The sun., 1908-01-26
BRoKERs DEMAND NEW sDBWAYs.
FhInk Something Must Ne Done 90 Help
the Realty Market.


mink Something Must Ne Done 90 Help
the Realty Market.
The argument for rapid transit construc-
tiOn a. II appeals to downtown real estate
brokers, who presumably have no direct
interest in furthering the development Of
any special neighborhood, il summed up
IN the following communication from John
L. Parish Of Parish, Fisher 4 Co.;
OF the Importance Of an immediate begin
ming on rapid transit work there can be no
question. process of liquidation has al
ready begun, the direct effect OF which will be
TO prevent the oitys further development
until It is checked. Burdened already with a
tight ana extOrti0nate money market a period
OF declining prices would bring widespread
disaster. This is the present and pressing
prospect.
Nothing would 80 thoroughly and decisively
check the downward movement and restore
the tone and spirit of the market TO it's con-
ditiOn OF year ago a. the immediate join
ing OF forces by the city administration and
the Public Service Commission for the con-
structiOn by the city Of an additional and In
dependent rapid transit railroad. Equip
ment and operation may safely be left to
private corporate enterprise and to the proper
time. The matter Is so urgent that every one
interested in the welfare OF the city, either
a. owner, or lender, or merchant. or wage
Garner, should give It earnest and immediate
attention.
The reason put forward by the municipal
administration for refusing to forward
rapid transit work is that the city has so
nearly reached the constitutional debt limit
that IL cannot raise the money that would
be required.
II ia not possible to ascertain from any
OF the annual reports what the present margin
Of credit is. On October IL was apparently
SIS. .56i .sA8.O7. The assessment for tax pur-
poses last year was s.. 7o4, ,OO9 8S2. IL has
been raised by this years assessment to
50 I78 OO9. .0S2. or by s472OOO 600, thus increas-
ing the borrowing capacity Of the city by
al. .2OO. 900, to S68 76l. .s48O7.
This is quite enough with which to make
an immediate beginning OF construction,
particularly when it is considered that under
the most propitiO'Is circumstances not half
Of this sum could be expended within the first
year OF work. And this sum approximately
will be available when the tax is extended
on the books on April 1.
But the city IL really not so limited in It's
resources al this statement would seem
to indicate. The law requires that the real
property Of this city be assessed for tax
purposes at its fair market value. But
this has never been done. Some few parcels
are assessed at more than this rate. and more
at full or nearly fun value, But the vast
uluIbilbg VI bdANclN art tE~trScN OH a RlldlnG
scale downward from 55 per cent, some as
low as IS per cent.
From the Record and Guide tables il appears
that in 77S of the l2,O95 Manhattan deeds
recorded in 1907 in which the consideration
was stated the assessed valuation Of the
properties represented WAS 54,5 per cent.
Of the prices obtained. When il is considered
that these 40 deeds represent for the most
part referees and executors deeds in fore
closure and auction sales where the price
obtained was quite generally under fair
market value the inference is reasonable
that in all the II .258 other deeds in which
the full consideration was not stated the
assessed valuation would be stil lower than
7I.5 per cent. Practical real estate men do
not believe the average assessment in the
entire city to he over IS per cent of fair market
value.
But for the purpose Of this argument lrt
il be assumed thai the assessment averages
80 per cent of such fair market yalue. The
current years assessment being S6l1B OOg -.
49,. an increase Of ~ per cent, Which would
bring the assessed vmue up 10 a5 per cent
Of fair market value. would add 81 235 2OI,
$50 to the rolls and further IN, rea,s he city
borrowing capacity by sl?3WOW0 And
this. If the city administ stTation Is willing 10
merely funl itS duty under the law. can
b" accomplished within fifteen months
This would still leave the assessed valuation
between twenty ana thlriy hundred milhOn-
below the actual fair valuation OF all the
taxable realty, more than sufficient margin
of safety.
such an increase does not imply heavier
taNes, except as to those who are paying
less than their equitable proportion now.
II would result in - lower tax rate for every
body and less taxes for those whose property
is assessed al higher than the average per-
Crntage. And II should he borne in mind
that as much of the borrowed money as the
city invests in rapid transit railroads and
docks returns the city and the taxpayers
y profit over and above its cost