HERBERT R. O'CONOR, GOVERNOR. 1993

new sub-section to be known as Sub-section (d) and to fol-
low immediately after Sub-section (c) of said Section 95,
so as to restore the applicability to common and contract
carriers by motor vehicle of the tax measured by operating
revenues imposed by said Section 95.

Senate Bill 176 affects contract and common carriers by mo-
tor vehicle as to tax liability to the State. It was estimated
that the bill, if signed, would produce revenue of between
$250, 000 and $400, 000 annually. There are several reasons for
vetoing this measure which has brought more correspondence to
the State House than any single enactment of the Legislature.

A controlling consideration is the danger of impairment of
reciprocal arrangements with other States, if the new statute
would be made effective. Retaliatory action by other States
undoubtedly would follow, particularly because of the car-
riers' contention that the measure was hastily enacted, with no
sufficient opportunity for them to present their side of the con-
troversy.

The Office of Defense Transportation had requested that the
bill not be signed as, in the opinion of the Federal agency, it
would constitute a "barrier to the free flow of commerce which
is so much to be desired under present conditions". The
O. D. T. also predicted that acts of retaliation by other States
would follow, if the Maryland enactment became law. The
Federal officials applauded the "generous spirit of coopera-
tion" previously shown by the Maryland Governor and by
State officials throughout the war effort.

The bill's veto was also requested by the Senate Finance
Committee which had previously passed upon the bill, but on
the last day of the Session voted to request the Governor's
rejection. Somewhat similar action was taken by the House
of Delegates before adjournment in seeking to have the meas-
ure recalled so that it could be killed.

Believing that additional study of the entire tax problem
affecting motor carriers is necessary, I will appoint a Com-
mission to survey existing tax levies upon all forms of trans-
portation, within the «State, to the end that a comprehensive
and equitable tax system can be devised. I intend to appoint
the new Commission shortly in order that this study can
be undertaken without delay and instructions will be given
to the Commission to report to the Legislative Council with
recommendations for amendment to the present law.