Imperial Valley press., 1921-08-13
MOTOR TRUCK
INCREASES
BURDEN Of
TAXES
Southern Pacific Railroad
Official Contends Unfair
to Permit Tax Free We
hicles to Use Public High
ways.

. How an increasing burden is being
heaped upon the public as IA result
Of tax free operation of commercial
state highways was explained in a
memorandum presented by r. f. Kelly
representative Of the Southern Pacific
Company's executive department, to
4 public meeting called by the United
Chambers of Commerce of the Sacra-
mento Valley at Sacramento last
Thursday.
Representatives of the railroads,
motor truck lines and steam boat lines
were invited to attend. as we'll as
county supervisors and officials of
civic organizations throughout the
valley. The meeting was held primar-
lily for the benifit of committee of
five, appointed by the United Cham
bers of Commerce to conduct an in
quiry to determine what steps should
be taken to obtain the best possible
freight and passenger service for the
communities of the valley This COM
mittee is composed of A. S. Dudley,
Sacramento. chairman; w. Boucher,
Oroville; Fred Shafer, Woodland;
d. Evans, Redding, and F. W. Leavitt
The memorandum presented by Mr..
Kelly follows:
"The railroads contend that it is un-
fair to permit motor transportation
lines to operate automobiles virtually
tax free on the state highways. to-
ward the construction of which the
railroads have contriaNted large sums
of money.
"a recognized function of the gov
ernment is to coordinate and safe
guard all transportation agencies. Dis
elimination in favor of any one agency
is against public policy and welfare.
at should be clearly understood
that the railroads do not oppose the
building of highways, nor the use of
such highways for motor transporta-
ton lines. But the railroads rightfully
insist that their competitors, given
the use of such roadbed facilities as
subsidy from the government should
pay proportionate taxes.
"Take the case in California. Rev
enueS received by this state in its
l9l9-l920 (tiscal year),. general fund
totalled $26, ,l6l l54 0S. The tax levy
on the railroads Gncluding street
and electric railwavs) applicable to
state revenues of l9l9l920 was $S,-
943,735 on 34.lS7 per cent of the gen
eral fund.
"State highway bonds are retired
out of the general fund and the
counties have been relieved of the in
terest after 1921, thus throwing the
interest burden also on the general
fund
"To date California has voted $73,-
100000 in state highway bonds, of
which $34; 100000 had been issued up
to June 80, 1920. Difficulties have
been encountered in marketing the
100000 remaining and it is uncer-
tain what interest rate between 1-2
ner cent and 6 per cent will be paid on
100000 of this amount. If at the
A 1-2 per cent rate the final aggre-
gate of $37 100000 principal, plus the
interest to time of maturity, would
make total bill of not less than S145-
600 600; if at the rate of Sl57 900, 900.
Assuming the lower figure. $45,-
900 900, the railroads would pay 3d.
1877 per cent or $40 9,571, $50 of this a
mount through their taxes on the
1920 basis of IA per cent on their
gross receipts. Applying the new rate
Of 7 per cent voted by the 1921 legis-
lature in the King Tax Bill the rail
roads would pay still larger sum.
A bill designed to equalize, to some
extent at least, the tax burdens of the
railroads and commercial automobile
lines and to increase the revenue of
Athe State was introduced in the 1921
Tegislature. In its original form it
would have imposed tax of per cent
dn the gross receipts of motor trans
| rbrtation lines. This was whitfield
dbwn so that in it's final form the bill
| carried q two per cent tax and per-
" Continued on Page Two}