Evening star., 1938-06-17
TAXI INSURANCE
MAYOVERBURDEN
D. c. Commission
EIgen Thinks More Help May
Be Needed to Administer
Newly Passed Law.
SUPERVISION OF FUNDS
HELD TREMENDOUS TASK
Utilities Unit Also Would Be
Forced to Check Company
Books as Preliminary.

BACKGROUND
Efforts to compel taricabs oper-
at'ng in the District to carry lnbh-
tty insurance began in 1929, uhen
the Public Utilities Commission
issued an order to that effect. but
the District Court held the commits
sion had exceeded its aut1,ority
Since then insurance bills yere in
1roduced in each Congress, but
jailed of final passage until last
night.
PUBLIC Utilities Commission officials
expressed fear today that their present
stan might not be adequate to carry
out the provisions of the Districts
taxicab liability insurance bill. unex-
pectedly rescued from almost certain
legislative death in the congressional
adjournment rush last night.
Not yet completely recovered from
the surprising, but pleasant news that
the measure had at last been enacted
into law, after campaign of many
years, Riley E. Elgen, commission
chairman. said, however, that the
regulations required by the new leeis-
latlon will be promulgated as soon
as possible.
AS far as know" Mr.. Elgen said.
no provision was made by Congress
for additional employees. 1 have not
seen the Dill yet, but from what I
know about it, the new law will mean
a tremendous amount of work.
We have been after Congress for
years for a more adequate personnel
and don't know whether the present
stan could carry the new burden
l suppose. though, that we will have
10 get along with our present staff"
Blanket Bond Permitted.
Mr.. Elgen said he understood that
the measure as finally enacted con-
talns the House provision permitting
$4,000 blanket bond or policy to
cover fleets of taxicabs.
Ihere are II or 18 taxicab associ-
atlons IN the District today " he ex-
p.alned. If the Public Utilities Com
mission, as administrator of the act.
Is required to administer II or Is of
tnese $4,000 trust funds it will mean
tremendous amount of work. The
commission would be required to keep
check on each individual cab"
In addition, Mr.. Elgen said, it would
oe necessary for the commission to
examine the books of each of these
taxicab companies before such trust
1unds' could be established, and this
would mean additional work.
Independents Feared Handicapped
Passage of the bill brought from
many officials of taxicab companies
the opinion that many of the inde-
pendent drivers will be forced from
the street, though fleets of the ma jor
companies may become larger to offset
this trend
Most of the officials seemed salts
neo with the new legislation. A few,
however, appeared displeased.
In the opinion of Don C. Tudor.
manager of the District Cab Co.. the
insurance will mean an increase in
our fleet. Though I haven't learned
just what is included in the bill as
passed, my men always have been in
favor of insurance"
An unfair hardship will be thrown
on smaller companies, Mcclellan L.
Maynugh, manager of the Washington
CAB Association, commented. "Inde-
pendent drivers will be forced out alto
eether," he said.
Earl Klein, president of the City Cab
Association, commented: The insur-
ance bilrs passage is highly satisfactory
To every member of our association.
cont know just what effect it will have
on the number of cabs we operate, but
hardly think it will mean any de-
crease"
Ine Arrow company's vice president