The San Francisco call., 1898-11-02
TAXATION vs. LAND CONVERSATION


 methods of taxation.
 In New York the discussion of this question harks back the report made to the Legislature in 1871 by commission consisting of the eminent economist, David A. Wells, and Edwin Dodge and George w. Cuyler
 These gentlemen were appointed by Governor Hoffman to revise the Jaws for the assessment and collection of taxes, under authority of the Legisla- ture Their report is textbook the subject of assessment and taxation of property for public rev enue It was printed by Hafpers, and is scarce as all the official copies destroyed when the State Library was burned Albany. References to it have caused. some readers to think it recommended the Mcguire plan of land confscation This is a mistake. As published by Harper the report is en- titled Wells, Local Taxation.
 The report recommends that all railroads be taxed by State authority, and that the sole assessment be upon the franchise at a valuation equal to the aggre gate market value of the stocks and funded and float ing debt less cash in hand exempting such corpora tions from all other taxation. The revenue derived to be taken for the general fund, in Pennsylvania or be distributed the towns and cities in which the line runs MT. Wells says that to take it for State tax is farer since the franchise is given in the of all the people, and every city through which the line runs has had the valuation of its property and the trade and convenience of its citizens increased by reason of the roads construction"
 Secondly-The commission recommended taxation of land, exclusive of buildings, at uniform valua- ton of so per centum of its marketable fair value
 Thirdy-Tax the house or building as real estate separately at the same of valuation the land 50 per cent and then assuming that the value of the house building irrespective of its contents be such contents furniture, machinery any chattes what soever, Is the sign or index which the owner oc- cupier puts out of his personal property, tax the house or building on valuation of 50 per cent ad- dona to it's real estate valuation, the represen- tation of such personal property or in other words, the land separately 50 per cent of its fair ketable valuation, and tax the building separately from the land as representing the owners personal property, on a full valuation.
 These propositions rest upon the fact that the ket value of real estate always proporonate to and dependent the amount of personal property or rather productive capital placed upon it. or in its immediate vicinity Land in itself has no original value, it cost man anything to produce 1t. If there is no personal property productive capital connected with reflected it, it will not sell in the market or only at nominal value. If by chance any buildings should be such land, they will pos sess no rental value Only as personal property or productive capital brought in connection with land does its value become appreciab1e and augment The report continues Applying the proposed system for taxing personal property through buildings rentals as its representative we should find that the aggre- gate of taxation would be lowest in the sparsey settled agricultural districts of the State Property here is mainly in land, whose low marketable valua- ton would be still further reduced the list if a valuation of 50 per cent taken the standard for assessment. The marketable value of the bild- ings is low also and what should be especially borne in mind is this circumstance, that here, and in fact in all agricultural districts. the value of the buildings Ais much less than the value of the land with which