Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-29
RENEWAL Of TAXI
RATE WAR IS SEEN
IN TRUCE FAILURE
Diamond Operators Refuse to
Establish Minimum Stand
ard Zone Fare.
UTILITIES COMMISSION
MAY ORDER INQUIRY
Black & White and Yellow Cars
to Remain on Higher Basis
as at Present.

Washington's taxicab rate war be-
lieved to have been amicably settled at
conference between the taxi operators
and Richmond B. Keech. peoples coun-
sci, before the Public Utilities Commits.
sion. gave indications today Of breaking
out anew
Intervention by the utilities commits
sion now IS contemplated, the result of
which probably will be an attempt to
stabilize rates by fixing maximum and
minimum schedule of tariffs. The COM
mission at its meeting Monday is ex-
pected to issue formal notice OF a gen.
eral taxicab rate hearing, at which
every taxicab owner in the District will
be invited to attend. The date for the
hearing, under the law, cannot be fixed
until 10 days after the notice is issued.
Big Companies Out.
large number of the taxi men got
together at peace conference yesterday
afternoon with Mr.. Keech, and after q
two-hour discussion agreed to abandon
the rate war Saturday and adhere to
minimum and maximum schedule Of
fares in standard zones. But the larg-
est taxi companies-the Diamond,
Black & White and Yellow-did not
enter into this agreement and their fail
ure to do so is expected to bring renewal
of hostilities.
Harry c. Davis. general manager Of
the $50 Diamond cabs, attended the
conference. but declined to commit his
company to anything, pointing out that
board Of directors determines the
policies Of his concern. The directors
do not meet until Monday, two days
after the pledged cessation Of hostilities
on the part of most of the warning
taxi operators, but indications are that
Diamond cabs will continue to operate
on the present 20-cent fiat rate zone
fare, which Is S cents under the maxi
mum set by the competitors.
Want Standard Zones.
The Diamond operators, 1t was said,
are in no frame of mind at this time
to talk peace, particularly because the
peace overtures originated with the
firms which started the price-cutting
war.
The Black & White and Yellow cabs
will remain on their present 35-60-85-
cent zone rates. Most of the other
companies which engaged in the
frenzied price cutting agreed to adopt
25-50-75 or 35-60-85 cent schedules.
the city proper" classification, and
operate in standard zones. This was
done at the suggestion of Mr.. KeecfI,
who pointed out that the so-called city
proper zone is misleading and confus-
ing principally to strangers.
Diamonds Hold Balance.
The Protex-U Co., which has en-
gagged actively in the price-cutting war,
was another concern which failed to
enter into the agreement. The pri-
vately owned cabs operating anywhere
in the District for 10 cents also failed
to agree to the plan. but they are not
taken seriously as competitors by the
taxi men because of their limited num-
Der.
The Diamonds, however. hold in
their power. it was said, enough influ-
ence to either end or continue the
price war. And unless the Diamonds
increase their rates from 20 to 25 cents
for the first zone. it was explained, the
companies which entered into the
agreement may be forced by compe-
tition to adopt the 20-cent rate.
Brides Opinion Awaited.
Whatever action the Utilities Com
mission may take permanently to solve
the taxi troubles will depend on a legal
opinion which it has requested Of Cor
poration Counsel William w. Bride, its
general counsel.
The commission appears to be some
what in doubt as to its authority to
LdAlCdDS anu COIllTOl GAA1 IhtcS.
Mr.. Brides opinion is expected to clari-
fly this situation and pave the way for
definite action.
Fair Rate Is Problem.
The commission. however. realizes 1t
has a puzzling problem to solve in ad-
justing the taxi situation. 1t does not
want to do anything that might lead to
higher taxi rates, but it does want to
take steps that will put an end to the
recurring taxi rate wars.
The biggest question will be the TX
ing Of fair and reasonable rates for the
two different classes of taXicabs operat-
ing in Washington. There Is one class
of cabs-the heavy vehicles equipped
for standard taxi service-which cost
more to operate, it was pointed out.
than the light passenger vehicles which
have been generally adopted for the
fiat rate service. Consequently, this
factor will have to be given serious
consideration in any plan the commits
sion may draw up, and two schedules Of
rates appear to be inevitable.