Zone 15 65 58599 $ 8790 17 333 56648 $ 9630 2 1427 35 31553 4507 17 475 )0054 5109 3 666 666 1475 100 90152 $13297 86702 $14739
4 Two-Zone 20 65 25780 $ 5156 23 3middot75 24813 $ 5707 5 1927 ~ 13881 2677 ~ 481 13212 30)9 6 293 293 19751 100 39661 $ 783) 38026 $ 8746
7 Three-Zone 25 65 3476 $ 869 29 400 3337 $ 968 a-- 8 2427 22 1871 454 29 485 1 180 516 I 9 38 395 2475 100 5)47 $ 1323 511 $ 1484
10 Four-~one )0 65 1)2 $ 39 35 417 126 $ 44shy11 2927 35 71 21 35 488 68 24 12 ~ ----l5 29 75f 100 20) $ 60 - 194 $ 68 13 Sub-Total 1000 1000 ~ 135363 $22513 1300)9 $25037 14 Holly Park 10 200 $ 20 10 200 $ 20 15 Total Adult 13556) $225)) 130239 $25057
16 School 9 2797 $ 252 10 278 2719 $ 272 17 School 12 561 67 15 625 526 79 18 Total School )358 $ )19 )245 $ 351 19 Post Office 1427 616 $ B8 17 616 $ 105 20 Grand Total 139537 $22940 1)4100 $25513
cent (000) Omi tted ~ 1F Weighted Average Fare ~ If See Chart 2 + + As deter~ined by traffic checks and used in previous Staff reports
CHART 3
rr LOS AtJGELES
TRANSIT LINES
STREET CAR AN 0 TROLLEY COAe H
EQUIPMENT AS OF
H4 OR K4 OPEN END WOODEN SEATS H3 CLOSED ENDLEATHER S EATS SEPTEMB E R f 1954
JIshy
OLDER T YPE OF PCC CAR NE WER TYPE OF PCC CAR
8000 SERIES TROLLEY COACH 9000 SERIES TROLLEY COACH 9100 S ERI ES TROLLEY COACH
STREET CARS TROLLEY COACHES
ALL H3 H4 K4 PCC OTHER TOTAL 8000 9000
SEATS 48 48 48 12 5-61 SEATS VARIOU 44 4540-28 SEATS
EQU IPME NT ASSIGNMENTS UNDER PRESENT CoMPANY BASIS EFFECTIVE SEPTEMBER 12
9100
46 TOTAL
SCHEDULED SPARES
TOTAL ASSIGNED UNASSIGNED
TOTAL OWNED
SCHEDULED
SPARES
TOTAL ASSIGNED UNASSIGNED
TOTAL OWNE D
354 22 57 5
411 2 37 101 13
60 165 37 512 40 EQUIP MENT RE QUIREMENTS PRESENT SERVICE FOR RATE YEAR)
354 36
390 122 512
34 6
40 30
81 16
81 9
90 20
110 EQUIPMENT REQUIREMENTS WITH SERVICE AS P ROPOSED IN
ApPLICATIO N 28 (FOR RATE YEAR
SCHEDULED 20431 23 150 93 4 2 21SPARES 1015
TOTAL ASSIGNED 165 22525 10335 UNASSIGNED - 7
TOTAL RETAINED 225 11025 16535 To BE RETIRED 0190 2 7 37 TOTAL Now OWNED 60 110512 215 165 3735
-lE- ESTI MA TED BY P U C STAFF E
2 r
C
-
6600 SER IE S 6700 AND 6900 SER IE S 6800 SER I ES
L I NE 6200 No TE~ 5000 6000 yf 6 100 yf 6300 6400 6600
MACK G M e G M e G M e G MC G M C I i~IA K( amp UODEl NUMBER C-45 -CT TD-4502 rn -4505 TO- 4506 TDH-5103 TOH shy 36 1 2 YE AR BUilT l~ 1940 1941 1945 1951 1947 3 DATE I N SERV I CE 7 -40 1-42 7 - 45 7 - 51 7 -47 4 NUMBER O F CoACHES 50 55 95 200 25 57 5 PU RCHAS ED NEW OR US ED N N
6 S EATI NG CAPAC IT Y 45 45 45 51 36 45 40
~ LE NG TH - OUT S I DE 3~ -0 3~ - 0 37 -0 3~ -6 30 - 6 3~ - 0 3~ -0 WI DTH - OU T S IDE -Oil _-ttl 8 -0 -611 8 - 2 _OM I - 0
9 HE I CHT - OU TS I DE 9 -6 9 shy 5t 9 -6 9 t 4t ll 9 - 2 9 0 9 -6 10 A I SL( HEADROOM 76 77 78 78 76shy 8 76
11 A ISLE WI DTH 19 2 1 26 22 22 20 12 TY PE O f DR I V( HYD HYD HYD HYO HYD HYD
13 BRA KE HORSE POWER amp FUE L 165io) 165( 0) 165(0) 110(0) 165(0) 165(0) 14 Bo DY f RAME MA TE R I AL AL AL AL AL AL NOT G I VE N 15 Bo DY PANEL ~1ATE R I AL AL AL AL AL AL NO T GI VEN
16 ROO F MATER I AL AL AL amp ST AL AL amp ST AL amp ST NO T G I VEN
~ ~ - AT DCC CMBER 3 1 1953shy14 26 15298AV ER AG E INVE ST PER CoACH $ ~ 21962 $ 13 992 17 60 14 209
19 INVESHIENT 1 354 9~ 3 059 506 549 044 7 97 5~ 2 lt164 650 99 466 10 000 509 20 RE SE RV E 1340 6 2 462 923 135951 503 6 1369 1 02 90 896 7 147 497
21 REM AIN ING VALUE (I NCL SALV) 14 250 596 583 413 093 293 869 1 095 548 8 570 2853 012 22 REMA I N I NG LIF E lOYR BAS I S 22 MO 90 MO 43 MO 52 MO 9 MO
23 REMAIN I NG L IFE 12YR BAS I 46 MO 90 MO 67 MO 76 MO 33 MO
yf THC COS T OF REBU IL DING 102 CoACHES OF THC 6000 AND 6 100 SE RIE S NOT I NCLUDE D HEREI N (SCE NEXT PACE)
1941 AN D 1942 MA T ER I AL S WE RE SuBJ ECT TO PR I OR I T ( S AND THEREFOR E STEEL WAS USE D IN PLACE OF
ALUMI NUM FO R BO DY FR AMES PAN EL S AND ROO FS I N SO ME COACHE S O F TH E TD- 4505 SERI ES
G - GASOl I NC D - D I CSE L AL - ALUM I NU M ST - Srr CL HYD - HYDRAUL I C
lt~i
~~4
CHART 4
LOS ANGELES TRANSIT LINES
MOTOR COACH EQUIPMENT
AS OF
SEPTEMB ER 1954IS_T 6000 SER I ES
6200 AND 6300 SER I ES
6
5 CHART
1~A~PLE OF THE DAMAGE TO BODY PANE LS M D RI VET ED JOINTS
2 - COACH WITH ALL BODY PANE LS Il l NDO V FR M1ES M~) SOIIE BO DY BRAC IN G REMOVED
l
LOS ANGELES TRANSIT LINES
PROGRAM OF
REBUILDING MOTOR COACHES
OF THE
6000 AND 6100 SERlES
j - PAR TI AL Re STO RA TI ON SODY PA NE LS Ix I I I )SI I ELD FRA Il E REPLA CED AFT ER kt C~ D I T I ON 116
I+ - AL L BO DY PANE LS AND S I DE W I~ DO J FRAhi ES RE shyPLACED AND ~ ESTO~ED
5 -INT ER IOR SHOW IN G CO MPLET E RE MOVAL OF SEATS AND OTHE R AC COUTERM ENTS REPLACED OR RECOND ITIO NED
6 -COMP LETE D I NTER l OR - t EIJ FLOO R
COV ER IN G WIT H S EAT CUSH IONS ETC
7 - COMP LET ED EXTER l OR COACH REPAI NTED AND READY FOR SERV I CE
I N 195 1 Los AN GELES T RANS IT LINES I NAUGURA TED A PROGRAM OF REBU IL D I NG GMC CoACHES OF THE
6 0 00 (BU ILT IN 1940) AND 61 00 ( BU ILT IN 1941) SER IE S A s OF JU LY 1954 62 COACH ES HAD BEE N
REBUILT WITH 40 ST ILL ON WORK ORDERS BUT IN PROCeSS THE CURRENT EST IM AT ED CO ST OF THIS
P ROGRMil I S AN AV ERAGE OF ~3500 PER COACH THE P U C S TAF F EST IMA TES THE LIF E OF TH ES E
COACH ES TO BE AN ADDIT IO NAL THR EE YEAR S FRO M DATE OF COMP LETI ON COS TS OF REB UILDING AR E
SHOWN I N THE RATE BAS E RE LATIV E TO THE APPROP RI ATE WORK ORDER AN D THEREFORE ARE NOT INCi UDEu
IN THE I NV ESH IENT FOR 60)0 AND 6100 S ERI ES COACH ES SHOWN ON CHAR T No 4
LOS ANGELES TRANSIT LINES SSTIMATED RATE BASE AND DEPRECHTION EXPENSE
12 I~ONTHS ENDING OCTOBSR 31 1955 CISE I - VnTH PRY-SENT METHOD OF SERTICE - APPLICATION NO 35601
Gum October 31 1954 As of October 31 1955
Line
No Item (1)
Iccnunt Number Invcstment
(2)
(3) Reserve
(4)
Inve stmen t Less
Reserve (5)
Remaining
Life (6)
In
Inve s tIDen t Less
vestment Reserve Reserve (7) (8) (9)
Depreciation Expense RAte YeAr
(10) LAND
1 2
Rights of VVAY Other Lmd
502 503
S 426974 1931112
$ 426974 1931112
$ middot 426974 1931112
$ 426974 $ 1931 112
EQUIP~NT ONl~ITDEPRECI~TION
3 Auto Tr011ey pcc53033Jf~034288 $ 7167640 $ 6866648 V3rious $14034288 $ 8125353 $ 5908935 $ 957713
PROPERTY ON GROUP DEPRECIATIJN OverheAQs
4 Engineering 501 $ 44651 $ 44651 OrgAnizAtiorfshy 546 601749 601749~ 5
6 Interest 547 middot 916884 916884 7 Gnding 504 1117084 1118084 8 All Other 505-545 27021634 4 Base 27141634 _____ _________ 9 Suttotal
(Lines 4 to 8) $29702002 $22441215 ~ 7260787 $29823002 ~23516286 $ 6306716 $1081071_
10 Tr)W(Lines 123 amp 9) ~46094376 $29608855 ~16485521 $46215376 $]1641639 $14573737 $2038784
11 RATE BASE Use - $2039000 12 Avenge 0f $16485521amp ~1+573 737 $15530000 13 Work in Progress 100000 14 M1terials amp Supplies 735000 15 Bond Deposit - City Fnnchise 411000 16 Deposit for PL Insurance 150000
17 Totil RAte BAse $16926000 8 t ~
-It- rhjor PArt of Acct 546 is Supervisinn --J
-----
LOS ANGELES TRI-NSIT LINES ESTThiIiTED Ri1TE BASE AND DEPRECllTION EXPENSE
12 NiONTHS ENDING OCTOBER 31 1955 CIlSE II - SSUMING MOTOR COACH SUBSTITUTION ON CERTHN RAIL LINES AS PROPOSED m iiPPLICilTION NO 35728
---- --------------- As f Oct)ber 31 195amp As of Oct0ber 31 1955 Inve sUn8nt Investment IBpreciaticn
Line Account Le ss REffiainin~ Less ExpensE No Item Number Inve-stmcnt ReS8riTe Reserve Life Investment Reserve ~ Reserve Rate Yeqr
(T) T2) 0) (Ii) (5) (6) (7) (8) (9) (10)
Ll~ND
1 Other LAnd 503 ~ 1925510 $ Ci 1925510 ~ 1925510 $ 1925510
EQUIP1A~NT ON UNIT DEPRECIATION 2 itutoIrol1eyPCC 5))3338 $16392563 $ 9323673 $ 7068890 Various $16392563 ~10391985 $ 6000578 $1068312
BUILDJNGS 3 General Office-~ 522 $ 916255 $ 563016 ~ 353239 1917 Yrs$ 916255 $ 581446 $ 334809 $ 18430 4 Shops Grgs Admin 523 amp524 2733772 1013500 1720272 2320 Yrs 2733772 1087633 1646139 74133 5 Subtotal (Lines 3 amp4) 3650027 ~ 1576516 gt 2073511 igt 3650027 11669079 ~ 1980948) 92563
~ PROPERTY ON GROUP DEPRECIATION Overheaas
6 Engineering 501) 7 Organizqtion 5~6) tt 1563178 ~ 1563178 8 Interest 547) 9 Grlding 504)
10 Righ ts of Vgy 502 117922 117922 11 All Other 505-5h5 15 651 31 7 15 771 31 7 ~---7-=-~-- lr-r-----=~ -x---r---~ 12 Subtotal (Lines 6 to 11) )17332417 $11343350 ~ 5989067 1117 Yramp$17452417 ~11833307 ~ 5619110 ~ 495957
13 Totql(Lines 125 amp 12) ~39300517 822243539 ~17056978 839420517 023894371 015526146 01656832
14 RATE BASE Use ~1657OOO 15 Avcr~ge of ~1705697B qnd )15526146 016292000 16 Nwk in Progre s s 100000 Am)unts sh)wn include lpplic3ble -werheqds fr)ll 17 Haterills amp Supplies 735000 Accnunts 546 amp 541 18 Bond Deposit - City Frqnchisc 411000 cent Investment ~d depreciation reserve assumes all 19 Deposit for PL Insurqnce 150000 retirements for the lines to be cmiddotmvcrted 1--3
20 Use Vqlue - Fully Depreciated CJtches 1)2000 ~re m~de 3S ) f November 1 1954 qnd that the ~ full unnunt middotf r e tirements qre charged to the EJ
21 Tot-l R1te Blse ~17840000 reserve co
10S ANG3LSS TRANSIT LI~S
INVESTWNT DSPRCIATICN R~SsRVS AND EXPSNS~ FOR ~QUIPMLNT ON UNIT PLAN DEPR3CHTION
CASES I AND II APPLICATIONS NO 35601 AND 35728
As of Oct0ber 31 ffi4 As of October 31 1955 Line NoTotal Investment fnvestment Depre No Item of Life Investment Reserve Less Investment Reserve Less Expense
Units Reserve Reserve Rate Year (1) (2) (J) 4) - ---(~ CD) en -- --8)----- -(9j- (10)
For Case I 1 Motor Coach Groups
62006300 66-6900 hOh 12 Yrs$6421159 $4728599 ~1692560 ~ 6421159 $ 500 1011 ~1330lh8 $ 362412 2 5000 6hoo 75 10 II 1486387 77~175 711212 1h86387 92h851 561536 149676 3 Coaches on order 100 10 II 2285400 2285400 2285400 2265J~0 2058860 226540
II
I 5 Automobiles 51 V3r 99485 50916 h8569 99485 66540 329h5 15624 ~ 6 Trucks amp Service Cars 56 II 280584 250572 30012 280584 265813 lh771 15241 I 7 Misc( Fare BoxesMotors) 170193 115191 55002 170193 122271 47922 7080
h Trolley Coaches 110 15 2108h09 908560 1199849 2108h09 1Oh6116 1062293 137556
8 Total of Lines 1 to 7 ~12851617 ~~6829013 ~02260h ~12i351617 ~ 77h3lh2 $5108475 $ 914129
9 PCC Rail Cars 40 25 rsJ~ 1182671 ) 338627 gt 84h04h 1182671 ~ 382211 ~ 800460 $ h3581~
10 Case I - Line 8 + Line 9 $14034288 $7167640 $6866648 ~14034288 $ 8125353 t5908935 $ 957713
For Case II
11 6000 amp 6100 Series MC 150 FD ~ 2092963 $2070463 ~ 22500 $ 2092963 $ 2070463 $ 22500 12 Work orders on 6000s
amp 6100 s 3 Yrs 265312 61860 203452 265312 144007 121305 $ 82147 13 PCC Rail Cars 401717 1182671 362 337__ ~~~ 334 1182671 43473 ___748298 72036
14 Case II - Lines 8 + 11+ 12+ 13 ~16392563 9323673 n068890 $16392563 ttl0391985 ~6ooo578 ~1068312
t-3
125 other PCC Cars are in Group Depreciation Schedule G ~
Note579 motor coaches under Case I and 729 under Case II D
LOS AlJGELES TRANSIT LnlES TABLE 10 ESTIMATE]) RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD E1TDUTG OCTOBER 31 1955 CASE I - UNDER PRESENT OPERATIONS
12 Months Jan-June
Line No Item
Tab1e Ending or May 31 1954 Page Fe fer
(2)
Book Record
(])
1954 Annualized
Book Record
(4)
Case I-A Present
Fares (5 )
Case I-B Applicant l s
Proposed Fares
(6)
1 Vehicle Miles T2 34036066 33569520 32747000 32440000
Revenue 2 3 4 5
Passenger Revenue Unredeemed Tokens Other Revenue Total
T1 P7 P7
$24849150
122402 $25044557
$24517866
183810 $24 701676
$22940000 $25513000 20000
1821 000 182 000 $23147000 $25700000
6 7 8
Operating Expenses Rail Trolley Coach Motor Coach
T3 T3 T3
$ 8493744 1442232 8622956
$ 8575232 1451430 8 n6470
$ 8115900 $ 8047000 1366000 1355400 8144200 8088900
9 10 11 12 13
Sub-Total Depreciation Operating Taxes Wage Increase Total
T7 T6
18563932 2176608 1676358
$22416898
18743132 2185804 1760600
$22689536
17626800 17491300~ 2039000 2039000 1663800 1711700
439800 436500 $21769400 $21678500
14 Operating Income $ 2627659 $ 20J2JJQ $ 1377600 $ 4021500 15 Other Inc amp Inc Deduct 21258 (9328)
16 Net Inc Before IncTaxes 2635217 2002742 1377600 4021500 I 17 Income Taxes (St ampFe~) 1302758 1026568 647500 1 999 000 18 Net Operating Income 1332459 976174 730100 2022 500 i 19 Allowance T4 112216 80752 1541000 1541000 20 Net Income $ 1220243 $ 895422 $576100 $ 1868500
21 Rate Base T7 $17393000 $16727000 $16926000 $16926000 22 Rate of Return 70~ 535 340 1104
Operating Ratio 23 Before Income Taxes 9405 8435 24 After Inc Taxes ampAllow 9751 927)
Not Applicable
Computed by PUC Staff Allowance for interest and amortization of abandoned property (Red ]figure)
- 31 shy
IDS ill~GElES TRANSIT LINES ESTIMATE OF OPERATllIG EX-degENSES JuID TAXES
FOR 12 f10NTHS ENDING OCTOBER 31 1955 CASE II - KOTOR COACH Sl~STITUTION - j~PLrCATION NO 35728
Table or Line Page Hotor Trolley
~To Item Reference Streetcar Coach Coach Total
l 2 3
4
I S
rv 6VJ
I 7 8 9
10 ll 12 13 Ih 15 16
17
13
(ll- -- shy
Vehicle Miles Case I - Present Operation Case II - Proposed Operation
Increase in i1iles
Opere amp I1aint Expense - Case I
Changes in Expense Due to Conversion Way and Structures Substation Operation Rail Crossing Protection Vehicle Maintenance Servicing of Vehicles Tires - Hotor Coach Equipment Operators vJages Fuel Oil or Power 21 amp PD Insurance ~Jorkmen I s Compensation Insurance Training Drivers for Conversion
Total Increase in Expense
Oper amp i1aint Expense - Case II (Line h +
Operating Taxes - Case II
(Red Figure)
(Z)
T2 T2
T3
Line 16)
D)
11887000 6691000
(5196000)
~ 8115900
t (11500) (42200) (55000)
(270900) (76900)
(1232900) (219800)
(liT shy
18314000 23h67000 5153000
amp 314~900
~
355000 h3300 32500
1154300 153000
-C5) (6)
2546000 32747000 2949000 33107000
403000 360000
S 1366000 ~gt 17 626800
If (144500) 1 ~ v$ ltW (42 200 ) - bull (55 000 ) 7HmiddotVj
19200 103300 M~ f~
3000 ( 30600) A N- i
32500 94400 15800 14600 (52206)
(1l1100) ~ [ (1200) Glh
30000 ~i
p (258200)
$17368600 r3
c~ 1786600 cr ill
I- CD
I- i-
TABLE 12
LOS ANGELES TRANSIT LINES ESTIMATED RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD ENDING OCTOBER 11 1955 CASE II - MOTOR COACH SUBSTITUTION - APPLICATION NO 15728
Table Case II-A Case II-B Line Item Refer- Present Proposed
Nos i FSles Faresect~nce
( 1) (2) (3) ( 4)
1 Vehicles Miles T 2 33107000 32817000
2 Operating Revenue T 10 $23147000 $25700000
O~erating E~ense
3 Operating and Maintenance Tll $17368600 $17234900 4 Depreciation T 8 1657000 1657000 5 Operating Taxes Tll 1786000 1837800 6 Wage Increase 434ZQQ 431 lt)00
Total $21246300 $211612007
8 Operating Income $ 1900700 $ 4538800 Other Inc amp Inc Deductions it 119
10 Net Income Before Income Taxes $ 1900700 $ 4538800 11 Income Taxes (State amp Federal) 214 200 2262 400 12 Net Operating Income $ 985800 $ 2275400 13 Allowance T 4 ~ 2090QO ~ 20200Q 14 Net Income $ 776800 $ 2066400
15 Rate Base T 8 $17840000 $17840000 16 Rate of Return 435 1158
012erating Ratio 17 Before Income Taxes 9179 8234 18 After Income Taxes amp Allowance 9664 9196
Not Appli cable
Allowance for interest and amortization related to streetcar abandonment of the past and for abandonmcnts proposed in Application No 35728
-33shy
LOS ANGELES TRANSIT Ln~S ESTH1ATE OF HILES TO i3LJ OERATEJJ FOR THE TlJ7IVE HONTHS-ENDING OCTOBER 31 1 q55
A UNDJilR PRESENT OPERATIONS B WITH HOTOR COACH SlfilSTITUTION AS PROPOSED IN APPLICATION NO 35n8
CASE I - PRESENT OPERlTI03S Present Fares Propose(l Fares
Estimatet Estimated Estimated Hiloago Estimated Est T)imirDl l4i Recluc-Estimatea Miles Miles (a) Decrease In Traffic Roduction Mileage of Traffiction Below Proposed
Item As Shown In Miles of the Decline Duo TrafficPresent FaresBelow TrafCol6 Due to Fares PDC Staff Dacrease9-15-54 to Docline (2) x At PrescntDiminution Col 6 x
________ (3) x (4) (100 - Col 5gt Fares (7) x (3) (100 - ColFJdlibLLJamp~Passengers ~-55 8) (1) (2) (3) (4) (5) (6) (7) (8) (9)
streetcar 12041861 30 43 L29 11587000 39 117 11748000
Trolley Coach 2546000 92573633 25f~ 43 1 075~b 3 0 975 2521000
Motor Coach (b) ]8li-~4 849 20 4 3~ 86 10 18106000 39 78 18163000bull I~
f-- ---J Total (b) 33080343 32739000 32432000
CASE II - OFSRATIONS PROPOSED IN APPLICATION NO 15728 Present Fares Proposed Fares
Item Estimatefl 1JIiles(a) As SnownEstimate~- Miles Present FarosEstimate~ Milos Proposed ___-~___------I=n~PDCStaff Exhibit No Col lOx (100 - Col 5) Faros Col llx (100-CQl~
(1) (10) (11) (12)
Stroetcar 6778211 6691000 6 61300O
Trolley Coach 2981376 2949000 2920000
Motor Coach (b) 236629)) 23459 1000 2276 7000
~Total (b) 33422542 33099000 32809000 ill r trl
(a) Based on th~ l ovel of traffic of Septombor 1954 I)
(b) To the estirl8ted milos shown here should bo a~dod 7500 Charter Miles
t-3
- - - - - - -
LOS kJGELES TRANSIT LINES Table 3 Sheet 1 of 3ESTIMATE OF RAIL OPERiTINGifiPENSES
CASE I - UNDER PRESENT OPERATIONS
Company Estfor 12 Mo~ Records Ending
Acct Jan-May 1954 103155 No I t e m Annualized Present Fares
Car Miles Way and Structures
1-24 ill Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 Superintendence 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conducting Transportation 63 Superintendence 64 Conductor Motormen etc 66 Car Service Emp 67 Miscel1 Car Service Exp 70 Car House Empa
Var other Cond Transp Accounts Total
Traffic 79 Superintendence 80 AdvertiSing
Total General
83 Gen Off - Sal and Exp 84 Gen Off Emp - Sal amp Exp 85 Gen Off a SuppJies amp Exps 88 Pensions
(93 Insurance PL amp PO (93 Insurance Workmens Comp (93 Insurance Other
Var Other General Accounts Total
Total Rail Operating Expense
Cents per Car Mile
12573226
$ 722615
$ 79078 759547 146522
$ 985141
$ 18190 174643 482945
23033 $ 698 811
$ 438900 3257666
104525 76608
351696 57240
$ 4286635
$ 6346 18353
$ 24699
$ 83645 123281
35570 4818S8 765019 46840 13664
287090 $ 1836967
$ 8554874
68004cent
ll887OOO
$ 722600
$ 79100 671200 147900
$ 898200
$) 18200 174600 547200
28900 $ 768900
$ 438900 2890900
104500 72200
351700 59600
$ 3917800
$ 6300 18400
$ 24700
$ 78900 123300 35600
456600 750400 ~ 43100 13700
282tl00 $ 1783700
$ 8115900
6827cent
Co
)
-
(1
I
flI
Car Miles Oper middot Exp Case I-B - Applicants Proposed Fares 11748000 $ 8047000 ~ Expenses Variable with Car Miles Wage rates used herein are those whieh
Ac30amp33 565 cent~ile prevailed immediately prior to 6154 59 460 The cost of the wage increase which 64 2432 tecomes fully effective on 12154 is 70 148 50 of total shown separately in Results of
Total 3605 centmile Operation table ~ See Table 5 for amounts under Proposed Fare
- 18 shy
- - - - - ------
LCB ANGELES TRANSIT LINFS Table 3 ESTIMATE OF TROLLEY COACH OPERATING EXPENSES Sheet 2 of 3
CASE I - UNDER PRESENT OPERATIONS
Acct No I t e m
Coach Miles Way and Structures
1-24 All Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 --superintendenoe 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conduoting Transportation 63 Superintendence 64 Operators Wages 70 Car House Employees
Var Other Condo Transp Accounts Total
Traffic 79 Superintendence 80 Advertising
Total General
83 Gen Off - Sal amp Exp 84 85
Gen Off Emp - Sal amp Exp Gen Off Supplies amp Exps
88 Pensions (93 Insurance PL amp PD (93 Insurance Worlanen s Comp (93 Insurance Other
Var Other General Accounts Total
Total Operating Expense
Cents per Mile
Case I-B - Applicants Proposed Fares
Expenses Variable with Coach Miles Acs 30amp33 477centmile
59 3038 64 2342 70 075 50 of total
Total 3232centjmi1e
~ See Table 5 for Amount Under Proposed Fares
Company Estfor 12 ME Recorda Ending Jan-May 1954 103155 I ~
Annualized Present Fares ~
2629188 2546000
$ 26518 $ 27000
$ 32628 $ 32600 125469 121400
11012 9600 $ 169109 $ 163600
$ 3770 $ 3800 35770 35BOO 75017 86000 1
8417 9000 $ 122974 $ 134600
$ 99161 $ 99200 612513 596300
38273 38300 21802 21500
$ 771749 $ 755300
$ 979 $ 1000 3588 3600
$ 4567 $ 4600
$ 15134 $ 12100 22990 23000 5669 5700
87614 83000 165089 97300 I
8516 8000 ~ 3054 3100
49076 48700 $ 357142 $ 280900 6
$1452059 $1366000
5523cent 5365cent
Coach Miles Oper Exp 2521000 $1355400 -- -0
Wage rates used herein are those which prevailed immedshyiately prior to 6154 The cost of the wage i~crease which becomes fully effective on 12154 is shown separately in Results of Operations table
- 19 shy
LOS ANGELES TRANS1 LINS TABLE 3 ESTIMATE OF MOTOR COAOH OPERATING EXPENSE Sheet 3 of 3
CASE I - UNDER PRESENT OPERATIONS
Company Estimate for Records 12 months
Jan - May Ending Acct 1954 103155 No I t e m Annualized Present Fares ~
Coach Miles 1832~158 18314000 Equipment Maintenance amp Gara~ Expense
4110 Supv - Shop and Gar $ 142788 $ 142800 4140-2 Repairs to Rev E~uipment 1097376 848800 4150 Servicing Rev Equipment 308373 307700 4160 Tires - Rev Equipment 123305 125200 Var Other Maint Accounts 151444 147300
Total $1823286 $1571800 Transportation Expense
4210 Supervision of Transp $ 487284 $ 487300 4220 Drivers I vrages 3767184 37589001= 3) bull
4230 522175 523800 )0
4240 Oil for Revenue Equipment 17256 19500 JOJ
Var Other Trans Exp Accounts 60153 58200 Total $4854052 $4847700
Traffic and Advertising 4470 Advertising $ 21593 $ 21600 Var Other Traffic Accounts 7)329 76500
Total $ 94922 $ 98100 Insurance
4510 Salaries and Expenses $ 18818 $ 18800 4520 Insurance PL amp PD 786322 542OOOp 4541 Insurance Workmens Compo 51458 50100p Var Other Insurance Exp 11357 11700 - shy
Fuel for Revenue Equipment _
J Total $ 867955 $ 622600 Administrative and General
4611-2 Gen Officers - Sal amp Exps $ 90806 $ 73500 4613-6 Gen Off Employees - Sal ampExp 138043 137000 4620 Law Expense 12910 16000 4630 Gen Office Supplies amp Exp 51689 44800 4640 Communication Expense 41143 45500 4652 Employees vlelfare 525737 498200 4655 Purchasing amp Stores 120790 120800 Var All Oth~r Adm amp Gen Exp 70090 53900
Total $1051208 $ 989700 Rents 15000 15000
Total Motor Coach Expense $8706423 $8144900 Cents per Mile 47middot50cent 4447cent
Coach Miles Ouer Exp Case I-B - Applicants Proposed Fares 18171 000 $8088900 -----shy
Expennes Variable with Milos Wage rates used herein are those which Ac 4140 463centmile prevailed immediately prior to 6154
4150 084 50 of total The cost of tho wage increase toJhich beshy4160 068 comes fully effective on 12154 is clnwn 4220 2052 separately in Results of Operation table 4230 286 4240 011
Total 2964centmile cent See Table 5 for Amount Under Proposed Fares 20 shy
TABLE 4
IDS ANGELES TRANSIT LUIES AMORTIZATION AND INTEREST ALLOWANCE
PAVING AND REMOVAL OBLIGATIONS - CASES I AND II APPLICATIONS NOS 35601 AND ~5728
A - Obligations from Abandonments Prior to 1954
Yearly Amortization $132000 Interest 16000
Total $148000
B - Obligations from Abandonment of Portions of IV and Rlt Lines (July 25 1954)
Yearly Amortization $ 4000 Interest 2000
Total $ 6000
C - Obligations from Abandonments as Proposed in Application No 35728 (November 1 154)
Yearly Amortization $ 35000 Interest 2JOOO
Total $ 55000
For Case I - Items A + B $154000
For Case II- Items A + B + C $209000
Includes cost of removal of electrical distribution system ($123700) and of substation equipment ($21600)
- 21 shy
LOS ANGELES TRAl~SIT Lli~S
RJBLIC LIABILITY PROPERTY DAl1AGE AND 1l0RIJftElI i S CCMFEi-TSATION EXPENSE illLATED TO SOUln~EbTT MILES Aim R3W-RLS PAS~lWEFS
CASE I - UNDER PRHSENT OPSHATIONS 1947 - 1950 Inc Jan-May Est FOr
Line Ito m 1951 1952 1953 195412 MosEnd No Total Av per Yr Annualizod 10 31 55
1 Lossos paid (n) $ 3890 $ 972 $ 1082 $ 902 $ 580 $ 262 2 Losses ostimato~ (a) 39 10 52 280 634 881 3 Reinsurance costs (a) 282 71 62 69 ____81 65 4 Total Losses_amp Insurance (a) $ 4211 $ 1053 $ 1196 $ 1251 $ 1295 $ 1208
5 Expenses paid (a) $ 1536 $ 384 $ 353 $ 385 $ 242 $ 170 6 Expenses estimated (a) 7 2 _ __ 11) 61 182 24S 7 Total expenses (a) $ 1543 $ middot 386 ~ 363 $ 446 $ 424 $415 8 Total LossesReiils amp Exp (a) $ 5754 $ 1439 1559 $ 1697 1719 $ 1622
(Lina 4- + 7) I 9 Number of claims filed 59991 14998 11588 11104 10246 9228
N
N 10 Vehiclo miles (millions) 153 4 384 356 351 346 336 I
11 Revenue Passon~crs (millions) 10093 2523 1924 1746 1661 1531
12 Loss Per 11i1 lliilos (4 ~ 10) ~27451 $27451 ~33596 $35~641 $37428 $35952 $35000
13 Loss Por i-Hllion Pass (4 11) $ 4172 $ 4172 ~ 6216 ) 7165 ~ 7797 $ 7890 $ 7500 14 Expensos por claim (7 f 9) h
ltfgt 2572 Y 25middot72 i) 3133 $ 4017 4138 $ 4497 $ 45 15 Claims per million miles (9 10) 391 391 326 316 296 275 280
16 Claims per million pass (9 11) 59 59 60 64 62 60 60
Ul p- CD (I)
(a) Thousand of dollars amp8
t-G o ~ H
J N
TABLE 5 LOS ANGELES TRANSIT LUTES Sheet 2 0 f 2
ESTIMATE OF PUBLIC LIABILITY AND PROPERTY DAMAGE AND WOBKMElJ 1 S COMPENSATION EXPENSES
FOR 12-MONTH PERIOD ENDING OCTOBER 31 1955 UNDER CASE I-A AND CASE I-B - PRESENT OPERATIONS ~lITH PRESENT amp PROPOSED FARES
Line 110
Cost Factors 1 Claims per million revenue passengers bull bull bull 2 raquo raquo vehicle miles bull bull bull 3 Expense per claim bull bull 4 Losses per million revenue passengers
raquo raquo vehicle miles bull bull bull bull 5 bull bull
60 280 45
7500 35000
Estimated Expense For PL and PD and Workmens Compensation Insurance
Case I-A Present Fares
6 Number of rovenue passengers (millions) 1395
7 Number of vehicle miles(millions) 3275
A - Basod on Number of Passengers 8 Losses 9 Expense
10 Total
B - Based 11 Losses 12 Expense 13 Total
$1046200 376700
$1422900
on Number of Vehicle Hiles $1146200
412700 $1558900
14 Average of A and B (PL amp PD and Workmen 6 Compo - $1490900
15 Workmens Compensation Insurance 101~200(a) 16 PL and PD Insurance 1389700
Distribution of Total PL amp PD Percent
17 Rail Operations 541 $ 750400 18 Trolloy Coach Operations 7 97300 19 Motor Coach Operations ~ -542000 20 Total 100 $1389700
Case I-B Proposed Fares
1341 3244
$1005700 362100
$1367800
$1135400 408700
$1544100
$1456000 100200 (b)
1355800
$ 732~100 94900
528800 $1355800
(a) Rail=$43lOO Trolley Coach=$8000 and Motor Coach=$50100
(b) Rail=$42 600_ Trolley Coach=$7 ~ 900 and Hotor Coach=$49 (00 _ --- I
- 23 shy
lA3LE 6
LOS ANGELES TRANSIT LINES ESTIHATE 041 OPERAT1NG TAXES
FOR 12 MONTHS ENDING OCTOBER 31 1955 CASE I - PRESENT OPERATIONS
APPLICATION NO 35601
Book Record Case I-A Case I-B L1ne I t e m 12 Months Present Proposed
No End 5-31~ Fares Fares(~ ) -=-----=-(3)~--=--~r(4~)~-(1)
1 City Franchise Taxes $ 473687 $ 434600 ~ 481900
2 Property Taxes-Ad Valorem 457963 435000 435000
3 Fuel and Oil Taxes 360580 337700 335100
4 Motor Vehicle License Taxes 136984 Ib8 900 168900
5 Transportation License 15600 21~00 (3 B of EHlshy
6 payroll Tuxes 265000 262500
Other raxes 7000 70007
Total ~ip 1 603 800
Net after weight fee credit
-24shy
C~se II is added the estin~ted obligation in connecticn with the abandonment
nsprop0sed in Application No 35728
Results of Operatirn
Ou-so I Relbvant infr-rr1pticn sh0vm in the f0regcing text ancl
in the tables is summarized in Table 10 - Estimated
Results of Operation - Case I and from this informashy
tion a rate of return and operating ratios are
calculated under Present and Proposed Fares
Case II Using the basic inf0rmation as used in Table 10 in
c0 njunction with the estimate of operating expenses
for Caso II as shown in Table 11 the rates of
return and operating ratins under Case II are developed
in Table 12 - Estimated Results of Operation - Case II
- 14 shy
LO S ANGELES TRANSIT LINES
TREN 0 OF WEEKLY REVENUE- PASS ENGER5 (E)(CLU SIVE OF POSTAL EMPLOYEES AND RIDERS ON SCHOOL FARES)
FEBRUARY 1952 TOJULY 1954 AND
ESTIMATE FOR 12 MONTHS ENDING OCT 31 1955
~ 3middot5 W w ~
a w 0
_ I cJ)
a 30 uJ 19 Z UJ cJ) cJ)
laquo 0
IL 0 25
([)
z 0 J J
~
bull ~ I
l T
-
- -
ltI-N
- 2
- wr-
u
- 2
--
w
- u
A I
1 ( A A I
j
~ J r 1f
I a V J 1 fv V V ~J
V 1IV I 1 II I
I I Jr 0
~
l) - 0 (c
rlt1
gt bull r gt 0 10 z I z ~
I I I w iw
I
I I EST I~ATE FOR 12 foONTHS ENDING OCTOBER 31 1955 w I UNDER PRpoundSENT FARES-
I w
u A - PASSENGERS PER WEEK bullbullbullbullbullbullbullbullbullbullbullbull 2 596 000
u B - PASSENGERS PER yEAR bullbullbullbullbullbullbullbullbullbull 135 363 000
- Z Ii
w I
w I
lt I
u u i
it i--0 w
~ - -lt 0-H gt- =-1--1 a 0
-Y
VI
I
I )
T ~20
JAN f EBMAR APRoMAY J UN JUL AUG SEPOCTNOV DEC JANFEB MARAP R MAY JUNJULAUG SE P OCT NOVmCJANfEB MARAPRMAY JUN JUL AUG S EP OCTNOV DE C JAN FEB MAR APR IoiIAY JU N gt- c-+shy
rv1952 953 954 1955 Wl
LOS ANGELES TRANSIT LINES ESTIMATE OF REVEruE PASSENGERS lID PASSENGER REVENUE
FOR 12 MONTHS ENDInG OCTOBER 31 1955 CASE I AND CASE II APPLICATION NO 15601 AND NO 35728
Present Fares Applicants Proposed Fares Est
Percent of Dlmin- PassenshyLlne of Total Fare Zone Passengera Revenue Fare utlon cera Revenue -=-----Ho-- Item Orldnalt Adjusted (Cents) Paus i cent (Cents) ~ cent cent
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
Adul t Passengers
lOne-Zone 15 65 58599 $ 8790 17 333 56648 $ 9630 2 1427 35 31553 4507 17 475 )0054 5109 3 666 666 1475 100 90152 $13297 86702 $14739
4 Two-Zone 20 65 25780 $ 5156 23 3middot75 24813 $ 5707 5 1927 ~ 13881 2677 ~ 481 13212 30)9 6 293 293 19751 100 39661 $ 783) 38026 $ 8746
7 Three-Zone 25 65 3476 $ 869 29 400 3337 $ 968 a-- 8 2427 22 1871 454 29 485 1 180 516 I 9 38 395 2475 100 5)47 $ 1323 511 $ 1484
10 Four-~one )0 65 1)2 $ 39 35 417 126 $ 44shy11 2927 35 71 21 35 488 68 24 12 ~ ----l5 29 75f 100 20) $ 60 - 194 $ 68 13 Sub-Total 1000 1000 ~ 135363 $22513 1300)9 $25037 14 Holly Park 10 200 $ 20 10 200 $ 20 15 Total Adult 13556) $225)) 130239 $25057
16 School 9 2797 $ 252 10 278 2719 $ 272 17 School 12 561 67 15 625 526 79 18 Total School )358 $ )19 )245 $ 351 19 Post Office 1427 616 $ B8 17 616 $ 105 20 Grand Total 139537 $22940 1)4100 $25513
cent (000) Omi tted ~ 1F Weighted Average Fare ~ If See Chart 2 + + As deter~ined by traffic checks and used in previous Staff reports
CHART 3
rr LOS AtJGELES
TRANSIT LINES
STREET CAR AN 0 TROLLEY COAe H
EQUIPMENT AS OF
H4 OR K4 OPEN END WOODEN SEATS H3 CLOSED ENDLEATHER S EATS SEPTEMB E R f 1954
JIshy
OLDER T YPE OF PCC CAR NE WER TYPE OF PCC CAR
8000 SERIES TROLLEY COACH 9000 SERIES TROLLEY COACH 9100 S ERI ES TROLLEY COACH
STREET CARS TROLLEY COACHES
ALL H3 H4 K4 PCC OTHER TOTAL 8000 9000
SEATS 48 48 48 12 5-61 SEATS VARIOU 44 4540-28 SEATS
EQU IPME NT ASSIGNMENTS UNDER PRESENT CoMPANY BASIS EFFECTIVE SEPTEMBER 12
9100
46 TOTAL
SCHEDULED SPARES
TOTAL ASSIGNED UNASSIGNED
TOTAL OWNED
SCHEDULED
SPARES
TOTAL ASSIGNED UNASSIGNED
TOTAL OWNE D
354 22 57 5
411 2 37 101 13
60 165 37 512 40 EQUIP MENT RE QUIREMENTS PRESENT SERVICE FOR RATE YEAR)
354 36
390 122 512
34 6
40 30
81 16
81 9
90 20
110 EQUIPMENT REQUIREMENTS WITH SERVICE AS P ROPOSED IN
ApPLICATIO N 28 (FOR RATE YEAR
SCHEDULED 20431 23 150 93 4 2 21SPARES 1015
TOTAL ASSIGNED 165 22525 10335 UNASSIGNED - 7
TOTAL RETAINED 225 11025 16535 To BE RETIRED 0190 2 7 37 TOTAL Now OWNED 60 110512 215 165 3735
-lE- ESTI MA TED BY P U C STAFF E
2 r
C
-
6600 SER IE S 6700 AND 6900 SER IE S 6800 SER I ES
L I NE 6200 No TE~ 5000 6000 yf 6 100 yf 6300 6400 6600
MACK G M e G M e G M e G MC G M C I i~IA K( amp UODEl NUMBER C-45 -CT TD-4502 rn -4505 TO- 4506 TDH-5103 TOH shy 36 1 2 YE AR BUilT l~ 1940 1941 1945 1951 1947 3 DATE I N SERV I CE 7 -40 1-42 7 - 45 7 - 51 7 -47 4 NUMBER O F CoACHES 50 55 95 200 25 57 5 PU RCHAS ED NEW OR US ED N N
6 S EATI NG CAPAC IT Y 45 45 45 51 36 45 40
~ LE NG TH - OUT S I DE 3~ -0 3~ - 0 37 -0 3~ -6 30 - 6 3~ - 0 3~ -0 WI DTH - OU T S IDE -Oil _-ttl 8 -0 -611 8 - 2 _OM I - 0
9 HE I CHT - OU TS I DE 9 -6 9 shy 5t 9 -6 9 t 4t ll 9 - 2 9 0 9 -6 10 A I SL( HEADROOM 76 77 78 78 76shy 8 76
11 A ISLE WI DTH 19 2 1 26 22 22 20 12 TY PE O f DR I V( HYD HYD HYD HYO HYD HYD
13 BRA KE HORSE POWER amp FUE L 165io) 165( 0) 165(0) 110(0) 165(0) 165(0) 14 Bo DY f RAME MA TE R I AL AL AL AL AL AL NOT G I VE N 15 Bo DY PANEL ~1ATE R I AL AL AL AL AL AL NO T GI VEN
16 ROO F MATER I AL AL AL amp ST AL AL amp ST AL amp ST NO T G I VEN
~ ~ - AT DCC CMBER 3 1 1953shy14 26 15298AV ER AG E INVE ST PER CoACH $ ~ 21962 $ 13 992 17 60 14 209
19 INVESHIENT 1 354 9~ 3 059 506 549 044 7 97 5~ 2 lt164 650 99 466 10 000 509 20 RE SE RV E 1340 6 2 462 923 135951 503 6 1369 1 02 90 896 7 147 497
21 REM AIN ING VALUE (I NCL SALV) 14 250 596 583 413 093 293 869 1 095 548 8 570 2853 012 22 REMA I N I NG LIF E lOYR BAS I S 22 MO 90 MO 43 MO 52 MO 9 MO
23 REMAIN I NG L IFE 12YR BAS I 46 MO 90 MO 67 MO 76 MO 33 MO
yf THC COS T OF REBU IL DING 102 CoACHES OF THC 6000 AND 6 100 SE RIE S NOT I NCLUDE D HEREI N (SCE NEXT PACE)
1941 AN D 1942 MA T ER I AL S WE RE SuBJ ECT TO PR I OR I T ( S AND THEREFOR E STEEL WAS USE D IN PLACE OF
ALUMI NUM FO R BO DY FR AMES PAN EL S AND ROO FS I N SO ME COACHE S O F TH E TD- 4505 SERI ES
G - GASOl I NC D - D I CSE L AL - ALUM I NU M ST - Srr CL HYD - HYDRAUL I C
lt~i
~~4
CHART 4
LOS ANGELES TRANSIT LINES
MOTOR COACH EQUIPMENT
AS OF
SEPTEMB ER 1954IS_T 6000 SER I ES
6200 AND 6300 SER I ES
6
5 CHART
1~A~PLE OF THE DAMAGE TO BODY PANE LS M D RI VET ED JOINTS
2 - COACH WITH ALL BODY PANE LS Il l NDO V FR M1ES M~) SOIIE BO DY BRAC IN G REMOVED
l
LOS ANGELES TRANSIT LINES
PROGRAM OF
REBUILDING MOTOR COACHES
OF THE
6000 AND 6100 SERlES
j - PAR TI AL Re STO RA TI ON SODY PA NE LS Ix I I I )SI I ELD FRA Il E REPLA CED AFT ER kt C~ D I T I ON 116
I+ - AL L BO DY PANE LS AND S I DE W I~ DO J FRAhi ES RE shyPLACED AND ~ ESTO~ED
5 -INT ER IOR SHOW IN G CO MPLET E RE MOVAL OF SEATS AND OTHE R AC COUTERM ENTS REPLACED OR RECOND ITIO NED
6 -COMP LETE D I NTER l OR - t EIJ FLOO R
COV ER IN G WIT H S EAT CUSH IONS ETC
7 - COMP LET ED EXTER l OR COACH REPAI NTED AND READY FOR SERV I CE
I N 195 1 Los AN GELES T RANS IT LINES I NAUGURA TED A PROGRAM OF REBU IL D I NG GMC CoACHES OF THE
6 0 00 (BU ILT IN 1940) AND 61 00 ( BU ILT IN 1941) SER IE S A s OF JU LY 1954 62 COACH ES HAD BEE N
REBUILT WITH 40 ST ILL ON WORK ORDERS BUT IN PROCeSS THE CURRENT EST IM AT ED CO ST OF THIS
P ROGRMil I S AN AV ERAGE OF ~3500 PER COACH THE P U C S TAF F EST IMA TES THE LIF E OF TH ES E
COACH ES TO BE AN ADDIT IO NAL THR EE YEAR S FRO M DATE OF COMP LETI ON COS TS OF REB UILDING AR E
SHOWN I N THE RATE BAS E RE LATIV E TO THE APPROP RI ATE WORK ORDER AN D THEREFORE ARE NOT INCi UDEu
IN THE I NV ESH IENT FOR 60)0 AND 6100 S ERI ES COACH ES SHOWN ON CHAR T No 4
LOS ANGELES TRANSIT LINES SSTIMATED RATE BASE AND DEPRECHTION EXPENSE
12 I~ONTHS ENDING OCTOBSR 31 1955 CISE I - VnTH PRY-SENT METHOD OF SERTICE - APPLICATION NO 35601
Gum October 31 1954 As of October 31 1955
Line
No Item (1)
Iccnunt Number Invcstment
(2)
(3) Reserve
(4)
Inve stmen t Less
Reserve (5)
Remaining
Life (6)
In
Inve s tIDen t Less
vestment Reserve Reserve (7) (8) (9)
Depreciation Expense RAte YeAr
(10) LAND
1 2
Rights of VVAY Other Lmd
502 503
S 426974 1931112
$ 426974 1931112
$ middot 426974 1931112
$ 426974 $ 1931 112
EQUIP~NT ONl~ITDEPRECI~TION
3 Auto Tr011ey pcc53033Jf~034288 $ 7167640 $ 6866648 V3rious $14034288 $ 8125353 $ 5908935 $ 957713
PROPERTY ON GROUP DEPRECIATIJN OverheAQs
4 Engineering 501 $ 44651 $ 44651 OrgAnizAtiorfshy 546 601749 601749~ 5
6 Interest 547 middot 916884 916884 7 Gnding 504 1117084 1118084 8 All Other 505-545 27021634 4 Base 27141634 _____ _________ 9 Suttotal
(Lines 4 to 8) $29702002 $22441215 ~ 7260787 $29823002 ~23516286 $ 6306716 $1081071_
10 Tr)W(Lines 123 amp 9) ~46094376 $29608855 ~16485521 $46215376 $]1641639 $14573737 $2038784
11 RATE BASE Use - $2039000 12 Avenge 0f $16485521amp ~1+573 737 $15530000 13 Work in Progress 100000 14 M1terials amp Supplies 735000 15 Bond Deposit - City Fnnchise 411000 16 Deposit for PL Insurance 150000
17 Totil RAte BAse $16926000 8 t ~
-It- rhjor PArt of Acct 546 is Supervisinn --J
-----
LOS ANGELES TRI-NSIT LINES ESTThiIiTED Ri1TE BASE AND DEPRECllTION EXPENSE
12 NiONTHS ENDING OCTOBER 31 1955 CIlSE II - SSUMING MOTOR COACH SUBSTITUTION ON CERTHN RAIL LINES AS PROPOSED m iiPPLICilTION NO 35728
---- --------------- As f Oct)ber 31 195amp As of Oct0ber 31 1955 Inve sUn8nt Investment IBpreciaticn
Line Account Le ss REffiainin~ Less ExpensE No Item Number Inve-stmcnt ReS8riTe Reserve Life Investment Reserve ~ Reserve Rate Yeqr
(T) T2) 0) (Ii) (5) (6) (7) (8) (9) (10)
Ll~ND
1 Other LAnd 503 ~ 1925510 $ Ci 1925510 ~ 1925510 $ 1925510
EQUIP1A~NT ON UNIT DEPRECIATION 2 itutoIrol1eyPCC 5))3338 $16392563 $ 9323673 $ 7068890 Various $16392563 ~10391985 $ 6000578 $1068312
BUILDJNGS 3 General Office-~ 522 $ 916255 $ 563016 ~ 353239 1917 Yrs$ 916255 $ 581446 $ 334809 $ 18430 4 Shops Grgs Admin 523 amp524 2733772 1013500 1720272 2320 Yrs 2733772 1087633 1646139 74133 5 Subtotal (Lines 3 amp4) 3650027 ~ 1576516 gt 2073511 igt 3650027 11669079 ~ 1980948) 92563
~ PROPERTY ON GROUP DEPRECIATION Overheaas
6 Engineering 501) 7 Organizqtion 5~6) tt 1563178 ~ 1563178 8 Interest 547) 9 Grlding 504)
10 Righ ts of Vgy 502 117922 117922 11 All Other 505-5h5 15 651 31 7 15 771 31 7 ~---7-=-~-- lr-r-----=~ -x---r---~ 12 Subtotal (Lines 6 to 11) )17332417 $11343350 ~ 5989067 1117 Yramp$17452417 ~11833307 ~ 5619110 ~ 495957
13 Totql(Lines 125 amp 12) ~39300517 822243539 ~17056978 839420517 023894371 015526146 01656832
14 RATE BASE Use ~1657OOO 15 Avcr~ge of ~1705697B qnd )15526146 016292000 16 Nwk in Progre s s 100000 Am)unts sh)wn include lpplic3ble -werheqds fr)ll 17 Haterills amp Supplies 735000 Accnunts 546 amp 541 18 Bond Deposit - City Frqnchisc 411000 cent Investment ~d depreciation reserve assumes all 19 Deposit for PL Insurqnce 150000 retirements for the lines to be cmiddotmvcrted 1--3
20 Use Vqlue - Fully Depreciated CJtches 1)2000 ~re m~de 3S ) f November 1 1954 qnd that the ~ full unnunt middotf r e tirements qre charged to the EJ
21 Tot-l R1te Blse ~17840000 reserve co
10S ANG3LSS TRANSIT LI~S
INVESTWNT DSPRCIATICN R~SsRVS AND EXPSNS~ FOR ~QUIPMLNT ON UNIT PLAN DEPR3CHTION
CASES I AND II APPLICATIONS NO 35601 AND 35728
As of Oct0ber 31 ffi4 As of October 31 1955 Line NoTotal Investment fnvestment Depre No Item of Life Investment Reserve Less Investment Reserve Less Expense
Units Reserve Reserve Rate Year (1) (2) (J) 4) - ---(~ CD) en -- --8)----- -(9j- (10)
For Case I 1 Motor Coach Groups
62006300 66-6900 hOh 12 Yrs$6421159 $4728599 ~1692560 ~ 6421159 $ 500 1011 ~1330lh8 $ 362412 2 5000 6hoo 75 10 II 1486387 77~175 711212 1h86387 92h851 561536 149676 3 Coaches on order 100 10 II 2285400 2285400 2285400 2265J~0 2058860 226540
II
I 5 Automobiles 51 V3r 99485 50916 h8569 99485 66540 329h5 15624 ~ 6 Trucks amp Service Cars 56 II 280584 250572 30012 280584 265813 lh771 15241 I 7 Misc( Fare BoxesMotors) 170193 115191 55002 170193 122271 47922 7080
h Trolley Coaches 110 15 2108h09 908560 1199849 2108h09 1Oh6116 1062293 137556
8 Total of Lines 1 to 7 ~12851617 ~~6829013 ~02260h ~12i351617 ~ 77h3lh2 $5108475 $ 914129
9 PCC Rail Cars 40 25 rsJ~ 1182671 ) 338627 gt 84h04h 1182671 ~ 382211 ~ 800460 $ h3581~
10 Case I - Line 8 + Line 9 $14034288 $7167640 $6866648 ~14034288 $ 8125353 t5908935 $ 957713
For Case II
11 6000 amp 6100 Series MC 150 FD ~ 2092963 $2070463 ~ 22500 $ 2092963 $ 2070463 $ 22500 12 Work orders on 6000s
amp 6100 s 3 Yrs 265312 61860 203452 265312 144007 121305 $ 82147 13 PCC Rail Cars 401717 1182671 362 337__ ~~~ 334 1182671 43473 ___748298 72036
14 Case II - Lines 8 + 11+ 12+ 13 ~16392563 9323673 n068890 $16392563 ttl0391985 ~6ooo578 ~1068312
t-3
125 other PCC Cars are in Group Depreciation Schedule G ~
Note579 motor coaches under Case I and 729 under Case II D
LOS AlJGELES TRANSIT LnlES TABLE 10 ESTIMATE]) RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD E1TDUTG OCTOBER 31 1955 CASE I - UNDER PRESENT OPERATIONS
12 Months Jan-June
Line No Item
Tab1e Ending or May 31 1954 Page Fe fer
(2)
Book Record
(])
1954 Annualized
Book Record
(4)
Case I-A Present
Fares (5 )
Case I-B Applicant l s
Proposed Fares
(6)
1 Vehicle Miles T2 34036066 33569520 32747000 32440000
Revenue 2 3 4 5
Passenger Revenue Unredeemed Tokens Other Revenue Total
T1 P7 P7
$24849150
122402 $25044557
$24517866
183810 $24 701676
$22940000 $25513000 20000
1821 000 182 000 $23147000 $25700000
6 7 8
Operating Expenses Rail Trolley Coach Motor Coach
T3 T3 T3
$ 8493744 1442232 8622956
$ 8575232 1451430 8 n6470
$ 8115900 $ 8047000 1366000 1355400 8144200 8088900
9 10 11 12 13
Sub-Total Depreciation Operating Taxes Wage Increase Total
T7 T6
18563932 2176608 1676358
$22416898
18743132 2185804 1760600
$22689536
17626800 17491300~ 2039000 2039000 1663800 1711700
439800 436500 $21769400 $21678500
14 Operating Income $ 2627659 $ 20J2JJQ $ 1377600 $ 4021500 15 Other Inc amp Inc Deduct 21258 (9328)
16 Net Inc Before IncTaxes 2635217 2002742 1377600 4021500 I 17 Income Taxes (St ampFe~) 1302758 1026568 647500 1 999 000 18 Net Operating Income 1332459 976174 730100 2022 500 i 19 Allowance T4 112216 80752 1541000 1541000 20 Net Income $ 1220243 $ 895422 $576100 $ 1868500
21 Rate Base T7 $17393000 $16727000 $16926000 $16926000 22 Rate of Return 70~ 535 340 1104
Operating Ratio 23 Before Income Taxes 9405 8435 24 After Inc Taxes ampAllow 9751 927)
Not Applicable
Computed by PUC Staff Allowance for interest and amortization of abandoned property (Red ]figure)
- 31 shy
IDS ill~GElES TRANSIT LINES ESTIMATE OF OPERATllIG EX-degENSES JuID TAXES
FOR 12 f10NTHS ENDING OCTOBER 31 1955 CASE II - KOTOR COACH Sl~STITUTION - j~PLrCATION NO 35728
Table or Line Page Hotor Trolley
~To Item Reference Streetcar Coach Coach Total
l 2 3
4
I S
rv 6VJ
I 7 8 9
10 ll 12 13 Ih 15 16
17
13
(ll- -- shy
Vehicle Miles Case I - Present Operation Case II - Proposed Operation
Increase in i1iles
Opere amp I1aint Expense - Case I
Changes in Expense Due to Conversion Way and Structures Substation Operation Rail Crossing Protection Vehicle Maintenance Servicing of Vehicles Tires - Hotor Coach Equipment Operators vJages Fuel Oil or Power 21 amp PD Insurance ~Jorkmen I s Compensation Insurance Training Drivers for Conversion
Total Increase in Expense
Oper amp i1aint Expense - Case II (Line h +
Operating Taxes - Case II
(Red Figure)
(Z)
T2 T2
T3
Line 16)
D)
11887000 6691000
(5196000)
~ 8115900
t (11500) (42200) (55000)
(270900) (76900)
(1232900) (219800)
(liT shy
18314000 23h67000 5153000
amp 314~900
~
355000 h3300 32500
1154300 153000
-C5) (6)
2546000 32747000 2949000 33107000
403000 360000
S 1366000 ~gt 17 626800
If (144500) 1 ~ v$ ltW (42 200 ) - bull (55 000 ) 7HmiddotVj
19200 103300 M~ f~
3000 ( 30600) A N- i
32500 94400 15800 14600 (52206)
(1l1100) ~ [ (1200) Glh
30000 ~i
p (258200)
$17368600 r3
c~ 1786600 cr ill
I- CD
I- i-
TABLE 12
LOS ANGELES TRANSIT LINES ESTIMATED RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD ENDING OCTOBER 11 1955 CASE II - MOTOR COACH SUBSTITUTION - APPLICATION NO 15728
Table Case II-A Case II-B Line Item Refer- Present Proposed
Nos i FSles Faresect~nce
( 1) (2) (3) ( 4)
1 Vehicles Miles T 2 33107000 32817000
2 Operating Revenue T 10 $23147000 $25700000
O~erating E~ense
3 Operating and Maintenance Tll $17368600 $17234900 4 Depreciation T 8 1657000 1657000 5 Operating Taxes Tll 1786000 1837800 6 Wage Increase 434ZQQ 431 lt)00
Total $21246300 $211612007
8 Operating Income $ 1900700 $ 4538800 Other Inc amp Inc Deductions it 119
10 Net Income Before Income Taxes $ 1900700 $ 4538800 11 Income Taxes (State amp Federal) 214 200 2262 400 12 Net Operating Income $ 985800 $ 2275400 13 Allowance T 4 ~ 2090QO ~ 20200Q 14 Net Income $ 776800 $ 2066400
15 Rate Base T 8 $17840000 $17840000 16 Rate of Return 435 1158
012erating Ratio 17 Before Income Taxes 9179 8234 18 After Income Taxes amp Allowance 9664 9196
Not Appli cable
Allowance for interest and amortization related to streetcar abandonment of the past and for abandonmcnts proposed in Application No 35728
-33shy
LOS ANGELES TRANSIT Ln~S ESTH1ATE OF HILES TO i3LJ OERATEJJ FOR THE TlJ7IVE HONTHS-ENDING OCTOBER 31 1 q55
A UNDJilR PRESENT OPERATIONS B WITH HOTOR COACH SlfilSTITUTION AS PROPOSED IN APPLICATION NO 35n8
CASE I - PRESENT OPERlTI03S Present Fares Propose(l Fares
Estimatet Estimated Estimated Hiloago Estimated Est T)imirDl l4i Recluc-Estimatea Miles Miles (a) Decrease In Traffic Roduction Mileage of Traffiction Below Proposed
Item As Shown In Miles of the Decline Duo TrafficPresent FaresBelow TrafCol6 Due to Fares PDC Staff Dacrease9-15-54 to Docline (2) x At PrescntDiminution Col 6 x
________ (3) x (4) (100 - Col 5gt Fares (7) x (3) (100 - ColFJdlibLLJamp~Passengers ~-55 8) (1) (2) (3) (4) (5) (6) (7) (8) (9)
streetcar 12041861 30 43 L29 11587000 39 117 11748000
Trolley Coach 2546000 92573633 25f~ 43 1 075~b 3 0 975 2521000
Motor Coach (b) ]8li-~4 849 20 4 3~ 86 10 18106000 39 78 18163000bull I~
f-- ---J Total (b) 33080343 32739000 32432000
CASE II - OFSRATIONS PROPOSED IN APPLICATION NO 15728 Present Fares Proposed Fares
Item Estimatefl 1JIiles(a) As SnownEstimate~- Miles Present FarosEstimate~ Milos Proposed ___-~___------I=n~PDCStaff Exhibit No Col lOx (100 - Col 5) Faros Col llx (100-CQl~
(1) (10) (11) (12)
Stroetcar 6778211 6691000 6 61300O
Trolley Coach 2981376 2949000 2920000
Motor Coach (b) 236629)) 23459 1000 2276 7000
~Total (b) 33422542 33099000 32809000 ill r trl
(a) Based on th~ l ovel of traffic of Septombor 1954 I)
(b) To the estirl8ted milos shown here should bo a~dod 7500 Charter Miles
t-3
- - - - - - -
LOS kJGELES TRANSIT LINES Table 3 Sheet 1 of 3ESTIMATE OF RAIL OPERiTINGifiPENSES
CASE I - UNDER PRESENT OPERATIONS
Company Estfor 12 Mo~ Records Ending
Acct Jan-May 1954 103155 No I t e m Annualized Present Fares
Car Miles Way and Structures
1-24 ill Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 Superintendence 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conducting Transportation 63 Superintendence 64 Conductor Motormen etc 66 Car Service Emp 67 Miscel1 Car Service Exp 70 Car House Empa
Var other Cond Transp Accounts Total
Traffic 79 Superintendence 80 AdvertiSing
Total General
83 Gen Off - Sal and Exp 84 Gen Off Emp - Sal amp Exp 85 Gen Off a SuppJies amp Exps 88 Pensions
(93 Insurance PL amp PO (93 Insurance Workmens Comp (93 Insurance Other
Var Other General Accounts Total
Total Rail Operating Expense
Cents per Car Mile
12573226
$ 722615
$ 79078 759547 146522
$ 985141
$ 18190 174643 482945
23033 $ 698 811
$ 438900 3257666
104525 76608
351696 57240
$ 4286635
$ 6346 18353
$ 24699
$ 83645 123281
35570 4818S8 765019 46840 13664
287090 $ 1836967
$ 8554874
68004cent
ll887OOO
$ 722600
$ 79100 671200 147900
$ 898200
$) 18200 174600 547200
28900 $ 768900
$ 438900 2890900
104500 72200
351700 59600
$ 3917800
$ 6300 18400
$ 24700
$ 78900 123300 35600
456600 750400 ~ 43100 13700
282tl00 $ 1783700
$ 8115900
6827cent
Co
)
-
(1
I
flI
Car Miles Oper middot Exp Case I-B - Applicants Proposed Fares 11748000 $ 8047000 ~ Expenses Variable with Car Miles Wage rates used herein are those whieh
Ac30amp33 565 cent~ile prevailed immediately prior to 6154 59 460 The cost of the wage increase which 64 2432 tecomes fully effective on 12154 is 70 148 50 of total shown separately in Results of
Total 3605 centmile Operation table ~ See Table 5 for amounts under Proposed Fare
- 18 shy
- - - - - ------
LCB ANGELES TRANSIT LINFS Table 3 ESTIMATE OF TROLLEY COACH OPERATING EXPENSES Sheet 2 of 3
CASE I - UNDER PRESENT OPERATIONS
Acct No I t e m
Coach Miles Way and Structures
1-24 All Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 --superintendenoe 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conduoting Transportation 63 Superintendence 64 Operators Wages 70 Car House Employees
Var Other Condo Transp Accounts Total
Traffic 79 Superintendence 80 Advertising
Total General
83 Gen Off - Sal amp Exp 84 85
Gen Off Emp - Sal amp Exp Gen Off Supplies amp Exps
88 Pensions (93 Insurance PL amp PD (93 Insurance Worlanen s Comp (93 Insurance Other
Var Other General Accounts Total
Total Operating Expense
Cents per Mile
Case I-B - Applicants Proposed Fares
Expenses Variable with Coach Miles Acs 30amp33 477centmile
59 3038 64 2342 70 075 50 of total
Total 3232centjmi1e
~ See Table 5 for Amount Under Proposed Fares
Company Estfor 12 ME Recorda Ending Jan-May 1954 103155 I ~
Annualized Present Fares ~
2629188 2546000
$ 26518 $ 27000
$ 32628 $ 32600 125469 121400
11012 9600 $ 169109 $ 163600
$ 3770 $ 3800 35770 35BOO 75017 86000 1
8417 9000 $ 122974 $ 134600
$ 99161 $ 99200 612513 596300
38273 38300 21802 21500
$ 771749 $ 755300
$ 979 $ 1000 3588 3600
$ 4567 $ 4600
$ 15134 $ 12100 22990 23000 5669 5700
87614 83000 165089 97300 I
8516 8000 ~ 3054 3100
49076 48700 $ 357142 $ 280900 6
$1452059 $1366000
5523cent 5365cent
Coach Miles Oper Exp 2521000 $1355400 -- -0
Wage rates used herein are those which prevailed immedshyiately prior to 6154 The cost of the wage i~crease which becomes fully effective on 12154 is shown separately in Results of Operations table
- 19 shy
LOS ANGELES TRANS1 LINS TABLE 3 ESTIMATE OF MOTOR COAOH OPERATING EXPENSE Sheet 3 of 3
CASE I - UNDER PRESENT OPERATIONS
Company Estimate for Records 12 months
Jan - May Ending Acct 1954 103155 No I t e m Annualized Present Fares ~
Coach Miles 1832~158 18314000 Equipment Maintenance amp Gara~ Expense
4110 Supv - Shop and Gar $ 142788 $ 142800 4140-2 Repairs to Rev E~uipment 1097376 848800 4150 Servicing Rev Equipment 308373 307700 4160 Tires - Rev Equipment 123305 125200 Var Other Maint Accounts 151444 147300
Total $1823286 $1571800 Transportation Expense
4210 Supervision of Transp $ 487284 $ 487300 4220 Drivers I vrages 3767184 37589001= 3) bull
4230 522175 523800 )0
4240 Oil for Revenue Equipment 17256 19500 JOJ
Var Other Trans Exp Accounts 60153 58200 Total $4854052 $4847700
Traffic and Advertising 4470 Advertising $ 21593 $ 21600 Var Other Traffic Accounts 7)329 76500
Total $ 94922 $ 98100 Insurance
4510 Salaries and Expenses $ 18818 $ 18800 4520 Insurance PL amp PD 786322 542OOOp 4541 Insurance Workmens Compo 51458 50100p Var Other Insurance Exp 11357 11700 - shy
Fuel for Revenue Equipment _
J Total $ 867955 $ 622600 Administrative and General
4611-2 Gen Officers - Sal amp Exps $ 90806 $ 73500 4613-6 Gen Off Employees - Sal ampExp 138043 137000 4620 Law Expense 12910 16000 4630 Gen Office Supplies amp Exp 51689 44800 4640 Communication Expense 41143 45500 4652 Employees vlelfare 525737 498200 4655 Purchasing amp Stores 120790 120800 Var All Oth~r Adm amp Gen Exp 70090 53900
Total $1051208 $ 989700 Rents 15000 15000
Total Motor Coach Expense $8706423 $8144900 Cents per Mile 47middot50cent 4447cent
Coach Miles Ouer Exp Case I-B - Applicants Proposed Fares 18171 000 $8088900 -----shy
Expennes Variable with Milos Wage rates used herein are those which Ac 4140 463centmile prevailed immediately prior to 6154
4150 084 50 of total The cost of tho wage increase toJhich beshy4160 068 comes fully effective on 12154 is clnwn 4220 2052 separately in Results of Operation table 4230 286 4240 011
Total 2964centmile cent See Table 5 for Amount Under Proposed Fares 20 shy
TABLE 4
IDS ANGELES TRANSIT LUIES AMORTIZATION AND INTEREST ALLOWANCE
PAVING AND REMOVAL OBLIGATIONS - CASES I AND II APPLICATIONS NOS 35601 AND ~5728
A - Obligations from Abandonments Prior to 1954
Yearly Amortization $132000 Interest 16000
Total $148000
B - Obligations from Abandonment of Portions of IV and Rlt Lines (July 25 1954)
Yearly Amortization $ 4000 Interest 2000
Total $ 6000
C - Obligations from Abandonments as Proposed in Application No 35728 (November 1 154)
Yearly Amortization $ 35000 Interest 2JOOO
Total $ 55000
For Case I - Items A + B $154000
For Case II- Items A + B + C $209000
Includes cost of removal of electrical distribution system ($123700) and of substation equipment ($21600)
- 21 shy
LOS ANGELES TRAl~SIT Lli~S
RJBLIC LIABILITY PROPERTY DAl1AGE AND 1l0RIJftElI i S CCMFEi-TSATION EXPENSE illLATED TO SOUln~EbTT MILES Aim R3W-RLS PAS~lWEFS
CASE I - UNDER PRHSENT OPSHATIONS 1947 - 1950 Inc Jan-May Est FOr
Line Ito m 1951 1952 1953 195412 MosEnd No Total Av per Yr Annualizod 10 31 55
1 Lossos paid (n) $ 3890 $ 972 $ 1082 $ 902 $ 580 $ 262 2 Losses ostimato~ (a) 39 10 52 280 634 881 3 Reinsurance costs (a) 282 71 62 69 ____81 65 4 Total Losses_amp Insurance (a) $ 4211 $ 1053 $ 1196 $ 1251 $ 1295 $ 1208
5 Expenses paid (a) $ 1536 $ 384 $ 353 $ 385 $ 242 $ 170 6 Expenses estimated (a) 7 2 _ __ 11) 61 182 24S 7 Total expenses (a) $ 1543 $ middot 386 ~ 363 $ 446 $ 424 $415 8 Total LossesReiils amp Exp (a) $ 5754 $ 1439 1559 $ 1697 1719 $ 1622
(Lina 4- + 7) I 9 Number of claims filed 59991 14998 11588 11104 10246 9228
N
N 10 Vehiclo miles (millions) 153 4 384 356 351 346 336 I
11 Revenue Passon~crs (millions) 10093 2523 1924 1746 1661 1531
12 Loss Per 11i1 lliilos (4 ~ 10) ~27451 $27451 ~33596 $35~641 $37428 $35952 $35000
13 Loss Por i-Hllion Pass (4 11) $ 4172 $ 4172 ~ 6216 ) 7165 ~ 7797 $ 7890 $ 7500 14 Expensos por claim (7 f 9) h
ltfgt 2572 Y 25middot72 i) 3133 $ 4017 4138 $ 4497 $ 45 15 Claims per million miles (9 10) 391 391 326 316 296 275 280
16 Claims per million pass (9 11) 59 59 60 64 62 60 60
Ul p- CD (I)
(a) Thousand of dollars amp8
t-G o ~ H
J N
TABLE 5 LOS ANGELES TRANSIT LUTES Sheet 2 0 f 2
ESTIMATE OF PUBLIC LIABILITY AND PROPERTY DAMAGE AND WOBKMElJ 1 S COMPENSATION EXPENSES
FOR 12-MONTH PERIOD ENDING OCTOBER 31 1955 UNDER CASE I-A AND CASE I-B - PRESENT OPERATIONS ~lITH PRESENT amp PROPOSED FARES
Line 110
Cost Factors 1 Claims per million revenue passengers bull bull bull 2 raquo raquo vehicle miles bull bull bull 3 Expense per claim bull bull 4 Losses per million revenue passengers
raquo raquo vehicle miles bull bull bull bull 5 bull bull
60 280 45
7500 35000
Estimated Expense For PL and PD and Workmens Compensation Insurance
Case I-A Present Fares
6 Number of rovenue passengers (millions) 1395
7 Number of vehicle miles(millions) 3275
A - Basod on Number of Passengers 8 Losses 9 Expense
10 Total
B - Based 11 Losses 12 Expense 13 Total
$1046200 376700
$1422900
on Number of Vehicle Hiles $1146200
412700 $1558900
14 Average of A and B (PL amp PD and Workmen 6 Compo - $1490900
15 Workmens Compensation Insurance 101~200(a) 16 PL and PD Insurance 1389700
Distribution of Total PL amp PD Percent
17 Rail Operations 541 $ 750400 18 Trolloy Coach Operations 7 97300 19 Motor Coach Operations ~ -542000 20 Total 100 $1389700
Case I-B Proposed Fares
1341 3244
$1005700 362100
$1367800
$1135400 408700
$1544100
$1456000 100200 (b)
1355800
$ 732~100 94900
528800 $1355800
(a) Rail=$43lOO Trolley Coach=$8000 and Motor Coach=$50100
(b) Rail=$42 600_ Trolley Coach=$7 ~ 900 and Hotor Coach=$49 (00 _ --- I
- 23 shy
lA3LE 6
LOS ANGELES TRANSIT LINES ESTIHATE 041 OPERAT1NG TAXES
FOR 12 MONTHS ENDING OCTOBER 31 1955 CASE I - PRESENT OPERATIONS
APPLICATION NO 35601
Book Record Case I-A Case I-B L1ne I t e m 12 Months Present Proposed
No End 5-31~ Fares Fares(~ ) -=-----=-(3)~--=--~r(4~)~-(1)
1 City Franchise Taxes $ 473687 $ 434600 ~ 481900
2 Property Taxes-Ad Valorem 457963 435000 435000
3 Fuel and Oil Taxes 360580 337700 335100
4 Motor Vehicle License Taxes 136984 Ib8 900 168900
5 Transportation License 15600 21~00 (3 B of EHlshy
6 payroll Tuxes 265000 262500
Other raxes 7000 70007
Total ~ip 1 603 800
Net after weight fee credit
-24shy
LO S ANGELES TRANSIT LINES
TREN 0 OF WEEKLY REVENUE- PASS ENGER5 (E)(CLU SIVE OF POSTAL EMPLOYEES AND RIDERS ON SCHOOL FARES)
FEBRUARY 1952 TOJULY 1954 AND
ESTIMATE FOR 12 MONTHS ENDING OCT 31 1955
~ 3middot5 W w ~
a w 0
_ I cJ)
a 30 uJ 19 Z UJ cJ) cJ)
laquo 0
IL 0 25
([)
z 0 J J
~
bull ~ I
l T
-
- -
ltI-N
- 2
- wr-
u
- 2
--
w
- u
A I
1 ( A A I
j
~ J r 1f
I a V J 1 fv V V ~J
V 1IV I 1 II I
I I Jr 0
~
l) - 0 (c
rlt1
gt bull r gt 0 10 z I z ~
I I I w iw
I
I I EST I~ATE FOR 12 foONTHS ENDING OCTOBER 31 1955 w I UNDER PRpoundSENT FARES-
I w
u A - PASSENGERS PER WEEK bullbullbullbullbullbullbullbullbullbullbullbull 2 596 000
u B - PASSENGERS PER yEAR bullbullbullbullbullbullbullbullbullbull 135 363 000
- Z Ii
w I
w I
lt I
u u i
it i--0 w
~ - -lt 0-H gt- =-1--1 a 0
-Y
VI
I
I )
T ~20
JAN f EBMAR APRoMAY J UN JUL AUG SEPOCTNOV DEC JANFEB MARAP R MAY JUNJULAUG SE P OCT NOVmCJANfEB MARAPRMAY JUN JUL AUG S EP OCTNOV DE C JAN FEB MAR APR IoiIAY JU N gt- c-+shy
rv1952 953 954 1955 Wl
LOS ANGELES TRANSIT LINES ESTIMATE OF REVEruE PASSENGERS lID PASSENGER REVENUE
FOR 12 MONTHS ENDInG OCTOBER 31 1955 CASE I AND CASE II APPLICATION NO 15601 AND NO 35728
Present Fares Applicants Proposed Fares Est
Percent of Dlmin- PassenshyLlne of Total Fare Zone Passengera Revenue Fare utlon cera Revenue -=-----Ho-- Item Orldnalt Adjusted (Cents) Paus i cent (Cents) ~ cent cent
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
Adul t Passengers
lOne-Zone 15 65 58599 $ 8790 17 333 56648 $ 9630 2 1427 35 31553 4507 17 475 )0054 5109 3 666 666 1475 100 90152 $13297 86702 $14739
4 Two-Zone 20 65 25780 $ 5156 23 3middot75 24813 $ 5707 5 1927 ~ 13881 2677 ~ 481 13212 30)9 6 293 293 19751 100 39661 $ 783) 38026 $ 8746
7 Three-Zone 25 65 3476 $ 869 29 400 3337 $ 968 a-- 8 2427 22 1871 454 29 485 1 180 516 I 9 38 395 2475 100 5)47 $ 1323 511 $ 1484
10 Four-~one )0 65 1)2 $ 39 35 417 126 $ 44shy11 2927 35 71 21 35 488 68 24 12 ~ ----l5 29 75f 100 20) $ 60 - 194 $ 68 13 Sub-Total 1000 1000 ~ 135363 $22513 1300)9 $25037 14 Holly Park 10 200 $ 20 10 200 $ 20 15 Total Adult 13556) $225)) 130239 $25057
16 School 9 2797 $ 252 10 278 2719 $ 272 17 School 12 561 67 15 625 526 79 18 Total School )358 $ )19 )245 $ 351 19 Post Office 1427 616 $ B8 17 616 $ 105 20 Grand Total 139537 $22940 1)4100 $25513
cent (000) Omi tted ~ 1F Weighted Average Fare ~ If See Chart 2 + + As deter~ined by traffic checks and used in previous Staff reports
CHART 3
rr LOS AtJGELES
TRANSIT LINES
STREET CAR AN 0 TROLLEY COAe H
EQUIPMENT AS OF
H4 OR K4 OPEN END WOODEN SEATS H3 CLOSED ENDLEATHER S EATS SEPTEMB E R f 1954
JIshy
OLDER T YPE OF PCC CAR NE WER TYPE OF PCC CAR
8000 SERIES TROLLEY COACH 9000 SERIES TROLLEY COACH 9100 S ERI ES TROLLEY COACH
STREET CARS TROLLEY COACHES
ALL H3 H4 K4 PCC OTHER TOTAL 8000 9000
SEATS 48 48 48 12 5-61 SEATS VARIOU 44 4540-28 SEATS
EQU IPME NT ASSIGNMENTS UNDER PRESENT CoMPANY BASIS EFFECTIVE SEPTEMBER 12
9100
46 TOTAL
SCHEDULED SPARES
TOTAL ASSIGNED UNASSIGNED
TOTAL OWNED
SCHEDULED
SPARES
TOTAL ASSIGNED UNASSIGNED
TOTAL OWNE D
354 22 57 5
411 2 37 101 13
60 165 37 512 40 EQUIP MENT RE QUIREMENTS PRESENT SERVICE FOR RATE YEAR)
354 36
390 122 512
34 6
40 30
81 16
81 9
90 20
110 EQUIPMENT REQUIREMENTS WITH SERVICE AS P ROPOSED IN
ApPLICATIO N 28 (FOR RATE YEAR
SCHEDULED 20431 23 150 93 4 2 21SPARES 1015
TOTAL ASSIGNED 165 22525 10335 UNASSIGNED - 7
TOTAL RETAINED 225 11025 16535 To BE RETIRED 0190 2 7 37 TOTAL Now OWNED 60 110512 215 165 3735
-lE- ESTI MA TED BY P U C STAFF E
2 r
C
-
6600 SER IE S 6700 AND 6900 SER IE S 6800 SER I ES
L I NE 6200 No TE~ 5000 6000 yf 6 100 yf 6300 6400 6600
MACK G M e G M e G M e G MC G M C I i~IA K( amp UODEl NUMBER C-45 -CT TD-4502 rn -4505 TO- 4506 TDH-5103 TOH shy 36 1 2 YE AR BUilT l~ 1940 1941 1945 1951 1947 3 DATE I N SERV I CE 7 -40 1-42 7 - 45 7 - 51 7 -47 4 NUMBER O F CoACHES 50 55 95 200 25 57 5 PU RCHAS ED NEW OR US ED N N
6 S EATI NG CAPAC IT Y 45 45 45 51 36 45 40
~ LE NG TH - OUT S I DE 3~ -0 3~ - 0 37 -0 3~ -6 30 - 6 3~ - 0 3~ -0 WI DTH - OU T S IDE -Oil _-ttl 8 -0 -611 8 - 2 _OM I - 0
9 HE I CHT - OU TS I DE 9 -6 9 shy 5t 9 -6 9 t 4t ll 9 - 2 9 0 9 -6 10 A I SL( HEADROOM 76 77 78 78 76shy 8 76
11 A ISLE WI DTH 19 2 1 26 22 22 20 12 TY PE O f DR I V( HYD HYD HYD HYO HYD HYD
13 BRA KE HORSE POWER amp FUE L 165io) 165( 0) 165(0) 110(0) 165(0) 165(0) 14 Bo DY f RAME MA TE R I AL AL AL AL AL AL NOT G I VE N 15 Bo DY PANEL ~1ATE R I AL AL AL AL AL AL NO T GI VEN
16 ROO F MATER I AL AL AL amp ST AL AL amp ST AL amp ST NO T G I VEN
~ ~ - AT DCC CMBER 3 1 1953shy14 26 15298AV ER AG E INVE ST PER CoACH $ ~ 21962 $ 13 992 17 60 14 209
19 INVESHIENT 1 354 9~ 3 059 506 549 044 7 97 5~ 2 lt164 650 99 466 10 000 509 20 RE SE RV E 1340 6 2 462 923 135951 503 6 1369 1 02 90 896 7 147 497
21 REM AIN ING VALUE (I NCL SALV) 14 250 596 583 413 093 293 869 1 095 548 8 570 2853 012 22 REMA I N I NG LIF E lOYR BAS I S 22 MO 90 MO 43 MO 52 MO 9 MO
23 REMAIN I NG L IFE 12YR BAS I 46 MO 90 MO 67 MO 76 MO 33 MO
yf THC COS T OF REBU IL DING 102 CoACHES OF THC 6000 AND 6 100 SE RIE S NOT I NCLUDE D HEREI N (SCE NEXT PACE)
1941 AN D 1942 MA T ER I AL S WE RE SuBJ ECT TO PR I OR I T ( S AND THEREFOR E STEEL WAS USE D IN PLACE OF
ALUMI NUM FO R BO DY FR AMES PAN EL S AND ROO FS I N SO ME COACHE S O F TH E TD- 4505 SERI ES
G - GASOl I NC D - D I CSE L AL - ALUM I NU M ST - Srr CL HYD - HYDRAUL I C
lt~i
~~4
CHART 4
LOS ANGELES TRANSIT LINES
MOTOR COACH EQUIPMENT
AS OF
SEPTEMB ER 1954IS_T 6000 SER I ES
6200 AND 6300 SER I ES
6
5 CHART
1~A~PLE OF THE DAMAGE TO BODY PANE LS M D RI VET ED JOINTS
2 - COACH WITH ALL BODY PANE LS Il l NDO V FR M1ES M~) SOIIE BO DY BRAC IN G REMOVED
l
LOS ANGELES TRANSIT LINES
PROGRAM OF
REBUILDING MOTOR COACHES
OF THE
6000 AND 6100 SERlES
j - PAR TI AL Re STO RA TI ON SODY PA NE LS Ix I I I )SI I ELD FRA Il E REPLA CED AFT ER kt C~ D I T I ON 116
I+ - AL L BO DY PANE LS AND S I DE W I~ DO J FRAhi ES RE shyPLACED AND ~ ESTO~ED
5 -INT ER IOR SHOW IN G CO MPLET E RE MOVAL OF SEATS AND OTHE R AC COUTERM ENTS REPLACED OR RECOND ITIO NED
6 -COMP LETE D I NTER l OR - t EIJ FLOO R
COV ER IN G WIT H S EAT CUSH IONS ETC
7 - COMP LET ED EXTER l OR COACH REPAI NTED AND READY FOR SERV I CE
I N 195 1 Los AN GELES T RANS IT LINES I NAUGURA TED A PROGRAM OF REBU IL D I NG GMC CoACHES OF THE
6 0 00 (BU ILT IN 1940) AND 61 00 ( BU ILT IN 1941) SER IE S A s OF JU LY 1954 62 COACH ES HAD BEE N
REBUILT WITH 40 ST ILL ON WORK ORDERS BUT IN PROCeSS THE CURRENT EST IM AT ED CO ST OF THIS
P ROGRMil I S AN AV ERAGE OF ~3500 PER COACH THE P U C S TAF F EST IMA TES THE LIF E OF TH ES E
COACH ES TO BE AN ADDIT IO NAL THR EE YEAR S FRO M DATE OF COMP LETI ON COS TS OF REB UILDING AR E
SHOWN I N THE RATE BAS E RE LATIV E TO THE APPROP RI ATE WORK ORDER AN D THEREFORE ARE NOT INCi UDEu
IN THE I NV ESH IENT FOR 60)0 AND 6100 S ERI ES COACH ES SHOWN ON CHAR T No 4
LOS ANGELES TRANSIT LINES SSTIMATED RATE BASE AND DEPRECHTION EXPENSE
12 I~ONTHS ENDING OCTOBSR 31 1955 CISE I - VnTH PRY-SENT METHOD OF SERTICE - APPLICATION NO 35601
Gum October 31 1954 As of October 31 1955
Line
No Item (1)
Iccnunt Number Invcstment
(2)
(3) Reserve
(4)
Inve stmen t Less
Reserve (5)
Remaining
Life (6)
In
Inve s tIDen t Less
vestment Reserve Reserve (7) (8) (9)
Depreciation Expense RAte YeAr
(10) LAND
1 2
Rights of VVAY Other Lmd
502 503
S 426974 1931112
$ 426974 1931112
$ middot 426974 1931112
$ 426974 $ 1931 112
EQUIP~NT ONl~ITDEPRECI~TION
3 Auto Tr011ey pcc53033Jf~034288 $ 7167640 $ 6866648 V3rious $14034288 $ 8125353 $ 5908935 $ 957713
PROPERTY ON GROUP DEPRECIATIJN OverheAQs
4 Engineering 501 $ 44651 $ 44651 OrgAnizAtiorfshy 546 601749 601749~ 5
6 Interest 547 middot 916884 916884 7 Gnding 504 1117084 1118084 8 All Other 505-545 27021634 4 Base 27141634 _____ _________ 9 Suttotal
(Lines 4 to 8) $29702002 $22441215 ~ 7260787 $29823002 ~23516286 $ 6306716 $1081071_
10 Tr)W(Lines 123 amp 9) ~46094376 $29608855 ~16485521 $46215376 $]1641639 $14573737 $2038784
11 RATE BASE Use - $2039000 12 Avenge 0f $16485521amp ~1+573 737 $15530000 13 Work in Progress 100000 14 M1terials amp Supplies 735000 15 Bond Deposit - City Fnnchise 411000 16 Deposit for PL Insurance 150000
17 Totil RAte BAse $16926000 8 t ~
-It- rhjor PArt of Acct 546 is Supervisinn --J
-----
LOS ANGELES TRI-NSIT LINES ESTThiIiTED Ri1TE BASE AND DEPRECllTION EXPENSE
12 NiONTHS ENDING OCTOBER 31 1955 CIlSE II - SSUMING MOTOR COACH SUBSTITUTION ON CERTHN RAIL LINES AS PROPOSED m iiPPLICilTION NO 35728
---- --------------- As f Oct)ber 31 195amp As of Oct0ber 31 1955 Inve sUn8nt Investment IBpreciaticn
Line Account Le ss REffiainin~ Less ExpensE No Item Number Inve-stmcnt ReS8riTe Reserve Life Investment Reserve ~ Reserve Rate Yeqr
(T) T2) 0) (Ii) (5) (6) (7) (8) (9) (10)
Ll~ND
1 Other LAnd 503 ~ 1925510 $ Ci 1925510 ~ 1925510 $ 1925510
EQUIP1A~NT ON UNIT DEPRECIATION 2 itutoIrol1eyPCC 5))3338 $16392563 $ 9323673 $ 7068890 Various $16392563 ~10391985 $ 6000578 $1068312
BUILDJNGS 3 General Office-~ 522 $ 916255 $ 563016 ~ 353239 1917 Yrs$ 916255 $ 581446 $ 334809 $ 18430 4 Shops Grgs Admin 523 amp524 2733772 1013500 1720272 2320 Yrs 2733772 1087633 1646139 74133 5 Subtotal (Lines 3 amp4) 3650027 ~ 1576516 gt 2073511 igt 3650027 11669079 ~ 1980948) 92563
~ PROPERTY ON GROUP DEPRECIATION Overheaas
6 Engineering 501) 7 Organizqtion 5~6) tt 1563178 ~ 1563178 8 Interest 547) 9 Grlding 504)
10 Righ ts of Vgy 502 117922 117922 11 All Other 505-5h5 15 651 31 7 15 771 31 7 ~---7-=-~-- lr-r-----=~ -x---r---~ 12 Subtotal (Lines 6 to 11) )17332417 $11343350 ~ 5989067 1117 Yramp$17452417 ~11833307 ~ 5619110 ~ 495957
13 Totql(Lines 125 amp 12) ~39300517 822243539 ~17056978 839420517 023894371 015526146 01656832
14 RATE BASE Use ~1657OOO 15 Avcr~ge of ~1705697B qnd )15526146 016292000 16 Nwk in Progre s s 100000 Am)unts sh)wn include lpplic3ble -werheqds fr)ll 17 Haterills amp Supplies 735000 Accnunts 546 amp 541 18 Bond Deposit - City Frqnchisc 411000 cent Investment ~d depreciation reserve assumes all 19 Deposit for PL Insurqnce 150000 retirements for the lines to be cmiddotmvcrted 1--3
20 Use Vqlue - Fully Depreciated CJtches 1)2000 ~re m~de 3S ) f November 1 1954 qnd that the ~ full unnunt middotf r e tirements qre charged to the EJ
21 Tot-l R1te Blse ~17840000 reserve co
10S ANG3LSS TRANSIT LI~S
INVESTWNT DSPRCIATICN R~SsRVS AND EXPSNS~ FOR ~QUIPMLNT ON UNIT PLAN DEPR3CHTION
CASES I AND II APPLICATIONS NO 35601 AND 35728
As of Oct0ber 31 ffi4 As of October 31 1955 Line NoTotal Investment fnvestment Depre No Item of Life Investment Reserve Less Investment Reserve Less Expense
Units Reserve Reserve Rate Year (1) (2) (J) 4) - ---(~ CD) en -- --8)----- -(9j- (10)
For Case I 1 Motor Coach Groups
62006300 66-6900 hOh 12 Yrs$6421159 $4728599 ~1692560 ~ 6421159 $ 500 1011 ~1330lh8 $ 362412 2 5000 6hoo 75 10 II 1486387 77~175 711212 1h86387 92h851 561536 149676 3 Coaches on order 100 10 II 2285400 2285400 2285400 2265J~0 2058860 226540
II
I 5 Automobiles 51 V3r 99485 50916 h8569 99485 66540 329h5 15624 ~ 6 Trucks amp Service Cars 56 II 280584 250572 30012 280584 265813 lh771 15241 I 7 Misc( Fare BoxesMotors) 170193 115191 55002 170193 122271 47922 7080
h Trolley Coaches 110 15 2108h09 908560 1199849 2108h09 1Oh6116 1062293 137556
8 Total of Lines 1 to 7 ~12851617 ~~6829013 ~02260h ~12i351617 ~ 77h3lh2 $5108475 $ 914129
9 PCC Rail Cars 40 25 rsJ~ 1182671 ) 338627 gt 84h04h 1182671 ~ 382211 ~ 800460 $ h3581~
10 Case I - Line 8 + Line 9 $14034288 $7167640 $6866648 ~14034288 $ 8125353 t5908935 $ 957713
For Case II
11 6000 amp 6100 Series MC 150 FD ~ 2092963 $2070463 ~ 22500 $ 2092963 $ 2070463 $ 22500 12 Work orders on 6000s
amp 6100 s 3 Yrs 265312 61860 203452 265312 144007 121305 $ 82147 13 PCC Rail Cars 401717 1182671 362 337__ ~~~ 334 1182671 43473 ___748298 72036
14 Case II - Lines 8 + 11+ 12+ 13 ~16392563 9323673 n068890 $16392563 ttl0391985 ~6ooo578 ~1068312
t-3
125 other PCC Cars are in Group Depreciation Schedule G ~
Note579 motor coaches under Case I and 729 under Case II D
LOS AlJGELES TRANSIT LnlES TABLE 10 ESTIMATE]) RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD E1TDUTG OCTOBER 31 1955 CASE I - UNDER PRESENT OPERATIONS
12 Months Jan-June
Line No Item
Tab1e Ending or May 31 1954 Page Fe fer
(2)
Book Record
(])
1954 Annualized
Book Record
(4)
Case I-A Present
Fares (5 )
Case I-B Applicant l s
Proposed Fares
(6)
1 Vehicle Miles T2 34036066 33569520 32747000 32440000
Revenue 2 3 4 5
Passenger Revenue Unredeemed Tokens Other Revenue Total
T1 P7 P7
$24849150
122402 $25044557
$24517866
183810 $24 701676
$22940000 $25513000 20000
1821 000 182 000 $23147000 $25700000
6 7 8
Operating Expenses Rail Trolley Coach Motor Coach
T3 T3 T3
$ 8493744 1442232 8622956
$ 8575232 1451430 8 n6470
$ 8115900 $ 8047000 1366000 1355400 8144200 8088900
9 10 11 12 13
Sub-Total Depreciation Operating Taxes Wage Increase Total
T7 T6
18563932 2176608 1676358
$22416898
18743132 2185804 1760600
$22689536
17626800 17491300~ 2039000 2039000 1663800 1711700
439800 436500 $21769400 $21678500
14 Operating Income $ 2627659 $ 20J2JJQ $ 1377600 $ 4021500 15 Other Inc amp Inc Deduct 21258 (9328)
16 Net Inc Before IncTaxes 2635217 2002742 1377600 4021500 I 17 Income Taxes (St ampFe~) 1302758 1026568 647500 1 999 000 18 Net Operating Income 1332459 976174 730100 2022 500 i 19 Allowance T4 112216 80752 1541000 1541000 20 Net Income $ 1220243 $ 895422 $576100 $ 1868500
21 Rate Base T7 $17393000 $16727000 $16926000 $16926000 22 Rate of Return 70~ 535 340 1104
Operating Ratio 23 Before Income Taxes 9405 8435 24 After Inc Taxes ampAllow 9751 927)
Not Applicable
Computed by PUC Staff Allowance for interest and amortization of abandoned property (Red ]figure)
- 31 shy
IDS ill~GElES TRANSIT LINES ESTIMATE OF OPERATllIG EX-degENSES JuID TAXES
FOR 12 f10NTHS ENDING OCTOBER 31 1955 CASE II - KOTOR COACH Sl~STITUTION - j~PLrCATION NO 35728
Table or Line Page Hotor Trolley
~To Item Reference Streetcar Coach Coach Total
l 2 3
4
I S
rv 6VJ
I 7 8 9
10 ll 12 13 Ih 15 16
17
13
(ll- -- shy
Vehicle Miles Case I - Present Operation Case II - Proposed Operation
Increase in i1iles
Opere amp I1aint Expense - Case I
Changes in Expense Due to Conversion Way and Structures Substation Operation Rail Crossing Protection Vehicle Maintenance Servicing of Vehicles Tires - Hotor Coach Equipment Operators vJages Fuel Oil or Power 21 amp PD Insurance ~Jorkmen I s Compensation Insurance Training Drivers for Conversion
Total Increase in Expense
Oper amp i1aint Expense - Case II (Line h +
Operating Taxes - Case II
(Red Figure)
(Z)
T2 T2
T3
Line 16)
D)
11887000 6691000
(5196000)
~ 8115900
t (11500) (42200) (55000)
(270900) (76900)
(1232900) (219800)
(liT shy
18314000 23h67000 5153000
amp 314~900
~
355000 h3300 32500
1154300 153000
-C5) (6)
2546000 32747000 2949000 33107000
403000 360000
S 1366000 ~gt 17 626800
If (144500) 1 ~ v$ ltW (42 200 ) - bull (55 000 ) 7HmiddotVj
19200 103300 M~ f~
3000 ( 30600) A N- i
32500 94400 15800 14600 (52206)
(1l1100) ~ [ (1200) Glh
30000 ~i
p (258200)
$17368600 r3
c~ 1786600 cr ill
I- CD
I- i-
TABLE 12
LOS ANGELES TRANSIT LINES ESTIMATED RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD ENDING OCTOBER 11 1955 CASE II - MOTOR COACH SUBSTITUTION - APPLICATION NO 15728
Table Case II-A Case II-B Line Item Refer- Present Proposed
Nos i FSles Faresect~nce
( 1) (2) (3) ( 4)
1 Vehicles Miles T 2 33107000 32817000
2 Operating Revenue T 10 $23147000 $25700000
O~erating E~ense
3 Operating and Maintenance Tll $17368600 $17234900 4 Depreciation T 8 1657000 1657000 5 Operating Taxes Tll 1786000 1837800 6 Wage Increase 434ZQQ 431 lt)00
Total $21246300 $211612007
8 Operating Income $ 1900700 $ 4538800 Other Inc amp Inc Deductions it 119
10 Net Income Before Income Taxes $ 1900700 $ 4538800 11 Income Taxes (State amp Federal) 214 200 2262 400 12 Net Operating Income $ 985800 $ 2275400 13 Allowance T 4 ~ 2090QO ~ 20200Q 14 Net Income $ 776800 $ 2066400
15 Rate Base T 8 $17840000 $17840000 16 Rate of Return 435 1158
012erating Ratio 17 Before Income Taxes 9179 8234 18 After Income Taxes amp Allowance 9664 9196
Not Appli cable
Allowance for interest and amortization related to streetcar abandonment of the past and for abandonmcnts proposed in Application No 35728
-33shy
LOS ANGELES TRANSIT Ln~S ESTH1ATE OF HILES TO i3LJ OERATEJJ FOR THE TlJ7IVE HONTHS-ENDING OCTOBER 31 1 q55
A UNDJilR PRESENT OPERATIONS B WITH HOTOR COACH SlfilSTITUTION AS PROPOSED IN APPLICATION NO 35n8
CASE I - PRESENT OPERlTI03S Present Fares Propose(l Fares
Estimatet Estimated Estimated Hiloago Estimated Est T)imirDl l4i Recluc-Estimatea Miles Miles (a) Decrease In Traffic Roduction Mileage of Traffiction Below Proposed
Item As Shown In Miles of the Decline Duo TrafficPresent FaresBelow TrafCol6 Due to Fares PDC Staff Dacrease9-15-54 to Docline (2) x At PrescntDiminution Col 6 x
________ (3) x (4) (100 - Col 5gt Fares (7) x (3) (100 - ColFJdlibLLJamp~Passengers ~-55 8) (1) (2) (3) (4) (5) (6) (7) (8) (9)
streetcar 12041861 30 43 L29 11587000 39 117 11748000
Trolley Coach 2546000 92573633 25f~ 43 1 075~b 3 0 975 2521000
Motor Coach (b) ]8li-~4 849 20 4 3~ 86 10 18106000 39 78 18163000bull I~
f-- ---J Total (b) 33080343 32739000 32432000
CASE II - OFSRATIONS PROPOSED IN APPLICATION NO 15728 Present Fares Proposed Fares
Item Estimatefl 1JIiles(a) As SnownEstimate~- Miles Present FarosEstimate~ Milos Proposed ___-~___------I=n~PDCStaff Exhibit No Col lOx (100 - Col 5) Faros Col llx (100-CQl~
(1) (10) (11) (12)
Stroetcar 6778211 6691000 6 61300O
Trolley Coach 2981376 2949000 2920000
Motor Coach (b) 236629)) 23459 1000 2276 7000
~Total (b) 33422542 33099000 32809000 ill r trl
(a) Based on th~ l ovel of traffic of Septombor 1954 I)
(b) To the estirl8ted milos shown here should bo a~dod 7500 Charter Miles
t-3
- - - - - - -
LOS kJGELES TRANSIT LINES Table 3 Sheet 1 of 3ESTIMATE OF RAIL OPERiTINGifiPENSES
CASE I - UNDER PRESENT OPERATIONS
Company Estfor 12 Mo~ Records Ending
Acct Jan-May 1954 103155 No I t e m Annualized Present Fares
Car Miles Way and Structures
1-24 ill Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 Superintendence 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conducting Transportation 63 Superintendence 64 Conductor Motormen etc 66 Car Service Emp 67 Miscel1 Car Service Exp 70 Car House Empa
Var other Cond Transp Accounts Total
Traffic 79 Superintendence 80 AdvertiSing
Total General
83 Gen Off - Sal and Exp 84 Gen Off Emp - Sal amp Exp 85 Gen Off a SuppJies amp Exps 88 Pensions
(93 Insurance PL amp PO (93 Insurance Workmens Comp (93 Insurance Other
Var Other General Accounts Total
Total Rail Operating Expense
Cents per Car Mile
12573226
$ 722615
$ 79078 759547 146522
$ 985141
$ 18190 174643 482945
23033 $ 698 811
$ 438900 3257666
104525 76608
351696 57240
$ 4286635
$ 6346 18353
$ 24699
$ 83645 123281
35570 4818S8 765019 46840 13664
287090 $ 1836967
$ 8554874
68004cent
ll887OOO
$ 722600
$ 79100 671200 147900
$ 898200
$) 18200 174600 547200
28900 $ 768900
$ 438900 2890900
104500 72200
351700 59600
$ 3917800
$ 6300 18400
$ 24700
$ 78900 123300 35600
456600 750400 ~ 43100 13700
282tl00 $ 1783700
$ 8115900
6827cent
Co
)
-
(1
I
flI
Car Miles Oper middot Exp Case I-B - Applicants Proposed Fares 11748000 $ 8047000 ~ Expenses Variable with Car Miles Wage rates used herein are those whieh
Ac30amp33 565 cent~ile prevailed immediately prior to 6154 59 460 The cost of the wage increase which 64 2432 tecomes fully effective on 12154 is 70 148 50 of total shown separately in Results of
Total 3605 centmile Operation table ~ See Table 5 for amounts under Proposed Fare
- 18 shy
- - - - - ------
LCB ANGELES TRANSIT LINFS Table 3 ESTIMATE OF TROLLEY COACH OPERATING EXPENSES Sheet 2 of 3
CASE I - UNDER PRESENT OPERATIONS
Acct No I t e m
Coach Miles Way and Structures
1-24 All Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 --superintendenoe 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conduoting Transportation 63 Superintendence 64 Operators Wages 70 Car House Employees
Var Other Condo Transp Accounts Total
Traffic 79 Superintendence 80 Advertising
Total General
83 Gen Off - Sal amp Exp 84 85
Gen Off Emp - Sal amp Exp Gen Off Supplies amp Exps
88 Pensions (93 Insurance PL amp PD (93 Insurance Worlanen s Comp (93 Insurance Other
Var Other General Accounts Total
Total Operating Expense
Cents per Mile
Case I-B - Applicants Proposed Fares
Expenses Variable with Coach Miles Acs 30amp33 477centmile
59 3038 64 2342 70 075 50 of total
Total 3232centjmi1e
~ See Table 5 for Amount Under Proposed Fares
Company Estfor 12 ME Recorda Ending Jan-May 1954 103155 I ~
Annualized Present Fares ~
2629188 2546000
$ 26518 $ 27000
$ 32628 $ 32600 125469 121400
11012 9600 $ 169109 $ 163600
$ 3770 $ 3800 35770 35BOO 75017 86000 1
8417 9000 $ 122974 $ 134600
$ 99161 $ 99200 612513 596300
38273 38300 21802 21500
$ 771749 $ 755300
$ 979 $ 1000 3588 3600
$ 4567 $ 4600
$ 15134 $ 12100 22990 23000 5669 5700
87614 83000 165089 97300 I
8516 8000 ~ 3054 3100
49076 48700 $ 357142 $ 280900 6
$1452059 $1366000
5523cent 5365cent
Coach Miles Oper Exp 2521000 $1355400 -- -0
Wage rates used herein are those which prevailed immedshyiately prior to 6154 The cost of the wage i~crease which becomes fully effective on 12154 is shown separately in Results of Operations table
- 19 shy
LOS ANGELES TRANS1 LINS TABLE 3 ESTIMATE OF MOTOR COAOH OPERATING EXPENSE Sheet 3 of 3
CASE I - UNDER PRESENT OPERATIONS
Company Estimate for Records 12 months
Jan - May Ending Acct 1954 103155 No I t e m Annualized Present Fares ~
Coach Miles 1832~158 18314000 Equipment Maintenance amp Gara~ Expense
4110 Supv - Shop and Gar $ 142788 $ 142800 4140-2 Repairs to Rev E~uipment 1097376 848800 4150 Servicing Rev Equipment 308373 307700 4160 Tires - Rev Equipment 123305 125200 Var Other Maint Accounts 151444 147300
Total $1823286 $1571800 Transportation Expense
4210 Supervision of Transp $ 487284 $ 487300 4220 Drivers I vrages 3767184 37589001= 3) bull
4230 522175 523800 )0
4240 Oil for Revenue Equipment 17256 19500 JOJ
Var Other Trans Exp Accounts 60153 58200 Total $4854052 $4847700
Traffic and Advertising 4470 Advertising $ 21593 $ 21600 Var Other Traffic Accounts 7)329 76500
Total $ 94922 $ 98100 Insurance
4510 Salaries and Expenses $ 18818 $ 18800 4520 Insurance PL amp PD 786322 542OOOp 4541 Insurance Workmens Compo 51458 50100p Var Other Insurance Exp 11357 11700 - shy
Fuel for Revenue Equipment _
J Total $ 867955 $ 622600 Administrative and General
4611-2 Gen Officers - Sal amp Exps $ 90806 $ 73500 4613-6 Gen Off Employees - Sal ampExp 138043 137000 4620 Law Expense 12910 16000 4630 Gen Office Supplies amp Exp 51689 44800 4640 Communication Expense 41143 45500 4652 Employees vlelfare 525737 498200 4655 Purchasing amp Stores 120790 120800 Var All Oth~r Adm amp Gen Exp 70090 53900
Total $1051208 $ 989700 Rents 15000 15000
Total Motor Coach Expense $8706423 $8144900 Cents per Mile 47middot50cent 4447cent
Coach Miles Ouer Exp Case I-B - Applicants Proposed Fares 18171 000 $8088900 -----shy
Expennes Variable with Milos Wage rates used herein are those which Ac 4140 463centmile prevailed immediately prior to 6154
4150 084 50 of total The cost of tho wage increase toJhich beshy4160 068 comes fully effective on 12154 is clnwn 4220 2052 separately in Results of Operation table 4230 286 4240 011
Total 2964centmile cent See Table 5 for Amount Under Proposed Fares 20 shy
TABLE 4
IDS ANGELES TRANSIT LUIES AMORTIZATION AND INTEREST ALLOWANCE
PAVING AND REMOVAL OBLIGATIONS - CASES I AND II APPLICATIONS NOS 35601 AND ~5728
A - Obligations from Abandonments Prior to 1954
Yearly Amortization $132000 Interest 16000
Total $148000
B - Obligations from Abandonment of Portions of IV and Rlt Lines (July 25 1954)
Yearly Amortization $ 4000 Interest 2000
Total $ 6000
C - Obligations from Abandonments as Proposed in Application No 35728 (November 1 154)
Yearly Amortization $ 35000 Interest 2JOOO
Total $ 55000
For Case I - Items A + B $154000
For Case II- Items A + B + C $209000
Includes cost of removal of electrical distribution system ($123700) and of substation equipment ($21600)
- 21 shy
LOS ANGELES TRAl~SIT Lli~S
RJBLIC LIABILITY PROPERTY DAl1AGE AND 1l0RIJftElI i S CCMFEi-TSATION EXPENSE illLATED TO SOUln~EbTT MILES Aim R3W-RLS PAS~lWEFS
CASE I - UNDER PRHSENT OPSHATIONS 1947 - 1950 Inc Jan-May Est FOr
Line Ito m 1951 1952 1953 195412 MosEnd No Total Av per Yr Annualizod 10 31 55
1 Lossos paid (n) $ 3890 $ 972 $ 1082 $ 902 $ 580 $ 262 2 Losses ostimato~ (a) 39 10 52 280 634 881 3 Reinsurance costs (a) 282 71 62 69 ____81 65 4 Total Losses_amp Insurance (a) $ 4211 $ 1053 $ 1196 $ 1251 $ 1295 $ 1208
5 Expenses paid (a) $ 1536 $ 384 $ 353 $ 385 $ 242 $ 170 6 Expenses estimated (a) 7 2 _ __ 11) 61 182 24S 7 Total expenses (a) $ 1543 $ middot 386 ~ 363 $ 446 $ 424 $415 8 Total LossesReiils amp Exp (a) $ 5754 $ 1439 1559 $ 1697 1719 $ 1622
(Lina 4- + 7) I 9 Number of claims filed 59991 14998 11588 11104 10246 9228
N
N 10 Vehiclo miles (millions) 153 4 384 356 351 346 336 I
11 Revenue Passon~crs (millions) 10093 2523 1924 1746 1661 1531
12 Loss Per 11i1 lliilos (4 ~ 10) ~27451 $27451 ~33596 $35~641 $37428 $35952 $35000
13 Loss Por i-Hllion Pass (4 11) $ 4172 $ 4172 ~ 6216 ) 7165 ~ 7797 $ 7890 $ 7500 14 Expensos por claim (7 f 9) h
ltfgt 2572 Y 25middot72 i) 3133 $ 4017 4138 $ 4497 $ 45 15 Claims per million miles (9 10) 391 391 326 316 296 275 280
16 Claims per million pass (9 11) 59 59 60 64 62 60 60
Ul p- CD (I)
(a) Thousand of dollars amp8
t-G o ~ H
J N
TABLE 5 LOS ANGELES TRANSIT LUTES Sheet 2 0 f 2
ESTIMATE OF PUBLIC LIABILITY AND PROPERTY DAMAGE AND WOBKMElJ 1 S COMPENSATION EXPENSES
FOR 12-MONTH PERIOD ENDING OCTOBER 31 1955 UNDER CASE I-A AND CASE I-B - PRESENT OPERATIONS ~lITH PRESENT amp PROPOSED FARES
Line 110
Cost Factors 1 Claims per million revenue passengers bull bull bull 2 raquo raquo vehicle miles bull bull bull 3 Expense per claim bull bull 4 Losses per million revenue passengers
raquo raquo vehicle miles bull bull bull bull 5 bull bull
60 280 45
7500 35000
Estimated Expense For PL and PD and Workmens Compensation Insurance
Case I-A Present Fares
6 Number of rovenue passengers (millions) 1395
7 Number of vehicle miles(millions) 3275
A - Basod on Number of Passengers 8 Losses 9 Expense
10 Total
B - Based 11 Losses 12 Expense 13 Total
$1046200 376700
$1422900
on Number of Vehicle Hiles $1146200
412700 $1558900
14 Average of A and B (PL amp PD and Workmen 6 Compo - $1490900
15 Workmens Compensation Insurance 101~200(a) 16 PL and PD Insurance 1389700
Distribution of Total PL amp PD Percent
17 Rail Operations 541 $ 750400 18 Trolloy Coach Operations 7 97300 19 Motor Coach Operations ~ -542000 20 Total 100 $1389700
Case I-B Proposed Fares
1341 3244
$1005700 362100
$1367800
$1135400 408700
$1544100
$1456000 100200 (b)
1355800
$ 732~100 94900
528800 $1355800
(a) Rail=$43lOO Trolley Coach=$8000 and Motor Coach=$50100
(b) Rail=$42 600_ Trolley Coach=$7 ~ 900 and Hotor Coach=$49 (00 _ --- I
- 23 shy
lA3LE 6
LOS ANGELES TRANSIT LINES ESTIHATE 041 OPERAT1NG TAXES
FOR 12 MONTHS ENDING OCTOBER 31 1955 CASE I - PRESENT OPERATIONS
APPLICATION NO 35601
Book Record Case I-A Case I-B L1ne I t e m 12 Months Present Proposed
No End 5-31~ Fares Fares(~ ) -=-----=-(3)~--=--~r(4~)~-(1)
1 City Franchise Taxes $ 473687 $ 434600 ~ 481900
2 Property Taxes-Ad Valorem 457963 435000 435000
3 Fuel and Oil Taxes 360580 337700 335100
4 Motor Vehicle License Taxes 136984 Ib8 900 168900
5 Transportation License 15600 21~00 (3 B of EHlshy
6 payroll Tuxes 265000 262500
Other raxes 7000 70007
Total ~ip 1 603 800
Net after weight fee credit
-24shy
LOS ANGELES TRANSIT LINES ESTIMATE OF REVEruE PASSENGERS lID PASSENGER REVENUE
FOR 12 MONTHS ENDInG OCTOBER 31 1955 CASE I AND CASE II APPLICATION NO 15601 AND NO 35728
Present Fares Applicants Proposed Fares Est
Percent of Dlmin- PassenshyLlne of Total Fare Zone Passengera Revenue Fare utlon cera Revenue -=-----Ho-- Item Orldnalt Adjusted (Cents) Paus i cent (Cents) ~ cent cent
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
Adul t Passengers
lOne-Zone 15 65 58599 $ 8790 17 333 56648 $ 9630 2 1427 35 31553 4507 17 475 )0054 5109 3 666 666 1475 100 90152 $13297 86702 $14739
4 Two-Zone 20 65 25780 $ 5156 23 3middot75 24813 $ 5707 5 1927 ~ 13881 2677 ~ 481 13212 30)9 6 293 293 19751 100 39661 $ 783) 38026 $ 8746
7 Three-Zone 25 65 3476 $ 869 29 400 3337 $ 968 a-- 8 2427 22 1871 454 29 485 1 180 516 I 9 38 395 2475 100 5)47 $ 1323 511 $ 1484
10 Four-~one )0 65 1)2 $ 39 35 417 126 $ 44shy11 2927 35 71 21 35 488 68 24 12 ~ ----l5 29 75f 100 20) $ 60 - 194 $ 68 13 Sub-Total 1000 1000 ~ 135363 $22513 1300)9 $25037 14 Holly Park 10 200 $ 20 10 200 $ 20 15 Total Adult 13556) $225)) 130239 $25057
16 School 9 2797 $ 252 10 278 2719 $ 272 17 School 12 561 67 15 625 526 79 18 Total School )358 $ )19 )245 $ 351 19 Post Office 1427 616 $ B8 17 616 $ 105 20 Grand Total 139537 $22940 1)4100 $25513
cent (000) Omi tted ~ 1F Weighted Average Fare ~ If See Chart 2 + + As deter~ined by traffic checks and used in previous Staff reports
CHART 3
rr LOS AtJGELES
TRANSIT LINES
STREET CAR AN 0 TROLLEY COAe H
EQUIPMENT AS OF
H4 OR K4 OPEN END WOODEN SEATS H3 CLOSED ENDLEATHER S EATS SEPTEMB E R f 1954
JIshy
OLDER T YPE OF PCC CAR NE WER TYPE OF PCC CAR
8000 SERIES TROLLEY COACH 9000 SERIES TROLLEY COACH 9100 S ERI ES TROLLEY COACH
STREET CARS TROLLEY COACHES
ALL H3 H4 K4 PCC OTHER TOTAL 8000 9000
SEATS 48 48 48 12 5-61 SEATS VARIOU 44 4540-28 SEATS
EQU IPME NT ASSIGNMENTS UNDER PRESENT CoMPANY BASIS EFFECTIVE SEPTEMBER 12
9100
46 TOTAL
SCHEDULED SPARES
TOTAL ASSIGNED UNASSIGNED
TOTAL OWNED
SCHEDULED
SPARES
TOTAL ASSIGNED UNASSIGNED
TOTAL OWNE D
354 22 57 5
411 2 37 101 13
60 165 37 512 40 EQUIP MENT RE QUIREMENTS PRESENT SERVICE FOR RATE YEAR)
354 36
390 122 512
34 6
40 30
81 16
81 9
90 20
110 EQUIPMENT REQUIREMENTS WITH SERVICE AS P ROPOSED IN
ApPLICATIO N 28 (FOR RATE YEAR
SCHEDULED 20431 23 150 93 4 2 21SPARES 1015
TOTAL ASSIGNED 165 22525 10335 UNASSIGNED - 7
TOTAL RETAINED 225 11025 16535 To BE RETIRED 0190 2 7 37 TOTAL Now OWNED 60 110512 215 165 3735
-lE- ESTI MA TED BY P U C STAFF E
2 r
C
-
6600 SER IE S 6700 AND 6900 SER IE S 6800 SER I ES
L I NE 6200 No TE~ 5000 6000 yf 6 100 yf 6300 6400 6600
MACK G M e G M e G M e G MC G M C I i~IA K( amp UODEl NUMBER C-45 -CT TD-4502 rn -4505 TO- 4506 TDH-5103 TOH shy 36 1 2 YE AR BUilT l~ 1940 1941 1945 1951 1947 3 DATE I N SERV I CE 7 -40 1-42 7 - 45 7 - 51 7 -47 4 NUMBER O F CoACHES 50 55 95 200 25 57 5 PU RCHAS ED NEW OR US ED N N
6 S EATI NG CAPAC IT Y 45 45 45 51 36 45 40
~ LE NG TH - OUT S I DE 3~ -0 3~ - 0 37 -0 3~ -6 30 - 6 3~ - 0 3~ -0 WI DTH - OU T S IDE -Oil _-ttl 8 -0 -611 8 - 2 _OM I - 0
9 HE I CHT - OU TS I DE 9 -6 9 shy 5t 9 -6 9 t 4t ll 9 - 2 9 0 9 -6 10 A I SL( HEADROOM 76 77 78 78 76shy 8 76
11 A ISLE WI DTH 19 2 1 26 22 22 20 12 TY PE O f DR I V( HYD HYD HYD HYO HYD HYD
13 BRA KE HORSE POWER amp FUE L 165io) 165( 0) 165(0) 110(0) 165(0) 165(0) 14 Bo DY f RAME MA TE R I AL AL AL AL AL AL NOT G I VE N 15 Bo DY PANEL ~1ATE R I AL AL AL AL AL AL NO T GI VEN
16 ROO F MATER I AL AL AL amp ST AL AL amp ST AL amp ST NO T G I VEN
~ ~ - AT DCC CMBER 3 1 1953shy14 26 15298AV ER AG E INVE ST PER CoACH $ ~ 21962 $ 13 992 17 60 14 209
19 INVESHIENT 1 354 9~ 3 059 506 549 044 7 97 5~ 2 lt164 650 99 466 10 000 509 20 RE SE RV E 1340 6 2 462 923 135951 503 6 1369 1 02 90 896 7 147 497
21 REM AIN ING VALUE (I NCL SALV) 14 250 596 583 413 093 293 869 1 095 548 8 570 2853 012 22 REMA I N I NG LIF E lOYR BAS I S 22 MO 90 MO 43 MO 52 MO 9 MO
23 REMAIN I NG L IFE 12YR BAS I 46 MO 90 MO 67 MO 76 MO 33 MO
yf THC COS T OF REBU IL DING 102 CoACHES OF THC 6000 AND 6 100 SE RIE S NOT I NCLUDE D HEREI N (SCE NEXT PACE)
1941 AN D 1942 MA T ER I AL S WE RE SuBJ ECT TO PR I OR I T ( S AND THEREFOR E STEEL WAS USE D IN PLACE OF
ALUMI NUM FO R BO DY FR AMES PAN EL S AND ROO FS I N SO ME COACHE S O F TH E TD- 4505 SERI ES
G - GASOl I NC D - D I CSE L AL - ALUM I NU M ST - Srr CL HYD - HYDRAUL I C
lt~i
~~4
CHART 4
LOS ANGELES TRANSIT LINES
MOTOR COACH EQUIPMENT
AS OF
SEPTEMB ER 1954IS_T 6000 SER I ES
6200 AND 6300 SER I ES
6
5 CHART
1~A~PLE OF THE DAMAGE TO BODY PANE LS M D RI VET ED JOINTS
2 - COACH WITH ALL BODY PANE LS Il l NDO V FR M1ES M~) SOIIE BO DY BRAC IN G REMOVED
l
LOS ANGELES TRANSIT LINES
PROGRAM OF
REBUILDING MOTOR COACHES
OF THE
6000 AND 6100 SERlES
j - PAR TI AL Re STO RA TI ON SODY PA NE LS Ix I I I )SI I ELD FRA Il E REPLA CED AFT ER kt C~ D I T I ON 116
I+ - AL L BO DY PANE LS AND S I DE W I~ DO J FRAhi ES RE shyPLACED AND ~ ESTO~ED
5 -INT ER IOR SHOW IN G CO MPLET E RE MOVAL OF SEATS AND OTHE R AC COUTERM ENTS REPLACED OR RECOND ITIO NED
6 -COMP LETE D I NTER l OR - t EIJ FLOO R
COV ER IN G WIT H S EAT CUSH IONS ETC
7 - COMP LET ED EXTER l OR COACH REPAI NTED AND READY FOR SERV I CE
I N 195 1 Los AN GELES T RANS IT LINES I NAUGURA TED A PROGRAM OF REBU IL D I NG GMC CoACHES OF THE
6 0 00 (BU ILT IN 1940) AND 61 00 ( BU ILT IN 1941) SER IE S A s OF JU LY 1954 62 COACH ES HAD BEE N
REBUILT WITH 40 ST ILL ON WORK ORDERS BUT IN PROCeSS THE CURRENT EST IM AT ED CO ST OF THIS
P ROGRMil I S AN AV ERAGE OF ~3500 PER COACH THE P U C S TAF F EST IMA TES THE LIF E OF TH ES E
COACH ES TO BE AN ADDIT IO NAL THR EE YEAR S FRO M DATE OF COMP LETI ON COS TS OF REB UILDING AR E
SHOWN I N THE RATE BAS E RE LATIV E TO THE APPROP RI ATE WORK ORDER AN D THEREFORE ARE NOT INCi UDEu
IN THE I NV ESH IENT FOR 60)0 AND 6100 S ERI ES COACH ES SHOWN ON CHAR T No 4
LOS ANGELES TRANSIT LINES SSTIMATED RATE BASE AND DEPRECHTION EXPENSE
12 I~ONTHS ENDING OCTOBSR 31 1955 CISE I - VnTH PRY-SENT METHOD OF SERTICE - APPLICATION NO 35601
Gum October 31 1954 As of October 31 1955
Line
No Item (1)
Iccnunt Number Invcstment
(2)
(3) Reserve
(4)
Inve stmen t Less
Reserve (5)
Remaining
Life (6)
In
Inve s tIDen t Less
vestment Reserve Reserve (7) (8) (9)
Depreciation Expense RAte YeAr
(10) LAND
1 2
Rights of VVAY Other Lmd
502 503
S 426974 1931112
$ 426974 1931112
$ middot 426974 1931112
$ 426974 $ 1931 112
EQUIP~NT ONl~ITDEPRECI~TION
3 Auto Tr011ey pcc53033Jf~034288 $ 7167640 $ 6866648 V3rious $14034288 $ 8125353 $ 5908935 $ 957713
PROPERTY ON GROUP DEPRECIATIJN OverheAQs
4 Engineering 501 $ 44651 $ 44651 OrgAnizAtiorfshy 546 601749 601749~ 5
6 Interest 547 middot 916884 916884 7 Gnding 504 1117084 1118084 8 All Other 505-545 27021634 4 Base 27141634 _____ _________ 9 Suttotal
(Lines 4 to 8) $29702002 $22441215 ~ 7260787 $29823002 ~23516286 $ 6306716 $1081071_
10 Tr)W(Lines 123 amp 9) ~46094376 $29608855 ~16485521 $46215376 $]1641639 $14573737 $2038784
11 RATE BASE Use - $2039000 12 Avenge 0f $16485521amp ~1+573 737 $15530000 13 Work in Progress 100000 14 M1terials amp Supplies 735000 15 Bond Deposit - City Fnnchise 411000 16 Deposit for PL Insurance 150000
17 Totil RAte BAse $16926000 8 t ~
-It- rhjor PArt of Acct 546 is Supervisinn --J
-----
LOS ANGELES TRI-NSIT LINES ESTThiIiTED Ri1TE BASE AND DEPRECllTION EXPENSE
12 NiONTHS ENDING OCTOBER 31 1955 CIlSE II - SSUMING MOTOR COACH SUBSTITUTION ON CERTHN RAIL LINES AS PROPOSED m iiPPLICilTION NO 35728
---- --------------- As f Oct)ber 31 195amp As of Oct0ber 31 1955 Inve sUn8nt Investment IBpreciaticn
Line Account Le ss REffiainin~ Less ExpensE No Item Number Inve-stmcnt ReS8riTe Reserve Life Investment Reserve ~ Reserve Rate Yeqr
(T) T2) 0) (Ii) (5) (6) (7) (8) (9) (10)
Ll~ND
1 Other LAnd 503 ~ 1925510 $ Ci 1925510 ~ 1925510 $ 1925510
EQUIP1A~NT ON UNIT DEPRECIATION 2 itutoIrol1eyPCC 5))3338 $16392563 $ 9323673 $ 7068890 Various $16392563 ~10391985 $ 6000578 $1068312
BUILDJNGS 3 General Office-~ 522 $ 916255 $ 563016 ~ 353239 1917 Yrs$ 916255 $ 581446 $ 334809 $ 18430 4 Shops Grgs Admin 523 amp524 2733772 1013500 1720272 2320 Yrs 2733772 1087633 1646139 74133 5 Subtotal (Lines 3 amp4) 3650027 ~ 1576516 gt 2073511 igt 3650027 11669079 ~ 1980948) 92563
~ PROPERTY ON GROUP DEPRECIATION Overheaas
6 Engineering 501) 7 Organizqtion 5~6) tt 1563178 ~ 1563178 8 Interest 547) 9 Grlding 504)
10 Righ ts of Vgy 502 117922 117922 11 All Other 505-5h5 15 651 31 7 15 771 31 7 ~---7-=-~-- lr-r-----=~ -x---r---~ 12 Subtotal (Lines 6 to 11) )17332417 $11343350 ~ 5989067 1117 Yramp$17452417 ~11833307 ~ 5619110 ~ 495957
13 Totql(Lines 125 amp 12) ~39300517 822243539 ~17056978 839420517 023894371 015526146 01656832
14 RATE BASE Use ~1657OOO 15 Avcr~ge of ~1705697B qnd )15526146 016292000 16 Nwk in Progre s s 100000 Am)unts sh)wn include lpplic3ble -werheqds fr)ll 17 Haterills amp Supplies 735000 Accnunts 546 amp 541 18 Bond Deposit - City Frqnchisc 411000 cent Investment ~d depreciation reserve assumes all 19 Deposit for PL Insurqnce 150000 retirements for the lines to be cmiddotmvcrted 1--3
20 Use Vqlue - Fully Depreciated CJtches 1)2000 ~re m~de 3S ) f November 1 1954 qnd that the ~ full unnunt middotf r e tirements qre charged to the EJ
21 Tot-l R1te Blse ~17840000 reserve co
10S ANG3LSS TRANSIT LI~S
INVESTWNT DSPRCIATICN R~SsRVS AND EXPSNS~ FOR ~QUIPMLNT ON UNIT PLAN DEPR3CHTION
CASES I AND II APPLICATIONS NO 35601 AND 35728
As of Oct0ber 31 ffi4 As of October 31 1955 Line NoTotal Investment fnvestment Depre No Item of Life Investment Reserve Less Investment Reserve Less Expense
Units Reserve Reserve Rate Year (1) (2) (J) 4) - ---(~ CD) en -- --8)----- -(9j- (10)
For Case I 1 Motor Coach Groups
62006300 66-6900 hOh 12 Yrs$6421159 $4728599 ~1692560 ~ 6421159 $ 500 1011 ~1330lh8 $ 362412 2 5000 6hoo 75 10 II 1486387 77~175 711212 1h86387 92h851 561536 149676 3 Coaches on order 100 10 II 2285400 2285400 2285400 2265J~0 2058860 226540
II
I 5 Automobiles 51 V3r 99485 50916 h8569 99485 66540 329h5 15624 ~ 6 Trucks amp Service Cars 56 II 280584 250572 30012 280584 265813 lh771 15241 I 7 Misc( Fare BoxesMotors) 170193 115191 55002 170193 122271 47922 7080
h Trolley Coaches 110 15 2108h09 908560 1199849 2108h09 1Oh6116 1062293 137556
8 Total of Lines 1 to 7 ~12851617 ~~6829013 ~02260h ~12i351617 ~ 77h3lh2 $5108475 $ 914129
9 PCC Rail Cars 40 25 rsJ~ 1182671 ) 338627 gt 84h04h 1182671 ~ 382211 ~ 800460 $ h3581~
10 Case I - Line 8 + Line 9 $14034288 $7167640 $6866648 ~14034288 $ 8125353 t5908935 $ 957713
For Case II
11 6000 amp 6100 Series MC 150 FD ~ 2092963 $2070463 ~ 22500 $ 2092963 $ 2070463 $ 22500 12 Work orders on 6000s
amp 6100 s 3 Yrs 265312 61860 203452 265312 144007 121305 $ 82147 13 PCC Rail Cars 401717 1182671 362 337__ ~~~ 334 1182671 43473 ___748298 72036
14 Case II - Lines 8 + 11+ 12+ 13 ~16392563 9323673 n068890 $16392563 ttl0391985 ~6ooo578 ~1068312
t-3
125 other PCC Cars are in Group Depreciation Schedule G ~
Note579 motor coaches under Case I and 729 under Case II D
LOS AlJGELES TRANSIT LnlES TABLE 10 ESTIMATE]) RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD E1TDUTG OCTOBER 31 1955 CASE I - UNDER PRESENT OPERATIONS
12 Months Jan-June
Line No Item
Tab1e Ending or May 31 1954 Page Fe fer
(2)
Book Record
(])
1954 Annualized
Book Record
(4)
Case I-A Present
Fares (5 )
Case I-B Applicant l s
Proposed Fares
(6)
1 Vehicle Miles T2 34036066 33569520 32747000 32440000
Revenue 2 3 4 5
Passenger Revenue Unredeemed Tokens Other Revenue Total
T1 P7 P7
$24849150
122402 $25044557
$24517866
183810 $24 701676
$22940000 $25513000 20000
1821 000 182 000 $23147000 $25700000
6 7 8
Operating Expenses Rail Trolley Coach Motor Coach
T3 T3 T3
$ 8493744 1442232 8622956
$ 8575232 1451430 8 n6470
$ 8115900 $ 8047000 1366000 1355400 8144200 8088900
9 10 11 12 13
Sub-Total Depreciation Operating Taxes Wage Increase Total
T7 T6
18563932 2176608 1676358
$22416898
18743132 2185804 1760600
$22689536
17626800 17491300~ 2039000 2039000 1663800 1711700
439800 436500 $21769400 $21678500
14 Operating Income $ 2627659 $ 20J2JJQ $ 1377600 $ 4021500 15 Other Inc amp Inc Deduct 21258 (9328)
16 Net Inc Before IncTaxes 2635217 2002742 1377600 4021500 I 17 Income Taxes (St ampFe~) 1302758 1026568 647500 1 999 000 18 Net Operating Income 1332459 976174 730100 2022 500 i 19 Allowance T4 112216 80752 1541000 1541000 20 Net Income $ 1220243 $ 895422 $576100 $ 1868500
21 Rate Base T7 $17393000 $16727000 $16926000 $16926000 22 Rate of Return 70~ 535 340 1104
Operating Ratio 23 Before Income Taxes 9405 8435 24 After Inc Taxes ampAllow 9751 927)
Not Applicable
Computed by PUC Staff Allowance for interest and amortization of abandoned property (Red ]figure)
- 31 shy
IDS ill~GElES TRANSIT LINES ESTIMATE OF OPERATllIG EX-degENSES JuID TAXES
FOR 12 f10NTHS ENDING OCTOBER 31 1955 CASE II - KOTOR COACH Sl~STITUTION - j~PLrCATION NO 35728
Table or Line Page Hotor Trolley
~To Item Reference Streetcar Coach Coach Total
l 2 3
4
I S
rv 6VJ
I 7 8 9
10 ll 12 13 Ih 15 16
17
13
(ll- -- shy
Vehicle Miles Case I - Present Operation Case II - Proposed Operation
Increase in i1iles
Opere amp I1aint Expense - Case I
Changes in Expense Due to Conversion Way and Structures Substation Operation Rail Crossing Protection Vehicle Maintenance Servicing of Vehicles Tires - Hotor Coach Equipment Operators vJages Fuel Oil or Power 21 amp PD Insurance ~Jorkmen I s Compensation Insurance Training Drivers for Conversion
Total Increase in Expense
Oper amp i1aint Expense - Case II (Line h +
Operating Taxes - Case II
(Red Figure)
(Z)
T2 T2
T3
Line 16)
D)
11887000 6691000
(5196000)
~ 8115900
t (11500) (42200) (55000)
(270900) (76900)
(1232900) (219800)
(liT shy
18314000 23h67000 5153000
amp 314~900
~
355000 h3300 32500
1154300 153000
-C5) (6)
2546000 32747000 2949000 33107000
403000 360000
S 1366000 ~gt 17 626800
If (144500) 1 ~ v$ ltW (42 200 ) - bull (55 000 ) 7HmiddotVj
19200 103300 M~ f~
3000 ( 30600) A N- i
32500 94400 15800 14600 (52206)
(1l1100) ~ [ (1200) Glh
30000 ~i
p (258200)
$17368600 r3
c~ 1786600 cr ill
I- CD
I- i-
TABLE 12
LOS ANGELES TRANSIT LINES ESTIMATED RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD ENDING OCTOBER 11 1955 CASE II - MOTOR COACH SUBSTITUTION - APPLICATION NO 15728
Table Case II-A Case II-B Line Item Refer- Present Proposed
Nos i FSles Faresect~nce
( 1) (2) (3) ( 4)
1 Vehicles Miles T 2 33107000 32817000
2 Operating Revenue T 10 $23147000 $25700000
O~erating E~ense
3 Operating and Maintenance Tll $17368600 $17234900 4 Depreciation T 8 1657000 1657000 5 Operating Taxes Tll 1786000 1837800 6 Wage Increase 434ZQQ 431 lt)00
Total $21246300 $211612007
8 Operating Income $ 1900700 $ 4538800 Other Inc amp Inc Deductions it 119
10 Net Income Before Income Taxes $ 1900700 $ 4538800 11 Income Taxes (State amp Federal) 214 200 2262 400 12 Net Operating Income $ 985800 $ 2275400 13 Allowance T 4 ~ 2090QO ~ 20200Q 14 Net Income $ 776800 $ 2066400
15 Rate Base T 8 $17840000 $17840000 16 Rate of Return 435 1158
012erating Ratio 17 Before Income Taxes 9179 8234 18 After Income Taxes amp Allowance 9664 9196
Not Appli cable
Allowance for interest and amortization related to streetcar abandonment of the past and for abandonmcnts proposed in Application No 35728
-33shy
LOS ANGELES TRANSIT Ln~S ESTH1ATE OF HILES TO i3LJ OERATEJJ FOR THE TlJ7IVE HONTHS-ENDING OCTOBER 31 1 q55
A UNDJilR PRESENT OPERATIONS B WITH HOTOR COACH SlfilSTITUTION AS PROPOSED IN APPLICATION NO 35n8
CASE I - PRESENT OPERlTI03S Present Fares Propose(l Fares
Estimatet Estimated Estimated Hiloago Estimated Est T)imirDl l4i Recluc-Estimatea Miles Miles (a) Decrease In Traffic Roduction Mileage of Traffiction Below Proposed
Item As Shown In Miles of the Decline Duo TrafficPresent FaresBelow TrafCol6 Due to Fares PDC Staff Dacrease9-15-54 to Docline (2) x At PrescntDiminution Col 6 x
________ (3) x (4) (100 - Col 5gt Fares (7) x (3) (100 - ColFJdlibLLJamp~Passengers ~-55 8) (1) (2) (3) (4) (5) (6) (7) (8) (9)
streetcar 12041861 30 43 L29 11587000 39 117 11748000
Trolley Coach 2546000 92573633 25f~ 43 1 075~b 3 0 975 2521000
Motor Coach (b) ]8li-~4 849 20 4 3~ 86 10 18106000 39 78 18163000bull I~
f-- ---J Total (b) 33080343 32739000 32432000
CASE II - OFSRATIONS PROPOSED IN APPLICATION NO 15728 Present Fares Proposed Fares
Item Estimatefl 1JIiles(a) As SnownEstimate~- Miles Present FarosEstimate~ Milos Proposed ___-~___------I=n~PDCStaff Exhibit No Col lOx (100 - Col 5) Faros Col llx (100-CQl~
(1) (10) (11) (12)
Stroetcar 6778211 6691000 6 61300O
Trolley Coach 2981376 2949000 2920000
Motor Coach (b) 236629)) 23459 1000 2276 7000
~Total (b) 33422542 33099000 32809000 ill r trl
(a) Based on th~ l ovel of traffic of Septombor 1954 I)
(b) To the estirl8ted milos shown here should bo a~dod 7500 Charter Miles
t-3
- - - - - - -
LOS kJGELES TRANSIT LINES Table 3 Sheet 1 of 3ESTIMATE OF RAIL OPERiTINGifiPENSES
CASE I - UNDER PRESENT OPERATIONS
Company Estfor 12 Mo~ Records Ending
Acct Jan-May 1954 103155 No I t e m Annualized Present Fares
Car Miles Way and Structures
1-24 ill Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 Superintendence 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conducting Transportation 63 Superintendence 64 Conductor Motormen etc 66 Car Service Emp 67 Miscel1 Car Service Exp 70 Car House Empa
Var other Cond Transp Accounts Total
Traffic 79 Superintendence 80 AdvertiSing
Total General
83 Gen Off - Sal and Exp 84 Gen Off Emp - Sal amp Exp 85 Gen Off a SuppJies amp Exps 88 Pensions
(93 Insurance PL amp PO (93 Insurance Workmens Comp (93 Insurance Other
Var Other General Accounts Total
Total Rail Operating Expense
Cents per Car Mile
12573226
$ 722615
$ 79078 759547 146522
$ 985141
$ 18190 174643 482945
23033 $ 698 811
$ 438900 3257666
104525 76608
351696 57240
$ 4286635
$ 6346 18353
$ 24699
$ 83645 123281
35570 4818S8 765019 46840 13664
287090 $ 1836967
$ 8554874
68004cent
ll887OOO
$ 722600
$ 79100 671200 147900
$ 898200
$) 18200 174600 547200
28900 $ 768900
$ 438900 2890900
104500 72200
351700 59600
$ 3917800
$ 6300 18400
$ 24700
$ 78900 123300 35600
456600 750400 ~ 43100 13700
282tl00 $ 1783700
$ 8115900
6827cent
Co
)
-
(1
I
flI
Car Miles Oper middot Exp Case I-B - Applicants Proposed Fares 11748000 $ 8047000 ~ Expenses Variable with Car Miles Wage rates used herein are those whieh
Ac30amp33 565 cent~ile prevailed immediately prior to 6154 59 460 The cost of the wage increase which 64 2432 tecomes fully effective on 12154 is 70 148 50 of total shown separately in Results of
Total 3605 centmile Operation table ~ See Table 5 for amounts under Proposed Fare
- 18 shy
- - - - - ------
LCB ANGELES TRANSIT LINFS Table 3 ESTIMATE OF TROLLEY COACH OPERATING EXPENSES Sheet 2 of 3
CASE I - UNDER PRESENT OPERATIONS
Acct No I t e m
Coach Miles Way and Structures
1-24 All Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 --superintendenoe 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conduoting Transportation 63 Superintendence 64 Operators Wages 70 Car House Employees
Var Other Condo Transp Accounts Total
Traffic 79 Superintendence 80 Advertising
Total General
83 Gen Off - Sal amp Exp 84 85
Gen Off Emp - Sal amp Exp Gen Off Supplies amp Exps
88 Pensions (93 Insurance PL amp PD (93 Insurance Worlanen s Comp (93 Insurance Other
Var Other General Accounts Total
Total Operating Expense
Cents per Mile
Case I-B - Applicants Proposed Fares
Expenses Variable with Coach Miles Acs 30amp33 477centmile
59 3038 64 2342 70 075 50 of total
Total 3232centjmi1e
~ See Table 5 for Amount Under Proposed Fares
Company Estfor 12 ME Recorda Ending Jan-May 1954 103155 I ~
Annualized Present Fares ~
2629188 2546000
$ 26518 $ 27000
$ 32628 $ 32600 125469 121400
11012 9600 $ 169109 $ 163600
$ 3770 $ 3800 35770 35BOO 75017 86000 1
8417 9000 $ 122974 $ 134600
$ 99161 $ 99200 612513 596300
38273 38300 21802 21500
$ 771749 $ 755300
$ 979 $ 1000 3588 3600
$ 4567 $ 4600
$ 15134 $ 12100 22990 23000 5669 5700
87614 83000 165089 97300 I
8516 8000 ~ 3054 3100
49076 48700 $ 357142 $ 280900 6
$1452059 $1366000
5523cent 5365cent
Coach Miles Oper Exp 2521000 $1355400 -- -0
Wage rates used herein are those which prevailed immedshyiately prior to 6154 The cost of the wage i~crease which becomes fully effective on 12154 is shown separately in Results of Operations table
- 19 shy
LOS ANGELES TRANS1 LINS TABLE 3 ESTIMATE OF MOTOR COAOH OPERATING EXPENSE Sheet 3 of 3
CASE I - UNDER PRESENT OPERATIONS
Company Estimate for Records 12 months
Jan - May Ending Acct 1954 103155 No I t e m Annualized Present Fares ~
Coach Miles 1832~158 18314000 Equipment Maintenance amp Gara~ Expense
4110 Supv - Shop and Gar $ 142788 $ 142800 4140-2 Repairs to Rev E~uipment 1097376 848800 4150 Servicing Rev Equipment 308373 307700 4160 Tires - Rev Equipment 123305 125200 Var Other Maint Accounts 151444 147300
Total $1823286 $1571800 Transportation Expense
4210 Supervision of Transp $ 487284 $ 487300 4220 Drivers I vrages 3767184 37589001= 3) bull
4230 522175 523800 )0
4240 Oil for Revenue Equipment 17256 19500 JOJ
Var Other Trans Exp Accounts 60153 58200 Total $4854052 $4847700
Traffic and Advertising 4470 Advertising $ 21593 $ 21600 Var Other Traffic Accounts 7)329 76500
Total $ 94922 $ 98100 Insurance
4510 Salaries and Expenses $ 18818 $ 18800 4520 Insurance PL amp PD 786322 542OOOp 4541 Insurance Workmens Compo 51458 50100p Var Other Insurance Exp 11357 11700 - shy
Fuel for Revenue Equipment _
J Total $ 867955 $ 622600 Administrative and General
4611-2 Gen Officers - Sal amp Exps $ 90806 $ 73500 4613-6 Gen Off Employees - Sal ampExp 138043 137000 4620 Law Expense 12910 16000 4630 Gen Office Supplies amp Exp 51689 44800 4640 Communication Expense 41143 45500 4652 Employees vlelfare 525737 498200 4655 Purchasing amp Stores 120790 120800 Var All Oth~r Adm amp Gen Exp 70090 53900
Total $1051208 $ 989700 Rents 15000 15000
Total Motor Coach Expense $8706423 $8144900 Cents per Mile 47middot50cent 4447cent
Coach Miles Ouer Exp Case I-B - Applicants Proposed Fares 18171 000 $8088900 -----shy
Expennes Variable with Milos Wage rates used herein are those which Ac 4140 463centmile prevailed immediately prior to 6154
4150 084 50 of total The cost of tho wage increase toJhich beshy4160 068 comes fully effective on 12154 is clnwn 4220 2052 separately in Results of Operation table 4230 286 4240 011
Total 2964centmile cent See Table 5 for Amount Under Proposed Fares 20 shy
TABLE 4
IDS ANGELES TRANSIT LUIES AMORTIZATION AND INTEREST ALLOWANCE
PAVING AND REMOVAL OBLIGATIONS - CASES I AND II APPLICATIONS NOS 35601 AND ~5728
A - Obligations from Abandonments Prior to 1954
Yearly Amortization $132000 Interest 16000
Total $148000
B - Obligations from Abandonment of Portions of IV and Rlt Lines (July 25 1954)
Yearly Amortization $ 4000 Interest 2000
Total $ 6000
C - Obligations from Abandonments as Proposed in Application No 35728 (November 1 154)
Yearly Amortization $ 35000 Interest 2JOOO
Total $ 55000
For Case I - Items A + B $154000
For Case II- Items A + B + C $209000
Includes cost of removal of electrical distribution system ($123700) and of substation equipment ($21600)
- 21 shy
LOS ANGELES TRAl~SIT Lli~S
RJBLIC LIABILITY PROPERTY DAl1AGE AND 1l0RIJftElI i S CCMFEi-TSATION EXPENSE illLATED TO SOUln~EbTT MILES Aim R3W-RLS PAS~lWEFS
CASE I - UNDER PRHSENT OPSHATIONS 1947 - 1950 Inc Jan-May Est FOr
Line Ito m 1951 1952 1953 195412 MosEnd No Total Av per Yr Annualizod 10 31 55
1 Lossos paid (n) $ 3890 $ 972 $ 1082 $ 902 $ 580 $ 262 2 Losses ostimato~ (a) 39 10 52 280 634 881 3 Reinsurance costs (a) 282 71 62 69 ____81 65 4 Total Losses_amp Insurance (a) $ 4211 $ 1053 $ 1196 $ 1251 $ 1295 $ 1208
5 Expenses paid (a) $ 1536 $ 384 $ 353 $ 385 $ 242 $ 170 6 Expenses estimated (a) 7 2 _ __ 11) 61 182 24S 7 Total expenses (a) $ 1543 $ middot 386 ~ 363 $ 446 $ 424 $415 8 Total LossesReiils amp Exp (a) $ 5754 $ 1439 1559 $ 1697 1719 $ 1622
(Lina 4- + 7) I 9 Number of claims filed 59991 14998 11588 11104 10246 9228
N
N 10 Vehiclo miles (millions) 153 4 384 356 351 346 336 I
11 Revenue Passon~crs (millions) 10093 2523 1924 1746 1661 1531
12 Loss Per 11i1 lliilos (4 ~ 10) ~27451 $27451 ~33596 $35~641 $37428 $35952 $35000
13 Loss Por i-Hllion Pass (4 11) $ 4172 $ 4172 ~ 6216 ) 7165 ~ 7797 $ 7890 $ 7500 14 Expensos por claim (7 f 9) h
ltfgt 2572 Y 25middot72 i) 3133 $ 4017 4138 $ 4497 $ 45 15 Claims per million miles (9 10) 391 391 326 316 296 275 280
16 Claims per million pass (9 11) 59 59 60 64 62 60 60
Ul p- CD (I)
(a) Thousand of dollars amp8
t-G o ~ H
J N
TABLE 5 LOS ANGELES TRANSIT LUTES Sheet 2 0 f 2
ESTIMATE OF PUBLIC LIABILITY AND PROPERTY DAMAGE AND WOBKMElJ 1 S COMPENSATION EXPENSES
FOR 12-MONTH PERIOD ENDING OCTOBER 31 1955 UNDER CASE I-A AND CASE I-B - PRESENT OPERATIONS ~lITH PRESENT amp PROPOSED FARES
Line 110
Cost Factors 1 Claims per million revenue passengers bull bull bull 2 raquo raquo vehicle miles bull bull bull 3 Expense per claim bull bull 4 Losses per million revenue passengers
raquo raquo vehicle miles bull bull bull bull 5 bull bull
60 280 45
7500 35000
Estimated Expense For PL and PD and Workmens Compensation Insurance
Case I-A Present Fares
6 Number of rovenue passengers (millions) 1395
7 Number of vehicle miles(millions) 3275
A - Basod on Number of Passengers 8 Losses 9 Expense
10 Total
B - Based 11 Losses 12 Expense 13 Total
$1046200 376700
$1422900
on Number of Vehicle Hiles $1146200
412700 $1558900
14 Average of A and B (PL amp PD and Workmen 6 Compo - $1490900
15 Workmens Compensation Insurance 101~200(a) 16 PL and PD Insurance 1389700
Distribution of Total PL amp PD Percent
17 Rail Operations 541 $ 750400 18 Trolloy Coach Operations 7 97300 19 Motor Coach Operations ~ -542000 20 Total 100 $1389700
Case I-B Proposed Fares
1341 3244
$1005700 362100
$1367800
$1135400 408700
$1544100
$1456000 100200 (b)
1355800
$ 732~100 94900
528800 $1355800
(a) Rail=$43lOO Trolley Coach=$8000 and Motor Coach=$50100
(b) Rail=$42 600_ Trolley Coach=$7 ~ 900 and Hotor Coach=$49 (00 _ --- I
- 23 shy
lA3LE 6
LOS ANGELES TRANSIT LINES ESTIHATE 041 OPERAT1NG TAXES
FOR 12 MONTHS ENDING OCTOBER 31 1955 CASE I - PRESENT OPERATIONS
APPLICATION NO 35601
Book Record Case I-A Case I-B L1ne I t e m 12 Months Present Proposed
No End 5-31~ Fares Fares(~ ) -=-----=-(3)~--=--~r(4~)~-(1)
1 City Franchise Taxes $ 473687 $ 434600 ~ 481900
2 Property Taxes-Ad Valorem 457963 435000 435000
3 Fuel and Oil Taxes 360580 337700 335100
4 Motor Vehicle License Taxes 136984 Ib8 900 168900
5 Transportation License 15600 21~00 (3 B of EHlshy
6 payroll Tuxes 265000 262500
Other raxes 7000 70007
Total ~ip 1 603 800
Net after weight fee credit
-24shy
CHART 3
rr LOS AtJGELES
TRANSIT LINES
STREET CAR AN 0 TROLLEY COAe H
EQUIPMENT AS OF
H4 OR K4 OPEN END WOODEN SEATS H3 CLOSED ENDLEATHER S EATS SEPTEMB E R f 1954
JIshy
OLDER T YPE OF PCC CAR NE WER TYPE OF PCC CAR
8000 SERIES TROLLEY COACH 9000 SERIES TROLLEY COACH 9100 S ERI ES TROLLEY COACH
STREET CARS TROLLEY COACHES
ALL H3 H4 K4 PCC OTHER TOTAL 8000 9000
SEATS 48 48 48 12 5-61 SEATS VARIOU 44 4540-28 SEATS
EQU IPME NT ASSIGNMENTS UNDER PRESENT CoMPANY BASIS EFFECTIVE SEPTEMBER 12
9100
46 TOTAL
SCHEDULED SPARES
TOTAL ASSIGNED UNASSIGNED
TOTAL OWNED
SCHEDULED
SPARES
TOTAL ASSIGNED UNASSIGNED
TOTAL OWNE D
354 22 57 5
411 2 37 101 13
60 165 37 512 40 EQUIP MENT RE QUIREMENTS PRESENT SERVICE FOR RATE YEAR)
354 36
390 122 512
34 6
40 30
81 16
81 9
90 20
110 EQUIPMENT REQUIREMENTS WITH SERVICE AS P ROPOSED IN
ApPLICATIO N 28 (FOR RATE YEAR
SCHEDULED 20431 23 150 93 4 2 21SPARES 1015
TOTAL ASSIGNED 165 22525 10335 UNASSIGNED - 7
TOTAL RETAINED 225 11025 16535 To BE RETIRED 0190 2 7 37 TOTAL Now OWNED 60 110512 215 165 3735
-lE- ESTI MA TED BY P U C STAFF E
2 r
C
-
6600 SER IE S 6700 AND 6900 SER IE S 6800 SER I ES
L I NE 6200 No TE~ 5000 6000 yf 6 100 yf 6300 6400 6600
MACK G M e G M e G M e G MC G M C I i~IA K( amp UODEl NUMBER C-45 -CT TD-4502 rn -4505 TO- 4506 TDH-5103 TOH shy 36 1 2 YE AR BUilT l~ 1940 1941 1945 1951 1947 3 DATE I N SERV I CE 7 -40 1-42 7 - 45 7 - 51 7 -47 4 NUMBER O F CoACHES 50 55 95 200 25 57 5 PU RCHAS ED NEW OR US ED N N
6 S EATI NG CAPAC IT Y 45 45 45 51 36 45 40
~ LE NG TH - OUT S I DE 3~ -0 3~ - 0 37 -0 3~ -6 30 - 6 3~ - 0 3~ -0 WI DTH - OU T S IDE -Oil _-ttl 8 -0 -611 8 - 2 _OM I - 0
9 HE I CHT - OU TS I DE 9 -6 9 shy 5t 9 -6 9 t 4t ll 9 - 2 9 0 9 -6 10 A I SL( HEADROOM 76 77 78 78 76shy 8 76
11 A ISLE WI DTH 19 2 1 26 22 22 20 12 TY PE O f DR I V( HYD HYD HYD HYO HYD HYD
13 BRA KE HORSE POWER amp FUE L 165io) 165( 0) 165(0) 110(0) 165(0) 165(0) 14 Bo DY f RAME MA TE R I AL AL AL AL AL AL NOT G I VE N 15 Bo DY PANEL ~1ATE R I AL AL AL AL AL AL NO T GI VEN
16 ROO F MATER I AL AL AL amp ST AL AL amp ST AL amp ST NO T G I VEN
~ ~ - AT DCC CMBER 3 1 1953shy14 26 15298AV ER AG E INVE ST PER CoACH $ ~ 21962 $ 13 992 17 60 14 209
19 INVESHIENT 1 354 9~ 3 059 506 549 044 7 97 5~ 2 lt164 650 99 466 10 000 509 20 RE SE RV E 1340 6 2 462 923 135951 503 6 1369 1 02 90 896 7 147 497
21 REM AIN ING VALUE (I NCL SALV) 14 250 596 583 413 093 293 869 1 095 548 8 570 2853 012 22 REMA I N I NG LIF E lOYR BAS I S 22 MO 90 MO 43 MO 52 MO 9 MO
23 REMAIN I NG L IFE 12YR BAS I 46 MO 90 MO 67 MO 76 MO 33 MO
yf THC COS T OF REBU IL DING 102 CoACHES OF THC 6000 AND 6 100 SE RIE S NOT I NCLUDE D HEREI N (SCE NEXT PACE)
1941 AN D 1942 MA T ER I AL S WE RE SuBJ ECT TO PR I OR I T ( S AND THEREFOR E STEEL WAS USE D IN PLACE OF
ALUMI NUM FO R BO DY FR AMES PAN EL S AND ROO FS I N SO ME COACHE S O F TH E TD- 4505 SERI ES
G - GASOl I NC D - D I CSE L AL - ALUM I NU M ST - Srr CL HYD - HYDRAUL I C
lt~i
~~4
CHART 4
LOS ANGELES TRANSIT LINES
MOTOR COACH EQUIPMENT
AS OF
SEPTEMB ER 1954IS_T 6000 SER I ES
6200 AND 6300 SER I ES
6
5 CHART
1~A~PLE OF THE DAMAGE TO BODY PANE LS M D RI VET ED JOINTS
2 - COACH WITH ALL BODY PANE LS Il l NDO V FR M1ES M~) SOIIE BO DY BRAC IN G REMOVED
l
LOS ANGELES TRANSIT LINES
PROGRAM OF
REBUILDING MOTOR COACHES
OF THE
6000 AND 6100 SERlES
j - PAR TI AL Re STO RA TI ON SODY PA NE LS Ix I I I )SI I ELD FRA Il E REPLA CED AFT ER kt C~ D I T I ON 116
I+ - AL L BO DY PANE LS AND S I DE W I~ DO J FRAhi ES RE shyPLACED AND ~ ESTO~ED
5 -INT ER IOR SHOW IN G CO MPLET E RE MOVAL OF SEATS AND OTHE R AC COUTERM ENTS REPLACED OR RECOND ITIO NED
6 -COMP LETE D I NTER l OR - t EIJ FLOO R
COV ER IN G WIT H S EAT CUSH IONS ETC
7 - COMP LET ED EXTER l OR COACH REPAI NTED AND READY FOR SERV I CE
I N 195 1 Los AN GELES T RANS IT LINES I NAUGURA TED A PROGRAM OF REBU IL D I NG GMC CoACHES OF THE
6 0 00 (BU ILT IN 1940) AND 61 00 ( BU ILT IN 1941) SER IE S A s OF JU LY 1954 62 COACH ES HAD BEE N
REBUILT WITH 40 ST ILL ON WORK ORDERS BUT IN PROCeSS THE CURRENT EST IM AT ED CO ST OF THIS
P ROGRMil I S AN AV ERAGE OF ~3500 PER COACH THE P U C S TAF F EST IMA TES THE LIF E OF TH ES E
COACH ES TO BE AN ADDIT IO NAL THR EE YEAR S FRO M DATE OF COMP LETI ON COS TS OF REB UILDING AR E
SHOWN I N THE RATE BAS E RE LATIV E TO THE APPROP RI ATE WORK ORDER AN D THEREFORE ARE NOT INCi UDEu
IN THE I NV ESH IENT FOR 60)0 AND 6100 S ERI ES COACH ES SHOWN ON CHAR T No 4
LOS ANGELES TRANSIT LINES SSTIMATED RATE BASE AND DEPRECHTION EXPENSE
12 I~ONTHS ENDING OCTOBSR 31 1955 CISE I - VnTH PRY-SENT METHOD OF SERTICE - APPLICATION NO 35601
Gum October 31 1954 As of October 31 1955
Line
No Item (1)
Iccnunt Number Invcstment
(2)
(3) Reserve
(4)
Inve stmen t Less
Reserve (5)
Remaining
Life (6)
In
Inve s tIDen t Less
vestment Reserve Reserve (7) (8) (9)
Depreciation Expense RAte YeAr
(10) LAND
1 2
Rights of VVAY Other Lmd
502 503
S 426974 1931112
$ 426974 1931112
$ middot 426974 1931112
$ 426974 $ 1931 112
EQUIP~NT ONl~ITDEPRECI~TION
3 Auto Tr011ey pcc53033Jf~034288 $ 7167640 $ 6866648 V3rious $14034288 $ 8125353 $ 5908935 $ 957713
PROPERTY ON GROUP DEPRECIATIJN OverheAQs
4 Engineering 501 $ 44651 $ 44651 OrgAnizAtiorfshy 546 601749 601749~ 5
6 Interest 547 middot 916884 916884 7 Gnding 504 1117084 1118084 8 All Other 505-545 27021634 4 Base 27141634 _____ _________ 9 Suttotal
(Lines 4 to 8) $29702002 $22441215 ~ 7260787 $29823002 ~23516286 $ 6306716 $1081071_
10 Tr)W(Lines 123 amp 9) ~46094376 $29608855 ~16485521 $46215376 $]1641639 $14573737 $2038784
11 RATE BASE Use - $2039000 12 Avenge 0f $16485521amp ~1+573 737 $15530000 13 Work in Progress 100000 14 M1terials amp Supplies 735000 15 Bond Deposit - City Fnnchise 411000 16 Deposit for PL Insurance 150000
17 Totil RAte BAse $16926000 8 t ~
-It- rhjor PArt of Acct 546 is Supervisinn --J
-----
LOS ANGELES TRI-NSIT LINES ESTThiIiTED Ri1TE BASE AND DEPRECllTION EXPENSE
12 NiONTHS ENDING OCTOBER 31 1955 CIlSE II - SSUMING MOTOR COACH SUBSTITUTION ON CERTHN RAIL LINES AS PROPOSED m iiPPLICilTION NO 35728
---- --------------- As f Oct)ber 31 195amp As of Oct0ber 31 1955 Inve sUn8nt Investment IBpreciaticn
Line Account Le ss REffiainin~ Less ExpensE No Item Number Inve-stmcnt ReS8riTe Reserve Life Investment Reserve ~ Reserve Rate Yeqr
(T) T2) 0) (Ii) (5) (6) (7) (8) (9) (10)
Ll~ND
1 Other LAnd 503 ~ 1925510 $ Ci 1925510 ~ 1925510 $ 1925510
EQUIP1A~NT ON UNIT DEPRECIATION 2 itutoIrol1eyPCC 5))3338 $16392563 $ 9323673 $ 7068890 Various $16392563 ~10391985 $ 6000578 $1068312
BUILDJNGS 3 General Office-~ 522 $ 916255 $ 563016 ~ 353239 1917 Yrs$ 916255 $ 581446 $ 334809 $ 18430 4 Shops Grgs Admin 523 amp524 2733772 1013500 1720272 2320 Yrs 2733772 1087633 1646139 74133 5 Subtotal (Lines 3 amp4) 3650027 ~ 1576516 gt 2073511 igt 3650027 11669079 ~ 1980948) 92563
~ PROPERTY ON GROUP DEPRECIATION Overheaas
6 Engineering 501) 7 Organizqtion 5~6) tt 1563178 ~ 1563178 8 Interest 547) 9 Grlding 504)
10 Righ ts of Vgy 502 117922 117922 11 All Other 505-5h5 15 651 31 7 15 771 31 7 ~---7-=-~-- lr-r-----=~ -x---r---~ 12 Subtotal (Lines 6 to 11) )17332417 $11343350 ~ 5989067 1117 Yramp$17452417 ~11833307 ~ 5619110 ~ 495957
13 Totql(Lines 125 amp 12) ~39300517 822243539 ~17056978 839420517 023894371 015526146 01656832
14 RATE BASE Use ~1657OOO 15 Avcr~ge of ~1705697B qnd )15526146 016292000 16 Nwk in Progre s s 100000 Am)unts sh)wn include lpplic3ble -werheqds fr)ll 17 Haterills amp Supplies 735000 Accnunts 546 amp 541 18 Bond Deposit - City Frqnchisc 411000 cent Investment ~d depreciation reserve assumes all 19 Deposit for PL Insurqnce 150000 retirements for the lines to be cmiddotmvcrted 1--3
20 Use Vqlue - Fully Depreciated CJtches 1)2000 ~re m~de 3S ) f November 1 1954 qnd that the ~ full unnunt middotf r e tirements qre charged to the EJ
21 Tot-l R1te Blse ~17840000 reserve co
10S ANG3LSS TRANSIT LI~S
INVESTWNT DSPRCIATICN R~SsRVS AND EXPSNS~ FOR ~QUIPMLNT ON UNIT PLAN DEPR3CHTION
CASES I AND II APPLICATIONS NO 35601 AND 35728
As of Oct0ber 31 ffi4 As of October 31 1955 Line NoTotal Investment fnvestment Depre No Item of Life Investment Reserve Less Investment Reserve Less Expense
Units Reserve Reserve Rate Year (1) (2) (J) 4) - ---(~ CD) en -- --8)----- -(9j- (10)
For Case I 1 Motor Coach Groups
62006300 66-6900 hOh 12 Yrs$6421159 $4728599 ~1692560 ~ 6421159 $ 500 1011 ~1330lh8 $ 362412 2 5000 6hoo 75 10 II 1486387 77~175 711212 1h86387 92h851 561536 149676 3 Coaches on order 100 10 II 2285400 2285400 2285400 2265J~0 2058860 226540
II
I 5 Automobiles 51 V3r 99485 50916 h8569 99485 66540 329h5 15624 ~ 6 Trucks amp Service Cars 56 II 280584 250572 30012 280584 265813 lh771 15241 I 7 Misc( Fare BoxesMotors) 170193 115191 55002 170193 122271 47922 7080
h Trolley Coaches 110 15 2108h09 908560 1199849 2108h09 1Oh6116 1062293 137556
8 Total of Lines 1 to 7 ~12851617 ~~6829013 ~02260h ~12i351617 ~ 77h3lh2 $5108475 $ 914129
9 PCC Rail Cars 40 25 rsJ~ 1182671 ) 338627 gt 84h04h 1182671 ~ 382211 ~ 800460 $ h3581~
10 Case I - Line 8 + Line 9 $14034288 $7167640 $6866648 ~14034288 $ 8125353 t5908935 $ 957713
For Case II
11 6000 amp 6100 Series MC 150 FD ~ 2092963 $2070463 ~ 22500 $ 2092963 $ 2070463 $ 22500 12 Work orders on 6000s
amp 6100 s 3 Yrs 265312 61860 203452 265312 144007 121305 $ 82147 13 PCC Rail Cars 401717 1182671 362 337__ ~~~ 334 1182671 43473 ___748298 72036
14 Case II - Lines 8 + 11+ 12+ 13 ~16392563 9323673 n068890 $16392563 ttl0391985 ~6ooo578 ~1068312
t-3
125 other PCC Cars are in Group Depreciation Schedule G ~
Note579 motor coaches under Case I and 729 under Case II D
LOS AlJGELES TRANSIT LnlES TABLE 10 ESTIMATE]) RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD E1TDUTG OCTOBER 31 1955 CASE I - UNDER PRESENT OPERATIONS
12 Months Jan-June
Line No Item
Tab1e Ending or May 31 1954 Page Fe fer
(2)
Book Record
(])
1954 Annualized
Book Record
(4)
Case I-A Present
Fares (5 )
Case I-B Applicant l s
Proposed Fares
(6)
1 Vehicle Miles T2 34036066 33569520 32747000 32440000
Revenue 2 3 4 5
Passenger Revenue Unredeemed Tokens Other Revenue Total
T1 P7 P7
$24849150
122402 $25044557
$24517866
183810 $24 701676
$22940000 $25513000 20000
1821 000 182 000 $23147000 $25700000
6 7 8
Operating Expenses Rail Trolley Coach Motor Coach
T3 T3 T3
$ 8493744 1442232 8622956
$ 8575232 1451430 8 n6470
$ 8115900 $ 8047000 1366000 1355400 8144200 8088900
9 10 11 12 13
Sub-Total Depreciation Operating Taxes Wage Increase Total
T7 T6
18563932 2176608 1676358
$22416898
18743132 2185804 1760600
$22689536
17626800 17491300~ 2039000 2039000 1663800 1711700
439800 436500 $21769400 $21678500
14 Operating Income $ 2627659 $ 20J2JJQ $ 1377600 $ 4021500 15 Other Inc amp Inc Deduct 21258 (9328)
16 Net Inc Before IncTaxes 2635217 2002742 1377600 4021500 I 17 Income Taxes (St ampFe~) 1302758 1026568 647500 1 999 000 18 Net Operating Income 1332459 976174 730100 2022 500 i 19 Allowance T4 112216 80752 1541000 1541000 20 Net Income $ 1220243 $ 895422 $576100 $ 1868500
21 Rate Base T7 $17393000 $16727000 $16926000 $16926000 22 Rate of Return 70~ 535 340 1104
Operating Ratio 23 Before Income Taxes 9405 8435 24 After Inc Taxes ampAllow 9751 927)
Not Applicable
Computed by PUC Staff Allowance for interest and amortization of abandoned property (Red ]figure)
- 31 shy
IDS ill~GElES TRANSIT LINES ESTIMATE OF OPERATllIG EX-degENSES JuID TAXES
FOR 12 f10NTHS ENDING OCTOBER 31 1955 CASE II - KOTOR COACH Sl~STITUTION - j~PLrCATION NO 35728
Table or Line Page Hotor Trolley
~To Item Reference Streetcar Coach Coach Total
l 2 3
4
I S
rv 6VJ
I 7 8 9
10 ll 12 13 Ih 15 16
17
13
(ll- -- shy
Vehicle Miles Case I - Present Operation Case II - Proposed Operation
Increase in i1iles
Opere amp I1aint Expense - Case I
Changes in Expense Due to Conversion Way and Structures Substation Operation Rail Crossing Protection Vehicle Maintenance Servicing of Vehicles Tires - Hotor Coach Equipment Operators vJages Fuel Oil or Power 21 amp PD Insurance ~Jorkmen I s Compensation Insurance Training Drivers for Conversion
Total Increase in Expense
Oper amp i1aint Expense - Case II (Line h +
Operating Taxes - Case II
(Red Figure)
(Z)
T2 T2
T3
Line 16)
D)
11887000 6691000
(5196000)
~ 8115900
t (11500) (42200) (55000)
(270900) (76900)
(1232900) (219800)
(liT shy
18314000 23h67000 5153000
amp 314~900
~
355000 h3300 32500
1154300 153000
-C5) (6)
2546000 32747000 2949000 33107000
403000 360000
S 1366000 ~gt 17 626800
If (144500) 1 ~ v$ ltW (42 200 ) - bull (55 000 ) 7HmiddotVj
19200 103300 M~ f~
3000 ( 30600) A N- i
32500 94400 15800 14600 (52206)
(1l1100) ~ [ (1200) Glh
30000 ~i
p (258200)
$17368600 r3
c~ 1786600 cr ill
I- CD
I- i-
TABLE 12
LOS ANGELES TRANSIT LINES ESTIMATED RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD ENDING OCTOBER 11 1955 CASE II - MOTOR COACH SUBSTITUTION - APPLICATION NO 15728
Table Case II-A Case II-B Line Item Refer- Present Proposed
Nos i FSles Faresect~nce
( 1) (2) (3) ( 4)
1 Vehicles Miles T 2 33107000 32817000
2 Operating Revenue T 10 $23147000 $25700000
O~erating E~ense
3 Operating and Maintenance Tll $17368600 $17234900 4 Depreciation T 8 1657000 1657000 5 Operating Taxes Tll 1786000 1837800 6 Wage Increase 434ZQQ 431 lt)00
Total $21246300 $211612007
8 Operating Income $ 1900700 $ 4538800 Other Inc amp Inc Deductions it 119
10 Net Income Before Income Taxes $ 1900700 $ 4538800 11 Income Taxes (State amp Federal) 214 200 2262 400 12 Net Operating Income $ 985800 $ 2275400 13 Allowance T 4 ~ 2090QO ~ 20200Q 14 Net Income $ 776800 $ 2066400
15 Rate Base T 8 $17840000 $17840000 16 Rate of Return 435 1158
012erating Ratio 17 Before Income Taxes 9179 8234 18 After Income Taxes amp Allowance 9664 9196
Not Appli cable
Allowance for interest and amortization related to streetcar abandonment of the past and for abandonmcnts proposed in Application No 35728
-33shy
LOS ANGELES TRANSIT Ln~S ESTH1ATE OF HILES TO i3LJ OERATEJJ FOR THE TlJ7IVE HONTHS-ENDING OCTOBER 31 1 q55
A UNDJilR PRESENT OPERATIONS B WITH HOTOR COACH SlfilSTITUTION AS PROPOSED IN APPLICATION NO 35n8
CASE I - PRESENT OPERlTI03S Present Fares Propose(l Fares
Estimatet Estimated Estimated Hiloago Estimated Est T)imirDl l4i Recluc-Estimatea Miles Miles (a) Decrease In Traffic Roduction Mileage of Traffiction Below Proposed
Item As Shown In Miles of the Decline Duo TrafficPresent FaresBelow TrafCol6 Due to Fares PDC Staff Dacrease9-15-54 to Docline (2) x At PrescntDiminution Col 6 x
________ (3) x (4) (100 - Col 5gt Fares (7) x (3) (100 - ColFJdlibLLJamp~Passengers ~-55 8) (1) (2) (3) (4) (5) (6) (7) (8) (9)
streetcar 12041861 30 43 L29 11587000 39 117 11748000
Trolley Coach 2546000 92573633 25f~ 43 1 075~b 3 0 975 2521000
Motor Coach (b) ]8li-~4 849 20 4 3~ 86 10 18106000 39 78 18163000bull I~
f-- ---J Total (b) 33080343 32739000 32432000
CASE II - OFSRATIONS PROPOSED IN APPLICATION NO 15728 Present Fares Proposed Fares
Item Estimatefl 1JIiles(a) As SnownEstimate~- Miles Present FarosEstimate~ Milos Proposed ___-~___------I=n~PDCStaff Exhibit No Col lOx (100 - Col 5) Faros Col llx (100-CQl~
(1) (10) (11) (12)
Stroetcar 6778211 6691000 6 61300O
Trolley Coach 2981376 2949000 2920000
Motor Coach (b) 236629)) 23459 1000 2276 7000
~Total (b) 33422542 33099000 32809000 ill r trl
(a) Based on th~ l ovel of traffic of Septombor 1954 I)
(b) To the estirl8ted milos shown here should bo a~dod 7500 Charter Miles
t-3
- - - - - - -
LOS kJGELES TRANSIT LINES Table 3 Sheet 1 of 3ESTIMATE OF RAIL OPERiTINGifiPENSES
CASE I - UNDER PRESENT OPERATIONS
Company Estfor 12 Mo~ Records Ending
Acct Jan-May 1954 103155 No I t e m Annualized Present Fares
Car Miles Way and Structures
1-24 ill Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 Superintendence 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conducting Transportation 63 Superintendence 64 Conductor Motormen etc 66 Car Service Emp 67 Miscel1 Car Service Exp 70 Car House Empa
Var other Cond Transp Accounts Total
Traffic 79 Superintendence 80 AdvertiSing
Total General
83 Gen Off - Sal and Exp 84 Gen Off Emp - Sal amp Exp 85 Gen Off a SuppJies amp Exps 88 Pensions
(93 Insurance PL amp PO (93 Insurance Workmens Comp (93 Insurance Other
Var Other General Accounts Total
Total Rail Operating Expense
Cents per Car Mile
12573226
$ 722615
$ 79078 759547 146522
$ 985141
$ 18190 174643 482945
23033 $ 698 811
$ 438900 3257666
104525 76608
351696 57240
$ 4286635
$ 6346 18353
$ 24699
$ 83645 123281
35570 4818S8 765019 46840 13664
287090 $ 1836967
$ 8554874
68004cent
ll887OOO
$ 722600
$ 79100 671200 147900
$ 898200
$) 18200 174600 547200
28900 $ 768900
$ 438900 2890900
104500 72200
351700 59600
$ 3917800
$ 6300 18400
$ 24700
$ 78900 123300 35600
456600 750400 ~ 43100 13700
282tl00 $ 1783700
$ 8115900
6827cent
Co
)
-
(1
I
flI
Car Miles Oper middot Exp Case I-B - Applicants Proposed Fares 11748000 $ 8047000 ~ Expenses Variable with Car Miles Wage rates used herein are those whieh
Ac30amp33 565 cent~ile prevailed immediately prior to 6154 59 460 The cost of the wage increase which 64 2432 tecomes fully effective on 12154 is 70 148 50 of total shown separately in Results of
Total 3605 centmile Operation table ~ See Table 5 for amounts under Proposed Fare
- 18 shy
- - - - - ------
LCB ANGELES TRANSIT LINFS Table 3 ESTIMATE OF TROLLEY COACH OPERATING EXPENSES Sheet 2 of 3
CASE I - UNDER PRESENT OPERATIONS
Acct No I t e m
Coach Miles Way and Structures
1-24 All Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 --superintendenoe 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conduoting Transportation 63 Superintendence 64 Operators Wages 70 Car House Employees
Var Other Condo Transp Accounts Total
Traffic 79 Superintendence 80 Advertising
Total General
83 Gen Off - Sal amp Exp 84 85
Gen Off Emp - Sal amp Exp Gen Off Supplies amp Exps
88 Pensions (93 Insurance PL amp PD (93 Insurance Worlanen s Comp (93 Insurance Other
Var Other General Accounts Total
Total Operating Expense
Cents per Mile
Case I-B - Applicants Proposed Fares
Expenses Variable with Coach Miles Acs 30amp33 477centmile
59 3038 64 2342 70 075 50 of total
Total 3232centjmi1e
~ See Table 5 for Amount Under Proposed Fares
Company Estfor 12 ME Recorda Ending Jan-May 1954 103155 I ~
Annualized Present Fares ~
2629188 2546000
$ 26518 $ 27000
$ 32628 $ 32600 125469 121400
11012 9600 $ 169109 $ 163600
$ 3770 $ 3800 35770 35BOO 75017 86000 1
8417 9000 $ 122974 $ 134600
$ 99161 $ 99200 612513 596300
38273 38300 21802 21500
$ 771749 $ 755300
$ 979 $ 1000 3588 3600
$ 4567 $ 4600
$ 15134 $ 12100 22990 23000 5669 5700
87614 83000 165089 97300 I
8516 8000 ~ 3054 3100
49076 48700 $ 357142 $ 280900 6
$1452059 $1366000
5523cent 5365cent
Coach Miles Oper Exp 2521000 $1355400 -- -0
Wage rates used herein are those which prevailed immedshyiately prior to 6154 The cost of the wage i~crease which becomes fully effective on 12154 is shown separately in Results of Operations table
- 19 shy
LOS ANGELES TRANS1 LINS TABLE 3 ESTIMATE OF MOTOR COAOH OPERATING EXPENSE Sheet 3 of 3
CASE I - UNDER PRESENT OPERATIONS
Company Estimate for Records 12 months
Jan - May Ending Acct 1954 103155 No I t e m Annualized Present Fares ~
Coach Miles 1832~158 18314000 Equipment Maintenance amp Gara~ Expense
4110 Supv - Shop and Gar $ 142788 $ 142800 4140-2 Repairs to Rev E~uipment 1097376 848800 4150 Servicing Rev Equipment 308373 307700 4160 Tires - Rev Equipment 123305 125200 Var Other Maint Accounts 151444 147300
Total $1823286 $1571800 Transportation Expense
4210 Supervision of Transp $ 487284 $ 487300 4220 Drivers I vrages 3767184 37589001= 3) bull
4230 522175 523800 )0
4240 Oil for Revenue Equipment 17256 19500 JOJ
Var Other Trans Exp Accounts 60153 58200 Total $4854052 $4847700
Traffic and Advertising 4470 Advertising $ 21593 $ 21600 Var Other Traffic Accounts 7)329 76500
Total $ 94922 $ 98100 Insurance
4510 Salaries and Expenses $ 18818 $ 18800 4520 Insurance PL amp PD 786322 542OOOp 4541 Insurance Workmens Compo 51458 50100p Var Other Insurance Exp 11357 11700 - shy
Fuel for Revenue Equipment _
J Total $ 867955 $ 622600 Administrative and General
4611-2 Gen Officers - Sal amp Exps $ 90806 $ 73500 4613-6 Gen Off Employees - Sal ampExp 138043 137000 4620 Law Expense 12910 16000 4630 Gen Office Supplies amp Exp 51689 44800 4640 Communication Expense 41143 45500 4652 Employees vlelfare 525737 498200 4655 Purchasing amp Stores 120790 120800 Var All Oth~r Adm amp Gen Exp 70090 53900
Total $1051208 $ 989700 Rents 15000 15000
Total Motor Coach Expense $8706423 $8144900 Cents per Mile 47middot50cent 4447cent
Coach Miles Ouer Exp Case I-B - Applicants Proposed Fares 18171 000 $8088900 -----shy
Expennes Variable with Milos Wage rates used herein are those which Ac 4140 463centmile prevailed immediately prior to 6154
4150 084 50 of total The cost of tho wage increase toJhich beshy4160 068 comes fully effective on 12154 is clnwn 4220 2052 separately in Results of Operation table 4230 286 4240 011
Total 2964centmile cent See Table 5 for Amount Under Proposed Fares 20 shy
TABLE 4
IDS ANGELES TRANSIT LUIES AMORTIZATION AND INTEREST ALLOWANCE
PAVING AND REMOVAL OBLIGATIONS - CASES I AND II APPLICATIONS NOS 35601 AND ~5728
A - Obligations from Abandonments Prior to 1954
Yearly Amortization $132000 Interest 16000
Total $148000
B - Obligations from Abandonment of Portions of IV and Rlt Lines (July 25 1954)
Yearly Amortization $ 4000 Interest 2000
Total $ 6000
C - Obligations from Abandonments as Proposed in Application No 35728 (November 1 154)
Yearly Amortization $ 35000 Interest 2JOOO
Total $ 55000
For Case I - Items A + B $154000
For Case II- Items A + B + C $209000
Includes cost of removal of electrical distribution system ($123700) and of substation equipment ($21600)
- 21 shy
LOS ANGELES TRAl~SIT Lli~S
RJBLIC LIABILITY PROPERTY DAl1AGE AND 1l0RIJftElI i S CCMFEi-TSATION EXPENSE illLATED TO SOUln~EbTT MILES Aim R3W-RLS PAS~lWEFS
CASE I - UNDER PRHSENT OPSHATIONS 1947 - 1950 Inc Jan-May Est FOr
Line Ito m 1951 1952 1953 195412 MosEnd No Total Av per Yr Annualizod 10 31 55
1 Lossos paid (n) $ 3890 $ 972 $ 1082 $ 902 $ 580 $ 262 2 Losses ostimato~ (a) 39 10 52 280 634 881 3 Reinsurance costs (a) 282 71 62 69 ____81 65 4 Total Losses_amp Insurance (a) $ 4211 $ 1053 $ 1196 $ 1251 $ 1295 $ 1208
5 Expenses paid (a) $ 1536 $ 384 $ 353 $ 385 $ 242 $ 170 6 Expenses estimated (a) 7 2 _ __ 11) 61 182 24S 7 Total expenses (a) $ 1543 $ middot 386 ~ 363 $ 446 $ 424 $415 8 Total LossesReiils amp Exp (a) $ 5754 $ 1439 1559 $ 1697 1719 $ 1622
(Lina 4- + 7) I 9 Number of claims filed 59991 14998 11588 11104 10246 9228
N
N 10 Vehiclo miles (millions) 153 4 384 356 351 346 336 I
11 Revenue Passon~crs (millions) 10093 2523 1924 1746 1661 1531
12 Loss Per 11i1 lliilos (4 ~ 10) ~27451 $27451 ~33596 $35~641 $37428 $35952 $35000
13 Loss Por i-Hllion Pass (4 11) $ 4172 $ 4172 ~ 6216 ) 7165 ~ 7797 $ 7890 $ 7500 14 Expensos por claim (7 f 9) h
ltfgt 2572 Y 25middot72 i) 3133 $ 4017 4138 $ 4497 $ 45 15 Claims per million miles (9 10) 391 391 326 316 296 275 280
16 Claims per million pass (9 11) 59 59 60 64 62 60 60
Ul p- CD (I)
(a) Thousand of dollars amp8
t-G o ~ H
J N
TABLE 5 LOS ANGELES TRANSIT LUTES Sheet 2 0 f 2
ESTIMATE OF PUBLIC LIABILITY AND PROPERTY DAMAGE AND WOBKMElJ 1 S COMPENSATION EXPENSES
FOR 12-MONTH PERIOD ENDING OCTOBER 31 1955 UNDER CASE I-A AND CASE I-B - PRESENT OPERATIONS ~lITH PRESENT amp PROPOSED FARES
Line 110
Cost Factors 1 Claims per million revenue passengers bull bull bull 2 raquo raquo vehicle miles bull bull bull 3 Expense per claim bull bull 4 Losses per million revenue passengers
raquo raquo vehicle miles bull bull bull bull 5 bull bull
60 280 45
7500 35000
Estimated Expense For PL and PD and Workmens Compensation Insurance
Case I-A Present Fares
6 Number of rovenue passengers (millions) 1395
7 Number of vehicle miles(millions) 3275
A - Basod on Number of Passengers 8 Losses 9 Expense
10 Total
B - Based 11 Losses 12 Expense 13 Total
$1046200 376700
$1422900
on Number of Vehicle Hiles $1146200
412700 $1558900
14 Average of A and B (PL amp PD and Workmen 6 Compo - $1490900
15 Workmens Compensation Insurance 101~200(a) 16 PL and PD Insurance 1389700
Distribution of Total PL amp PD Percent
17 Rail Operations 541 $ 750400 18 Trolloy Coach Operations 7 97300 19 Motor Coach Operations ~ -542000 20 Total 100 $1389700
Case I-B Proposed Fares
1341 3244
$1005700 362100
$1367800
$1135400 408700
$1544100
$1456000 100200 (b)
1355800
$ 732~100 94900
528800 $1355800
(a) Rail=$43lOO Trolley Coach=$8000 and Motor Coach=$50100
(b) Rail=$42 600_ Trolley Coach=$7 ~ 900 and Hotor Coach=$49 (00 _ --- I
- 23 shy
lA3LE 6
LOS ANGELES TRANSIT LINES ESTIHATE 041 OPERAT1NG TAXES
FOR 12 MONTHS ENDING OCTOBER 31 1955 CASE I - PRESENT OPERATIONS
APPLICATION NO 35601
Book Record Case I-A Case I-B L1ne I t e m 12 Months Present Proposed
No End 5-31~ Fares Fares(~ ) -=-----=-(3)~--=--~r(4~)~-(1)
1 City Franchise Taxes $ 473687 $ 434600 ~ 481900
2 Property Taxes-Ad Valorem 457963 435000 435000
3 Fuel and Oil Taxes 360580 337700 335100
4 Motor Vehicle License Taxes 136984 Ib8 900 168900
5 Transportation License 15600 21~00 (3 B of EHlshy
6 payroll Tuxes 265000 262500
Other raxes 7000 70007
Total ~ip 1 603 800
Net after weight fee credit
-24shy
-
6600 SER IE S 6700 AND 6900 SER IE S 6800 SER I ES
L I NE 6200 No TE~ 5000 6000 yf 6 100 yf 6300 6400 6600
MACK G M e G M e G M e G MC G M C I i~IA K( amp UODEl NUMBER C-45 -CT TD-4502 rn -4505 TO- 4506 TDH-5103 TOH shy 36 1 2 YE AR BUilT l~ 1940 1941 1945 1951 1947 3 DATE I N SERV I CE 7 -40 1-42 7 - 45 7 - 51 7 -47 4 NUMBER O F CoACHES 50 55 95 200 25 57 5 PU RCHAS ED NEW OR US ED N N
6 S EATI NG CAPAC IT Y 45 45 45 51 36 45 40
~ LE NG TH - OUT S I DE 3~ -0 3~ - 0 37 -0 3~ -6 30 - 6 3~ - 0 3~ -0 WI DTH - OU T S IDE -Oil _-ttl 8 -0 -611 8 - 2 _OM I - 0
9 HE I CHT - OU TS I DE 9 -6 9 shy 5t 9 -6 9 t 4t ll 9 - 2 9 0 9 -6 10 A I SL( HEADROOM 76 77 78 78 76shy 8 76
11 A ISLE WI DTH 19 2 1 26 22 22 20 12 TY PE O f DR I V( HYD HYD HYD HYO HYD HYD
13 BRA KE HORSE POWER amp FUE L 165io) 165( 0) 165(0) 110(0) 165(0) 165(0) 14 Bo DY f RAME MA TE R I AL AL AL AL AL AL NOT G I VE N 15 Bo DY PANEL ~1ATE R I AL AL AL AL AL AL NO T GI VEN
16 ROO F MATER I AL AL AL amp ST AL AL amp ST AL amp ST NO T G I VEN
~ ~ - AT DCC CMBER 3 1 1953shy14 26 15298AV ER AG E INVE ST PER CoACH $ ~ 21962 $ 13 992 17 60 14 209
19 INVESHIENT 1 354 9~ 3 059 506 549 044 7 97 5~ 2 lt164 650 99 466 10 000 509 20 RE SE RV E 1340 6 2 462 923 135951 503 6 1369 1 02 90 896 7 147 497
21 REM AIN ING VALUE (I NCL SALV) 14 250 596 583 413 093 293 869 1 095 548 8 570 2853 012 22 REMA I N I NG LIF E lOYR BAS I S 22 MO 90 MO 43 MO 52 MO 9 MO
23 REMAIN I NG L IFE 12YR BAS I 46 MO 90 MO 67 MO 76 MO 33 MO
yf THC COS T OF REBU IL DING 102 CoACHES OF THC 6000 AND 6 100 SE RIE S NOT I NCLUDE D HEREI N (SCE NEXT PACE)
1941 AN D 1942 MA T ER I AL S WE RE SuBJ ECT TO PR I OR I T ( S AND THEREFOR E STEEL WAS USE D IN PLACE OF
ALUMI NUM FO R BO DY FR AMES PAN EL S AND ROO FS I N SO ME COACHE S O F TH E TD- 4505 SERI ES
G - GASOl I NC D - D I CSE L AL - ALUM I NU M ST - Srr CL HYD - HYDRAUL I C
lt~i
~~4
CHART 4
LOS ANGELES TRANSIT LINES
MOTOR COACH EQUIPMENT
AS OF
SEPTEMB ER 1954IS_T 6000 SER I ES
6200 AND 6300 SER I ES
6
5 CHART
1~A~PLE OF THE DAMAGE TO BODY PANE LS M D RI VET ED JOINTS
2 - COACH WITH ALL BODY PANE LS Il l NDO V FR M1ES M~) SOIIE BO DY BRAC IN G REMOVED
l
LOS ANGELES TRANSIT LINES
PROGRAM OF
REBUILDING MOTOR COACHES
OF THE
6000 AND 6100 SERlES
j - PAR TI AL Re STO RA TI ON SODY PA NE LS Ix I I I )SI I ELD FRA Il E REPLA CED AFT ER kt C~ D I T I ON 116
I+ - AL L BO DY PANE LS AND S I DE W I~ DO J FRAhi ES RE shyPLACED AND ~ ESTO~ED
5 -INT ER IOR SHOW IN G CO MPLET E RE MOVAL OF SEATS AND OTHE R AC COUTERM ENTS REPLACED OR RECOND ITIO NED
6 -COMP LETE D I NTER l OR - t EIJ FLOO R
COV ER IN G WIT H S EAT CUSH IONS ETC
7 - COMP LET ED EXTER l OR COACH REPAI NTED AND READY FOR SERV I CE
I N 195 1 Los AN GELES T RANS IT LINES I NAUGURA TED A PROGRAM OF REBU IL D I NG GMC CoACHES OF THE
6 0 00 (BU ILT IN 1940) AND 61 00 ( BU ILT IN 1941) SER IE S A s OF JU LY 1954 62 COACH ES HAD BEE N
REBUILT WITH 40 ST ILL ON WORK ORDERS BUT IN PROCeSS THE CURRENT EST IM AT ED CO ST OF THIS
P ROGRMil I S AN AV ERAGE OF ~3500 PER COACH THE P U C S TAF F EST IMA TES THE LIF E OF TH ES E
COACH ES TO BE AN ADDIT IO NAL THR EE YEAR S FRO M DATE OF COMP LETI ON COS TS OF REB UILDING AR E
SHOWN I N THE RATE BAS E RE LATIV E TO THE APPROP RI ATE WORK ORDER AN D THEREFORE ARE NOT INCi UDEu
IN THE I NV ESH IENT FOR 60)0 AND 6100 S ERI ES COACH ES SHOWN ON CHAR T No 4
LOS ANGELES TRANSIT LINES SSTIMATED RATE BASE AND DEPRECHTION EXPENSE
12 I~ONTHS ENDING OCTOBSR 31 1955 CISE I - VnTH PRY-SENT METHOD OF SERTICE - APPLICATION NO 35601
Gum October 31 1954 As of October 31 1955
Line
No Item (1)
Iccnunt Number Invcstment
(2)
(3) Reserve
(4)
Inve stmen t Less
Reserve (5)
Remaining
Life (6)
In
Inve s tIDen t Less
vestment Reserve Reserve (7) (8) (9)
Depreciation Expense RAte YeAr
(10) LAND
1 2
Rights of VVAY Other Lmd
502 503
S 426974 1931112
$ 426974 1931112
$ middot 426974 1931112
$ 426974 $ 1931 112
EQUIP~NT ONl~ITDEPRECI~TION
3 Auto Tr011ey pcc53033Jf~034288 $ 7167640 $ 6866648 V3rious $14034288 $ 8125353 $ 5908935 $ 957713
PROPERTY ON GROUP DEPRECIATIJN OverheAQs
4 Engineering 501 $ 44651 $ 44651 OrgAnizAtiorfshy 546 601749 601749~ 5
6 Interest 547 middot 916884 916884 7 Gnding 504 1117084 1118084 8 All Other 505-545 27021634 4 Base 27141634 _____ _________ 9 Suttotal
(Lines 4 to 8) $29702002 $22441215 ~ 7260787 $29823002 ~23516286 $ 6306716 $1081071_
10 Tr)W(Lines 123 amp 9) ~46094376 $29608855 ~16485521 $46215376 $]1641639 $14573737 $2038784
11 RATE BASE Use - $2039000 12 Avenge 0f $16485521amp ~1+573 737 $15530000 13 Work in Progress 100000 14 M1terials amp Supplies 735000 15 Bond Deposit - City Fnnchise 411000 16 Deposit for PL Insurance 150000
17 Totil RAte BAse $16926000 8 t ~
-It- rhjor PArt of Acct 546 is Supervisinn --J
-----
LOS ANGELES TRI-NSIT LINES ESTThiIiTED Ri1TE BASE AND DEPRECllTION EXPENSE
12 NiONTHS ENDING OCTOBER 31 1955 CIlSE II - SSUMING MOTOR COACH SUBSTITUTION ON CERTHN RAIL LINES AS PROPOSED m iiPPLICilTION NO 35728
---- --------------- As f Oct)ber 31 195amp As of Oct0ber 31 1955 Inve sUn8nt Investment IBpreciaticn
Line Account Le ss REffiainin~ Less ExpensE No Item Number Inve-stmcnt ReS8riTe Reserve Life Investment Reserve ~ Reserve Rate Yeqr
(T) T2) 0) (Ii) (5) (6) (7) (8) (9) (10)
Ll~ND
1 Other LAnd 503 ~ 1925510 $ Ci 1925510 ~ 1925510 $ 1925510
EQUIP1A~NT ON UNIT DEPRECIATION 2 itutoIrol1eyPCC 5))3338 $16392563 $ 9323673 $ 7068890 Various $16392563 ~10391985 $ 6000578 $1068312
BUILDJNGS 3 General Office-~ 522 $ 916255 $ 563016 ~ 353239 1917 Yrs$ 916255 $ 581446 $ 334809 $ 18430 4 Shops Grgs Admin 523 amp524 2733772 1013500 1720272 2320 Yrs 2733772 1087633 1646139 74133 5 Subtotal (Lines 3 amp4) 3650027 ~ 1576516 gt 2073511 igt 3650027 11669079 ~ 1980948) 92563
~ PROPERTY ON GROUP DEPRECIATION Overheaas
6 Engineering 501) 7 Organizqtion 5~6) tt 1563178 ~ 1563178 8 Interest 547) 9 Grlding 504)
10 Righ ts of Vgy 502 117922 117922 11 All Other 505-5h5 15 651 31 7 15 771 31 7 ~---7-=-~-- lr-r-----=~ -x---r---~ 12 Subtotal (Lines 6 to 11) )17332417 $11343350 ~ 5989067 1117 Yramp$17452417 ~11833307 ~ 5619110 ~ 495957
13 Totql(Lines 125 amp 12) ~39300517 822243539 ~17056978 839420517 023894371 015526146 01656832
14 RATE BASE Use ~1657OOO 15 Avcr~ge of ~1705697B qnd )15526146 016292000 16 Nwk in Progre s s 100000 Am)unts sh)wn include lpplic3ble -werheqds fr)ll 17 Haterills amp Supplies 735000 Accnunts 546 amp 541 18 Bond Deposit - City Frqnchisc 411000 cent Investment ~d depreciation reserve assumes all 19 Deposit for PL Insurqnce 150000 retirements for the lines to be cmiddotmvcrted 1--3
20 Use Vqlue - Fully Depreciated CJtches 1)2000 ~re m~de 3S ) f November 1 1954 qnd that the ~ full unnunt middotf r e tirements qre charged to the EJ
21 Tot-l R1te Blse ~17840000 reserve co
10S ANG3LSS TRANSIT LI~S
INVESTWNT DSPRCIATICN R~SsRVS AND EXPSNS~ FOR ~QUIPMLNT ON UNIT PLAN DEPR3CHTION
CASES I AND II APPLICATIONS NO 35601 AND 35728
As of Oct0ber 31 ffi4 As of October 31 1955 Line NoTotal Investment fnvestment Depre No Item of Life Investment Reserve Less Investment Reserve Less Expense
Units Reserve Reserve Rate Year (1) (2) (J) 4) - ---(~ CD) en -- --8)----- -(9j- (10)
For Case I 1 Motor Coach Groups
62006300 66-6900 hOh 12 Yrs$6421159 $4728599 ~1692560 ~ 6421159 $ 500 1011 ~1330lh8 $ 362412 2 5000 6hoo 75 10 II 1486387 77~175 711212 1h86387 92h851 561536 149676 3 Coaches on order 100 10 II 2285400 2285400 2285400 2265J~0 2058860 226540
II
I 5 Automobiles 51 V3r 99485 50916 h8569 99485 66540 329h5 15624 ~ 6 Trucks amp Service Cars 56 II 280584 250572 30012 280584 265813 lh771 15241 I 7 Misc( Fare BoxesMotors) 170193 115191 55002 170193 122271 47922 7080
h Trolley Coaches 110 15 2108h09 908560 1199849 2108h09 1Oh6116 1062293 137556
8 Total of Lines 1 to 7 ~12851617 ~~6829013 ~02260h ~12i351617 ~ 77h3lh2 $5108475 $ 914129
9 PCC Rail Cars 40 25 rsJ~ 1182671 ) 338627 gt 84h04h 1182671 ~ 382211 ~ 800460 $ h3581~
10 Case I - Line 8 + Line 9 $14034288 $7167640 $6866648 ~14034288 $ 8125353 t5908935 $ 957713
For Case II
11 6000 amp 6100 Series MC 150 FD ~ 2092963 $2070463 ~ 22500 $ 2092963 $ 2070463 $ 22500 12 Work orders on 6000s
amp 6100 s 3 Yrs 265312 61860 203452 265312 144007 121305 $ 82147 13 PCC Rail Cars 401717 1182671 362 337__ ~~~ 334 1182671 43473 ___748298 72036
14 Case II - Lines 8 + 11+ 12+ 13 ~16392563 9323673 n068890 $16392563 ttl0391985 ~6ooo578 ~1068312
t-3
125 other PCC Cars are in Group Depreciation Schedule G ~
Note579 motor coaches under Case I and 729 under Case II D
LOS AlJGELES TRANSIT LnlES TABLE 10 ESTIMATE]) RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD E1TDUTG OCTOBER 31 1955 CASE I - UNDER PRESENT OPERATIONS
12 Months Jan-June
Line No Item
Tab1e Ending or May 31 1954 Page Fe fer
(2)
Book Record
(])
1954 Annualized
Book Record
(4)
Case I-A Present
Fares (5 )
Case I-B Applicant l s
Proposed Fares
(6)
1 Vehicle Miles T2 34036066 33569520 32747000 32440000
Revenue 2 3 4 5
Passenger Revenue Unredeemed Tokens Other Revenue Total
T1 P7 P7
$24849150
122402 $25044557
$24517866
183810 $24 701676
$22940000 $25513000 20000
1821 000 182 000 $23147000 $25700000
6 7 8
Operating Expenses Rail Trolley Coach Motor Coach
T3 T3 T3
$ 8493744 1442232 8622956
$ 8575232 1451430 8 n6470
$ 8115900 $ 8047000 1366000 1355400 8144200 8088900
9 10 11 12 13
Sub-Total Depreciation Operating Taxes Wage Increase Total
T7 T6
18563932 2176608 1676358
$22416898
18743132 2185804 1760600
$22689536
17626800 17491300~ 2039000 2039000 1663800 1711700
439800 436500 $21769400 $21678500
14 Operating Income $ 2627659 $ 20J2JJQ $ 1377600 $ 4021500 15 Other Inc amp Inc Deduct 21258 (9328)
16 Net Inc Before IncTaxes 2635217 2002742 1377600 4021500 I 17 Income Taxes (St ampFe~) 1302758 1026568 647500 1 999 000 18 Net Operating Income 1332459 976174 730100 2022 500 i 19 Allowance T4 112216 80752 1541000 1541000 20 Net Income $ 1220243 $ 895422 $576100 $ 1868500
21 Rate Base T7 $17393000 $16727000 $16926000 $16926000 22 Rate of Return 70~ 535 340 1104
Operating Ratio 23 Before Income Taxes 9405 8435 24 After Inc Taxes ampAllow 9751 927)
Not Applicable
Computed by PUC Staff Allowance for interest and amortization of abandoned property (Red ]figure)
- 31 shy
IDS ill~GElES TRANSIT LINES ESTIMATE OF OPERATllIG EX-degENSES JuID TAXES
FOR 12 f10NTHS ENDING OCTOBER 31 1955 CASE II - KOTOR COACH Sl~STITUTION - j~PLrCATION NO 35728
Table or Line Page Hotor Trolley
~To Item Reference Streetcar Coach Coach Total
l 2 3
4
I S
rv 6VJ
I 7 8 9
10 ll 12 13 Ih 15 16
17
13
(ll- -- shy
Vehicle Miles Case I - Present Operation Case II - Proposed Operation
Increase in i1iles
Opere amp I1aint Expense - Case I
Changes in Expense Due to Conversion Way and Structures Substation Operation Rail Crossing Protection Vehicle Maintenance Servicing of Vehicles Tires - Hotor Coach Equipment Operators vJages Fuel Oil or Power 21 amp PD Insurance ~Jorkmen I s Compensation Insurance Training Drivers for Conversion
Total Increase in Expense
Oper amp i1aint Expense - Case II (Line h +
Operating Taxes - Case II
(Red Figure)
(Z)
T2 T2
T3
Line 16)
D)
11887000 6691000
(5196000)
~ 8115900
t (11500) (42200) (55000)
(270900) (76900)
(1232900) (219800)
(liT shy
18314000 23h67000 5153000
amp 314~900
~
355000 h3300 32500
1154300 153000
-C5) (6)
2546000 32747000 2949000 33107000
403000 360000
S 1366000 ~gt 17 626800
If (144500) 1 ~ v$ ltW (42 200 ) - bull (55 000 ) 7HmiddotVj
19200 103300 M~ f~
3000 ( 30600) A N- i
32500 94400 15800 14600 (52206)
(1l1100) ~ [ (1200) Glh
30000 ~i
p (258200)
$17368600 r3
c~ 1786600 cr ill
I- CD
I- i-
TABLE 12
LOS ANGELES TRANSIT LINES ESTIMATED RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD ENDING OCTOBER 11 1955 CASE II - MOTOR COACH SUBSTITUTION - APPLICATION NO 15728
Table Case II-A Case II-B Line Item Refer- Present Proposed
Nos i FSles Faresect~nce
( 1) (2) (3) ( 4)
1 Vehicles Miles T 2 33107000 32817000
2 Operating Revenue T 10 $23147000 $25700000
O~erating E~ense
3 Operating and Maintenance Tll $17368600 $17234900 4 Depreciation T 8 1657000 1657000 5 Operating Taxes Tll 1786000 1837800 6 Wage Increase 434ZQQ 431 lt)00
Total $21246300 $211612007
8 Operating Income $ 1900700 $ 4538800 Other Inc amp Inc Deductions it 119
10 Net Income Before Income Taxes $ 1900700 $ 4538800 11 Income Taxes (State amp Federal) 214 200 2262 400 12 Net Operating Income $ 985800 $ 2275400 13 Allowance T 4 ~ 2090QO ~ 20200Q 14 Net Income $ 776800 $ 2066400
15 Rate Base T 8 $17840000 $17840000 16 Rate of Return 435 1158
012erating Ratio 17 Before Income Taxes 9179 8234 18 After Income Taxes amp Allowance 9664 9196
Not Appli cable
Allowance for interest and amortization related to streetcar abandonment of the past and for abandonmcnts proposed in Application No 35728
-33shy
LOS ANGELES TRANSIT Ln~S ESTH1ATE OF HILES TO i3LJ OERATEJJ FOR THE TlJ7IVE HONTHS-ENDING OCTOBER 31 1 q55
A UNDJilR PRESENT OPERATIONS B WITH HOTOR COACH SlfilSTITUTION AS PROPOSED IN APPLICATION NO 35n8
CASE I - PRESENT OPERlTI03S Present Fares Propose(l Fares
Estimatet Estimated Estimated Hiloago Estimated Est T)imirDl l4i Recluc-Estimatea Miles Miles (a) Decrease In Traffic Roduction Mileage of Traffiction Below Proposed
Item As Shown In Miles of the Decline Duo TrafficPresent FaresBelow TrafCol6 Due to Fares PDC Staff Dacrease9-15-54 to Docline (2) x At PrescntDiminution Col 6 x
________ (3) x (4) (100 - Col 5gt Fares (7) x (3) (100 - ColFJdlibLLJamp~Passengers ~-55 8) (1) (2) (3) (4) (5) (6) (7) (8) (9)
streetcar 12041861 30 43 L29 11587000 39 117 11748000
Trolley Coach 2546000 92573633 25f~ 43 1 075~b 3 0 975 2521000
Motor Coach (b) ]8li-~4 849 20 4 3~ 86 10 18106000 39 78 18163000bull I~
f-- ---J Total (b) 33080343 32739000 32432000
CASE II - OFSRATIONS PROPOSED IN APPLICATION NO 15728 Present Fares Proposed Fares
Item Estimatefl 1JIiles(a) As SnownEstimate~- Miles Present FarosEstimate~ Milos Proposed ___-~___------I=n~PDCStaff Exhibit No Col lOx (100 - Col 5) Faros Col llx (100-CQl~
(1) (10) (11) (12)
Stroetcar 6778211 6691000 6 61300O
Trolley Coach 2981376 2949000 2920000
Motor Coach (b) 236629)) 23459 1000 2276 7000
~Total (b) 33422542 33099000 32809000 ill r trl
(a) Based on th~ l ovel of traffic of Septombor 1954 I)
(b) To the estirl8ted milos shown here should bo a~dod 7500 Charter Miles
t-3
- - - - - - -
LOS kJGELES TRANSIT LINES Table 3 Sheet 1 of 3ESTIMATE OF RAIL OPERiTINGifiPENSES
CASE I - UNDER PRESENT OPERATIONS
Company Estfor 12 Mo~ Records Ending
Acct Jan-May 1954 103155 No I t e m Annualized Present Fares
Car Miles Way and Structures
1-24 ill Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 Superintendence 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conducting Transportation 63 Superintendence 64 Conductor Motormen etc 66 Car Service Emp 67 Miscel1 Car Service Exp 70 Car House Empa
Var other Cond Transp Accounts Total
Traffic 79 Superintendence 80 AdvertiSing
Total General
83 Gen Off - Sal and Exp 84 Gen Off Emp - Sal amp Exp 85 Gen Off a SuppJies amp Exps 88 Pensions
(93 Insurance PL amp PO (93 Insurance Workmens Comp (93 Insurance Other
Var Other General Accounts Total
Total Rail Operating Expense
Cents per Car Mile
12573226
$ 722615
$ 79078 759547 146522
$ 985141
$ 18190 174643 482945
23033 $ 698 811
$ 438900 3257666
104525 76608
351696 57240
$ 4286635
$ 6346 18353
$ 24699
$ 83645 123281
35570 4818S8 765019 46840 13664
287090 $ 1836967
$ 8554874
68004cent
ll887OOO
$ 722600
$ 79100 671200 147900
$ 898200
$) 18200 174600 547200
28900 $ 768900
$ 438900 2890900
104500 72200
351700 59600
$ 3917800
$ 6300 18400
$ 24700
$ 78900 123300 35600
456600 750400 ~ 43100 13700
282tl00 $ 1783700
$ 8115900
6827cent
Co
)
-
(1
I
flI
Car Miles Oper middot Exp Case I-B - Applicants Proposed Fares 11748000 $ 8047000 ~ Expenses Variable with Car Miles Wage rates used herein are those whieh
Ac30amp33 565 cent~ile prevailed immediately prior to 6154 59 460 The cost of the wage increase which 64 2432 tecomes fully effective on 12154 is 70 148 50 of total shown separately in Results of
Total 3605 centmile Operation table ~ See Table 5 for amounts under Proposed Fare
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- - - - - ------
LCB ANGELES TRANSIT LINFS Table 3 ESTIMATE OF TROLLEY COACH OPERATING EXPENSES Sheet 2 of 3
CASE I - UNDER PRESENT OPERATIONS
Acct No I t e m
Coach Miles Way and Structures
1-24 All Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 --superintendenoe 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conduoting Transportation 63 Superintendence 64 Operators Wages 70 Car House Employees
Var Other Condo Transp Accounts Total
Traffic 79 Superintendence 80 Advertising
Total General
83 Gen Off - Sal amp Exp 84 85
Gen Off Emp - Sal amp Exp Gen Off Supplies amp Exps
88 Pensions (93 Insurance PL amp PD (93 Insurance Worlanen s Comp (93 Insurance Other
Var Other General Accounts Total
Total Operating Expense
Cents per Mile
Case I-B - Applicants Proposed Fares
Expenses Variable with Coach Miles Acs 30amp33 477centmile
59 3038 64 2342 70 075 50 of total
Total 3232centjmi1e
~ See Table 5 for Amount Under Proposed Fares
Company Estfor 12 ME Recorda Ending Jan-May 1954 103155 I ~
Annualized Present Fares ~
2629188 2546000
$ 26518 $ 27000
$ 32628 $ 32600 125469 121400
11012 9600 $ 169109 $ 163600
$ 3770 $ 3800 35770 35BOO 75017 86000 1
8417 9000 $ 122974 $ 134600
$ 99161 $ 99200 612513 596300
38273 38300 21802 21500
$ 771749 $ 755300
$ 979 $ 1000 3588 3600
$ 4567 $ 4600
$ 15134 $ 12100 22990 23000 5669 5700
87614 83000 165089 97300 I
8516 8000 ~ 3054 3100
49076 48700 $ 357142 $ 280900 6
$1452059 $1366000
5523cent 5365cent
Coach Miles Oper Exp 2521000 $1355400 -- -0
Wage rates used herein are those which prevailed immedshyiately prior to 6154 The cost of the wage i~crease which becomes fully effective on 12154 is shown separately in Results of Operations table
- 19 shy
LOS ANGELES TRANS1 LINS TABLE 3 ESTIMATE OF MOTOR COAOH OPERATING EXPENSE Sheet 3 of 3
CASE I - UNDER PRESENT OPERATIONS
Company Estimate for Records 12 months
Jan - May Ending Acct 1954 103155 No I t e m Annualized Present Fares ~
Coach Miles 1832~158 18314000 Equipment Maintenance amp Gara~ Expense
4110 Supv - Shop and Gar $ 142788 $ 142800 4140-2 Repairs to Rev E~uipment 1097376 848800 4150 Servicing Rev Equipment 308373 307700 4160 Tires - Rev Equipment 123305 125200 Var Other Maint Accounts 151444 147300
Total $1823286 $1571800 Transportation Expense
4210 Supervision of Transp $ 487284 $ 487300 4220 Drivers I vrages 3767184 37589001= 3) bull
4230 522175 523800 )0
4240 Oil for Revenue Equipment 17256 19500 JOJ
Var Other Trans Exp Accounts 60153 58200 Total $4854052 $4847700
Traffic and Advertising 4470 Advertising $ 21593 $ 21600 Var Other Traffic Accounts 7)329 76500
Total $ 94922 $ 98100 Insurance
4510 Salaries and Expenses $ 18818 $ 18800 4520 Insurance PL amp PD 786322 542OOOp 4541 Insurance Workmens Compo 51458 50100p Var Other Insurance Exp 11357 11700 - shy
Fuel for Revenue Equipment _
J Total $ 867955 $ 622600 Administrative and General
4611-2 Gen Officers - Sal amp Exps $ 90806 $ 73500 4613-6 Gen Off Employees - Sal ampExp 138043 137000 4620 Law Expense 12910 16000 4630 Gen Office Supplies amp Exp 51689 44800 4640 Communication Expense 41143 45500 4652 Employees vlelfare 525737 498200 4655 Purchasing amp Stores 120790 120800 Var All Oth~r Adm amp Gen Exp 70090 53900
Total $1051208 $ 989700 Rents 15000 15000
Total Motor Coach Expense $8706423 $8144900 Cents per Mile 47middot50cent 4447cent
Coach Miles Ouer Exp Case I-B - Applicants Proposed Fares 18171 000 $8088900 -----shy
Expennes Variable with Milos Wage rates used herein are those which Ac 4140 463centmile prevailed immediately prior to 6154
4150 084 50 of total The cost of tho wage increase toJhich beshy4160 068 comes fully effective on 12154 is clnwn 4220 2052 separately in Results of Operation table 4230 286 4240 011
Total 2964centmile cent See Table 5 for Amount Under Proposed Fares 20 shy
TABLE 4
IDS ANGELES TRANSIT LUIES AMORTIZATION AND INTEREST ALLOWANCE
PAVING AND REMOVAL OBLIGATIONS - CASES I AND II APPLICATIONS NOS 35601 AND ~5728
A - Obligations from Abandonments Prior to 1954
Yearly Amortization $132000 Interest 16000
Total $148000
B - Obligations from Abandonment of Portions of IV and Rlt Lines (July 25 1954)
Yearly Amortization $ 4000 Interest 2000
Total $ 6000
C - Obligations from Abandonments as Proposed in Application No 35728 (November 1 154)
Yearly Amortization $ 35000 Interest 2JOOO
Total $ 55000
For Case I - Items A + B $154000
For Case II- Items A + B + C $209000
Includes cost of removal of electrical distribution system ($123700) and of substation equipment ($21600)
- 21 shy
LOS ANGELES TRAl~SIT Lli~S
RJBLIC LIABILITY PROPERTY DAl1AGE AND 1l0RIJftElI i S CCMFEi-TSATION EXPENSE illLATED TO SOUln~EbTT MILES Aim R3W-RLS PAS~lWEFS
CASE I - UNDER PRHSENT OPSHATIONS 1947 - 1950 Inc Jan-May Est FOr
Line Ito m 1951 1952 1953 195412 MosEnd No Total Av per Yr Annualizod 10 31 55
1 Lossos paid (n) $ 3890 $ 972 $ 1082 $ 902 $ 580 $ 262 2 Losses ostimato~ (a) 39 10 52 280 634 881 3 Reinsurance costs (a) 282 71 62 69 ____81 65 4 Total Losses_amp Insurance (a) $ 4211 $ 1053 $ 1196 $ 1251 $ 1295 $ 1208
5 Expenses paid (a) $ 1536 $ 384 $ 353 $ 385 $ 242 $ 170 6 Expenses estimated (a) 7 2 _ __ 11) 61 182 24S 7 Total expenses (a) $ 1543 $ middot 386 ~ 363 $ 446 $ 424 $415 8 Total LossesReiils amp Exp (a) $ 5754 $ 1439 1559 $ 1697 1719 $ 1622
(Lina 4- + 7) I 9 Number of claims filed 59991 14998 11588 11104 10246 9228
N
N 10 Vehiclo miles (millions) 153 4 384 356 351 346 336 I
11 Revenue Passon~crs (millions) 10093 2523 1924 1746 1661 1531
12 Loss Per 11i1 lliilos (4 ~ 10) ~27451 $27451 ~33596 $35~641 $37428 $35952 $35000
13 Loss Por i-Hllion Pass (4 11) $ 4172 $ 4172 ~ 6216 ) 7165 ~ 7797 $ 7890 $ 7500 14 Expensos por claim (7 f 9) h
ltfgt 2572 Y 25middot72 i) 3133 $ 4017 4138 $ 4497 $ 45 15 Claims per million miles (9 10) 391 391 326 316 296 275 280
16 Claims per million pass (9 11) 59 59 60 64 62 60 60
Ul p- CD (I)
(a) Thousand of dollars amp8
t-G o ~ H
J N
TABLE 5 LOS ANGELES TRANSIT LUTES Sheet 2 0 f 2
ESTIMATE OF PUBLIC LIABILITY AND PROPERTY DAMAGE AND WOBKMElJ 1 S COMPENSATION EXPENSES
FOR 12-MONTH PERIOD ENDING OCTOBER 31 1955 UNDER CASE I-A AND CASE I-B - PRESENT OPERATIONS ~lITH PRESENT amp PROPOSED FARES
Line 110
Cost Factors 1 Claims per million revenue passengers bull bull bull 2 raquo raquo vehicle miles bull bull bull 3 Expense per claim bull bull 4 Losses per million revenue passengers
raquo raquo vehicle miles bull bull bull bull 5 bull bull
60 280 45
7500 35000
Estimated Expense For PL and PD and Workmens Compensation Insurance
Case I-A Present Fares
6 Number of rovenue passengers (millions) 1395
7 Number of vehicle miles(millions) 3275
A - Basod on Number of Passengers 8 Losses 9 Expense
10 Total
B - Based 11 Losses 12 Expense 13 Total
$1046200 376700
$1422900
on Number of Vehicle Hiles $1146200
412700 $1558900
14 Average of A and B (PL amp PD and Workmen 6 Compo - $1490900
15 Workmens Compensation Insurance 101~200(a) 16 PL and PD Insurance 1389700
Distribution of Total PL amp PD Percent
17 Rail Operations 541 $ 750400 18 Trolloy Coach Operations 7 97300 19 Motor Coach Operations ~ -542000 20 Total 100 $1389700
Case I-B Proposed Fares
1341 3244
$1005700 362100
$1367800
$1135400 408700
$1544100
$1456000 100200 (b)
1355800
$ 732~100 94900
528800 $1355800
(a) Rail=$43lOO Trolley Coach=$8000 and Motor Coach=$50100
(b) Rail=$42 600_ Trolley Coach=$7 ~ 900 and Hotor Coach=$49 (00 _ --- I
- 23 shy
lA3LE 6
LOS ANGELES TRANSIT LINES ESTIHATE 041 OPERAT1NG TAXES
FOR 12 MONTHS ENDING OCTOBER 31 1955 CASE I - PRESENT OPERATIONS
APPLICATION NO 35601
Book Record Case I-A Case I-B L1ne I t e m 12 Months Present Proposed
No End 5-31~ Fares Fares(~ ) -=-----=-(3)~--=--~r(4~)~-(1)
1 City Franchise Taxes $ 473687 $ 434600 ~ 481900
2 Property Taxes-Ad Valorem 457963 435000 435000
3 Fuel and Oil Taxes 360580 337700 335100
4 Motor Vehicle License Taxes 136984 Ib8 900 168900
5 Transportation License 15600 21~00 (3 B of EHlshy
6 payroll Tuxes 265000 262500
Other raxes 7000 70007
Total ~ip 1 603 800
Net after weight fee credit
-24shy
5 CHART
1~A~PLE OF THE DAMAGE TO BODY PANE LS M D RI VET ED JOINTS
2 - COACH WITH ALL BODY PANE LS Il l NDO V FR M1ES M~) SOIIE BO DY BRAC IN G REMOVED
l
LOS ANGELES TRANSIT LINES
PROGRAM OF
REBUILDING MOTOR COACHES
OF THE
6000 AND 6100 SERlES
j - PAR TI AL Re STO RA TI ON SODY PA NE LS Ix I I I )SI I ELD FRA Il E REPLA CED AFT ER kt C~ D I T I ON 116
I+ - AL L BO DY PANE LS AND S I DE W I~ DO J FRAhi ES RE shyPLACED AND ~ ESTO~ED
5 -INT ER IOR SHOW IN G CO MPLET E RE MOVAL OF SEATS AND OTHE R AC COUTERM ENTS REPLACED OR RECOND ITIO NED
6 -COMP LETE D I NTER l OR - t EIJ FLOO R
COV ER IN G WIT H S EAT CUSH IONS ETC
7 - COMP LET ED EXTER l OR COACH REPAI NTED AND READY FOR SERV I CE
I N 195 1 Los AN GELES T RANS IT LINES I NAUGURA TED A PROGRAM OF REBU IL D I NG GMC CoACHES OF THE
6 0 00 (BU ILT IN 1940) AND 61 00 ( BU ILT IN 1941) SER IE S A s OF JU LY 1954 62 COACH ES HAD BEE N
REBUILT WITH 40 ST ILL ON WORK ORDERS BUT IN PROCeSS THE CURRENT EST IM AT ED CO ST OF THIS
P ROGRMil I S AN AV ERAGE OF ~3500 PER COACH THE P U C S TAF F EST IMA TES THE LIF E OF TH ES E
COACH ES TO BE AN ADDIT IO NAL THR EE YEAR S FRO M DATE OF COMP LETI ON COS TS OF REB UILDING AR E
SHOWN I N THE RATE BAS E RE LATIV E TO THE APPROP RI ATE WORK ORDER AN D THEREFORE ARE NOT INCi UDEu
IN THE I NV ESH IENT FOR 60)0 AND 6100 S ERI ES COACH ES SHOWN ON CHAR T No 4
LOS ANGELES TRANSIT LINES SSTIMATED RATE BASE AND DEPRECHTION EXPENSE
12 I~ONTHS ENDING OCTOBSR 31 1955 CISE I - VnTH PRY-SENT METHOD OF SERTICE - APPLICATION NO 35601
Gum October 31 1954 As of October 31 1955
Line
No Item (1)
Iccnunt Number Invcstment
(2)
(3) Reserve
(4)
Inve stmen t Less
Reserve (5)
Remaining
Life (6)
In
Inve s tIDen t Less
vestment Reserve Reserve (7) (8) (9)
Depreciation Expense RAte YeAr
(10) LAND
1 2
Rights of VVAY Other Lmd
502 503
S 426974 1931112
$ 426974 1931112
$ middot 426974 1931112
$ 426974 $ 1931 112
EQUIP~NT ONl~ITDEPRECI~TION
3 Auto Tr011ey pcc53033Jf~034288 $ 7167640 $ 6866648 V3rious $14034288 $ 8125353 $ 5908935 $ 957713
PROPERTY ON GROUP DEPRECIATIJN OverheAQs
4 Engineering 501 $ 44651 $ 44651 OrgAnizAtiorfshy 546 601749 601749~ 5
6 Interest 547 middot 916884 916884 7 Gnding 504 1117084 1118084 8 All Other 505-545 27021634 4 Base 27141634 _____ _________ 9 Suttotal
(Lines 4 to 8) $29702002 $22441215 ~ 7260787 $29823002 ~23516286 $ 6306716 $1081071_
10 Tr)W(Lines 123 amp 9) ~46094376 $29608855 ~16485521 $46215376 $]1641639 $14573737 $2038784
11 RATE BASE Use - $2039000 12 Avenge 0f $16485521amp ~1+573 737 $15530000 13 Work in Progress 100000 14 M1terials amp Supplies 735000 15 Bond Deposit - City Fnnchise 411000 16 Deposit for PL Insurance 150000
17 Totil RAte BAse $16926000 8 t ~
-It- rhjor PArt of Acct 546 is Supervisinn --J
-----
LOS ANGELES TRI-NSIT LINES ESTThiIiTED Ri1TE BASE AND DEPRECllTION EXPENSE
12 NiONTHS ENDING OCTOBER 31 1955 CIlSE II - SSUMING MOTOR COACH SUBSTITUTION ON CERTHN RAIL LINES AS PROPOSED m iiPPLICilTION NO 35728
---- --------------- As f Oct)ber 31 195amp As of Oct0ber 31 1955 Inve sUn8nt Investment IBpreciaticn
Line Account Le ss REffiainin~ Less ExpensE No Item Number Inve-stmcnt ReS8riTe Reserve Life Investment Reserve ~ Reserve Rate Yeqr
(T) T2) 0) (Ii) (5) (6) (7) (8) (9) (10)
Ll~ND
1 Other LAnd 503 ~ 1925510 $ Ci 1925510 ~ 1925510 $ 1925510
EQUIP1A~NT ON UNIT DEPRECIATION 2 itutoIrol1eyPCC 5))3338 $16392563 $ 9323673 $ 7068890 Various $16392563 ~10391985 $ 6000578 $1068312
BUILDJNGS 3 General Office-~ 522 $ 916255 $ 563016 ~ 353239 1917 Yrs$ 916255 $ 581446 $ 334809 $ 18430 4 Shops Grgs Admin 523 amp524 2733772 1013500 1720272 2320 Yrs 2733772 1087633 1646139 74133 5 Subtotal (Lines 3 amp4) 3650027 ~ 1576516 gt 2073511 igt 3650027 11669079 ~ 1980948) 92563
~ PROPERTY ON GROUP DEPRECIATION Overheaas
6 Engineering 501) 7 Organizqtion 5~6) tt 1563178 ~ 1563178 8 Interest 547) 9 Grlding 504)
10 Righ ts of Vgy 502 117922 117922 11 All Other 505-5h5 15 651 31 7 15 771 31 7 ~---7-=-~-- lr-r-----=~ -x---r---~ 12 Subtotal (Lines 6 to 11) )17332417 $11343350 ~ 5989067 1117 Yramp$17452417 ~11833307 ~ 5619110 ~ 495957
13 Totql(Lines 125 amp 12) ~39300517 822243539 ~17056978 839420517 023894371 015526146 01656832
14 RATE BASE Use ~1657OOO 15 Avcr~ge of ~1705697B qnd )15526146 016292000 16 Nwk in Progre s s 100000 Am)unts sh)wn include lpplic3ble -werheqds fr)ll 17 Haterills amp Supplies 735000 Accnunts 546 amp 541 18 Bond Deposit - City Frqnchisc 411000 cent Investment ~d depreciation reserve assumes all 19 Deposit for PL Insurqnce 150000 retirements for the lines to be cmiddotmvcrted 1--3
20 Use Vqlue - Fully Depreciated CJtches 1)2000 ~re m~de 3S ) f November 1 1954 qnd that the ~ full unnunt middotf r e tirements qre charged to the EJ
21 Tot-l R1te Blse ~17840000 reserve co
10S ANG3LSS TRANSIT LI~S
INVESTWNT DSPRCIATICN R~SsRVS AND EXPSNS~ FOR ~QUIPMLNT ON UNIT PLAN DEPR3CHTION
CASES I AND II APPLICATIONS NO 35601 AND 35728
As of Oct0ber 31 ffi4 As of October 31 1955 Line NoTotal Investment fnvestment Depre No Item of Life Investment Reserve Less Investment Reserve Less Expense
Units Reserve Reserve Rate Year (1) (2) (J) 4) - ---(~ CD) en -- --8)----- -(9j- (10)
For Case I 1 Motor Coach Groups
62006300 66-6900 hOh 12 Yrs$6421159 $4728599 ~1692560 ~ 6421159 $ 500 1011 ~1330lh8 $ 362412 2 5000 6hoo 75 10 II 1486387 77~175 711212 1h86387 92h851 561536 149676 3 Coaches on order 100 10 II 2285400 2285400 2285400 2265J~0 2058860 226540
II
I 5 Automobiles 51 V3r 99485 50916 h8569 99485 66540 329h5 15624 ~ 6 Trucks amp Service Cars 56 II 280584 250572 30012 280584 265813 lh771 15241 I 7 Misc( Fare BoxesMotors) 170193 115191 55002 170193 122271 47922 7080
h Trolley Coaches 110 15 2108h09 908560 1199849 2108h09 1Oh6116 1062293 137556
8 Total of Lines 1 to 7 ~12851617 ~~6829013 ~02260h ~12i351617 ~ 77h3lh2 $5108475 $ 914129
9 PCC Rail Cars 40 25 rsJ~ 1182671 ) 338627 gt 84h04h 1182671 ~ 382211 ~ 800460 $ h3581~
10 Case I - Line 8 + Line 9 $14034288 $7167640 $6866648 ~14034288 $ 8125353 t5908935 $ 957713
For Case II
11 6000 amp 6100 Series MC 150 FD ~ 2092963 $2070463 ~ 22500 $ 2092963 $ 2070463 $ 22500 12 Work orders on 6000s
amp 6100 s 3 Yrs 265312 61860 203452 265312 144007 121305 $ 82147 13 PCC Rail Cars 401717 1182671 362 337__ ~~~ 334 1182671 43473 ___748298 72036
14 Case II - Lines 8 + 11+ 12+ 13 ~16392563 9323673 n068890 $16392563 ttl0391985 ~6ooo578 ~1068312
t-3
125 other PCC Cars are in Group Depreciation Schedule G ~
Note579 motor coaches under Case I and 729 under Case II D
LOS AlJGELES TRANSIT LnlES TABLE 10 ESTIMATE]) RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD E1TDUTG OCTOBER 31 1955 CASE I - UNDER PRESENT OPERATIONS
12 Months Jan-June
Line No Item
Tab1e Ending or May 31 1954 Page Fe fer
(2)
Book Record
(])
1954 Annualized
Book Record
(4)
Case I-A Present
Fares (5 )
Case I-B Applicant l s
Proposed Fares
(6)
1 Vehicle Miles T2 34036066 33569520 32747000 32440000
Revenue 2 3 4 5
Passenger Revenue Unredeemed Tokens Other Revenue Total
T1 P7 P7
$24849150
122402 $25044557
$24517866
183810 $24 701676
$22940000 $25513000 20000
1821 000 182 000 $23147000 $25700000
6 7 8
Operating Expenses Rail Trolley Coach Motor Coach
T3 T3 T3
$ 8493744 1442232 8622956
$ 8575232 1451430 8 n6470
$ 8115900 $ 8047000 1366000 1355400 8144200 8088900
9 10 11 12 13
Sub-Total Depreciation Operating Taxes Wage Increase Total
T7 T6
18563932 2176608 1676358
$22416898
18743132 2185804 1760600
$22689536
17626800 17491300~ 2039000 2039000 1663800 1711700
439800 436500 $21769400 $21678500
14 Operating Income $ 2627659 $ 20J2JJQ $ 1377600 $ 4021500 15 Other Inc amp Inc Deduct 21258 (9328)
16 Net Inc Before IncTaxes 2635217 2002742 1377600 4021500 I 17 Income Taxes (St ampFe~) 1302758 1026568 647500 1 999 000 18 Net Operating Income 1332459 976174 730100 2022 500 i 19 Allowance T4 112216 80752 1541000 1541000 20 Net Income $ 1220243 $ 895422 $576100 $ 1868500
21 Rate Base T7 $17393000 $16727000 $16926000 $16926000 22 Rate of Return 70~ 535 340 1104
Operating Ratio 23 Before Income Taxes 9405 8435 24 After Inc Taxes ampAllow 9751 927)
Not Applicable
Computed by PUC Staff Allowance for interest and amortization of abandoned property (Red ]figure)
- 31 shy
IDS ill~GElES TRANSIT LINES ESTIMATE OF OPERATllIG EX-degENSES JuID TAXES
FOR 12 f10NTHS ENDING OCTOBER 31 1955 CASE II - KOTOR COACH Sl~STITUTION - j~PLrCATION NO 35728
Table or Line Page Hotor Trolley
~To Item Reference Streetcar Coach Coach Total
l 2 3
4
I S
rv 6VJ
I 7 8 9
10 ll 12 13 Ih 15 16
17
13
(ll- -- shy
Vehicle Miles Case I - Present Operation Case II - Proposed Operation
Increase in i1iles
Opere amp I1aint Expense - Case I
Changes in Expense Due to Conversion Way and Structures Substation Operation Rail Crossing Protection Vehicle Maintenance Servicing of Vehicles Tires - Hotor Coach Equipment Operators vJages Fuel Oil or Power 21 amp PD Insurance ~Jorkmen I s Compensation Insurance Training Drivers for Conversion
Total Increase in Expense
Oper amp i1aint Expense - Case II (Line h +
Operating Taxes - Case II
(Red Figure)
(Z)
T2 T2
T3
Line 16)
D)
11887000 6691000
(5196000)
~ 8115900
t (11500) (42200) (55000)
(270900) (76900)
(1232900) (219800)
(liT shy
18314000 23h67000 5153000
amp 314~900
~
355000 h3300 32500
1154300 153000
-C5) (6)
2546000 32747000 2949000 33107000
403000 360000
S 1366000 ~gt 17 626800
If (144500) 1 ~ v$ ltW (42 200 ) - bull (55 000 ) 7HmiddotVj
19200 103300 M~ f~
3000 ( 30600) A N- i
32500 94400 15800 14600 (52206)
(1l1100) ~ [ (1200) Glh
30000 ~i
p (258200)
$17368600 r3
c~ 1786600 cr ill
I- CD
I- i-
TABLE 12
LOS ANGELES TRANSIT LINES ESTIMATED RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD ENDING OCTOBER 11 1955 CASE II - MOTOR COACH SUBSTITUTION - APPLICATION NO 15728
Table Case II-A Case II-B Line Item Refer- Present Proposed
Nos i FSles Faresect~nce
( 1) (2) (3) ( 4)
1 Vehicles Miles T 2 33107000 32817000
2 Operating Revenue T 10 $23147000 $25700000
O~erating E~ense
3 Operating and Maintenance Tll $17368600 $17234900 4 Depreciation T 8 1657000 1657000 5 Operating Taxes Tll 1786000 1837800 6 Wage Increase 434ZQQ 431 lt)00
Total $21246300 $211612007
8 Operating Income $ 1900700 $ 4538800 Other Inc amp Inc Deductions it 119
10 Net Income Before Income Taxes $ 1900700 $ 4538800 11 Income Taxes (State amp Federal) 214 200 2262 400 12 Net Operating Income $ 985800 $ 2275400 13 Allowance T 4 ~ 2090QO ~ 20200Q 14 Net Income $ 776800 $ 2066400
15 Rate Base T 8 $17840000 $17840000 16 Rate of Return 435 1158
012erating Ratio 17 Before Income Taxes 9179 8234 18 After Income Taxes amp Allowance 9664 9196
Not Appli cable
Allowance for interest and amortization related to streetcar abandonment of the past and for abandonmcnts proposed in Application No 35728
-33shy
LOS ANGELES TRANSIT Ln~S ESTH1ATE OF HILES TO i3LJ OERATEJJ FOR THE TlJ7IVE HONTHS-ENDING OCTOBER 31 1 q55
A UNDJilR PRESENT OPERATIONS B WITH HOTOR COACH SlfilSTITUTION AS PROPOSED IN APPLICATION NO 35n8
CASE I - PRESENT OPERlTI03S Present Fares Propose(l Fares
Estimatet Estimated Estimated Hiloago Estimated Est T)imirDl l4i Recluc-Estimatea Miles Miles (a) Decrease In Traffic Roduction Mileage of Traffiction Below Proposed
Item As Shown In Miles of the Decline Duo TrafficPresent FaresBelow TrafCol6 Due to Fares PDC Staff Dacrease9-15-54 to Docline (2) x At PrescntDiminution Col 6 x
________ (3) x (4) (100 - Col 5gt Fares (7) x (3) (100 - ColFJdlibLLJamp~Passengers ~-55 8) (1) (2) (3) (4) (5) (6) (7) (8) (9)
streetcar 12041861 30 43 L29 11587000 39 117 11748000
Trolley Coach 2546000 92573633 25f~ 43 1 075~b 3 0 975 2521000
Motor Coach (b) ]8li-~4 849 20 4 3~ 86 10 18106000 39 78 18163000bull I~
f-- ---J Total (b) 33080343 32739000 32432000
CASE II - OFSRATIONS PROPOSED IN APPLICATION NO 15728 Present Fares Proposed Fares
Item Estimatefl 1JIiles(a) As SnownEstimate~- Miles Present FarosEstimate~ Milos Proposed ___-~___------I=n~PDCStaff Exhibit No Col lOx (100 - Col 5) Faros Col llx (100-CQl~
(1) (10) (11) (12)
Stroetcar 6778211 6691000 6 61300O
Trolley Coach 2981376 2949000 2920000
Motor Coach (b) 236629)) 23459 1000 2276 7000
~Total (b) 33422542 33099000 32809000 ill r trl
(a) Based on th~ l ovel of traffic of Septombor 1954 I)
(b) To the estirl8ted milos shown here should bo a~dod 7500 Charter Miles
t-3
- - - - - - -
LOS kJGELES TRANSIT LINES Table 3 Sheet 1 of 3ESTIMATE OF RAIL OPERiTINGifiPENSES
CASE I - UNDER PRESENT OPERATIONS
Company Estfor 12 Mo~ Records Ending
Acct Jan-May 1954 103155 No I t e m Annualized Present Fares
Car Miles Way and Structures
1-24 ill Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 Superintendence 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conducting Transportation 63 Superintendence 64 Conductor Motormen etc 66 Car Service Emp 67 Miscel1 Car Service Exp 70 Car House Empa
Var other Cond Transp Accounts Total
Traffic 79 Superintendence 80 AdvertiSing
Total General
83 Gen Off - Sal and Exp 84 Gen Off Emp - Sal amp Exp 85 Gen Off a SuppJies amp Exps 88 Pensions
(93 Insurance PL amp PO (93 Insurance Workmens Comp (93 Insurance Other
Var Other General Accounts Total
Total Rail Operating Expense
Cents per Car Mile
12573226
$ 722615
$ 79078 759547 146522
$ 985141
$ 18190 174643 482945
23033 $ 698 811
$ 438900 3257666
104525 76608
351696 57240
$ 4286635
$ 6346 18353
$ 24699
$ 83645 123281
35570 4818S8 765019 46840 13664
287090 $ 1836967
$ 8554874
68004cent
ll887OOO
$ 722600
$ 79100 671200 147900
$ 898200
$) 18200 174600 547200
28900 $ 768900
$ 438900 2890900
104500 72200
351700 59600
$ 3917800
$ 6300 18400
$ 24700
$ 78900 123300 35600
456600 750400 ~ 43100 13700
282tl00 $ 1783700
$ 8115900
6827cent
Co
)
-
(1
I
flI
Car Miles Oper middot Exp Case I-B - Applicants Proposed Fares 11748000 $ 8047000 ~ Expenses Variable with Car Miles Wage rates used herein are those whieh
Ac30amp33 565 cent~ile prevailed immediately prior to 6154 59 460 The cost of the wage increase which 64 2432 tecomes fully effective on 12154 is 70 148 50 of total shown separately in Results of
Total 3605 centmile Operation table ~ See Table 5 for amounts under Proposed Fare
- 18 shy
- - - - - ------
LCB ANGELES TRANSIT LINFS Table 3 ESTIMATE OF TROLLEY COACH OPERATING EXPENSES Sheet 2 of 3
CASE I - UNDER PRESENT OPERATIONS
Acct No I t e m
Coach Miles Way and Structures
1-24 All Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 --superintendenoe 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conduoting Transportation 63 Superintendence 64 Operators Wages 70 Car House Employees
Var Other Condo Transp Accounts Total
Traffic 79 Superintendence 80 Advertising
Total General
83 Gen Off - Sal amp Exp 84 85
Gen Off Emp - Sal amp Exp Gen Off Supplies amp Exps
88 Pensions (93 Insurance PL amp PD (93 Insurance Worlanen s Comp (93 Insurance Other
Var Other General Accounts Total
Total Operating Expense
Cents per Mile
Case I-B - Applicants Proposed Fares
Expenses Variable with Coach Miles Acs 30amp33 477centmile
59 3038 64 2342 70 075 50 of total
Total 3232centjmi1e
~ See Table 5 for Amount Under Proposed Fares
Company Estfor 12 ME Recorda Ending Jan-May 1954 103155 I ~
Annualized Present Fares ~
2629188 2546000
$ 26518 $ 27000
$ 32628 $ 32600 125469 121400
11012 9600 $ 169109 $ 163600
$ 3770 $ 3800 35770 35BOO 75017 86000 1
8417 9000 $ 122974 $ 134600
$ 99161 $ 99200 612513 596300
38273 38300 21802 21500
$ 771749 $ 755300
$ 979 $ 1000 3588 3600
$ 4567 $ 4600
$ 15134 $ 12100 22990 23000 5669 5700
87614 83000 165089 97300 I
8516 8000 ~ 3054 3100
49076 48700 $ 357142 $ 280900 6
$1452059 $1366000
5523cent 5365cent
Coach Miles Oper Exp 2521000 $1355400 -- -0
Wage rates used herein are those which prevailed immedshyiately prior to 6154 The cost of the wage i~crease which becomes fully effective on 12154 is shown separately in Results of Operations table
- 19 shy
LOS ANGELES TRANS1 LINS TABLE 3 ESTIMATE OF MOTOR COAOH OPERATING EXPENSE Sheet 3 of 3
CASE I - UNDER PRESENT OPERATIONS
Company Estimate for Records 12 months
Jan - May Ending Acct 1954 103155 No I t e m Annualized Present Fares ~
Coach Miles 1832~158 18314000 Equipment Maintenance amp Gara~ Expense
4110 Supv - Shop and Gar $ 142788 $ 142800 4140-2 Repairs to Rev E~uipment 1097376 848800 4150 Servicing Rev Equipment 308373 307700 4160 Tires - Rev Equipment 123305 125200 Var Other Maint Accounts 151444 147300
Total $1823286 $1571800 Transportation Expense
4210 Supervision of Transp $ 487284 $ 487300 4220 Drivers I vrages 3767184 37589001= 3) bull
4230 522175 523800 )0
4240 Oil for Revenue Equipment 17256 19500 JOJ
Var Other Trans Exp Accounts 60153 58200 Total $4854052 $4847700
Traffic and Advertising 4470 Advertising $ 21593 $ 21600 Var Other Traffic Accounts 7)329 76500
Total $ 94922 $ 98100 Insurance
4510 Salaries and Expenses $ 18818 $ 18800 4520 Insurance PL amp PD 786322 542OOOp 4541 Insurance Workmens Compo 51458 50100p Var Other Insurance Exp 11357 11700 - shy
Fuel for Revenue Equipment _
J Total $ 867955 $ 622600 Administrative and General
4611-2 Gen Officers - Sal amp Exps $ 90806 $ 73500 4613-6 Gen Off Employees - Sal ampExp 138043 137000 4620 Law Expense 12910 16000 4630 Gen Office Supplies amp Exp 51689 44800 4640 Communication Expense 41143 45500 4652 Employees vlelfare 525737 498200 4655 Purchasing amp Stores 120790 120800 Var All Oth~r Adm amp Gen Exp 70090 53900
Total $1051208 $ 989700 Rents 15000 15000
Total Motor Coach Expense $8706423 $8144900 Cents per Mile 47middot50cent 4447cent
Coach Miles Ouer Exp Case I-B - Applicants Proposed Fares 18171 000 $8088900 -----shy
Expennes Variable with Milos Wage rates used herein are those which Ac 4140 463centmile prevailed immediately prior to 6154
4150 084 50 of total The cost of tho wage increase toJhich beshy4160 068 comes fully effective on 12154 is clnwn 4220 2052 separately in Results of Operation table 4230 286 4240 011
Total 2964centmile cent See Table 5 for Amount Under Proposed Fares 20 shy
TABLE 4
IDS ANGELES TRANSIT LUIES AMORTIZATION AND INTEREST ALLOWANCE
PAVING AND REMOVAL OBLIGATIONS - CASES I AND II APPLICATIONS NOS 35601 AND ~5728
A - Obligations from Abandonments Prior to 1954
Yearly Amortization $132000 Interest 16000
Total $148000
B - Obligations from Abandonment of Portions of IV and Rlt Lines (July 25 1954)
Yearly Amortization $ 4000 Interest 2000
Total $ 6000
C - Obligations from Abandonments as Proposed in Application No 35728 (November 1 154)
Yearly Amortization $ 35000 Interest 2JOOO
Total $ 55000
For Case I - Items A + B $154000
For Case II- Items A + B + C $209000
Includes cost of removal of electrical distribution system ($123700) and of substation equipment ($21600)
- 21 shy
LOS ANGELES TRAl~SIT Lli~S
RJBLIC LIABILITY PROPERTY DAl1AGE AND 1l0RIJftElI i S CCMFEi-TSATION EXPENSE illLATED TO SOUln~EbTT MILES Aim R3W-RLS PAS~lWEFS
CASE I - UNDER PRHSENT OPSHATIONS 1947 - 1950 Inc Jan-May Est FOr
Line Ito m 1951 1952 1953 195412 MosEnd No Total Av per Yr Annualizod 10 31 55
1 Lossos paid (n) $ 3890 $ 972 $ 1082 $ 902 $ 580 $ 262 2 Losses ostimato~ (a) 39 10 52 280 634 881 3 Reinsurance costs (a) 282 71 62 69 ____81 65 4 Total Losses_amp Insurance (a) $ 4211 $ 1053 $ 1196 $ 1251 $ 1295 $ 1208
5 Expenses paid (a) $ 1536 $ 384 $ 353 $ 385 $ 242 $ 170 6 Expenses estimated (a) 7 2 _ __ 11) 61 182 24S 7 Total expenses (a) $ 1543 $ middot 386 ~ 363 $ 446 $ 424 $415 8 Total LossesReiils amp Exp (a) $ 5754 $ 1439 1559 $ 1697 1719 $ 1622
(Lina 4- + 7) I 9 Number of claims filed 59991 14998 11588 11104 10246 9228
N
N 10 Vehiclo miles (millions) 153 4 384 356 351 346 336 I
11 Revenue Passon~crs (millions) 10093 2523 1924 1746 1661 1531
12 Loss Per 11i1 lliilos (4 ~ 10) ~27451 $27451 ~33596 $35~641 $37428 $35952 $35000
13 Loss Por i-Hllion Pass (4 11) $ 4172 $ 4172 ~ 6216 ) 7165 ~ 7797 $ 7890 $ 7500 14 Expensos por claim (7 f 9) h
ltfgt 2572 Y 25middot72 i) 3133 $ 4017 4138 $ 4497 $ 45 15 Claims per million miles (9 10) 391 391 326 316 296 275 280
16 Claims per million pass (9 11) 59 59 60 64 62 60 60
Ul p- CD (I)
(a) Thousand of dollars amp8
t-G o ~ H
J N
TABLE 5 LOS ANGELES TRANSIT LUTES Sheet 2 0 f 2
ESTIMATE OF PUBLIC LIABILITY AND PROPERTY DAMAGE AND WOBKMElJ 1 S COMPENSATION EXPENSES
FOR 12-MONTH PERIOD ENDING OCTOBER 31 1955 UNDER CASE I-A AND CASE I-B - PRESENT OPERATIONS ~lITH PRESENT amp PROPOSED FARES
Line 110
Cost Factors 1 Claims per million revenue passengers bull bull bull 2 raquo raquo vehicle miles bull bull bull 3 Expense per claim bull bull 4 Losses per million revenue passengers
raquo raquo vehicle miles bull bull bull bull 5 bull bull
60 280 45
7500 35000
Estimated Expense For PL and PD and Workmens Compensation Insurance
Case I-A Present Fares
6 Number of rovenue passengers (millions) 1395
7 Number of vehicle miles(millions) 3275
A - Basod on Number of Passengers 8 Losses 9 Expense
10 Total
B - Based 11 Losses 12 Expense 13 Total
$1046200 376700
$1422900
on Number of Vehicle Hiles $1146200
412700 $1558900
14 Average of A and B (PL amp PD and Workmen 6 Compo - $1490900
15 Workmens Compensation Insurance 101~200(a) 16 PL and PD Insurance 1389700
Distribution of Total PL amp PD Percent
17 Rail Operations 541 $ 750400 18 Trolloy Coach Operations 7 97300 19 Motor Coach Operations ~ -542000 20 Total 100 $1389700
Case I-B Proposed Fares
1341 3244
$1005700 362100
$1367800
$1135400 408700
$1544100
$1456000 100200 (b)
1355800
$ 732~100 94900
528800 $1355800
(a) Rail=$43lOO Trolley Coach=$8000 and Motor Coach=$50100
(b) Rail=$42 600_ Trolley Coach=$7 ~ 900 and Hotor Coach=$49 (00 _ --- I
- 23 shy
lA3LE 6
LOS ANGELES TRANSIT LINES ESTIHATE 041 OPERAT1NG TAXES
FOR 12 MONTHS ENDING OCTOBER 31 1955 CASE I - PRESENT OPERATIONS
APPLICATION NO 35601
Book Record Case I-A Case I-B L1ne I t e m 12 Months Present Proposed
No End 5-31~ Fares Fares(~ ) -=-----=-(3)~--=--~r(4~)~-(1)
1 City Franchise Taxes $ 473687 $ 434600 ~ 481900
2 Property Taxes-Ad Valorem 457963 435000 435000
3 Fuel and Oil Taxes 360580 337700 335100
4 Motor Vehicle License Taxes 136984 Ib8 900 168900
5 Transportation License 15600 21~00 (3 B of EHlshy
6 payroll Tuxes 265000 262500
Other raxes 7000 70007
Total ~ip 1 603 800
Net after weight fee credit
-24shy
LOS ANGELES TRANSIT LINES SSTIMATED RATE BASE AND DEPRECHTION EXPENSE
12 I~ONTHS ENDING OCTOBSR 31 1955 CISE I - VnTH PRY-SENT METHOD OF SERTICE - APPLICATION NO 35601
Gum October 31 1954 As of October 31 1955
Line
No Item (1)
Iccnunt Number Invcstment
(2)
(3) Reserve
(4)
Inve stmen t Less
Reserve (5)
Remaining
Life (6)
In
Inve s tIDen t Less
vestment Reserve Reserve (7) (8) (9)
Depreciation Expense RAte YeAr
(10) LAND
1 2
Rights of VVAY Other Lmd
502 503
S 426974 1931112
$ 426974 1931112
$ middot 426974 1931112
$ 426974 $ 1931 112
EQUIP~NT ONl~ITDEPRECI~TION
3 Auto Tr011ey pcc53033Jf~034288 $ 7167640 $ 6866648 V3rious $14034288 $ 8125353 $ 5908935 $ 957713
PROPERTY ON GROUP DEPRECIATIJN OverheAQs
4 Engineering 501 $ 44651 $ 44651 OrgAnizAtiorfshy 546 601749 601749~ 5
6 Interest 547 middot 916884 916884 7 Gnding 504 1117084 1118084 8 All Other 505-545 27021634 4 Base 27141634 _____ _________ 9 Suttotal
(Lines 4 to 8) $29702002 $22441215 ~ 7260787 $29823002 ~23516286 $ 6306716 $1081071_
10 Tr)W(Lines 123 amp 9) ~46094376 $29608855 ~16485521 $46215376 $]1641639 $14573737 $2038784
11 RATE BASE Use - $2039000 12 Avenge 0f $16485521amp ~1+573 737 $15530000 13 Work in Progress 100000 14 M1terials amp Supplies 735000 15 Bond Deposit - City Fnnchise 411000 16 Deposit for PL Insurance 150000
17 Totil RAte BAse $16926000 8 t ~
-It- rhjor PArt of Acct 546 is Supervisinn --J
-----
LOS ANGELES TRI-NSIT LINES ESTThiIiTED Ri1TE BASE AND DEPRECllTION EXPENSE
12 NiONTHS ENDING OCTOBER 31 1955 CIlSE II - SSUMING MOTOR COACH SUBSTITUTION ON CERTHN RAIL LINES AS PROPOSED m iiPPLICilTION NO 35728
---- --------------- As f Oct)ber 31 195amp As of Oct0ber 31 1955 Inve sUn8nt Investment IBpreciaticn
Line Account Le ss REffiainin~ Less ExpensE No Item Number Inve-stmcnt ReS8riTe Reserve Life Investment Reserve ~ Reserve Rate Yeqr
(T) T2) 0) (Ii) (5) (6) (7) (8) (9) (10)
Ll~ND
1 Other LAnd 503 ~ 1925510 $ Ci 1925510 ~ 1925510 $ 1925510
EQUIP1A~NT ON UNIT DEPRECIATION 2 itutoIrol1eyPCC 5))3338 $16392563 $ 9323673 $ 7068890 Various $16392563 ~10391985 $ 6000578 $1068312
BUILDJNGS 3 General Office-~ 522 $ 916255 $ 563016 ~ 353239 1917 Yrs$ 916255 $ 581446 $ 334809 $ 18430 4 Shops Grgs Admin 523 amp524 2733772 1013500 1720272 2320 Yrs 2733772 1087633 1646139 74133 5 Subtotal (Lines 3 amp4) 3650027 ~ 1576516 gt 2073511 igt 3650027 11669079 ~ 1980948) 92563
~ PROPERTY ON GROUP DEPRECIATION Overheaas
6 Engineering 501) 7 Organizqtion 5~6) tt 1563178 ~ 1563178 8 Interest 547) 9 Grlding 504)
10 Righ ts of Vgy 502 117922 117922 11 All Other 505-5h5 15 651 31 7 15 771 31 7 ~---7-=-~-- lr-r-----=~ -x---r---~ 12 Subtotal (Lines 6 to 11) )17332417 $11343350 ~ 5989067 1117 Yramp$17452417 ~11833307 ~ 5619110 ~ 495957
13 Totql(Lines 125 amp 12) ~39300517 822243539 ~17056978 839420517 023894371 015526146 01656832
14 RATE BASE Use ~1657OOO 15 Avcr~ge of ~1705697B qnd )15526146 016292000 16 Nwk in Progre s s 100000 Am)unts sh)wn include lpplic3ble -werheqds fr)ll 17 Haterills amp Supplies 735000 Accnunts 546 amp 541 18 Bond Deposit - City Frqnchisc 411000 cent Investment ~d depreciation reserve assumes all 19 Deposit for PL Insurqnce 150000 retirements for the lines to be cmiddotmvcrted 1--3
20 Use Vqlue - Fully Depreciated CJtches 1)2000 ~re m~de 3S ) f November 1 1954 qnd that the ~ full unnunt middotf r e tirements qre charged to the EJ
21 Tot-l R1te Blse ~17840000 reserve co
10S ANG3LSS TRANSIT LI~S
INVESTWNT DSPRCIATICN R~SsRVS AND EXPSNS~ FOR ~QUIPMLNT ON UNIT PLAN DEPR3CHTION
CASES I AND II APPLICATIONS NO 35601 AND 35728
As of Oct0ber 31 ffi4 As of October 31 1955 Line NoTotal Investment fnvestment Depre No Item of Life Investment Reserve Less Investment Reserve Less Expense
Units Reserve Reserve Rate Year (1) (2) (J) 4) - ---(~ CD) en -- --8)----- -(9j- (10)
For Case I 1 Motor Coach Groups
62006300 66-6900 hOh 12 Yrs$6421159 $4728599 ~1692560 ~ 6421159 $ 500 1011 ~1330lh8 $ 362412 2 5000 6hoo 75 10 II 1486387 77~175 711212 1h86387 92h851 561536 149676 3 Coaches on order 100 10 II 2285400 2285400 2285400 2265J~0 2058860 226540
II
I 5 Automobiles 51 V3r 99485 50916 h8569 99485 66540 329h5 15624 ~ 6 Trucks amp Service Cars 56 II 280584 250572 30012 280584 265813 lh771 15241 I 7 Misc( Fare BoxesMotors) 170193 115191 55002 170193 122271 47922 7080
h Trolley Coaches 110 15 2108h09 908560 1199849 2108h09 1Oh6116 1062293 137556
8 Total of Lines 1 to 7 ~12851617 ~~6829013 ~02260h ~12i351617 ~ 77h3lh2 $5108475 $ 914129
9 PCC Rail Cars 40 25 rsJ~ 1182671 ) 338627 gt 84h04h 1182671 ~ 382211 ~ 800460 $ h3581~
10 Case I - Line 8 + Line 9 $14034288 $7167640 $6866648 ~14034288 $ 8125353 t5908935 $ 957713
For Case II
11 6000 amp 6100 Series MC 150 FD ~ 2092963 $2070463 ~ 22500 $ 2092963 $ 2070463 $ 22500 12 Work orders on 6000s
amp 6100 s 3 Yrs 265312 61860 203452 265312 144007 121305 $ 82147 13 PCC Rail Cars 401717 1182671 362 337__ ~~~ 334 1182671 43473 ___748298 72036
14 Case II - Lines 8 + 11+ 12+ 13 ~16392563 9323673 n068890 $16392563 ttl0391985 ~6ooo578 ~1068312
t-3
125 other PCC Cars are in Group Depreciation Schedule G ~
Note579 motor coaches under Case I and 729 under Case II D
LOS AlJGELES TRANSIT LnlES TABLE 10 ESTIMATE]) RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD E1TDUTG OCTOBER 31 1955 CASE I - UNDER PRESENT OPERATIONS
12 Months Jan-June
Line No Item
Tab1e Ending or May 31 1954 Page Fe fer
(2)
Book Record
(])
1954 Annualized
Book Record
(4)
Case I-A Present
Fares (5 )
Case I-B Applicant l s
Proposed Fares
(6)
1 Vehicle Miles T2 34036066 33569520 32747000 32440000
Revenue 2 3 4 5
Passenger Revenue Unredeemed Tokens Other Revenue Total
T1 P7 P7
$24849150
122402 $25044557
$24517866
183810 $24 701676
$22940000 $25513000 20000
1821 000 182 000 $23147000 $25700000
6 7 8
Operating Expenses Rail Trolley Coach Motor Coach
T3 T3 T3
$ 8493744 1442232 8622956
$ 8575232 1451430 8 n6470
$ 8115900 $ 8047000 1366000 1355400 8144200 8088900
9 10 11 12 13
Sub-Total Depreciation Operating Taxes Wage Increase Total
T7 T6
18563932 2176608 1676358
$22416898
18743132 2185804 1760600
$22689536
17626800 17491300~ 2039000 2039000 1663800 1711700
439800 436500 $21769400 $21678500
14 Operating Income $ 2627659 $ 20J2JJQ $ 1377600 $ 4021500 15 Other Inc amp Inc Deduct 21258 (9328)
16 Net Inc Before IncTaxes 2635217 2002742 1377600 4021500 I 17 Income Taxes (St ampFe~) 1302758 1026568 647500 1 999 000 18 Net Operating Income 1332459 976174 730100 2022 500 i 19 Allowance T4 112216 80752 1541000 1541000 20 Net Income $ 1220243 $ 895422 $576100 $ 1868500
21 Rate Base T7 $17393000 $16727000 $16926000 $16926000 22 Rate of Return 70~ 535 340 1104
Operating Ratio 23 Before Income Taxes 9405 8435 24 After Inc Taxes ampAllow 9751 927)
Not Applicable
Computed by PUC Staff Allowance for interest and amortization of abandoned property (Red ]figure)
- 31 shy
IDS ill~GElES TRANSIT LINES ESTIMATE OF OPERATllIG EX-degENSES JuID TAXES
FOR 12 f10NTHS ENDING OCTOBER 31 1955 CASE II - KOTOR COACH Sl~STITUTION - j~PLrCATION NO 35728
Table or Line Page Hotor Trolley
~To Item Reference Streetcar Coach Coach Total
l 2 3
4
I S
rv 6VJ
I 7 8 9
10 ll 12 13 Ih 15 16
17
13
(ll- -- shy
Vehicle Miles Case I - Present Operation Case II - Proposed Operation
Increase in i1iles
Opere amp I1aint Expense - Case I
Changes in Expense Due to Conversion Way and Structures Substation Operation Rail Crossing Protection Vehicle Maintenance Servicing of Vehicles Tires - Hotor Coach Equipment Operators vJages Fuel Oil or Power 21 amp PD Insurance ~Jorkmen I s Compensation Insurance Training Drivers for Conversion
Total Increase in Expense
Oper amp i1aint Expense - Case II (Line h +
Operating Taxes - Case II
(Red Figure)
(Z)
T2 T2
T3
Line 16)
D)
11887000 6691000
(5196000)
~ 8115900
t (11500) (42200) (55000)
(270900) (76900)
(1232900) (219800)
(liT shy
18314000 23h67000 5153000
amp 314~900
~
355000 h3300 32500
1154300 153000
-C5) (6)
2546000 32747000 2949000 33107000
403000 360000
S 1366000 ~gt 17 626800
If (144500) 1 ~ v$ ltW (42 200 ) - bull (55 000 ) 7HmiddotVj
19200 103300 M~ f~
3000 ( 30600) A N- i
32500 94400 15800 14600 (52206)
(1l1100) ~ [ (1200) Glh
30000 ~i
p (258200)
$17368600 r3
c~ 1786600 cr ill
I- CD
I- i-
TABLE 12
LOS ANGELES TRANSIT LINES ESTIMATED RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD ENDING OCTOBER 11 1955 CASE II - MOTOR COACH SUBSTITUTION - APPLICATION NO 15728
Table Case II-A Case II-B Line Item Refer- Present Proposed
Nos i FSles Faresect~nce
( 1) (2) (3) ( 4)
1 Vehicles Miles T 2 33107000 32817000
2 Operating Revenue T 10 $23147000 $25700000
O~erating E~ense
3 Operating and Maintenance Tll $17368600 $17234900 4 Depreciation T 8 1657000 1657000 5 Operating Taxes Tll 1786000 1837800 6 Wage Increase 434ZQQ 431 lt)00
Total $21246300 $211612007
8 Operating Income $ 1900700 $ 4538800 Other Inc amp Inc Deductions it 119
10 Net Income Before Income Taxes $ 1900700 $ 4538800 11 Income Taxes (State amp Federal) 214 200 2262 400 12 Net Operating Income $ 985800 $ 2275400 13 Allowance T 4 ~ 2090QO ~ 20200Q 14 Net Income $ 776800 $ 2066400
15 Rate Base T 8 $17840000 $17840000 16 Rate of Return 435 1158
012erating Ratio 17 Before Income Taxes 9179 8234 18 After Income Taxes amp Allowance 9664 9196
Not Appli cable
Allowance for interest and amortization related to streetcar abandonment of the past and for abandonmcnts proposed in Application No 35728
-33shy
LOS ANGELES TRANSIT Ln~S ESTH1ATE OF HILES TO i3LJ OERATEJJ FOR THE TlJ7IVE HONTHS-ENDING OCTOBER 31 1 q55
A UNDJilR PRESENT OPERATIONS B WITH HOTOR COACH SlfilSTITUTION AS PROPOSED IN APPLICATION NO 35n8
CASE I - PRESENT OPERlTI03S Present Fares Propose(l Fares
Estimatet Estimated Estimated Hiloago Estimated Est T)imirDl l4i Recluc-Estimatea Miles Miles (a) Decrease In Traffic Roduction Mileage of Traffiction Below Proposed
Item As Shown In Miles of the Decline Duo TrafficPresent FaresBelow TrafCol6 Due to Fares PDC Staff Dacrease9-15-54 to Docline (2) x At PrescntDiminution Col 6 x
________ (3) x (4) (100 - Col 5gt Fares (7) x (3) (100 - ColFJdlibLLJamp~Passengers ~-55 8) (1) (2) (3) (4) (5) (6) (7) (8) (9)
streetcar 12041861 30 43 L29 11587000 39 117 11748000
Trolley Coach 2546000 92573633 25f~ 43 1 075~b 3 0 975 2521000
Motor Coach (b) ]8li-~4 849 20 4 3~ 86 10 18106000 39 78 18163000bull I~
f-- ---J Total (b) 33080343 32739000 32432000
CASE II - OFSRATIONS PROPOSED IN APPLICATION NO 15728 Present Fares Proposed Fares
Item Estimatefl 1JIiles(a) As SnownEstimate~- Miles Present FarosEstimate~ Milos Proposed ___-~___------I=n~PDCStaff Exhibit No Col lOx (100 - Col 5) Faros Col llx (100-CQl~
(1) (10) (11) (12)
Stroetcar 6778211 6691000 6 61300O
Trolley Coach 2981376 2949000 2920000
Motor Coach (b) 236629)) 23459 1000 2276 7000
~Total (b) 33422542 33099000 32809000 ill r trl
(a) Based on th~ l ovel of traffic of Septombor 1954 I)
(b) To the estirl8ted milos shown here should bo a~dod 7500 Charter Miles
t-3
- - - - - - -
LOS kJGELES TRANSIT LINES Table 3 Sheet 1 of 3ESTIMATE OF RAIL OPERiTINGifiPENSES
CASE I - UNDER PRESENT OPERATIONS
Company Estfor 12 Mo~ Records Ending
Acct Jan-May 1954 103155 No I t e m Annualized Present Fares
Car Miles Way and Structures
1-24 ill Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 Superintendence 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conducting Transportation 63 Superintendence 64 Conductor Motormen etc 66 Car Service Emp 67 Miscel1 Car Service Exp 70 Car House Empa
Var other Cond Transp Accounts Total
Traffic 79 Superintendence 80 AdvertiSing
Total General
83 Gen Off - Sal and Exp 84 Gen Off Emp - Sal amp Exp 85 Gen Off a SuppJies amp Exps 88 Pensions
(93 Insurance PL amp PO (93 Insurance Workmens Comp (93 Insurance Other
Var Other General Accounts Total
Total Rail Operating Expense
Cents per Car Mile
12573226
$ 722615
$ 79078 759547 146522
$ 985141
$ 18190 174643 482945
23033 $ 698 811
$ 438900 3257666
104525 76608
351696 57240
$ 4286635
$ 6346 18353
$ 24699
$ 83645 123281
35570 4818S8 765019 46840 13664
287090 $ 1836967
$ 8554874
68004cent
ll887OOO
$ 722600
$ 79100 671200 147900
$ 898200
$) 18200 174600 547200
28900 $ 768900
$ 438900 2890900
104500 72200
351700 59600
$ 3917800
$ 6300 18400
$ 24700
$ 78900 123300 35600
456600 750400 ~ 43100 13700
282tl00 $ 1783700
$ 8115900
6827cent
Co
)
-
(1
I
flI
Car Miles Oper middot Exp Case I-B - Applicants Proposed Fares 11748000 $ 8047000 ~ Expenses Variable with Car Miles Wage rates used herein are those whieh
Ac30amp33 565 cent~ile prevailed immediately prior to 6154 59 460 The cost of the wage increase which 64 2432 tecomes fully effective on 12154 is 70 148 50 of total shown separately in Results of
Total 3605 centmile Operation table ~ See Table 5 for amounts under Proposed Fare
- 18 shy
- - - - - ------
LCB ANGELES TRANSIT LINFS Table 3 ESTIMATE OF TROLLEY COACH OPERATING EXPENSES Sheet 2 of 3
CASE I - UNDER PRESENT OPERATIONS
Acct No I t e m
Coach Miles Way and Structures
1-24 All Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 --superintendenoe 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conduoting Transportation 63 Superintendence 64 Operators Wages 70 Car House Employees
Var Other Condo Transp Accounts Total
Traffic 79 Superintendence 80 Advertising
Total General
83 Gen Off - Sal amp Exp 84 85
Gen Off Emp - Sal amp Exp Gen Off Supplies amp Exps
88 Pensions (93 Insurance PL amp PD (93 Insurance Worlanen s Comp (93 Insurance Other
Var Other General Accounts Total
Total Operating Expense
Cents per Mile
Case I-B - Applicants Proposed Fares
Expenses Variable with Coach Miles Acs 30amp33 477centmile
59 3038 64 2342 70 075 50 of total
Total 3232centjmi1e
~ See Table 5 for Amount Under Proposed Fares
Company Estfor 12 ME Recorda Ending Jan-May 1954 103155 I ~
Annualized Present Fares ~
2629188 2546000
$ 26518 $ 27000
$ 32628 $ 32600 125469 121400
11012 9600 $ 169109 $ 163600
$ 3770 $ 3800 35770 35BOO 75017 86000 1
8417 9000 $ 122974 $ 134600
$ 99161 $ 99200 612513 596300
38273 38300 21802 21500
$ 771749 $ 755300
$ 979 $ 1000 3588 3600
$ 4567 $ 4600
$ 15134 $ 12100 22990 23000 5669 5700
87614 83000 165089 97300 I
8516 8000 ~ 3054 3100
49076 48700 $ 357142 $ 280900 6
$1452059 $1366000
5523cent 5365cent
Coach Miles Oper Exp 2521000 $1355400 -- -0
Wage rates used herein are those which prevailed immedshyiately prior to 6154 The cost of the wage i~crease which becomes fully effective on 12154 is shown separately in Results of Operations table
- 19 shy
LOS ANGELES TRANS1 LINS TABLE 3 ESTIMATE OF MOTOR COAOH OPERATING EXPENSE Sheet 3 of 3
CASE I - UNDER PRESENT OPERATIONS
Company Estimate for Records 12 months
Jan - May Ending Acct 1954 103155 No I t e m Annualized Present Fares ~
Coach Miles 1832~158 18314000 Equipment Maintenance amp Gara~ Expense
4110 Supv - Shop and Gar $ 142788 $ 142800 4140-2 Repairs to Rev E~uipment 1097376 848800 4150 Servicing Rev Equipment 308373 307700 4160 Tires - Rev Equipment 123305 125200 Var Other Maint Accounts 151444 147300
Total $1823286 $1571800 Transportation Expense
4210 Supervision of Transp $ 487284 $ 487300 4220 Drivers I vrages 3767184 37589001= 3) bull
4230 522175 523800 )0
4240 Oil for Revenue Equipment 17256 19500 JOJ
Var Other Trans Exp Accounts 60153 58200 Total $4854052 $4847700
Traffic and Advertising 4470 Advertising $ 21593 $ 21600 Var Other Traffic Accounts 7)329 76500
Total $ 94922 $ 98100 Insurance
4510 Salaries and Expenses $ 18818 $ 18800 4520 Insurance PL amp PD 786322 542OOOp 4541 Insurance Workmens Compo 51458 50100p Var Other Insurance Exp 11357 11700 - shy
Fuel for Revenue Equipment _
J Total $ 867955 $ 622600 Administrative and General
4611-2 Gen Officers - Sal amp Exps $ 90806 $ 73500 4613-6 Gen Off Employees - Sal ampExp 138043 137000 4620 Law Expense 12910 16000 4630 Gen Office Supplies amp Exp 51689 44800 4640 Communication Expense 41143 45500 4652 Employees vlelfare 525737 498200 4655 Purchasing amp Stores 120790 120800 Var All Oth~r Adm amp Gen Exp 70090 53900
Total $1051208 $ 989700 Rents 15000 15000
Total Motor Coach Expense $8706423 $8144900 Cents per Mile 47middot50cent 4447cent
Coach Miles Ouer Exp Case I-B - Applicants Proposed Fares 18171 000 $8088900 -----shy
Expennes Variable with Milos Wage rates used herein are those which Ac 4140 463centmile prevailed immediately prior to 6154
4150 084 50 of total The cost of tho wage increase toJhich beshy4160 068 comes fully effective on 12154 is clnwn 4220 2052 separately in Results of Operation table 4230 286 4240 011
Total 2964centmile cent See Table 5 for Amount Under Proposed Fares 20 shy
TABLE 4
IDS ANGELES TRANSIT LUIES AMORTIZATION AND INTEREST ALLOWANCE
PAVING AND REMOVAL OBLIGATIONS - CASES I AND II APPLICATIONS NOS 35601 AND ~5728
A - Obligations from Abandonments Prior to 1954
Yearly Amortization $132000 Interest 16000
Total $148000
B - Obligations from Abandonment of Portions of IV and Rlt Lines (July 25 1954)
Yearly Amortization $ 4000 Interest 2000
Total $ 6000
C - Obligations from Abandonments as Proposed in Application No 35728 (November 1 154)
Yearly Amortization $ 35000 Interest 2JOOO
Total $ 55000
For Case I - Items A + B $154000
For Case II- Items A + B + C $209000
Includes cost of removal of electrical distribution system ($123700) and of substation equipment ($21600)
- 21 shy
LOS ANGELES TRAl~SIT Lli~S
RJBLIC LIABILITY PROPERTY DAl1AGE AND 1l0RIJftElI i S CCMFEi-TSATION EXPENSE illLATED TO SOUln~EbTT MILES Aim R3W-RLS PAS~lWEFS
CASE I - UNDER PRHSENT OPSHATIONS 1947 - 1950 Inc Jan-May Est FOr
Line Ito m 1951 1952 1953 195412 MosEnd No Total Av per Yr Annualizod 10 31 55
1 Lossos paid (n) $ 3890 $ 972 $ 1082 $ 902 $ 580 $ 262 2 Losses ostimato~ (a) 39 10 52 280 634 881 3 Reinsurance costs (a) 282 71 62 69 ____81 65 4 Total Losses_amp Insurance (a) $ 4211 $ 1053 $ 1196 $ 1251 $ 1295 $ 1208
5 Expenses paid (a) $ 1536 $ 384 $ 353 $ 385 $ 242 $ 170 6 Expenses estimated (a) 7 2 _ __ 11) 61 182 24S 7 Total expenses (a) $ 1543 $ middot 386 ~ 363 $ 446 $ 424 $415 8 Total LossesReiils amp Exp (a) $ 5754 $ 1439 1559 $ 1697 1719 $ 1622
(Lina 4- + 7) I 9 Number of claims filed 59991 14998 11588 11104 10246 9228
N
N 10 Vehiclo miles (millions) 153 4 384 356 351 346 336 I
11 Revenue Passon~crs (millions) 10093 2523 1924 1746 1661 1531
12 Loss Per 11i1 lliilos (4 ~ 10) ~27451 $27451 ~33596 $35~641 $37428 $35952 $35000
13 Loss Por i-Hllion Pass (4 11) $ 4172 $ 4172 ~ 6216 ) 7165 ~ 7797 $ 7890 $ 7500 14 Expensos por claim (7 f 9) h
ltfgt 2572 Y 25middot72 i) 3133 $ 4017 4138 $ 4497 $ 45 15 Claims per million miles (9 10) 391 391 326 316 296 275 280
16 Claims per million pass (9 11) 59 59 60 64 62 60 60
Ul p- CD (I)
(a) Thousand of dollars amp8
t-G o ~ H
J N
TABLE 5 LOS ANGELES TRANSIT LUTES Sheet 2 0 f 2
ESTIMATE OF PUBLIC LIABILITY AND PROPERTY DAMAGE AND WOBKMElJ 1 S COMPENSATION EXPENSES
FOR 12-MONTH PERIOD ENDING OCTOBER 31 1955 UNDER CASE I-A AND CASE I-B - PRESENT OPERATIONS ~lITH PRESENT amp PROPOSED FARES
Line 110
Cost Factors 1 Claims per million revenue passengers bull bull bull 2 raquo raquo vehicle miles bull bull bull 3 Expense per claim bull bull 4 Losses per million revenue passengers
raquo raquo vehicle miles bull bull bull bull 5 bull bull
60 280 45
7500 35000
Estimated Expense For PL and PD and Workmens Compensation Insurance
Case I-A Present Fares
6 Number of rovenue passengers (millions) 1395
7 Number of vehicle miles(millions) 3275
A - Basod on Number of Passengers 8 Losses 9 Expense
10 Total
B - Based 11 Losses 12 Expense 13 Total
$1046200 376700
$1422900
on Number of Vehicle Hiles $1146200
412700 $1558900
14 Average of A and B (PL amp PD and Workmen 6 Compo - $1490900
15 Workmens Compensation Insurance 101~200(a) 16 PL and PD Insurance 1389700
Distribution of Total PL amp PD Percent
17 Rail Operations 541 $ 750400 18 Trolloy Coach Operations 7 97300 19 Motor Coach Operations ~ -542000 20 Total 100 $1389700
Case I-B Proposed Fares
1341 3244
$1005700 362100
$1367800
$1135400 408700
$1544100
$1456000 100200 (b)
1355800
$ 732~100 94900
528800 $1355800
(a) Rail=$43lOO Trolley Coach=$8000 and Motor Coach=$50100
(b) Rail=$42 600_ Trolley Coach=$7 ~ 900 and Hotor Coach=$49 (00 _ --- I
- 23 shy
lA3LE 6
LOS ANGELES TRANSIT LINES ESTIHATE 041 OPERAT1NG TAXES
FOR 12 MONTHS ENDING OCTOBER 31 1955 CASE I - PRESENT OPERATIONS
APPLICATION NO 35601
Book Record Case I-A Case I-B L1ne I t e m 12 Months Present Proposed
No End 5-31~ Fares Fares(~ ) -=-----=-(3)~--=--~r(4~)~-(1)
1 City Franchise Taxes $ 473687 $ 434600 ~ 481900
2 Property Taxes-Ad Valorem 457963 435000 435000
3 Fuel and Oil Taxes 360580 337700 335100
4 Motor Vehicle License Taxes 136984 Ib8 900 168900
5 Transportation License 15600 21~00 (3 B of EHlshy
6 payroll Tuxes 265000 262500
Other raxes 7000 70007
Total ~ip 1 603 800
Net after weight fee credit
-24shy
-----
LOS ANGELES TRI-NSIT LINES ESTThiIiTED Ri1TE BASE AND DEPRECllTION EXPENSE
12 NiONTHS ENDING OCTOBER 31 1955 CIlSE II - SSUMING MOTOR COACH SUBSTITUTION ON CERTHN RAIL LINES AS PROPOSED m iiPPLICilTION NO 35728
---- --------------- As f Oct)ber 31 195amp As of Oct0ber 31 1955 Inve sUn8nt Investment IBpreciaticn
Line Account Le ss REffiainin~ Less ExpensE No Item Number Inve-stmcnt ReS8riTe Reserve Life Investment Reserve ~ Reserve Rate Yeqr
(T) T2) 0) (Ii) (5) (6) (7) (8) (9) (10)
Ll~ND
1 Other LAnd 503 ~ 1925510 $ Ci 1925510 ~ 1925510 $ 1925510
EQUIP1A~NT ON UNIT DEPRECIATION 2 itutoIrol1eyPCC 5))3338 $16392563 $ 9323673 $ 7068890 Various $16392563 ~10391985 $ 6000578 $1068312
BUILDJNGS 3 General Office-~ 522 $ 916255 $ 563016 ~ 353239 1917 Yrs$ 916255 $ 581446 $ 334809 $ 18430 4 Shops Grgs Admin 523 amp524 2733772 1013500 1720272 2320 Yrs 2733772 1087633 1646139 74133 5 Subtotal (Lines 3 amp4) 3650027 ~ 1576516 gt 2073511 igt 3650027 11669079 ~ 1980948) 92563
~ PROPERTY ON GROUP DEPRECIATION Overheaas
6 Engineering 501) 7 Organizqtion 5~6) tt 1563178 ~ 1563178 8 Interest 547) 9 Grlding 504)
10 Righ ts of Vgy 502 117922 117922 11 All Other 505-5h5 15 651 31 7 15 771 31 7 ~---7-=-~-- lr-r-----=~ -x---r---~ 12 Subtotal (Lines 6 to 11) )17332417 $11343350 ~ 5989067 1117 Yramp$17452417 ~11833307 ~ 5619110 ~ 495957
13 Totql(Lines 125 amp 12) ~39300517 822243539 ~17056978 839420517 023894371 015526146 01656832
14 RATE BASE Use ~1657OOO 15 Avcr~ge of ~1705697B qnd )15526146 016292000 16 Nwk in Progre s s 100000 Am)unts sh)wn include lpplic3ble -werheqds fr)ll 17 Haterills amp Supplies 735000 Accnunts 546 amp 541 18 Bond Deposit - City Frqnchisc 411000 cent Investment ~d depreciation reserve assumes all 19 Deposit for PL Insurqnce 150000 retirements for the lines to be cmiddotmvcrted 1--3
20 Use Vqlue - Fully Depreciated CJtches 1)2000 ~re m~de 3S ) f November 1 1954 qnd that the ~ full unnunt middotf r e tirements qre charged to the EJ
21 Tot-l R1te Blse ~17840000 reserve co
10S ANG3LSS TRANSIT LI~S
INVESTWNT DSPRCIATICN R~SsRVS AND EXPSNS~ FOR ~QUIPMLNT ON UNIT PLAN DEPR3CHTION
CASES I AND II APPLICATIONS NO 35601 AND 35728
As of Oct0ber 31 ffi4 As of October 31 1955 Line NoTotal Investment fnvestment Depre No Item of Life Investment Reserve Less Investment Reserve Less Expense
Units Reserve Reserve Rate Year (1) (2) (J) 4) - ---(~ CD) en -- --8)----- -(9j- (10)
For Case I 1 Motor Coach Groups
62006300 66-6900 hOh 12 Yrs$6421159 $4728599 ~1692560 ~ 6421159 $ 500 1011 ~1330lh8 $ 362412 2 5000 6hoo 75 10 II 1486387 77~175 711212 1h86387 92h851 561536 149676 3 Coaches on order 100 10 II 2285400 2285400 2285400 2265J~0 2058860 226540
II
I 5 Automobiles 51 V3r 99485 50916 h8569 99485 66540 329h5 15624 ~ 6 Trucks amp Service Cars 56 II 280584 250572 30012 280584 265813 lh771 15241 I 7 Misc( Fare BoxesMotors) 170193 115191 55002 170193 122271 47922 7080
h Trolley Coaches 110 15 2108h09 908560 1199849 2108h09 1Oh6116 1062293 137556
8 Total of Lines 1 to 7 ~12851617 ~~6829013 ~02260h ~12i351617 ~ 77h3lh2 $5108475 $ 914129
9 PCC Rail Cars 40 25 rsJ~ 1182671 ) 338627 gt 84h04h 1182671 ~ 382211 ~ 800460 $ h3581~
10 Case I - Line 8 + Line 9 $14034288 $7167640 $6866648 ~14034288 $ 8125353 t5908935 $ 957713
For Case II
11 6000 amp 6100 Series MC 150 FD ~ 2092963 $2070463 ~ 22500 $ 2092963 $ 2070463 $ 22500 12 Work orders on 6000s
amp 6100 s 3 Yrs 265312 61860 203452 265312 144007 121305 $ 82147 13 PCC Rail Cars 401717 1182671 362 337__ ~~~ 334 1182671 43473 ___748298 72036
14 Case II - Lines 8 + 11+ 12+ 13 ~16392563 9323673 n068890 $16392563 ttl0391985 ~6ooo578 ~1068312
t-3
125 other PCC Cars are in Group Depreciation Schedule G ~
Note579 motor coaches under Case I and 729 under Case II D
LOS AlJGELES TRANSIT LnlES TABLE 10 ESTIMATE]) RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD E1TDUTG OCTOBER 31 1955 CASE I - UNDER PRESENT OPERATIONS
12 Months Jan-June
Line No Item
Tab1e Ending or May 31 1954 Page Fe fer
(2)
Book Record
(])
1954 Annualized
Book Record
(4)
Case I-A Present
Fares (5 )
Case I-B Applicant l s
Proposed Fares
(6)
1 Vehicle Miles T2 34036066 33569520 32747000 32440000
Revenue 2 3 4 5
Passenger Revenue Unredeemed Tokens Other Revenue Total
T1 P7 P7
$24849150
122402 $25044557
$24517866
183810 $24 701676
$22940000 $25513000 20000
1821 000 182 000 $23147000 $25700000
6 7 8
Operating Expenses Rail Trolley Coach Motor Coach
T3 T3 T3
$ 8493744 1442232 8622956
$ 8575232 1451430 8 n6470
$ 8115900 $ 8047000 1366000 1355400 8144200 8088900
9 10 11 12 13
Sub-Total Depreciation Operating Taxes Wage Increase Total
T7 T6
18563932 2176608 1676358
$22416898
18743132 2185804 1760600
$22689536
17626800 17491300~ 2039000 2039000 1663800 1711700
439800 436500 $21769400 $21678500
14 Operating Income $ 2627659 $ 20J2JJQ $ 1377600 $ 4021500 15 Other Inc amp Inc Deduct 21258 (9328)
16 Net Inc Before IncTaxes 2635217 2002742 1377600 4021500 I 17 Income Taxes (St ampFe~) 1302758 1026568 647500 1 999 000 18 Net Operating Income 1332459 976174 730100 2022 500 i 19 Allowance T4 112216 80752 1541000 1541000 20 Net Income $ 1220243 $ 895422 $576100 $ 1868500
21 Rate Base T7 $17393000 $16727000 $16926000 $16926000 22 Rate of Return 70~ 535 340 1104
Operating Ratio 23 Before Income Taxes 9405 8435 24 After Inc Taxes ampAllow 9751 927)
Not Applicable
Computed by PUC Staff Allowance for interest and amortization of abandoned property (Red ]figure)
- 31 shy
IDS ill~GElES TRANSIT LINES ESTIMATE OF OPERATllIG EX-degENSES JuID TAXES
FOR 12 f10NTHS ENDING OCTOBER 31 1955 CASE II - KOTOR COACH Sl~STITUTION - j~PLrCATION NO 35728
Table or Line Page Hotor Trolley
~To Item Reference Streetcar Coach Coach Total
l 2 3
4
I S
rv 6VJ
I 7 8 9
10 ll 12 13 Ih 15 16
17
13
(ll- -- shy
Vehicle Miles Case I - Present Operation Case II - Proposed Operation
Increase in i1iles
Opere amp I1aint Expense - Case I
Changes in Expense Due to Conversion Way and Structures Substation Operation Rail Crossing Protection Vehicle Maintenance Servicing of Vehicles Tires - Hotor Coach Equipment Operators vJages Fuel Oil or Power 21 amp PD Insurance ~Jorkmen I s Compensation Insurance Training Drivers for Conversion
Total Increase in Expense
Oper amp i1aint Expense - Case II (Line h +
Operating Taxes - Case II
(Red Figure)
(Z)
T2 T2
T3
Line 16)
D)
11887000 6691000
(5196000)
~ 8115900
t (11500) (42200) (55000)
(270900) (76900)
(1232900) (219800)
(liT shy
18314000 23h67000 5153000
amp 314~900
~
355000 h3300 32500
1154300 153000
-C5) (6)
2546000 32747000 2949000 33107000
403000 360000
S 1366000 ~gt 17 626800
If (144500) 1 ~ v$ ltW (42 200 ) - bull (55 000 ) 7HmiddotVj
19200 103300 M~ f~
3000 ( 30600) A N- i
32500 94400 15800 14600 (52206)
(1l1100) ~ [ (1200) Glh
30000 ~i
p (258200)
$17368600 r3
c~ 1786600 cr ill
I- CD
I- i-
TABLE 12
LOS ANGELES TRANSIT LINES ESTIMATED RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD ENDING OCTOBER 11 1955 CASE II - MOTOR COACH SUBSTITUTION - APPLICATION NO 15728
Table Case II-A Case II-B Line Item Refer- Present Proposed
Nos i FSles Faresect~nce
( 1) (2) (3) ( 4)
1 Vehicles Miles T 2 33107000 32817000
2 Operating Revenue T 10 $23147000 $25700000
O~erating E~ense
3 Operating and Maintenance Tll $17368600 $17234900 4 Depreciation T 8 1657000 1657000 5 Operating Taxes Tll 1786000 1837800 6 Wage Increase 434ZQQ 431 lt)00
Total $21246300 $211612007
8 Operating Income $ 1900700 $ 4538800 Other Inc amp Inc Deductions it 119
10 Net Income Before Income Taxes $ 1900700 $ 4538800 11 Income Taxes (State amp Federal) 214 200 2262 400 12 Net Operating Income $ 985800 $ 2275400 13 Allowance T 4 ~ 2090QO ~ 20200Q 14 Net Income $ 776800 $ 2066400
15 Rate Base T 8 $17840000 $17840000 16 Rate of Return 435 1158
012erating Ratio 17 Before Income Taxes 9179 8234 18 After Income Taxes amp Allowance 9664 9196
Not Appli cable
Allowance for interest and amortization related to streetcar abandonment of the past and for abandonmcnts proposed in Application No 35728
-33shy
LOS ANGELES TRANSIT Ln~S ESTH1ATE OF HILES TO i3LJ OERATEJJ FOR THE TlJ7IVE HONTHS-ENDING OCTOBER 31 1 q55
A UNDJilR PRESENT OPERATIONS B WITH HOTOR COACH SlfilSTITUTION AS PROPOSED IN APPLICATION NO 35n8
CASE I - PRESENT OPERlTI03S Present Fares Propose(l Fares
Estimatet Estimated Estimated Hiloago Estimated Est T)imirDl l4i Recluc-Estimatea Miles Miles (a) Decrease In Traffic Roduction Mileage of Traffiction Below Proposed
Item As Shown In Miles of the Decline Duo TrafficPresent FaresBelow TrafCol6 Due to Fares PDC Staff Dacrease9-15-54 to Docline (2) x At PrescntDiminution Col 6 x
________ (3) x (4) (100 - Col 5gt Fares (7) x (3) (100 - ColFJdlibLLJamp~Passengers ~-55 8) (1) (2) (3) (4) (5) (6) (7) (8) (9)
streetcar 12041861 30 43 L29 11587000 39 117 11748000
Trolley Coach 2546000 92573633 25f~ 43 1 075~b 3 0 975 2521000
Motor Coach (b) ]8li-~4 849 20 4 3~ 86 10 18106000 39 78 18163000bull I~
f-- ---J Total (b) 33080343 32739000 32432000
CASE II - OFSRATIONS PROPOSED IN APPLICATION NO 15728 Present Fares Proposed Fares
Item Estimatefl 1JIiles(a) As SnownEstimate~- Miles Present FarosEstimate~ Milos Proposed ___-~___------I=n~PDCStaff Exhibit No Col lOx (100 - Col 5) Faros Col llx (100-CQl~
(1) (10) (11) (12)
Stroetcar 6778211 6691000 6 61300O
Trolley Coach 2981376 2949000 2920000
Motor Coach (b) 236629)) 23459 1000 2276 7000
~Total (b) 33422542 33099000 32809000 ill r trl
(a) Based on th~ l ovel of traffic of Septombor 1954 I)
(b) To the estirl8ted milos shown here should bo a~dod 7500 Charter Miles
t-3
- - - - - - -
LOS kJGELES TRANSIT LINES Table 3 Sheet 1 of 3ESTIMATE OF RAIL OPERiTINGifiPENSES
CASE I - UNDER PRESENT OPERATIONS
Company Estfor 12 Mo~ Records Ending
Acct Jan-May 1954 103155 No I t e m Annualized Present Fares
Car Miles Way and Structures
1-24 ill Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 Superintendence 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conducting Transportation 63 Superintendence 64 Conductor Motormen etc 66 Car Service Emp 67 Miscel1 Car Service Exp 70 Car House Empa
Var other Cond Transp Accounts Total
Traffic 79 Superintendence 80 AdvertiSing
Total General
83 Gen Off - Sal and Exp 84 Gen Off Emp - Sal amp Exp 85 Gen Off a SuppJies amp Exps 88 Pensions
(93 Insurance PL amp PO (93 Insurance Workmens Comp (93 Insurance Other
Var Other General Accounts Total
Total Rail Operating Expense
Cents per Car Mile
12573226
$ 722615
$ 79078 759547 146522
$ 985141
$ 18190 174643 482945
23033 $ 698 811
$ 438900 3257666
104525 76608
351696 57240
$ 4286635
$ 6346 18353
$ 24699
$ 83645 123281
35570 4818S8 765019 46840 13664
287090 $ 1836967
$ 8554874
68004cent
ll887OOO
$ 722600
$ 79100 671200 147900
$ 898200
$) 18200 174600 547200
28900 $ 768900
$ 438900 2890900
104500 72200
351700 59600
$ 3917800
$ 6300 18400
$ 24700
$ 78900 123300 35600
456600 750400 ~ 43100 13700
282tl00 $ 1783700
$ 8115900
6827cent
Co
)
-
(1
I
flI
Car Miles Oper middot Exp Case I-B - Applicants Proposed Fares 11748000 $ 8047000 ~ Expenses Variable with Car Miles Wage rates used herein are those whieh
Ac30amp33 565 cent~ile prevailed immediately prior to 6154 59 460 The cost of the wage increase which 64 2432 tecomes fully effective on 12154 is 70 148 50 of total shown separately in Results of
Total 3605 centmile Operation table ~ See Table 5 for amounts under Proposed Fare
- 18 shy
- - - - - ------
LCB ANGELES TRANSIT LINFS Table 3 ESTIMATE OF TROLLEY COACH OPERATING EXPENSES Sheet 2 of 3
CASE I - UNDER PRESENT OPERATIONS
Acct No I t e m
Coach Miles Way and Structures
1-24 All Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 --superintendenoe 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conduoting Transportation 63 Superintendence 64 Operators Wages 70 Car House Employees
Var Other Condo Transp Accounts Total
Traffic 79 Superintendence 80 Advertising
Total General
83 Gen Off - Sal amp Exp 84 85
Gen Off Emp - Sal amp Exp Gen Off Supplies amp Exps
88 Pensions (93 Insurance PL amp PD (93 Insurance Worlanen s Comp (93 Insurance Other
Var Other General Accounts Total
Total Operating Expense
Cents per Mile
Case I-B - Applicants Proposed Fares
Expenses Variable with Coach Miles Acs 30amp33 477centmile
59 3038 64 2342 70 075 50 of total
Total 3232centjmi1e
~ See Table 5 for Amount Under Proposed Fares
Company Estfor 12 ME Recorda Ending Jan-May 1954 103155 I ~
Annualized Present Fares ~
2629188 2546000
$ 26518 $ 27000
$ 32628 $ 32600 125469 121400
11012 9600 $ 169109 $ 163600
$ 3770 $ 3800 35770 35BOO 75017 86000 1
8417 9000 $ 122974 $ 134600
$ 99161 $ 99200 612513 596300
38273 38300 21802 21500
$ 771749 $ 755300
$ 979 $ 1000 3588 3600
$ 4567 $ 4600
$ 15134 $ 12100 22990 23000 5669 5700
87614 83000 165089 97300 I
8516 8000 ~ 3054 3100
49076 48700 $ 357142 $ 280900 6
$1452059 $1366000
5523cent 5365cent
Coach Miles Oper Exp 2521000 $1355400 -- -0
Wage rates used herein are those which prevailed immedshyiately prior to 6154 The cost of the wage i~crease which becomes fully effective on 12154 is shown separately in Results of Operations table
- 19 shy
LOS ANGELES TRANS1 LINS TABLE 3 ESTIMATE OF MOTOR COAOH OPERATING EXPENSE Sheet 3 of 3
CASE I - UNDER PRESENT OPERATIONS
Company Estimate for Records 12 months
Jan - May Ending Acct 1954 103155 No I t e m Annualized Present Fares ~
Coach Miles 1832~158 18314000 Equipment Maintenance amp Gara~ Expense
4110 Supv - Shop and Gar $ 142788 $ 142800 4140-2 Repairs to Rev E~uipment 1097376 848800 4150 Servicing Rev Equipment 308373 307700 4160 Tires - Rev Equipment 123305 125200 Var Other Maint Accounts 151444 147300
Total $1823286 $1571800 Transportation Expense
4210 Supervision of Transp $ 487284 $ 487300 4220 Drivers I vrages 3767184 37589001= 3) bull
4230 522175 523800 )0
4240 Oil for Revenue Equipment 17256 19500 JOJ
Var Other Trans Exp Accounts 60153 58200 Total $4854052 $4847700
Traffic and Advertising 4470 Advertising $ 21593 $ 21600 Var Other Traffic Accounts 7)329 76500
Total $ 94922 $ 98100 Insurance
4510 Salaries and Expenses $ 18818 $ 18800 4520 Insurance PL amp PD 786322 542OOOp 4541 Insurance Workmens Compo 51458 50100p Var Other Insurance Exp 11357 11700 - shy
Fuel for Revenue Equipment _
J Total $ 867955 $ 622600 Administrative and General
4611-2 Gen Officers - Sal amp Exps $ 90806 $ 73500 4613-6 Gen Off Employees - Sal ampExp 138043 137000 4620 Law Expense 12910 16000 4630 Gen Office Supplies amp Exp 51689 44800 4640 Communication Expense 41143 45500 4652 Employees vlelfare 525737 498200 4655 Purchasing amp Stores 120790 120800 Var All Oth~r Adm amp Gen Exp 70090 53900
Total $1051208 $ 989700 Rents 15000 15000
Total Motor Coach Expense $8706423 $8144900 Cents per Mile 47middot50cent 4447cent
Coach Miles Ouer Exp Case I-B - Applicants Proposed Fares 18171 000 $8088900 -----shy
Expennes Variable with Milos Wage rates used herein are those which Ac 4140 463centmile prevailed immediately prior to 6154
4150 084 50 of total The cost of tho wage increase toJhich beshy4160 068 comes fully effective on 12154 is clnwn 4220 2052 separately in Results of Operation table 4230 286 4240 011
Total 2964centmile cent See Table 5 for Amount Under Proposed Fares 20 shy
TABLE 4
IDS ANGELES TRANSIT LUIES AMORTIZATION AND INTEREST ALLOWANCE
PAVING AND REMOVAL OBLIGATIONS - CASES I AND II APPLICATIONS NOS 35601 AND ~5728
A - Obligations from Abandonments Prior to 1954
Yearly Amortization $132000 Interest 16000
Total $148000
B - Obligations from Abandonment of Portions of IV and Rlt Lines (July 25 1954)
Yearly Amortization $ 4000 Interest 2000
Total $ 6000
C - Obligations from Abandonments as Proposed in Application No 35728 (November 1 154)
Yearly Amortization $ 35000 Interest 2JOOO
Total $ 55000
For Case I - Items A + B $154000
For Case II- Items A + B + C $209000
Includes cost of removal of electrical distribution system ($123700) and of substation equipment ($21600)
- 21 shy
LOS ANGELES TRAl~SIT Lli~S
RJBLIC LIABILITY PROPERTY DAl1AGE AND 1l0RIJftElI i S CCMFEi-TSATION EXPENSE illLATED TO SOUln~EbTT MILES Aim R3W-RLS PAS~lWEFS
CASE I - UNDER PRHSENT OPSHATIONS 1947 - 1950 Inc Jan-May Est FOr
Line Ito m 1951 1952 1953 195412 MosEnd No Total Av per Yr Annualizod 10 31 55
1 Lossos paid (n) $ 3890 $ 972 $ 1082 $ 902 $ 580 $ 262 2 Losses ostimato~ (a) 39 10 52 280 634 881 3 Reinsurance costs (a) 282 71 62 69 ____81 65 4 Total Losses_amp Insurance (a) $ 4211 $ 1053 $ 1196 $ 1251 $ 1295 $ 1208
5 Expenses paid (a) $ 1536 $ 384 $ 353 $ 385 $ 242 $ 170 6 Expenses estimated (a) 7 2 _ __ 11) 61 182 24S 7 Total expenses (a) $ 1543 $ middot 386 ~ 363 $ 446 $ 424 $415 8 Total LossesReiils amp Exp (a) $ 5754 $ 1439 1559 $ 1697 1719 $ 1622
(Lina 4- + 7) I 9 Number of claims filed 59991 14998 11588 11104 10246 9228
N
N 10 Vehiclo miles (millions) 153 4 384 356 351 346 336 I
11 Revenue Passon~crs (millions) 10093 2523 1924 1746 1661 1531
12 Loss Per 11i1 lliilos (4 ~ 10) ~27451 $27451 ~33596 $35~641 $37428 $35952 $35000
13 Loss Por i-Hllion Pass (4 11) $ 4172 $ 4172 ~ 6216 ) 7165 ~ 7797 $ 7890 $ 7500 14 Expensos por claim (7 f 9) h
ltfgt 2572 Y 25middot72 i) 3133 $ 4017 4138 $ 4497 $ 45 15 Claims per million miles (9 10) 391 391 326 316 296 275 280
16 Claims per million pass (9 11) 59 59 60 64 62 60 60
Ul p- CD (I)
(a) Thousand of dollars amp8
t-G o ~ H
J N
TABLE 5 LOS ANGELES TRANSIT LUTES Sheet 2 0 f 2
ESTIMATE OF PUBLIC LIABILITY AND PROPERTY DAMAGE AND WOBKMElJ 1 S COMPENSATION EXPENSES
FOR 12-MONTH PERIOD ENDING OCTOBER 31 1955 UNDER CASE I-A AND CASE I-B - PRESENT OPERATIONS ~lITH PRESENT amp PROPOSED FARES
Line 110
Cost Factors 1 Claims per million revenue passengers bull bull bull 2 raquo raquo vehicle miles bull bull bull 3 Expense per claim bull bull 4 Losses per million revenue passengers
raquo raquo vehicle miles bull bull bull bull 5 bull bull
60 280 45
7500 35000
Estimated Expense For PL and PD and Workmens Compensation Insurance
Case I-A Present Fares
6 Number of rovenue passengers (millions) 1395
7 Number of vehicle miles(millions) 3275
A - Basod on Number of Passengers 8 Losses 9 Expense
10 Total
B - Based 11 Losses 12 Expense 13 Total
$1046200 376700
$1422900
on Number of Vehicle Hiles $1146200
412700 $1558900
14 Average of A and B (PL amp PD and Workmen 6 Compo - $1490900
15 Workmens Compensation Insurance 101~200(a) 16 PL and PD Insurance 1389700
Distribution of Total PL amp PD Percent
17 Rail Operations 541 $ 750400 18 Trolloy Coach Operations 7 97300 19 Motor Coach Operations ~ -542000 20 Total 100 $1389700
Case I-B Proposed Fares
1341 3244
$1005700 362100
$1367800
$1135400 408700
$1544100
$1456000 100200 (b)
1355800
$ 732~100 94900
528800 $1355800
(a) Rail=$43lOO Trolley Coach=$8000 and Motor Coach=$50100
(b) Rail=$42 600_ Trolley Coach=$7 ~ 900 and Hotor Coach=$49 (00 _ --- I
- 23 shy
lA3LE 6
LOS ANGELES TRANSIT LINES ESTIHATE 041 OPERAT1NG TAXES
FOR 12 MONTHS ENDING OCTOBER 31 1955 CASE I - PRESENT OPERATIONS
APPLICATION NO 35601
Book Record Case I-A Case I-B L1ne I t e m 12 Months Present Proposed
No End 5-31~ Fares Fares(~ ) -=-----=-(3)~--=--~r(4~)~-(1)
1 City Franchise Taxes $ 473687 $ 434600 ~ 481900
2 Property Taxes-Ad Valorem 457963 435000 435000
3 Fuel and Oil Taxes 360580 337700 335100
4 Motor Vehicle License Taxes 136984 Ib8 900 168900
5 Transportation License 15600 21~00 (3 B of EHlshy
6 payroll Tuxes 265000 262500
Other raxes 7000 70007
Total ~ip 1 603 800
Net after weight fee credit
-24shy
10S ANG3LSS TRANSIT LI~S
INVESTWNT DSPRCIATICN R~SsRVS AND EXPSNS~ FOR ~QUIPMLNT ON UNIT PLAN DEPR3CHTION
CASES I AND II APPLICATIONS NO 35601 AND 35728
As of Oct0ber 31 ffi4 As of October 31 1955 Line NoTotal Investment fnvestment Depre No Item of Life Investment Reserve Less Investment Reserve Less Expense
Units Reserve Reserve Rate Year (1) (2) (J) 4) - ---(~ CD) en -- --8)----- -(9j- (10)
For Case I 1 Motor Coach Groups
62006300 66-6900 hOh 12 Yrs$6421159 $4728599 ~1692560 ~ 6421159 $ 500 1011 ~1330lh8 $ 362412 2 5000 6hoo 75 10 II 1486387 77~175 711212 1h86387 92h851 561536 149676 3 Coaches on order 100 10 II 2285400 2285400 2285400 2265J~0 2058860 226540
II
I 5 Automobiles 51 V3r 99485 50916 h8569 99485 66540 329h5 15624 ~ 6 Trucks amp Service Cars 56 II 280584 250572 30012 280584 265813 lh771 15241 I 7 Misc( Fare BoxesMotors) 170193 115191 55002 170193 122271 47922 7080
h Trolley Coaches 110 15 2108h09 908560 1199849 2108h09 1Oh6116 1062293 137556
8 Total of Lines 1 to 7 ~12851617 ~~6829013 ~02260h ~12i351617 ~ 77h3lh2 $5108475 $ 914129
9 PCC Rail Cars 40 25 rsJ~ 1182671 ) 338627 gt 84h04h 1182671 ~ 382211 ~ 800460 $ h3581~
10 Case I - Line 8 + Line 9 $14034288 $7167640 $6866648 ~14034288 $ 8125353 t5908935 $ 957713
For Case II
11 6000 amp 6100 Series MC 150 FD ~ 2092963 $2070463 ~ 22500 $ 2092963 $ 2070463 $ 22500 12 Work orders on 6000s
amp 6100 s 3 Yrs 265312 61860 203452 265312 144007 121305 $ 82147 13 PCC Rail Cars 401717 1182671 362 337__ ~~~ 334 1182671 43473 ___748298 72036
14 Case II - Lines 8 + 11+ 12+ 13 ~16392563 9323673 n068890 $16392563 ttl0391985 ~6ooo578 ~1068312
t-3
125 other PCC Cars are in Group Depreciation Schedule G ~
Note579 motor coaches under Case I and 729 under Case II D
LOS AlJGELES TRANSIT LnlES TABLE 10 ESTIMATE]) RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD E1TDUTG OCTOBER 31 1955 CASE I - UNDER PRESENT OPERATIONS
12 Months Jan-June
Line No Item
Tab1e Ending or May 31 1954 Page Fe fer
(2)
Book Record
(])
1954 Annualized
Book Record
(4)
Case I-A Present
Fares (5 )
Case I-B Applicant l s
Proposed Fares
(6)
1 Vehicle Miles T2 34036066 33569520 32747000 32440000
Revenue 2 3 4 5
Passenger Revenue Unredeemed Tokens Other Revenue Total
T1 P7 P7
$24849150
122402 $25044557
$24517866
183810 $24 701676
$22940000 $25513000 20000
1821 000 182 000 $23147000 $25700000
6 7 8
Operating Expenses Rail Trolley Coach Motor Coach
T3 T3 T3
$ 8493744 1442232 8622956
$ 8575232 1451430 8 n6470
$ 8115900 $ 8047000 1366000 1355400 8144200 8088900
9 10 11 12 13
Sub-Total Depreciation Operating Taxes Wage Increase Total
T7 T6
18563932 2176608 1676358
$22416898
18743132 2185804 1760600
$22689536
17626800 17491300~ 2039000 2039000 1663800 1711700
439800 436500 $21769400 $21678500
14 Operating Income $ 2627659 $ 20J2JJQ $ 1377600 $ 4021500 15 Other Inc amp Inc Deduct 21258 (9328)
16 Net Inc Before IncTaxes 2635217 2002742 1377600 4021500 I 17 Income Taxes (St ampFe~) 1302758 1026568 647500 1 999 000 18 Net Operating Income 1332459 976174 730100 2022 500 i 19 Allowance T4 112216 80752 1541000 1541000 20 Net Income $ 1220243 $ 895422 $576100 $ 1868500
21 Rate Base T7 $17393000 $16727000 $16926000 $16926000 22 Rate of Return 70~ 535 340 1104
Operating Ratio 23 Before Income Taxes 9405 8435 24 After Inc Taxes ampAllow 9751 927)
Not Applicable
Computed by PUC Staff Allowance for interest and amortization of abandoned property (Red ]figure)
- 31 shy
IDS ill~GElES TRANSIT LINES ESTIMATE OF OPERATllIG EX-degENSES JuID TAXES
FOR 12 f10NTHS ENDING OCTOBER 31 1955 CASE II - KOTOR COACH Sl~STITUTION - j~PLrCATION NO 35728
Table or Line Page Hotor Trolley
~To Item Reference Streetcar Coach Coach Total
l 2 3
4
I S
rv 6VJ
I 7 8 9
10 ll 12 13 Ih 15 16
17
13
(ll- -- shy
Vehicle Miles Case I - Present Operation Case II - Proposed Operation
Increase in i1iles
Opere amp I1aint Expense - Case I
Changes in Expense Due to Conversion Way and Structures Substation Operation Rail Crossing Protection Vehicle Maintenance Servicing of Vehicles Tires - Hotor Coach Equipment Operators vJages Fuel Oil or Power 21 amp PD Insurance ~Jorkmen I s Compensation Insurance Training Drivers for Conversion
Total Increase in Expense
Oper amp i1aint Expense - Case II (Line h +
Operating Taxes - Case II
(Red Figure)
(Z)
T2 T2
T3
Line 16)
D)
11887000 6691000
(5196000)
~ 8115900
t (11500) (42200) (55000)
(270900) (76900)
(1232900) (219800)
(liT shy
18314000 23h67000 5153000
amp 314~900
~
355000 h3300 32500
1154300 153000
-C5) (6)
2546000 32747000 2949000 33107000
403000 360000
S 1366000 ~gt 17 626800
If (144500) 1 ~ v$ ltW (42 200 ) - bull (55 000 ) 7HmiddotVj
19200 103300 M~ f~
3000 ( 30600) A N- i
32500 94400 15800 14600 (52206)
(1l1100) ~ [ (1200) Glh
30000 ~i
p (258200)
$17368600 r3
c~ 1786600 cr ill
I- CD
I- i-
TABLE 12
LOS ANGELES TRANSIT LINES ESTIMATED RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD ENDING OCTOBER 11 1955 CASE II - MOTOR COACH SUBSTITUTION - APPLICATION NO 15728
Table Case II-A Case II-B Line Item Refer- Present Proposed
Nos i FSles Faresect~nce
( 1) (2) (3) ( 4)
1 Vehicles Miles T 2 33107000 32817000
2 Operating Revenue T 10 $23147000 $25700000
O~erating E~ense
3 Operating and Maintenance Tll $17368600 $17234900 4 Depreciation T 8 1657000 1657000 5 Operating Taxes Tll 1786000 1837800 6 Wage Increase 434ZQQ 431 lt)00
Total $21246300 $211612007
8 Operating Income $ 1900700 $ 4538800 Other Inc amp Inc Deductions it 119
10 Net Income Before Income Taxes $ 1900700 $ 4538800 11 Income Taxes (State amp Federal) 214 200 2262 400 12 Net Operating Income $ 985800 $ 2275400 13 Allowance T 4 ~ 2090QO ~ 20200Q 14 Net Income $ 776800 $ 2066400
15 Rate Base T 8 $17840000 $17840000 16 Rate of Return 435 1158
012erating Ratio 17 Before Income Taxes 9179 8234 18 After Income Taxes amp Allowance 9664 9196
Not Appli cable
Allowance for interest and amortization related to streetcar abandonment of the past and for abandonmcnts proposed in Application No 35728
-33shy
LOS ANGELES TRANSIT Ln~S ESTH1ATE OF HILES TO i3LJ OERATEJJ FOR THE TlJ7IVE HONTHS-ENDING OCTOBER 31 1 q55
A UNDJilR PRESENT OPERATIONS B WITH HOTOR COACH SlfilSTITUTION AS PROPOSED IN APPLICATION NO 35n8
CASE I - PRESENT OPERlTI03S Present Fares Propose(l Fares
Estimatet Estimated Estimated Hiloago Estimated Est T)imirDl l4i Recluc-Estimatea Miles Miles (a) Decrease In Traffic Roduction Mileage of Traffiction Below Proposed
Item As Shown In Miles of the Decline Duo TrafficPresent FaresBelow TrafCol6 Due to Fares PDC Staff Dacrease9-15-54 to Docline (2) x At PrescntDiminution Col 6 x
________ (3) x (4) (100 - Col 5gt Fares (7) x (3) (100 - ColFJdlibLLJamp~Passengers ~-55 8) (1) (2) (3) (4) (5) (6) (7) (8) (9)
streetcar 12041861 30 43 L29 11587000 39 117 11748000
Trolley Coach 2546000 92573633 25f~ 43 1 075~b 3 0 975 2521000
Motor Coach (b) ]8li-~4 849 20 4 3~ 86 10 18106000 39 78 18163000bull I~
f-- ---J Total (b) 33080343 32739000 32432000
CASE II - OFSRATIONS PROPOSED IN APPLICATION NO 15728 Present Fares Proposed Fares
Item Estimatefl 1JIiles(a) As SnownEstimate~- Miles Present FarosEstimate~ Milos Proposed ___-~___------I=n~PDCStaff Exhibit No Col lOx (100 - Col 5) Faros Col llx (100-CQl~
(1) (10) (11) (12)
Stroetcar 6778211 6691000 6 61300O
Trolley Coach 2981376 2949000 2920000
Motor Coach (b) 236629)) 23459 1000 2276 7000
~Total (b) 33422542 33099000 32809000 ill r trl
(a) Based on th~ l ovel of traffic of Septombor 1954 I)
(b) To the estirl8ted milos shown here should bo a~dod 7500 Charter Miles
t-3
- - - - - - -
LOS kJGELES TRANSIT LINES Table 3 Sheet 1 of 3ESTIMATE OF RAIL OPERiTINGifiPENSES
CASE I - UNDER PRESENT OPERATIONS
Company Estfor 12 Mo~ Records Ending
Acct Jan-May 1954 103155 No I t e m Annualized Present Fares
Car Miles Way and Structures
1-24 ill Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 Superintendence 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conducting Transportation 63 Superintendence 64 Conductor Motormen etc 66 Car Service Emp 67 Miscel1 Car Service Exp 70 Car House Empa
Var other Cond Transp Accounts Total
Traffic 79 Superintendence 80 AdvertiSing
Total General
83 Gen Off - Sal and Exp 84 Gen Off Emp - Sal amp Exp 85 Gen Off a SuppJies amp Exps 88 Pensions
(93 Insurance PL amp PO (93 Insurance Workmens Comp (93 Insurance Other
Var Other General Accounts Total
Total Rail Operating Expense
Cents per Car Mile
12573226
$ 722615
$ 79078 759547 146522
$ 985141
$ 18190 174643 482945
23033 $ 698 811
$ 438900 3257666
104525 76608
351696 57240
$ 4286635
$ 6346 18353
$ 24699
$ 83645 123281
35570 4818S8 765019 46840 13664
287090 $ 1836967
$ 8554874
68004cent
ll887OOO
$ 722600
$ 79100 671200 147900
$ 898200
$) 18200 174600 547200
28900 $ 768900
$ 438900 2890900
104500 72200
351700 59600
$ 3917800
$ 6300 18400
$ 24700
$ 78900 123300 35600
456600 750400 ~ 43100 13700
282tl00 $ 1783700
$ 8115900
6827cent
Co
)
-
(1
I
flI
Car Miles Oper middot Exp Case I-B - Applicants Proposed Fares 11748000 $ 8047000 ~ Expenses Variable with Car Miles Wage rates used herein are those whieh
Ac30amp33 565 cent~ile prevailed immediately prior to 6154 59 460 The cost of the wage increase which 64 2432 tecomes fully effective on 12154 is 70 148 50 of total shown separately in Results of
Total 3605 centmile Operation table ~ See Table 5 for amounts under Proposed Fare
- 18 shy
- - - - - ------
LCB ANGELES TRANSIT LINFS Table 3 ESTIMATE OF TROLLEY COACH OPERATING EXPENSES Sheet 2 of 3
CASE I - UNDER PRESENT OPERATIONS
Acct No I t e m
Coach Miles Way and Structures
1-24 All Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 --superintendenoe 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conduoting Transportation 63 Superintendence 64 Operators Wages 70 Car House Employees
Var Other Condo Transp Accounts Total
Traffic 79 Superintendence 80 Advertising
Total General
83 Gen Off - Sal amp Exp 84 85
Gen Off Emp - Sal amp Exp Gen Off Supplies amp Exps
88 Pensions (93 Insurance PL amp PD (93 Insurance Worlanen s Comp (93 Insurance Other
Var Other General Accounts Total
Total Operating Expense
Cents per Mile
Case I-B - Applicants Proposed Fares
Expenses Variable with Coach Miles Acs 30amp33 477centmile
59 3038 64 2342 70 075 50 of total
Total 3232centjmi1e
~ See Table 5 for Amount Under Proposed Fares
Company Estfor 12 ME Recorda Ending Jan-May 1954 103155 I ~
Annualized Present Fares ~
2629188 2546000
$ 26518 $ 27000
$ 32628 $ 32600 125469 121400
11012 9600 $ 169109 $ 163600
$ 3770 $ 3800 35770 35BOO 75017 86000 1
8417 9000 $ 122974 $ 134600
$ 99161 $ 99200 612513 596300
38273 38300 21802 21500
$ 771749 $ 755300
$ 979 $ 1000 3588 3600
$ 4567 $ 4600
$ 15134 $ 12100 22990 23000 5669 5700
87614 83000 165089 97300 I
8516 8000 ~ 3054 3100
49076 48700 $ 357142 $ 280900 6
$1452059 $1366000
5523cent 5365cent
Coach Miles Oper Exp 2521000 $1355400 -- -0
Wage rates used herein are those which prevailed immedshyiately prior to 6154 The cost of the wage i~crease which becomes fully effective on 12154 is shown separately in Results of Operations table
- 19 shy
LOS ANGELES TRANS1 LINS TABLE 3 ESTIMATE OF MOTOR COAOH OPERATING EXPENSE Sheet 3 of 3
CASE I - UNDER PRESENT OPERATIONS
Company Estimate for Records 12 months
Jan - May Ending Acct 1954 103155 No I t e m Annualized Present Fares ~
Coach Miles 1832~158 18314000 Equipment Maintenance amp Gara~ Expense
4110 Supv - Shop and Gar $ 142788 $ 142800 4140-2 Repairs to Rev E~uipment 1097376 848800 4150 Servicing Rev Equipment 308373 307700 4160 Tires - Rev Equipment 123305 125200 Var Other Maint Accounts 151444 147300
Total $1823286 $1571800 Transportation Expense
4210 Supervision of Transp $ 487284 $ 487300 4220 Drivers I vrages 3767184 37589001= 3) bull
4230 522175 523800 )0
4240 Oil for Revenue Equipment 17256 19500 JOJ
Var Other Trans Exp Accounts 60153 58200 Total $4854052 $4847700
Traffic and Advertising 4470 Advertising $ 21593 $ 21600 Var Other Traffic Accounts 7)329 76500
Total $ 94922 $ 98100 Insurance
4510 Salaries and Expenses $ 18818 $ 18800 4520 Insurance PL amp PD 786322 542OOOp 4541 Insurance Workmens Compo 51458 50100p Var Other Insurance Exp 11357 11700 - shy
Fuel for Revenue Equipment _
J Total $ 867955 $ 622600 Administrative and General
4611-2 Gen Officers - Sal amp Exps $ 90806 $ 73500 4613-6 Gen Off Employees - Sal ampExp 138043 137000 4620 Law Expense 12910 16000 4630 Gen Office Supplies amp Exp 51689 44800 4640 Communication Expense 41143 45500 4652 Employees vlelfare 525737 498200 4655 Purchasing amp Stores 120790 120800 Var All Oth~r Adm amp Gen Exp 70090 53900
Total $1051208 $ 989700 Rents 15000 15000
Total Motor Coach Expense $8706423 $8144900 Cents per Mile 47middot50cent 4447cent
Coach Miles Ouer Exp Case I-B - Applicants Proposed Fares 18171 000 $8088900 -----shy
Expennes Variable with Milos Wage rates used herein are those which Ac 4140 463centmile prevailed immediately prior to 6154
4150 084 50 of total The cost of tho wage increase toJhich beshy4160 068 comes fully effective on 12154 is clnwn 4220 2052 separately in Results of Operation table 4230 286 4240 011
Total 2964centmile cent See Table 5 for Amount Under Proposed Fares 20 shy
TABLE 4
IDS ANGELES TRANSIT LUIES AMORTIZATION AND INTEREST ALLOWANCE
PAVING AND REMOVAL OBLIGATIONS - CASES I AND II APPLICATIONS NOS 35601 AND ~5728
A - Obligations from Abandonments Prior to 1954
Yearly Amortization $132000 Interest 16000
Total $148000
B - Obligations from Abandonment of Portions of IV and Rlt Lines (July 25 1954)
Yearly Amortization $ 4000 Interest 2000
Total $ 6000
C - Obligations from Abandonments as Proposed in Application No 35728 (November 1 154)
Yearly Amortization $ 35000 Interest 2JOOO
Total $ 55000
For Case I - Items A + B $154000
For Case II- Items A + B + C $209000
Includes cost of removal of electrical distribution system ($123700) and of substation equipment ($21600)
- 21 shy
LOS ANGELES TRAl~SIT Lli~S
RJBLIC LIABILITY PROPERTY DAl1AGE AND 1l0RIJftElI i S CCMFEi-TSATION EXPENSE illLATED TO SOUln~EbTT MILES Aim R3W-RLS PAS~lWEFS
CASE I - UNDER PRHSENT OPSHATIONS 1947 - 1950 Inc Jan-May Est FOr
Line Ito m 1951 1952 1953 195412 MosEnd No Total Av per Yr Annualizod 10 31 55
1 Lossos paid (n) $ 3890 $ 972 $ 1082 $ 902 $ 580 $ 262 2 Losses ostimato~ (a) 39 10 52 280 634 881 3 Reinsurance costs (a) 282 71 62 69 ____81 65 4 Total Losses_amp Insurance (a) $ 4211 $ 1053 $ 1196 $ 1251 $ 1295 $ 1208
5 Expenses paid (a) $ 1536 $ 384 $ 353 $ 385 $ 242 $ 170 6 Expenses estimated (a) 7 2 _ __ 11) 61 182 24S 7 Total expenses (a) $ 1543 $ middot 386 ~ 363 $ 446 $ 424 $415 8 Total LossesReiils amp Exp (a) $ 5754 $ 1439 1559 $ 1697 1719 $ 1622
(Lina 4- + 7) I 9 Number of claims filed 59991 14998 11588 11104 10246 9228
N
N 10 Vehiclo miles (millions) 153 4 384 356 351 346 336 I
11 Revenue Passon~crs (millions) 10093 2523 1924 1746 1661 1531
12 Loss Per 11i1 lliilos (4 ~ 10) ~27451 $27451 ~33596 $35~641 $37428 $35952 $35000
13 Loss Por i-Hllion Pass (4 11) $ 4172 $ 4172 ~ 6216 ) 7165 ~ 7797 $ 7890 $ 7500 14 Expensos por claim (7 f 9) h
ltfgt 2572 Y 25middot72 i) 3133 $ 4017 4138 $ 4497 $ 45 15 Claims per million miles (9 10) 391 391 326 316 296 275 280
16 Claims per million pass (9 11) 59 59 60 64 62 60 60
Ul p- CD (I)
(a) Thousand of dollars amp8
t-G o ~ H
J N
TABLE 5 LOS ANGELES TRANSIT LUTES Sheet 2 0 f 2
ESTIMATE OF PUBLIC LIABILITY AND PROPERTY DAMAGE AND WOBKMElJ 1 S COMPENSATION EXPENSES
FOR 12-MONTH PERIOD ENDING OCTOBER 31 1955 UNDER CASE I-A AND CASE I-B - PRESENT OPERATIONS ~lITH PRESENT amp PROPOSED FARES
Line 110
Cost Factors 1 Claims per million revenue passengers bull bull bull 2 raquo raquo vehicle miles bull bull bull 3 Expense per claim bull bull 4 Losses per million revenue passengers
raquo raquo vehicle miles bull bull bull bull 5 bull bull
60 280 45
7500 35000
Estimated Expense For PL and PD and Workmens Compensation Insurance
Case I-A Present Fares
6 Number of rovenue passengers (millions) 1395
7 Number of vehicle miles(millions) 3275
A - Basod on Number of Passengers 8 Losses 9 Expense
10 Total
B - Based 11 Losses 12 Expense 13 Total
$1046200 376700
$1422900
on Number of Vehicle Hiles $1146200
412700 $1558900
14 Average of A and B (PL amp PD and Workmen 6 Compo - $1490900
15 Workmens Compensation Insurance 101~200(a) 16 PL and PD Insurance 1389700
Distribution of Total PL amp PD Percent
17 Rail Operations 541 $ 750400 18 Trolloy Coach Operations 7 97300 19 Motor Coach Operations ~ -542000 20 Total 100 $1389700
Case I-B Proposed Fares
1341 3244
$1005700 362100
$1367800
$1135400 408700
$1544100
$1456000 100200 (b)
1355800
$ 732~100 94900
528800 $1355800
(a) Rail=$43lOO Trolley Coach=$8000 and Motor Coach=$50100
(b) Rail=$42 600_ Trolley Coach=$7 ~ 900 and Hotor Coach=$49 (00 _ --- I
- 23 shy
lA3LE 6
LOS ANGELES TRANSIT LINES ESTIHATE 041 OPERAT1NG TAXES
FOR 12 MONTHS ENDING OCTOBER 31 1955 CASE I - PRESENT OPERATIONS
APPLICATION NO 35601
Book Record Case I-A Case I-B L1ne I t e m 12 Months Present Proposed
No End 5-31~ Fares Fares(~ ) -=-----=-(3)~--=--~r(4~)~-(1)
1 City Franchise Taxes $ 473687 $ 434600 ~ 481900
2 Property Taxes-Ad Valorem 457963 435000 435000
3 Fuel and Oil Taxes 360580 337700 335100
4 Motor Vehicle License Taxes 136984 Ib8 900 168900
5 Transportation License 15600 21~00 (3 B of EHlshy
6 payroll Tuxes 265000 262500
Other raxes 7000 70007
Total ~ip 1 603 800
Net after weight fee credit
-24shy
LOS AlJGELES TRANSIT LnlES TABLE 10 ESTIMATE]) RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD E1TDUTG OCTOBER 31 1955 CASE I - UNDER PRESENT OPERATIONS
12 Months Jan-June
Line No Item
Tab1e Ending or May 31 1954 Page Fe fer
(2)
Book Record
(])
1954 Annualized
Book Record
(4)
Case I-A Present
Fares (5 )
Case I-B Applicant l s
Proposed Fares
(6)
1 Vehicle Miles T2 34036066 33569520 32747000 32440000
Revenue 2 3 4 5
Passenger Revenue Unredeemed Tokens Other Revenue Total
T1 P7 P7
$24849150
122402 $25044557
$24517866
183810 $24 701676
$22940000 $25513000 20000
1821 000 182 000 $23147000 $25700000
6 7 8
Operating Expenses Rail Trolley Coach Motor Coach
T3 T3 T3
$ 8493744 1442232 8622956
$ 8575232 1451430 8 n6470
$ 8115900 $ 8047000 1366000 1355400 8144200 8088900
9 10 11 12 13
Sub-Total Depreciation Operating Taxes Wage Increase Total
T7 T6
18563932 2176608 1676358
$22416898
18743132 2185804 1760600
$22689536
17626800 17491300~ 2039000 2039000 1663800 1711700
439800 436500 $21769400 $21678500
14 Operating Income $ 2627659 $ 20J2JJQ $ 1377600 $ 4021500 15 Other Inc amp Inc Deduct 21258 (9328)
16 Net Inc Before IncTaxes 2635217 2002742 1377600 4021500 I 17 Income Taxes (St ampFe~) 1302758 1026568 647500 1 999 000 18 Net Operating Income 1332459 976174 730100 2022 500 i 19 Allowance T4 112216 80752 1541000 1541000 20 Net Income $ 1220243 $ 895422 $576100 $ 1868500
21 Rate Base T7 $17393000 $16727000 $16926000 $16926000 22 Rate of Return 70~ 535 340 1104
Operating Ratio 23 Before Income Taxes 9405 8435 24 After Inc Taxes ampAllow 9751 927)
Not Applicable
Computed by PUC Staff Allowance for interest and amortization of abandoned property (Red ]figure)
- 31 shy
IDS ill~GElES TRANSIT LINES ESTIMATE OF OPERATllIG EX-degENSES JuID TAXES
FOR 12 f10NTHS ENDING OCTOBER 31 1955 CASE II - KOTOR COACH Sl~STITUTION - j~PLrCATION NO 35728
Table or Line Page Hotor Trolley
~To Item Reference Streetcar Coach Coach Total
l 2 3
4
I S
rv 6VJ
I 7 8 9
10 ll 12 13 Ih 15 16
17
13
(ll- -- shy
Vehicle Miles Case I - Present Operation Case II - Proposed Operation
Increase in i1iles
Opere amp I1aint Expense - Case I
Changes in Expense Due to Conversion Way and Structures Substation Operation Rail Crossing Protection Vehicle Maintenance Servicing of Vehicles Tires - Hotor Coach Equipment Operators vJages Fuel Oil or Power 21 amp PD Insurance ~Jorkmen I s Compensation Insurance Training Drivers for Conversion
Total Increase in Expense
Oper amp i1aint Expense - Case II (Line h +
Operating Taxes - Case II
(Red Figure)
(Z)
T2 T2
T3
Line 16)
D)
11887000 6691000
(5196000)
~ 8115900
t (11500) (42200) (55000)
(270900) (76900)
(1232900) (219800)
(liT shy
18314000 23h67000 5153000
amp 314~900
~
355000 h3300 32500
1154300 153000
-C5) (6)
2546000 32747000 2949000 33107000
403000 360000
S 1366000 ~gt 17 626800
If (144500) 1 ~ v$ ltW (42 200 ) - bull (55 000 ) 7HmiddotVj
19200 103300 M~ f~
3000 ( 30600) A N- i
32500 94400 15800 14600 (52206)
(1l1100) ~ [ (1200) Glh
30000 ~i
p (258200)
$17368600 r3
c~ 1786600 cr ill
I- CD
I- i-
TABLE 12
LOS ANGELES TRANSIT LINES ESTIMATED RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD ENDING OCTOBER 11 1955 CASE II - MOTOR COACH SUBSTITUTION - APPLICATION NO 15728
Table Case II-A Case II-B Line Item Refer- Present Proposed
Nos i FSles Faresect~nce
( 1) (2) (3) ( 4)
1 Vehicles Miles T 2 33107000 32817000
2 Operating Revenue T 10 $23147000 $25700000
O~erating E~ense
3 Operating and Maintenance Tll $17368600 $17234900 4 Depreciation T 8 1657000 1657000 5 Operating Taxes Tll 1786000 1837800 6 Wage Increase 434ZQQ 431 lt)00
Total $21246300 $211612007
8 Operating Income $ 1900700 $ 4538800 Other Inc amp Inc Deductions it 119
10 Net Income Before Income Taxes $ 1900700 $ 4538800 11 Income Taxes (State amp Federal) 214 200 2262 400 12 Net Operating Income $ 985800 $ 2275400 13 Allowance T 4 ~ 2090QO ~ 20200Q 14 Net Income $ 776800 $ 2066400
15 Rate Base T 8 $17840000 $17840000 16 Rate of Return 435 1158
012erating Ratio 17 Before Income Taxes 9179 8234 18 After Income Taxes amp Allowance 9664 9196
Not Appli cable
Allowance for interest and amortization related to streetcar abandonment of the past and for abandonmcnts proposed in Application No 35728
-33shy
LOS ANGELES TRANSIT Ln~S ESTH1ATE OF HILES TO i3LJ OERATEJJ FOR THE TlJ7IVE HONTHS-ENDING OCTOBER 31 1 q55
A UNDJilR PRESENT OPERATIONS B WITH HOTOR COACH SlfilSTITUTION AS PROPOSED IN APPLICATION NO 35n8
CASE I - PRESENT OPERlTI03S Present Fares Propose(l Fares
Estimatet Estimated Estimated Hiloago Estimated Est T)imirDl l4i Recluc-Estimatea Miles Miles (a) Decrease In Traffic Roduction Mileage of Traffiction Below Proposed
Item As Shown In Miles of the Decline Duo TrafficPresent FaresBelow TrafCol6 Due to Fares PDC Staff Dacrease9-15-54 to Docline (2) x At PrescntDiminution Col 6 x
________ (3) x (4) (100 - Col 5gt Fares (7) x (3) (100 - ColFJdlibLLJamp~Passengers ~-55 8) (1) (2) (3) (4) (5) (6) (7) (8) (9)
streetcar 12041861 30 43 L29 11587000 39 117 11748000
Trolley Coach 2546000 92573633 25f~ 43 1 075~b 3 0 975 2521000
Motor Coach (b) ]8li-~4 849 20 4 3~ 86 10 18106000 39 78 18163000bull I~
f-- ---J Total (b) 33080343 32739000 32432000
CASE II - OFSRATIONS PROPOSED IN APPLICATION NO 15728 Present Fares Proposed Fares
Item Estimatefl 1JIiles(a) As SnownEstimate~- Miles Present FarosEstimate~ Milos Proposed ___-~___------I=n~PDCStaff Exhibit No Col lOx (100 - Col 5) Faros Col llx (100-CQl~
(1) (10) (11) (12)
Stroetcar 6778211 6691000 6 61300O
Trolley Coach 2981376 2949000 2920000
Motor Coach (b) 236629)) 23459 1000 2276 7000
~Total (b) 33422542 33099000 32809000 ill r trl
(a) Based on th~ l ovel of traffic of Septombor 1954 I)
(b) To the estirl8ted milos shown here should bo a~dod 7500 Charter Miles
t-3
- - - - - - -
LOS kJGELES TRANSIT LINES Table 3 Sheet 1 of 3ESTIMATE OF RAIL OPERiTINGifiPENSES
CASE I - UNDER PRESENT OPERATIONS
Company Estfor 12 Mo~ Records Ending
Acct Jan-May 1954 103155 No I t e m Annualized Present Fares
Car Miles Way and Structures
1-24 ill Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 Superintendence 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conducting Transportation 63 Superintendence 64 Conductor Motormen etc 66 Car Service Emp 67 Miscel1 Car Service Exp 70 Car House Empa
Var other Cond Transp Accounts Total
Traffic 79 Superintendence 80 AdvertiSing
Total General
83 Gen Off - Sal and Exp 84 Gen Off Emp - Sal amp Exp 85 Gen Off a SuppJies amp Exps 88 Pensions
(93 Insurance PL amp PO (93 Insurance Workmens Comp (93 Insurance Other
Var Other General Accounts Total
Total Rail Operating Expense
Cents per Car Mile
12573226
$ 722615
$ 79078 759547 146522
$ 985141
$ 18190 174643 482945
23033 $ 698 811
$ 438900 3257666
104525 76608
351696 57240
$ 4286635
$ 6346 18353
$ 24699
$ 83645 123281
35570 4818S8 765019 46840 13664
287090 $ 1836967
$ 8554874
68004cent
ll887OOO
$ 722600
$ 79100 671200 147900
$ 898200
$) 18200 174600 547200
28900 $ 768900
$ 438900 2890900
104500 72200
351700 59600
$ 3917800
$ 6300 18400
$ 24700
$ 78900 123300 35600
456600 750400 ~ 43100 13700
282tl00 $ 1783700
$ 8115900
6827cent
Co
)
-
(1
I
flI
Car Miles Oper middot Exp Case I-B - Applicants Proposed Fares 11748000 $ 8047000 ~ Expenses Variable with Car Miles Wage rates used herein are those whieh
Ac30amp33 565 cent~ile prevailed immediately prior to 6154 59 460 The cost of the wage increase which 64 2432 tecomes fully effective on 12154 is 70 148 50 of total shown separately in Results of
Total 3605 centmile Operation table ~ See Table 5 for amounts under Proposed Fare
- 18 shy
- - - - - ------
LCB ANGELES TRANSIT LINFS Table 3 ESTIMATE OF TROLLEY COACH OPERATING EXPENSES Sheet 2 of 3
CASE I - UNDER PRESENT OPERATIONS
Acct No I t e m
Coach Miles Way and Structures
1-24 All Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 --superintendenoe 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conduoting Transportation 63 Superintendence 64 Operators Wages 70 Car House Employees
Var Other Condo Transp Accounts Total
Traffic 79 Superintendence 80 Advertising
Total General
83 Gen Off - Sal amp Exp 84 85
Gen Off Emp - Sal amp Exp Gen Off Supplies amp Exps
88 Pensions (93 Insurance PL amp PD (93 Insurance Worlanen s Comp (93 Insurance Other
Var Other General Accounts Total
Total Operating Expense
Cents per Mile
Case I-B - Applicants Proposed Fares
Expenses Variable with Coach Miles Acs 30amp33 477centmile
59 3038 64 2342 70 075 50 of total
Total 3232centjmi1e
~ See Table 5 for Amount Under Proposed Fares
Company Estfor 12 ME Recorda Ending Jan-May 1954 103155 I ~
Annualized Present Fares ~
2629188 2546000
$ 26518 $ 27000
$ 32628 $ 32600 125469 121400
11012 9600 $ 169109 $ 163600
$ 3770 $ 3800 35770 35BOO 75017 86000 1
8417 9000 $ 122974 $ 134600
$ 99161 $ 99200 612513 596300
38273 38300 21802 21500
$ 771749 $ 755300
$ 979 $ 1000 3588 3600
$ 4567 $ 4600
$ 15134 $ 12100 22990 23000 5669 5700
87614 83000 165089 97300 I
8516 8000 ~ 3054 3100
49076 48700 $ 357142 $ 280900 6
$1452059 $1366000
5523cent 5365cent
Coach Miles Oper Exp 2521000 $1355400 -- -0
Wage rates used herein are those which prevailed immedshyiately prior to 6154 The cost of the wage i~crease which becomes fully effective on 12154 is shown separately in Results of Operations table
- 19 shy
LOS ANGELES TRANS1 LINS TABLE 3 ESTIMATE OF MOTOR COAOH OPERATING EXPENSE Sheet 3 of 3
CASE I - UNDER PRESENT OPERATIONS
Company Estimate for Records 12 months
Jan - May Ending Acct 1954 103155 No I t e m Annualized Present Fares ~
Coach Miles 1832~158 18314000 Equipment Maintenance amp Gara~ Expense
4110 Supv - Shop and Gar $ 142788 $ 142800 4140-2 Repairs to Rev E~uipment 1097376 848800 4150 Servicing Rev Equipment 308373 307700 4160 Tires - Rev Equipment 123305 125200 Var Other Maint Accounts 151444 147300
Total $1823286 $1571800 Transportation Expense
4210 Supervision of Transp $ 487284 $ 487300 4220 Drivers I vrages 3767184 37589001= 3) bull
4230 522175 523800 )0
4240 Oil for Revenue Equipment 17256 19500 JOJ
Var Other Trans Exp Accounts 60153 58200 Total $4854052 $4847700
Traffic and Advertising 4470 Advertising $ 21593 $ 21600 Var Other Traffic Accounts 7)329 76500
Total $ 94922 $ 98100 Insurance
4510 Salaries and Expenses $ 18818 $ 18800 4520 Insurance PL amp PD 786322 542OOOp 4541 Insurance Workmens Compo 51458 50100p Var Other Insurance Exp 11357 11700 - shy
Fuel for Revenue Equipment _
J Total $ 867955 $ 622600 Administrative and General
4611-2 Gen Officers - Sal amp Exps $ 90806 $ 73500 4613-6 Gen Off Employees - Sal ampExp 138043 137000 4620 Law Expense 12910 16000 4630 Gen Office Supplies amp Exp 51689 44800 4640 Communication Expense 41143 45500 4652 Employees vlelfare 525737 498200 4655 Purchasing amp Stores 120790 120800 Var All Oth~r Adm amp Gen Exp 70090 53900
Total $1051208 $ 989700 Rents 15000 15000
Total Motor Coach Expense $8706423 $8144900 Cents per Mile 47middot50cent 4447cent
Coach Miles Ouer Exp Case I-B - Applicants Proposed Fares 18171 000 $8088900 -----shy
Expennes Variable with Milos Wage rates used herein are those which Ac 4140 463centmile prevailed immediately prior to 6154
4150 084 50 of total The cost of tho wage increase toJhich beshy4160 068 comes fully effective on 12154 is clnwn 4220 2052 separately in Results of Operation table 4230 286 4240 011
Total 2964centmile cent See Table 5 for Amount Under Proposed Fares 20 shy
TABLE 4
IDS ANGELES TRANSIT LUIES AMORTIZATION AND INTEREST ALLOWANCE
PAVING AND REMOVAL OBLIGATIONS - CASES I AND II APPLICATIONS NOS 35601 AND ~5728
A - Obligations from Abandonments Prior to 1954
Yearly Amortization $132000 Interest 16000
Total $148000
B - Obligations from Abandonment of Portions of IV and Rlt Lines (July 25 1954)
Yearly Amortization $ 4000 Interest 2000
Total $ 6000
C - Obligations from Abandonments as Proposed in Application No 35728 (November 1 154)
Yearly Amortization $ 35000 Interest 2JOOO
Total $ 55000
For Case I - Items A + B $154000
For Case II- Items A + B + C $209000
Includes cost of removal of electrical distribution system ($123700) and of substation equipment ($21600)
- 21 shy
LOS ANGELES TRAl~SIT Lli~S
RJBLIC LIABILITY PROPERTY DAl1AGE AND 1l0RIJftElI i S CCMFEi-TSATION EXPENSE illLATED TO SOUln~EbTT MILES Aim R3W-RLS PAS~lWEFS
CASE I - UNDER PRHSENT OPSHATIONS 1947 - 1950 Inc Jan-May Est FOr
Line Ito m 1951 1952 1953 195412 MosEnd No Total Av per Yr Annualizod 10 31 55
1 Lossos paid (n) $ 3890 $ 972 $ 1082 $ 902 $ 580 $ 262 2 Losses ostimato~ (a) 39 10 52 280 634 881 3 Reinsurance costs (a) 282 71 62 69 ____81 65 4 Total Losses_amp Insurance (a) $ 4211 $ 1053 $ 1196 $ 1251 $ 1295 $ 1208
5 Expenses paid (a) $ 1536 $ 384 $ 353 $ 385 $ 242 $ 170 6 Expenses estimated (a) 7 2 _ __ 11) 61 182 24S 7 Total expenses (a) $ 1543 $ middot 386 ~ 363 $ 446 $ 424 $415 8 Total LossesReiils amp Exp (a) $ 5754 $ 1439 1559 $ 1697 1719 $ 1622
(Lina 4- + 7) I 9 Number of claims filed 59991 14998 11588 11104 10246 9228
N
N 10 Vehiclo miles (millions) 153 4 384 356 351 346 336 I
11 Revenue Passon~crs (millions) 10093 2523 1924 1746 1661 1531
12 Loss Per 11i1 lliilos (4 ~ 10) ~27451 $27451 ~33596 $35~641 $37428 $35952 $35000
13 Loss Por i-Hllion Pass (4 11) $ 4172 $ 4172 ~ 6216 ) 7165 ~ 7797 $ 7890 $ 7500 14 Expensos por claim (7 f 9) h
ltfgt 2572 Y 25middot72 i) 3133 $ 4017 4138 $ 4497 $ 45 15 Claims per million miles (9 10) 391 391 326 316 296 275 280
16 Claims per million pass (9 11) 59 59 60 64 62 60 60
Ul p- CD (I)
(a) Thousand of dollars amp8
t-G o ~ H
J N
TABLE 5 LOS ANGELES TRANSIT LUTES Sheet 2 0 f 2
ESTIMATE OF PUBLIC LIABILITY AND PROPERTY DAMAGE AND WOBKMElJ 1 S COMPENSATION EXPENSES
FOR 12-MONTH PERIOD ENDING OCTOBER 31 1955 UNDER CASE I-A AND CASE I-B - PRESENT OPERATIONS ~lITH PRESENT amp PROPOSED FARES
Line 110
Cost Factors 1 Claims per million revenue passengers bull bull bull 2 raquo raquo vehicle miles bull bull bull 3 Expense per claim bull bull 4 Losses per million revenue passengers
raquo raquo vehicle miles bull bull bull bull 5 bull bull
60 280 45
7500 35000
Estimated Expense For PL and PD and Workmens Compensation Insurance
Case I-A Present Fares
6 Number of rovenue passengers (millions) 1395
7 Number of vehicle miles(millions) 3275
A - Basod on Number of Passengers 8 Losses 9 Expense
10 Total
B - Based 11 Losses 12 Expense 13 Total
$1046200 376700
$1422900
on Number of Vehicle Hiles $1146200
412700 $1558900
14 Average of A and B (PL amp PD and Workmen 6 Compo - $1490900
15 Workmens Compensation Insurance 101~200(a) 16 PL and PD Insurance 1389700
Distribution of Total PL amp PD Percent
17 Rail Operations 541 $ 750400 18 Trolloy Coach Operations 7 97300 19 Motor Coach Operations ~ -542000 20 Total 100 $1389700
Case I-B Proposed Fares
1341 3244
$1005700 362100
$1367800
$1135400 408700
$1544100
$1456000 100200 (b)
1355800
$ 732~100 94900
528800 $1355800
(a) Rail=$43lOO Trolley Coach=$8000 and Motor Coach=$50100
(b) Rail=$42 600_ Trolley Coach=$7 ~ 900 and Hotor Coach=$49 (00 _ --- I
- 23 shy
lA3LE 6
LOS ANGELES TRANSIT LINES ESTIHATE 041 OPERAT1NG TAXES
FOR 12 MONTHS ENDING OCTOBER 31 1955 CASE I - PRESENT OPERATIONS
APPLICATION NO 35601
Book Record Case I-A Case I-B L1ne I t e m 12 Months Present Proposed
No End 5-31~ Fares Fares(~ ) -=-----=-(3)~--=--~r(4~)~-(1)
1 City Franchise Taxes $ 473687 $ 434600 ~ 481900
2 Property Taxes-Ad Valorem 457963 435000 435000
3 Fuel and Oil Taxes 360580 337700 335100
4 Motor Vehicle License Taxes 136984 Ib8 900 168900
5 Transportation License 15600 21~00 (3 B of EHlshy
6 payroll Tuxes 265000 262500
Other raxes 7000 70007
Total ~ip 1 603 800
Net after weight fee credit
-24shy
IDS ill~GElES TRANSIT LINES ESTIMATE OF OPERATllIG EX-degENSES JuID TAXES
FOR 12 f10NTHS ENDING OCTOBER 31 1955 CASE II - KOTOR COACH Sl~STITUTION - j~PLrCATION NO 35728
Table or Line Page Hotor Trolley
~To Item Reference Streetcar Coach Coach Total
l 2 3
4
I S
rv 6VJ
I 7 8 9
10 ll 12 13 Ih 15 16
17
13
(ll- -- shy
Vehicle Miles Case I - Present Operation Case II - Proposed Operation
Increase in i1iles
Opere amp I1aint Expense - Case I
Changes in Expense Due to Conversion Way and Structures Substation Operation Rail Crossing Protection Vehicle Maintenance Servicing of Vehicles Tires - Hotor Coach Equipment Operators vJages Fuel Oil or Power 21 amp PD Insurance ~Jorkmen I s Compensation Insurance Training Drivers for Conversion
Total Increase in Expense
Oper amp i1aint Expense - Case II (Line h +
Operating Taxes - Case II
(Red Figure)
(Z)
T2 T2
T3
Line 16)
D)
11887000 6691000
(5196000)
~ 8115900
t (11500) (42200) (55000)
(270900) (76900)
(1232900) (219800)
(liT shy
18314000 23h67000 5153000
amp 314~900
~
355000 h3300 32500
1154300 153000
-C5) (6)
2546000 32747000 2949000 33107000
403000 360000
S 1366000 ~gt 17 626800
If (144500) 1 ~ v$ ltW (42 200 ) - bull (55 000 ) 7HmiddotVj
19200 103300 M~ f~
3000 ( 30600) A N- i
32500 94400 15800 14600 (52206)
(1l1100) ~ [ (1200) Glh
30000 ~i
p (258200)
$17368600 r3
c~ 1786600 cr ill
I- CD
I- i-
TABLE 12
LOS ANGELES TRANSIT LINES ESTIMATED RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD ENDING OCTOBER 11 1955 CASE II - MOTOR COACH SUBSTITUTION - APPLICATION NO 15728
Table Case II-A Case II-B Line Item Refer- Present Proposed
Nos i FSles Faresect~nce
( 1) (2) (3) ( 4)
1 Vehicles Miles T 2 33107000 32817000
2 Operating Revenue T 10 $23147000 $25700000
O~erating E~ense
3 Operating and Maintenance Tll $17368600 $17234900 4 Depreciation T 8 1657000 1657000 5 Operating Taxes Tll 1786000 1837800 6 Wage Increase 434ZQQ 431 lt)00
Total $21246300 $211612007
8 Operating Income $ 1900700 $ 4538800 Other Inc amp Inc Deductions it 119
10 Net Income Before Income Taxes $ 1900700 $ 4538800 11 Income Taxes (State amp Federal) 214 200 2262 400 12 Net Operating Income $ 985800 $ 2275400 13 Allowance T 4 ~ 2090QO ~ 20200Q 14 Net Income $ 776800 $ 2066400
15 Rate Base T 8 $17840000 $17840000 16 Rate of Return 435 1158
012erating Ratio 17 Before Income Taxes 9179 8234 18 After Income Taxes amp Allowance 9664 9196
Not Appli cable
Allowance for interest and amortization related to streetcar abandonment of the past and for abandonmcnts proposed in Application No 35728
-33shy
LOS ANGELES TRANSIT Ln~S ESTH1ATE OF HILES TO i3LJ OERATEJJ FOR THE TlJ7IVE HONTHS-ENDING OCTOBER 31 1 q55
A UNDJilR PRESENT OPERATIONS B WITH HOTOR COACH SlfilSTITUTION AS PROPOSED IN APPLICATION NO 35n8
CASE I - PRESENT OPERlTI03S Present Fares Propose(l Fares
Estimatet Estimated Estimated Hiloago Estimated Est T)imirDl l4i Recluc-Estimatea Miles Miles (a) Decrease In Traffic Roduction Mileage of Traffiction Below Proposed
Item As Shown In Miles of the Decline Duo TrafficPresent FaresBelow TrafCol6 Due to Fares PDC Staff Dacrease9-15-54 to Docline (2) x At PrescntDiminution Col 6 x
________ (3) x (4) (100 - Col 5gt Fares (7) x (3) (100 - ColFJdlibLLJamp~Passengers ~-55 8) (1) (2) (3) (4) (5) (6) (7) (8) (9)
streetcar 12041861 30 43 L29 11587000 39 117 11748000
Trolley Coach 2546000 92573633 25f~ 43 1 075~b 3 0 975 2521000
Motor Coach (b) ]8li-~4 849 20 4 3~ 86 10 18106000 39 78 18163000bull I~
f-- ---J Total (b) 33080343 32739000 32432000
CASE II - OFSRATIONS PROPOSED IN APPLICATION NO 15728 Present Fares Proposed Fares
Item Estimatefl 1JIiles(a) As SnownEstimate~- Miles Present FarosEstimate~ Milos Proposed ___-~___------I=n~PDCStaff Exhibit No Col lOx (100 - Col 5) Faros Col llx (100-CQl~
(1) (10) (11) (12)
Stroetcar 6778211 6691000 6 61300O
Trolley Coach 2981376 2949000 2920000
Motor Coach (b) 236629)) 23459 1000 2276 7000
~Total (b) 33422542 33099000 32809000 ill r trl
(a) Based on th~ l ovel of traffic of Septombor 1954 I)
(b) To the estirl8ted milos shown here should bo a~dod 7500 Charter Miles
t-3
- - - - - - -
LOS kJGELES TRANSIT LINES Table 3 Sheet 1 of 3ESTIMATE OF RAIL OPERiTINGifiPENSES
CASE I - UNDER PRESENT OPERATIONS
Company Estfor 12 Mo~ Records Ending
Acct Jan-May 1954 103155 No I t e m Annualized Present Fares
Car Miles Way and Structures
1-24 ill Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 Superintendence 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conducting Transportation 63 Superintendence 64 Conductor Motormen etc 66 Car Service Emp 67 Miscel1 Car Service Exp 70 Car House Empa
Var other Cond Transp Accounts Total
Traffic 79 Superintendence 80 AdvertiSing
Total General
83 Gen Off - Sal and Exp 84 Gen Off Emp - Sal amp Exp 85 Gen Off a SuppJies amp Exps 88 Pensions
(93 Insurance PL amp PO (93 Insurance Workmens Comp (93 Insurance Other
Var Other General Accounts Total
Total Rail Operating Expense
Cents per Car Mile
12573226
$ 722615
$ 79078 759547 146522
$ 985141
$ 18190 174643 482945
23033 $ 698 811
$ 438900 3257666
104525 76608
351696 57240
$ 4286635
$ 6346 18353
$ 24699
$ 83645 123281
35570 4818S8 765019 46840 13664
287090 $ 1836967
$ 8554874
68004cent
ll887OOO
$ 722600
$ 79100 671200 147900
$ 898200
$) 18200 174600 547200
28900 $ 768900
$ 438900 2890900
104500 72200
351700 59600
$ 3917800
$ 6300 18400
$ 24700
$ 78900 123300 35600
456600 750400 ~ 43100 13700
282tl00 $ 1783700
$ 8115900
6827cent
Co
)
-
(1
I
flI
Car Miles Oper middot Exp Case I-B - Applicants Proposed Fares 11748000 $ 8047000 ~ Expenses Variable with Car Miles Wage rates used herein are those whieh
Ac30amp33 565 cent~ile prevailed immediately prior to 6154 59 460 The cost of the wage increase which 64 2432 tecomes fully effective on 12154 is 70 148 50 of total shown separately in Results of
Total 3605 centmile Operation table ~ See Table 5 for amounts under Proposed Fare
- 18 shy
- - - - - ------
LCB ANGELES TRANSIT LINFS Table 3 ESTIMATE OF TROLLEY COACH OPERATING EXPENSES Sheet 2 of 3
CASE I - UNDER PRESENT OPERATIONS
Acct No I t e m
Coach Miles Way and Structures
1-24 All Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 --superintendenoe 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conduoting Transportation 63 Superintendence 64 Operators Wages 70 Car House Employees
Var Other Condo Transp Accounts Total
Traffic 79 Superintendence 80 Advertising
Total General
83 Gen Off - Sal amp Exp 84 85
Gen Off Emp - Sal amp Exp Gen Off Supplies amp Exps
88 Pensions (93 Insurance PL amp PD (93 Insurance Worlanen s Comp (93 Insurance Other
Var Other General Accounts Total
Total Operating Expense
Cents per Mile
Case I-B - Applicants Proposed Fares
Expenses Variable with Coach Miles Acs 30amp33 477centmile
59 3038 64 2342 70 075 50 of total
Total 3232centjmi1e
~ See Table 5 for Amount Under Proposed Fares
Company Estfor 12 ME Recorda Ending Jan-May 1954 103155 I ~
Annualized Present Fares ~
2629188 2546000
$ 26518 $ 27000
$ 32628 $ 32600 125469 121400
11012 9600 $ 169109 $ 163600
$ 3770 $ 3800 35770 35BOO 75017 86000 1
8417 9000 $ 122974 $ 134600
$ 99161 $ 99200 612513 596300
38273 38300 21802 21500
$ 771749 $ 755300
$ 979 $ 1000 3588 3600
$ 4567 $ 4600
$ 15134 $ 12100 22990 23000 5669 5700
87614 83000 165089 97300 I
8516 8000 ~ 3054 3100
49076 48700 $ 357142 $ 280900 6
$1452059 $1366000
5523cent 5365cent
Coach Miles Oper Exp 2521000 $1355400 -- -0
Wage rates used herein are those which prevailed immedshyiately prior to 6154 The cost of the wage i~crease which becomes fully effective on 12154 is shown separately in Results of Operations table
- 19 shy
LOS ANGELES TRANS1 LINS TABLE 3 ESTIMATE OF MOTOR COAOH OPERATING EXPENSE Sheet 3 of 3
CASE I - UNDER PRESENT OPERATIONS
Company Estimate for Records 12 months
Jan - May Ending Acct 1954 103155 No I t e m Annualized Present Fares ~
Coach Miles 1832~158 18314000 Equipment Maintenance amp Gara~ Expense
4110 Supv - Shop and Gar $ 142788 $ 142800 4140-2 Repairs to Rev E~uipment 1097376 848800 4150 Servicing Rev Equipment 308373 307700 4160 Tires - Rev Equipment 123305 125200 Var Other Maint Accounts 151444 147300
Total $1823286 $1571800 Transportation Expense
4210 Supervision of Transp $ 487284 $ 487300 4220 Drivers I vrages 3767184 37589001= 3) bull
4230 522175 523800 )0
4240 Oil for Revenue Equipment 17256 19500 JOJ
Var Other Trans Exp Accounts 60153 58200 Total $4854052 $4847700
Traffic and Advertising 4470 Advertising $ 21593 $ 21600 Var Other Traffic Accounts 7)329 76500
Total $ 94922 $ 98100 Insurance
4510 Salaries and Expenses $ 18818 $ 18800 4520 Insurance PL amp PD 786322 542OOOp 4541 Insurance Workmens Compo 51458 50100p Var Other Insurance Exp 11357 11700 - shy
Fuel for Revenue Equipment _
J Total $ 867955 $ 622600 Administrative and General
4611-2 Gen Officers - Sal amp Exps $ 90806 $ 73500 4613-6 Gen Off Employees - Sal ampExp 138043 137000 4620 Law Expense 12910 16000 4630 Gen Office Supplies amp Exp 51689 44800 4640 Communication Expense 41143 45500 4652 Employees vlelfare 525737 498200 4655 Purchasing amp Stores 120790 120800 Var All Oth~r Adm amp Gen Exp 70090 53900
Total $1051208 $ 989700 Rents 15000 15000
Total Motor Coach Expense $8706423 $8144900 Cents per Mile 47middot50cent 4447cent
Coach Miles Ouer Exp Case I-B - Applicants Proposed Fares 18171 000 $8088900 -----shy
Expennes Variable with Milos Wage rates used herein are those which Ac 4140 463centmile prevailed immediately prior to 6154
4150 084 50 of total The cost of tho wage increase toJhich beshy4160 068 comes fully effective on 12154 is clnwn 4220 2052 separately in Results of Operation table 4230 286 4240 011
Total 2964centmile cent See Table 5 for Amount Under Proposed Fares 20 shy
TABLE 4
IDS ANGELES TRANSIT LUIES AMORTIZATION AND INTEREST ALLOWANCE
PAVING AND REMOVAL OBLIGATIONS - CASES I AND II APPLICATIONS NOS 35601 AND ~5728
A - Obligations from Abandonments Prior to 1954
Yearly Amortization $132000 Interest 16000
Total $148000
B - Obligations from Abandonment of Portions of IV and Rlt Lines (July 25 1954)
Yearly Amortization $ 4000 Interest 2000
Total $ 6000
C - Obligations from Abandonments as Proposed in Application No 35728 (November 1 154)
Yearly Amortization $ 35000 Interest 2JOOO
Total $ 55000
For Case I - Items A + B $154000
For Case II- Items A + B + C $209000
Includes cost of removal of electrical distribution system ($123700) and of substation equipment ($21600)
- 21 shy
LOS ANGELES TRAl~SIT Lli~S
RJBLIC LIABILITY PROPERTY DAl1AGE AND 1l0RIJftElI i S CCMFEi-TSATION EXPENSE illLATED TO SOUln~EbTT MILES Aim R3W-RLS PAS~lWEFS
CASE I - UNDER PRHSENT OPSHATIONS 1947 - 1950 Inc Jan-May Est FOr
Line Ito m 1951 1952 1953 195412 MosEnd No Total Av per Yr Annualizod 10 31 55
1 Lossos paid (n) $ 3890 $ 972 $ 1082 $ 902 $ 580 $ 262 2 Losses ostimato~ (a) 39 10 52 280 634 881 3 Reinsurance costs (a) 282 71 62 69 ____81 65 4 Total Losses_amp Insurance (a) $ 4211 $ 1053 $ 1196 $ 1251 $ 1295 $ 1208
5 Expenses paid (a) $ 1536 $ 384 $ 353 $ 385 $ 242 $ 170 6 Expenses estimated (a) 7 2 _ __ 11) 61 182 24S 7 Total expenses (a) $ 1543 $ middot 386 ~ 363 $ 446 $ 424 $415 8 Total LossesReiils amp Exp (a) $ 5754 $ 1439 1559 $ 1697 1719 $ 1622
(Lina 4- + 7) I 9 Number of claims filed 59991 14998 11588 11104 10246 9228
N
N 10 Vehiclo miles (millions) 153 4 384 356 351 346 336 I
11 Revenue Passon~crs (millions) 10093 2523 1924 1746 1661 1531
12 Loss Per 11i1 lliilos (4 ~ 10) ~27451 $27451 ~33596 $35~641 $37428 $35952 $35000
13 Loss Por i-Hllion Pass (4 11) $ 4172 $ 4172 ~ 6216 ) 7165 ~ 7797 $ 7890 $ 7500 14 Expensos por claim (7 f 9) h
ltfgt 2572 Y 25middot72 i) 3133 $ 4017 4138 $ 4497 $ 45 15 Claims per million miles (9 10) 391 391 326 316 296 275 280
16 Claims per million pass (9 11) 59 59 60 64 62 60 60
Ul p- CD (I)
(a) Thousand of dollars amp8
t-G o ~ H
J N
TABLE 5 LOS ANGELES TRANSIT LUTES Sheet 2 0 f 2
ESTIMATE OF PUBLIC LIABILITY AND PROPERTY DAMAGE AND WOBKMElJ 1 S COMPENSATION EXPENSES
FOR 12-MONTH PERIOD ENDING OCTOBER 31 1955 UNDER CASE I-A AND CASE I-B - PRESENT OPERATIONS ~lITH PRESENT amp PROPOSED FARES
Line 110
Cost Factors 1 Claims per million revenue passengers bull bull bull 2 raquo raquo vehicle miles bull bull bull 3 Expense per claim bull bull 4 Losses per million revenue passengers
raquo raquo vehicle miles bull bull bull bull 5 bull bull
60 280 45
7500 35000
Estimated Expense For PL and PD and Workmens Compensation Insurance
Case I-A Present Fares
6 Number of rovenue passengers (millions) 1395
7 Number of vehicle miles(millions) 3275
A - Basod on Number of Passengers 8 Losses 9 Expense
10 Total
B - Based 11 Losses 12 Expense 13 Total
$1046200 376700
$1422900
on Number of Vehicle Hiles $1146200
412700 $1558900
14 Average of A and B (PL amp PD and Workmen 6 Compo - $1490900
15 Workmens Compensation Insurance 101~200(a) 16 PL and PD Insurance 1389700
Distribution of Total PL amp PD Percent
17 Rail Operations 541 $ 750400 18 Trolloy Coach Operations 7 97300 19 Motor Coach Operations ~ -542000 20 Total 100 $1389700
Case I-B Proposed Fares
1341 3244
$1005700 362100
$1367800
$1135400 408700
$1544100
$1456000 100200 (b)
1355800
$ 732~100 94900
528800 $1355800
(a) Rail=$43lOO Trolley Coach=$8000 and Motor Coach=$50100
(b) Rail=$42 600_ Trolley Coach=$7 ~ 900 and Hotor Coach=$49 (00 _ --- I
- 23 shy
lA3LE 6
LOS ANGELES TRANSIT LINES ESTIHATE 041 OPERAT1NG TAXES
FOR 12 MONTHS ENDING OCTOBER 31 1955 CASE I - PRESENT OPERATIONS
APPLICATION NO 35601
Book Record Case I-A Case I-B L1ne I t e m 12 Months Present Proposed
No End 5-31~ Fares Fares(~ ) -=-----=-(3)~--=--~r(4~)~-(1)
1 City Franchise Taxes $ 473687 $ 434600 ~ 481900
2 Property Taxes-Ad Valorem 457963 435000 435000
3 Fuel and Oil Taxes 360580 337700 335100
4 Motor Vehicle License Taxes 136984 Ib8 900 168900
5 Transportation License 15600 21~00 (3 B of EHlshy
6 payroll Tuxes 265000 262500
Other raxes 7000 70007
Total ~ip 1 603 800
Net after weight fee credit
-24shy
TABLE 12
LOS ANGELES TRANSIT LINES ESTIMATED RESULTS OF OPERATIONS
FOR TWELVE-MONTH PERIOD ENDING OCTOBER 11 1955 CASE II - MOTOR COACH SUBSTITUTION - APPLICATION NO 15728
Table Case II-A Case II-B Line Item Refer- Present Proposed
Nos i FSles Faresect~nce
( 1) (2) (3) ( 4)
1 Vehicles Miles T 2 33107000 32817000
2 Operating Revenue T 10 $23147000 $25700000
O~erating E~ense
3 Operating and Maintenance Tll $17368600 $17234900 4 Depreciation T 8 1657000 1657000 5 Operating Taxes Tll 1786000 1837800 6 Wage Increase 434ZQQ 431 lt)00
Total $21246300 $211612007
8 Operating Income $ 1900700 $ 4538800 Other Inc amp Inc Deductions it 119
10 Net Income Before Income Taxes $ 1900700 $ 4538800 11 Income Taxes (State amp Federal) 214 200 2262 400 12 Net Operating Income $ 985800 $ 2275400 13 Allowance T 4 ~ 2090QO ~ 20200Q 14 Net Income $ 776800 $ 2066400
15 Rate Base T 8 $17840000 $17840000 16 Rate of Return 435 1158
012erating Ratio 17 Before Income Taxes 9179 8234 18 After Income Taxes amp Allowance 9664 9196
Not Appli cable
Allowance for interest and amortization related to streetcar abandonment of the past and for abandonmcnts proposed in Application No 35728
-33shy
LOS ANGELES TRANSIT Ln~S ESTH1ATE OF HILES TO i3LJ OERATEJJ FOR THE TlJ7IVE HONTHS-ENDING OCTOBER 31 1 q55
A UNDJilR PRESENT OPERATIONS B WITH HOTOR COACH SlfilSTITUTION AS PROPOSED IN APPLICATION NO 35n8
CASE I - PRESENT OPERlTI03S Present Fares Propose(l Fares
Estimatet Estimated Estimated Hiloago Estimated Est T)imirDl l4i Recluc-Estimatea Miles Miles (a) Decrease In Traffic Roduction Mileage of Traffiction Below Proposed
Item As Shown In Miles of the Decline Duo TrafficPresent FaresBelow TrafCol6 Due to Fares PDC Staff Dacrease9-15-54 to Docline (2) x At PrescntDiminution Col 6 x
________ (3) x (4) (100 - Col 5gt Fares (7) x (3) (100 - ColFJdlibLLJamp~Passengers ~-55 8) (1) (2) (3) (4) (5) (6) (7) (8) (9)
streetcar 12041861 30 43 L29 11587000 39 117 11748000
Trolley Coach 2546000 92573633 25f~ 43 1 075~b 3 0 975 2521000
Motor Coach (b) ]8li-~4 849 20 4 3~ 86 10 18106000 39 78 18163000bull I~
f-- ---J Total (b) 33080343 32739000 32432000
CASE II - OFSRATIONS PROPOSED IN APPLICATION NO 15728 Present Fares Proposed Fares
Item Estimatefl 1JIiles(a) As SnownEstimate~- Miles Present FarosEstimate~ Milos Proposed ___-~___------I=n~PDCStaff Exhibit No Col lOx (100 - Col 5) Faros Col llx (100-CQl~
(1) (10) (11) (12)
Stroetcar 6778211 6691000 6 61300O
Trolley Coach 2981376 2949000 2920000
Motor Coach (b) 236629)) 23459 1000 2276 7000
~Total (b) 33422542 33099000 32809000 ill r trl
(a) Based on th~ l ovel of traffic of Septombor 1954 I)
(b) To the estirl8ted milos shown here should bo a~dod 7500 Charter Miles
t-3
- - - - - - -
LOS kJGELES TRANSIT LINES Table 3 Sheet 1 of 3ESTIMATE OF RAIL OPERiTINGifiPENSES
CASE I - UNDER PRESENT OPERATIONS
Company Estfor 12 Mo~ Records Ending
Acct Jan-May 1954 103155 No I t e m Annualized Present Fares
Car Miles Way and Structures
1-24 ill Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 Superintendence 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conducting Transportation 63 Superintendence 64 Conductor Motormen etc 66 Car Service Emp 67 Miscel1 Car Service Exp 70 Car House Empa
Var other Cond Transp Accounts Total
Traffic 79 Superintendence 80 AdvertiSing
Total General
83 Gen Off - Sal and Exp 84 Gen Off Emp - Sal amp Exp 85 Gen Off a SuppJies amp Exps 88 Pensions
(93 Insurance PL amp PO (93 Insurance Workmens Comp (93 Insurance Other
Var Other General Accounts Total
Total Rail Operating Expense
Cents per Car Mile
12573226
$ 722615
$ 79078 759547 146522
$ 985141
$ 18190 174643 482945
23033 $ 698 811
$ 438900 3257666
104525 76608
351696 57240
$ 4286635
$ 6346 18353
$ 24699
$ 83645 123281
35570 4818S8 765019 46840 13664
287090 $ 1836967
$ 8554874
68004cent
ll887OOO
$ 722600
$ 79100 671200 147900
$ 898200
$) 18200 174600 547200
28900 $ 768900
$ 438900 2890900
104500 72200
351700 59600
$ 3917800
$ 6300 18400
$ 24700
$ 78900 123300 35600
456600 750400 ~ 43100 13700
282tl00 $ 1783700
$ 8115900
6827cent
Co
)
-
(1
I
flI
Car Miles Oper middot Exp Case I-B - Applicants Proposed Fares 11748000 $ 8047000 ~ Expenses Variable with Car Miles Wage rates used herein are those whieh
Ac30amp33 565 cent~ile prevailed immediately prior to 6154 59 460 The cost of the wage increase which 64 2432 tecomes fully effective on 12154 is 70 148 50 of total shown separately in Results of
Total 3605 centmile Operation table ~ See Table 5 for amounts under Proposed Fare
- 18 shy
- - - - - ------
LCB ANGELES TRANSIT LINFS Table 3 ESTIMATE OF TROLLEY COACH OPERATING EXPENSES Sheet 2 of 3
CASE I - UNDER PRESENT OPERATIONS
Acct No I t e m
Coach Miles Way and Structures
1-24 All Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 --superintendenoe 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conduoting Transportation 63 Superintendence 64 Operators Wages 70 Car House Employees
Var Other Condo Transp Accounts Total
Traffic 79 Superintendence 80 Advertising
Total General
83 Gen Off - Sal amp Exp 84 85
Gen Off Emp - Sal amp Exp Gen Off Supplies amp Exps
88 Pensions (93 Insurance PL amp PD (93 Insurance Worlanen s Comp (93 Insurance Other
Var Other General Accounts Total
Total Operating Expense
Cents per Mile
Case I-B - Applicants Proposed Fares
Expenses Variable with Coach Miles Acs 30amp33 477centmile
59 3038 64 2342 70 075 50 of total
Total 3232centjmi1e
~ See Table 5 for Amount Under Proposed Fares
Company Estfor 12 ME Recorda Ending Jan-May 1954 103155 I ~
Annualized Present Fares ~
2629188 2546000
$ 26518 $ 27000
$ 32628 $ 32600 125469 121400
11012 9600 $ 169109 $ 163600
$ 3770 $ 3800 35770 35BOO 75017 86000 1
8417 9000 $ 122974 $ 134600
$ 99161 $ 99200 612513 596300
38273 38300 21802 21500
$ 771749 $ 755300
$ 979 $ 1000 3588 3600
$ 4567 $ 4600
$ 15134 $ 12100 22990 23000 5669 5700
87614 83000 165089 97300 I
8516 8000 ~ 3054 3100
49076 48700 $ 357142 $ 280900 6
$1452059 $1366000
5523cent 5365cent
Coach Miles Oper Exp 2521000 $1355400 -- -0
Wage rates used herein are those which prevailed immedshyiately prior to 6154 The cost of the wage i~crease which becomes fully effective on 12154 is shown separately in Results of Operations table
- 19 shy
LOS ANGELES TRANS1 LINS TABLE 3 ESTIMATE OF MOTOR COAOH OPERATING EXPENSE Sheet 3 of 3
CASE I - UNDER PRESENT OPERATIONS
Company Estimate for Records 12 months
Jan - May Ending Acct 1954 103155 No I t e m Annualized Present Fares ~
Coach Miles 1832~158 18314000 Equipment Maintenance amp Gara~ Expense
4110 Supv - Shop and Gar $ 142788 $ 142800 4140-2 Repairs to Rev E~uipment 1097376 848800 4150 Servicing Rev Equipment 308373 307700 4160 Tires - Rev Equipment 123305 125200 Var Other Maint Accounts 151444 147300
Total $1823286 $1571800 Transportation Expense
4210 Supervision of Transp $ 487284 $ 487300 4220 Drivers I vrages 3767184 37589001= 3) bull
4230 522175 523800 )0
4240 Oil for Revenue Equipment 17256 19500 JOJ
Var Other Trans Exp Accounts 60153 58200 Total $4854052 $4847700
Traffic and Advertising 4470 Advertising $ 21593 $ 21600 Var Other Traffic Accounts 7)329 76500
Total $ 94922 $ 98100 Insurance
4510 Salaries and Expenses $ 18818 $ 18800 4520 Insurance PL amp PD 786322 542OOOp 4541 Insurance Workmens Compo 51458 50100p Var Other Insurance Exp 11357 11700 - shy
Fuel for Revenue Equipment _
J Total $ 867955 $ 622600 Administrative and General
4611-2 Gen Officers - Sal amp Exps $ 90806 $ 73500 4613-6 Gen Off Employees - Sal ampExp 138043 137000 4620 Law Expense 12910 16000 4630 Gen Office Supplies amp Exp 51689 44800 4640 Communication Expense 41143 45500 4652 Employees vlelfare 525737 498200 4655 Purchasing amp Stores 120790 120800 Var All Oth~r Adm amp Gen Exp 70090 53900
Total $1051208 $ 989700 Rents 15000 15000
Total Motor Coach Expense $8706423 $8144900 Cents per Mile 47middot50cent 4447cent
Coach Miles Ouer Exp Case I-B - Applicants Proposed Fares 18171 000 $8088900 -----shy
Expennes Variable with Milos Wage rates used herein are those which Ac 4140 463centmile prevailed immediately prior to 6154
4150 084 50 of total The cost of tho wage increase toJhich beshy4160 068 comes fully effective on 12154 is clnwn 4220 2052 separately in Results of Operation table 4230 286 4240 011
Total 2964centmile cent See Table 5 for Amount Under Proposed Fares 20 shy
TABLE 4
IDS ANGELES TRANSIT LUIES AMORTIZATION AND INTEREST ALLOWANCE
PAVING AND REMOVAL OBLIGATIONS - CASES I AND II APPLICATIONS NOS 35601 AND ~5728
A - Obligations from Abandonments Prior to 1954
Yearly Amortization $132000 Interest 16000
Total $148000
B - Obligations from Abandonment of Portions of IV and Rlt Lines (July 25 1954)
Yearly Amortization $ 4000 Interest 2000
Total $ 6000
C - Obligations from Abandonments as Proposed in Application No 35728 (November 1 154)
Yearly Amortization $ 35000 Interest 2JOOO
Total $ 55000
For Case I - Items A + B $154000
For Case II- Items A + B + C $209000
Includes cost of removal of electrical distribution system ($123700) and of substation equipment ($21600)
- 21 shy
LOS ANGELES TRAl~SIT Lli~S
RJBLIC LIABILITY PROPERTY DAl1AGE AND 1l0RIJftElI i S CCMFEi-TSATION EXPENSE illLATED TO SOUln~EbTT MILES Aim R3W-RLS PAS~lWEFS
CASE I - UNDER PRHSENT OPSHATIONS 1947 - 1950 Inc Jan-May Est FOr
Line Ito m 1951 1952 1953 195412 MosEnd No Total Av per Yr Annualizod 10 31 55
1 Lossos paid (n) $ 3890 $ 972 $ 1082 $ 902 $ 580 $ 262 2 Losses ostimato~ (a) 39 10 52 280 634 881 3 Reinsurance costs (a) 282 71 62 69 ____81 65 4 Total Losses_amp Insurance (a) $ 4211 $ 1053 $ 1196 $ 1251 $ 1295 $ 1208
5 Expenses paid (a) $ 1536 $ 384 $ 353 $ 385 $ 242 $ 170 6 Expenses estimated (a) 7 2 _ __ 11) 61 182 24S 7 Total expenses (a) $ 1543 $ middot 386 ~ 363 $ 446 $ 424 $415 8 Total LossesReiils amp Exp (a) $ 5754 $ 1439 1559 $ 1697 1719 $ 1622
(Lina 4- + 7) I 9 Number of claims filed 59991 14998 11588 11104 10246 9228
N
N 10 Vehiclo miles (millions) 153 4 384 356 351 346 336 I
11 Revenue Passon~crs (millions) 10093 2523 1924 1746 1661 1531
12 Loss Per 11i1 lliilos (4 ~ 10) ~27451 $27451 ~33596 $35~641 $37428 $35952 $35000
13 Loss Por i-Hllion Pass (4 11) $ 4172 $ 4172 ~ 6216 ) 7165 ~ 7797 $ 7890 $ 7500 14 Expensos por claim (7 f 9) h
ltfgt 2572 Y 25middot72 i) 3133 $ 4017 4138 $ 4497 $ 45 15 Claims per million miles (9 10) 391 391 326 316 296 275 280
16 Claims per million pass (9 11) 59 59 60 64 62 60 60
Ul p- CD (I)
(a) Thousand of dollars amp8
t-G o ~ H
J N
TABLE 5 LOS ANGELES TRANSIT LUTES Sheet 2 0 f 2
ESTIMATE OF PUBLIC LIABILITY AND PROPERTY DAMAGE AND WOBKMElJ 1 S COMPENSATION EXPENSES
FOR 12-MONTH PERIOD ENDING OCTOBER 31 1955 UNDER CASE I-A AND CASE I-B - PRESENT OPERATIONS ~lITH PRESENT amp PROPOSED FARES
Line 110
Cost Factors 1 Claims per million revenue passengers bull bull bull 2 raquo raquo vehicle miles bull bull bull 3 Expense per claim bull bull 4 Losses per million revenue passengers
raquo raquo vehicle miles bull bull bull bull 5 bull bull
60 280 45
7500 35000
Estimated Expense For PL and PD and Workmens Compensation Insurance
Case I-A Present Fares
6 Number of rovenue passengers (millions) 1395
7 Number of vehicle miles(millions) 3275
A - Basod on Number of Passengers 8 Losses 9 Expense
10 Total
B - Based 11 Losses 12 Expense 13 Total
$1046200 376700
$1422900
on Number of Vehicle Hiles $1146200
412700 $1558900
14 Average of A and B (PL amp PD and Workmen 6 Compo - $1490900
15 Workmens Compensation Insurance 101~200(a) 16 PL and PD Insurance 1389700
Distribution of Total PL amp PD Percent
17 Rail Operations 541 $ 750400 18 Trolloy Coach Operations 7 97300 19 Motor Coach Operations ~ -542000 20 Total 100 $1389700
Case I-B Proposed Fares
1341 3244
$1005700 362100
$1367800
$1135400 408700
$1544100
$1456000 100200 (b)
1355800
$ 732~100 94900
528800 $1355800
(a) Rail=$43lOO Trolley Coach=$8000 and Motor Coach=$50100
(b) Rail=$42 600_ Trolley Coach=$7 ~ 900 and Hotor Coach=$49 (00 _ --- I
- 23 shy
lA3LE 6
LOS ANGELES TRANSIT LINES ESTIHATE 041 OPERAT1NG TAXES
FOR 12 MONTHS ENDING OCTOBER 31 1955 CASE I - PRESENT OPERATIONS
APPLICATION NO 35601
Book Record Case I-A Case I-B L1ne I t e m 12 Months Present Proposed
No End 5-31~ Fares Fares(~ ) -=-----=-(3)~--=--~r(4~)~-(1)
1 City Franchise Taxes $ 473687 $ 434600 ~ 481900
2 Property Taxes-Ad Valorem 457963 435000 435000
3 Fuel and Oil Taxes 360580 337700 335100
4 Motor Vehicle License Taxes 136984 Ib8 900 168900
5 Transportation License 15600 21~00 (3 B of EHlshy
6 payroll Tuxes 265000 262500
Other raxes 7000 70007
Total ~ip 1 603 800
Net after weight fee credit
-24shy
LOS ANGELES TRANSIT Ln~S ESTH1ATE OF HILES TO i3LJ OERATEJJ FOR THE TlJ7IVE HONTHS-ENDING OCTOBER 31 1 q55
A UNDJilR PRESENT OPERATIONS B WITH HOTOR COACH SlfilSTITUTION AS PROPOSED IN APPLICATION NO 35n8
CASE I - PRESENT OPERlTI03S Present Fares Propose(l Fares
Estimatet Estimated Estimated Hiloago Estimated Est T)imirDl l4i Recluc-Estimatea Miles Miles (a) Decrease In Traffic Roduction Mileage of Traffiction Below Proposed
Item As Shown In Miles of the Decline Duo TrafficPresent FaresBelow TrafCol6 Due to Fares PDC Staff Dacrease9-15-54 to Docline (2) x At PrescntDiminution Col 6 x
________ (3) x (4) (100 - Col 5gt Fares (7) x (3) (100 - ColFJdlibLLJamp~Passengers ~-55 8) (1) (2) (3) (4) (5) (6) (7) (8) (9)
streetcar 12041861 30 43 L29 11587000 39 117 11748000
Trolley Coach 2546000 92573633 25f~ 43 1 075~b 3 0 975 2521000
Motor Coach (b) ]8li-~4 849 20 4 3~ 86 10 18106000 39 78 18163000bull I~
f-- ---J Total (b) 33080343 32739000 32432000
CASE II - OFSRATIONS PROPOSED IN APPLICATION NO 15728 Present Fares Proposed Fares
Item Estimatefl 1JIiles(a) As SnownEstimate~- Miles Present FarosEstimate~ Milos Proposed ___-~___------I=n~PDCStaff Exhibit No Col lOx (100 - Col 5) Faros Col llx (100-CQl~
(1) (10) (11) (12)
Stroetcar 6778211 6691000 6 61300O
Trolley Coach 2981376 2949000 2920000
Motor Coach (b) 236629)) 23459 1000 2276 7000
~Total (b) 33422542 33099000 32809000 ill r trl
(a) Based on th~ l ovel of traffic of Septombor 1954 I)
(b) To the estirl8ted milos shown here should bo a~dod 7500 Charter Miles
t-3
- - - - - - -
LOS kJGELES TRANSIT LINES Table 3 Sheet 1 of 3ESTIMATE OF RAIL OPERiTINGifiPENSES
CASE I - UNDER PRESENT OPERATIONS
Company Estfor 12 Mo~ Records Ending
Acct Jan-May 1954 103155 No I t e m Annualized Present Fares
Car Miles Way and Structures
1-24 ill Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 Superintendence 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conducting Transportation 63 Superintendence 64 Conductor Motormen etc 66 Car Service Emp 67 Miscel1 Car Service Exp 70 Car House Empa
Var other Cond Transp Accounts Total
Traffic 79 Superintendence 80 AdvertiSing
Total General
83 Gen Off - Sal and Exp 84 Gen Off Emp - Sal amp Exp 85 Gen Off a SuppJies amp Exps 88 Pensions
(93 Insurance PL amp PO (93 Insurance Workmens Comp (93 Insurance Other
Var Other General Accounts Total
Total Rail Operating Expense
Cents per Car Mile
12573226
$ 722615
$ 79078 759547 146522
$ 985141
$ 18190 174643 482945
23033 $ 698 811
$ 438900 3257666
104525 76608
351696 57240
$ 4286635
$ 6346 18353
$ 24699
$ 83645 123281
35570 4818S8 765019 46840 13664
287090 $ 1836967
$ 8554874
68004cent
ll887OOO
$ 722600
$ 79100 671200 147900
$ 898200
$) 18200 174600 547200
28900 $ 768900
$ 438900 2890900
104500 72200
351700 59600
$ 3917800
$ 6300 18400
$ 24700
$ 78900 123300 35600
456600 750400 ~ 43100 13700
282tl00 $ 1783700
$ 8115900
6827cent
Co
)
-
(1
I
flI
Car Miles Oper middot Exp Case I-B - Applicants Proposed Fares 11748000 $ 8047000 ~ Expenses Variable with Car Miles Wage rates used herein are those whieh
Ac30amp33 565 cent~ile prevailed immediately prior to 6154 59 460 The cost of the wage increase which 64 2432 tecomes fully effective on 12154 is 70 148 50 of total shown separately in Results of
Total 3605 centmile Operation table ~ See Table 5 for amounts under Proposed Fare
- 18 shy
- - - - - ------
LCB ANGELES TRANSIT LINFS Table 3 ESTIMATE OF TROLLEY COACH OPERATING EXPENSES Sheet 2 of 3
CASE I - UNDER PRESENT OPERATIONS
Acct No I t e m
Coach Miles Way and Structures
1-24 All Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 --superintendenoe 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conduoting Transportation 63 Superintendence 64 Operators Wages 70 Car House Employees
Var Other Condo Transp Accounts Total
Traffic 79 Superintendence 80 Advertising
Total General
83 Gen Off - Sal amp Exp 84 85
Gen Off Emp - Sal amp Exp Gen Off Supplies amp Exps
88 Pensions (93 Insurance PL amp PD (93 Insurance Worlanen s Comp (93 Insurance Other
Var Other General Accounts Total
Total Operating Expense
Cents per Mile
Case I-B - Applicants Proposed Fares
Expenses Variable with Coach Miles Acs 30amp33 477centmile
59 3038 64 2342 70 075 50 of total
Total 3232centjmi1e
~ See Table 5 for Amount Under Proposed Fares
Company Estfor 12 ME Recorda Ending Jan-May 1954 103155 I ~
Annualized Present Fares ~
2629188 2546000
$ 26518 $ 27000
$ 32628 $ 32600 125469 121400
11012 9600 $ 169109 $ 163600
$ 3770 $ 3800 35770 35BOO 75017 86000 1
8417 9000 $ 122974 $ 134600
$ 99161 $ 99200 612513 596300
38273 38300 21802 21500
$ 771749 $ 755300
$ 979 $ 1000 3588 3600
$ 4567 $ 4600
$ 15134 $ 12100 22990 23000 5669 5700
87614 83000 165089 97300 I
8516 8000 ~ 3054 3100
49076 48700 $ 357142 $ 280900 6
$1452059 $1366000
5523cent 5365cent
Coach Miles Oper Exp 2521000 $1355400 -- -0
Wage rates used herein are those which prevailed immedshyiately prior to 6154 The cost of the wage i~crease which becomes fully effective on 12154 is shown separately in Results of Operations table
- 19 shy
LOS ANGELES TRANS1 LINS TABLE 3 ESTIMATE OF MOTOR COAOH OPERATING EXPENSE Sheet 3 of 3
CASE I - UNDER PRESENT OPERATIONS
Company Estimate for Records 12 months
Jan - May Ending Acct 1954 103155 No I t e m Annualized Present Fares ~
Coach Miles 1832~158 18314000 Equipment Maintenance amp Gara~ Expense
4110 Supv - Shop and Gar $ 142788 $ 142800 4140-2 Repairs to Rev E~uipment 1097376 848800 4150 Servicing Rev Equipment 308373 307700 4160 Tires - Rev Equipment 123305 125200 Var Other Maint Accounts 151444 147300
Total $1823286 $1571800 Transportation Expense
4210 Supervision of Transp $ 487284 $ 487300 4220 Drivers I vrages 3767184 37589001= 3) bull
4230 522175 523800 )0
4240 Oil for Revenue Equipment 17256 19500 JOJ
Var Other Trans Exp Accounts 60153 58200 Total $4854052 $4847700
Traffic and Advertising 4470 Advertising $ 21593 $ 21600 Var Other Traffic Accounts 7)329 76500
Total $ 94922 $ 98100 Insurance
4510 Salaries and Expenses $ 18818 $ 18800 4520 Insurance PL amp PD 786322 542OOOp 4541 Insurance Workmens Compo 51458 50100p Var Other Insurance Exp 11357 11700 - shy
Fuel for Revenue Equipment _
J Total $ 867955 $ 622600 Administrative and General
4611-2 Gen Officers - Sal amp Exps $ 90806 $ 73500 4613-6 Gen Off Employees - Sal ampExp 138043 137000 4620 Law Expense 12910 16000 4630 Gen Office Supplies amp Exp 51689 44800 4640 Communication Expense 41143 45500 4652 Employees vlelfare 525737 498200 4655 Purchasing amp Stores 120790 120800 Var All Oth~r Adm amp Gen Exp 70090 53900
Total $1051208 $ 989700 Rents 15000 15000
Total Motor Coach Expense $8706423 $8144900 Cents per Mile 47middot50cent 4447cent
Coach Miles Ouer Exp Case I-B - Applicants Proposed Fares 18171 000 $8088900 -----shy
Expennes Variable with Milos Wage rates used herein are those which Ac 4140 463centmile prevailed immediately prior to 6154
4150 084 50 of total The cost of tho wage increase toJhich beshy4160 068 comes fully effective on 12154 is clnwn 4220 2052 separately in Results of Operation table 4230 286 4240 011
Total 2964centmile cent See Table 5 for Amount Under Proposed Fares 20 shy
TABLE 4
IDS ANGELES TRANSIT LUIES AMORTIZATION AND INTEREST ALLOWANCE
PAVING AND REMOVAL OBLIGATIONS - CASES I AND II APPLICATIONS NOS 35601 AND ~5728
A - Obligations from Abandonments Prior to 1954
Yearly Amortization $132000 Interest 16000
Total $148000
B - Obligations from Abandonment of Portions of IV and Rlt Lines (July 25 1954)
Yearly Amortization $ 4000 Interest 2000
Total $ 6000
C - Obligations from Abandonments as Proposed in Application No 35728 (November 1 154)
Yearly Amortization $ 35000 Interest 2JOOO
Total $ 55000
For Case I - Items A + B $154000
For Case II- Items A + B + C $209000
Includes cost of removal of electrical distribution system ($123700) and of substation equipment ($21600)
- 21 shy
LOS ANGELES TRAl~SIT Lli~S
RJBLIC LIABILITY PROPERTY DAl1AGE AND 1l0RIJftElI i S CCMFEi-TSATION EXPENSE illLATED TO SOUln~EbTT MILES Aim R3W-RLS PAS~lWEFS
CASE I - UNDER PRHSENT OPSHATIONS 1947 - 1950 Inc Jan-May Est FOr
Line Ito m 1951 1952 1953 195412 MosEnd No Total Av per Yr Annualizod 10 31 55
1 Lossos paid (n) $ 3890 $ 972 $ 1082 $ 902 $ 580 $ 262 2 Losses ostimato~ (a) 39 10 52 280 634 881 3 Reinsurance costs (a) 282 71 62 69 ____81 65 4 Total Losses_amp Insurance (a) $ 4211 $ 1053 $ 1196 $ 1251 $ 1295 $ 1208
5 Expenses paid (a) $ 1536 $ 384 $ 353 $ 385 $ 242 $ 170 6 Expenses estimated (a) 7 2 _ __ 11) 61 182 24S 7 Total expenses (a) $ 1543 $ middot 386 ~ 363 $ 446 $ 424 $415 8 Total LossesReiils amp Exp (a) $ 5754 $ 1439 1559 $ 1697 1719 $ 1622
(Lina 4- + 7) I 9 Number of claims filed 59991 14998 11588 11104 10246 9228
N
N 10 Vehiclo miles (millions) 153 4 384 356 351 346 336 I
11 Revenue Passon~crs (millions) 10093 2523 1924 1746 1661 1531
12 Loss Per 11i1 lliilos (4 ~ 10) ~27451 $27451 ~33596 $35~641 $37428 $35952 $35000
13 Loss Por i-Hllion Pass (4 11) $ 4172 $ 4172 ~ 6216 ) 7165 ~ 7797 $ 7890 $ 7500 14 Expensos por claim (7 f 9) h
ltfgt 2572 Y 25middot72 i) 3133 $ 4017 4138 $ 4497 $ 45 15 Claims per million miles (9 10) 391 391 326 316 296 275 280
16 Claims per million pass (9 11) 59 59 60 64 62 60 60
Ul p- CD (I)
(a) Thousand of dollars amp8
t-G o ~ H
J N
TABLE 5 LOS ANGELES TRANSIT LUTES Sheet 2 0 f 2
ESTIMATE OF PUBLIC LIABILITY AND PROPERTY DAMAGE AND WOBKMElJ 1 S COMPENSATION EXPENSES
FOR 12-MONTH PERIOD ENDING OCTOBER 31 1955 UNDER CASE I-A AND CASE I-B - PRESENT OPERATIONS ~lITH PRESENT amp PROPOSED FARES
Line 110
Cost Factors 1 Claims per million revenue passengers bull bull bull 2 raquo raquo vehicle miles bull bull bull 3 Expense per claim bull bull 4 Losses per million revenue passengers
raquo raquo vehicle miles bull bull bull bull 5 bull bull
60 280 45
7500 35000
Estimated Expense For PL and PD and Workmens Compensation Insurance
Case I-A Present Fares
6 Number of rovenue passengers (millions) 1395
7 Number of vehicle miles(millions) 3275
A - Basod on Number of Passengers 8 Losses 9 Expense
10 Total
B - Based 11 Losses 12 Expense 13 Total
$1046200 376700
$1422900
on Number of Vehicle Hiles $1146200
412700 $1558900
14 Average of A and B (PL amp PD and Workmen 6 Compo - $1490900
15 Workmens Compensation Insurance 101~200(a) 16 PL and PD Insurance 1389700
Distribution of Total PL amp PD Percent
17 Rail Operations 541 $ 750400 18 Trolloy Coach Operations 7 97300 19 Motor Coach Operations ~ -542000 20 Total 100 $1389700
Case I-B Proposed Fares
1341 3244
$1005700 362100
$1367800
$1135400 408700
$1544100
$1456000 100200 (b)
1355800
$ 732~100 94900
528800 $1355800
(a) Rail=$43lOO Trolley Coach=$8000 and Motor Coach=$50100
(b) Rail=$42 600_ Trolley Coach=$7 ~ 900 and Hotor Coach=$49 (00 _ --- I
- 23 shy
lA3LE 6
LOS ANGELES TRANSIT LINES ESTIHATE 041 OPERAT1NG TAXES
FOR 12 MONTHS ENDING OCTOBER 31 1955 CASE I - PRESENT OPERATIONS
APPLICATION NO 35601
Book Record Case I-A Case I-B L1ne I t e m 12 Months Present Proposed
No End 5-31~ Fares Fares(~ ) -=-----=-(3)~--=--~r(4~)~-(1)
1 City Franchise Taxes $ 473687 $ 434600 ~ 481900
2 Property Taxes-Ad Valorem 457963 435000 435000
3 Fuel and Oil Taxes 360580 337700 335100
4 Motor Vehicle License Taxes 136984 Ib8 900 168900
5 Transportation License 15600 21~00 (3 B of EHlshy
6 payroll Tuxes 265000 262500
Other raxes 7000 70007
Total ~ip 1 603 800
Net after weight fee credit
-24shy
- - - - - - -
LOS kJGELES TRANSIT LINES Table 3 Sheet 1 of 3ESTIMATE OF RAIL OPERiTINGifiPENSES
CASE I - UNDER PRESENT OPERATIONS
Company Estfor 12 Mo~ Records Ending
Acct Jan-May 1954 103155 No I t e m Annualized Present Fares
Car Miles Way and Structures
1-24 ill Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 Superintendence 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conducting Transportation 63 Superintendence 64 Conductor Motormen etc 66 Car Service Emp 67 Miscel1 Car Service Exp 70 Car House Empa
Var other Cond Transp Accounts Total
Traffic 79 Superintendence 80 AdvertiSing
Total General
83 Gen Off - Sal and Exp 84 Gen Off Emp - Sal amp Exp 85 Gen Off a SuppJies amp Exps 88 Pensions
(93 Insurance PL amp PO (93 Insurance Workmens Comp (93 Insurance Other
Var Other General Accounts Total
Total Rail Operating Expense
Cents per Car Mile
12573226
$ 722615
$ 79078 759547 146522
$ 985141
$ 18190 174643 482945
23033 $ 698 811
$ 438900 3257666
104525 76608
351696 57240
$ 4286635
$ 6346 18353
$ 24699
$ 83645 123281
35570 4818S8 765019 46840 13664
287090 $ 1836967
$ 8554874
68004cent
ll887OOO
$ 722600
$ 79100 671200 147900
$ 898200
$) 18200 174600 547200
28900 $ 768900
$ 438900 2890900
104500 72200
351700 59600
$ 3917800
$ 6300 18400
$ 24700
$ 78900 123300 35600
456600 750400 ~ 43100 13700
282tl00 $ 1783700
$ 8115900
6827cent
Co
)
-
(1
I
flI
Car Miles Oper middot Exp Case I-B - Applicants Proposed Fares 11748000 $ 8047000 ~ Expenses Variable with Car Miles Wage rates used herein are those whieh
Ac30amp33 565 cent~ile prevailed immediately prior to 6154 59 460 The cost of the wage increase which 64 2432 tecomes fully effective on 12154 is 70 148 50 of total shown separately in Results of
Total 3605 centmile Operation table ~ See Table 5 for amounts under Proposed Fare
- 18 shy
- - - - - ------
LCB ANGELES TRANSIT LINFS Table 3 ESTIMATE OF TROLLEY COACH OPERATING EXPENSES Sheet 2 of 3
CASE I - UNDER PRESENT OPERATIONS
Acct No I t e m
Coach Miles Way and Structures
1-24 All Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 --superintendenoe 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conduoting Transportation 63 Superintendence 64 Operators Wages 70 Car House Employees
Var Other Condo Transp Accounts Total
Traffic 79 Superintendence 80 Advertising
Total General
83 Gen Off - Sal amp Exp 84 85
Gen Off Emp - Sal amp Exp Gen Off Supplies amp Exps
88 Pensions (93 Insurance PL amp PD (93 Insurance Worlanen s Comp (93 Insurance Other
Var Other General Accounts Total
Total Operating Expense
Cents per Mile
Case I-B - Applicants Proposed Fares
Expenses Variable with Coach Miles Acs 30amp33 477centmile
59 3038 64 2342 70 075 50 of total
Total 3232centjmi1e
~ See Table 5 for Amount Under Proposed Fares
Company Estfor 12 ME Recorda Ending Jan-May 1954 103155 I ~
Annualized Present Fares ~
2629188 2546000
$ 26518 $ 27000
$ 32628 $ 32600 125469 121400
11012 9600 $ 169109 $ 163600
$ 3770 $ 3800 35770 35BOO 75017 86000 1
8417 9000 $ 122974 $ 134600
$ 99161 $ 99200 612513 596300
38273 38300 21802 21500
$ 771749 $ 755300
$ 979 $ 1000 3588 3600
$ 4567 $ 4600
$ 15134 $ 12100 22990 23000 5669 5700
87614 83000 165089 97300 I
8516 8000 ~ 3054 3100
49076 48700 $ 357142 $ 280900 6
$1452059 $1366000
5523cent 5365cent
Coach Miles Oper Exp 2521000 $1355400 -- -0
Wage rates used herein are those which prevailed immedshyiately prior to 6154 The cost of the wage i~crease which becomes fully effective on 12154 is shown separately in Results of Operations table
- 19 shy
LOS ANGELES TRANS1 LINS TABLE 3 ESTIMATE OF MOTOR COAOH OPERATING EXPENSE Sheet 3 of 3
CASE I - UNDER PRESENT OPERATIONS
Company Estimate for Records 12 months
Jan - May Ending Acct 1954 103155 No I t e m Annualized Present Fares ~
Coach Miles 1832~158 18314000 Equipment Maintenance amp Gara~ Expense
4110 Supv - Shop and Gar $ 142788 $ 142800 4140-2 Repairs to Rev E~uipment 1097376 848800 4150 Servicing Rev Equipment 308373 307700 4160 Tires - Rev Equipment 123305 125200 Var Other Maint Accounts 151444 147300
Total $1823286 $1571800 Transportation Expense
4210 Supervision of Transp $ 487284 $ 487300 4220 Drivers I vrages 3767184 37589001= 3) bull
4230 522175 523800 )0
4240 Oil for Revenue Equipment 17256 19500 JOJ
Var Other Trans Exp Accounts 60153 58200 Total $4854052 $4847700
Traffic and Advertising 4470 Advertising $ 21593 $ 21600 Var Other Traffic Accounts 7)329 76500
Total $ 94922 $ 98100 Insurance
4510 Salaries and Expenses $ 18818 $ 18800 4520 Insurance PL amp PD 786322 542OOOp 4541 Insurance Workmens Compo 51458 50100p Var Other Insurance Exp 11357 11700 - shy
Fuel for Revenue Equipment _
J Total $ 867955 $ 622600 Administrative and General
4611-2 Gen Officers - Sal amp Exps $ 90806 $ 73500 4613-6 Gen Off Employees - Sal ampExp 138043 137000 4620 Law Expense 12910 16000 4630 Gen Office Supplies amp Exp 51689 44800 4640 Communication Expense 41143 45500 4652 Employees vlelfare 525737 498200 4655 Purchasing amp Stores 120790 120800 Var All Oth~r Adm amp Gen Exp 70090 53900
Total $1051208 $ 989700 Rents 15000 15000
Total Motor Coach Expense $8706423 $8144900 Cents per Mile 47middot50cent 4447cent
Coach Miles Ouer Exp Case I-B - Applicants Proposed Fares 18171 000 $8088900 -----shy
Expennes Variable with Milos Wage rates used herein are those which Ac 4140 463centmile prevailed immediately prior to 6154
4150 084 50 of total The cost of tho wage increase toJhich beshy4160 068 comes fully effective on 12154 is clnwn 4220 2052 separately in Results of Operation table 4230 286 4240 011
Total 2964centmile cent See Table 5 for Amount Under Proposed Fares 20 shy
TABLE 4
IDS ANGELES TRANSIT LUIES AMORTIZATION AND INTEREST ALLOWANCE
PAVING AND REMOVAL OBLIGATIONS - CASES I AND II APPLICATIONS NOS 35601 AND ~5728
A - Obligations from Abandonments Prior to 1954
Yearly Amortization $132000 Interest 16000
Total $148000
B - Obligations from Abandonment of Portions of IV and Rlt Lines (July 25 1954)
Yearly Amortization $ 4000 Interest 2000
Total $ 6000
C - Obligations from Abandonments as Proposed in Application No 35728 (November 1 154)
Yearly Amortization $ 35000 Interest 2JOOO
Total $ 55000
For Case I - Items A + B $154000
For Case II- Items A + B + C $209000
Includes cost of removal of electrical distribution system ($123700) and of substation equipment ($21600)
- 21 shy
LOS ANGELES TRAl~SIT Lli~S
RJBLIC LIABILITY PROPERTY DAl1AGE AND 1l0RIJftElI i S CCMFEi-TSATION EXPENSE illLATED TO SOUln~EbTT MILES Aim R3W-RLS PAS~lWEFS
CASE I - UNDER PRHSENT OPSHATIONS 1947 - 1950 Inc Jan-May Est FOr
Line Ito m 1951 1952 1953 195412 MosEnd No Total Av per Yr Annualizod 10 31 55
1 Lossos paid (n) $ 3890 $ 972 $ 1082 $ 902 $ 580 $ 262 2 Losses ostimato~ (a) 39 10 52 280 634 881 3 Reinsurance costs (a) 282 71 62 69 ____81 65 4 Total Losses_amp Insurance (a) $ 4211 $ 1053 $ 1196 $ 1251 $ 1295 $ 1208
5 Expenses paid (a) $ 1536 $ 384 $ 353 $ 385 $ 242 $ 170 6 Expenses estimated (a) 7 2 _ __ 11) 61 182 24S 7 Total expenses (a) $ 1543 $ middot 386 ~ 363 $ 446 $ 424 $415 8 Total LossesReiils amp Exp (a) $ 5754 $ 1439 1559 $ 1697 1719 $ 1622
(Lina 4- + 7) I 9 Number of claims filed 59991 14998 11588 11104 10246 9228
N
N 10 Vehiclo miles (millions) 153 4 384 356 351 346 336 I
11 Revenue Passon~crs (millions) 10093 2523 1924 1746 1661 1531
12 Loss Per 11i1 lliilos (4 ~ 10) ~27451 $27451 ~33596 $35~641 $37428 $35952 $35000
13 Loss Por i-Hllion Pass (4 11) $ 4172 $ 4172 ~ 6216 ) 7165 ~ 7797 $ 7890 $ 7500 14 Expensos por claim (7 f 9) h
ltfgt 2572 Y 25middot72 i) 3133 $ 4017 4138 $ 4497 $ 45 15 Claims per million miles (9 10) 391 391 326 316 296 275 280
16 Claims per million pass (9 11) 59 59 60 64 62 60 60
Ul p- CD (I)
(a) Thousand of dollars amp8
t-G o ~ H
J N
TABLE 5 LOS ANGELES TRANSIT LUTES Sheet 2 0 f 2
ESTIMATE OF PUBLIC LIABILITY AND PROPERTY DAMAGE AND WOBKMElJ 1 S COMPENSATION EXPENSES
FOR 12-MONTH PERIOD ENDING OCTOBER 31 1955 UNDER CASE I-A AND CASE I-B - PRESENT OPERATIONS ~lITH PRESENT amp PROPOSED FARES
Line 110
Cost Factors 1 Claims per million revenue passengers bull bull bull 2 raquo raquo vehicle miles bull bull bull 3 Expense per claim bull bull 4 Losses per million revenue passengers
raquo raquo vehicle miles bull bull bull bull 5 bull bull
60 280 45
7500 35000
Estimated Expense For PL and PD and Workmens Compensation Insurance
Case I-A Present Fares
6 Number of rovenue passengers (millions) 1395
7 Number of vehicle miles(millions) 3275
A - Basod on Number of Passengers 8 Losses 9 Expense
10 Total
B - Based 11 Losses 12 Expense 13 Total
$1046200 376700
$1422900
on Number of Vehicle Hiles $1146200
412700 $1558900
14 Average of A and B (PL amp PD and Workmen 6 Compo - $1490900
15 Workmens Compensation Insurance 101~200(a) 16 PL and PD Insurance 1389700
Distribution of Total PL amp PD Percent
17 Rail Operations 541 $ 750400 18 Trolloy Coach Operations 7 97300 19 Motor Coach Operations ~ -542000 20 Total 100 $1389700
Case I-B Proposed Fares
1341 3244
$1005700 362100
$1367800
$1135400 408700
$1544100
$1456000 100200 (b)
1355800
$ 732~100 94900
528800 $1355800
(a) Rail=$43lOO Trolley Coach=$8000 and Motor Coach=$50100
(b) Rail=$42 600_ Trolley Coach=$7 ~ 900 and Hotor Coach=$49 (00 _ --- I
- 23 shy
lA3LE 6
LOS ANGELES TRANSIT LINES ESTIHATE 041 OPERAT1NG TAXES
FOR 12 MONTHS ENDING OCTOBER 31 1955 CASE I - PRESENT OPERATIONS
APPLICATION NO 35601
Book Record Case I-A Case I-B L1ne I t e m 12 Months Present Proposed
No End 5-31~ Fares Fares(~ ) -=-----=-(3)~--=--~r(4~)~-(1)
1 City Franchise Taxes $ 473687 $ 434600 ~ 481900
2 Property Taxes-Ad Valorem 457963 435000 435000
3 Fuel and Oil Taxes 360580 337700 335100
4 Motor Vehicle License Taxes 136984 Ib8 900 168900
5 Transportation License 15600 21~00 (3 B of EHlshy
6 payroll Tuxes 265000 262500
Other raxes 7000 70007
Total ~ip 1 603 800
Net after weight fee credit
-24shy
- - - - - ------
LCB ANGELES TRANSIT LINFS Table 3 ESTIMATE OF TROLLEY COACH OPERATING EXPENSES Sheet 2 of 3
CASE I - UNDER PRESENT OPERATIONS
Acct No I t e m
Coach Miles Way and Structures
1-24 All Accounts Equipment
29 Superintendence 30amp33 Mtce Rev Equipment Var Other Mtce Accounts
Total Power
45 --superintendenoe 52 Power Plant Employees 59 Power Purchased
Var Other Power Accounts Total
Conduoting Transportation 63 Superintendence 64 Operators Wages 70 Car House Employees
Var Other Condo Transp Accounts Total
Traffic 79 Superintendence 80 Advertising
Total General
83 Gen Off - Sal amp Exp 84 85
Gen Off Emp - Sal amp Exp Gen Off Supplies amp Exps
88 Pensions (93 Insurance PL amp PD (93 Insurance Worlanen s Comp (93 Insurance Other
Var Other General Accounts Total
Total Operating Expense
Cents per Mile
Case I-B - Applicants Proposed Fares
Expenses Variable with Coach Miles Acs 30amp33 477centmile
59 3038 64 2342 70 075 50 of total
Total 3232centjmi1e
~ See Table 5 for Amount Under Proposed Fares
Company Estfor 12 ME Recorda Ending Jan-May 1954 103155 I ~
Annualized Present Fares ~
2629188 2546000
$ 26518 $ 27000
$ 32628 $ 32600 125469 121400
11012 9600 $ 169109 $ 163600
$ 3770 $ 3800 35770 35BOO 75017 86000 1
8417 9000 $ 122974 $ 134600
$ 99161 $ 99200 612513 596300
38273 38300 21802 21500
$ 771749 $ 755300
$ 979 $ 1000 3588 3600
$ 4567 $ 4600
$ 15134 $ 12100 22990 23000 5669 5700
87614 83000 165089 97300 I
8516 8000 ~ 3054 3100
49076 48700 $ 357142 $ 280900 6
$1452059 $1366000
5523cent 5365cent
Coach Miles Oper Exp 2521000 $1355400 -- -0
Wage rates used herein are those which prevailed immedshyiately prior to 6154 The cost of the wage i~crease which becomes fully effective on 12154 is shown separately in Results of Operations table
- 19 shy
LOS ANGELES TRANS1 LINS TABLE 3 ESTIMATE OF MOTOR COAOH OPERATING EXPENSE Sheet 3 of 3
CASE I - UNDER PRESENT OPERATIONS
Company Estimate for Records 12 months
Jan - May Ending Acct 1954 103155 No I t e m Annualized Present Fares ~
Coach Miles 1832~158 18314000 Equipment Maintenance amp Gara~ Expense
4110 Supv - Shop and Gar $ 142788 $ 142800 4140-2 Repairs to Rev E~uipment 1097376 848800 4150 Servicing Rev Equipment 308373 307700 4160 Tires - Rev Equipment 123305 125200 Var Other Maint Accounts 151444 147300
Total $1823286 $1571800 Transportation Expense
4210 Supervision of Transp $ 487284 $ 487300 4220 Drivers I vrages 3767184 37589001= 3) bull
4230 522175 523800 )0
4240 Oil for Revenue Equipment 17256 19500 JOJ
Var Other Trans Exp Accounts 60153 58200 Total $4854052 $4847700
Traffic and Advertising 4470 Advertising $ 21593 $ 21600 Var Other Traffic Accounts 7)329 76500
Total $ 94922 $ 98100 Insurance
4510 Salaries and Expenses $ 18818 $ 18800 4520 Insurance PL amp PD 786322 542OOOp 4541 Insurance Workmens Compo 51458 50100p Var Other Insurance Exp 11357 11700 - shy
Fuel for Revenue Equipment _
J Total $ 867955 $ 622600 Administrative and General
4611-2 Gen Officers - Sal amp Exps $ 90806 $ 73500 4613-6 Gen Off Employees - Sal ampExp 138043 137000 4620 Law Expense 12910 16000 4630 Gen Office Supplies amp Exp 51689 44800 4640 Communication Expense 41143 45500 4652 Employees vlelfare 525737 498200 4655 Purchasing amp Stores 120790 120800 Var All Oth~r Adm amp Gen Exp 70090 53900
Total $1051208 $ 989700 Rents 15000 15000
Total Motor Coach Expense $8706423 $8144900 Cents per Mile 47middot50cent 4447cent
Coach Miles Ouer Exp Case I-B - Applicants Proposed Fares 18171 000 $8088900 -----shy
Expennes Variable with Milos Wage rates used herein are those which Ac 4140 463centmile prevailed immediately prior to 6154
4150 084 50 of total The cost of tho wage increase toJhich beshy4160 068 comes fully effective on 12154 is clnwn 4220 2052 separately in Results of Operation table 4230 286 4240 011
Total 2964centmile cent See Table 5 for Amount Under Proposed Fares 20 shy
TABLE 4
IDS ANGELES TRANSIT LUIES AMORTIZATION AND INTEREST ALLOWANCE
PAVING AND REMOVAL OBLIGATIONS - CASES I AND II APPLICATIONS NOS 35601 AND ~5728
A - Obligations from Abandonments Prior to 1954
Yearly Amortization $132000 Interest 16000
Total $148000
B - Obligations from Abandonment of Portions of IV and Rlt Lines (July 25 1954)
Yearly Amortization $ 4000 Interest 2000
Total $ 6000
C - Obligations from Abandonments as Proposed in Application No 35728 (November 1 154)
Yearly Amortization $ 35000 Interest 2JOOO
Total $ 55000
For Case I - Items A + B $154000
For Case II- Items A + B + C $209000
Includes cost of removal of electrical distribution system ($123700) and of substation equipment ($21600)
- 21 shy
LOS ANGELES TRAl~SIT Lli~S
RJBLIC LIABILITY PROPERTY DAl1AGE AND 1l0RIJftElI i S CCMFEi-TSATION EXPENSE illLATED TO SOUln~EbTT MILES Aim R3W-RLS PAS~lWEFS
CASE I - UNDER PRHSENT OPSHATIONS 1947 - 1950 Inc Jan-May Est FOr
Line Ito m 1951 1952 1953 195412 MosEnd No Total Av per Yr Annualizod 10 31 55
1 Lossos paid (n) $ 3890 $ 972 $ 1082 $ 902 $ 580 $ 262 2 Losses ostimato~ (a) 39 10 52 280 634 881 3 Reinsurance costs (a) 282 71 62 69 ____81 65 4 Total Losses_amp Insurance (a) $ 4211 $ 1053 $ 1196 $ 1251 $ 1295 $ 1208
5 Expenses paid (a) $ 1536 $ 384 $ 353 $ 385 $ 242 $ 170 6 Expenses estimated (a) 7 2 _ __ 11) 61 182 24S 7 Total expenses (a) $ 1543 $ middot 386 ~ 363 $ 446 $ 424 $415 8 Total LossesReiils amp Exp (a) $ 5754 $ 1439 1559 $ 1697 1719 $ 1622
(Lina 4- + 7) I 9 Number of claims filed 59991 14998 11588 11104 10246 9228
N
N 10 Vehiclo miles (millions) 153 4 384 356 351 346 336 I
11 Revenue Passon~crs (millions) 10093 2523 1924 1746 1661 1531
12 Loss Per 11i1 lliilos (4 ~ 10) ~27451 $27451 ~33596 $35~641 $37428 $35952 $35000
13 Loss Por i-Hllion Pass (4 11) $ 4172 $ 4172 ~ 6216 ) 7165 ~ 7797 $ 7890 $ 7500 14 Expensos por claim (7 f 9) h
ltfgt 2572 Y 25middot72 i) 3133 $ 4017 4138 $ 4497 $ 45 15 Claims per million miles (9 10) 391 391 326 316 296 275 280
16 Claims per million pass (9 11) 59 59 60 64 62 60 60
Ul p- CD (I)
(a) Thousand of dollars amp8
t-G o ~ H
J N
TABLE 5 LOS ANGELES TRANSIT LUTES Sheet 2 0 f 2
ESTIMATE OF PUBLIC LIABILITY AND PROPERTY DAMAGE AND WOBKMElJ 1 S COMPENSATION EXPENSES
FOR 12-MONTH PERIOD ENDING OCTOBER 31 1955 UNDER CASE I-A AND CASE I-B - PRESENT OPERATIONS ~lITH PRESENT amp PROPOSED FARES
Line 110
Cost Factors 1 Claims per million revenue passengers bull bull bull 2 raquo raquo vehicle miles bull bull bull 3 Expense per claim bull bull 4 Losses per million revenue passengers
raquo raquo vehicle miles bull bull bull bull 5 bull bull
60 280 45
7500 35000
Estimated Expense For PL and PD and Workmens Compensation Insurance
Case I-A Present Fares
6 Number of rovenue passengers (millions) 1395
7 Number of vehicle miles(millions) 3275
A - Basod on Number of Passengers 8 Losses 9 Expense
10 Total
B - Based 11 Losses 12 Expense 13 Total
$1046200 376700
$1422900
on Number of Vehicle Hiles $1146200
412700 $1558900
14 Average of A and B (PL amp PD and Workmen 6 Compo - $1490900
15 Workmens Compensation Insurance 101~200(a) 16 PL and PD Insurance 1389700
Distribution of Total PL amp PD Percent
17 Rail Operations 541 $ 750400 18 Trolloy Coach Operations 7 97300 19 Motor Coach Operations ~ -542000 20 Total 100 $1389700
Case I-B Proposed Fares
1341 3244
$1005700 362100
$1367800
$1135400 408700
$1544100
$1456000 100200 (b)
1355800
$ 732~100 94900
528800 $1355800
(a) Rail=$43lOO Trolley Coach=$8000 and Motor Coach=$50100
(b) Rail=$42 600_ Trolley Coach=$7 ~ 900 and Hotor Coach=$49 (00 _ --- I
- 23 shy
lA3LE 6
LOS ANGELES TRANSIT LINES ESTIHATE 041 OPERAT1NG TAXES
FOR 12 MONTHS ENDING OCTOBER 31 1955 CASE I - PRESENT OPERATIONS
APPLICATION NO 35601
Book Record Case I-A Case I-B L1ne I t e m 12 Months Present Proposed
No End 5-31~ Fares Fares(~ ) -=-----=-(3)~--=--~r(4~)~-(1)
1 City Franchise Taxes $ 473687 $ 434600 ~ 481900
2 Property Taxes-Ad Valorem 457963 435000 435000
3 Fuel and Oil Taxes 360580 337700 335100
4 Motor Vehicle License Taxes 136984 Ib8 900 168900
5 Transportation License 15600 21~00 (3 B of EHlshy
6 payroll Tuxes 265000 262500
Other raxes 7000 70007
Total ~ip 1 603 800
Net after weight fee credit
-24shy
LOS ANGELES TRANS1 LINS TABLE 3 ESTIMATE OF MOTOR COAOH OPERATING EXPENSE Sheet 3 of 3
CASE I - UNDER PRESENT OPERATIONS
Company Estimate for Records 12 months
Jan - May Ending Acct 1954 103155 No I t e m Annualized Present Fares ~
Coach Miles 1832~158 18314000 Equipment Maintenance amp Gara~ Expense
4110 Supv - Shop and Gar $ 142788 $ 142800 4140-2 Repairs to Rev E~uipment 1097376 848800 4150 Servicing Rev Equipment 308373 307700 4160 Tires - Rev Equipment 123305 125200 Var Other Maint Accounts 151444 147300
Total $1823286 $1571800 Transportation Expense
4210 Supervision of Transp $ 487284 $ 487300 4220 Drivers I vrages 3767184 37589001= 3) bull
4230 522175 523800 )0
4240 Oil for Revenue Equipment 17256 19500 JOJ
Var Other Trans Exp Accounts 60153 58200 Total $4854052 $4847700
Traffic and Advertising 4470 Advertising $ 21593 $ 21600 Var Other Traffic Accounts 7)329 76500
Total $ 94922 $ 98100 Insurance
4510 Salaries and Expenses $ 18818 $ 18800 4520 Insurance PL amp PD 786322 542OOOp 4541 Insurance Workmens Compo 51458 50100p Var Other Insurance Exp 11357 11700 - shy
Fuel for Revenue Equipment _
J Total $ 867955 $ 622600 Administrative and General
4611-2 Gen Officers - Sal amp Exps $ 90806 $ 73500 4613-6 Gen Off Employees - Sal ampExp 138043 137000 4620 Law Expense 12910 16000 4630 Gen Office Supplies amp Exp 51689 44800 4640 Communication Expense 41143 45500 4652 Employees vlelfare 525737 498200 4655 Purchasing amp Stores 120790 120800 Var All Oth~r Adm amp Gen Exp 70090 53900
Total $1051208 $ 989700 Rents 15000 15000
Total Motor Coach Expense $8706423 $8144900 Cents per Mile 47middot50cent 4447cent
Coach Miles Ouer Exp Case I-B - Applicants Proposed Fares 18171 000 $8088900 -----shy
Expennes Variable with Milos Wage rates used herein are those which Ac 4140 463centmile prevailed immediately prior to 6154
4150 084 50 of total The cost of tho wage increase toJhich beshy4160 068 comes fully effective on 12154 is clnwn 4220 2052 separately in Results of Operation table 4230 286 4240 011
Total 2964centmile cent See Table 5 for Amount Under Proposed Fares 20 shy
TABLE 4
IDS ANGELES TRANSIT LUIES AMORTIZATION AND INTEREST ALLOWANCE
PAVING AND REMOVAL OBLIGATIONS - CASES I AND II APPLICATIONS NOS 35601 AND ~5728
A - Obligations from Abandonments Prior to 1954
Yearly Amortization $132000 Interest 16000
Total $148000
B - Obligations from Abandonment of Portions of IV and Rlt Lines (July 25 1954)
Yearly Amortization $ 4000 Interest 2000
Total $ 6000
C - Obligations from Abandonments as Proposed in Application No 35728 (November 1 154)
Yearly Amortization $ 35000 Interest 2JOOO
Total $ 55000
For Case I - Items A + B $154000
For Case II- Items A + B + C $209000
Includes cost of removal of electrical distribution system ($123700) and of substation equipment ($21600)
- 21 shy
LOS ANGELES TRAl~SIT Lli~S
RJBLIC LIABILITY PROPERTY DAl1AGE AND 1l0RIJftElI i S CCMFEi-TSATION EXPENSE illLATED TO SOUln~EbTT MILES Aim R3W-RLS PAS~lWEFS
CASE I - UNDER PRHSENT OPSHATIONS 1947 - 1950 Inc Jan-May Est FOr
Line Ito m 1951 1952 1953 195412 MosEnd No Total Av per Yr Annualizod 10 31 55
1 Lossos paid (n) $ 3890 $ 972 $ 1082 $ 902 $ 580 $ 262 2 Losses ostimato~ (a) 39 10 52 280 634 881 3 Reinsurance costs (a) 282 71 62 69 ____81 65 4 Total Losses_amp Insurance (a) $ 4211 $ 1053 $ 1196 $ 1251 $ 1295 $ 1208
5 Expenses paid (a) $ 1536 $ 384 $ 353 $ 385 $ 242 $ 170 6 Expenses estimated (a) 7 2 _ __ 11) 61 182 24S 7 Total expenses (a) $ 1543 $ middot 386 ~ 363 $ 446 $ 424 $415 8 Total LossesReiils amp Exp (a) $ 5754 $ 1439 1559 $ 1697 1719 $ 1622
(Lina 4- + 7) I 9 Number of claims filed 59991 14998 11588 11104 10246 9228
N
N 10 Vehiclo miles (millions) 153 4 384 356 351 346 336 I
11 Revenue Passon~crs (millions) 10093 2523 1924 1746 1661 1531
12 Loss Per 11i1 lliilos (4 ~ 10) ~27451 $27451 ~33596 $35~641 $37428 $35952 $35000
13 Loss Por i-Hllion Pass (4 11) $ 4172 $ 4172 ~ 6216 ) 7165 ~ 7797 $ 7890 $ 7500 14 Expensos por claim (7 f 9) h
ltfgt 2572 Y 25middot72 i) 3133 $ 4017 4138 $ 4497 $ 45 15 Claims per million miles (9 10) 391 391 326 316 296 275 280
16 Claims per million pass (9 11) 59 59 60 64 62 60 60
Ul p- CD (I)
(a) Thousand of dollars amp8
t-G o ~ H
J N
TABLE 5 LOS ANGELES TRANSIT LUTES Sheet 2 0 f 2
ESTIMATE OF PUBLIC LIABILITY AND PROPERTY DAMAGE AND WOBKMElJ 1 S COMPENSATION EXPENSES
FOR 12-MONTH PERIOD ENDING OCTOBER 31 1955 UNDER CASE I-A AND CASE I-B - PRESENT OPERATIONS ~lITH PRESENT amp PROPOSED FARES
Line 110
Cost Factors 1 Claims per million revenue passengers bull bull bull 2 raquo raquo vehicle miles bull bull bull 3 Expense per claim bull bull 4 Losses per million revenue passengers
raquo raquo vehicle miles bull bull bull bull 5 bull bull
60 280 45
7500 35000
Estimated Expense For PL and PD and Workmens Compensation Insurance
Case I-A Present Fares
6 Number of rovenue passengers (millions) 1395
7 Number of vehicle miles(millions) 3275
A - Basod on Number of Passengers 8 Losses 9 Expense
10 Total
B - Based 11 Losses 12 Expense 13 Total
$1046200 376700
$1422900
on Number of Vehicle Hiles $1146200
412700 $1558900
14 Average of A and B (PL amp PD and Workmen 6 Compo - $1490900
15 Workmens Compensation Insurance 101~200(a) 16 PL and PD Insurance 1389700
Distribution of Total PL amp PD Percent
17 Rail Operations 541 $ 750400 18 Trolloy Coach Operations 7 97300 19 Motor Coach Operations ~ -542000 20 Total 100 $1389700
Case I-B Proposed Fares
1341 3244
$1005700 362100
$1367800
$1135400 408700
$1544100
$1456000 100200 (b)
1355800
$ 732~100 94900
528800 $1355800
(a) Rail=$43lOO Trolley Coach=$8000 and Motor Coach=$50100
(b) Rail=$42 600_ Trolley Coach=$7 ~ 900 and Hotor Coach=$49 (00 _ --- I
- 23 shy
lA3LE 6
LOS ANGELES TRANSIT LINES ESTIHATE 041 OPERAT1NG TAXES
FOR 12 MONTHS ENDING OCTOBER 31 1955 CASE I - PRESENT OPERATIONS
APPLICATION NO 35601
Book Record Case I-A Case I-B L1ne I t e m 12 Months Present Proposed
No End 5-31~ Fares Fares(~ ) -=-----=-(3)~--=--~r(4~)~-(1)
1 City Franchise Taxes $ 473687 $ 434600 ~ 481900
2 Property Taxes-Ad Valorem 457963 435000 435000
3 Fuel and Oil Taxes 360580 337700 335100
4 Motor Vehicle License Taxes 136984 Ib8 900 168900
5 Transportation License 15600 21~00 (3 B of EHlshy
6 payroll Tuxes 265000 262500
Other raxes 7000 70007
Total ~ip 1 603 800
Net after weight fee credit
-24shy
TABLE 4
IDS ANGELES TRANSIT LUIES AMORTIZATION AND INTEREST ALLOWANCE
PAVING AND REMOVAL OBLIGATIONS - CASES I AND II APPLICATIONS NOS 35601 AND ~5728
A - Obligations from Abandonments Prior to 1954
Yearly Amortization $132000 Interest 16000
Total $148000
B - Obligations from Abandonment of Portions of IV and Rlt Lines (July 25 1954)
Yearly Amortization $ 4000 Interest 2000
Total $ 6000
C - Obligations from Abandonments as Proposed in Application No 35728 (November 1 154)
Yearly Amortization $ 35000 Interest 2JOOO
Total $ 55000
For Case I - Items A + B $154000
For Case II- Items A + B + C $209000
Includes cost of removal of electrical distribution system ($123700) and of substation equipment ($21600)
- 21 shy
LOS ANGELES TRAl~SIT Lli~S
RJBLIC LIABILITY PROPERTY DAl1AGE AND 1l0RIJftElI i S CCMFEi-TSATION EXPENSE illLATED TO SOUln~EbTT MILES Aim R3W-RLS PAS~lWEFS
CASE I - UNDER PRHSENT OPSHATIONS 1947 - 1950 Inc Jan-May Est FOr
Line Ito m 1951 1952 1953 195412 MosEnd No Total Av per Yr Annualizod 10 31 55
1 Lossos paid (n) $ 3890 $ 972 $ 1082 $ 902 $ 580 $ 262 2 Losses ostimato~ (a) 39 10 52 280 634 881 3 Reinsurance costs (a) 282 71 62 69 ____81 65 4 Total Losses_amp Insurance (a) $ 4211 $ 1053 $ 1196 $ 1251 $ 1295 $ 1208
5 Expenses paid (a) $ 1536 $ 384 $ 353 $ 385 $ 242 $ 170 6 Expenses estimated (a) 7 2 _ __ 11) 61 182 24S 7 Total expenses (a) $ 1543 $ middot 386 ~ 363 $ 446 $ 424 $415 8 Total LossesReiils amp Exp (a) $ 5754 $ 1439 1559 $ 1697 1719 $ 1622
(Lina 4- + 7) I 9 Number of claims filed 59991 14998 11588 11104 10246 9228
N
N 10 Vehiclo miles (millions) 153 4 384 356 351 346 336 I
11 Revenue Passon~crs (millions) 10093 2523 1924 1746 1661 1531
12 Loss Per 11i1 lliilos (4 ~ 10) ~27451 $27451 ~33596 $35~641 $37428 $35952 $35000
13 Loss Por i-Hllion Pass (4 11) $ 4172 $ 4172 ~ 6216 ) 7165 ~ 7797 $ 7890 $ 7500 14 Expensos por claim (7 f 9) h
ltfgt 2572 Y 25middot72 i) 3133 $ 4017 4138 $ 4497 $ 45 15 Claims per million miles (9 10) 391 391 326 316 296 275 280
16 Claims per million pass (9 11) 59 59 60 64 62 60 60
Ul p- CD (I)
(a) Thousand of dollars amp8
t-G o ~ H
J N
TABLE 5 LOS ANGELES TRANSIT LUTES Sheet 2 0 f 2
ESTIMATE OF PUBLIC LIABILITY AND PROPERTY DAMAGE AND WOBKMElJ 1 S COMPENSATION EXPENSES
FOR 12-MONTH PERIOD ENDING OCTOBER 31 1955 UNDER CASE I-A AND CASE I-B - PRESENT OPERATIONS ~lITH PRESENT amp PROPOSED FARES
Line 110
Cost Factors 1 Claims per million revenue passengers bull bull bull 2 raquo raquo vehicle miles bull bull bull 3 Expense per claim bull bull 4 Losses per million revenue passengers
raquo raquo vehicle miles bull bull bull bull 5 bull bull
60 280 45
7500 35000
Estimated Expense For PL and PD and Workmens Compensation Insurance
Case I-A Present Fares
6 Number of rovenue passengers (millions) 1395
7 Number of vehicle miles(millions) 3275
A - Basod on Number of Passengers 8 Losses 9 Expense
10 Total
B - Based 11 Losses 12 Expense 13 Total
$1046200 376700
$1422900
on Number of Vehicle Hiles $1146200
412700 $1558900
14 Average of A and B (PL amp PD and Workmen 6 Compo - $1490900
15 Workmens Compensation Insurance 101~200(a) 16 PL and PD Insurance 1389700
Distribution of Total PL amp PD Percent
17 Rail Operations 541 $ 750400 18 Trolloy Coach Operations 7 97300 19 Motor Coach Operations ~ -542000 20 Total 100 $1389700
Case I-B Proposed Fares
1341 3244
$1005700 362100
$1367800
$1135400 408700
$1544100
$1456000 100200 (b)
1355800
$ 732~100 94900
528800 $1355800
(a) Rail=$43lOO Trolley Coach=$8000 and Motor Coach=$50100
(b) Rail=$42 600_ Trolley Coach=$7 ~ 900 and Hotor Coach=$49 (00 _ --- I
- 23 shy
lA3LE 6
LOS ANGELES TRANSIT LINES ESTIHATE 041 OPERAT1NG TAXES
FOR 12 MONTHS ENDING OCTOBER 31 1955 CASE I - PRESENT OPERATIONS
APPLICATION NO 35601
Book Record Case I-A Case I-B L1ne I t e m 12 Months Present Proposed
No End 5-31~ Fares Fares(~ ) -=-----=-(3)~--=--~r(4~)~-(1)
1 City Franchise Taxes $ 473687 $ 434600 ~ 481900
2 Property Taxes-Ad Valorem 457963 435000 435000
3 Fuel and Oil Taxes 360580 337700 335100
4 Motor Vehicle License Taxes 136984 Ib8 900 168900
5 Transportation License 15600 21~00 (3 B of EHlshy
6 payroll Tuxes 265000 262500
Other raxes 7000 70007
Total ~ip 1 603 800
Net after weight fee credit
-24shy
LOS ANGELES TRAl~SIT Lli~S
RJBLIC LIABILITY PROPERTY DAl1AGE AND 1l0RIJftElI i S CCMFEi-TSATION EXPENSE illLATED TO SOUln~EbTT MILES Aim R3W-RLS PAS~lWEFS
CASE I - UNDER PRHSENT OPSHATIONS 1947 - 1950 Inc Jan-May Est FOr
Line Ito m 1951 1952 1953 195412 MosEnd No Total Av per Yr Annualizod 10 31 55
1 Lossos paid (n) $ 3890 $ 972 $ 1082 $ 902 $ 580 $ 262 2 Losses ostimato~ (a) 39 10 52 280 634 881 3 Reinsurance costs (a) 282 71 62 69 ____81 65 4 Total Losses_amp Insurance (a) $ 4211 $ 1053 $ 1196 $ 1251 $ 1295 $ 1208
5 Expenses paid (a) $ 1536 $ 384 $ 353 $ 385 $ 242 $ 170 6 Expenses estimated (a) 7 2 _ __ 11) 61 182 24S 7 Total expenses (a) $ 1543 $ middot 386 ~ 363 $ 446 $ 424 $415 8 Total LossesReiils amp Exp (a) $ 5754 $ 1439 1559 $ 1697 1719 $ 1622
(Lina 4- + 7) I 9 Number of claims filed 59991 14998 11588 11104 10246 9228
N
N 10 Vehiclo miles (millions) 153 4 384 356 351 346 336 I
11 Revenue Passon~crs (millions) 10093 2523 1924 1746 1661 1531
12 Loss Per 11i1 lliilos (4 ~ 10) ~27451 $27451 ~33596 $35~641 $37428 $35952 $35000
13 Loss Por i-Hllion Pass (4 11) $ 4172 $ 4172 ~ 6216 ) 7165 ~ 7797 $ 7890 $ 7500 14 Expensos por claim (7 f 9) h
ltfgt 2572 Y 25middot72 i) 3133 $ 4017 4138 $ 4497 $ 45 15 Claims per million miles (9 10) 391 391 326 316 296 275 280
16 Claims per million pass (9 11) 59 59 60 64 62 60 60
Ul p- CD (I)
(a) Thousand of dollars amp8
t-G o ~ H
J N
TABLE 5 LOS ANGELES TRANSIT LUTES Sheet 2 0 f 2
ESTIMATE OF PUBLIC LIABILITY AND PROPERTY DAMAGE AND WOBKMElJ 1 S COMPENSATION EXPENSES
FOR 12-MONTH PERIOD ENDING OCTOBER 31 1955 UNDER CASE I-A AND CASE I-B - PRESENT OPERATIONS ~lITH PRESENT amp PROPOSED FARES
Line 110
Cost Factors 1 Claims per million revenue passengers bull bull bull 2 raquo raquo vehicle miles bull bull bull 3 Expense per claim bull bull 4 Losses per million revenue passengers
raquo raquo vehicle miles bull bull bull bull 5 bull bull
60 280 45
7500 35000
Estimated Expense For PL and PD and Workmens Compensation Insurance
Case I-A Present Fares
6 Number of rovenue passengers (millions) 1395
7 Number of vehicle miles(millions) 3275
A - Basod on Number of Passengers 8 Losses 9 Expense
10 Total
B - Based 11 Losses 12 Expense 13 Total
$1046200 376700
$1422900
on Number of Vehicle Hiles $1146200
412700 $1558900
14 Average of A and B (PL amp PD and Workmen 6 Compo - $1490900
15 Workmens Compensation Insurance 101~200(a) 16 PL and PD Insurance 1389700
Distribution of Total PL amp PD Percent
17 Rail Operations 541 $ 750400 18 Trolloy Coach Operations 7 97300 19 Motor Coach Operations ~ -542000 20 Total 100 $1389700
Case I-B Proposed Fares
1341 3244
$1005700 362100
$1367800
$1135400 408700
$1544100
$1456000 100200 (b)
1355800
$ 732~100 94900
528800 $1355800
(a) Rail=$43lOO Trolley Coach=$8000 and Motor Coach=$50100
(b) Rail=$42 600_ Trolley Coach=$7 ~ 900 and Hotor Coach=$49 (00 _ --- I
- 23 shy
lA3LE 6
LOS ANGELES TRANSIT LINES ESTIHATE 041 OPERAT1NG TAXES
FOR 12 MONTHS ENDING OCTOBER 31 1955 CASE I - PRESENT OPERATIONS
APPLICATION NO 35601
Book Record Case I-A Case I-B L1ne I t e m 12 Months Present Proposed
No End 5-31~ Fares Fares(~ ) -=-----=-(3)~--=--~r(4~)~-(1)
1 City Franchise Taxes $ 473687 $ 434600 ~ 481900
2 Property Taxes-Ad Valorem 457963 435000 435000
3 Fuel and Oil Taxes 360580 337700 335100
4 Motor Vehicle License Taxes 136984 Ib8 900 168900
5 Transportation License 15600 21~00 (3 B of EHlshy
6 payroll Tuxes 265000 262500
Other raxes 7000 70007
Total ~ip 1 603 800
Net after weight fee credit
-24shy
TABLE 5 LOS ANGELES TRANSIT LUTES Sheet 2 0 f 2
ESTIMATE OF PUBLIC LIABILITY AND PROPERTY DAMAGE AND WOBKMElJ 1 S COMPENSATION EXPENSES
FOR 12-MONTH PERIOD ENDING OCTOBER 31 1955 UNDER CASE I-A AND CASE I-B - PRESENT OPERATIONS ~lITH PRESENT amp PROPOSED FARES
Line 110
Cost Factors 1 Claims per million revenue passengers bull bull bull 2 raquo raquo vehicle miles bull bull bull 3 Expense per claim bull bull 4 Losses per million revenue passengers
raquo raquo vehicle miles bull bull bull bull 5 bull bull
60 280 45
7500 35000
Estimated Expense For PL and PD and Workmens Compensation Insurance
Case I-A Present Fares
6 Number of rovenue passengers (millions) 1395
7 Number of vehicle miles(millions) 3275
A - Basod on Number of Passengers 8 Losses 9 Expense
10 Total
B - Based 11 Losses 12 Expense 13 Total
$1046200 376700
$1422900
on Number of Vehicle Hiles $1146200
412700 $1558900
14 Average of A and B (PL amp PD and Workmen 6 Compo - $1490900
15 Workmens Compensation Insurance 101~200(a) 16 PL and PD Insurance 1389700
Distribution of Total PL amp PD Percent
17 Rail Operations 541 $ 750400 18 Trolloy Coach Operations 7 97300 19 Motor Coach Operations ~ -542000 20 Total 100 $1389700
Case I-B Proposed Fares
1341 3244
$1005700 362100
$1367800
$1135400 408700
$1544100
$1456000 100200 (b)
1355800
$ 732~100 94900
528800 $1355800
(a) Rail=$43lOO Trolley Coach=$8000 and Motor Coach=$50100
(b) Rail=$42 600_ Trolley Coach=$7 ~ 900 and Hotor Coach=$49 (00 _ --- I
- 23 shy
lA3LE 6
LOS ANGELES TRANSIT LINES ESTIHATE 041 OPERAT1NG TAXES
FOR 12 MONTHS ENDING OCTOBER 31 1955 CASE I - PRESENT OPERATIONS
APPLICATION NO 35601
Book Record Case I-A Case I-B L1ne I t e m 12 Months Present Proposed
No End 5-31~ Fares Fares(~ ) -=-----=-(3)~--=--~r(4~)~-(1)
1 City Franchise Taxes $ 473687 $ 434600 ~ 481900
2 Property Taxes-Ad Valorem 457963 435000 435000
3 Fuel and Oil Taxes 360580 337700 335100
4 Motor Vehicle License Taxes 136984 Ib8 900 168900
5 Transportation License 15600 21~00 (3 B of EHlshy
6 payroll Tuxes 265000 262500
Other raxes 7000 70007
Total ~ip 1 603 800
Net after weight fee credit
-24shy
lA3LE 6
LOS ANGELES TRANSIT LINES ESTIHATE 041 OPERAT1NG TAXES
FOR 12 MONTHS ENDING OCTOBER 31 1955 CASE I - PRESENT OPERATIONS
APPLICATION NO 35601
Book Record Case I-A Case I-B L1ne I t e m 12 Months Present Proposed
No End 5-31~ Fares Fares(~ ) -=-----=-(3)~--=--~r(4~)~-(1)
1 City Franchise Taxes $ 473687 $ 434600 ~ 481900
2 Property Taxes-Ad Valorem 457963 435000 435000
3 Fuel and Oil Taxes 360580 337700 335100
4 Motor Vehicle License Taxes 136984 Ib8 900 168900
5 Transportation License 15600 21~00 (3 B of EHlshy
6 payroll Tuxes 265000 262500
Other raxes 7000 70007
Total ~ip 1 603 800
Net after weight fee credit
-24shy