Monday, May. 06, 1929
No 15's, No 5's
Familiar to Manhattanites, cherished by them, is the bouncing, bumping, jolting but economical 15 & 5 taxi (15-c- the first quarter mile, 5-c- further quarter miles). This landmark was last week fated to disappear. For cabmen, already handicapped by an increase in cab insurance, found themselves faced with the additional hazard of a gasoline tax. It therefore appeared probable that cab rates would jump from 30-c- to 35-c- for the first mile, from 20-c-to 30-c- for succeeding miles. Thus a five mile taxi rider would forfeit $1.55 instead of $1.10.
Insulted by this prospect were taxi-minded Manhattanites. Insulted and injured were Manhattan taxi men. For, said they, the new tax was unfairly proportioned. True, last month's passage of the New York state gasoline tax (2-c- per gallon, effective May 1) completed the role of 48 U. S. gas-taxing states. But the private car uses about 550 gallons of gasoline a year. The taxi uses about 7,565 gallons. Inasmuch as the New York law makes no distinction between gas taxes for taxicabs and for private cars, the taxi men, with 3% of New York City automobiles will pay 37% of the tax.
Taxi companies estimated that the gas tax has increased operating expenses per cab by 40-c-a day. Additional insurance rates have produced a 50-c- a day increase. A taxi's daily intake is about $23, its net about $4. According to A. S. Freed, head of Paramount Cab Mfg. Co., the threatened 30-c- a mile rate (well within the legal limit of 40-c- would barely compensate for added costs of doing business.