Evening star., 1951-11-08

BusIine Spokesman
Cites Revenue Need
In Fight on Tokens
Malcolm D. Miller, attorney for
the Arlington County Board, at
an Interstate Commerce Commis-
sion hearing yesterday attacked
terms under which Mr.. and Mrs.
Joseph L. Arnold lease their bus
line property to the Washington,
Virginia & Maryland Coach Co.
The company, known also as
the Arnold Lines, is seeking au-
thority to abolish tokens.
The ICC today delved deeper
into company affairs.
Spokesman for the busline said
that more revenue is needed to
meet rising operating costs. They
want a straight cash fare, start
ing with 20 cents and increasing
with the more distant zones. Six
tokens are now sold for 81 and
may be used with cash fares to
get cheaper rides in various zones.
ICC Examiner J. j. Williams
today was prepared to hear testi-
mony from an appraiser. John j.
Lof1in of 1920 Wilson boulevard,
Arlington. Mr.. Loflin has advised
Mr.. Arnold. president of the Ar
mold Lines, that the property on
North Randolph street. Arlington,
now being used as company Of
fees. warehouse and bus garages
is valued at 1854 ,465. The Ar
nolds are both owners of the
property and majority stockhold-
ers in 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 l0-year lease made May 20,
1916, under which the company
agreed to pay 100000 annual
rental, was scrapped. In it's 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
tained 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
Inolds, but that the company pays
for minor repairs. Mr.. Arnold gets
$4,000 annually as company pres
Iident.
The Arlington County Board is
opposing elimination of tokens.
| 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.
D Mr.. Wahle testified that the
company has purchased no new
buses since 1947, since it has been
$ unable to borrow money from
lending agencies. He explained,
!, however. that it has been able
r to lease new and used buses for
, elght-year periods. He said larger
buses are being utilized.
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 its
:, territory which will not be profit
! ! able Immediately. He said the
company needs additional equip
ment. He said part of the addi-
tional revenue is needed to give a
return to the stockholders on
their investment.
: Attorney S. Harrison Kahn, rep
1 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 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
5 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
lPUC.
:. Letter Outlines Views.
Mr.. Kahn then introduced a
letter from Mr.. Glassman to Mr.
Wahle, which said in part: "I
then proposed that if the COM
pany were convinced that an in
crease in rates in necessary to Sc
cure adequate revenues, the bad
effects of the increase would be
minimized by raising the cash fare
during rush hours and that an off,
setting reduction in fare durinR
off-peak hours should be made.
; This differential would tend to
spread the peak hours, increase
of-peak riding and increase utiii-
/, zation Of equipment.
However, I am certainly not
. convinced, particularly after a re-
view OF your current revenue posi-
tion, that your company needs any
increase in fares. Even an increase
", hay,~ eo,1s