Opinion

Felix Salmon

Bikeshare pricing charts of the day

Felix Salmon
May 15, 2012 16:47 EDT

When I wrote about New York’s expensive bikeshare scheme last week, I got a lot of pushback from people saying that I was missing the point. These bikes are designed for short trips around town, at a marginal price of zero: the large sums you pay if you keep them checked out for an hour or more are a deliberate attempt to discourage that behavior.

OK, fair enough — but in that case, if you’re charging high variable costs, the converse should be that you should charge low fixed costs. Most bike schemes work in much the same way: you pay a certain amount up front for membership, be it for a day or a week or a month or a year, and then the variable per-hour costs on top of that. If New York’s bikeshare scheme is indeed quite cheap, then one would expect the variable costs to be low.

But they’re not.

Ben Walsh put together some numbers for me, for various cities around the world with bikeshare schemes. Not all cities work in exactly the same way, and some have no direct comparison points with New York at all: in Chicago, for instance, the membership options are 1 month, 2 months, and 3 months. In any case, here’s what we managed to find, for New York’s three options:

1day.png

1wk.png

1yr.png

It’s pretty clear that New York is at the top end of the range, here: only Frankfurt rivals it in price. To have access to New York’s bikes for one day, you need to spend $9.95 — that’s more than six times the £1 one-day membership in London, and it’s significantly more, too, than you’d pay in Washington or Toronto or Paris.

The first reaction of New Yorkers, when they hear this, is surprisingly positive: they think of it as a tax on tourists, and everybody likes taxes on tourists. Let the tourists pay through the nose for their one-day memberships, and we locals will save loads of money, through an implicit cross-subsidy, on our one-year memberships.

But that doesn’t seem to be the case, either. Look at the cost of one-year memberships, and New York is still top of the league table, at $95. That’s the same as Toronto, and more than seven times what Romans pay. (Indeed, the one-time membership fee in Rome, at €10, is barely more than a daily membership in New York.)

New Yorkers, then, are being asked to spend much more money per year than bikeshare users in just about any other major city — even if they never take out a bike for more than 45 minutes. And what worries me is the deterrent effect that these prices will have.

The first trip you take, on one of the new New York bikes, will cost you at least $10, and possibly as much as $95. Cab rides don’t cost much more than that, and you can fit four people in a cab. Experienced urban cyclists like me will definitely cough up the $95, even if that hurts a little, because we know how convenient it can be to be able to take one-way bike trips in Manhattan, especially if it’s going to rain later, or if you don’t like biking back in the dark, or if you got in to work on the subway but then just need to go a mile or so to your lunch meeting.

But the great promise of the bikeshare scheme is that it will get people onto bikes who have never biked before — people who are generally very nervous about biking at all on busy urban streets. Those people are going to want to try before they buy, and the $10 cost of a trial one-day membership is high enough to give them a good excuse not to bother.

The East River Ferry is a great example of the benefits of low entry costs and the opportunity the city’s bikeshare program is missing. When the ferry was reintroduced last June, it was free for the first 12 days. Passengers flocked and even once full fares kicked in, it remained far more popular than planners projected.

That said, from a user’s perspective there are two costs worth considering before you opt into one of these schemes, and the dollar cost is only one of them. The other one is convenience — and on that front, New York’s 10,000 bikes look as though they’re going to be everywhere you might want one, so long as you stay south of 60th Street; there are even a few docking stations in Queens! In that respect, getting on a bike is (fingers crossed) going to be much easier in New York than in most other cities — and I can definitely see how that convenience might be worth paying for.

I don’t think the pricing for these bikes is going to cause the plan to fail: New Yorkers are used to paying lots of money for convenience. I just wish there were some cheaper way of getting New Yorkers to try these things out. Because $95 is enough money — roughly the same as an unlimited monthly transit pass — that a lot of people will simply not bother.

COMMENT

As a DC user of Bikeshare, I gotta say the pricing is fine. I pay $75 for a year and that is all–all my trips are under the time limit. While I own no bikes, my cyclist roommate owns three but still uses Bikeshare often because you can go one way, you can easily combine with other forms of public transportation, and you don’t have to worry about storing your bike and worrying about theft.

I’ll also add that, while I wouldn’t say no to more public subsidy, that $75 gets a lot. A wide network of stations and bikes. Maintenance on those bikes so they remain in good shape. Crews to re-balance bikes from full stations to empty stations. My $75 doesn’t come close to covering what I get, which is why the public subsidy is important as is the cost to tourists.

Posted by LittleMac | Report as abusive

New York’s expensive bikeshare

Felix Salmon
May 7, 2012 15:04 EDT

New York’s new bike-share program, sponsored by Citibank to the tune of $41 million (plus $6.5 million from MasterCard), will go live at the end of July, and the prices are public already. Transportation commissioner Janette Sadik-Khan called them “the best deal in town short of the Staten Island Ferry.” Which, not really.

The Staten Island Ferry is free, of course, but that aside, New York transportation has a very simple pricing scheme. To a first approximation, all rides, whether on the subway or the bus or some combination of the two, are $2.50, no matter how long they are.

And the bikes cost a lot more than that.

As with all bike schemes, there’s a base price to enter the scheme — $10 per day, $25 per week, or $95 per year. Then the first half-hour of bike riding is free (45 minutes if you’re an annual member); after that, you pay on a per-ride basis as well, starting at $4 when you bike for more than half an hour.

The $10-per-day cost is already a significant expense: that’s four subway rides right there. And then the hourly charges really start to rack up if you keep the bike for some length of time. If you take the bike around Governor’s Island, for instance, and stay there for a couple of hours, you’re likely going to end up in the 3-hour time bracket, which is $49. On top of your $10 daily rental. As Garth Johnston puts it, for any real let’s-bike-around-the-city plans, you’re definitely going to be better off just buying your own bike.

What’s more, New York is significantly more expensive than similar schemes in rival cities like Washington and London. Here’s a chart of the cost of one trip, based on a 24-hour membership:

2.jpg

London’s 24-hour membership is just £1, or $1.61, and the cost for the second half-hour is only another £1. Which means that anybody can get on a bike, ride it for an hour, and pay just £2 — less than the cost of a journey on the Tube. In New York, by contrast, getting on the bike costs $10, and then the second half-hour costs another $4, for a total of $14. That’s more than four times the cost of the London bike. By the time you’re on the bike for 90 minutes, the New York cost goes up to $23; you’d need to be biking twice as long to pay that much in London.

Here’s the full chart, going out to the maximum charge for 24 hours:

24.jpg

As you can see, none of these schemes are exactly friendly towards someone just taking a bike and using it to bike around for, say, six hours. But if you do that in London, you’ll “only” pay $58: in Washington, it’s $85, and in New York, it’s $131.

I can’t think of any other area where London is so much cheaper than New York: it’s just weird to me that New York would set the prices for this scheme so high. Maybe the problem is that they haven’t found a lot of places to put the docking stations, so they’re having to set the price high to keep the demand in check. All we’ve been told so far is that the plans for the docking stations will be available “soon”; it’ll be fascinating to see how many of them there are in the first instance.

But one thing’s sure: the price difference between renting a bike and hailing a cab is very small in New York, while it’s very large in London. Which probably makes cabbies very happy, while doing very little to reduce congestion.

COMMENT

Salmon,

You’ve been punked by DOT!!

Hope you and your little friends enjoy being overcharged to ride around on an overweight bike advertising for Citibank.

LMAO

Posted by SeanSweeney | Report as abusive

The case of the $400 million bike lane

Felix Salmon
Mar 26, 2012 03:24 EDT

Everybody’s favorite transportation geek, Charles Komanoff, has a fascinating new paper out on the economics of New York’s new Tappan Zee Bridge. The old bridge is decrepit, and needs to be replaced — everybody agrees on that. And the replacement is now in the works, at a cost of $5.2 billion. But does it need to cost that much? Komanoff makes a strong case that it doesn’t.

I won’t try to summarize Komanoff’s paper here. Instead, I’ll just point to one fact which is buried there. The new bridge comes with a combined bike/pedestrian lane, 12 feet wide. And the cost of building that lane — the amount that the cost of the bridge would decrease if you simply built it without that lane — is an astonishing $400 million.

To put that number in perspective, Komanoff tells me it would cost roughly $40 million, in the same 2015 dollars, to build two bike/pedestrian lanes on the Verrazano Narrows bridge — lanes which would get vastly more traffic than the one lane on the new Tappan Zee.

As for the cost of the first three years of New York City’s ambitious bike program under transportation commissioner Janette Sadik-Khan, that was just $8.8 million, 80% of which was paid by the federal government.

In other words, for the $400 million which governor Andrew Cuomo is planning to spend on a white-elephant bike lane almost nobody is going to use, you could utterly transform the bicycling infrastructure for millions of New Yorkers in all five boroughs.

Oh, and I almost forgot — it looks as if the old Tappan Zee bridge is going to be converted into a bike/pedestrian walkway anyway, making such a facility on the new bridge even more superfluous.

But this is how big projects always work: it’s weirdly easier to raise billions for something huge than it is to add millions to an annual budget somewhere. “Gridlock” Sam Schwartz, for instance, in his clever new congestion-pricing plan, is proposing three new massive bike/pedestrian bridges: one from Jersey City and Hoboken, in New Jersey, would span the Hudson River and land just north of Chelsea Piers. A second would go from Long Island City and Hunter’s Point, in Queens, and would cross the East River to midtown Manhattan. And the third, and most ambitious, would start in Red Hook, in Brooklyn, head over to Governor’s Island, and then continue on to the Financial District.

These are utterly wonderful ideas. If beautiful new pedestrian bridges can be built by Santiago Calatrava in Venice or by Norman Foster in London, there’s no reason New York can’t follow suit. Still, it’s a bit depressing that we don’t seem to have the mechanisms to take the billions available for vanity projects, and use some small fraction of that money for things which would make a huge difference to the daily lives of millions of New Yorkers.

This phenomenon isn’t confined to government, of course: anybody working in a big corporation has seen some huge acquisition made, using money which was never available for smaller projects from existing teams which had much clearer benefits. And there are hundreds of museums around the world which never have money for important things like conservation, but which somehow manage to find enormous sums for glossy new starchitectural projects. Basically, people want to be able to see where their money is going, in the form of something large and grand and headline-grabbing. Even if there are much more sensible uses for it elsewhere.

COMMENT

What the lane looks like is only half the story?

Whether car drivers drive like steroid-charged idiots,
and whether bikers cycle like methamphetamine-charged teenagers and terrorize pedestrians — those are common realities why responsible cyclists avoid certain streets in cities.

I know a bike lane which abruptly ends half a block before a busy intersection, and where the pedestrian sidewalks narrow to half its size. The result: cyclists go up the sidewalk and literally terrorize pedestrians,
and the police turn a blind eye. As a result, some residents of that block have to resort to driving, instead of walking, even for just a few short blocks, to avoid getting run over by bikes! Now tell me, does that save gasoline, or the environment. Worse, how many more anxiety stricken residents have to talk to their doctors for medications or lack of exercise because they don’t feel safe enough to walk to the park!

Posted by Janeallen | Report as abusive

How to rent a bike without a credit card, DC edition

Felix Salmon
Jan 6, 2012 14:09 EST

Good news over at the Capital Bikeshare website, which has now been updated to make it perfectly clear that you can, after all, use your debit card to pay for a Bikeshare membership. The FAQ,which used to say that memberships require a credit card, now says “credit or debit card”; the signup page, which used to ask for your credit card details, now says “credit/debit card” at the top of that section. All of which means that although it was always technically possible to sign up for a membership with a debit card, now many more people are likely to actually do so.

On top of that, Bikeshare manager Josh Moskowitz tells me that some kind of installment plan should be in place “in the early half” of this year. It’s unclear whether that option will be open only to Bank on DC members, or whether it will be open to everyone.*

I still think that, in terms of getting the unbanked on bikes, the best approaches are always going to be ones which just get the unbanked on bikes, rather than ones which try to get the unbanked to open bank accounts which in turn will allow them to get onto bikes. But this is a move in the right direction — and a move which is probably going to cost some small amount of money for Bikeshare.

Remember that there’s a $1,000 fee charged to your card if your bike is lost or stolen. Now, what’s more likely: that your credit card has $1,000 of spare capacity on it before it’s maxed out, or that your checking account contains $1,000 in cash? I’d say the former, by a substantial margin. So the chances of Bikeshare having to chase down an individual when the $1,000 charge doesn’t go through are surely higher if that person signed up with a debit card than they are if they used a credit card.

So well done to Bikeshare for fixing its site and taking the risk that it might have to do more work chasing down the money for lost and stolen bikes. My gut feeling is that the marginal difference here is small. But government organizations like Capital Bikeshare are always overcautious and risk-averse, and I genuinely thought when I wrote my initial post on this that Bikeshare wouldn’t allow debit cards to be used for memberships at all. Now, let’s keep our fingers crossed in the hope that they come up with some way of being able to serve unbanked people without debit cards at all.

*Update: Moskowitz confirms that the installment plan will be available to everyone.

COMMENT

Please tell me there’s an option to purchase insurance so I don’t get hit $1,000.

Or better yet, incorporate the insurance with the membership.

Posted by SomethingGre | Report as abusive

Getting the unbanked on bikes

Felix Salmon
Dec 27, 2011 11:41 EST

American Banker’s Andy Peters has a jolly story about how West Virginia’s United Bank is teaming up with Washington’s bike-sharing program, to help the formerly unbanked have access to this handy form of transportation.

To check out a bike from one of Capital Bikeshare’s 110 solar-powered stations, users must first swipe a debit card or credit card.

Such a system locks out plenty of low-income commuters who use Washington’s Metro trains and buses but lack a checking account or a credit card…

Bank on DC is offering a $25 discount on yearly Capital Bikeshare memberships to those who open an account at either United Bank, a unit of United Bankshares, or District Government Employees Federal Credit Union. A Capital Bikeshare annual membership normally runs $75.

“These are not necessarily high-balance accounts, but a lot of the customers are using their accounts very prudently,” says Craige L. Smith, the chief operating officer of United Bank’s Virginia division. “We think there is real value in establishing those relationships.”

The fact is, however, that there’s a lot not to like here, most of which is elided by Peters. This scheme is not going to get the unbanked onto Capital Bikeshare in any remotely significant numbers, for a lot of reasons.

Firstly, the $25 discount comes only on the most expensive form of membership — the annual membership which the poor and unbanked are least likely to be able to afford. If you want to help bring down the cost of accessing these bikes, then charging $50 just to get started is not a great way of doing that. In many cases, that’s $50 desperately needed for food or rent: buying bike access in eleven months’ time simply isn’t on the list of priorities, no matter how good a deal it might be.

Secondly, the unbanked tend to be unbanked for many, many reasons. Some are good, some are bad. But it’s ridiculous to imagine that getting a $25 discount on a bikeshare membership is going to be enough to persuade anybody to open a bank account. Millions of dollars have been spent on all manner of imaginative approaches towards trying to get the millions of Americans without bank accounts to open one. Few if any of those approaches actually work. This one won’t work either.

Thirdly — and this is key — opening a bank account isn’t enough to get you that $25 discount. A bank account will come with a debit card, and a debit card will get you a bike for either 24 hours or three days. But as the bikeshare website clearly says, “all Capital Bikeshare memberships require a credit card”. If you want to get that $25 discount, you’re going to need not only a bank account but also a credit card.*

At the same time, even if you don’t take advantage of the $25 discount, it’s still a bad idea for the newly-banked to rent a bike even for just one day, using their United Bank debit card. Capital Bikeshare spells this out quite explicitly:

When you join Capital Bikeshare with a 24-hour or 3-day membership, a preauthorization hold of $101 per bike is placed on your card account. This is a not a charge against your account. It serves as a security deposit and will be returned to you when the hold expires. Holds may last up to 10 days, depending on the credit card company. We recommend using a credit card and not a debit or check card when becoming a 24-hour or 3-day member. Using a debit card may result in overdrafts if you don’t have sufficient funds in your account to cover the hold.

It’s easy to imagine someone opening their first-ever bank account with United Bank, using their debit card to pay $7 for one day’s biking, and then immediately getting hit by some whopping overdraft fee because of that $101 hold.

Then again, the possible charges if you rent a bike with your credit card are substantially higher. This is hidden away in the small print when you sign up for a membership:

If Member maintains possession of the Capital Bikeshare bicycle beyond the Permitted Period of Continuous Use, then the Capital Bikeshare bicycle is deemed lost or stolen, Member’s credit card will be charged a fee of $1,000, and a police report may be filed with local authorities.

(The Permitted Period of Continuous Use, incidentally, is 24 hours.)

In order to get that $25 discount, then, an unbanked person in Washington has to first open a bank account; secondly get a credit card; and thirdly sign a contract under which they agree to pay $1,000 should their bike be lost or stolen or taken out for more than 24 hours. It’s not even clear that United Bank is promising to give a credit card to anybody who opens up a bank account under this scheme, but assume that they do: then they’re immediately putting the newly-banked individual into $50 of debt, with no real idea as to whether or when that debt will get paid off. Add in late fees and the like, and the $25 savings starts looking even less desirable.

Jim Surowiecki has a column on layaway this week; United Bank should take a leaf out of that book and offer their customers the opportunity to pay the $50 membership fee at a rate of say $4.25 per month, plus whatever usage fees are run up on the Bikeshare program.

Who, under that kind of continuous-layaway scheme, would take on the responsibility of paying $1,000 if a bike were to be lost or stolen? Bank on DC is the obvious organization to do such a thing. They should post a $10,000 bond to cover the first ten times this happens, see whether the scheme is any kind of success, and then take it from there. If there are lots of stolen bikes and the $10,000 disappears quickly, then the scheme would be an interesting failure — but organizations trying new ideas should be open to failure. And there’s a good chance that the $10,000 would not be touched at all.

What’s really needed, in other words, to get the unbanked onto bikeshare schemes is not bank accounts at all — it’s a way of finding institutions which will accept the responsibility of paying $1,000 should the bike be lost or stolen. If you do that, then memberships can be given out to individuals without bank accounts at all, and they can use any old prepaid card to pay the modest usage fees they run up, without worrying about the $101 hold.

Which institutions would do such a thing? Well, there are a lot of non-profit organizations which work with the poor and try to get them mobility — they’re a good place to start. But there’s another set of institutions which might be interested as well: churches, of which there are very many in the DC area. Churches know their flocks, after all, and might well be interested in giving out memberships to those who need them, and taking on a contingent liability in the process. All you’d need is a single credit card belonging to the church, which could then deal in its own way with any congregant who ran up that $1,000 charge.

The Capital Bikeshare scheme has been built in a very cautious manner, carefully constructed so that everybody with a membership needs to have a credit card associated with that membership. That in turn allows Capital Bikeshare to be sure that it can collect $1,000 every time a member loses their bike for whatever reason. This system was set up ex ante, with no indication of how often such a fine would turn out to be necessary — and it has essentially excluded the unbanked from Bikeshare.

I would much have preferred to see an optimistic scheme at first, with the restrictions coming in later if the cost of lost or stolen bikes turned out to be substantial. But even now it’s possible to imagine ways around these problems, if some well-intentioned group has faith in its members and in the Bikeshare scheme. The Bank on DC promotion, however, is not such a way.

*Update: It seems that the website is wrong about this: you can use a debit card to pay for a 30-day or 1-year membership, and when you do so no hold is put on your account. On top of that, Bank on DC also has a scheme to help defray the $1,000 cost if your bike is lost or stolen. More details as I get them!

Update 2: Details, from Bikeshare:

  • You can pay for 30-day and annual membership with a debit card.
  • There is no hold on an individual’s account if they purchase a 30-day or annual membership with a debit card. The reason for this is that Bikeshare has contact information (name, address, etc.) when an individual signs up online for one of these types of memberships — but not for 24-hour or 3-day members.
  • If the bike is stolen and no police report is filed, Bikeshare would charge the debit card $1,000. If the individual who is responsible for the bike does not have $1,000 in their account, Bikeshare would charge the amount available in the account and work with the financial institution to ensure no subsequent charges can be made to the account until there is a full reimbursement for the cost of the bike.
  • Approximately 85 percent of annual members do not incur any usage fees when riding. The average usage fee the other 15 percent incur is between $6-$7 per individual per month.
COMMENT

Bikeing and banking are two things which should both be expanded due to their obvious social merit.

Biking reduces congestion and pollution, and boosts health.

Banking increases access to capital and is a much better system of facalitating commerce than cash, coins, pawn shops, payday lenders, or loan sharks.

The issue I have with the unbanked or underbanked is that without direct goverment intervention there is no business model underwhich they can be profitably served by a bank.

All current evidence asside, banking is an inherantly profitable business. My community savings bank would not be much worse off if we were forced to open free debit card accounts or e-statement savings accounts for anyone who applied. Like all banks we depend on the implicit subsidy of FDIC insurance. Opening a few thousand unprofitable accounts seems like a fair tradeoff for that ongoing privelage.

Posted by y2kurtus | Report as abusive

Chart of the day, NYC biking edition

Felix Salmon
Dec 10, 2011 13:44 EST

bikes.jpg

This is a chart of the number of bike commuters in New York. It’s known as the NYC Commuter Cycling Indicator, and it comes from surveys taken ten times per year at predetermined points around the city. It doesn’t give a good count of the number of bike commuters in New York, but it gives an excellent idea of the trends: bike commuting has essentially quadrupled in the past decade, and has doubled over the past four years. Which just happen to be the four years during which Janette Sadik-Khan has run the Department of Transportation.

This is important because it shows just how effective strong leadership can be, when combined with a dedication to creating good infrastructure. And if you delve a bit into the numbers behind the indicator, this comes out even more clearly. For instance: in 2007, the Queensboro Bridge saw an average of 1,292 cyclists per day, about 80% of the 1,626 cyclists per day on the Brooklyn Bridge. By 2011, the Queensboro number had shot up to 2,904 bikers per day — 25% more than the 2,322 cyclists crossing the Brooklyn Bridge. That’s entirely a function of the fact that the Brooklyn Bridge is unpleasant for cyclists, despite the fact that by dint of its location it should be one of the busiest bike corridors in the city.

The lesson of this chart, then, is that if you build bike lanes, cyclists will appear to fill them. That’s fantastic news, since cities with lots of cyclists are always the most pleasant cities to live and work in — even for people who don’t bike themselves. New York City has a long way to go before it can be considered genuinely bike-friendly. But it’s moving in the right direction, and the bike-sharing scheme to be launched next year will provide a massive boost. Let’s hope that now Sadik-Khan has provided the necessary momentum, her successors embrace and extend what she has started.

COMMENT

I certainly remember the hundreds of New Yorkers leaving NYC on foot 9/11/01 after the two planes crashed into the World Trade Center towers. Those New Yorkers could have escaped the dust and smoke faster on bicycles and negotiated traffic jams by bike better than by car.

Posted by mariaconzemius | Report as abusive

Arnold Schwarzenegger, bike salmon

Felix Salmon
Oct 2, 2011 09:16 EDT

The single thing that makes cyclists so hated by non-cyclists is disrespect for others: the way in which a highly-visible minority of cyclists consider themselves above the law, and flout not only traffic rules but also the basic tenets of civility.

Cyclists, that is, like Arnold Schwarzenegger:

After reading the newspapers, this is what the former governor of California often does: rides his bike for cardio, then hits the weight room.

He hauls a bike off the back of the car, hops on, and takes off down an already busy Ocean Avenue. He wears no bike helmet, runs red lights, and rips past do not enter signs without seeming to notice them and up one-way streets the wrong way. When he wants to cross three lanes of fast traffic he doesn’t so much as glance over his shoulder but just sticks out his hand and follows it, assuming that whatever is behind him will stop…

We’re now off the beach and on the surface roads, and the traffic is already heavy. He veers left, across four lanes…

Having sped past a do not enter sign, we are now flying through intersections without pausing. I can’t help but notice that, if we weren’t breaking the law by going the wrong way down a one-way street, we’d be breaking the law by running stop signs.

This tells us nothing about the state of California’s finances, but it’s illuminating all the same; in many ways it’s the two-wheeled equivalent of Jon Corzine’s 91-mph seatbelt-free car crash.

Next time your blood boils at the sight of a suicidal bike salmon endangering his own life and that of everybody else on the road, then, don’t assume that it’s some devil-may-care hipster. Instead, there’s probably a good chance that it’s some overachieving alpha male with a much larger ego than could ever be healthy.

In other words, it’s exactly the same kind of person who will merrily cut you up on the highway while driving his brand-new Maserati. It’s not cyclists who salmon aggressively. It’s assholes.

COMMENT

Here’s motorists attending to traffic laws and upholding the basic tenets of civility:

http://youtu.be/eF45QnZWo48

and:

http://youtu.be/qNyYnlyxnlY

Posted by DavidHuntsman | Report as abusive

Bike war datapoint of the day, rack-placement edition

Felix Salmon
Sep 14, 2011 14:10 EDT

Matt Chaban manages to get a quote today which perfectly encapsulates the self-defeating nature of anti-bike activists. He lays out the basics of New York’s bike-share scheme — 600 stations, 10,000 bikes — and then quotes one friend and one foe. The friend is Gene Russianoff of the Straphangers Campaign. Here’s the foe:

“DOT and Janette Sadik-Khan’s problem is they say, ‘Here’s what we’re doing, take it or leave it,’” said Sean Sweeney of the Soho Alliance, a frequent DOT critic. “Instead, it should be, ‘Here’s 20 racks, where would you like them?’” He expressed concern about whether the stations would be located on too-narrow sidewalks or in valuable parking spaces or other inopportune locations.

Still, he said it would be nice if done right. “I walk a lot, I’ll walk from 59th Street downtown,” Mr. Sweeney said. “Let’s say I don’t want to walk or take the subway, then a bike sounds nice. But it’s still a matter of giving over public space to a private company, so we have to be careful.” He added that no stations should be place in Soho.

I love the way that Sweeney starts by implying that he would be happy to place 20 racks around Soho, underscores that by saying that the scheme “sounds nice” — and then, at the end, drops the bomb that he’s already decided that the optimal number of racks in Soho is precisely zero. He can’t even pretend to be open to the idea for more than a couple of sentences.

Soho, for those of you who don’t know it, is a perennial traffic nightmare, for two reasons. One reason is Broome Street, a key approach to the Holland Tunnel — and it’s hard to do much about that. But the other reason is the curse of on-street parking. Soho is Exhibit A for anybody trying to demonstrate the high cost of free or underpriced on-street parking: there’s way too much space devoted to cars, both in terms of parking and in terms of open pavement, and a huge proportion of the cars driving in Soho are going around in circles looking for a parking spot.

The drivers of those cars are unhappy, and they make life miserable for pedestrians and cyclists, too. It’s a horrible state of affairs, especially given the numbers: according to a 2006 study, 54% of people on Prince Street came to the area by subway or bus, and an additional 35% by walking or bicycle. Only 9% drove to the area in a private car, while an additional 9% arrived by taxi or livery. (The numbers add up to a bit more than 100% because some people use two or more modes of transport.)

If Soho can’t have bike racks, there’s really no point in having a bike-sharing scheme at all. Soho is precisely where people want to go: it’s full of shops and restaurants and other destinations. But somehow the Soho Alliance has already decided that a bike rack is never as important as a “valuable parking space”.

Sweeney, then, is the embodiment of precisely the reason why the DOT can’t outsource rack placement decisions to community organizations: those organizations tend to be dominated by people who are going to be aggressively unhelpful on that front. There’s not a parking space in all of Soho which is so valuable that its street space wouldn’t be better off as a bike rack. If Sweeney can’t recognize that, he’s never going to be a useful person to consult on placement decisions.

COMMENT

“In addition, the survey finds that 45% of respondents would visit Soho *less* often if there were more vendors taking up sidewalk space, which is *exactly* what this program contemplates. Only 10% would visit *more* often.”

Who is playing fast and loose with the facts here?

The reason people said they’d visit less often is because closing the streets of Soho to automobiles was not presented as an option in that survey.

If you keep car access the same — both for on-street parking and throughput — but allow vendors to take up more sidewalk space, of course pedestrians will feel squeezed and not want to spend time in the neighborhood. That’s explains the survey results.

But if you reduce car access in SoHo and eliminate it on some streets altogether, you could get the vendors onto the roadway and give back tons of sidewalk space to the overwhelming majority of people who visit the neighborhood on foot.

Ask pedestrians if they’d like to see the sidewalks cleared and the vendors moved into one of the lanes currently available for the storage of private automobiles, and you’d likely see a huge amount of support.

NYPedSafety is an anti-bike organization masquerading as a pro-pedestrian advocacy group. They are notoriously silent on the subject of the pernicious effects of automobiles.

Posted by Walking | Report as abusive

Why a lighter bike doesn’t make you faster

Felix Salmon
Aug 22, 2011 11:58 EDT

I’m very late to Jeremy Groves‘s wonderful little paper where, using himself as a subject, he timed his bike commute on a heavy steel bike and on a much lighter carbon bike. After riding 1,520 miles back and forth from Sheffield to Chesterfield Royal Hospital and carefully timing every journey, he came to an inescapable conclusion: the lighter bike wasn’t any faster than the heavier one. And this on a long journey where small differences would, you would think, add up: the round-trip commute was 27 miles long, with 2,766 feet of total ascent. That’s the kind of uphills where saving 9lbs of bike makes a real difference.

So, what’s going on here? Groves has his own theories, mainly surrounding the idea that big factors, like the weight of the rider and the amount of drag, completely obliterate smaller factors like the weight of the bike and the resistance of the tires. But I think there might be something else going on, too. Here’s Joshua Foer on what he calls the “OK plateau”:

In the 1960s, the psychologists Paul Fitts and Michael Posner described the three stages of acquiring a new skill. During the first phase, known as the cognitive phase, we intellectualize the task and discover new strategies to accomplish it more proficiently. During the second, the associative phase, we concentrate less, making fewer major errors, and become more efficient. Finally we reach what Fitts and Posner called the autonomous phase, when we’re as good as we need to be at the task and we basically run on autopilot. Most of the time that’s a good thing. The less we have to focus on the repetitive tasks of everyday life, the more we can concentrate on the stuff that really matters. You can actually see this phase shift take place in f.M.R.I.’s of subjects as they learn new tasks: the parts of the brain involved in conscious reasoning become less active, and other parts of the brain take over. You could call it the O.K. plateau.

The skill of riding a bike fits perfectly into this scheme. It’s not easy to learn at first, but over time we get better at it, until we’re so good at it that we basically stop thinking about it, and stop trying to get any better than we are. I’m sure that a doctor like Groves has much better things to think about on his commute than his bicycling technique.

When I switched from a heavier bike to a lighter one, I felt as though I was going faster, but I have no idea whether that’s empirically true. Certainly the lighter bike is much more maneuverable, which is very handy on New York’s potholed streets. And it’s easier to get up hills, even if I’m not getting up them any faster.

As Kent Peterson notes, a lighter bike can make your journey more comfortable. That doesn’t mean it will make your journey more comfortable: ultra-light racing bikes in fact tend to be rather uncomfortable things. But when you’re riding up a hill at your normal speed, you’re generally happier when you weigh less. That’s why people buy lighter bikes: at the margin, they’re likely to make any given bike ride a little more pleasant. Which is not the same thing as saying it’ll be faster. Leave the racing to the racers: the rest of us are just happy being happy.

(Via Vanderbilt)

COMMENT

This is pretty cool, as I’ve always suspected that the weight of a bike doesn’t have that much impact for your average cyclist. The delta between a heavy and light bicycle is pretty small compared to the weight of the rider and his/her pack. Indeed, if I decide to bring home one hard cover book from the office, I would pretty much erase the advantage of my carbon-fiber forks.

As someone who often times my bike commutes I would concur that external factors (wind, lights, traffic) can make a big difference, even taking into account my speedometer doesn’t time when I am stopped. I would guess, given the ‘sample size’ (# miles ridden, # commutes)that these factors wash out over the sample period. The graph shown seems to have a lot of scatter.

I think the big factor not discussed is that carbon-fiber delivers much more stiffness per pound than steel. A stiffer frame delivers more power to the wheels and less to flexing the frame. Unless you are really pushing it, the stiffness pay-off (or any weight pay-off) is not going to show up for your typical commuter.

Posted by JimInMissoula | Report as abusive

Bike slowly

Felix Salmon
Jul 28, 2011 14:57 EDT

One of the things I like about urban biking in the summer is that people go slower: no one wants to arrive at their destination a sweaty and disheveled mess. When bikes go slower, that’s safer for everybody, especially pedestrians. And it’s much more pleasant for the bicyclist, too. If you take your time, and you’re not always in a rush, stopping at red lights is no longer an annoyance: it’s an opportunity to cool down a little look around, learn about your city. I like the fact that my bike is faster than a car for most New York journeys. But that doesn’t mean I’m in a race.

Unsurprisingly, then, I love Celeste LeCompte’s article about the Slow Bike Movement in the SF Chronicle. And she makes an important, oft-overlooked point:

Seeing slow-riding folks like Logan and Stockmann out on the road can be a refreshing encouragement to hop on two wheels for a daily commute or a quick trip to the farmers’ market.

As a general rule, the propensity of non-bicyclists to give biking a try is inversely proportional to the average velocity of the bikers they see on the street. If you live in a city where women in wedge heels are steering their old steel bikes around their daily errand route, there’s really nothing intimidating or scary about the prospect of getting on a bike yourself. If it’s all hipsters on fixies, by contrast, that just makes biking feel all the more alien and stupid.

So, next time you get on a bike, give yourself an extra five or ten minutes, and take your time. You’ll be much happier for doing so. And your happiness is likely to prove contagious.

COMMENT

Here is another bike that goes really fast but should be very careful. Please bike safely using these type of bikes http://www.bikesxpress.com/Prestigio-Fix ie-Bike-by-Micargi-RD-248-_p_87.html

Posted by bikesxpress | Report as abusive

How to create jobs: bike lanes

Felix Salmon
Jun 22, 2011 17:29 EDT

We know that infrastructure spending is a good way of creating jobs. But what kind of infrastructure spending? Heidi Gerrett-Peltier looked at pedestrian, bicycle, and road projects in Anchorage, Austin, Baltimore, Bloomington, Concord, Eugene, Houston, Lexington, Madison, Santa Cruz, and Seattle — and came to a pretty clear conclusion:

Bicycling infrastructure creates the most jobs for a given level of spending: For each $1 million, the cycling projects in this study create a total of 11.4 jobs within the state where the project is located. Pedestrian-only projects create an average of about 10 jobs per $1 million and multi-use trails create nearly as many, at 9.6 jobs per $1 million. Infrastructure that combines road construction with pedestrian and bicycle facilities creates slightly fewer jobs for the same amount of spending, and road-only projects create the least, with a total of 7.8 jobs per $1 million.

This finding isn’t new, but it’s worth remembering as signs of detente start to appear in the war on bikes. It’s hot out there, people: no one wants or needs to ride fast. You get to a red light, stop at it. Take the opportunity to catch your breath and minimize your sweatiness upon arrival. And while you’re waiting, you can ponder the idea that every bike lane represents badly needed jobs in a recovery which is going much less well than expected.

COMMENT

nice post friend

Cycle saddle

Posted by maddy58 | Report as abusive

John Cassidy Watch, externalities edition

Felix Salmon
Mar 10, 2011 18:21 EST

I’m beginning to think that John Cassidy must have a serious masochistic streak: he’s now back for a third round of smack-downs, after having drawn unanimous scorn for his first two attempts to demonize bike lanes.

Cassidy purports to take seriously the question of his negative externalities when he drives his Jaguar. But he gets it embarrassingly wrong:

In the case of motor vehicles, there are several negative spillovers, the most obvious of which is pollution and the associated climate threat…

A second issue is congestion…

This gets things completely backwards. The amount of pollution emitted by today’s cars is actually pretty low, while the amount of congestion they cause is enormous. I’d be happy to introduce Cassidy to Charlie Komanoff one day, the guy who’s actually done all the hard empirical math on this question. The pollution-related negative externalities associated with Cassidy’s drives into Manhattan are tiny, while the congestion-related ones are enormous — well over $100 per trip.

And Cassidy’s proposals for tackling congestion are weird indeed: carpool lanes? I have no idea how that’s meant to work on 52nd Street. Meanwhile, the one thing which does work — congestion pricing — is conspicuously absent from Cassidy’s list.

All of this rhetoric allows Cassidy to set up a classic straw man:

Some would say that reducing New York’s carbon footprint is of such importance that we need to utilize bike lanes and other techniques to further inconvenience car drivers.

Actually, John, amid all the thousands of words which have been directed at you since you embarked upon this bizarre crusade, no one said anything like that at all. Big cities like New York are already by far the carbon-friendliest places in America, as Cassidy’s colleague David Owen would be happy to explain to him.

But Cassidy drives blithely on:

I haven’t seen any cost-benefit analysis backing this up, and, frankly, I don’t think such concerns are driving the debate. If global warming disappeared tomorrow, the bike lobby would still demand more bike lanes.

Well, John, here’s a cost-benefit analysis for you. It’s a massive Excel file, It has almost nothing to do with global warming, and it’s completely compelling. The bike lobby has a solidly-grounded empirical basis for the advantages of building bike lanes. You, on the other hand, have an XJ6, an 8pm reservation on Grove Street, and an overgrown sense of entitlement.

Cassidy claims that he wants

some sort of efficiency test beyond the rule of two wheels good, four wheels bad. Do the putative gains in convenience, safety, and fuel-economy from a particular bike lane outweigh the costs to motorists (and other parties, such as taxpayers and local businesses)?

At this point it’s clear that Cassidy has no idea what this kind of analysis — which actually does get done — is involved in these things. He gets the benefits largely right, although I think that he massively underestimates the value and importance of safety gains. If you significantly reduce pedestrian fatalities, as the Prospect Park West bike lane has done, that in and of itself is reason to build it. As for the costs, there’s really very little evidence that motorists and taxpayers and local businesses bear any costs at all.

Cassidy’s in such a bizarro world here that he even wonders out loud whether the Prospect Park West bike lane might endanger pedestrians, when in fact it protects them. And when he forays into the issue of pedestrian safety — an issue which the pro-bike-lane crowd would happily make the sole deciding issue for every single lane — he decides that what’s important here is “the growing problem of cyclists terrorizing pedestrians”. Again, without any empirical evidence to back up his assertion that this problem is growing at all, and certainly without any recognition of the fact that cars are much deadlier in collisions with pedestrians than bikes could ever be.

Cassidy reckons, in his conclusion, that the question of whether to build bike lanes is not a question of a public-interest transportation facility against private-interest parking spots. Instead, he says, “it comes down to one private user versus another” — presumably the bikers on the lane, versus the car drivers who would otherwise be able to park in those spots. Well, that’s an easy balance to strike. When Cassidy plonks his Jag down on a West Village street and disappears off to dinner, he’s just using up space: he’s not serving any public interest at all, and he’s blocking that part of the road for anybody else who might want to use it. When a bicyclist travels down a bike lane, by contrast, she’s there and she’s gone. She uses up almost no space, and she immediately frees up the lane for the next cyclist to come along behind her.

On top of that, every driver who decides to bicycle on one of the new lanes is one less driver for Cassidy to compete with in crosstown gridlock. By rights, he should be loving the way that bike lanes are reducing the number of cars on the road, rather than railing against them. But for all that he claims to be “wonky” in this post, it’s clear that he’s much more interested in coming up with any conceivable justification for his already-existing prejudices than he is in dispassionate analysis. The fact is, it’s the bicyclists who have all the data on their side. The car lobby just has inchoate rants.

COMMENT

Cars are unique among all common modes of *urban* transportation in that their sheer size — particularly in cities, which by definition have limited, expensive ground area for a large population to share — leads to a competitive, vicious circle of congestion when they’re overused. When more people drive, congestion gets worse for everyone, potentially destroying the positive economic effects of agglomeration, and as such the state has a vested interest in reducing congestion by discouraging driving.

Cycling, walking, and transit use are so much more space-efficient that, at typical urban densities, they are subject to a cooperative, virtuous circle of congestion that reinforces the positive externalities of urban agglomeration. More cyclists make for safer cycling conditions [P.L. Jacobsen, Inj Prev 2003;9:205-209], more foot traffic leads to lower crime rates, more transit riders creates demand for more frequent service. Looked at another way, each of these modes is subject to much higher thresholds where the virtuous circle turns vicious. The space occupied by three cars can easily fit 30 bicycles, one bus with 70 passengers, or hundreds of pedestrians.

Drivers tend to blindly bring their competitive outlook to all urban transportation, which is why Cassidy and others end up with such inane arguments.

Posted by PaytonC | Report as abusive

John Cassidy vs bipeds

Felix Salmon
Mar 9, 2011 02:00 EST

Aaron Naparstek has a masterful demolition of John Cassidy’s bizarre anti-bike-lane rant, but he somehow skips over the most wonderful bit of all:

I view the Bloomberg bike-lane policy as a classic case of regulatory capture by a small faddist minority intent on foisting its bipedalist views on a disinterested or actively reluctant populace.

Yes, you read that right: the New York populace, it seems, is basically comprised of cars, to the point at which bipeds are “a small faddist minority”.

Now it so happens that I’ve met Mr Cassidy a few times and he’s always looked perfectly bipedal to me. And for all that he enjoys parking his Jaguar XJ6 on Manhattan streets — he’s just written 1,250 words on the subject, after all — I’m quite sure that he always gets out and saunters happily among the other New York pedestrians as he makes his way to his dinner in the West Village.

It can hardly have escaped Cassidy’s notice, on his regular peregrinations from car to restaurant and back, that New York’s streets are positively bustling with bipedal life. There’s good reason for this: New York is a very dense city, in which 8 million or so bipeds — birds not included — cram themselves into a rather small area. His Jaguar XJ6 takes up about 100 square feet of street space; if everybody in Manhattan was so greedy, we’d turn the city into something more akin to Manhattan, Kansas.

And so New Yorkers turn to other modes of transportation. Primarily, we walk, taking up very little space while doing so. When we don’t walk, we cram lots of people into efficient vehicles like subways or buses. And sometimes we bike, since doing so makes a great deal of sense in a pretty flat city where space is at a premium.

Driving a car, on the other hand, is an enormously expensive thing to do, with most of the costs being borne by people other than the driver. Yet here’s Cassidy, the economics correspondent of the New Yorker:

From an economic perspective I also question whether the blanketing of the city with bike lanes—more than two hundred miles in the past three years—meets an objective cost-benefit criterion. Beyond a certain point, given the limited number of bicyclists in the city, the benefits of extra bike lanes must run into diminishing returns, and the costs to motorists (and pedestrians) of implementing the policies must increase. Have we reached that point? I would say so.

Well yes. If indeed the limited number of bicyclists in the city was a given, then Cassidy might have a point here. But it’s not. Bike lanes attract bikes no less effectively than roads attract cars and the number of cyclists in New York has been growing just as fast as the city can create new lanes for them. See if you can follow Cassidy’s logic here, because I can’t:

From San Francisco to London, local governments are introducing bike lanes, bike parks, bike-rental schemes, and other policies designed to encourage two-wheel motion. Generally speaking, I don’t have a problem with this movement: indeed, I support it. But the way it has been implemented, particularly in New York, irks me to no end…

Thanks to these four-wheel friends, I have discovered virtually every neighborhood of the city and its environs, and I would put my knowledge of New York’s geography and topography up against most native residents…

Let us have some bike lanes on heavily used and clearly defined routes to and from the city—and on popular biking routes within the city and the boroughs. But until and unless there is a referendum on the subject—or a much more expansive public debate, at least—it is time to call a halt to Sadik-Khan and her faceless road swipers.

The message here is that cars can and should be able to go anywhere in the city they like — that’s part of what makes them so great. Bikes, on the other hand, should be confined to a few “heavily used and clearly defined routes”, which would probably run parallel to existing subway lines. If you want to use a bicycle to explore the city, then you’re just going to have to take your chances in traffic, like Cassidy did in the 1980s.

In those days, there were few cyclists on the roads, and part of the thrill was avoiding cabs and other vehicles that would suddenly swing into your lane, apparently oblivious to your presence. When I got back to my apartment on East 12th Street, I was sometimes shaking.

Sorry, John, but the purpose of biking is not to “thrill” you so much that you end up shaking. And you surely know, even if you’re loathe to admit it, that traffic expands to fill the roads available: if you build more road space, you don’t reduce congestion, you just increase the number of cars. And similarly, if you reduce the amount of road space, you don’t increase congestion so much as you reduce the number of private cars. Which is a feature, not a bug.

Cassidy is convinced that the addition of bike lanes has increased the time he spends stuck in traffic, or looking for his beloved free on-street parking. (As Naparstek notes, his argument can basically be boiled down to “Street space should not be set aside for bike lanes. It should be set aside for free parking for my Jaguar XJ6″.) But the fact is that impatient motorists will always want to blame someone else for traffic, when, clearly, they themselves are the main culprit in that regard.

Cassidy has no problem with the vast number of parked cars which take up precious road space in New York because he regularly aspires to transcending his bipedal nature and becoming one of them himself. But if you replace those parked cars with a healthy, efficient and effective means of getting New Yorkers safely around town, then watch him roar. Jaguars — whether they have four wheels or four paws — are good at that.

Update: Adam Sternbergh piles on too, and Cassidy responds to us all.

COMMENT

‘Sorry, John, but the purpose of biking is not to “thrill” you so much that you end up shaking. And you surely know, even if you’re loathe to admit it…’

I think you mean “loath”, the adjective meaning reluctant or unwilling, not “loathe”, the verb.

Posted by archiegoodwin | Report as abusive

18 questions for Martin Erzinger

Felix Salmon
Dec 30, 2010 19:44 EST

M Schuler of Colorado leaves a blistering comment on my post about Martin Erzinger, the Morgan Stanley broker who bought his way out of a felony charge. It’s required reading for anybody who is inclined to believe Erzinger’s defense, that he fell asleep at the wheel, drifted off the road, and never had a clue that he’d hit anybody.

It’s also required reading for anybody who still lets Martin Erzinger or Morgan Stanley manage their money. Erzinger’s behavior is unconscionable, and Stanley’s continued employment of him is a massive blot on the firm’s reputation.

In any case, here’s the meat of the comment: 18 questions for Martin Erzinger. I very much doubt he’ll ever attempt to answer them.

1. Is it reasonable to believe that less than 10 minutes after completing a workout at your club you would fall asleep in the middle of the afternoon while driving your car?

2. Is it reasonable to believe that you would be suffering from sleep deprivation caused by sleep apnea to such an extent that this deprivation would cause this mid-afternoon narcolepsy?

3. Is it believable that this malady was not “diagnosed” until a week after the accident?

4. Is it believable that the “diagnosis” itself says “the patient “may have developed sleep apnea around the time of the accident”?

5. Is it believable that a qualified doctor would allow the patient to continue driving (thus risking his own liability and medical license) after such a serious accident?

6. Is it believable that you would remain asleep after hitting a cyclist, leaving the road, driving over two hundred and sixty feet through terrain rough enough to tear the bumper off your brand new car?

7. Is it believable that you were (as you testified in court) aware that the car came to rest on a steep angle and yet still be “dazed or asleep”?

8. Is it believable that upon coming to rest your body would not be hyperaware due to the over whelming amount of adrenaline coursing through your veins?

9. Is it believable that upon becoming aware that you had driven off the road over rough terrain in a brand new $100,000 plus Mercedes Benz, you would not get out of the car to inspect it for damage prior to driving out of the ditch and onto the road?

10. Is it believable that you would try to reenter the highway without looking behind you for oncoming traffic?

11. Is it believable that such a glance over your shoulder would not reveal the cars stopped across the highway at the point of your departure from the road and the body of the cyclist you hit lying in the road less than 90 yards behind you?

12. Is it believable that “an honest man” would not have any concern for damage he might have caused while “asleep” while driving”?

13. Is it believable that if you were going to call for a tow for your disabled car, that you would not call while the car was in the ditch, but would drive it out of the ditch, risking further damage, and proceed to drive over three miles to hide behind an abandoned Pizza Hut before calling for a tow?

14. Is it believable that an “honest man” would say he had called police when there is no record of such a call in the police call log nor on his cell phone records?

15. Is it believable that an “honest man” would tell Onstar not to use the email address they had on file for him (which was correct) but to use his wife’s email address?

16. Is it believable that an “honest man” would have his company’s employment attorney contact the District Attorney in order to attempt to influence the entering of a felony “due to the effect on his job”?

17. Is it believable that, knowing you had severely injured the son-in-law of a friend, you never visited the injured cyclist, never admitting hitting him? (In court you said “I’m sorry this happened to you”.)

18. Is it believable that an “honest man” would not notify the Security and Exchange Commission, as required by law, that he was charged with a felony until ordered to do so by a judge over 180 days after the accident?

Writes Schuler:

These are only a few of the questions that should have plagued the District Attorney prior to unfairly reducing a felony charge against Marty Erzinger to a couple of misdemeanors.

If you find the answers to these questions as unbelievable as I do, you must conclude that neither the District Attorney nor Mr. Erzinger could meet the reasonable standard of an honest man.

I, for one, would never want this man in charge of my money, nor any firm which happily continues to employ him.

COMMENT

Morgan Stanley couldn’t care less about the behavior of its employees.

Posted by Jakesnake | Report as abusive

Why Martin Erzinger’s victim doesn’t need his money

Felix Salmon
Dec 22, 2010 11:33 EST

Remember Martin Erzinger, the Morgan Stanley broker who bought his way out of a felony charge? He’s been sentenced now—a year’s probation, and 45 days of charity work. (Some people do that kind of thing voluntarily, and don’t consider it a punishment at all.) And Al Lewis has a magnificent column on the case, which uncovers an interesting twist: Erzinger’s victim, Steven Milo, is the son-in-law of Tom Marsico. Yes, that Tom Marsico, the one with $55 billion in assets under management.

Mutual fund magnate Tom Marsico was at the Vail Valley Medical Center on July 3, tending to his son-in-law, Dr. Steven Milo, who’d been hit by a black, 2010 Mercedes while bicycling…

Into the ER rolls Martin Erzinger, a wealth adviser who oversees more than $1 billion in accounts at Morgan Stanley Smith Barney in Denver.

Erzinger says hi to [Marsico's wife] Cydney.

“Marty and I have been acquaintances for some 20 years,” Marsico explained. “I said, ‘Geez, Marty, is there anything I can do for you? He said, ‘Oh, no, I’m just in for some preliminary tests.’”

Erzinger was in and out in 20 minutes, Marsico recounted: “He checked out just fine.” But Marsico’s mind raced. Black Mercedes? Erzinger? “I was putting two and two together and I thought, ‘Oh, God. No. This can’t be.”

The Marsico connection underlines why Milo was naturally more interested in justice than in money, and why it’s unconscionable that DA Mark Hurlbert would ever suggest—as he did, when he dropped the felony charges—that “justice in this case includes restitution and the ability to pay it.”

Milo is going to suffer greatly for the rest of his life as a result of Erzinger’s actions, but Erzinger’s future income isn’t going to help him. Instead, Milo will have to life with the knowledge that his assailant, who left him to die on the side of the road, not only avoided jail, but even blamed “new-car smell” in his attempt to duck responsibility for his actions.

Erzinger should be in jail right now, rather than managing hundreds of millions of dollars of other people’s money. I hope his clients drop him—and that other Morgan Stanley clients, too, move their money elsewhere. Perhaps to Marsico Capital. I can’t see how anybody would want to park their money with a firm which continues to pay Martin Erzinger millions of dollars.

COMMENT

Felix do you work for TMZ or Reuters? I can’t tell after this article. This is not a quality article about the public markets. I can’t believe Reuters let you publish this. This a joke! Why are you writing about some broker in Denver? This is a ‘hack’ article and you know it. You are looking for another Wall Streeters are bad guys article and this is what you found.

Posted by karpis | Report as abusive
  •