Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-28
VERDICT IN TRUCK
CASE BASED ON TAX
Indiana Public Service Com
mission Rules Against
Permit to Operate.

The subject Of taxes is of paramount
Importance in considering the propriety
of granting permission to motor vehi-
Gle company to operate in territory
which is already adequately served by q
railroad, in the opinion of the Public
Service Commission Of Indiana.
The commissions opinion was handed
down in the case of the application Of
the Drake e. Houk Transportation Co.
for a certificate of public convenience
and necessity to operate motor trucks
between certain points In Indiana
which were already served by the Penn
sylvania Railroad.
Territory AIreacy Served.
John w. McCardle, chairman OF the
commission, wrote the decision. which.
in denying the application, emphasized
that the territory was being provided
with ample service by the railroad.
1T is very evident that in this case
the applicant and the railroad. operat-
ing in the same territory, cannot both
survive" says the decision. Which OF
the two shall remain? The community
as a whole is better served by the rail-
road than by the truck. Motor trucks
pay no taxes in comparison with rail-
roads. For the year 1929 the Pennsyl-
yania Railroad paid in taxes IN the
Counties of Randolph, Jay and Adams
the sum Of $179,677. Is. The population
of-these three counties by the 1880 cen
stls is SIS. 662. On a per capita OASIS
the railroad pays S2.73 per year for
every man. woman and child IN these
three counties. The railroad serving
this territory was assessed at the sum
of S38. 1872 per mile for the year 1929
which amount includes main and SIDE
track rolling stock and Improvements
but not the local assessment.
It is interesting to note. the decision
noints out. that the average cost Of
maintenance of the highways over
period OF seven years. 1924-ls3o, was
1855 per mile The 1880 average o.
s6O5 shows an increase Of $50 per mile,
il is explained, which Is conclusive
evidence that the cost OF maintaining
the public highways Of the State Is IN
crassinp nv leans and bounds. No ex-
pense of this kind can be attributed tc
the railroads"
Duplicates Facilities.
Questioning the necessity Of addi-
tional facilities which would duplicate
those Of the railroad the decision con-
tinued, in part.
THE commission realizes that store
door delivery is somewhat convenient
in the transportation and delivery OF
cargo property. However, the commits
sion wishes to work for the welfare o.
the community as a whole, and mus
bear in mind all elements affecting that
weifare-especially the subject OF tax
alton, in which every citizen is vitality
interested. It must not be forgotten
that the benefit derived by communl'
| tv from taxes paid by the railroads !!
matter of no little concern. Every
State in the Union, as well as the ma
| tional Government, Is studying anc
anslyzing the tax question with tn
view Of reducing the burden or dis
covering more simplified and equallzec
method Of establishing, collecting ant
distributing the same.
The railroads in this country are
/ paying in taxes approximately 81 1000
| 600 day. and this vast amount o.
! money is distributed so uniformly
| throughout the country that it benefits
/ every man, woman and child. A par
| oi this money was spent for road build
| ing long before the motor vehicle wa
used, and these very roads are nov
/ being used as the foundation of oui
present cement or hard-surfaced roads
In other words. part Of the tax paiC
/ by the railroads has been used agains
J them through the use OF the nlgflWAy
cy competitive motor operators. AS thu
gross end net revenue Of the RAILROADS
| decreases. the assessment OF railroad
property will decrease and the amour
OF taxes paid by the railroads viii be re
| duced This means but one thing-a
! increased rate for every taxpayer, who's
| property. in many cases, has alreao,
been assessed at its true cash value.
/ Taxes Merit Consideration.
THE commission is Of thu opinion
that the right of an existing publ
utility to have the support of publ
patronage in return for its contribution
in the way of public service and take
paid in support of the Government
State and local, compared with th
right OF new utility which seeks t
render the same or similar service Il
the same territory, to the detrtment O
the existing utility, is a factor OF n
small consequence. and that the genera
public, as well as the existing utility
has right to have the subject @
taxes considered in determining tn
fundamental question in such cases, viz
do public convenience and publ
necessity require such new. competin
. service, and Is such competing seTvic
warranted by public policy?"