The Washington herald., 1913-08-07
>KALBFUS ADMITS
TO SPECULATION
Tells Committee He Bought
and Sold for Profit
1t What They Please.
BRIEF Is PROHIBITED
In Long Statement Assistant District
Assessor Defends His Position and
Propounds Questions.

Sharp exchanges between witness and
committee marked the examination yes
terday by the House District Committee
Of Samuel T. Kalbfus. assistant District
Assessor. Members of the committee re-
hashed in part through their questions
the Hortsman charges which the District
Commissioners investigated more than
wear ago. KaIbfus declared he came out
clean. Representative George sought In
vain to draw from him an admission
that il was q Scotch verdict. He de-
Clared that following the conclusion OF
the trial, Commissioner Rudolph had told
him that he CMr. Rudolph, saw no harm
in Kalbfus' real estate operations.
Mr. Kaibfus appeared with volum'
ninous brief which the committee refused
to permit in the record. Kalbfus sought
to read it in answer to questions. but
the committee insisted upon direct
answers and SO framed their questions
that the brief was Of little use to
Kalbfus.
KsIbfus was not so fearful of the word
Speculation" as others, and members OF
the committee failed to worry him by
applying it to his operations. He admit
ted that he had bought and sold real
estate with a view TO making money and
was willing 10 have it called speculation
II the committee so desired
Had Right to Bay.
DO you think it is right for an asses
sor to do this" asked Representative
George.
Il always thought I had a right to
do So
In his formal statement, Mr.. Kalbfus
declares that the Board of Commissioners
never has forbidden assessors to invest
in real estate. nor has Congress.
hA
who have held office during the more
than a quarter of a century I have been
in the employ of the local government,
have all known that assessors, when they
were so minded, bought either for home
or investment purposes real estate IN the
District, and these Commissioners have
never passed any regulation forbidding
assessors from SO doing.
After the public hearing in the fall OF
1911 the Commissioners passed no such
regulation. although my counsel publicly
called their attention TO the absence Of
one. and suggested one II the Commits
sioners were of the opinion that dealing
in real estate should be prohibited.
After the hearing OF 1911, when I had
under consideration the taking OF an in
terest, together with Allen E. Walker,
in the lots purchased by him in American
University Heights. I frankly went to the
then president of the District Commits
sioners, Mr. Cuno H. Rudolph, told him
about the prospective purchase and asked
him whether 1 was at liberty to take an
interest in il. Commissioner Rudolph,
under whose jurisdiction the assessors
office WAS, informed me that there was
absolutely no objection to my entering
that transaction, and fully consented TO
my doing so.
Puts 1t Up to mmfttee.
Apparently, some of you disagree with
the views l have just expressed. II the
members of this honorable committee are
of opinion that those employed as assist
ant assessors in this District should not
make any investments in real estate,
NAV l ask you to consider whether or not
such an attitude would, in effect pre-
clude men SO employed from making any
investments whatever in the city Of their
home? Suppose a man in my position in
vested in the stock of the Washington
Gas Light Company, a public utility, with
respect to the taxation Of which we
have had most hotly contested issues
and long drawn out litigation. Would
not a member of the board who had to
pass upon these contested matters sub
ject himself TO criticism II he held stock
in the great public untility. 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"
Assistant Assessor kalbfus went into
an extensive explanation of why be con-
siders the law to provide for tax assess
ments at twc-thirds value in the Dis
trict. He asserts that such rule is a
fair Interpretation of the legislation of
Congress on the subject. Mr.. 1albfus
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 assessors
should not override the long established
rule for assessing property"