Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-07-08
Contract Signed
But Official
OK Is Needed
BY DAN GOTTLIEB
Star Staff Writer

the Washington Metropolitan
Areas passenger traffic.
In a surprise announcement
yesterday. President o. Roy
Chalk, of D. C. Transit, said
that his company had con-
cluded a contract to buy the
controlling interest in the Ar
mold line which operates pri-
marily in the northern portion
of Arlington and in the Dis
trict.
No details of the agreement
were announced, but The Star
learned that the proposal would
call for purchase of the APP
proXimately 80 per cent of the
Arnold line stock inherited by
w. George Faraco from his
wife, Antoinette Arnold Faraco.
Mr.. Faraco's wife died last
August 10. She had been board
chairman and president of the
line since her first husband,
Joseph L. Arnold, died in 1858.
She married Mr.. Faraco in
1855.
Approval Is Pending
The Washington Metropoli-
tan Area Transit Commission,
one of several Government
agencies which will probably
have to approve the deal, had
received no official proposal
from D. c. Transit as of early
today, according to executive
director Delmer Ison.
Neither Mr.. Chalk nor Mr..
Faraco could be reached today
for comment. The announce
meht issued by D. C. Transit
stated that the unification
with the Arnold line, the areas
third largest mass transit COM
pany. would permit maximum
efficiencies and extended COW
erage in new areas now in pro-
cess of development through
out Virginia and Maryland"
D. c. Transit's policy of
adding new air conditioned
buses and the most modern
facilities will be extended to
the Virginia area on a broad
front" the announcement said.
No purchase price was dis
closed, but the total stockhold-
er equity in the Arnold line is
about 100000, according to
the latest published reports of
the transit commission.
This figure is not necessarily
an indication of the present
worth of the company's stock.
Last year, the company took in
about So million in revenues
compared to D. c. Transit's
approximately $50 million. The
net operating income, or profit.
OF Arnold was SITS, 900, a rec
ord for the company, according
to President S. A. De Stefano.
The deal if approved, would
give D. C. Transit its first
major franchise right to OBJ
crate in Virginia. It ALREADY
has a substantial operation
in Montgomery and Prince
Georges Counties in Maryland.
1t recently obtained operating
rights directly from Mont
gomery County to the new
Central Intelligence Agency
headquarters in Virginia over
the opposition of the Arnold
line.
The two companies now
provide some through service
through the areas joint fare
agreement, but this involves
a transfer in downtown WASH
lngton. If the two companies
were one, presumably passen-
gers in Virginia could ride
directly to any point in the
District, If it was decided to
operate such service.
D. c. Transit has beep
known to be interested in ac-
quirir1g other bus companies
in the area. Two years ago
there were discussions with the
VIVA. Transit Company, the
smallest of the areas four mass
transit firms, which operates
between the District and Prince
Georges County.
The other company operat-
ing in Virginia beside Arnold
is the A. B. & w. Transit
Company. Its primary terri
tory is in southern Arlington
and Alexandria, with service
to the District.
d. c. Transit and Arnold
have the same basic fares-25
cents cash and 2IA cent
tokens.
Line Has zoo Buses
Arnold has 200 buses of
which As are the newer. air.
conditioned type which d. c.
Transit has been adding to
its system since 1858. D. c.
Transit has more than l,l55
buses Of which 434 are air
conditioned.
The transit commission ac-
cording TO law must hold a
hearing on purchases OF con-
troll by one carrier of another.
Also, the deal will probably
have to be approved by the
Virginia State Corporation
Commission, the Interstate
Commerce Commission, Securi-
ties and Exchange Commission
and the Civil Aeronautics
Board.
The announcement yester-
day did not make clear which
OF Mr., Chalk's companies, d.
c. Transit of the District, or
D. c. Transit Of Delaware.