Evening star., 1944-01-20
S25Cab License
Sells for $500
Under freeze
ODT Order Sends
Toxi Sole Price
Up to $1,000


being sold by the holders for from
$500 to $400 in rapidly rising mar
ket as a result of the Office of De-
fense Transportation order freezing
the number Of cabs at the Septem-
Der /, 1912, figure, it was learned
today.
Offered in combination with used
1910 or l94l cabs, on which there
are no ceilings, cabs which cost about
$500 new are reported to have
brought between 81 500 and $4,000 in
recent weeks. The few available are
being offered, together with their
licenses, by men being called into
service, it was said
Investigation of the situation re.
vealed that the ODT order is pre-
venting the District from issuing
licenses to honorably discharged
and wounded war veterans who
wish to get back into the business.
White Collar Drivers.
In addition, it was learned that
80 per cent Of the present cabs are
oelng operated in rush hours and
at night by white-collar workers
seeking to supplement frozen sala-
rles. 1t was also reported that mora
tnan 100 Government workers who
TOOK out cab licenses to evade gaso-
line restrictions were able to resell
tnem In the frozen license market
at substantial profits.
Ihls gold mine in license is made
possible by the fact that there is no
limitation on the transfer of license,
IN the District. according to James
II. Flanagan, chairman of the Public
Utilities Commission. He said the
commission has only review powers
over the licenses. They are issued
by the District Commissioners, hs
asserted.
In Baltimore, where the number
OF cabs is frozen at 1000. no such
situation can exist, according to the
Maryland Public Service Commission
Permits are issued without cost.
ihey must be surrendered when the
holder retires from the business. il
was said. The Motor Vehicles Com
mission is then notified and the
Incense plates are picked up. In
some instances, it was asserted
drafted men arrange for reissuance
OF their permits to their wives. This
is zone In order to hold them
through the war period.
Must Be Renewed April 1.
commissioner Flanagan said that,
since each District license is trans.
ierable the only regulation possible
unoer the character examination
OF the hack inspectors Office All
presently outstanding licenses must
oe renewed on April l. he said. II,
og any chance, any are surrendered.
preference will be given ex-service-
men IN re-issuing them, he asserted
he expressed doubt that any would
oe available under existing condi-
tions.
according to 1t. Joseph Harring-
ION, inspector of public vehicles. the
pull market in District cab licenses
is responsible for the fact that. ac-
cordlng to his estimates, 80 per cent
OF cab drivers who have been rent
ing their cabs are now buying them.
one rental cab company is now en-
gagged in selling its entire 16O cabs
TO Its drivers, he said. Character
checks are not required in this case.
ne continued, since the drivers al
ready have qualified.
| Government workers who own cab
licenses were uncovered in co-opera-
ton with ODT and Office of Price
Administration investigators, 1t.
Harrington said. The probe cams
after complaints that the device of
procuring cab license and painting
family vehicles as cabs was permit
ting resourceful car owners to get
all the gas and do all the driving
they pleased. These cabs" were dis
covered parked for eight and nine
hour periods outside Government
buildings where their owners worked.
Lit. Harrington asserted.
Sales Prices Spiral.
Such licenses could be obtained
only before the license freeze" LII
Harrington said BY the time tbs
checkup resulted in the owners ex-
cess gas being shut off the value OF
the SIS licenses had spiralled up-
ward and they were able to resell
them for from $500 to s4OO.
According to Samuel Powell. sec.
retary-treasurer of the Diamond
Cab Co., a cab-owners' association
the OPA-approved monthly mark.
ups on the few new cars still avail.
able, has brought the cost of the
average low-priced car common to
the cab business to approximately
81. 400.
He said that few cabs and IL.
censes are available at any price,
The sellers are chiefly drafted men
he asserted. The high prices which
cab-and-license combinations are
bringing is giving these men "a
break" he continued. He said the
sales enable them to leave extra