Evening star., 1938-06-18
BAN ON NEW CAB
UNITS LIFTED FOR
INSURANCE BONDS
Utilities Commission voids
Prior Order in View of
y Policy Law Terms.
ACT BEING STUDIED
TO SOLVE PROBLEMS
Burden on Staff Is Feared.
Operators See Fare Boost
Justified by Cost.

Independent taxicab drivers in the
District will be permitted to form new
associations. If they desire. to take
advantage of the provision Of the new
Taxicab Liability Insurance Act, pei
mitting a $4,000 blanket bond or
policy to cover fleets of taxicabs.
This was the effect of q decision
announced late yesterday by the
Public Utilities Commission. revoking
an order issued in July, 1887 pro-
hibiting the formation of new taxicab
companies.
The commission took this action.
after deciding it did not wish to
be placed in the position of telling
the independent drivers that they
would have to join one of the 10 exist
ing taxicab companies to receive the
benefits Of the blanket policy pro-
visions. Commission oficials said
they felt the new law would result
In an inequality unless this avenue
were opened to the independents.
At the same time, commission off,
cials said they could not predict
whether higher fares would result
from the new law, but pointed out
that a number Of spokesmen for the
taxicab industry have indicated that
the rates would not be increased.
Richmond B. Keech. commission
vice chairman, said there are no pro-
posals for higher fares pending and
that the commission would not volun-
tarjlV iy,tn tho e,,hinok
Study Terms Of Act.
Riley E. Elgen. commission chair
man, said the utilities body Is study
ing the terms of the act and tackling
the problems as they come. A copy
OF the measure was turned over to
Lloyd B. Harrison, commission counsel,
for determination as to what regula-
tions. If any, will be necessary to
carry out the acts provisions.
One of the chief concerns Of the
commission is whether its present
staff will be able to carry the addi-
tional burden of administering the
liability insurance law, since Congress
did not vote funds for any additional
employees. He pointed out that If the
commission finds that 1t will have to
administer Is or 20 of the $4,000
trust funds" 1t will mean a tre-
mendous increase in the volume of
work.
Meanwhile. spokesmen for the
services continued to give their views
on the new measure.
Harry c. Davis, general manager
of the Diamond Taxicab Owners AS
sociation, which includes virtually hals
OF the drivers in Washington, thanked
Congress for being fair. He referred
especially to the inclusion Of the House
provision permitting the $4,000
blanket bond or policy.
He further said critics of the taxi
cab companies. the newspapers in
particular, had not been fair in SAYING
the associations provided no protec-
ton for the public.
Mr.. Davis said he was gratified taxi
cab service in Washington had been
put on par with other public utilities.
He favored blanket bonds. saying they
would offer more to the public.
j. H. Roger of the Premier Taxicab
Association said he felt the insurance
law would tend to stabilize the taxicab
industry in Washington by removing
irresponsible drivers from the streets,
but indicated a rate increase might
ensue because of the additional cost.
Sees Increase Justified.
A. w. Leeman of the Consolidated
Association asserted he thought taxi
cab drivers were entitled to . rate
increase. He said they were already
burdened with the business privilege
tax and that If, as estimated by some,
the insurance cost from IS cents to 81
a day. "they would hardly have enough
money left for cigarettes" He said
opinion was divided in his association
as to the merits of the law, but said
it had been pulling for a bond bill''
for some time.
Il think Congress should have lin
tied the number of cabs in operation,
however, before they thought about
Insurance." he said There are too
many cabs to make 60 Of things
under present conditions"
Mr.. Leeman said he favored posting
Of liability bond over purchase of in
surance policies because the latter
would transfer some of the control Of
the associations to private insurance
firms.