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It's unfortunate when you see a child being mistreated, but it's kind of a helpless situation when there's nothing you can do because the child isn't actually being abused. I've been in stores and heard parents cursing their kids out, yelling, threatening...and I wanted more than anything to butt in and tell them to behave like the adult they're supposed to be...but there was nothing I could do or say because whether I like it or not, or approve or not, parents can talk to their kids however they want.
In this situation though, seeing as it happened at a school bus stop, I think you did the right thing. True enough, albeit sad enough, this guy can scream at his poor son all he wants in his own home, but he does not have the right to act like an a$$ in front of other children at a bus stop.
And since these are your neighbors, and you know the dad has a temper, I would definitely be on alert for any real signs of abuse. Any injuries to that kid, even if he says he fell out of a tree or off his bike or whatever, I would be calling CPS.