Show PROPOSED TAX UPON UTILITIES UNDER ATTACK Railroad Official for Gas Firms Heard by Legislators Vigorous opposition to lo the proposed bill bilI to levy additional taxes on pu pub lie lic utilities w were re expressed day by representatives of r railroad gas and power companies at a pu public public pub pub- lic lie hearing before the legislature committee of the whole in the hO housa of representatives The bill proposed to lo levy taxes on railroads electric power gas gas- telephone and telegraph compa nies ales After lifter hearing two speakers speakers- P. P H. H Mulcahy y general manager of at th tM the Utah Idaho Central railroad and W. W VW W. W Ray attorney hg natural l gas companies the hearing was adjourned adjourned ad d until late afternoon Mr Mulcahy charged the sponsors sponsor of ot the bill with singling out a particular particular par par- industry and taxing it bey beyond nd its power to lo bear such taxes in hi his speech opposing the measure In explaining the status of the three thres electric railroads of the state the Salt Lake Utah Bamberger Electric and Utah Idaho Central all of which he represented he attempted t to show they are unable to bear an additional ad additional tax burden EXPLAINS BUSINESS The three roads he told the con corn com have miles of at track in the th-e state stale and are engaged intensively inthe in inthe inthe the development of at agricultural counties counties counties coun coun- ties adding that 90 per cent of their business is directly or indirectly a ot of agricultural origin The three thre roads Mr Mulcahy declared de de- de dared represent an investment of ot virtually all of which is i Utah money Two of the three roads roads' are in receivership he said while the third is staving off such action by means of a creditors' creditors committee Two of ot the roads never have hav paid dividends dividends he he said and the third hat haS not paid dividends in 15 years e rs M The r railroad ad official continued ed to paint a dark picture of the condition rr of the roads when he said the tle combined com corn loss was more than a year The combined gr gross ss revenue of the lines a year ear is they paid a tax of last year and paid to people In addition was spent for materials and supplies during the year ear most ot of which was as d distributed s in Utah r. r ADDITIONAL BURDEN DURDEN Mr Mulcahy pointed out that sc section see sec tion lion 4 of ot the proposed utilities hilt bill would place an additional burden of ot a year year o on 01 the three lines toI to I have heard from a reliable source he said that there is a serious serious seri seri- ous question as t to the constitutional ity of the bill and arid it might be danger Continued on P Pue e Two I PROPOSED TAX UPON UTILITIES UNDER ATTACK Continued From Front race Pace One ous to pin the hopes for revenue for forthe forthe forthe the state industrial recovery act on such a measure The railroad official also charged that the proposed measure is inequitable table as it applies to different types of or railroads As A. an art example he pointed out that the bill proposes a n tax of 4 a track mile on main lines and per track mile on branch lines e. e Electric railroads have virtually nothing but main lines linc all of which would be forced to pay the minimum tax whereas a steam transcontinental line might michl have a branch line running run runS ning parallel which would be assessed as only the minimum levy he pointed out CITES INEQUALITY He also cH cited d as another inequality of or the proposed measure the fact that the bill provides no tax for buses It Il is very Important to conserve the employment of ot those now at work he added and the electric ra railroads come with a plea to the legislature to be allowed to continue that employment Senator Herbert B. B Maw D. D Salt SaH Lake firm proponent of ot the utilities tax measure asked I if the railroads are not willing to share the tax burden bur burden den to enable the state to receive ad ad- additional funds which he said would help the railroads to obtain more busin business QUOTES FIGURES There are unemployed heads of ot families in Utah he asserted and persons who will have to pay paya a sales tax and they also ao are in receivership re reo Mr Mulcahy assured the senator the railroads are willing to carry a just burden of or all taxes which are fairly distributed Representative H. H C C. Pope D D. Salt Lake asked is the railroads would prefer to have the entire tax system tied to a an ao income tax to which Representative Rep re Darrell T T. Lane D D. Salt Lake objected on the grounds that the hearing was not conducted on an nn Income Income- tax proposal Mr Mulcahy replied that In his opinion any proper taxing system takes take into account the ability to earn Mr Ray expressed the belief that thata a 2 per cent sales tax would provide adequate revenue with which to carry carryout carryout carryout out the provisions of ot the public works bill and also to furnish destitution relief without resorting to a tax on utilities Why should you pick oU out a few corporations and invite them to pay a year he asked He He- told the legislators that natural gas ga companies already are paying comparatively more taxes than any other competitors and pointed out that the gas companies have vol voluntarily volun un made substantial reductions in rates to both Industrial and domestic users During the last few tew months commodity com corn prices have been rising he asserted and yet et you pick certain industries which can enjoy no increase and propose to place an additional tax lax burden on them George M. M Gadsby president and general manager of the Utah Power and Li Light ht company compan informed the committee that his company could spend on Improvements be between between be- be tween now and De December ember 31 if It no further tax burden were imposed He expressed the opinion this work would aid lid business recovery ry in the state much more than the proposed utilities tax He also said the company would be forced to 10 pay a year under the proposed 2 per cent sales hales tax tx |