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The Long Island Airport Limousine Service, which may lose its New York City franchise because of an argument over whether it tried to cheat the city ‘ out of street‐use fees, fought back last week by questioning the competency of a group of taxi‐fleet owners who want to take over the airport routes.

The limousine service is fighting a decision made by the Board of Estimate in Max‐’ to revoke its franchise, because the Bureau of Franchises and the Comptrollers office said the service was behind in payments to the city and kept its records so poorly that no one could figure out what it really owed.

The Limousine service, vow in the 21st month of a strike by 1 Teamsters Local 1034. asserts that the city is trying to revoke the franchise only because of pressure from the union. The company did not operate for the first three months of the strike, but then hired new drivers The franchise matter is now before the Appellate Division of the State Supreme Court. which has granted a temporary stay of the franchise revocation.

10‐Year Contract Entended

The company. which carries 7,000 passengers a week in 75 11‐passenger “limousines” and 12 buses, needs city permission to dri\ e on streets near La Guardia Airport and John F. Kennedy International Airport as it carries air traveles to and from Nassau and Suffolk Counties. To get this permission it signed a 10‐year contract—originally due to expire at the end of this year. but extended temporarily by the court—that promises the c:ty 1 percent of its gross revenue from the airport operation.

The Comptrollers office, auditing the companys books for the first six and a half years of the contract. argued that the company owed the city S‐1.1.000 more than it had paid. After consultation between the city and the company, S12.000 payment was agreed upon. The city later told the company to keep wedding limos in orlando more complete records.

In October 1976 the city began a threeand-a-half month audit of the company, which disclosed a S‐I.200 discrepancy between what the company had paid and what the city thought was Owed.

“They came in saying they were looking for something, they were very hostile.” Walter Stuart, owner and president of the limousine service. said in an imerview. He called the S‐1.200 “peanuts.” adding: “We gross over 52 million a year. To say were deliberately hiding it is ridiculous.”

He said he had been told by Morris Tarshis. the citys Director of Franchises, “‘Either you settle with the union or wilt put you Out of business.”’

‘Ir. Tarshis denied making the statement, calling Mr. Stuart “an outright

The issue, he said, was not tiv S4.200, but that Mr. Stuart had not kep more detailed drivers’ logs and records of nonairport business so the city could determine what it was owed.

Mr. Stuart contended that a union official had threatened hint with the city audit, but Mr. Tarshis insisted it had nothing to do with the union.

Meanwhile. a hearing was held Thursday. held before Herbert liumpf, art administrative law judge on the application of a consortium of Long Island taxifleet owners to take over the airport routes. It proposes to invest $100.000 in ‐10 passenger vans and other equipment. and to raise rates by about $1 a ride, providing nonstop service to both airports. Rates now run front $3550 to $14.50, depending on the distance.

The limousine ‐.ervices lawyer- Arthur Wagner. sought to show that there were no firm plans to invest the money.