CALIFORNIA PUBLIC UTILITIES COMMISSION
TRUCK AND PASSENGER TRANSPORT ENGINEERING BRANCli
CASE NO. 5976 COHMISSION DJVESTIDATION INTO THE SERVICE, OPERATIONS AND PRACTICES OF HEIEN C. McQUIGGIN! ADl:1INISTRATRIX OF THE ESTATE OF NICHOLAS CAPRARO. DOING BUSINESS AS PALO ALTO TRANSI!
ENGINEERING-ECONOMIC REPORT SHOWING ESTIMATED RESULTS OF OPERATION OF rAID ALTO TRANSIT FOR THE YEAR 1958
John L. Pearson Principal Transportation Engineer
Albert C. Porter
Associate Transportation Engineer
San Francisco, California
October 2, 1957
Case No. 5976 Commission Investigation into the Service, 0Eera~ions and Practices of Helen C. HcQuiggin. Administratrix of the Estate of Nicholas Capraro, Doing Busine~ Palo Alto Transit General History of Palo Alto Transit By Decision No. 25694 of this Commission, effective March 7, 1933, Peninsular Railway, a subsidj.ary of the Southern Pacific Company, was granted a certificate to operate a passenger stage service between Palo Alto and San Jose via Los Altos.
This operation was intended primarily to replace a then existing
rail-trolley passenger operation in the general area. Effective December 22, 1934, by Decision No. 27617 of this Commission, the operating rights established by Decision No. 25694 were sold to Floyd B. Pearson, who continued the operation as an individual, doing business as Palo Alto Transit, until April 1, 1950. sold
At that time, by Decision No. 43S4S, Palo Alto Transit was
Nicholas Capraro, who continued the operation.
At the present time, the
operation's ownership is vested in the estate of Mre Capraro, administered by his daughter, Mrs. Helen C.
the operation being managed by Vincent IvicQuiggin,
Mrs. McQuiggin's husband e As of August 26, 1957, Palo Alto Transit, without Corrunission authoritJ' :/ discontinued service between Loyola Corners (a point just south of Los Altos) and Palo Alto.
Service now exists only between Loyola Corners and downtown San Jose.
The reason given by the carrier for this cutback in service was a deteriorating financial condition. Palo Alto Transit and Southern Pacific Company maintain a joint honoring tariff which was first authorized by this Commission in Decision No. 25694.
By this tariff, Palo Alto Transit honored Southern Pacific passenger
tickets to or from Palo Alto.
This arrangement was in effect until February If
1957, when Southern Pacific Company, without authority of this Commission,
- 1 足
discontinued the arrangement by cancelling the tariff.
The company was directed
by the Commission to reinstate the tariff, which was done on May 25, 1957. Prior to February 1, 1957, Palo Alto Transit was reimbursed approximately $1,000 per month by Southern Pacific based on an assumed passenger count and a rate of 35¢ per Southern Pacific passenger handled under the joint tariff.
reinstatement of the honoring tariff, Southern Pacific Company took the position that it \vould reimburse Palo Alto Transit at its full one-way tariff fares, averaging about 35¢ per passenger, for actual Southern Pacific Company tickets honored.
This arrangement did not meet with the approval of Palo Alto Transit,
and Southern Pacific Company tickets were not honored by the bus company until directed tc do so by the Commission.
Just prior to the previously mentioned
cutback in service, very few Southern Pacific passengers were taking advantage of the arrangement.
The fact that Southern Pacific tickets were not honored for
at least four months apparently discouraged practically all joint traffic from using Palo Alto Transit. Fare Histor,;y Until July 1954, Palo Alto Transit operated on fares placed in effect on March 7, 1933 when the stage line was established by Peninsular Railway. fare was
and, beginning at 10¢ there were 5¢ intervals with 55¢ the maximum fare.
There were also provisions for round-trip. commute, and school fares.
No. 50247, dated July 6, 1954, in Application No. 35398, fares were increased and ranged, by 5¢ intervals, from l5¢ to 55¢.
Round-trip, commute, and school fares
were also adjusted. Fares were increased again on Hay 2, 1957, by Decision No. 54897 in Application No. 38842.
The basic range of 15¢ to 55¢ was retained with intermediate
fares increased by 5¢.
(See following tabulation)
continued except for the 55¢ zone.
Round-trip fares were dis
Commute and school tickets were increased
by about 15%. - 2 -
The following is a tabulati on of one-way fares now in effect: From
To Palo Alto (1)
San Jose Winchester Road
Springer Road (1)
Los Altos (1)
San Antonio Road (1)
California Avenue (Palo Alto) (1)
The following tabulation shows recorded revenue for the last four calendar years:
195'3 Passenger Southern Pacific
(1) Not served at the present time. (2) Service restricted. (3) Included in passenger revenue. (4) In addition to maintaining its own equipment, Palo Alto
Transit provides public repair work with its maintenance personnel and facilitieso (5) Not available. (6) Fare increase July 1954.
- 3足 -
- - - - - -- -
Results of Operation - Year 19S9 Table No. 1 shows results of operation, as estimated by the staff for the calendar year 1959, under two plans.
Plan I reflects the operation from
San Jose to Palo Alto as conducted prior to August 26, 1957.
Plan II reflects
the operation as conducted at the present between San Jose and Loyola Corners.
Hile s to be operated under both plans, shown in Table I, were developed by the Traffic Engineering Section of the Commission's staff. Revenue Estimates of revenue reflect the trends shown by company records for the past four and one-half years.
Based on this experience and the anticipated
continuing growth of the area in Which Palo Alto Transit operates, a 10% annual uptrend in revenue has been estimated under both Plans I and II. No revenue from Southern Pacific Company is included under Plan I due to the fact that records indicate practically no Southern Pacific Company passengers made use of Palo Alto Transit after January 31) 19570
that might be derived from the joint honoring arrangement would be nominal.
Plan II, of course, no service is provided Which is advantageous to Southern Pacific Company passengers. Expenses Estimates for expenses reflect the most current costs incurred or expected to be incurred by the company, or were based on prevailing costs for similar types of operation or equipment where records of the company were
flate Base and Depreciation Expense Estimated rate base and depreciation expense for the year 1959 under both Plans I and II are shown on Table 2.
- 4 足
TABLE 1 PALO ALTO TRANSIT
ESTIMATED RESULTS OF OPERATIONS - YEAR 1958
CASE NO. 5976
Under Plan II
$ 8,760 970 12,870 4,300 320 3,010 5,600 1,310 3,180
Total Expenses Maintenance Tires and Tubes Driver's Wages Fuel and Oil Transportation Insurance Office and Administrative Depreciation Taxes and Licenses Rent Total Net Income
740 9,630 3,360 320 2,180 4,400 1,,310 2,590 1,0!±Q
Plan I - Under operation as conducted from July 8, 1957 to August 24, 1957 (San Jose to Palo Alto). Plan II- Operations as conducted since August 26, 1957 (San Jose to Loyola Corners).
- 5 -
TABLE 2 PALO ALTO TRANSIT
ESTIIVlATED RATEBASE AND DEFREClA TION EXPENSE
FOR YEAR , 921
Year and Nake (2)
: Reserve at Annual :Estimated: " Service Life :D6preciation~6-20-2B • (6) ('7) (5) (4) Date
Book Cost (3)
Rate Base (8)
3evenue Egui2ment 103
'41 Flxib1e $3,027
Service EgQipmsnt Pick- '47 Chev. up Other
Total Depreciation Total Rate Ba.se
California Public Utilities Commission, Transportation Division. Truck and Passenger Transport Engineering Branch. Case No. 5976. Commission...