Evening star., 1938-07-28
PARMALEE PLANS
0BR|NC 5|)OCABS
TO D. c. STREETS
Will Enter Field Shortly
After Insurance Rule
Is Effective.
SEES BIG ADVANTAGE
OVER COMPETITION
Holder of Yellow Franchise Saws
$4,000 Sinking Fund Is
Easy for Them

The Parmalee interests of New York
City, operators of Yellow Cabs in
several OF the country's largest cities,
plan to put approximately 500 taxi
cabs into service here within the next
two months, C. B. Ryan, who holds
the local Yellow Cab franchise, an
nounced today.
Mr.. Ryan said the Parmalee inter-
ests would enter the field here shortly
after the new taxicab liability insur-
ance ruling goes into effect on Au-
gust 20. He said company officials
1elt they would have a distinct ad-
vantage over competition, since "it
wouldn't be anything at all to them
to establish sinking fund Of SIS, 1000
in lieu of insurance.
The insurance rates prescribed by
Insurance Supt. j. Balch Moor and
the Public Utilities Commission fixed
premiums at 1882 per year per cab
operating only in the District and $27O
per year per cab operating within and
beyond the boundaries of the District.
The regulations permit drivers or
association members to establish sink
ing funds instead of taking out in
surance policies on a graduated scale,
ranging from $1,000 to s75,OO0-pro-
vided they can raise such large sums.
Sees Profit in Field.
Mr.. Ryan, who formerly managed
the Yellow Cab business for Brown
Bros. here before that concern quit
operation in 1888. is at present oper-
ating about 20 cabs under the Yellow
franchise. Brown Bros. at one time
operated about 300 Yellows, he said.
Washington is the best taxicab town
in the country" Mr. Ryan said. THE
Parmalee interests feel like they will
be able to make money here"
Explaining the method Of drivers
renting the cabs at present, Mr.. Ryan
said half of them don't pay for the
period they use the cabs. But this new
insurance ruling will force them to pay,
and Parmalee feels it can enter the
field with profit under such circum-
stances"
He said Parmalee now operates In
New York, Chicago. Milwaukee, Pitts
burgh and other large cities.
Problem Confronts Drivers.
Meanwhile, cab association officials
were laying plans for putting the in
surance regulations into effect in their
organizations. Several were con-
vlnced a problem confronted the
drivers unless some remedial steps
were taken.
Dante Gentilucci, manager of the
American Cab Association, believed A
5-cent increase in fare would solve
the problem partially. He believed A
return to meter rates would be better
Tor the riding public but doubted that
such fares would be brought back
here.
r. w. Martin, vice president OF the
District Cab Co.. thought the insur-
ance rates of $252 a year per cab
Tor operators only in the District and
S21O year per cab for service here
and beyond District boundaries. too
nlgh. He felt the rates should be
brought down to about SIS monthly.
A belief that the drivers could not
make living unless the number of
CABS were reduced was expressed by
Harry Davis, president Of the Inde-
pendent Taxi Owners Association
operators Of the citys largest fleet of
CABS. He thought, however, that the
new insurance rates would force q
reduction in number.