The Washington herald., 1908-04-12


Your plan for financing the District
expenses is right in the main. but its
main weakness lies in the fact that ii
leads to high taxation. much Of the prop
erty of the city now being assessed for
more than its selling value
These words were addressed to Repre-
sentative Gardner OF Michigan. at the
recent meeting of the Washington Board
Of Trade after the members had listened
to Mr. Gardner's clear recital of the work
of the House subcommittee on appropria-
tions in framing the District bill for the
next fiscal year.
The statement made by Mr.. Edison was
a surprise to many persons who had not
given the subject some attention. Never
thelcss il is a fact that much property.
especially in the residential portion Of
Washington, Is assessed and pays taxes
on a valuation greater than # viii bring
in the open market.
some Concrete Illustrations.
A few weeks ago a house and lot were
sold on Iowa Circle at auction The prop
eFty is valuable. the bidding was quite
spirited and the price was carried much
higher than is usually the case in such
sales. It was finally bid in at about $1,000,
and the same property is carried en- the
assessors books al about $1,000 valuation
Two pieces Of property in one OF the
downtown squares. between Thirteenth
and Fifteenth streets and I and L streets.
are listed IN the Office Of a prominent
real estate broker The owner is under
stood to be ready to sell the property.
and he has placed only one stipulation on
his agents, to get the assessed value for
the property; and the agents say it will
be d difficult thing to do.
Two lots were sold about a month ago
In what Is supposed 10 be one Of the
growing residential sections Of the north
west Both brought nearly 10 cents a
foot less than the assessed value.
piece of property fronting on Ninth
street northwest was sold last month, and
the money paid for il figures out 3 cents
and l mill above the assessed valuation
In fixing some of the awards for dam
ages about the New Union Station and
plaza, the jury of appraisement found
some difficulty, because the owners de-
manded the value which the municipality
had put upon the property in the biennial
assessment.
should BE Assessed at TyvO-thirds.
Seeking TO find reasons for the condi-
tions set forth in the remark of Mr. Ed
son. and illustrated by the examples II
was possible to pick up at random, one
finds that the law governing the assess
ment of property in the Distriet-at two
thirds of its value-is not observed IN
practice.
An observant real estate man, IN talking
about the matter, said that the assessors
have to be guided by a variety Of con-
siderations in making the assessment, In
the first place he said, through Congress
and the Commissioners there is an ever
lasting call for larger revenue TO meet
the vast expenses TO which the District
government has been put In recent years
in tie way of permanent Improvement.
He said the assessors seem tC have a
good deal OF admonition from high official
quarters that the revenues of the munich
pality must be kept up to high-water
mark toNmeet this call for money.
Assessors Face Big Problem.
They go out. continued the real estate
man. and adjust the valuation OF real es-
tate with the idea OF raising so much
money. He said that in his observation
the problem worked out in this way. A
certain section, say the territory around
one OF the circles. would become fashion
able as place OF residence. One or two
fine buildings would be put up. the real
estate men would begin 10 advertise prop
erty there, and there would be a local
boom.
The assessors. seeking always new
sources of revenue would appear upon the
ground and put the assessment az the
boom fgure-that is, they would try TO
assess the property al swo-thirds of its
boom price value. A few years after
ward when the boom had passed and the
selling value OF the property settled back
to normal value. the assessment would
be too high, but tie. real estate man said
it was d very difficult thing to get an
reduced after It was once
put upon the land of a given square
Benfent with Assessors.
The real estate man was not disposed
to criticise the assessors. as he thought
they performed their duty as they saw
it. with judgment and discretion. The
trouble seems 10 be in the difficulty Of
getting at the value OF the property as
sessed. Under existing conditions Il is
ali gussswork If the owner were forced
TO put value on his holdings for tax
purposes, he would guess 100 low II a
real estate man or attorney affiliated with
clients who derive q revenue from prop