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CALIFORNIA PUBLIC UTILITIES COMMISSION

TRANSPORTATION DIVISION

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

~o

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.

Mc~'uiggin,

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,

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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.

After

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

The basic

and, beginning at 10¢ there were 5¢ intervals with 55¢ the maximum fare.

There were also provisions for round-trip. commute, and school fares.

By Decision

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

159!

559!

Meridian Road

259!

559!

Cupertino

'5J9!

-

Monte Vista

35~

459!

Simla

40i

40ri

Loyola Corners

40i

359!

Springer Road (1)

459!

309!

Los Altos (1)

509!

259!

San Antonio Road (1)

559!

-

California Avenue (Palo Alto) (1)

559!

209!

(2)

(2)

The following tabulation shows recorded revenue for the last four calendar years:

195'3 Passenger Southern Pacific

1954 (6)

1955.

1956

$17,247

$20,g35

$24,301

$2g,921

10,005

11,737

16,40g

13,949

Charter

(3)

149

1,755

1,g30

Shop (4)

(5)

2,112

4,004

g,7g7 117

Advertising Total

$27,252

$34,g33

$46,468

$53,604

(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.

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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

Any revenue

that might be derived from the joint honoring arrangement would be nominal.

Under

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

incomplete~

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.

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TABLE 1 PALO ALTO TRANSIT

ESTIMATED RESULTS OF OPERATIONS - YEAR 1958

CASE NO. 5976

Under ­ Plan II

Under

Plan I

(2)

(1) Miles

116 ooO

89,600

$35,290 1,800

$29,210 1.800

$37,090

$31,010

$ 8,760 970 12,870 4,300 320 3,010 5,600 1,310 3,180

$ 5,820

j

Revenue Passenger

Charter

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

1.0L~0

740 9,630 3,360 320 2,180 4,400 1,,310 2,590 1,0!±Q

$41,440

$31,390

$(4,350)

$

101 2%

111.7%

Operating Ratio

(~) 0

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).

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TABLE 2 PALO ALTO TRANSIT

ESTIIVlATED RATEBASE AND DEFREClA TION EXPENSE

FOR YEAR , 921

Year and Nake (2)

Unit: (1)

·

: Reserve at Annual :Estimated: " Service Life :D6preciation~6-20-2B • (6) ('7) (5) (4) Date

Book Cost (3)

v

·

in

Rate Base (8)

6

3evenue Egui2ment 103

'41 Flxib1e $3,027

1-1-50

4

$3,027

104

'41 Flxib1e

2,000

9-1-50

4

2,000

105

'45 Flxib1e

2,500

11-1-55

5

$500

1,335

$1,165

108

'45 Flxib1e

3,350

3-1-55

5

670

2,233

1,117

7-1-54

3

Service EgQipmsnt Pick- '47 Chev. up Other

$

390

$

390

$

600

E9ui.E!~mt

Garage

$ 700

Various

6

$120

Office

210

Various

10

20

Materia1.end

105

$

100 105

750

Suppli~

Total Depreciation Total Rate Ba.se

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$1,310


Palo Alto Transit Operations and Practices 1958 - Cal PUC  

California Public Utilities Commission, Transportation Division. Truck and Passenger Transport Engineering Branch. Case No. 5976. Commission...

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