Proposed Medallion Sale Angers City Cab Drivers

With 50 irate cabbies looking on, the Cambridge Licensing Commission last Tuesday postponed the transfer of 52 taxi medallions from Yellow Cabs of Cambridge to the Ambassador Brattle Cab Company.

Medallions issued by the city permit taxi drivers to pick up fares within the city. Because only 248 circulate in Cambridge, medallions become expensive commodities sold at inflated prices almost $27,000 apiece.

Arthur Goldberg, owner of Yellow Cabs, must get commission consent before he can sell his medallions to Wilfred C. Suozzo, the proprietor of Ambassador Brattle Cabs.

Taxi drivers say the transfer will give Suozzo a virtual monopoly on medallions and allow him to dominate the taxi business in Cambridge With almost 70 percent of the taxi licenses. Suozzo could put the squeeze on medallions, raise their prices, and offer them to other owner operators, local cabbie Frank McCarthy told the Licensing Commission.

One taxi driver said that it is more profitable to work for a company fleet. The owner-operators have to live in their cabs for 45 hours a week just to clear a profit he said. "With a cab company, most of our expenses are taken care of."

Unemployment

"It's inevitable that some people will lose their jobs" predicted Jeffrey Schultz, a Boston attorney representing several owner-operators adding. "Drivers simply cannot afford the price of a medallion."

Maury Shocker, an attorney representing Yellow Cabs, estimated the 85 full and part-time jobs could be affected by the transaction Cab drivers believe many more will suffer.

Several taxi drivers appeared before City Council on the eve of the licensing commission meeting to voice over the medallion transfer. The Council responded by instructing the commission to put the deal on hold until the city manager can initiate a full investigation.

Silent Majority

Although nearly 50 drivers attended the commission hearing on Tuesday evening, only McCarthy spoke out. In a dramatic move, McCarthy show of hands from the taxi drivers, and all indicated opposition to the transaction.

"I am afraid of Freddie Suozzo," one taxi driver, who requested anonymity said. "And I know others kept silent because they fear what Freddie Suozzo can do."

Legitimate Business

Attorney Shocker said at the commission hearing that this was "a legitimate business transaction." He cited the poor health of the Yellow Cab owner and his other interests in the transportation field as reasons for the medallion sale.

Mary E. Calnan, chairman of the licensing commission, said that no decision would be made on the transaction until the City Council can conduct a full investigation in the next three weeks.