Evening star., 1947-06-23
Bus LineCifes
Poor Credit in
Fare Boost Plea
Arnold OfficioI Tells
ice Hearing Firm Is
Unable to Poy Rental

A dlSlntegrating credit posi-
ton is imperiling operations Of
the Washington, Virginia 81
Maryland Coach Co. (Arnold
Lines, the Interstate Commerce
Commission was told today to-
day as the company began its
fight for fare increases.
"All Of our creditors are after US
daily" Howard H. England, vice
president and general manager, de-
clared as hearing on the COM
pany's petition opened before Ex-
aniner. L. j. Kassel.
Mr.. England testified outstanding
accounts include that for rental
of Capital Transit Co. buses used
in the Pentagon service. The Vir-
ginia line has been unable to pay
anything for these buses to date,
although it has been using them
since April l, he said.
Asking Scent Increase.
"If they should withdraw their
buses we would not be able to serve
the public at the Pentagon," Mr..
England added.
Arnold Lines is seeking an in
crease In its interstate fares
amounting to cents in cash or
az cents through token payments
Mr.. England testified the increase
was essential to solvency Of the
company, and would help to equal
lie" fares between the District and
Virginia points. He explained the
new scale would produce its great
est proportionate increase in the
Virginia. zone, where, he said,
passengers now are paying the least
for their transportation on a mile
age basis.
Gross Income Down.
Excluding the Pentagon operation,
the company's gross income for the
first five months of 1947 was $94, 1874
below that for the corresponding
period in 1916, he said.
To the postwar decline in patron
age had been added increased oper-
ating costs, including higher wages,
he continued. Mr.. England recalled
that in 1882 the firm voluntarily
eliminated the scent cash fare
from Rosslyn to downtown Wash
tngton. Prior to that move, he
pointed out. inter State passengers
were obliged to pay at least IS cents,
since the nickel was added to the
10-cent or larger charge to travel
within Virginia.
Mr. England said creditors now
pressing the firm ror payment OF
their bills include suppliers of fuel
and parts. He testified a number
Of them, including a gasoline dis
tributor, had refused further credit
and were insisting on day-by-day
payments for deliveries.
This serious financial situation has
developed despite the fact the COM
pany effected economies substanti-
ally in excess of those promised the
ICC when the Arnold Lines sought
approval of its merger with the
Arnold & Fairfax Motor Transpor-
tation Co., Mr.. England told the ex-
aminer.
Savings are Listed.
Exhibits detailing the savings were
introduced in evidence, and Mr..
England said other savings had been
achieved since their preparation, in
cluding voluntary annual salary
reduction of $4,000 by two officers
of the firm.
Mr.. England testified an inter-
state passenger travelling to and
from the first Virginia zone was
paying an average of 129 cents per
mile, whereas patron using the
service wholly within the State was
paying an average mile rate OF 2
cents. The increase asked would
bring the cost to the interstate pas
senger up to Isl If he used tokens
or 1893 in cash, he added.
He estimated increased annual
gross revenue would be approx
mately s273,750, based on an average
daily interstate passenger load of
10000.
Vigorous opposition to the petition
by the Arlington Public Utilities
Commission, Arlington Bus Riders
Association and the Public Utilities
Committee Of the Arlington Civic
Federation was expected to follow
the company's presentation.
Following Mr. England's testimony
the hearing was adjourned until $50
am. tomorrow to permit counsel for
opponents of the increase to ex-
anime the company's exhibits.