The Challis messenger. (Challis, Idaho) 1912-current, 1925-06-24
cHALLIs, IDAHO, WEDNESDAY
COURT HOLDS TAX
CONSTITUTIONAL

Boise, The decision of Judge Dana
e. Brinck of the third Judicial Dist
riot of the State of IdYhv in Irhold-
ing the provisions of the auto trans
portation law which was enacted at
the resent session of the legislature
and in refusing to issue a restraining
order against the enforcement of the
law by the department of law enforce
ment, will be followed by the placing
Of the law into effect Immediately ac-
cording to F. A. LETTER. commissioner
of law enforcement.
The aw in question went into effect
on May, 4, 1925. Immediately preced-
ing this date action was begun by
Morrie Smallwood. operating a stage
between Boise and Emmett, for the
purpose of testing the validity of the
law It was contemplated in the COM
plant that Section of the law which
provided for the furnishing of liabil-
ity insurance and property damage
insurance or bonds to cover personal
injury end property damage, was in
definite in its terms! and incapable Of
Interpretation. It was further con-
tended that the provision OF the law
requiring the payment of five per
cent tax on the gross earnings of all
auto transportation companies was
excessive and confscatory in its na-
ture and therefore in violation of the
constitution OF the state of Idaho, and
also of the United States. A Temporal
~ restraining order was issued ag-
ainst the commissioner of law enfor
cement. The result was that the law
could not be put into effect. Further
more, owing to Indebtedness as to the
amount of insurance TO be furnished
the insurance companies have refHs
ed to furnish bonds. The decisso4 of
Judge Brinck however places a Elm
tie Interpretation on the section re-
lating to bonds, and also decides that
Tue lax feature VI tic law 10 uOt I'LL
constitutional.
F. A. Jeter, commissioner Of law
enforcement, in discussing the law
after the decision of the court. said:
"This law went into effect on May 4
and although a temporary restraining
order was issued against its enforce
ment, such order did not remove the
necessity of the payment of tax in
case the law upheld. Therefore, it
will be the policy of my department
to allow ten days, which is a reason
able length of time, during which auto
companies and all who
wish to operate motor vehicle on
the public highways for hire, may
make application to this department
for permits to operate such motor
vehicles. Immediately action should
be taken by all stage companies.
looking toward immediate quaiiflca-
tons under the law. Application forms
fai permits may be secured on re- {
quest to the department. The taxing L
feature of the law will take effect as :
Of May 4th Immediately upon quail 4
fication of any company this depart +
nent will require a report of all earn {
ngs since the aw went into effect on t
May 4th, and the payment of tax of
i've per cent on such earnings. {
Under the law as interpretated by v
Judge Brinck, everyone operating a t
motor vehicle for hire is required TO t
furnish liability insurance or surety ,
bond providing compensation for a {
injury not to exceed $4,000 t
or injury to one person, and total IN I
,urance of $4,000 for recovery for
personal injury suffered by all per '
ons injured while being transported c
n such vehicle equipped to carry not
more than twelve passengers, $4,000 e
or personal injury suffered by all s
persons injured while being transpor '
ed in each such vehicle equipped to {
larry not more than twenty passen- |
gers, $4,000 for recovery for injury
suffered by all persons injured while c
icing transported in each such We s
licle equipped to carry more than j
wenty passengers. 1t is also required y
hat insurance or bond be furnished I
n the sum of $1,000 for damage to [
All turczs which are NOT en- {
,aged in the carrying of passengers l
ire required TO furnish the $4,000
personal injury bond or insurance a
,ond and the $1,000 property damage '
insurance or bond. Endorsements are
now being prepared to be attached to