Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-01-26
Arguments in Support of ''True
Consideration" Bill.
AGITATION is NOT LOCAL
Subject Regarded as an Acute Ons
in Other Places.
WOULD AID TAX COLLECTOR
Generalization and Undervaluatiou
Both Declared to Be Evils-Tax
Plan to Lower Rents

Arguments. both oral and written, ali oe
them favoring the enactment of the bill
which proposes to require the statement
or the true consideration in real estate
transactions in the District. were heard
by the House District committee at q
'two-hour session today In the course of
the hearing 1t was shown that the agita-
tion for a change of this character in tho
method of real estate operations is not
confined to the District Of Columbia, since
the subject has been under discussion n.
Wisconsin, Illinois, New Jersey and in
Canada. and true consideration bills
have been introduced in the legislatures
of the three states named.
For a time during the hearing the com
mittee room literally sparkled with rea,
forensic fireworks. because the real es-
tate operators, who are interested In
sitting the measure. were well repre-
sented as to number and at several
stages Of the proceedings they took issue
with the supporters OF the bill. Even
after the hearing had been adjourned
and the members had departed to the
regular session Of Congress the debate
continued, and large wasers of think
money were offered when the question
came up regarding the maximum rate OF
erty in the District.
Finally the question was referred to
Assessor Richards by telephone and he
connrmed the contention tnat real estate
In the downtown business section Is as
sessed as high as $40 . foot
Tell Truth In Brooklyn.
The hearing had barely got under way
when Representative Redfield Of Brook
lyn, N. Y. who In his home city II large
~ interested in the real estate business,
maoe the statement that, wnile there Is
no law compelling 1t, the custom yet OBJ
tains in, Queens county OF stallng the
true consideration in practically ala real
estate TRANSACTIONS. he declared tness
is little oppOsllion by either real estate
brokers' or property owners to this
metnOd o. c0paucfing business. and he
asserted no harm 10 oone to business.
Mr.. Redneid also stated that n- has
been member or many condemnation
boards and in this class or work he
said tnat 1t had been possible to reach
very definite results winch were Just,
alike to the owners OF the property and
to municipality, because the condem-
nation boards had been able by trac-
ing q series OF transactions In prop
erry In any neighborhOod to determine
at the time OF condemnation.
Chairman Johnson read to the commit.
tee a statement which was presented by
Representative Henry George, jr.. OF
New York, who is member OF the COM
mlttee, but VINO was unable to be present
today. Mr.. Georges statement included n
letter from Lawson Purdy. president OF
the board OF taxation and assessment or
the highest authority in the United States
on the subject Of municipal taxation.
Mr.. Purdy had seen copy or ii. X.
1ol3S, and in commenting upon it he said:
Il believe the bill will accomplish re-
suits which are much to be desired, and
which would be OF immense value to
other parts Of the United States through
the effect of having such bill enacted
in the District Of Columbia"
"A year ago a conference was held in
Utica, N. Y, which was attended by dele
gates representing cities, villages, board
Of supervisors and boards Of assessors,
and many city-wide associations and
statewide associations. and at which
posed bill which would require the state
ment Of the true consideration A week
ago. at another conference, in Buffalo, the
proposition was reaffirmed by a vote OF
81 to H."
Holds It an Advantage.
Mr.. Purdy also referred to q letter writ
ten by James L. Wells former president
OF the department of taxation and assess-
ment Of New York and now None Of the
leading real estate brokers and apprais-
ers of the borough Of the Bronx, in which
Mr.. Wells offered his support to the same
proposition. which is now before the New
York legislature in q bill which is in
charge of State Senator Martin SAKE.
Mr.. Wells gave his opinion an q
property owner. real estate broker. auc-
tiOneer and appraiser, stating that he
had been in business for & tnirty-nys
be advantageous; that 1t would place
no burden upon real property, but on
the contrary. that 1t would be a benedt
your bill would restore the old and
honest method in naming the true con
sideration." wrote Mr.. Wells. 1T
would tend 70 stop the dishonest prac-
tice Of inserting inflated prices for the
purpose of manufacturing evidences
OF values, Of creating fictitious book
keeping assets and Of misleading in
tending purchasers OF real estate and
loaners on bonds and mortgages. 1t
transactions. stimulate investments
and promote reliable building opera
tions. Because OF the ignorance and
the uncertainty which. now obtains
of real property, many persons are
prevented from becoming purchasers
and many persons have no confidence
in real estate as security. Such
bill would help the tax officials to cor
rect excessive valuations as well an
undervaluations Of real estate"
Being Widely Agitated.
Mr. Georges statement also included
letter written by e. L Heydecker, as
sistant to President Purdy. to the effect
that the question OF true consideration
is being widely aGitated and 10 the SUBJ
ject OF constantly growing interest Mr..
Heydecker said that q ''true CONSIDERS
tion'' bill was before the Illinois legis-
lature last year. before the legislature
of Wisconsin In 1907. and before the legis-
lature Of New Jersey last winter. He
also said officials In Canada are showing
much interest In the subject.
r. r. Monahan spoke before the COM
mittee in favor OF the bill. and he made
the points that the measure. IL enacted
can do no injury to legitimate real estate
business: that q great injustice is per-
petrated through the recording Of what
he characterized as ''onc1al lies'': that IL
would tend to correct the assessment
system OF the District Of Columbia.
which, he said, was atrocfous: that IL
would revise the whole system Of taxa
ton In the District, and thus compel the
reduction OF rents, because Il would
bring the real value Of al the land iute
use.
now withheld from the market eWatting