Evening star., 1938-04-22
HIGHER CAB FARE
QUESTION RAISED
BY LIABILITY BILL
Prospect of Early Passage
Also Stirs Speculation
on Job Distress.
UTILITIES BODY SEES
NO INCREASE NEEDED
Heads Of Associations Disagree on
Effect of Law on Reducing
Number of Taxis.

Prospects Of heavy reduction in the
number Of taxis operated in the Dis
trict. and the question Of any need
for an increase in the zone rates, were
debated today in utility circles as the
compulsory taxicab liability insurance
bill awaited final action. probably early
next week, by Senate and House.
Final agreement on the terms Of the
measure was reported to the Senate
late yesterday by Senator Tydings,
Democrat, of Maryland, chairman Of
Palmisano of the House District Com
mittee announced today he would seek
approval early next week of the con-
ference report.
Adoption of the final draft of the
bill. which would require q separate
insurance policy for each cab. and
disallow blanket bonds or sinking funds
for associations of cabs, was conf
IDENTIFY expected.
Elgen Pleased.
Warm approval of the conference re-
port came from Riley E. Elgen. chair
man. and Richmond B. Keech. vice
chairman, Of the Public Utilities Com
mission, which has been urging adop-
ton of such legislation since 1929.
They questioned the need of any in
crease in zone fares by reason of the
compulsory liability insurance, now in
prospect.
They voiced hope that Congress
would now proceed to pass another
pending bill which would empower the
commission to reduce the number of
taxicabs to suggested total of $500,
over period of years, as a means of
relieving traffic congestion and to bene-
mt taxi drivers remaining in the field.
Spokesmen for taxicab associati tions,
however, were in sharp disagreement
on the insurance plan. the need for a
boost in zone rates and the question
OF whether adoption Of compulsory LA
bility insurance legislation would
cause unemployment for many taxi
drivers.
Secs No Job Distress.
Earl I. Klein, president of the City
Cab Association, insisted emphati-
cally that adoption OF the liability
insurance plan would not cause any
unemployment distress. He asserted
that while passage of the bill likely
would reduce the number Of taxi driv-
ers. the most of those forced out of
the field would be Government clerks
and others having regular jobs who
now drive cabs as an extra activity
In fact" he said. adoption of this
plan will help the legitimate taxicab
driver, because it should take off the
streets hundreds of the part-time
workers, and. therefore, benefit the
regular driver who depends on his
taxi business for livelihood. I be-
lieve also that adoption of this insur-
ance requirement will inure to the
benefit of the public. which should be
given this protection"
He said mild" increase in zone
fares might" be found desirable, but
he doubted the need of it.
M. L. Mayhugh, manager of the
Washington Cab Co., said he did not
believe it would be necessary to in
crease zone rates now. but that this
might be found desirable later. He
predicted passage of the liability in
surance bill would mean a reduction
of the number of taxicab drivers by
some 2.500, and for this reason ques-
toned the need of a separate bill to
authorize limitation of the number of
cabs.
individual Policy Criticized.
On the other hand, Harry Davis of
the Diamond Tancab Association de-
clared that something would have
to be done" about the taxi rates
when liability insurance became man.
datory. An advocate of the proposal
that companies or associations be
permitted to post blanket bonds or
sinking fund reserves to cover dam
age claims, Mr.. Davis protested that
the pending individual insurance pol
Icy plan would force associations to
take out two kinds of policies one fol
the $4,000 to $4,000 policy limits
and second, or reinsurance, to cover
any possible judgments exceeding the
$4,000 compulsory liability insurance
Again Leon Brill, jr., manager fol
the Bell Cabs, insisted that adoption
of the revised bill would cause tn,
loss Of jobs for some 5000 tax
drivers, and he declared the cost O
the insurance probably would require
An increase Of 10 cents in the taxi zon,
rates.
Lewis Glassman, an official of tn,
General Finance Co., voiced higl
praise Of the conference agreement
declaring its approval would prove o
great benefit to the taxi industry a
well as to the general public.
Indications were that final figure
had not been obtained by the tax
operators on the cost Of insuranc
policies. There has been talk that tn
cost would run around 81 a day pc
taxi, but members Of the Public Util
ities Commission said they believe
this might be too high. Some taxi in
terests said they thought it might b
higher.
Commission Chairman Elgen sal
taxi drivers might save some Of tn
cost by organizing their own com
panies for insurance, and that thl
suggestion was being considered
some quarters.
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