WASHINGTON - Cabdrivers circled inside Freedom Plaza Thursday, protesting against a proposal to create taxicab medallions.

The drivers also demanded the resignation of the medallion bill's author, Council member Jim Graham. They claim the proposal stems from serious corruption, as evidenced by the arrest of Graham's chief of staff, Ted Loza, who the FBI (web) says took a bribe to influence taxi legislation.

"My only hope is that they get everybody, that this isn't just about some chief of staff who took a $1,500 bribe," said Eric Weaver.

But Graham flatly rejects any talk of resignation.

"I have not been charged with anything,” he said Thursday. “I have been informed that I'm not the target of any investigation.”

Graham seemed annoyed by Wednesday’s City Paper story that revealed the councilman's personal credit card was used to pay $3,200 for Loza's girlfriend's abortion -- a transaction Graham defended as a loan to a friend.

“I’m not paying for any abortion,” Graham said. "It's a thing that one person would do for another if they care deeply, he didn't have the money, they wanted it done and so I loaned him the money. He paid it back in 30 days."

For the cab drivers, the issue remains any talk of medallions, which they believe is an attempt to turn their one-man operations over to corporate America.

Graham pulled his bill involving medallions, but says the issue of too many taxicabs must still be addressed.

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