The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-09-01
THE SINGLE-TAX THEORY.

To the Editor of the Indianapolis Journal:
In the Journal of last Saturday you rep
resent the single tax as a system of taxa
ton that would place the burden of taxa
ton upon the farmer and the owners of
small homes, and would reduce the taxes
on railroads. This objection is a common
one. 1t comes from a misunderstanding of
the single-tax theory-s failure to deter
mine what are and what are not land
values. The right of way or franchise
value of a railroad cannot be considered as
anything else but land value. The average
franchise value of railroads is four times
the value of the road and all equipments.
If the single tax were law, the railroads in
this State would be assessed on S640, 600, 900
instead of sl6O. 900. OOC.
The Journal says: "If the single-tax
theory were law, s5li, 40, 800, at least one
half of the amount now assessed, would
be stricken out. and all State, county and
municipal taxation would fall upon the
land and lot values. namely, $592, 52S. 920."
Well, suppose it would; single takers claim
that under that system we would not re-
quire one-half the revenue that is now re-
quired. but it is not necessary to extend
the argument in this article that far. We
will take present figures. The present reve-
nue. reQulreu Is $Zl,cO,UUU. 10 raise TINS
revenue by a single tax on land values a
rate of $3.50 would be required. Anyone
who reads this article can easily ascertain
what taxes he would pay under the single
tax system. All he would pay would be
$3.50 per 500 on the value of the land or
lot that he owned. That is, he would pay
that much If we required the same amount
of revenue and the lands and let's were as
-----l 49, 49,
SCISSOR employs fifty-six men ninety days
to hunt up personal property. If the single
tax were law. two men could do all the
work in two weeks. The land values in
the business district of this city are APP
praised at but " per cent. of their true
selling value. 1 suppose business men in
other cities of the State are just as influ-
entail in. their respective cities as our busi-
ness men are. The deficit i'm the appraise-
ment of land values in our business district
is not less than $lS. O00. 600. The franchise of
the street-railroad company is not assessed
at all. The net earnings of the street-rail-
road company would pay a fair interest on
S14. 900. This amount, less cost of plant,
is the value OF the Street-raflrOad franchise.
The Journal says that 1.-The owner of a
modest cottage, worth $1,000, would pay the
same taxes as the neXt-door neighbor with
a house, horses and carriage worth $40, CO.,"
1t is not often the case that you find 81, 600
cottages next door to $4,000 houses. And
if you do, IL simply shows that the lots in
that vicinity are worth on an average
so, 000. Statistics show that, on an average,
improvements on resident property are
equal In value to the value of the lot. II a
man builds a $1,000 cottage on a lot and the
lot increases in value to $4,000 this man
can always find a buyer Cor his property
if he wants to sell. and if he does not want
to sell he should pay to the community the
same amount for the special privilege of
living in that favored locality that his next
door neighbor does. This principle is al
ready applied TO our city affairs. You will
find that the owner of the's ,oc0 house pays
the same amount for street improvements
that his $40, 600 next-door neiphbor paws. If
the single tax were law all would pay
taxes, either directly or indirectly, for all
persons would use land to some extent. The
single tax is not a scheme to place the
more equally distribute the burden by max
ing all contribute to the expenses of our
government according TO the privilege they
hold. 1t would destroy land speculation,
reduce rents, raise wages, increase profits,
| encourage industry, and thereby benefit all.
=. J.. NJ. SPRINGER.
Indianapolis, Aug. 81.
COMMENT.
The trouble NTH the single tax theorists
is that every group seems to have a scheme
of it's own. The theory which the Journal
was considering is embraced in the fol-
lowing petition issued by a national single
tax association and sent TO individuals 10
sign:
1--WE, the undersigned, hereby petition for
the enactment of such measures as may
result in the collection of all public rev.
e~nues-State. county, township and munic-
ipal-from the value of land, Irrespective
of improvements in or on IL. and for the
abolition of all other taxes now levied for
this purpose"
There is nothing in that about a fran
chise value" \ franchise value is an i'm
provement. The land taken for "a right Of
way for a railroad is worth no more than
IL was sold for 10 the company or could
be sold for by 1t. What Mr.. Springer says
about the assessment OF the franchise
value OF railroads is mere speculation. even