The Washington times., 1913-08-06

dealing in real estate should be pro-
hIbited.
After the hearing of 1911, when I
had under consideration the taking OF
an interest, together with Allen E.
walker, in the lots purchased by him in
American University Heights, frankly
went to the then president of the Dis
trict Commissioners, Mr.. Cuno II. Ru-
doiph, told him about the prospective
purchase and asked him whether j was
at liberty to take an interest in it.
Commissioner Rudolph, under whose
jurisdiction the assessors office was,
informed me that there was absolutely
no objection to my entering that trans
action. and fully consented to my doing
so.
Sees a Disagreement.
Apparently, some OF you disagree
with the views l have just expressed.
IL the members OF this honorable COM
mittee are of opinion that those "m-
pIoyed as assistant assessors in this
District should not make any invest
ments in real estate, may / ask you to
consider whether or not such an atti-
tude would, in effect preclude men so
employed from making any investments
whatever in the city OF their nome?
Suppose a man in my position invested
in the stock of the Washington Gas
respect to the taxation Of which we
have had most hotly contested Issues
and long drawn out litigation. Would
not member of the Noard who hal to
pass Upon these contested matters sub
ject himself to criticism II he held stock
in the great public utility. whose taxes
amount to thousands and thousands OF
dollars a year?
THE same is true with respect to an
investment in the stock of either Of the
local traction companies"
Explanation Extensive.
Assistant Assessor Kalbfus went into
an extensive explanation of why he con-
siders the law to provide for tax as
sessments at two thirds value in the
District. He asserts that such a rule
Is a fair Interpretation Of the legislation
of Congress on the subject. Mr.. Kalb-
fus argues that for years the public and
the assessors have so understood the
law and that without specific direction
from Congress "a mere board Of as
SCISSORS should not override the long
established rule for assessing property"
Mr.. Kalbfus continues:
by the act of March 8, 1888, the Con-
gress of the United States indicated
that real estate should be assessed at
the true value" of the land and the
improvements thereon. For the nine
teen years from 1883 to 1902, the legisla-
tive intent was to be found in that act
In 1902 II Congress intended that real
estate in the District should be assessed
on the basis Of its true value, then there
was absolutely no need whatever for
legislation by Congress on this subject
With the existing law requiring assess
ment on the true value basis, Congress
passed the act Of July l. 1902.
Tax Plan Comprehensive.
'I respectfully submit to the COM
mittee that an examination of this act
does not lead to the conclusion that
il was a hurried piece of legislation.
True, 1t is carried on the appropriation
bill for the fiscal year ending June 30
1903, but IL will be found that Section
to Section Of that act comprises a
very comprehensive plan Of taxation
OF real estate, taxation OF personal
property, and license taxes. The ex-
ceedingly comprehensive personal tax
law of the District will be found in
Section s Of the act Of Congress re-
ferred to. Section Z comprises forty
eight separate paragraphs comprehen-
sively covering license taxes"
THE matter contained In this tax
legislation was the subject Of great con-
sideration by the District Committee OF
the Senate, and IL I remember correct
ly, that matter was embraced in what
was then known as the Mcmillan bill,
taking its name from that Of its author,
the late Senator Mcmillan of Michigan.
Now IL will be remembered that prior
to the passage OF the act of July l,
| 1902, about which / am speaking, by
express statutory enactment Congress
had fixed the basis for real estate as
sessment in this District at the full
value thereof. With that legislation in
existence, the Congress Of the United
States deliberately passed section of
the act Of July l. 1902, which, on this
subject matter, reads:
That hereafter all real estate in
the District Of Columbia subject to
taxation, including improvements
thereon, shall be assessed at not
less than two-thirds Of the true val
ue thereof, and shall be taxed one
and one-haf per centum upon the
assessed valuation thereof
Intention of Congress.
Il invite attention to the word here
after in the section from which 1 have
read. Now, / arrive at my conclusion
that Congress intended US to take two
| thirds of the true value as a basis of
taxation: first, because IL that was not
| the intent Of Congress, then / was and
am utterly at a loss to know what
Congress intended by this legislation.
"A man in my position presumes that
Congress has some purpose in legisla-
| ton. / cannot presume that Congress
| II II was the intention Of the Congress
| that property should be assessed at its
full value, then why legislate? The
| legislation then in existence so pro-
vided. There was no common sense for
| further legislation on the subject of a
| basis for assessment unless Congress
intended to change the then existing
1 h41eN g,N.