New-York tribune., 1913-07-29
INJUNCT|ONS HOLD Up
c|TYS TAXI ORDINANCE
Two Hotels and Three Cab Conn.,
panies Contend That New
Measure Is ConfiSCatOry.
PERMANENT ORDERS ASKED
Largest Vehicular Concern Says
Profits of Business Are
Small and Urges an In
crease in the Rates.

Five temporary injunctions were issued
by Justice Donnelly yesterday to restrain
the city from putting into effect Friday
the new taxicab ordinance that provides
for lower fares and public stands. The
iniunctions were sworn out blythe Man
haitian Hotel. Waldorf Astoria. the yell
low Taxicab Company, New TaNicao
Company and the Universal TaXimeter
Cab Company. The taxicab companies
declare that the new ordinance is harsh
and confscatory, and that they will be
driven into bankruptcy If compelled TO
live up TO the new tariff. The Nello"
Taxicab Company contends that the rates
should be Increased instead OF being
lowered.
The plaintiffs obtained with their in
functions orders requiring the city 10
show cause why the injunctons should
not be made permanent These orders are
returnable for argument Friday, the day
on which the new ordinance is TO 90
into effect. The move by the two hotels
and the three taXicab companies VIII pre-
vent the city from making the law opera
tive on that day. and unless Justice Guy
before whom argument will be made de-
cides to determine the cases without nav
ing them put on the calendar for t1al IN
the fall term Of the court, the working OF
the ordinance will be indefinitely held up
The owners Of the Hotel Manhattan and
the Waldorf-Astoria complain that the
establishment Of public cab stands makes
II possible for cabs 10 block the egress
Of their patrons, and that only with the
private stands can they compel prompt
and courteous treatment for their guests.
The Yellow Taxicab Company, the iaTS-
est Of the companies suing TO nave tne
ordinance declared void. says the stocks
and bonds OF the company represent an
outlay Of j.322 so. which is the value OF
the company's plant good will, caSh m
vestmont in building up the business ana
money lost In the operation OF the ousl-
ness. Its garage business amounts 10
only II per cent OF the total business.
The hotel stand business, II Is alleged
furnishes the company its only oppor-
tunitv TO realize a return on Its invest
mcnt. Al certain hours Of the day II IS
not unusual FOR cabs 10 be- hired out AT
the rate Of one a minute
II would be impossible, says the com
pany. 10 give this service by any other
means than by the stands as conducted
AT present The plaintiffs think that lo"
rates mean poorer service and lack of
responsibility by some OF the concerns
providing the vehicles. II is further al
l.sod that the new law does not PROVIDE
anv method by which a criminal or other
improper person may be denied a driver
license. All that IS necessary is that the
applicant furnish a testimonial by two
citizens that mis- conduct has been good
FOR one year.
The company submitted to the court an
AFFIDAVIT by an accountant that the com
pany had never paid a dividend and mad
not earned enough on IT'S taxicab business
to pav interest on its Indebtedness. Ihe
company sustained a loss 81 @.9h In the
wear ended May q. 1913. 1t is stated by
the company that the rates In Ne" YORK
ar. lower than IN any other large city
=, hile the cost Of operation IS greater.