Evening star., 1946-04-25
W., NJ. Fare
Slash Urged at
Initial Hearing
30-Ddy Recess Given
To Allow Filing Of
Company Statement

J rate hearings on the District opera
tions of the Washington, Marlboro
and Annapolis Motor Lines, Inc.
will be resumed within the next 3(
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 companys expected
income for this year could go back
to the District bus rider in re-
duced fares.
Mr.. McElfresh said 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.
1OhCH ATTduS cH1tut.
The present fare is 10 cents with
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, ac-
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 ia 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 ad.
vised the PUG it could not reduce
the rates. The commission ordered
an investigation Of its finances tt
determine rate base and see i
+ VIZ tpt L 40 JesoGllAtb.
26 Per Cent Return Reported.
The investigation, supervised by
MI. MCElfresh, brought out thai
l774 per cent Of the passenger.
miles of the company service in.
volved District customers. He sale
his figures showed the company
made a 2694 per cent return in 194t
in its overall operations and 45.37
per cent on the District share.
Its a little on the high side fol
a regulated utility" he commented
with grin.
/ The PUG accountant said ht
thought per cent return on fai,
value would be a reasonable ratt
of return for the company for it!
District operations in line with wha
similar companies in other juris'
dictiOnS make His estimate of tht
amount available for rate reduc
ton this year, he said was basec
on the difference between an eSti
mated 9 per cent yield this yea
and what the company will take il
at present rates.
Controlled by Altman.
! Earlier, Mr.. McElfresh testified
the corporation was founded il
1926 and that in 194l L. L. Altman
president, owned all but two shares
of the common stock and all of the
per cent preferred. That same
year, he added, Mr.. Altman anc
his wife formed partnership
which owned and rented to tht
corporation garage facilities il
Bradbury Heights until they sole
the garage to the corporation. II
1912, he continued, Mr.. Altman
turned over all the preferred stocl
to his wife
The PUG accountant explained
his figures on company earning!
represented a consolidation of tht
balance sheets and income state.
ments of the corporation and tht
partnership, both of which he sale
are controlled and dominated by
MI Altman.
James P. Donovan, attorney fol
the company, objected to includ
ing the partnership in the figures
but was overruled by Chairman
James H FLANAGAN.