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Volume 3 Number 1 OAKLAND, MAY 1960

$7,500,000 SETTLEMENT

District and Key System Reach Price

Agreement; Long Court fight Avoided
Threats of long delay in the improve- meda and San Leandro representative,
ment of East Bay public transportation who declared the agreement is both
were eliminated this month when the "reasonable and fair" to the taxpayers of
Transit District reached agreement with the district and Key System stockholders.
Key System Transit Lines on a purchase "This settlement is a far cry from the
price of $7,500,000 for its complete fa- old allegations that this district was cre-
cilities. ated to bail out the Key System," Betten-
The settlement, which clears away a court said.
possible delay of two years in court ac- He cited last year's high earnings of
tion, was recommended to the district Key System, its increased patronage and
board of directors by General Manager revenues, and observed that the district
John R. Worthington. would be "extremely fortunate" to obtain
Worthington, who negotiated the set- the entire Key holdings for the $7,500,000
tlement with Glen L. Stanley, Key System price.
president, said that by taking advantage Initial Key Price
of the agreement, the district could ex- The negotiated figure is approximately
pect to replace Key and be in operation $3,000,000 less than the initial asking
by next October. price of Key representatives when nego-
An early settlement also should help in tiations began four months ago, W orth-
avoiding the possibility of a transit shut- ington told the board.
down May 31 when the labor contract The settlement is based on values of
between Key and the Carmen's Union Key equipment and real estate as deter-
expires, he added. mined by engineers of the State Public
Utilities Commission as well as district
Agreement Studied
engineering consultants, he said.
Both the district board and directors of Key System maintenance terminals,
the privately owned transit company storage yards and rolling stock, including
have yet to approve the agreement. How- 296 gasoline buses not originally sought
ever, the transit board was expected to by the district, are contained in the pack-
decide on whether to approve the nego- age agreement.
tiated price before the end of the month. "By the purchase of all of Key's facili-
Initial reaction of the transit directors ties," Worthington said, "the district will
came from William J. Bettencourt, Ala- (Co~tinued on Page 3)
Transit Annexation Up for June Vote
What the Editors Are Saying About Transit Voting unanimously this month to
place the proposed annexation of West
by the various public agencies involved,
provides for a maximum tax rate of one
Contra Costa to the Transit District on cent per $100 of assessed property valua-
the June 7 ballot were the city councils tion. West Contra Costa residents would
San Francisco Chronicle: be eligible to vote on three of the seven
of Richmond and San Pablo and the tran-
sit district board of directors. members on the transit board of direc-
Better Service Increases Transit Use tors. The terms of two of the three direc-
AMONG arguments gloomily advanced fast, frequent service, is deemed respon- The annexation proposal, requested by
tors expire the end of this year.
.t\. against the practicability of a Bay sible . Richmond, San Pablo and adjacent unin-
Latest of the many community organi-
Area rapid transit system the most fre- In San Francisco, for example, the corporated area, requires a simple ma-
zations to lend full support to the an-
quent contends that the American public Municipal Railway that carried 140,- jority vote for passage.
nexation proposal are the merchants di-
has become wedded to the privacy and 300,000 passengers in 1958 carried 141,- By joining the district, West Contra vision of the Richmond Chamber of Com-
convenience of the automobile and could 609,000 last year. The increase in Oak- Costa would be assured of local transit merce, San Pablo Chamber of Commerce,
never be lured back by mass transporta- land was somewhat higher. service when the District replaces the Richmond Development Foundation,
tion. One Philadelphia line increased pa- operation of Key System Transit Lines Richmond Urban Renewal Committee,
tronage 126 per cent through new equip- later this year. East Richmond Heights Improvement
It now appears that this argument, ment and faster service. A Boston line
plausible as it may seem, runs contrary The annexation agreement, approved Association.
doubled patronage in less than a year.
to fact. The public is already returning In Los Angeles, the so-called "freeway
to mass transit, and the trend that began
with World War II has been reversed,
flyer" serving San Fernando Valley upped Key System Price Accord Under Study by District
patronage in one year from 1,300 to 5,000
according to statistics now available. daily. Directors; Early Date Seen for Start of Operations
Nationally, the increase in transit pa- Here is persuasive testimony that the
(Continued from Page 1) 300 new, streamlined "Transit Liners"
tronage and revenues has varied from public is ready to forsake the expense
moderate to "astounding." Increasing have within its control the ability to during the first 18 months of district
and annoyance of commuting by auto-
congestion of freeways and city streets, promptly remove from the streets anti- operation.
mobile where cheap, fast, convenient
plus mass transit that provides modern, mass transit is available. quated equipment and replace it with "I am firmly convinced," Worthington
coaches of superior design and comfort. said, "that the acquisition of Key System
"Lengthy court proceedings could de- at the price proposed is an exceedingly
Bids on New Buses Delayed to June 15 lay our operation by as much as two years, fair and equitable solution, and will prove
prolonging just that much farther Key's of great and lasting benefit not only to
Bids on a maximum of 300 new ultra- transit board of directors until June 15. use of the older equipment," he said. transit riders but also to the taxpayers of
modern motor coaches, estimated to cost The original bid deadline of May 4 A total of $550,000 has been allowed the district."
$8,000,000, will not be opened by the was extended following a change in plan- by the district for the used gasoline
ning schedule that calls for the com- coaches. But their purchase by the dis- Besides providing funds for the pur-
mencement of operation October 1. trict eliminates the possibility of sever- chase of Key System, Worthington said
BeHencourt: Named t:o I-Iead Bids on the new motor coaches will be ance damages which could "approach the the $16,500,000 bond issue approved last
San Leandro Development: based on manufacturers' offer of coaches price paid for the equipment," Worth- year is adequate to "carry out every detail
at a firm price for 90 days with provision ington said. of the district program as approved by the
William J. Bettencourt, transit district for adjustments for buses delivered after "In other words, we are trading the voters, including $8,000,000 for the pur-
director. representing San Leandro and 90 days. payment of severance damage for the chase of a modern motor coach fleet."
Alameda, and East Bay civic leader, ha.s By delaying the bid opening date, used coaches and thereby getting some- In addition to the modern "Transit
been named general chairman of the San maximum advantage can be taken of the thing of value in return." Liners," the district plans to improve pub-
Leandro Development Committee. fixed price offers without delaying the The official pointed out the older buses lic transit with a network of fast express
The committee is charged by the City start of operations, General Manager are needed to commence immediate op- lines and more than 200 miles of new
Council with the study of ideas for the John R. Worthington reported. I eration, but that they will be used only or improved local routes in the various
revitalization of the San Leandro central The bids will be opened at 4:30 p.m. + until delivery can be obtained on some East Bay cities.
business district. in district headquarters. 3
Exclusive Freeway Lanes for Express Buses
Urged for Los Angeles I,y Traffic Engineer
hours out of a total of 8,760 hours in a
95,500,000 _ ._ - '-.
Rush-hour express lanes for buses have
been advocated by Los Angeles' city traf-
fic engineer, S. S. Taylor, as the best
"A pair of expressway lanes allocated 1
method of making "rapid transit" systems
really rapid at least expense.
exclusively for inter-urban buses in the
morning and afternoon rush hours and
Such ~ study was urged by Taylor be- available for cars and trucks as well as
fore further consideration of a monorail buses in the remaining hours would thus
or other method of bringing thousands of be utilized far more extensively in the
daily commuters in and out of downtown course of a year than would a pair of
Los Angeles. railroad tracks," he said.
These special lanes, on freeways and "The lanes, particularly the curb lanes,
of our streets and highways are not work- 46,600,000
major streets, would be available for au-
tomobile and truck use during non-rush- ing nearly as efficiently as they can," he
hour periods. added.
"A comparable railroad track or mono- Central Terminal
rail lines, on the other hand, would be Also needed to speed up public trans-
used largely for some two or three morn- portation, in Taylor's view, is a centrally 49 50 51 52 53 54 55 5657 58 59 60
ing and evening hours for only some 250 located passenger terminal for these ex- MORE RIDERS-Chart shows first upturn in number of riders using Key System Tran-
weekdays," Taylor said. "Each track press buses, along with pedestrian con- sit Lines since patronage began steady 'decline at end of World War II. Patronage
would be used largely for only about 750 veyor belts from the terminal to major since 1949 dropped from 95,500,000 to a low of 46,600,000 in 1958. Passengers
business areas. carried last year increased 900,000 to a total of 47,500,000.
Taylor predicated several major steps
Improved Public Transit that will be undertaken during the next
Key System Patronage, Revenues Gain
five years to solve Los Angeles' transit
Cited Among Top County dilemma, including: Passenger revenues collected last year 38,500,000 last year. Riders on Key's
Needs in Chamber Study I - A planned, integrated mass rapid by Key System Transit Lines increased transbay lines increased 1 per cent, from
Better public transportation is one of transit system. more than 6 per cent on East Bay lines 7,972,000 to 8,051,000.
the major needs of Alameda County ac- 2-A transportation master plan com- and 4 per cent on transbay service as In his report to stockholders, Key Presi-
cording to a business climate appraisal bined with a pedestrian-vehicle separa- compared to 1958. dent Glen L. Stanley attributed the in-
conducted recently by a special commit- tion in order to get commuters in and out The higher revenues, reported in the creased transbay patronage to faster serv-
tee of the Oakland Chamber of Com- of the downtown area quickly and effi- company's annual report issued this ice, occasioned by the substitution of
merce. ciently. month, provided Key with an operating motor coaches on the former bridge rail
The committee, headed by Thad Mc- 3- An increase in the quantity of mass profit of $1,428,510. lines.
Carty, manufacturer and civic le;lder, transportation, regardless of its quality. Deductions of $116,948 for track re- "When the bridge rebuilding project
submitted questionnaires to 1,100 repre- moval and $753,000 for federal income is completed, and we are able to keep
sentative businessmen. taxes, plus other minor adjustments, left entirely off San Francisco city streets, we
New York Buses Boost: Earnings the company with a net income of anticipated still further savings in sched-
Some 87 per cent of those answering
declared that public transit facilities are NEW YORK - Operations of the Fifth $753,961. ule times," Stanley added.
inadequate and called for immediate im- Avenue Coach system resulted in sub- The number of passengers carried by The high earnings for the year were
provement. Better transit also was cited
as a key issue in the revitalization of Oak-
stantial gains in 1959 as compared with
the year before. Net income last year was 1 Key increased for the first time since the
end of World War II.
attributed in large measure to the im-
portant economies effected by the com-
land's central business district. $512,554 in contrast to a loss in 1958 of
} East Bay patronage increased nearly 2
per cent-from 37,812,000 in 1958 to
plete motorization of the bridge railway
4 5
has now been repaved and the 14 motor Recent improvements include the in-
coach lines of Key System operate in and stallation of fluorescent lights in the main
out of the terminal, thus speeding up waiting room and on the mezzanine Hoor,
service and relieving city street traffic. the opening of various previously closed
New indicator lights have been in- areas for freer movement of pedestrian
stalled at various points in the building, traffic throughout the building, the con-
which clearly show waiting passengers struction of a new ticket office, and the
the lines that are loading and upon which installation of a new stairway flanked on
ramps. both sides by escalators, leading from the
New, brighter lighting and a coat of lobby to the mezzanine level.
paint are planned throughout the interior Bright Illumination
of the terminal, including the passenger In addition to Key System, the terminal
loading deck. At night, the outside of the is being used by Greyhound Lines for
terminal will be brightened with a system commuters traveling to Central Contra
of floodlight illumination. Costa County.
A program· providing for the general Raab said the terminal is so constructed
rearrangement and refurbishing of res- that it can be expanded to accommodate
taurant and other services of the building another 10 loading stations, increasing
also is underway. the present 30 loading points to 40.
TRANSIT IMPROVEMENTS-Fourteen transbay motor coach lines carrying 54,000 rid·
Bridge Terminal Renovation Moves Ahead ers a day now use fast, elevated transit loop between Bay Bridge anchorage in San
Francisco and the Transbay Transit Terminal. Repaving of the former bridge rail area
Remodeled T ransbay T ransit Terminal to Become One of plus installation of modern passenger escalators and convenient loading indicators
Nation's Finest; Escalators Among Many Innovations are part of a $2,500,000 remodeling program of the transit terminal due to be com.
pleted next year.
Another major project soon will begin "With buses transporting an average
in the remodeling of the Bay Bridge ter- of 22 passengers per trip, compared with
minal into one of the nation's top facilities less than two persons per car, the traffic
for accommodating interurban transit congestion on the bridge, particularly
passengers. during the peak periods, would be some-
The entire granite and concrete ex- what relieved."
terior of the huge structure, more than More than 54,000 transit riders pass
20 years old, is about to undergo a com- through the terminal each day. Last year,
plete face scrubbing and painting, ac- the number of transbay passengers car-
cording to Norman Raab, State project ried by Key System Transit Lines totaled
engineer. 8,051,800.
Faster ServIce The terminal facilities will be used by
By the time all of the remodeling work the Alameda-Contra Costa Transit Dis-
is completed next year, Raab said, the trict and its fleet of streamlined "Transit
terminal should be one of the finest in Liners" when the District replaces Key
the country-both from the standpoint of System later this year.
passenger comfort and convenience as Work on the terminal building, to con-
well as rapid movement of motor coaches vert it from train to bus use, began nearly
in and out of the facility. two years ago, with a number of major
The new improvements and faster tran- improvements already finished.
sit service to the East Bay should induce The elevated track area from the San
larger numbers of persons to use public Francisco bridge anchorage, around the
transpOltation, he added. terminal loop and through the building,
At an adjourned regular meeting April
20, 1960, the Board of Directors:
• Approved agreements for annexation Transit Times
of cities of Richmond, San Pablo and ad-
Published monthly by the
jacent unincorporated area to the Transit
District, on motion of Director Coburn.
(Details, Page 3.)
• Called special annexation election to
be held in unincorporated area in con-
solidation with June 7 primary election,
on motion of Director Copeland.
• Authorized three members of the ROBERT K. BARBER • . . President
Board to inspect plants of major bus Director at Large

manufacturers together with transit op- WM. J. BETTENCOURT .•

Ward IV
Vice President

erations in other communities, on motion Alameda, San Leandra and East Oakland
of Director Copeland. ROBERT M. COPELAND Director at Large
WILLIAM H. COBURN, JR. . . • • Ward I
• Authorized directors and staff to at- Berkeley, EI Cerrito and Kensington
tend a regional meeting of the American J. HOWARD ARNOLD .
Ward II

Transit Association in Sacramento May JOHN McDONNELL . • • . . Ward III

9-11, on motion of Director McDonnell. Emeryville, Oakland and Piedmont
PAUL E. DEADRICH . • . • • Ward V
* * * Castro Valley, Hayward and San Lorenzo
At the regular meeting May 4, 1960, the
Board of D irectors: General Manager
• Referred to Committee on Finance ROBERT E. NISBET • . Attorney
JOHN F. LARSON • Treasurer-Controller
for study a recommendation of the Gen- GEORGE M. TAYLOR • Secretary
eral Manager that a proposed agreement ~lD

for purchase of Key System Transit Line~

be approved, on motion of Director Mc- June 7, on motion of Director McDonnell.
Donnell. (Details, Page 1.) • Adjourned meeting to May 25 at 8
• Declared intention as to terms and p.m. in supervisors chambers of Alameda
conditions for annexation of Richmond County Court House for purposes of act-
and San Pablo to Special Transit Service ing on recommended Key System pur-
District No.1 providing voters of the area chase agreement, on motion of Director
approve annexation to theovetall district Copeland.

Transit Times
Alameda-Contra Costa Tran,it District
700 plaza Building
Oakland 12, California PAID
Oakland, Calif.
Permit Na. 2105
5687 MILES AVE. l,


Form 3547 Requested