Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-05-26
CHEAP CABS CAUSE
100000 CAR LOSS
Traction Companies Report
Steady Drop in Passengers
Since February |.

Figures filed with the Public Utui-
ties Commission since February /, when
the 35-cent fiat rate taxicabs were put
on the streets of Washington, show a
loss Of approximately 100000 revenue
passengers on the books Of the two
main traction companies for the three
months to April 80, indicating a COM
petition which traction officials admit
is alarming.
In February the traction companies
lost 175,000 passengers. The loss in
March jumped to 100000, due part
ly to the lateness of Easter. From
April / to April II, the Washington
Railway 81 Electric Co. reported a loss
Of 3s6,673 passengers. with figures
from the Capital Traction Co. for this
period not yet reported, 1t was indi-
Gated at the Public Utilities Commits
sion, the total losses of the two COM
panies would be brought to about 5l8,-
600 passengers in April.
Translated into annual figures, trac.
ton company officials say the loss In
passengers will be around 10000, 900 for
the year, out Of a combined traffic Of
approximately 10000, 900 revenue pas
Sengers for the two companies. This
would be about per cent.
Annual Losses Increase.
Local traction companies, as well as
car systems throughout the country,
have suffered q steady decline In the
number Of passengers carried in recent
years, attributed chiefly to the growing
use OF automobiles. It was pointed out,
however, that the average loss of pas
sengers in a year has been about o.
000, 900 and this figure has been steadily
decreasing until the advent of the 35-
cent fiat rate taxicabS.
The washington Railway 81 Electric
Co. at its stockholders meeting last year
reported loss Of about 100 goo passen-
gers out Of $4,000 000, or about one
NTH OF l per cent. Contrasting with
this f1gure, the loss In revenue passen-
gers in March, with taxicab competi-
ton at its height, was more than 8
per cent. In April it was about 6 per
cent
These figures are considered signifi-
cant by the Public Utilities Commits
sion as indicating their future use by
the two street car companies in arguing
the necessity of a 10-cent face, which
they are now seeking in the courts on
an appeal from the adverse decision of
the commission.
Competition Lasting.
When the 35-cent fiat-rate cabs were
first placed in operation, public utility
attaches, as well as traction company
officials, predicted the competition would
not last long, because it would be found
Improbable to the cab companies. This
prediction, however, Is not borne out by
the figures. With more cabs entering
the field, steady increase in business
Is expected. The loss In car fares of
approximately 100000 in April, as COM
pared with It's, 900 in February, the cab
men believe, represents a fair estimate
OF the increased business that may be
expected.
Observers in the Public Utilities Com
mission and elsewhere also expressed the
opinion today that the loss from taxicab
competition will increase considerably
If street car fares go up to 10 cents.
They point out that four passengers,
who can ride in a cab for 35 cents.
would have to pay 40 cents on the street
cars.
One of the cab officials declared today
that the cab owners stand ready to
prove before the Public Utilities Com
mission or any other qualified board
when the time comes that the cab COM
panieS can continue to make money.
"First, we do a tremendous volume
OF business at small margin of profit"
he said. Our cabs are busy all the
time. Secondly, We pay no money for
hotel concessions or anything Of that
kind"