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$600,000 in passenger revenues to the Authority. New

fares were effective 6/1/73.

Adjusting the first 12 complete months of revenue received

by the Authority for revenue losses due to changes in the Authority fare structure, resulted in the following:

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for 1972 and the Authority for the first 12 months of

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The difference in revenues collected by the private companies

in 1972 and the Authority's 1973 revenues, adjusted for changes in fares, amounts to $1,295,486. The interline fare provided for a discount of 5 cents when transferring from one company bus to another, therefore, based on the minimum fare in effect (40 cents), an interline rider would have to pay at least 35 cents when boarding the second bus. When dividing the 35 cents into the revenue difference of $1,295,486, the interline ridership amounts to 3,701,389. The difference in ridership as shown above amounts to 7,260,000; therefore, it must be assumed that in estimating annual ridership the private companies, aside from double counting interline riders, overstated ridership by 3,559,000 riders.

Ridership counts were taken very infrequently by the private companies, therefore, average fares used by the companies to determine ridership could at anytime become distorted, resulting in an overstatement of ridership.

The Authority, since takeover, has conducted ridership counts in 1974 and 1975. These counts included the counting of all riders boarding and paying a full fare. Transfer riders were not counted. Counts were conducted on six different weekdays, three Saturdays and

Sundays.

It is therefore the opinion of the Authority that ridership reported by the private companies was overstated by at least 5.85% (124,069,000 vs. 116,809,000). This percentage does not consider any growth by the Authority from the date of takeover to the end of the first 12 months of operation. During this period time, however, the Authority did have a ridership growth, which can be substantiated by the increase in revenues collected in FY 75 over FY 74 as shown below:

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Based on the above, ridership for years 1968 - 1972 as shown below has been revised to eliminate the interline ridership and overstatement

of ridership by the private companies.

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Additional Data

November 24, 1975 Request

Ridership Estimation

Questions 15 & 16: This data is crucial in any effort to calculate the price elasticity of demand, a calculation which is critical in long-term

assumptions about fare level ridership assumptions. Is there any way

to reasonably estimate or infer these values?

In reply to questions 15 and 16, a study entitled "Bus Fare Subs i dy Study" is submitted for your review. This report discusses the effects of fare increases and decreases and shows the effects of fare changes in

other cities.

(See Committee files for Bus Fare Subsidy Study, Memorandum Report No. 16, prepared for the Washington Metropolitan Area Transit Authority, By William Smith and Associates)

62-418 O 76 Pt. 2 - 43

November 24, 1975 Request

Question 2:

1974 Net Income Analysis

Please submit a list of the total amount of the established parking spaces available for each year since 1969, broken down by station.

The report on Parking at Metro Stations is

attached.

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