Evening star., 1949-11-30
County toAttack
Bus Line Rental
OF Arnold Land
Arlington Officials
To Challenge Deal
At Fare Hearing

stage to attack arrangements
made by the Washington. Virginia
g. Maryland Coach Co., in renting
property from its own president,
Joseph L. Arnold. C.
The company. known as the
Arnold Line. is asking the Inter-
state Commerce Commission to
authorize higher fares between
the District and Northern Vir-
ginia points. A hearing on the
APPLICATION entered Its third day
this morning.
First discussion Of the COM
pany's lease with Mr.. Arnold arose
late yesterday, when witness
testified the utility is paying 5000
a month rental for the Arnold
owned property in Arlington. The
rent was increased last year from
$3,100 a month.
Promises Subpoena.
Lester r. Conley, who was re-
tanned by the county to fight the
fare application, promised to sub
poena an Arnold official to ques-
ton him about the contract un-
less the company produces him
voluntarily. The official is Man
uel j. Davis, board chairman and
general counsel. who executed the
lease for Mr.. and Mrs. Arnold.
Over protests of S. Harrison
Kahn, counsel for the utility, Mr..
Conley won delay in cross-exam-
lining a witness about statistical
data presented yesterday. Ex-
aminer j. j. Williams. who is hear
ing the case for the ICC. allowed
Mr.. Conley until tomorrow before
he examines Roy Grubbs. Rich
mond certified public accountant.
The accountant submitted numer-
GUS complicated exhibits intended
to show that Arnold is entitled to
raise fares.
$500 . Day Loss Claimed.
The company contends the
county had ample time to pre-
pare for the case and should not
be permitted to delay proceed
ings. It claims to be losing at the
rate Of $500 d day. taking into
account the higher wages it must
pay under terms of a recent arbi-
tration award.
Mr.. Conley, on the other hand
declared the loss is f1gurative be-
cause the company is not paying
at the new wage scale and may
never do so. The postponement in
cross-examining Mr.. Grubbs, he
said, will give time to study the
figures compiled for the utility.
In substance. Mr.. Grubbs testi-
fed that Arnoldis net financial
situation is bad in spite of re-
duced maintenance and operat-
ng~expenses. Although the COM
pany won a fare increase in 1947,
he said a loss in passenger traftc
Offset the benefits.
State in Technical Charge.
Examiner Williams said he ex-
poets to rule today on Mr.. Con-
ley's request that the State Of
Virginia be made party to the
proceedings unless the ICC strikes
testimony offered earlier by Ber-
nard Wahle, general manager Of
the bus line. The request Is based
upon the fact that the State Is
in technical charge Of operating
the Arnold buses.
Virginia took over the company
this fall to prevent strike OF
drivers. The drivers threatened
to walk out unless the company
started paying the higher wages
authorized by arbitration. The
utility blamed its delay on the
shortage of revenues and filed ap-
plication for the fare increase.
Richard C. Bennett. controller
for the bus line told Examiner
williams that Joseph L. Arnold
went on the payroll at $4,000 a
year. just a few days before the
State took charge. The president
had not been paid a salary since
December. 1947. the witness said.
During 1947. Mr.. Arnold received
a total salary of s9,031, Mr.. Ben
nett testified.
The controller said these other
salaries have been paid officials:
Mr.. Davis, $10,553 in 1947 and
none since; H. H. England, for
mer secretary treasurer, $3.50 in
1947; M. D. Mills, former general
manager. $7,823 from February to
April, 1948, and Mr.. Wahle, S.
6s3 for 512 months in 194s. He
said it cost the company $40 .000
in extra legal fees to press its
petition for fare increases two
years ago.
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