Evening star. [volume] (Washington, D.C.) 1854-1972, 1949-12-01
Arnold Counsel
To Tell Of Loans
Fund
County Lawyer Asks
Testimony Of Davis,
Bus Company Lawyer

buSNomPony Lawyer
Lester r. Conley, representing
the Arlington County Board at
the Interstate Commerce Com
mission. fare increase hearing.
today subpoened Manuel j. Davis,
general counsel of the Washington,
Virginia & Maryland Coach Co.
(Arnold Line) to inquire into the
handling of loans from
the employees pension trust fund.
Examiner ]. j. Williams, who Is
conducting the hearing, made out
q subpoena at Mr.. Conley's request
calling for Mr.. Davis appearance.
Mr.. Conley said he was raising
the question as to whether it is
appropriate for the company to
borrow money from the employees
pension trust fund.
T. Roy yGrubbs. Richmond certi-
fed public accountant, was on the
witness stand this morning. under
cross-examination, as Mr.. Conley
probed the company's financial
setup. Mr.. Conley developed that
on April IL, 1947, a 100000 loan
was made to the corporation from
the employees pension trust fund.
Second Loan Made.
On December 81, 1916, another
loan was made from the fund to
the corporation. apparently for
$50 900, Mr.. Conley said.
Mr.. Grubbs testified company
records show that on September
80 a loan from the pension fund
was carried on the books and in
terest is now being paid on it di-
rectly to the trustees. The sum
involved, Mr.. Grubbs said. is
$4,000, the principal remaining
unpaid.
Mr.. Conley told Examiner Will
liams the company owes duty to
the public and the commission to
conduct it's affairs properly. He
said disclosure of the loans from
the fund to the company raises the
question of whether the fund
trustees are carrying out their
obligations properly.
He said records will show that q
loan was made from the fund to
Mr.. Davis. a lawyer who has Offices
in the Barr Building here and lives
at 34O8 North Military road, Arl-
ington.
Helped With Exhibits.
Mr.. Grubbs said he had not
made a complete audit of the COM
panys books. but only aided in
preparing financial exhibits for
this hearing. He said consider
able progress has been made re-
Gently in reducing accounts pay
able to the company. Mr.. Grubbs
said he saw to it that the ex-
hibits agreed with the company'S
books and annual reports to the
commission, but declared he does
not have detailed information on
each account.
Mr.. Conley commended the COM
pany is not furnishing the in
formation he Is seeking. He told
the examiner he is informed by
the company attorney, S. Harri-
son Kahn. that another witness
will supply that information. but
the Arlington County lawyer
maintained he is not able to get
definite answers to his questions
from company witnesses.
At the hearing yesterday Jesse
F. Stokely. company traffic man.
ager, blamed the growth Of Ar
lington shopping centers for the
busline's loss of interstate busi-
ness.
The company is requesting Q
5-cent-per-zone fare increase gen.
orally and an increase In the price
Of tokens from four for so cents
to six for 81 to meet higher ex-
penses, including an arbitration
award for It's workers.
10-cent Fare Unchanged.
Mr.. Stokely testified there is no
plan to increase the present 10
cent fare between the District and
the Pentagon, Navy Annex and
Arlington Farms. He said "a per
cent of the total passengers car
ried are interstate and that Is
per cent Of the within-State pas
sengers are, school children.
Complete and comprehensive
centers in the county
have made it more convenient for
women shoppers. the witness said.
He did not estimate the sum Of
the company contends 1t
is losing because of this changed
pattern of travel.
New housing developments in
the residential areas will aggravats
the rush-hour situation, Mr..
Stokely said. He declared the
company loses money on rush.
hour service.