Evening star. [volume] (Washington, D.C.) 1854-1972, 1898-01-17


Attacks have recently been made before
congressional committees upon alleged un-
der assessments of large business proper
ties in this city. But the student of public
economy who has given full consideration
to the subject will readily agree that I'M
less some more subs tantial reason be given,
the matter may we'll be dismissed as not
worthy of serious consideration. 1t is the
approved practice in every city where pro-
gressive ideas prevail to exempt from all
taxation for given period invested capt.
tai when the same gives employment to its
people, or gives aid to the business inter-
est, bank capital does. The benefit re-
ceived by the city and people outweigils
fourfold the immunity given through re-
duced assessment. Everybody knows who
has given a moments study to the ques-
ton that the associated capitalists who
erected the National Savings and the
Washington Loan and Trust Company
buildings would never have put up those
magnificent monuments of the city's pro-
gress If their enterprise was to be rendered
Improbable through an illiberal policy of
assess IIent and taxation Take the Inter-
Ocean building, the Atlantic, the Sun build
ing, the Palais Royal the Boston Variety.
Woodward & Lothrop's and the Willard
building, and the buildings of many others
who are spending their money to add to
the citys adornment-they should not be
singled out as the pampered favortes of
would not have shown that familiarity
with modern practice in the matter of as
sessment if they had done otherwise. The
high price of property in business sections.
is largely fictitious, and grows gu. Of the
6Csire of merchants and others TO ne Oh;
the line of frequent travel. There being
only limited space on such line, the
values are inflated by the competition. This
is clearly shown by the difference between
the south and north sides of Pennsylvania
avenue. Now, it would be clearly unreas-
enable, and not to the city'S interest, to
tax business out of these sections. 1 doubt
very much if the majority of the + street
property between 9th and 18th streets pays
per cent on the capital invested, and yet
ii is proposed to reduce this small sum
further by compelling the owners to pay
on the inflated value.
The late Henry George made exemption
from taxation on improvements the very
corner stone of his theory, holding that
every encouragement should be given to
capital to improve the waste places and
beautify the city. 1t is well to call atten-
tion TO a fact in this connection not gener-
ally considered. That is, that all invested
capital in real estate stands to pay q
charge of liz per cent through taxation,
and must take the chance Of recouping
itself from the returns, If any, on the in
vestment.
From the foregoing / think 1t will be
clearly seen that no injustice is done any
one in the cases mentioned-the corpora
tons Eamed comforting far larger benefits
on the community by giving employment.
&C. to the people. less liberal policy
would strange existing ones and seriously
retard the growth of the city. We would
initiate the folly of the man who killed the
goose that laid him golden eggs-our av-
arice would outrun our discretion.
DANIEL MURRAY.
January IA, 1898