Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-07-05
ABOUT CORPORATE WEALTH
Discussion Last Evening by the Members of
the Statistical Association.
Opposing Views as to the Value of
Street Railroad Franchises-The
Property of Cities.

The National Statistical Association, at
its I&5tponed meeting held last night at the
Columbian University, had an interesting
bout with economics. The income tax and
the property holdings of corporations and
municipalities were the subjects that en-
crossed attention. The income tax, how
ever. did not provoke any discussion. being
alluded to by means of paper that had been
received from Senator Walsh, recently elect
ed member of the association. In this
paper, which was read by the secretary,
Chas. S. Hill. the Senator reaffirmed his ar
guments in support Of the tax which he ad-
vanced in his speech in the Senate some
months ago, urging that the levy is just
and equitable, and places the burden of tax
alton on those most able to bear 1t.
IL was expected that a controversy and
discussion might be aroused by the opposi-
ton OF the views Of Senator Hill to those
of the Georgian. but this did not occur. The
side of Senator Hill was represented by
Senate document, comprising letter writ
ten to Senator Hill by Worthington c. Ford,
chief OF the treasury bureau of statistics in
which he demonstrated to the Senator that
the income tax would not prove a benefit to
either citizens the government. This
document was not read, however, as 1t was
decided that Mr. Ford should be present
when this was done. Accordingly DIR. MINI
mo, his predecessor in office proposed his
name as a member of the association, and
ne was unanimously elected. At the next
meeting Mr.. Logan Carlisle. chief clerk of
the Treasury Department, will address the
association on the figures relative to the
tax. and ii is expected that later Mr.. Ford
may give paper explaining his figures,
which are not wholly consistent with those
In the possession of Mr.. Carlisle.
Not Included I'm Statistics.
The real debate Of the evening was pre-
tot hxye 70,
Lockwood of the customs division of the
treasury. who arose in response to the invi-
;ation of the association to call attention to
the fact that there has not been, in any
available form, compilation made of the
amount of wealth or property possessed by
cities. states and the nation in the way of
real estate. such as parks, school Sites ETC.
and franchises that produce revenue
Municipal corporations have never yet, he
SAID, given separately their belongings. and
ne mad never seen an accurate statement of
what the United States would own ii it were
considered an individual There had been
several vague, general estimates made of
TINS sum, but not in a reliable form.
For instance, this item would be vastly
important in considering the subject of the
debt of city. New York. as an example,
has now debt of SlI0OOO.OOO. with a sink
ing fund of about SIO.OOO,OOO thus reducing
the actual Indebtedness down to about $780,
op,tD But there is also property held by
the city, in the form of parks, franchises
docks and other assets, that, if capitalized
at ar iair hgure. would give the city credit
Tor an enormous sum of millions which
would far exceed the indebtedness, and
show that New York has status much
more to her credit. The landed property of
s me elty alone might almost be equivalent to
$+OO,OOU,OUO What Is wanted, said Mr.
Lockwood, is to start an inquiry among
scientific men to show what property is held
Sy the states and cities and by the United
StaIes' 10 see what these corporations. in
other words, are really worth. This has
heretofore been left largely out of any state
ments on the subject of the wealth of the
nation that have heretofore been made.
These values are not taxed. of course and
therefore are not capitalized.
The Corporate Wealth.
DR.. Nimmo suggested that this item must
have been included in the calculations of
Mr.. Upton. the special agent of the census
who Investigated the wealth questions, and
who footed up the total wealth of the IA
ton at about $4,000. 100000 which includes
every kind of property.
This. however. was not altogether agreed
to. and Mr.. Lockwood went on to state that
the street railway franchises which are the
means OF great revenue to cities, are not
capitalized or estimated as wealth In any
OF the statements; They form a sort Of
revertible to the city after a
certain period of years, during which the
city derives a revenue, and which is there
fore to be considered in the light of value
much as piece of land which produces a
regular rental. He suggested that Congress
be asked by the association to institute an
inquiry into the subject of The corporate
wealth of the nation, and he suggested the
name Of Carroll d. Wright as the most
likely official to be designated for this task
This brought Mr.. Smiley to his feet with
the statement that most. if not ALL of the
statistics mentioned by Mr.. Lockwood have
been coiiated by the census office. and are
now In that bureau, though they may not
yet have been put out In the publications
He spoke particularly Of the parks that are
owned by the cities, and pointed out the
difficulties that are in the way of an accu-
rate or even a fair valuation Of them as
at this time. 50 far away from the
time OF their requirement by the Corpora
tons. Among the items of value that have
on the subject are cemeteries and gas and
water plants where owned by cities.
Street Railroad F'ranchises.
Mr.. Smiley thought, though he was not
certain. that these, or a general estimate
of them, had been included in Mr.. Upton's
total valuation of the wealth of the nation,
though they may not have been itemized.
He went on to speak of the street rail way
franchise as too nebulous and fictitious
value to be included in such an inquiry.
There are too many elements, he said. en-
tering into the matter 10 create iiuctua-
ton to permit these holdings to be consid-
cred as wealth in the same sense as the
park or the gas plant. This precfpitated a
long discussion, which ranged through the
entire length and breadth of political econ
omy before Dr. Nimmo suggested that it
was 1890 o. clock, and then the association
Vice President Stevenson and Senator's
Cullom, Teller and John p. Jones were made
members of the association, and
Jerry Simpson vas elected
an active member. The meeting was pre-
SIDED over by Mr.. J. Edwards Clarke of the
bureau of education, one of the vice presi-
de nts.
Entertainment mt Soldiers Home.
A highly creditable entertainment was
given by the Washington Musical Company
at Sheridan Hall, in the Soldiers Home
last Tuesday evening. large