The Montgomery advertiser. [volume] (Montgomery, Ala.) 1885-1982, 1906-09-27
LEAGUE OF CITIES
EIGHT HUNDRED DELEGATES AT
TEND THE SESSION.


rbicaeo. Sept. 26.--The tenth annuai
convention of the League OF American
,s,,.,o,nsi,ties convened at the Audito.
r.,rn todav with 500 delegates presen.
$50, ali rarts of the United States anu
Tsnada Mayor Dunno welcomed lno
,-is,tors president Rhett Of the League
Following the reading OF report Oh
the committee on uniform natiohs, te 81,
resentatives by Hugo Grossner, Ta~y
so,, pu-dy. secretary of the New horN
re- sssociation spoke on THE lnnu-
ence of Taxation on the Prosperity oi
the cities" He said In part:
sTn 1878 Ernest Ensley. a wealtny
.iartar ~ Tennessee, urged an amenu-
ment TO the Constitution so thas no,n
lrg should be taxed when is OF Valus
"a the state, that could ana MiS
.s,s away. or that could ana Wouiu
an,a m II The rule has become an
oyiom hut before 1T can be applied the
Ssonstitntion of about thirty-f1ve STATES
nnust be amended, and ] shail oiscu
~ what can be accomplished In most
oittss nv executive officiais under en-"
listing law. "a. ..a az tts
citizens are Identical Revenue mus
- sn,nta and economically admins
tseaS Needless expenditures must De
avoided. such as the unnecessary streets,
80 eafamon to all our cities. which n'ust
he severed, paved. lighted, cleaned ana
noliced. To avoid opening unnecessary
streets, the development OF the Guy
nrst be uniform and compact, YET WIN
out oyerorowding. Every lot must os
~ut 10 its hest use In our cities not
half the lots are put to the best use.
awe sec worn-out wooden ouilolnss
nm lots which ought to be improved
with modern offices or lofts; tumD!eo
dawn tenements on sites needed Tor
factories, lots entirely vacant and un-
used needed for stores, factories OF
dwellings, In the SUBURBS are nun
Srsds of acres of unused land. inter
seeted by streets, which ought TO De
used for gardens, -,
@The principal source OF revenue IN
all American cities is the tax or real
estate. yet few men take the troupie
- ard out who pays the real estate
tax. The /difficulty in answering this
question arises because real estate "
two things of different nature joined
under one name, and 1T is sure to as
tinpuish effect OF the tax In SO far as
A. falls on the value of land from It's
effects as it falls on improvements. the
effect of the tax on buildings 10 the
same as the effect of the tax on any
labor products.
sThe tax tends to check the erection
OF buildings ana WnSH lhC SNPPA| -
decreased, the rent rises by tie amount
of the tax. The tax on land not only
cannot decrease the supply OF land as
does the tax on buildings, but fpbAy IN
creases the supply because 1t induces
some owners to sell or improve sooner
than If there were no tax. The real
estate tax SO far as 1t falls on the
value of land exclusive OF improve
ments, makes land cheaper and easier
to get. reduces rentals and tends t.
force land to be put to the best use.
TheNtax is no burden on owners so
long as the rate is uniform, because
the purchase price paid was reduced
by the amount of the tax capitalized at
the current rate of interest
Assessments are generally imper-
fectly made with disregard of the law
which requires assessment at market
value. Moreover buildings are almost
always oVer-assessed as compared with
land. Buildings can never be worth
more than the cost Of reproduction and
very soon after they are created, de-
teriorate for wear or by comparison
with more modern buildings. Land, on
the other hand, in all progressive cities,
is worth on the average more each
year than the year before. In order to
secure an equitable assessment, 1t Is
essential that the value of land should