Evening star., 1951-11-08
Arnold Bus|ine
Tells ice Of
Deficit Figures
Company Is 1924, ,926
In Red, Official Says
At Fare Rise Hearing

The Washington, Virginia and
Maryland Coach Co. (Arnold
Lines), had a total deficit on Sep
tember 80 of $234,926, the Inter
state Commerce Commission was
told today.
Richard c. Bennett, the COM
pany's controller. gave this testi-
mony at hearing, in which the
firm is seeking to abolish the use
of tokens on its lines.
Mr.. Bennett also testified that
the company faces an additional
contingent liability of $243,928,
representing an initial Federal
income tax assessment from 1910
to 1947. The case is now before
the Bureau of Internal Revenue,
the controller said, and may be
adjusted downward.
The ~eompany'S president, Jo-
seph L. Arnold, still has $10,153
in back salary coming. Mr.. Ben
nett said.
Balance Sheets Shown.
Attorney S. Harrison Calm laid
before Examiner j. j. Williams.
hearing the case, a number of bal
ance sheets. showing the COM
pany's financial condition.
Mr.. Bennett testified that it is
more economical for the company
to buy new buses than to lease
them but that it doesn't have
enough money to add new equip
ment.
John J. Lof1in. 242O Wilson
boulevard. Arlington, a real
estate man and appraiser. testi-
fled that the Arnold property on
North Randolph street is valued
at 1854, ,465.
Malcolm D. Miller, attorney for
the Arlington County Board, yes
terday attacked terms under
which Mr.. and Mrs. Arnold lease
their busline property to the
Washington. Virginia & Maryland
Coach Co.
Higher Lease Signed.
Mr.. Miller developed in cross ex-
animation of Bernard Wahle, ex-
ecutive vice president and general
manager of the Arnold Lines, that
a 10-year lease made May 20,
1916, under which the company
agreed to pay 100000 annual
rental. was scrapped. In its stead
a new lease was signed under
which the company will pay the
Arnolds $4,000 annually for Is
years, Mr.. Wahle said.
But the general manager point
ed out that the Arnolds had OBJ
tanned permission from the Vir-
ginia State Corporation Commits
sion to increase the rent. He ex-
planned that insurance and real
estate taxes are paid by the Ar
nolds, but that the company pays
for minor repairs. Mr.. Arnold gets
$4,000 annually as company pres
ident.
The general manager said the
company does not know what ef-
feet the new department stores,
erected by the Hecht Co. and
Kanns, will have on the bus COM
pany's business. But he said off,
cials of these concerns feel that
they will draw business from
Washington. particularly from
Georgetown.
Routes Being Extended.
He said employees recently re-
ceived wage boosts totaling $780,
900 and that elimination of tokens
and having only cash fares would
reimburse the company in part
for this expense. He said the
company also is extending routes
to newly built-up areas in it's
territory which will not be profit
able Immediately.
Attorney s. Harrison Kahn, rep
resenting the company, said
Arlington County contends the
company is not entitled to a rate
of return. He also charged that
the county is going on a fishing
expedition" seeking information
to which is not entitled about
the company's operations.
Mr.. Wahle testified that Gerald
j. Glassman, executive assistant
of the Arlington Public Utilities
Commission, had expounded a
theory to him Of increasing fares
cents during rush hours. He did
this. the witness said. because the
cost of rush-hour service is great
er. Mr.. Glassman also spoke about
reducing fares during non-rush
hours. Mr.. Wahle said. Attorney
Miller told Examiner Williams that
he intends to controvert these
statements, which were made
merely on an informal basis and
do not represent the views of the