Public Interest Briefs

While politicians, engineers, architects, consumers, and environmentalists ponder the future of our transportation system, the Center staff is working on a series of projects aimed at broadening rapid transit possibilities.

On October 9th, Center attorneys appeared before the Public Utilities Commission in San Francisco to protest Southern Pacific Railroad Company’s request for a 111 percent rate increase for fares on SP’s San Francisco-San Jose commuter line. Railroad applicants argue the hike is justified because SP claims to be losing about $4.8 million a year on the line, a total challenged by the protestors.

Critics of the rate increase allege that SP is trying to raise the rates so high that passengers will stop riding the trains, and passenger service on the line could be discontinued in favor of SP's higher profit freight operations. To bolster their argument, rate opponents cite the demise of other Sp commuter lines (notably in Los Angeles) in favor of freight operations.

Further, opponents to the rate application argue the increase is not justified by available data and that a proposed rate increase merits an environmental impact report (EIR). The EIR would determine the possible effects of decreased train travel (and subsequent increased auto travel) on the area’s traffic patterns and air quality.

The protestors intend to ask the PUC not only to deny the hike, but also to order SP to upgrade its services. Under its powers, the PUC may order a complete study of SP’s commuter services. Also, SP could be ordered to invest new capital in the line to update its facilities, build new stations and attract additional passengers with new promotion campaigns. Additionally, the PUC could order SP to tie its rail commuter system into the Bay Area Rapid Transit (BART) service and to seek available federal funds in conjunction with Metropolitan Transit Districts for construction of an urban commuter system.

Despite SP’s annual money loss on its San Francisco-San Jose line, the PUC could base its order for continued operations of the line on the fact it provides a “needed public service” and that SP “earns a fair return” on all of its other operations. This year, SP reportedly earned an all-time high profit on its business, including its freight service, interstate rail operations and real estate holding.s

The Center’s clients in the matter are the Planning and Conservation League and the Peninsula Commuter Transit Service. Public Advocates, Inc. of San Francisco is co-counsel.

Directly related to the Center’s participation in the PUC protest hearings on the SP commuter line is an ongoing study by Center staff members on the demise of Southern California’s Pacific Electric railroad system.

The P.E. owned and operated by SP from 1911 to the mid 1950s, stretched 1,000 miles across Southern California at its zenith and, with its “big red cars,” served areas ranging from the desert to the ocean to the downtown center.

The decline of the P.E. began in the late 1920s, extending through the Depression, and culminating with the phenomenal increase in competition from the automobile. As passenger-volumes on the railroad continued to drop, the SP appealed numerous times to the Railroad Commission for rate increases. But, as each rate hike was approved, passenger service and facilities (e.g. trains, stations) on the P.E. continued to deteriorate. The first rail abandonments on the P.E. system (favored by SP and approved by the Railroad Commission) began in the 1930s, surged late in that decade, and continued until World War II. The war years saw a temporary increase in passengers on the P.E., since the Public was subject to gasoline rationing. But after the war, additional rail lines were abandoned, concurrent with the widespread substitution of bus lines. All P.E. rail passenger service (not previously converted) was sold to a bus agency in 1950–except for rail lines to Long Beach and San Pedro and to Bellflower, Hollywood and Burbank.

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