The CHAIRMAN. As I say, it is much better than it was. It was deplorable for a while. And there was a constant annoyance from the police officers, if you got into another cab, sticking their heads in and threatening to arrest the driver. It was almost a public scandal for a while. Everybody was dissatisfied with it and there were a lot of complaints. As I say, it has been largely corrected now, but if you come in to the airport and want a taxicab and there are none available, they pack you in one of those limousines and haul you all over the city of Washington before they get you to your destination, and it is not good service.

I wonder if you would make the contract a part of the record here, and also the returns from that concession.

Mr. LEE. Yes. I will be glad to, Mr. Chairman.

Senator SCHOEPPEL. Along that line, I think it is well for us to have in the record just what Chairman Bricker asked for here. Where the service is slow, and sometimes, as it has been in the past, unobtainable for some considerable length of time, that contract when offered into the record will show whether passengers coming into the airport and going to a public telephone and calling a taxicab service downtown, would even be prohibited from having them pick you up.

Mr. LEE. Yes, sir. The contract provisions will show the nature of the exclusive concession granted out there.

Senator SCHOEPPEL. In that kind of a case, if carried to the ultimate, a fellow could sit out there until finally someone showed up. Mr. LEE. Yes, sir.

Senator SCHOEPPEL. That would be an abominable operation.
Mr. LEE. Yes, sir.

Senator SCHOEPPEL. And certainly there ought to be certain leeways and protection to the public that uses the airport there to see that the type of service rendered would be competent and fairly consistent with the demands of the incoming passengers into that airport. Mr. LEE. Yes, sir. And we will certainly work toward that objective, Senator Schoeppel, and try to avoid any of these incidents in the future which have created unpleasantness. We do have the fact that the traffic at the airport has grown so rapidly that sometimes the number of passengers have outstripped many of the facilities for handling them. But I can assure you we will work with Airport Transport, Inc., to see that it, our concessionaire, will meet the needs. Senator SCHOEPPEL. I have no further questions.

The CHAIRMAN. The contract will be made a part of the record at this point.

(The contract between Air Transport, Inc., and the United States of America for the operation of a taxicab service concession at the Washington National Airport, and also a tabulation of the total billings to Air Transport, Inc., by fiscal years, are as follows:)

AGREEMENT BETWEEN AIRPORT TRANSPORT, INC., AND THE UNITED STATES OF AMERICA FOR THE OPERATION OF A TAXICAB SERVICE CONCESSION AT THE WASHINGTON NATIONAL AIRPORT

Dated: JULY 1, 1951

AGREEMENT, Made this 1st day of July 1951, by and between the United States of America acting by and through the Administrator of Civil Aeronautics (hereinafter referred to as the "Government"), and Airport Transport, Inc., a corporation organized and existing under and by virtue of the laws of the State of Delaware (hereinafter referred to as the "Company"),

WITNESSETH:

WHEREAS, the Government is the owner of the Washington National Airport, Gravelly Point, Virginia (hereinafter referred to as the "Airport"), at which Airport aircraft engaged in the transportation of persons, property and mail by air do arrive and depart;

WHEREAS, it is considered in the interest of the Government and the public to have ground transportation provided by taxicab, motor-coach, and/or limousine from the Airport controlled by the Government;

WHEREAS, the Government has determined that the privilege and right to operate transportation services by taxicab, motor-coach and/or limousine hereinafter referred to as Taxicab Service from the Airport shall be granted to a concessionaire for the operation of such facilities;

NOW, THEREFORE, In consideration of the premises and in consideration of the charges, fees, covenants, and agreements contained herein, the parties hereto agree as follows:

ARTICLE I. GENERAL RIGHTS OF COMPANY

The Government does hereby grant unto the Company, subject to all the terms, conditions, and covenants of this Agreement, full authority to have and to exercise the following rights, powers, and privileges on and in connection with the Airport:

(A) The sole privilege and right to operate taxicab service for passengers and baggage originating at the Airport from any point on the Airport.

(B) The sole right to transport for hire passengers from any point on the Airport to any other point on the Airport.

(C) The use of such space on the parking area and the driveways of the Airport for the conduct, operation and maintenance of taxicab service, together with the right of access, ingress, and egress to and from such space by employees, contractors, suppliers, servicemen, business visitors, licensees, guests, patrons, and invitees of the Company, as may be assigned by the Airport Director.

(D) The use of approximately one hundred and sixty (160) square feet of space in the north vestibule of the Terminal Building for the conduct and operation of an office, for which no rental charges or fees shall be made by the Government: Provided, That in the event all or any of such space is required, in the judgment of the Airport Director, for other use, the Airport Director shall have the right, upon thirty (30) days' written notice to the Company, to require the Company to vacate such space provided other space in the Terminal Building of approximately equal area, and at a convenient location, is made available to the Company for the conduct and operation of an office in accordance with the terms and conditions of this Agreement.

(E) The use of approximately four hundred and eighty six (486) square feet of space in room number 280 located on the second floor of the Terminal Building for which the Company shall pay the Government a rental fee of two dollars ($2.00) per square foot per annum, prorated on a monthly basis and payable monthly in advance on the first day of each and every month.

(F) In addition to the space herein allocated to the Company, the Government hereby leases unto the Company, four thousand (4000) square feet of space in Barracks Buildings T-1501 and T-1502 to be used as a garage by the Company. The Company agrees to pay the Government for the use of such space, One hundred dollars ($100.00) per month and shall pay for all metered electricity used on the premises. The Government agrees to furnish the Company heat and water to be used on the premises by the Company at no cost to the Company. If the Company finds that repairs to the premises are necessary during the term of this agreement, the Company agrees to make such repairs at its own cost and expense after securing the approval thereof from the Airport Director.

(G) The right to install and operate signs in the Terminal Building and on the Airport for the purpose of identifying the Company and informing the public of the services offered by the Company and the charges made therefor. The number, size, location and the general type and design of such signs to be subject to the approval of the Airport Director.

(H) The exclusive right to have on and about the Airport on those places on the driveways and the parking area specifically assigned by the Airport Director such motor vehicles as may be necessary for the efficient and economical conduct of the business of the Company.

ARTICLE II. TERM OF AGREEMENT

(A) The Company shall have the exercise the said rights, powers, and privileges set forth in Article I hereof for a term beginning on the 1st day of July, 1951, and terminating five (5) years after said date, unless sooner terminated as hereinafter provided.

(B) In view of the capital investment made or to be made by the Company in the necessary equipment to carry out the terms of this Agreement and the probable necessity for additions from time to time during the term of this Agreement, it is hereby agreed that this Agreement may, in the discretion of the Administrator, be renewed for further five (5) year periods upon terms to be mutually agreed upon by the Administrator and the Company.

ARTICLE III. CHARGES AND FEES

The Company agrees to pay the Government the following charges and fees for the use of all the premises, except the space set forth in Article I (E), and for the rights, powers, and privileges granted under this Agreement:

(A) From and after July 1, 1951, the Company shall pay charges and fees equal to ten per centum (10%) of the gross receipts derived during the term of this Agreement from the Company's operation of a Taxicab Service from the Airport.

Such charges and fees shall be in on July 1, 1951, and shall be payable monthly. The gross receipts for such concession shall be determined in the manner described in Article IX and subsection (3) of Article XXVI hereof: Provided, That if the term of this Agreement terminates prior to the end of a monthly period, the charges and fees shall be determined on the basis of the gross receipts for the days during such period which fall within the term of this Agreement.

(B) From and after July 1, 1951, the Company shall, in addition to the charges and fees required to be paid pursuant to Paragraph (A) of this Article III, pay charges and fees of two and one-half per centum (2%) by which the gross receipts derived from the Company's operation of the Taxicab Service from the Airport during any one contract year exceed one hundred fifty thousand dollars ($150,000), and an additional two and one-half per centum (22%) of the amount by which such receipts exceed three hundred thousand dollars ($300,000): Provided, That the rate on revenues derived from the Company's operation (other than the Sight-Seeing Concession) from the Airport to points outside the metropolitan area of Washington, D. C., shall be computed at the flat rate of 10% and such revenues shall not be a part of gross revenues for the purpose of applying the accelerated rates set out in this Article.

For the purpose of this Paragraph (B) each contract year shall begin on July 1, and end on June 30, of the following calendar year, commencing with July 1, 1951: Provided, That if the term of this Agreement terminates prior to the end of any such contract year, the charges and fees payable pursuant to this Paragraph (B) for such fractional contract year shall, in lieu of being based on the above amounts of one hundred fifty thousand dollars ($150,000) and three hundred thousand dollars ($300,000), respectively, for the Taxicab Service be based on 1365 of such amounts multiplied by the number of days in such fractional contract year.

The charges and fees payable pursuant to this Paragraph (B) shall be paid not later than thirty (30) days following the end of each contract year, and shall be based upon the gross receipts which were used to determine the payment of charges and fees made monthly during such contract year under the terms of Paragraph (A) of this Article III.

(C) Notwithstanding any of the provisions of Paragraphs (A) and (B) of this Article III, the Company agrees that in the event the charges and fees paid by the Company under Paragraphs (A) and (B) of this Article III do not exceed for any one contract year thirty-five thousand dollars ($35,000) the Company shall pay to the Government the amount by which such charges and fees fail to equal thirty-five thousand dollars ($35,000). Such payment shall be made within the thirty (30) days immediately following the end of any contract year in which such deficit shall be incurred.

ARTICLE IV. UNDERTAKINGS OF THE GOVERNMENT

The Government agrees:

(A) To provide electric light and telephone outlets and heat for the space to be occupied by the Company as set forth in Article I (D) and (E).

(B) To make adequate provision for parking space for the sole use of the Company for such motor vehicles as may be necessary for the efficient and economical conduct of the Company's business, such space to be suitably marked indicating the exclusive right of the Company to the use of such space.

(C) To provide suitable and adequate space on the driveways near the main entrance or entrances of the Terminal Building for the sole use of the Company in having available, near such entrance or entrances, an adequate number of motor vehicles; such space to be adequately and suitably marked indicating the exclusive right of the Company to the use of such space.

(D) To prohibit any vehicle, other than that of the Company, to carry for hire passengers and their baggage, originating at the Airport, from the Airport: Provided, That this shall not apply to regularly scheduled service operated by the A. B. & W. Bus Company or its successor.

(E) To prohibit any taxicab company, bus company or any carrier by motor vehicle to hire, other than the Company, to use space in the Terminal Building, to install signs in the Terminal Building or on the Airport, or to have on the Airport starters, guides, clerks or solicitors or business.

(F) To incorporate in regulations controlling the Airport the necessary provisions to carry out and effectuate its agreements and covenants set forth herein and to at all times enforce such regulations.

(G) To repair and maintain in good condition, subject to the availability of funds, therefor, the Terminal Building and the grounds of the Airport to the extent to which the Company or other users or lessees of space or other licensees at the Airport are not obligated to perform such repair and maintenance.

ARTICLE V. EQUIPMENT OF THE COMPANY

(A) The Company covenants and agrees that at its own cost and expense it will furnish adequate and efficient 24-hour transportation service by means of taxicabs, motor coaches and/or limousines from the Airport, without limiting the generality of the foregoing, the Company further agrees:

(1) To have, taxicabs, motor coaches and/or limousines available at the Airport in such numbers and at such times as the Airport Director or his duly authorized representatives may determine to be necessary for the proper and adequate conduct of twenty-four (24) hour transportation service from the Airport to the metropolitan area of the City of Washington, D. C.

(2) To obtain all permits, approvals, licenses, certificates and other authorization necessary for the conduct of a taxicab service to and from the Airport and the metropolitan area of the city of Washington, D. C.

(3) To furnish at its own cost and expense drivers, guides, starters, clerks and such other employees as may be necessary for the proper conduct of the Taxicab Service who are capable of adequate and efficient performance of their duties and who are possessed of all permits, approvals, licenses and certificates required by any applicable law of the State of Virginia or the District of Columbia.

4. To provide all desks, chairs, and other office furniture and equipment which the Company may find necessary for use in the space provided in the Terminal Building.

(B) The taxicabs, motor coaches and/or limousines, permits, approvals, licenses, certificates, material and other items agreed to be furnished by the Company in Paragraph (A) of this Article V (hereinafter sometimes referred to as "operating facilities") shall be made available and ready by the Company on July 1, 1951: Provided, That in the event the Company's performance of its obligations under Paragraph (A) of this Article V is prevented or interrupted by strike, riot, storm, flood, act of God, or any act or state of war or public emergency, or any other cause beyond the control of the Company and not caused by any act or failure to act by the Company, the date on which the Company is required to have operating facilities ready and available shall be deferred for a period of time equal to the number of days the Company's performance was so prevented or interrupted.

In addition, the Government reserves the right at anytime during the term of this Agreement to obtain taxicabs, motor coaches and/or limousines from any available source for the purpose of carrying passengers and their baggage from the Airport to the metropolitan area of the City of Washington, D. C., whenever, due to any cause, the Company does not have available at the Airport sufficient taxicabs, motor coaches and/or limousines to render adequate and prompt transportation service from the Airport to the metropolitan area of the City of Washington, D. C.:Provided, That the Government shall immediately discharge or otherwise cause such other taxicabs, motor coaches and/or limousines to quit the grounds of the Airport as soon as the Company shall remedy such defect in its service.

(C) The Administrator shall have the right to disapprove the color design of any of the taxicabs, motor coaches and/or limousines and to disapprove office furniture and other equipment required of the Company under Paragraph (A) of this Article V, which are of a design, quality, condition, or color arrangement which, in his judgment, will not be in keeping with the general character of the Terminal Building and Airport: Provided, That the Company shall have the right to engage, for a limited period of time only, taxicabs, motor coaches and/or limousines operated by other companies for the purpose of rendering transportation service under the terms of this Agreement, but in no event shall the number of taxicabs, motor coaches and/or limousines operated by the Company under such an arrangement with other companies exceed 25% of the total number of taxicabs, motor coaches and/or limousines operated by the Company under the terms of this Agreement.

In the event that the service rendered by the Company is not, in the judgment of the Administrator, capable of providing prompt, adequate and suitable transportation service from the Airport to the public, the patrons of the Airport, and the employees of the air carriers, other concessionaries at the Airport, and the Government, the Administrator may require the Company to supply, within a reasonable time, the additional taxicabs, motor coaches and/or limousines necessary to remedy such deficiency.

ARTICLE VI. RATES AND FARES

Subject to the terms of the necessary permits, approvals, licenses, and certificates therefor, the Company shall provide limousine service between the Airport and Zone No. 1 in the City of Washington, D. C., at a tariff of ninety cents (904) for each passenger, the charges for passengers to other Zones to be subject to the approval of the Airport Director, and shall provide service in metered taxicabs at a tariff of thirty cents (304) for the first one-third of a mile (%) and ten cents (104) for each one-third of a mile or fraction thereof thereafter, all such tariffs to be posted in a conspicuous place in each vehicle, the place and manner of such posting to be subject to the approval of the Airport Director: Provided, That the Company may from time to time during the term of this Agreement, but only with the written approval of the Administrator, change such tariffs, except as may be prohibited by any other proper governmental authority.

ARTICLE VII. MAINTENANCE AND OPERATION BY THE COMPANY

In addition to the covenants and agreements contained herein specifying the operating facilities, services, personnel and methods, by which the Company shall operate the Taxicab Service Concession, the Company further covenants and agrees that it will during the term of this Agreement at all times keep such operating facilities, personnel and methods of operation in a condition necessary for the adequate and proper performance of its duties under this Agreement. Without limiting the generality of the foregoing the Company further agrees: (1) To replace from time to time with satisfactory equipment any taxicab, motor coach and/or limousine used in furnishing transportation facilities under the Taxicab Service Concession at the Airport which has through continued operation, collision, fire or other cause become unsafe or in any other way no longer suitable to furnish services of a kind and a nature in keeping with the general character of the Terminal Building and the Airport.

(2) To keep at its own cost and expense all taxicabs, motor coaches and/or limousines used in the conduct of the Taxicab Service Concession, clean and in good appearance, both on the outside and inside, and in a condition for safe operation. (3) To have employees of the Company rendering services at the Airport clothed at all times while on duty in a neat uniform of standard type.