The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1906-11-12
Questions as to Reasons for
Lethargy in the Local
Building Situation.
OPINIONS ARE VARIED
Exorbitant Price of Building Ma
terial Advanced By Some As
Cause of Standstill.

Is the combined tax levy of Lake
county and the city of Hammond re-
sponsible for the retarding of the
building growth in Hammond? The
small man, who had intentions of
building, a,d he who pays the rent.
seem to think so. Not so the man who
owns property. He ascribes whatever
lethargy might exist to the high
priced building material, but declares
that. nevertheless. buildings are spring
ing up all over the city.
The small builder who, in the ma
iority of cases. must borrow the money
for his house, and pay six per cent. in
terest, and the man who pays rent
and an enormous one, as a rule-are
studying the tax question more seri-
ousIy than their more fortunate neigh
bors
The would-be builder says that the
combined city and county taxes. which
last year amounted to 1921 on the hun
dred dollars, and the six per cent. in
terest on money invested, do not war
rant the outlay and it's responsibilities
when the rent returns amount to only
ten per cent. on the investment. In
addition, both the county and city taxes
are higher for the year 1907, a raise of
sixty-five cents having been made for
Hammond alone for the coming year,
and a raise is looked for from the
county. This, says the small builder,
in connection with the six per cent
that must be paid for borrowed money,
bring his expenses higher than his in
come.
The man on the other side, however,
sees the situation through different
| spectacles The taxes do not seem to
worry him; in fact, when he is asked
how high his last assessment was he
! seemingly has forgotten it, and does
not know at what rate it was levied.
He says the small builder is afraid
of the street and sewer assessments,
and that building material is exception
ally high.
He admits that small builder here
and there may be holding back in order
to wait for lower city taxes, but main
tains that returns based on present
rentals yield the landlord more than
ten per cent. on his investment
The taxes in Hammond for the year
4 1907 were raised last September from
S2.05 TO $2.70, a raise of sixty five cents.
1t is more than probable that the small
builder is justified in holding back to
await lower city taxes. which may
come in 1905 but will not be lower
than s2.25. The latter figure is con
sidered a good average for a city the
size of Hammond.
/ The sixty -five-cent raise for next
year was evidently necessary one. and
the city Will be benefited directly
while the taxpayers. both large and
small, will be benefited indirectly.
It is explained that with the sixty
fve-cent raise it is the intention to
raise s3S,OOO. which money will be ap-
propriated for two fire stations. and
sewer and sidewalk improvements
around Harrison park.
The officials We're inclined to think
that they could not very we'll ask the
citizens to pay for their improvements
when their own are being neglected, as
is the case with Harrison Park The
two fire stations are an admitted need
and are now sure to come. BY giving
Hammond two additional stations il
not only gets fire protection but fire
insurance rates must come down.
No definite sites have yet been fixed
upon for the two fire stations, but it is
understood that one is to be erected
north of the river near the factory dis
trict, while the other one will go up ir
the south or southeast part of town
near Harrison Park