New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-09-10
HIGHER TAX ON LAND VALUES
A Suggestion for the Relief OF Poverty
and Overcrowding.

and Overcrowding.
To the Editor Of The Tribune.
Sir: Having noted in the letter OF your
socialist correspondent, Adam hosehDeis
in your issue OF September 2. that ne docs
not believe in "a profit sharing scneme oy
a private firm" as opposed to a com
munty Of interest with the general pony
Of labor" permit me TO suggest that he
try 10 be an opportunist and aid those OF
us who are working for social oettermeh'
along practical lines. For instance, Is II
not plainly obvious that Of the several I'M
portant causes OF poverty in New YORK
CITY extortion by owners OF land is DOUBT
less one OF the most farreaching In It's Ell
fects?
Although we have here the most conceh-
trated population on the globe, II has peen
computed that there is land enough INSIDE
the corporate limits of the city to give 10
every head OF a family from one-elghth 70
e-quarter Of an acre Of good ground
The trouble is that most OF the land is
held out Of use. Without doubt there are
10000 acres so held until the unearned IN
crement has risen to a point where the
land exploiter can get his price.
Would II not be we'll for our lawmakers
TO Introduce the small ground value tax IN
vogue in Australia where II was employed
to hit Just such spectators, who went IN
advance of the pioneers, acquiring the LAND
and holding It against use until they got
their price? They would not use the land
themselves or allow others to use It, ana
so they paralyzed production, discouraged
private initiative and put burden on
thrift.
This. of course, is tax on the land
alone-leaving out all improvements-the
value being what 1t would sell for in the
open market This tax on land values
alone is called economic rent"
The one great cause Of poverty rs the
exemption of land values from adequate
taxation. and this is cause that can be
most readily removed by legislative action.
The average proportionate assessed value
Of many tenement apartments is $3.50 and
Of the land site $50, total OF $1,000. The
owner expects a net return OF per cent on
the 5000, or s120 a year. He Will admit
however, that the value Of his land is Gre
ated by the people who want to use II, and
he cannot show why he should be entitled
to as large returns upon the land values
created by tenants as upon the build
ing. whose value the tenants have not SIM
Harry created. II by any means these own
ers can be constrained TO forego all but z
per cent net profit on this land the ground
rent would be reduced by economic laws at
least $50 a year"
The passage OF the Sulvan-Shortt bill
Senate Print No. 2,2l0 would aid in
bringing about better conditions as 1t
would make the tax rate on all buildings
one-half the rate Of taxation on all land
and so tend 10 curtail the profits OF land
exploiters, 10 make land cheaper and 70 re-
duce rents.
The profits OF several prominent real es-
tate owners, syndicates and companies, as
has been shown in print, have been from
% to 500 per cent The Paris McDougal
Company, on a capital Of $1,000 paid out
in dividends in four years time twenty
times its capital stock and then wound up.
Surely this city is a paradise for the
real estate operator who buys property not
10 use or improve but TO draw from II
large unearned increment. And the penalty
suggested is so small, while the social-n1ade
increment is sure.
I would suggest, for the better informa-
ton of the public on this important subject,
that at the coming budget exhibition, IN Oc-
tober, there should he a special exhibit
showing the possible new sources OF reve-
nue. now existing in this city, and especially
what new revenue in the sense OF increased
revenue could be justly secured from
higher taxation of land values
JOSIAH &. PUMPELLY.
c,,ror,it " 7 Sent 4 1911