TAXICAB BONDING UPHELD BY COURT |
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The New York Times
November 18, 1922
Appellate Division Declares That Law Is Valid and $2,500 Not Confiscatory.
DEATH FOR EVERY SIX CABS
Casualties Here Equal Those of a "Major Battle," Writes Justice Dowling.
The State law requiring the bonding of taxicabs for safeguarding the public was upheld yesterday by the Appellate Division of the Supreme Court. The question was considered on an appeal taken by Charles Martin, owner and chauffeur of a taxicab, after his conviction in General Sessions for failure to comply with the taxicab bonding law. Justice Victor J. Dowling, writing the opinion, held that the validity of the statute was not affected by the expense, however heavy, that must be borne by an owner of a taxicab. He pointed out that for every six taxicabs there was a death each year in New York City, as compared with one fatal accident for every twenty passenger cars of other types.
When an appeal was taken in the test case, District Attorney Joab H. Banton and Attorney General Charles D. Newton joined forces in an effort to have the law enforced. Each taxicab operated in cities of the first class is required to carry a bond of $2,500 to guarantee compensation if a passenger is injured. The taxicab bonding law became effective on July 1 last, and in order to test its constitutionality Martin agreed to submit to an order of arrest for its violation. Upon the conviction of Martin he was fined $100 with the alternative of serving a thirty-day jail sentence. The sentence was suspended pending the outcome of his appeal. In his decision, Justice Dowling said:
The fact that the exercise of the police power of the State or the passage of remedial statutes in the public interest may entail expense upon the owner of property, even though it may amount to more than he thinks he can temporarily stand, still is no answer to the question of validity of the law.
"The Legislature has not seen fit to prohibit the operation of taxicabs completely. It has sought to regulate their use and make such use a source of less damage to the public. The provisions of the act are reasonable and justified. The cost of complying with it is not confiscatory. The act is within the proper exercise of legislative power and should be held valid. The judgment appealed from, therefore, will be affirmed."
The existence of similar laws in other states, and particularly in Illinois, where a bond of $10,000 is required of taxicab operators, was disclosed in the course of testimony introduced on appeal. It was shown that in New York State thousands of actions for accidents had been started and that hundreds of judgments had been obtained against irresponsible owners of taxicabs.
Referring to the cost of bonding taxicabs, Justice Dowling said the testimony indicated that stock companies "exact a premium of $960 for the required bond and that mutual companies charge $540 therefor." He cited a schedule filed with the State Department of Insurance, which was placed in evidence, showing the rates. The table follows:
| Initial Collateral Deposit per car | *Surety Carries | *Monthly Premium Per Car |
| $2,500 | .... | $5.00 |
| 2,000 | $500 | 10.00 |
| 1,500 | 1,000 | 12.50 |
| 1,000 | 1,500 | 15.00 |
| 750 | 1,750 | 17.50 |
| 500 | 2,000 | 20.00 |
| 250 | 2,250 | 22.50 |
| .... | 2,500 | 25.00 |