Evening star., 1946-04-25
W.,M.; "a. Fare
Slash Urged at
Initial HEARING
30 -Doy Recess Given
To Allow Filing Of
Company Statement

Inc Pupuc ULlutleS commission
rate hearings on the District opera
tions of the Washington, Marlboro
and Annapolis Motor Lines, Inc,
will be resumed within the next 80
days when company counsel have
had time to draw up financial
statement exhibits.
The opening session was recessed
late yesterday after v. A. McElfresh,
chief accountant for the commission,
testified that according to his in
vestigation of company finances,
$33, ,259.35 Of the company's expected
income for this year could 60 back
to the District bus rider In re-
duced fares.
Mr.. McElfresh said a 7-cent
fare would consume about this
amount out of the company earn
ings but added he was not prepared
to recommend such a fare because
of the effect it might have on the
present transfer agreement be-
tween the company and the Capital
Transit Co.
Token Arrangement.
The present fare is 10 cents with
a token arrangement on two of
the five lines which run from the
Eleventh street terminal out Penn
.sylvania avenue and then fan out
to the various nearby Maryland
communities. These two lines, &C
cording to Mr. McElfresh, also have
a transfer arrangement with the
transit company.
He said extension of tokens to
the three other lines would still
give the company a 17.4 per cent
return but would not use all the
amount available for reduction.
Rate reduction is sought by resi-
dents of Bradbury Heights, Fort
Davis and Randle Highlands who
use the buses on that part of their
trips within the District.
Last September the company adj
vised the PUG it could not reduce
the rates. The commission ordered
an investigation of it's finances to
determine a rate base and see If
the fare is justified.
26 Per Cent Return Reported.
The investigation, supervised by
Mr.. McElfresh, brought out that
TIA per cent of the passenger
miles of the company service in
volved District customers. He said
his figures showed the company
made 1884 per cent return in 1945
in its overall operations and 45.37
per cent on the District share.
Its a little on the high side for
regulated utility" he commented
with a grin.
The PUG accountant said he
thought 9 per cent return on fair
value would be reasonable rate
LOT return for the company for its
fDistrict operations in line with what
similar companies in other juris-
fdictions make His estimate of the
tamount available for rate reduc-
tion this year, he said, was based
on the difference between an esti-
mated per cent yield this year
and what the company will take in
at present rates.
Controlled by Altman.
Earlier, Mr.. McElfresh testified
the corporation was founded in
1926 and that in 194l L. L. Altman,
president, owned all but two shares
of the common stock and all of the
8 per cent preferred. That same
year, he added, Mr.. Altman and
his wife formed partnership
which owned and rented to the
corporation garage facilities in
Bradbury Heights until they sold
the garage to the corporation. In
1912, he continued, Mr.. Altman
turned over all the preferred stock
to his wife.
The PUG accountant explained
his figures on company earnings
represented a consolidation of the
balance sheets and income state
ments of the corporation and the
partnership. both of which he said
are controlled and dominated by
Mr.. Altman.
James P. Donovan, attorney for
the company, objected to includ-
ing the partnership in the figures,
but was overruled by Chairman
t.