The Washington times., 1929-08-22
P. j. c. To ACT
ON TAX|CAB
INSURANCE

Assured that its powers are
broad and strong enough to
force taxicab operators to post
liability bonds before securing
licenses, the Public Utilities
Commission today will de-
termine what course of action
it will pursue to afford the
public protection against ac-
cident liability.
Acting Corporation Counsel Fran
els H. Stephens assured the Commis-
sion that 1t has ample authority
to promulgate a regulation requir'
ing taxicab drivers to produce proof
of their financial stability before
they may receive permits to operate.
Stephens handed down his opinion
In reply to request from the Com
mission as to the legality Of such
regulation. Earl v. Fisher, execu.
tive secretary of the Commission.
has proposed adoption OF the mea-
sure for the protection of passengers
injured in taxicabs which are oper.
ated on a "shoestring."
Control Already Proved
The District Supreme Court has
already proved the authority Of the
Public Utilities Commission to con-
troll the operation Of taxicabs. ste
phens pointed out. This control Is
fully applicable for the financial pro-
testion of taxicab passengers. Ste
phens asserted.
The power of the commission to
enforce the passenger protection
regulation was questioned on Lhs
grounds that the District Supreme
Court upheld Robert Harlan, a "ah
operator, in his refusal to obey 4
similar measure. Stephens pointed
out that the Harlan case did not
represent a true test of the
authority of the commission mas"
much as Harlan did not operate
a taxicab.
Livery Cab Driven,
Harlan. when arrested for vio'
lating' the regulation, was operating
an automobile with IL" license
tags. This placed his machine in
the livery class. Operators OF
livery vehicles are not permitted to
pick up passengers off the streets
as do taxicabs. The livery machines
do not have meters and the price
the passenger is to pay Is decided
before a trip is started.
The commission asked Stephens
for advice as to what extent 1t should
exercise it's powers in requiring the
bonding of taxicabs.. stephens re-
piled that the powers of the commits
sion are broad and suggested that It
use its own Judgment in deciding the
question.
Gen. Mason, M. Patrick, chairman
of the commission, said the proposed
regulation will be considered today
when the commission recesses after
the morning hearing of the fare case
The Diamond Taxicab Company is
preparing to fight any attempt on
the part of the commission to put
into effect an order requiring
liability insurance, according to
Attorney Edgar A. Smith, repre-
senting the company.
Others Back Plan
The Black and White and yellow
Taxicab companies are in favor OF
the plan.
Smith states that the company
has set aside a fund which will
amount to approximately $S5
year per cab for payment of claims,
in addition to revenues from the
Diamond Service Station and fines
assessed individual owners.
Under the present plan of incor-
poration the company is not liable
and as result may not be sued.
The Diamond Taxicab Company is
in effect a holding corporation for
the individual cab operators and
owners.
Smith and other company offic-
ials take the view that to force the
Independent operators to take out
liability insurance will prove a
hardship on the men and stated
that the company is, prepared to
combat any order the utilities com
mission may issue.