The Washington herald., 1913-06-06
$4,000 TRIBUTE
paid BY PUBLIC
People Indirectly Give This
Sum to Hotels for Privilege
Of Riding in Cabs.
JUSTIFICATION IS CLAIM
Twenty Per Cent of Vehicle CON-
panies Earnings Goes for Ex-
elusive Street Rights.
JUSTIFICATION Is CLAIM

People of Washington pay a tribute of
about $4,000 year to the local hotels
for convenience of having taxicabs to
ride In now and then. according TO esti-
mates of local cabmen. Not the least of
the hotels income are the public streets
whichb ring high rental Every time
Washingtonian hires q cab. 70 per cent
Of his fare goes to reimburse the hotel
arrangements for their trouble In allow
ing the use Of the public thoroughfares.
The hotel Arrangements exact this trib-
ute. they explain. In the interests of
their guests. Their guests must have
the best cab service that the city affords.
This consideration forces the hotels to
grant the exclusive privilege of using the
public streets to certain taxicab COM
panies and, further. compels them to lay
20 per cent tribute on the favored COM
pany for the courtesy OF their grant. In
the best interests of the hotel guest. resi-
dents Of Washington pay exorbitant
taxicab rates which go to provide vel
vet" for the hotels. There is nothing in
this proposition. the hotel people say,
which the people Of the District have any
right to object TO.
Large hotels exact a bonus of % per
cent. Some of the smaller hotels take
10 per cent. All get something. or, in
some cases, run their own service. which
| in effect, amounts to the same thing
This indirect tax levied by the good.
natured, patient. and long-suffering pub.
lie Is general
What They Did in New York.
People in New York City grew tired
Of paying into the pockets Of hotel
owners half a million dollars a year in
taxes for the use Of their own streets,
so they abolished hotel private ownership
in city pavements and at the same time
lowered their taXicab rates
The public cab stands IN Washington
are few, and most of them are placed
where little traffic comes. People on the
streets looking for a cab 60 to the hotel
cab stand. the private stand which is
rented out The cab company on this
stand pays 20 per cent of its earnings to
the hotel management. This tribute goes
TO pay the protection of the hotel guests.
The resident of Washington. the man
or woman who does not live in a hotel,
and, therefore, is not protected" by
thoughtful hotel arrangements, pays.
when he or she takes a cab. for a
one-mile haul on the following basis:
Thirty cents for the cost of operation
of one mile, the estimate of the taxi
cab companies. He also pays 40 cents
more. This is apparently a profit to
the cab companies OF 1873 la per cent,
winch would make the tdxlcdD business
in Washington one Of the most profit
able in the world.
This apparent profit Of l33 1-3 per cent
is partly factored as follows: Twenty
per cent on fares hauled from hotel (pri-
vate) cab stands is paid to the hotels for
their worry in keeping the streets there.
This tribute is a heavy item in the cost
Of cab hire. Then. thirty cents. or nearly
thirty cents, is charged against the one
mile haul to cover the expense Of an I'M
usually high percentage of dead mileage,
which is something like one mile in two:
again. according to the taxicab COM
panies. Finally, the patron hauled one
mile pays the company regular profits on
two miles. In short, when you ride one
mile in a Washington taxicab you pay
operating expenses for two miles, a profit
to the company for two miles, a high
percentage in the protection" of hotel
guests, and in return for all this YOU
are hauled one mile. Both officials of
the hotels and the taxicab companies
unite in claiming that you have no cause
for complaint, and a high official OF one
of the companies has stated that the
companies don't want the city trade any,
way, and will go out of business IL the
public dare TO inquire into their rates.