Evening star., 1935-05-17
Need for Financial Respon-
sibiIity Recognized Here,
House Told.
PRETTYMAN OBJECTS
TO INCREASED SCALE
Says Rates Outlined in Proposal
Would Cover Damage Cases
of Drivers.
BY JAMES E. CHINN.

Public Utilities Commission, told a
House Subcommittee today that
compulsory liability insurance for
taxicabs should not result in an in
crease in rates.
Testifying in support of the Quinn
bill to force all public vehicles to
carry liability insurance, Elgen de-
clared the need for financial respon-
sibility has been recognized by the
Court of Appeals of the District and
he believed the measure should be
enacted into law.
There is no doubt that the peo-
pie of Washington desire financial re-
sponsibility," said Elgen. THE civic
and trade bodies have unanimously
gone on record in favor of financial
responsibility. The former peoples
counsel. the present peoples counsel,
and other Government officials have,
likewise, approved such require
ment."
CORPORATION Counsel E. Barrett
Prettyman also Endorsed the bill, but
registered serious objection to a sug-
gestion that the liability scale as pro-
Vided in the measure be materially in
creased. He insisted that the rates
outlined in the measure would ade-
quately cover the vast majority of
damage cases.
A score or more taXicab owners and
operators, as we'll as District officials
and civic leaders jammed the commit
tee room waiting an opportunity 10
testify. Efforts will be made to COM
plete the hearings in time to make
report to the full District Committee
at its regular meeting Wednesday.
Says People Favor Idea.
Elgen, the first witness, told the
subcommittee the people of Wash
ington favor financial responsibility
for taxicabs and declared he knew OF
no reason why such insurance should
result in increased rates.
His statement follows:
"The commission has since 1890
asked Congress to vest it with au-
thority to require financial response
bility for taxicab operators as a con-
dition precedent to operation. This
request was made necessary by de-
cision of the Court of Appeals in the
case of Patrick VS.. Smith, so app. D.
C. 6, which held the commission
under existing law to be without au-
thority to require financial response
bility. The court, in substance, held
that the commission was an admin
istrative body and vested merely with
such power as specifically conferred.
"As result of this decision taxi
cab operators have not taken out in
surance or given bond with the re-
suit that many passengers Shd users
of the highways have been injured
through the negligent operators of
the cabs and have been without means
of recovery.
THE purpose of the legislation
sought is to see to it that where a
person is injured through the negli-
gent operation of common carriers
that recovery may be had. The Su-
preme Court of the United States, in
the case of Banton VS.. Packard, has
recognized the right to require finan-
cial responsibility on the part of taxi
cabs while not exacting it from other
common carriers, such as street cars
and bus operations. The reason for
this is that there is substantial prop
erty held by other carriers and under
one control, whereas in the case of
taxicabs there are many operators,
with little property in the individual.
1.-TWO Safety Valves"
"The theory under which financial
responsibility should be exacted is i'm
portant. 1t is necessary that super
vision be had over the insurance COM
panies, so as to insure payment of
judgments after payment of premiums
by the operators. The bill now before
you has two safety valves-one that
the financial condition of the insur-
ance company must first be approved
by the insurance commissioner. and,
secondly, that the Public Utilities
Commission has the right to reject ap-
proval even under these circumstances
where the practice of the insurance
company in handling claims is not
reasonable.
There is no doubt that the people
of the city desire financial RESPONSE
bility. The civic and trade bodies
have unanimously gone on record in
favor of financial responsibility. The
former peoples counsel, the present
peoples counsel and other Govern
ment officials have, likewise, approved
such a requirement.
1T has been suggested that if in
surance were required that rates would
probably be increased. This is doubt
full, for the reason that persons who
now refuse to ride because of the
lack Of financial responsibility on the
part of operators would probably
utilize these common carriers if they
knew recovery could be had in case
of accident.
THE need for financial RESPONSE
bility has been recognized by the Court
of Appeals of the District of Col,lm-
bia in several of its pronouncements.
For the reasons herein assigned It is
the view of the Public Utilities Com
mission that the measure should be
passed"
Clubwoman Heard.
Mrs. Margaret Hopkins Worrell,
president of the Columbia Heights
Citizens Association, followed Elgen
and indorsed the bill. She was on the
witness stand only two minutes.
Prettyman, the next witness, also
Endorsed the bill, explaining there are
two practical reasons for its enact
ment-the fact that the public has a
difficult recourse in recovering dam
ages for injuries received in taxicab
accident, and the need for increased
safety on the streets.
Prettyman also called attention to
the recent opinion Of Justice Hitz OF
the District Court of Appeals. COM
planning about the lack of compul-
sory liability insurance for taxicabs.
and introduced that decision in evi-
Eence.