C. New York Central suburban service to Boston Because the New York Central did not participate directly in the experimental patterns of the demonstration project, it was not possible to calculate precisely the revenue losses and cost savings that would result if the New York Central suburban service was discontinued. However, an overall look at the railroad's Boston commuter operations suggests that avoidable costs would likely be confined largely to above-rail expenses for crews, fuel, and equipment maintenance. Two factors in particular lead to this conclusion: 1. The Boston commuter service does not constitute a significant part of the New York Central's total operations. Hence, discontinuance of this service would have little impact on supervisory positions or facilities such as shops and enginehouses. 2. The line used by the commuter trains also handles through freights and the through passenger trains to Chicago. Therefore, facilities modifications would be limited. D. General findings System semifixed costs, which constitute more than a third of total railroad expenses, do not vary directly with volume and, hence, produce a cost curve which rises rather sharply and then levels off. As a result, incremental costs at higher service levels are limited primarily to variable costs and therefore, do not rise in proportion to volume. For example, a 70-percent increase in service from the preexperimental to experimental levels required only 20 percent in additional costs. The heavy proportion of total costs not directly assignable to individual lines (42 percent) makes local community support of commuter service difficult to establish on an equitable basis. To assist with this problem, allocation methods for all system fixed and semifixed costs have been included in the cost model. However, these methods are necessarily somewhat arbitrary and the percentage assigned to each line can change markedly depending on the makeup of the overall system. IV. FINDINGS BASED UPON PRIVATE BUS COMPANY EXPERIMENTS (CH. 5) Private bus company experiments were conducted by companies with fleets varying from 2 to 320 buses through numerous types of urban and nonurban areas under a wide range of fare and frequency alterations. Testing as many combinations of these factors as possible was the basic objective. A. Suburban service to the core Carefully selected service improvements from suburban communities to the downtown core of a major urban regional center can be self-sustaining. B. Suburban service to small cities In several new and increased service experiments between suburban communities and the city centers of smaller urban areas, the cost of the improved service greatly exceeded the incremental fare-box revenue. C. Feeder service New bus feeder service from densely populated urban areas to rapid transit stations was economically feasible. Feeder services from low-density suburban communities to railroad stations where direct service to the major regional city core was provided, were not economically feasible. D. Local service in small urban areas Carefully selected local service improvements in smaller urban areas can be self-sustaining. E. Direct service to industrial plants Special service during peak hours to industrial plants, which have free and available parking for employees, did not recover operating costs from farebox revenues unless the equipment and operator was otherwise available and not utilized. In rare instances, incremental direct operating costs may be recovered. F. Off-peak fare reductions Off-peak fare reductions by themselves did not generate sufficient new ridership to offset reductions in revenue. G. Costs In private bus company operations, the greater portion of costs vary almost directly in proportion to miles operated, with only a minor portion of total costs being fixed costs. V. FINDINGS BASED UPON MTA EXPERIMENTS (CH. 6) Experiments with the MTA were limited to testing specific improvements in bus transportation along chosen travel corridors. No attempt was made to introduce variables in the well-patronized and profitmaking rapid-transit system. The basic purpose was to gather data for each of several types of routes so that results could be applied to all similar MTA routes regardless of location. A. Downtown distribution Increases in frequency in local service completely within the downtown district of Boston were self-sustaining. B. Increased off-peak suburban bus feeder service Increased off-peak suburban bus feeder service through a low density residential area to a rapid transit terminal with frequency increased from 10 to 5 minutes, produced no appreciable increase in ridership. C. Circumferential service In the major city of a major urban region, as distance from the city center increases, circumferential bus service becomes more attractive to a larger number of people. More precisely, as the distance from downtown increases, traffic congestion decreases, permitting higher bus operating speeds. In addition, as distance from downtown increases, the time required to travel downtown on radial rapid transit and back out to the perimeter on another radial transit line increases while, for a given length of journey, the bus travel time decreases until a point, apparently about 5 miles from downtown Boston, when circumferential bus service becomes faster than rapid transit for many destinations. D. Drive-in theater parking and express bus service The combination of parking at drive-in theaters on the fringes of Boston and direct bus service over express highways to a rapid transit station or to downtown Boston produced no appreciable ridership. E. Parking at rapid transit station Reduction of parking fees at rapid transit stations with substantial parking vacancies resulted in substantial increases in both ridership and net revenues for the transit operator. VI. FINDINGS BASED UPON IN-DEPTH INTERVIEWS (CH. 7) As part of the experimental program, MTC staff personnel and consultants carried out surveys and interviews with patrons on demonstration pro ect services. The purpose of these surveys was to gain an insight into the habits and opinions of riders, their feelings about public transportation, and their reasons for preferring one transportation mode over another. A. 85 percent more passengers were attracted to railroad suburban service from the automobile than from other forms of public transportation. B. Even with inexpensive and plentiful parking in downtown Boston, mass transit riders who do not use any private transportation getting to the rapid transit line, would continue to use mass transit. Transit riders who drive to and park at transit stations would prefer to drive all the way to Boston if parking were inexpensive and readily available. C. A majority of bus passengers in both smaller urban areas and Boston constitute a captive market in that they have some dissatisfaction with the standards of service and have no reasonable alternative form of transportation. In addition to the final report, there are four supplements designed to present detailed analytical data by which the findings of this proiect have been established. The first supplement is "The Boston Region," a preliminary survey and analysis of the Greater Boston region, previously completed by the commission with the assistance of an urban planning assistance grant (Mass. P-24). The remaining supplements are detailed presentations by three consultant firms to the commission for this project. The second supplement has been prepared by McKinsey & Co., Inc., who have performed the analysis of the costs of railroad commuter service. The third supplement has been prepared by Systems Analysis & Research Corp. and contains extensive statistical presentations of results of all the individual experiments and cost analyses of the private bus companies and a discussion of MTA costs. The fourth supplement has been prepared by Joseph Napolitani Associates, Inc., and is a presentation of the indepth market survey of the actual patrons of the demonstration experiment, including an analysis of varying characteristics and expressed preferences for the different passenger groups utilizing railroad, bus, and MTA facilities. Senator LAUSCHE. To what extent has Massachusetts gone in relieving the surface transportation systems of their tax burden? Senator KENNEDY. Well, I would say that the State recently has developed, after this demonstration project, an extensive mass transit program which covers some 65 of the Greater Boston communities. The Massachusetts Bay Transportation Authority does have the support of the State and has been extremely effective. This authority is assuming the principal burden for commuter transportation between the city of Boston and the outlying communities. For instance, it is providing around $3.2 million for passenger service on the Boston & Maine, and we provide about $1.2 million for service by the New Haven. To the extent of forgiveness of accrued taxes, I don't believe that there has been any. Senator LAUSCHE. Any action taken. Well, I think that ought to be provided for the record. We ought to get from the different railroads information showing what tax burdens they have to carry imposed by local governments as well as the State government. Thank you very much, Senator Kennedy, for your testimony. A letter has been directed to me by Senator Saltonstall giving support to this bill, and it will be printed in the record as written. (The letter referred to follows:) Hon. FRANK J. LAUSCHE, U.S. SENATE, COMMITTEE ON APPROPRIATIONS, Chairman, Subcommittee on Surface Transportation, DEAR MR. CHAIRMAN: I support S. 1588, which is pending before your subcommittee, as I believe it offers good potential for helping to resolve the rail passenger problems now plaguing the northeast corridor and the Nation. Since the administration recently asked Congress for money to investigate the establishment of a high-speed rail system between Washington and Boston, many experts and rail passengers riders are seriously envisioning the large number of possibilities in this area. These include electric passenger trains rocketing along at speeds up to 125 miles per hour and more, reducing the present 9-hour WashingtonBoston journey by almost half; smooth travel made possible by new stretches of track laid out along virtually level and curveless beds; and ontime arrivals without slower trains, grade crossings, and other hazards to slow the trip. While these prospects are still in the form of dreams, the groundwork for them will be prepared by S. 1588, which authorizes research and development studies in high-speed ground transportation conducted by the Department of Commerce. This forward-looking program will concentrate on the area between Washington and Boston. However, I am sure the information accumulated will be helpful to other sections of the country interested in obtaining low-cost, efficient passenger travel. The program is expected to last 3 years and to cost $90 million. The Commerce Department hopes to get the program underway by July 1, 1965. Demonstration projects are under consideration by the Department on both the Pennsylvania and New Haven Railroads. The first contract is expected to be negotiated by the Department with the Pennsylvania Railroad for a demonstration project between Washington and New York. This demonstration will involve the acquisition of a fleet of 50 new electrically propelled cars incorporating advanced standards in riding quality and passenger comfort. The Department also is contemplating a similar contract with the New Haven which would use gas-turbine-propelled cars between Providence and Boston. This demonstration could provide useful information with respect to travel behavior and expected demand for passenger transportation in general. I hope that the Department will give particular study to the area northeast of New York where improved passenger service is urgently needed. Most of the rail passenger service in northern New England has been terminated so that such transportation is now virtually nonexistent. In addition, petitons are pending before the Interstate Commerce Commission which call for the abandonment of a substantial portion of rail passenger service in the rest of New England. Transportation problems generally have been especially acute in the entire northeastern part of the Nation due to the population density which is higher than in any other part of the country. We have 20 percent of the Nation's population and nearly 30 percent of its manufacturing operations crowded on only 1.4 percent of the country's land area. Particular emphasis has been placed on the plight of the railroad industry in the northeastern corridor. Many of the railroads have been incurring a serious decline in revenues, primarily in the commuter and passenger sectors. My State of Massachusetts has been endeavoring to resolve its commuter problem and last year enacted legislation which created the Massachusetts Bay Transportation Authority. This agency has negotiated contracts with most of the major mass transit systems in the State and presently is subsidizing the deficit-ridden commuter operations of the Boston & Maine Railroad. The recent agreement signed by the States of New York and Connecticut to subsidize certain parts of the New Haven Railroad service reflects the interests of the Northeastern States in resolving their rail transportation problems. While these efforts have been encouraging, they have been confined to the commuter sector and have not touched on the long-distance passenger run. This passenger service must be improved and developed if we are to alleviate the heavy congestion on our highways and in the air. There is little question that U.S. trains are capable of traveling at fast speeds or providing efficient service comparable to that offered by many European and Japanese trains. In fact, electric locomotives of the Pennsylvania Railroad already have achieved 125 miles an hour in test runs, although only a few miles of existing track are suitable for such speeds. However, before such dreams become a reality, certain basic factors must be considered. The Department will have to ascertain in its study the cost of these projects, the types of fares, schedules, etc., which will attract enough passengers to make these projects self-paying, for we have no guarantee that trains hurtling across the countryside at 125 miles an hour and up will earn more money for their owners than those dawdling along at a relatively slow 70 miles per hour. Innovation and imagination will prove important to the success of the proposed program. I would, therefore, hope that the Department will utilize the services of both public and private agencies as well as organizations and individuals to the greatest extent possible. Moreover, such projects should incorporate the development of integrated bus and train schedules as well as the availability of modern, adequate, and well-located terminals. It also is important that the Department consult with those Federal agencies and State and local bodies administering various transportation programs in order to avoid unnecessary duplication in its studies and demonstrations. I would like to emphasize that we in New England live in a heavily populated, industrialized area and are very dependent on transportation. We presently have little rail passenger service and water transportation is virtually nonexistent. Our air transportation also is somewhat limited, and our highways are crowded with autos and trucks, creating distressing traffic jams. Thus, a high-speed ground transportation study such as that proposed in S. 1588 is especially important to our area. Such a study should be made as soon as possible if it is to be of maximum assistance. I certainly hope the information garnered from these projects will provide sound and equitable solutions to the rail passenger problems prevalent throughout the country. I believe these solutions will revitalize a dying segment of the railroad industry and thereby help to achieve an effective, balanced transportation system both for the northeast corridor and the Nation as a whole. I appreciate your placing my views on our New England transportation problems in the record. Sincerely yours, (Signed) LEVERETT SALTONSTALL, Senator LAUSCHE. The next witness is Mr. H. Vance Greenslit, president, Greyhound Lines, Inc., representing the National Association of Motor Bus Owners. STATEMENT of h. vance GREENSLIT, PRESIDENT, GREYHOUND LINES, INC., CHICAGO, ILL., REPRESENTING THE NATIONAL ASSOCIATION OF MOTOR BUS OWNERS Mr. GREENSLIT. Mr. Chairman and members of the subcommittee, my name is H. Vance Greenslit and I am president of Greyhound Lines, Inc., with headquarters in Chicago. I appear this morning on behalf of the National Association of Motor Bus Owners, commonly called NAMBO, of which I am a director. NAMBO is the national trade association for the intercity bus industry. Its members include, in addition to my own company, carriers affiliated with the National Trailways Bus System and substantial numbers of independent operators both large and small. Together these carriers provide somewhat more than three-fourths of the Nation's total volume of intercity transportation by bus. In addition to passengers, they also transport substantial volumes of package express and mail. Mr. Chairman, we are not opposing S. 1588 as such, but we do feel that all of the evidence that has been introduced to date has been primarily dealing with rail transportation as distinguished from any other mode. And we do feel and we think the bill is broad enough to cover all modes, and we want to urge the committee to not forget that there are other important segments of the passenger transportation industry that perhaps could fit well into this overall study, and the demonstrations in connection with it. Now my statement attempts to point out the importance of intercity motorbus transportation in the passenger transportation field in this country. It is rather substantial. As I say, our interest in S. 1588 is apparent from the fact that the intercity bus industry transports about half a billion passengers annually, or approximately one-fifth more than the railroads and the airlines combined. Interstate Commerce Commission figures for 1963 shows 21.9 billion intercity passenger miles traveled by bus as compared with 18.6 billion by rail, if commutation is included, or 14.5 billion miles of noncommutation rail travel. Preliminary data for 1964 show an even greater proportion of surface travel by bus. These figures indicate the enormous achievement and still greater potential of a mode of passenger transport which often appears largely overlooked or ignored in our national transportation planning. Data for the northeast corridor, which is the area proposed for high-speed rail demonstration projects, are particularly significant in pointing up the capabilities of bus transportation. These services provide frequent schedules, competitive travel time, comfortable equipment, unmatched flexibility in routing, capability for fulfilling great variations in type and volume of travel requirements, and an excellent safety record. At the same time, they require a minimum of highway space and are operated without public subsidy. The Greyhound and Trailways systems operate a total of 43 nonstop express schedules daily from Washington to New York and 44 schedules from New York to Washington. Daily scheduled service also includes approximately 50 runs operated in each direction between these cities making a limited number of passenger stops enroute. In addition, extra buses are provided whenever necessary. |