Mr. BATES. That is fine; thank you. You may proceed.

Mr. HEISER. I am the president of the Federation of Business Men's Associations, an organization comprising 27 member bodies, with a total membership of 4,284 business firms located and conducting their business in the District of Columbia.

The position of the federation on the various tax demands of the District government was stated in some detail at the hearing on Tuesday, April 1, 1947.

I am here today to reiterate our opposition to a gas tax increase. The Federation of Business Men's Associations believes that gasoline and registration fees at the present rates, plus the $8,922,000 authorized for appropriation to the District government by the Federal Aid Highway Act of 1944, is more than adequate for a sound highway program during the years 1946-49.

We doubt seriously that the $34,000,000 available to the District Highway Department during the years 1946-49 can be spent because of the known shortages of labor, equipment, and material.

The highway director himself has recognized these difficulties, and is aware that construction plans may be delayed because of the inflationary and out-of-line costs.

We offer as a concrete example the very recent statement of the District Commissioners regarding the Dupont Circle underpass that the original figure to complete this project was $2,750,000, but due to the increased cost of material and labor, this figure was raised to $3,800,000, a net increase in cost of $1,050,000, which will have to, of course, be referred to the fiscal committee for further appropriation to either start or complete this project.

We see no justification for an unneeded tax increase. Requests for more tax revenue, when present taxe funds cannot be spent, certainly amounts to taxation without justification.

The trend today, as exemplified by the present Congress, is toward tax reduction and wise spending, not new or increased taxes for only the sake of spending.

An increase in the gasoline tax rate would affect the pocketbook of not only every Washington businessman, but every resident of the city of Washington.

This proposed tax would very seriously affect the Capital Transit Co., whose bus mileage for the present year is approximately 8,600,000 bus miles, and it is my understanding that this mileage during the coming fiscal year will be increased approximately 3,000,000 bus miles, which will mean, under the proposed new gas tax, an increase of $100,000 in the operational expenses of the Capital Transit Co. I might insert at this point, Mr. Chairman-and it is quite pertinent that one of the arguments now being used by the Capital Transit Co. before the Public Utilities Commission in support of a request for an increase in rates is that the gasoline tax increase will add materially to the company's operating expenses.

The approval of this 1-cent increase in gas tax per gallon would likewise mean the increase of operational expenses of the taxicab industry. In view of the fact that they have been paying over $1,000,000 a year taxes, and in view of the decreased patronage in the past year, it would work a severe hardship on this particular industry, as well as our dairies, food deliveries, drugs, and so forth.

I mean by that the trucks that carry the various commodities to the various merchants in the city. In the last analysis it must, of itself, be passed on to the small businessman and wage earners who are the first to feel the impact of higher motorist taxes.

The period ahead will be one where the businessman must watch every element of cost in business operations, and discriminatory or unnecessary taxes should have no place in the cost of operating his business.

For these reasons, gentlemen, we hope that you will refuse any and all demands to increase the gasoline-tax rates.

Mr. BATES. Now, Mr. Heiser, have you had a chance to examine this program of the Highway Department?

Mr. HEISER. We have, and to a certain extent-not in detail, Mr. Chairman. Our position is that while they are very commendable and we are in favor of all these improvements as advanced by the Highway Department, we feel that at the present time, due to the almost prohibitive costs of building, shortage of labor and material, these various items can be prolonged. I mean by that, put off.

Mr. BATES. Postponed.

Mr. HEISER. Until such time as the conditions in the country become more normal.

Mr. BATES. Thank you very much, Mr. Heiser.

Mr. HEISER. Thank you, sir.

Mr. BATES. Is Mr. Daniel Smith here?

STATEMENT OF C. G. HATHAWAY, PRESIDENT, VETERANS' CAB ASSOCIATION, WASHINGTON, D. C.

Mr. HATHAWAY. Mr. Smith, vice president of the Veterans' Cab Association, is not here, but I am C. G. Hathaway, president of the Veterans' Cab Association of Washington, D. C.

Mr. Chairman, I represent over 200 veteran cab drivers in Washington, D. C. We have a young organization, as you know. We are just out there starting out. We are striving for survival at the present time due to the fact that our men have paid inflationary prices for automobiles.

It goes back to the taxes that Mr. Horner brought out earlier today. Ninety-some-odd dollars that they have to pay in special taxes is what they are up against. Over 82 percent of our men still owe a substantial payment on their automobiles today, so they are the men who will be affected most by the tax increase on gasoline today.

The average cab driver out on the street today pays approximately $185 a year in special taxes. He has a registration fee of $24, and a Public Utility Commission license costs $25; he consumes approximately 3,000 gallons of gas a year, which means that he pays in special taxes somewhere in the neighborhood of $135 a year; which, as I said, would be $185 per year.

If this proposed tax goes into effect, the average cab driver will pay approximately $30 per year more than he is paying today, so they feel that an increase in gasoline today is not needed.

We feel that the Highway Department has adequate funds that have been contributed from the motor-vehicle taxes, and contributions made by the Federal Government for road aid. We feel that that is an adequate fund to carry on the program in a moderate form.

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Mr. BATES. I suppose your association has given some study to the possible savings, have they not, of the continuous operation in the District-without stopping, say, at every intersection-and good

roads?

Mr. HATHAWAY. Well, as I say, Mr. Chairman, we feel that there should be some adequate changes, but the streets here today are adequate for operation, normal operation. Of course, we feel, Mr. Chairman, that

Mr. BATES. You think they are in fairly good condition, generally speaking?

Mr. HATHAWAY. Yes, sir. It is their opinion that they are, and as I say, adequate conditions at the present time exist, and any increased taxes at this time would certainly affect them inasmuch as they are paying an inflationary price for automobiles, and they are paying inflation prices to be businessmen.

Mr. BATES. How many cab licenses are there in the District today? Mr. HATHAWAY. I would say somewhere in the neighborhood of 9,000, before the inspection last time; which, incidentally, has doubled itself since ODT lifted its regulations after the war, and it has decreased now due to the fact-I have talked to many fellows in our organization, and they were not able to pay the fifty-some-odd dollars to get their cabs back on the streets now, so it probably is in the neighborhood of 6,500 now.

Mr. BATES. Were there many of the boys who could not get their cabs back on the street because they could not pay $50?

Mr. HATHAWAY. That is exactly right.

Mr. BATES. How many less were registered, say, under the latest registration?

Mr. HATHAWAY. Well, as I said, approximately 3,000 cabs.
Mr. BATES. Three thousand.?

Mr. HATHAWAY. Yes, sir. I do not say that all of that is due to the fact that they cannot pay the levy, the tax; but I do say they were held up, and I have talked to a great many of the drivers in our association, and they have come to us and borrowed money in order to put the cabs on the street.

Mr. BATES. What seems to be the trouble that they cannot make both ends meet? What is the real answer to that?

Mr. HATHAWAY. Well, the real answer to it, Mr. Chairman, is that the fares are supposedly decreasing, and the cabs are increasing so, consequently, in view of the fact, as I say, that they paid the inflation prices for their automobile, and every time they turn around there is an additional tax, they feel that they cannot make it, Mr. Chairman. I only brought out the fact that they were not able to go through inspection, to pay the additional tax, to point out to you that they are living from hand to mouth.

Mr. BATES. There is no limitation as to the number of licenses which will be given out each year, is there? The sky is the limit; is that it? Mr. HATHAWAY. The sky is the limit in Washington, D. C. Mr. BATES. How does that compare with other communities?

Mr. HATHAWAY. We have more cabs in Washington, D. C., for the amount of people here than any other community or any other State in the United States.

Mr. BATES. Any other community?
Mr. HATHAWAY. That is right.

Mr. BATES. Has any effort been made to build up a case and present it to the Congress?

Mr. HATHAWAY. Yes, sir.

Mr. BATES. Limiting the number of taxi licenses?

Mr. HATHAWAY. Yes, sir.

Mr. BATES. It seems to me that where you get to the point that 3,000 men are forced to give up their cabs, it is a pretty serious situation. Mr. HATHAWAY. It is a pretty serious situation; it is in Congress now, and it has been for a period of years. Each time it comes up and they have never done anything about it. But it is in the Congress at the present time.

Mr. BATES. There is a bill at the present time in Congress to limit the cabs?

Mr. HATHAWAY. Yes, sir.

Mr. BATES. Thank you, Mr. Hathaway.

Mr. HATHAWAY. Yes, sir.

Mr. BATES. Mrs. Lavona Haynes.

STATEMENT OF LAVONA HAYNES, TAXICAB DRIVER,
WASHINGTON, D. C.

Mrs. HAYNES. Good morning, Mr. Chairman

Mr. BATES. We are very glad to see you.

Mrs. HAYNES. I own and operate my own cab. I am the mother of three youngsters and I do provide a living by operating my own cab. I feel like an increase in the tax will be a burden on me as well as a lot of other drivers. Of course, as you know, it will probably cost me another $30 a year-the increase in the tax-and I feel as if that would be at least four more days added to my expense per year, andwell, it is pretty big now, because I put in about 28 days a month at from 10 to 14 hours a day, and already I am paying in gasoline taxes something between $175 and $190 a year.

I do know we need improvements in our streets and roads; that is true. But why cannot we do it as we do in our homes? We all-most of us, anyway, if we work for a living-we buy it with a down payment, and finish it up as the years go on. After all, streets last a long time. Why cannot we do our streets that way?

Mr. BATES. You drive 10 to 14 hours a day?

Mrs. HAYNES. I sure do.

Mr. BATES. Is that the common practice of other taxicab drivers in the District, Mr. Hathaway?

Mr. HATHAWAY. No, sir, Mr. Chairman; there is a Public Utilities rule saying that no cab driver can operate a cab over 12 hours a day; that is the law.

Mr. BATES. Well, she meant to say from 10 to 12 hours a day.

Mr. HATHAWAY. I understood you to ask if it was a common practice to drive over 12. I was merely stating it was against the law to do it; but they do drive 12.

Mr. BATES. Twelve hours a day.

Let me ask a question, sort of impersonally. What does the taxi driver in the District consider to be a fair income or average earnings a day?

Mr. HATHAWAY. Well, the only record that I have-and I have not driven a cab for some time-I understand the Federal Income Tax

Bureau regulates at $45 a week for the average cab driver, the wages or earnings.

Mr. BATES. Forty-five dollars a week?

Mr. HATHAWAY. That is the only figure I have.
Mr. BATES. That is net?

Mr. HATHAWAY. Yes, sir; as I understand it.
Mr. BATES. Net?

Mr. HATHAWAY. But I do not feel that they are actually making that, but that is what they seem to think they are, and that is the only

Mr. BATES. What do you think it is?

Mr. HATHAWAY. I do not know.

Mr. BATES. Do they give any personal secrets away?

Mr. HATHAWAY. Well, you have two types of people, Mr. Chairman: You have the ones who are saying they make a lot and the ones who say they are not making a living; but I would say in the neighborhood of $5 a day.

Mr. BATES. Five dollars a day?

Mr. HATHAWAY. Yes, sir.
Mr. BATES. Net?

Mr. HATHAWAY. Yes.

Mr. BATES. Six days a week?
Mr. HATHAWAY. Yes, sir.

Mr. BATES. Do you mean to tell me that the taxi drivers are making only $30 a week?

Mr. HATHAWAY. That is right, exactly right. But if you take into consideration how the taxicab industry has grown during the war, you can see that it is absolutely possible. As I said before, it was somewhere in the neighborhood of-how many would you say were licensed during-before the inspection?

Mr. ALDEN T. KEETING (Yellow Cab Co. of D. C., Inc.). It is near 10,000, sir.

Mr. HATHAWAY. Is that what it is? I said nine five.
Mr. BATES. And 3,000 gave up their licenses, is that it?
Mr. HATHAWAY. Somewhere in that neighborhood.

Mr. KEETING. Speaking for the Yellow Cab Co., we operate a thousand cabs, and we lost, I think, 31 out of that total.

Mr. BATES. Then, if you have a thousand cabs and you only lost 31; and if you had 10,000, you would lose approximately 300.

Mr. KEETING. I am just speaking of my own fleet.

Mr. HATHAWAY. Mr. Keeting might point out that he has the bestequipped fleet in the city.

Mr. KEETING. Mr. Chairman, I do have four of my drivers here, and some of those questions you were asking of Mr. Hathaway could, perhaps, be answered by them since they would be in a better position to know that.

Mr. BATES. What do you have to say yourself, Mr. Keeting?

Mr. KEETING. I have a brief statement, sir, which I would like to file, and I would like to go along with the chairman in his request for making this meeting as brief as possible, and I would like to introduce these drivers.

Mr. BATES. I was just getting to that question, because I think in the District of Columbia from my observation, and from the observa