Evening star., 1933-02-06
TAXI LIABILITY INSURANCE
HELD MORE COSTLY THAN METERS
Operators Surprised That Some Zone-Sys-
tenn Proponents Favor Compulsory
Protection Measure.

(This is the second of series of
three articles on the tdrtcdb STUD
ton in Washington. The third
article wiU appear tomoroD)
Compulsory liability insurance for
taxicabs in Washington, now being con-
sidered by congressional subcommittee,
would put cab drivers to a consider
ably greater expense than the installa-
ton of meters, it was learned today.
The information that some of the
proponents of the present zone system
of taxicab operation apparently, favor
compulsory insurance was received with
surprise by taxicab operators, who
pointed out that one OF the principal
arguments of those opposing the meter
system has been that its inauguration
would place heavy additional expense
upon the drivers.
Insurance Costs S365.
New meters can be bought for ap-
i proximately SIPS, and good second
hand ones for as low as S35. Accord
ing to local insurance companies, how
ever, the rate in Washington for taxi
cab liability policies Is $270 for public
liability and sos for property damage.
The public liability plan pays maxi
| MUM Oh So,UuU 1Ol INJURY OF OedLQ OF
one person and $4,000 for the injury
or death of more than one person in
any one accident. They said 1t would
be impossible to secure any liability
policy which would afford adequate
protection for $28 a year. This figure
had been published as representing the
amount some members of Congress be-
lieved a liability policy for taxicabs
would COST
1t was said today that compulsory
| insurance had been considered by the
House subcommittee handling the Dis
trict appropriation bill and that pro-
posal for legislation requiring insurance
Of this nature would be placed before
tee this week.
Zone System Cheaper.
If the amendment proposed by Repre-
sentative Blanton, of Texas, to prevent
the Public Utilities Commission from
using any funds appropriated by Con-
gress in enforcing its order requiring
meters on taXicabS comes up before
the House Appropriations Committee,
the argument will be made that the
public can ride more cheaply under
the zone system.
| This is true, and will continue to be
true if the taxicab industry can stand
the gaff." Under the existing rates
| 1t is possible to ride seven miles in
taxicab for 20 cents. Under the pro-
posed meter system such trip would
! cost 81.
| Obviously, no taxicab can operate
proftably on basis of seven miles for
20 cents, but this, of course. Is an ex-
treme case.
The testimony at the various hear
ings on the taxicab question has been
that the average trip is about two miles.
This gives the driver about 10 cents
per passenger mile, but does not take
into consideration the miles lost in
cruising for fares and in returning from
trips. which is estimated at from 20
to 40 per cent Of the total mileage.
Depression Is Blamed.
Peoples Counsel Richmond B. Keech
believes the economic situation has
played an important part in bringing
the taxicab industry to its present
status, pointing out that the number
of persons who could afford to use cabs
under the old rates has substantially
decreased and that the inability of
many to exc out an existence in any
other line of endeavor has resulted in
persons from all walks of life turning
to the taxi field as last resort.
As q result, the taxicab companies,
he says, found it necessary to attract
new type Of rider and did this by
reducing their price and fixing 1t at
a definite sum. This was accomplished
by the use of smaller cabs with less
operating cost, increasing the number
of cabs on the street and the inaugura-
tion of the zone system.
- Believing that three integral parts
alrA %11 %1xr f,,l, \,
public, the driver and the owner of
the cab, Mr.. Keech recently made an
investigation to determine whether any
thing could be done to remedy the pres
ent situation. This investigation, he
said, disclosed that the existing rate,
with the extensive first zone, was not
deemed adequate. He reached this con-
clusion after talking to "innumerable
drivers, those operating independently,
those operating as members of asso-
Citations, those employed by companies
and cab owners"
Slight Increase Favored.
1T would appear to be the consensus
Of ALL" he said, that a slight raise in
rate, possibly Is cents, with q reason
able curtailment of the existing center
or first zone, would substantially assist.
1t was the further belief that such
raise and curtailment in size of the first
zone would not result in a great num-
Der of persons leaving the taxi field for
other methods of transportation. 1t
further appeared to be the consensus of
the drivers of the cabs, as we'll as the
owners, that it would be highly desir-
able to establish uniform zones and
boundaries.
1T is my belief that the commission
has the authority to establish uniform
zones and boundaries, to fix the rates
to be charged for each zone and to re-
quire all Of the operators to comply with
them, subject to penalty for failure to
do SO.
THE adoption Of such a course by
the commission could not be construed
as departure from its original posi-
ton of favoring meter operation. 1t is
my belief that such procedure could
not fail to win the applause of all con-
| ccrned, and would remove from the
minds of many the idea that the COM
mission has not by affirmative action
given the zone system Of operation a
fair test by the Inauguration of fixed,
reasonable zones and uniform charges
/ for such zones.
Authority Is Doubled.
"If those drivers who desired to do
SO were permitted to operate on
meter basis, the rate to be prescribed
| by the Commission, it would also be
possible to determine the public's pref
erence as to meter or zone operation,
assuming the rate which the Commits
sion would countenance for meter
! operation would be comparable to the
! amount fixed for each zone"
There seems to be some doubt, how
ever, concerning the authority of the
Commission to fix zone rates at this
time, or to punish those who fail to
comply with them.
William A. Roberts, assistant corpora
ton counsel. who has represented the
Public Utilities Commission in the taxi
cab dispute, is Of the opinion that any
ruling by the Commission increasing
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