Evening star., 1939-02-10
Taxi Financing
Control Move
Considered
Utilities Commission
To Look Into Tieups
Mentioned at Heurinq

Officials of the Public Utilities
Commission indicated today they
may ask Congress for power to
regulate financing in the taxicab
industry as result of disclosures
at hearings on proposed taxi rate
increases
The point was raised by one witt
ness, who declared many taxi driv-
ers were unable to express their
own opinion freely because of an
aftillation of some taxi associations
with liability insurance companies
and with concerns financing sale
OF cabs to the drivers on a weekly
payment plan.
A mass of conflicting testimony
regarding four proposed new sched-
ules OF rates and changes in taxi
zones was taken during the two
day session, which ended late yes
terday. The commission allowed
two weeks for filing of briefs and
postponed decision for at least that
period.
To Study Tieups.
Riley E. Elgen, commission chair
man, announced today the commits
sion would give careful study to all
references in the record of the case
dealing with tieup between cab
association officials with cab finance
and liability insurance companies.
He explained the commission now
has no power to control these finan-
cial arrangements of the industry.
During the rate hearing William
NICK. Clayton, veteran chairman
of the Public Utilities Committee
of the Federation of Citizens AS
sociations, declared the commission
should be given power to regulate
the taxi industry as to financial
arrangements just as it has power
to exercise certain control over the
financing of other utilities.
A charge that the interrelation Of
cab associations, finance and in
surance companies has resulted in
"racketeering' was made yesterday
by Arthur S. Harder, president OF
the Globe Cab Association.
Charges Opinions Suppressed.
Mr.. Harder put into the record
names of several associations he
said were linked with specified
finance and insurance companies.
He added: When a driver signs
up with one of these outfits he can't
come before this commission or con-
gressional committees and give his
own views freely" suggesting that
pressure could be exerted by one
of the companies, especially in cases
in which the driver was week or
two behind in payments.
When Congress was considering
compulsory liability taxi insurance
I told them it woud create rack
eteering-and it has," he said.
During the afternoon session there
was extended discussion of modi-
fcation of plan offered originally
by A. S. LenoX calling for division
of the District into numerous more
or less square zones, under which
there would be charge of 20 cents
for the first zone and 10 cents for
each additional zone crossed. Glenn
Elliott of the Arrow Cab Associa-
ton championed a modification of
this plan. calling for the prepara-
ton and use in each cab of rate
chart which would specify the
charge to be made for 1000 or more
trips in which corners of the zones
were traversed. The purpose was
to reduce ineQuities between trips
of comparable distance.
Limitation Held Answer.
NJ. R. Stevens of the Washington
Cab Association said he believed
limitation of the number of licensed
cabs was the real answer to the
rate problem.
Two sides of inequities resulting
from zone fares were described for
the commission by j. Cipolari. He
told of carrying woman passenger
ON long 2O-cent trip and said she
paid her bill by giving him five pen
nies, one nickel and five empty
coca cola bottles. On the other
hand he said, some drivers add 10
cents to the taxi toll when fare
asks the name of a building the
cab is passing.