Evening journal., 1913-02-10


could be obtained for the houses on
that street, and the anticipation of
this would cause an advance in the
value of all vacant lots on that street.
Property would be said to have
enhanced in value" but as il woul0
not cost any more TO build a house
on that street than before the free
street cars. it is easily seen that this
enhancement" is all in the value OF
land
when those who owned their
houses on that street sold them. if
they did so, they would naturally take
into account the saving due to the
free street cars aud would charge
more.
THAT is 10 ray IN this degree they
would become land spectators and
would take in the extra price charg-
ed for their property. all the antlci-
pated advantage due to the free street
cars.
Finally Il would be discovered that
It was a matter of indifference wheth-
er a person lived Oh that street ard
paid more rent or lived on another
street and paid fares.
This principle holds true in every
case so that it is easy 10 see that as
long as land is allowed to increase in
value without hindrance, the whole
| benefit from cheaper public service,
from reforms in city governments or
any similar improvement Will go to
land spectators.
Therefore, as things are at present,
land speculation stands as a yawning
bottomless pit ready to swallow up
not only all benefits derived from re-
forms in government, but ultimately
from charitable institutions and i'm
provements in the arts If the poor
had free care for their sick, they could
pay more rent. If they were better
educated and earned more they could
pay more rent, so that after all the
only thing that would happen as the
result of doing these good things
would be that land would enhance
in value and spectators would gobble
up the profit
In the taxation of privilege the
I first and most important thing to do
is positively to stop land speculation.
This can most easily be done by abol-
ising all the taxes which | have shown
to be unjust and increasing the taxes
which now fall upon land values until
it no longer pays to hold land for a rise
Then nobody could make money by
preventing his fellowman from using
the earth. If this be done other re-
forms will count The people will
actually benefit by them, but if this
be not done land speculation will
swallow up all the benefit which
] rpptf11 aprao frnt,, fhc .h,Itffn,, -
striction of any other kind of privi-
lege.
THE railroads with their exclusive
right Of way over a strip Of land
certainly enjoy a privilege which they
should be made to pay for as long as
they charge, in freight rates, all the
traffic will bear. The putl'c is be.
coming fairly well alive to this anC
there is a decided tendency IN legis.
lation to limit this privilege by regu.
lation Of freight rates.
This, if it were impartially and eff.
fectually done would reach this privi
lege quite as we'll as, and in some ways
better than taxation.
But the land privilege can only b,
reached by taxation.
Il have made my argument mainly
an appeal to the sense Of justice
which is one of the highest attributes
of true manhood.
1T is, nevertheless, worth while tC
consider the taxation OF privilege
from the point of view of expediency
and public policy.
"Snce privilege always results
I hn nf Of 10 L..
evidence Of ownership of privilege /.
always to be found in State capitols
court houses and town halls. Priyi
lege can not be hidden as can true
wealth.
"The collector, therefore, does no
have to constitute himself a detectit,
to find out how many things a MAJ
has and whether he is telling thu
truth about them.
"The fact that privilege increases
in value as time goes on makes it
particularly good subject for taxation
to supply the needs Of a GROWN,
community. whereas the fact tha
true wealth always decreases in valu
makes this a bad subject for taxa
tion.
"Since privilege is but the rake-oi
which the speculator gets. over ant
/ above anything required to induce car
} ital and labor to enter production. tn
2 taxation of privilege in no way hin
) ders or checks the production o
wealth.
! "In fact it acts with triple force il
{ Following ways to stimulate produc
ton.
I 1T makes speculation (gamblin
? with inside infOrmation) less profit
feble. dscourages men of ability fror
entering this field and diverts thei
! ability into useful channels.
by destroying the future hope q
the land speculator it makes land
. 5Nners more willing to part wit
7 nd hey canfot use. and thus make
: poesible or the rooI who other
. wise crowd in cities to yet a star
in the way all nations and all com
8 munities have to start-by using II
4 earth
8 1T removes the TAX which the gres
/ mass of people have 20 pay in the cos
+ of the necessities Of life. thereby mai
d ing living relatively cheaper, and leal
d ing the people more TO spend on othe
3. things, thus creating new demands an
C a new market
: ITO anyone who fully grasps th
II economic truth involvad in the diffei
e ence between the tcxation of privilee
= and the taxation Of labo- products,
must be clear hat the III
> precedentei advance which II
. world has made in the lal
century has been due TO the fact thl
|, privilege has been taxed more tina