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Atlantic City's Legislated Monopolies

WELCOME TO THE ATLANTIC CITY TAXICAB : BUSINESS 101

 I put “legislated transportation monopolies” as one of the top three issues in Atlantic City.  I welcome this guest column on A.C. transportation woes.

By: Pete Antone | thetoughguys@aol.com

Monopoly Power Revenue Enhancement program
1. Confiscates driver’s earnings through high cab rentals protected by lack of free-market.
2. Suppresses service to the people. Why serve the citizenry when the only objective is to maximize certificate owners income on a limited number of cabs?
3. Collects all cash from drivers thus possibly evading taxes, plus no opportunity to collect sales tax since monopolies want no records.
4. Authorized agents for the license holders force drivers to buy cars charging upwards of $6000 for them and they don’t even pass inspection, for renewals by threatening to give there license to others in waiting .
This leads to recruiting only low caliber, often foreign drivers, who have little option or ability and no chance to learn. The turnover rate often exceeds 300% per year.
Rental rate is set too high for long survival and development. The monopolies have no mechanism or desire for driver development since the only objective is to confiscate their earnings.
The rental rate is set too high for long survival; accumulating wealth or paying taxes is out of the question.
Any limit or certificate except on knowledge is monopoly power and thus anti-free-market.
The driver is left with not enough income to pay his taxes or participate in this society. They pay all cash. New York City, the two largest fleet operators, have between 4 and 5 million dollars come across their desk each week. — evade taxes?
This is a municipally sponsored criminal conspiracy.
Atlantic city has a cap on only 250 taxicab licenses, they will not issue anymore on request.
So called market value at a so called supply in demand scale was around
$40,000.00 in 1996. Now in 2007 it has grown to around $185,000.00 . for one cab license!!
But visitor business is down and gas is higher then ever before and even casino revenues are claiming the worst loses ever.

Rental rates for:
Atlantic City Taxicab License renewal per year to city $150.00 a year
License Holder collects /varies on deal w/wo insurance etc. $15,000.00/ $33,000.00
ATLANTIC CITY cab rental / lic. and insurance only . the car is separate and you must provide your own and maintenance it. $500.00 A WEEK/ $325.00 shift
Since the monopolies are self-funded, and insurance coverage is dismally low, the incentive is to keep the limit on licenses abysmally low. More cabs would mean higher risk of loss and accident rates. The victim is the public. This depresses service to the citizenry and visitors.
The monopolies are a cruel scam played on the city and especially the poor. The opposite of this is open entry infrastructure financing and high standards for the drivers or owner-operators and the vehicle. Today America is a country of monopolies formed into a cartel in Kensington , MD (ITLA). They are closed entry with no standards. The certificate (PCANS) become de facto property in violation of the constitution’s ninth (9) and fourteenth (14) amendments. They operate in a black market world of monopoly power. They are municipally sponsored criminal conspiracies.
The objective of the certificate owner is to get the least qualified driver (operator) behind the wheel and thus confiscate his/her earnings. Monopolies do three things: confiscate the worker’s earnings, reduce service to the people and evade taxes. The taxicab industry in Atlantic City and throughout many other cities in America does all these. It is outside of the moral, social and economic life of the nation.
Certificates of Public Conveyance and Necessity: An artifact of a century ago based on the progressive’s aversion to the raw capitalism of the 19th century. Now, like other such adventures gone sour, perverts original intention and creates monopolies where a free-market should reign. The certificates have become monopoly property and the business opportunities mere chattel to the certificate owners.
International Taxicab and Livermen’s Association (ITLA): The cartel of nationwide monopoly interests by jurisdiction. Their members own the certificates of public conveyance and necessity by municipality. Their number is limited and does not respond to market forces. These, like all monopolies, depress service to the people, confiscate the driver’s earnings through higher than free-market rentals to the driver and evade taxes. The American taxi system is outside the social, moral and economic life of the U.S.
Vicious Cycle: The socio-economic description of events that feed on each other in a downward cycle to collapse. The cab customer gets poor service, the cab driver makes less money, good cab drivers leave, and the customer gets poor service, less pay, less drivers, less customers, until collapse.
The taxi system in America & Atlantic City’s geopolitical areas are a national disgrace. No decent and affordable service can be provided, no owner/operator opportunities provided, no taxes paid, no community involvement, and no responsibility. This is totally outside of the social, moral, economic, constitutional and environmental framework of our society. The taxicab industry is underdeveloped throughout the United States. Lack of standards has frozen it in the mold created more than a century ago. Bernard Fall in his writings on the war in Viet Nam noted that the French controlled only a few major urban areas in the country. They did not control municipal governments throughout much of the country, did not collect taxes and did not run the schools. Between municipalities in America and their taxicab industries there is a similar relationship.
How many unqualified taxicab drivers are out there? How many can read and write at a normal business level? How many licenses that are out there were issued without passing a test. How many drivers are actually insured? Can the police tell at a traffic stop if the cab and driver are insured?
Some of these drivers are now charging people the most outrageous prices ever heard. For example: A decent driver with good ethics and a decent dispatch provider will charge $15.00 to $20.00 dollars to a customer. But another driver with no training or guidance from a decent dispatch provider will charge $30.00 to $60.00 dollars. You can find the good drivers if you look. But there is few and most have had to move into limousine licensed vehicles such as towncars and vans to provide decent and affordable rates to there clients and visitors alike that they have built up over the years. These owner operators are real good guys that have families to support and have grown up here and to run there businesses with morals and fairness. Because the taxicab license business in Atlantic City has been claimed by these monopoly Mongols the good guys have to now struggle to provide dependable service for the citizens and teach good ethics policies to any people they can recruit to help them.
There seems to be Timely events dictating the demise of the good drivers,some cab owners and now limo owner operators, such as election times. Election years seem to be the time that municipal crack downs are perpetrated against the higher caliber drivers. Psychological terror is inflicted upon good drivers and owner operators that have built businesses over the years. Guys that have been driven down time and time again by the tactics of so called code enforcement officials by means of stalking and harassing them with threats of violations. Some frivolous half baked rules that are questionable and twisted by words that don’t even exist in the ordinances. Good men with character, morals a decent business sense for the public and overall general concern for there businesses and families shouldn’t have to endure such atrocities that are indeed evidence of monopoly, dirty politics and corruption.
But do not worry ! We are here and we are legally licensed and insured to carry you everywhere you want to go! We will bring our towncars, our vans our limousines and what few decent taxicabs and drivers we have left to service you. Just call us ! You know who we are!
We will not give up our right to service you in a decent and most affordable way that we can!
We will not give in to the monopoly power enhancement program of license holders that are backed by yellow cab and city halls municipal conspiracy !
This is the taxicab and limousine world of Atlantic City. These are the facts.

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About Jesse O. Kurtz

I am committed to fulfilling the promise of Atlantic City. The town would benefit from greater political participation by average citizens. Hopefully, some of the posts herein will encourage you to get more involved in your community. This blog will also feature other topics and subjects beyond Atlantic City. I hope that you will come to love Atlantic City as much, or more than I do.

Discussion

5 thoughts on “WELCOME TO THE ATLANTIC CITY TAXICAB : BUSINESS 101

  1. Some of these regulations were promulgated because taxi drivers were ripping off city residents and they complained to city council. You failed to police yourselves so the government did it for you. Now you have to regain the trust of elected officials to have some of these restrictions relaxed. Sorry, don’t feel sorry for you.

    Posted by dave202 | November 8, 2007, 1:59 pm
  2. oh o.k.,
    then you think you know what the deal is huh dave202? i dont think you do dave202. let me tell you something dave202. city residents getting ripped off, was a scam in itself.anyone that lives in and around atlantic city knows who to call already and need not get ripped off. ie: thats my personal!! its the visitors that mostly get ripped off and anyone in the cab business knows this.if anything, the residents wont get good service when the visitors are here and thats because the cab drivers dont want to anser radio calls when they are because they cannot rip them off and feel they will lose money by servicing them at busy times. also alot of the locals have been the cause for robbing cab drivers.the only reason the meter was cut , was to put the smaller companies that did police themselves out of business. so they could not possibly afford to service the locals aswell and there fore never obtain enough money to grasp the ownership of a license. its was to drive the small guys down so they would be discouraged and leave so the monopoly mongols could bring in more foreigners and then raise the cost of the license, and at the same time , the merchantile dept. would step up there policing of the ggod guys by harrassing them and helping thme to be driven down mentally and financially. now what you have is the most thieves ever on the street along with the most inexperienced and uncontrolled. no guidanc ewhat so ever and absolutely no concern for whats going on for the residents nor the visitors. you must be one of those greedy little license owners that thinks they know what there talking about. because murry rosenberg said so you are going to beleive it. you have never driven a cab probly and neither has murry. all you care about is raising the license on a so called third open investment market. the people who own these licenses have no clue whats going on and when someone tries to give them a clue they are stymied by political reteric and bull. so whats your angle dave? tell me you know better dave.

    Posted by pete | November 18, 2007, 8:00 pm
  3. No angle. Just observations. When you were charged $20 to go from Chelsea Heights to the Trop, that was the travesty. Now, there’s the flat fee imposed by city council because the cab owners would not be reasonable. City council eventually raised it but I think $11 to go from any area of this small town to another is very reasonable. And the fare to the airport is now reasonable, unlike the $50 and more that the cabbies used to charge. So no agenda, just observations. I admit I know nothing about the license fees, but if you had been smart, you could have negotiated with council instead of having them impose a minimum. I suspect the monopolies are the ones to blame for this, not the individual cabbie, but now you’re all paying the price.

    Posted by dave202 | November 19, 2007, 9:54 pm
  4. any kind of flat fee for a cab in a city is rediculous and scanalous. when a cab driver has to drive for free, its wrong! how would you like to be told that you must work until 5pm, but that your only getting paid until 3pm? a license for a cab costs the person that gets it from the city a mere $150.00 dollars a year. the value for the license on the street was around $38,000
    in 1999. 75% of the licenses are not being used by there applicants, they are rented out to drivers that own there own cars and pay there own insurance.in 1999 the city came in and simply said and it was orsatti that said it, and i quote, YOU GUYS ARE ALL THIEVES!! there will be no more discussions, the meter goes to $6.00. now in 2007, the license has a supposed value of $180,000.00 to $200,000.00. and the small companies that took care of the people? ie: QUICKER CAB,CASINO CAB,RAPID CAB,A-1 TAXI,A.C. TAXI, AND VARIOUS OTHERS , ARE EITHER OUT OF BUSINESS OR NEXT TO IT. now you tell me what you think happened. it costs a driver now $50,000.00 a year just to operate this cab. and they are not making money. they cannot further themselves and the tuenover rate is beyond rediculous.

    Posted by pete | November 20, 2007, 3:54 am
  5. many independant drivers that were local and fed there families by driving are gone, and an influx of bangladeshy drivers were brought with some money to ring up the value of the licenses and drove out the real people that deserve them.
    this was created and processed by non other then murry rosenberg and his allied license holders, he owns around 60 to 80 of the licenses and brokers another 20 to 40, for various other owners.the laws that are written against this are ignored by the city and council and only the laws that apply to drivers are initiated and enforced. this is RICO!! this is UNFAIR BUSINESS!, this is CRIMINAL! THE FOREIGN DRIVERS NOW ARE FORCED TO BUY CARS FROM MURRY AND THREATENED WITH THERE JOBS IF THEY DONT.
    HOW CAN THIS BE FOUGHT WHEN THEY HAVE POWERFUL LAWYERS AND SO MUCH MONEY COMING IN , THAT ITS JUST UNGODLY. even the press doesnt write the truth about this stuff or avoids it. everyone knows whats going on and no one does anything about it. the policing of the meter is supposed to be done by the merchantile dept. the way to handle over charging cabbies would have been to catch them, (which is very easy to do) and fine them heavily!! then remove them from using licenses after to many times. thats all it would have taken and they know this. the whole thing was to run up the value of the license for the holders and make alot of free money. and i mean they have made millions!!!!

    Posted by pete | November 20, 2007, 4:07 am

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