Cab Drivers React To FBI Probe

WASHINGTON, DC (WUSA) -- On the streets of DC, independent cab drivers were nearly unanimous in their opposition to Medallions.

"It's bad -- bad," said one driver.

The Medallion System is what drives the cab industry in New York City. New York decides on a number of cabs allowed to work the streets and then charges those drivers a big fee for the honor. They're given a medallion or license that can then be sold for whatever price they can get for it, much like a liquor license.

9NEWS NOW has learned that months ago, a task force or commission formed to study medallions for the District of Columbia recommended against the move, but DC Councilman Jim Graham was moving a medallion bill anyway. He planned a hearing for this week.

That is, until his Chief of Staff Ted Loza was arrested and charged with taking a $1,500 bribe for helping push the Medallion legislation through.

One cab driver said, "We would have been driven out of business had the legislation gone through".