Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-10-03
35-CENT TAX|CABS
SHOW FAT PROFITS
Companies Inform Peoples
Counsel Owners Get 7 Per
Cent Returns.

Although pictured as being unre-
munerative and on the verge of bank
ruptcy, Washington's 35-cent taxicab
industry in reality is a thriving, profit
able business venture, judging from re-
ports received today by Richmond 3.
Keech, peoples counsel before the Pub
lice Utilities Commission, from two Of
the large fiat rate companies.
These reports, which provide the first
insight into the financial condition of
the 35-cent companies. reveal that the
drivers are earning money, and that the
owners of the cabs are reaping per
cent return on their investment, and in
addition are setting aside reserves for
depreciation and liability and property
damage, and still have an excess to i'm
prove working conditions for the en-
ployes.
Keech sought the information from
the companies in connection with a
survey he is making into the taxicab
situation. Primarily he was interested
in two phases of the 35-cent cab opera
tions-whether the owners are financial
ly successful and whether the drivers
are making living wage.
Data Revelation.
The data contained in the reports
were a revelation to Keech, particularly
in view of the belief of attaches OF the
Public Utilities Commission and others
that the 35-cent cab service was I'M
profitable On the basis of this infor
1inE he
will not pass out of existence, as has
been predicted, but will remain an i'm
portant factor in public transportation
in the District.
The two large 35-cent companies
which submitted the reports employ
200 drivers, who have earned, since the
introduction of the cheap fiat rate serv
ice in February, an average OF $5.35
day In February and March, two brisk
months in taxicab operations, the earn
ings of the drivers ranged from $45 to
$50 q week.
The drivers, according to the reports,
work IL hours a day and six days
week. The cabs are rented to them on
the basis of $3.50 day il the distance
travelled does not exceed 100 miles. The
rental increases proportionately above
the 100-mile maximum.
$1s,5OO Net Income.
The companies which own the cabs,
their reports showed, have done a
profitable business. The net income
was given for only three months-May,
June and July-but in this period the
total for the two companies amounted
to $4,000. This was distributed as fol-
lows: May, $1,000; June, $4,000, and
July, $4,000. These figures represent
the profits after the deduction of all
overhead for gas, oil, garage, repairs
and other incidentalS, as we'll as the
per cent return on the investment.
With the excess profits, the compa-
MES. Keech was told, are planning to
establish barber shop and lunch room
for the employees. Hair cutting, shaw
ing and bootblack service will be free,
while food will be sold in the restau-
rant at cost. Negotiations also are
under way, it was said, to purchase
uniforms for the drivers, which, with
the free barber service, will keep them
in neat and trim appearance.
Compete With Street Cars.
The 35-cent companies already have
made serious inroads into the revenue
passengers of the street car companies
and If they continue to operate on a
profitable basis, as is shown in the re-
ports received by Keech, he believes the
operations may expand and confront
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