The Washington herald., 1914-07-09
Result of system.

| CsuAt VI Systchn'
TT is claimed by those who have given
the matter consideration that as a re-
suit of the system by which the Fed
eral government pays one-half of the
expenses OF the municipality the local
property owner pays about one-half OF
the taxes that are paid by persons own
ing property in the other cities OF the
United States OF like size. II this be
true II is certainly unjust to taxpayers
living elsewhere TO be compelled to
contribute so largely to the expenses
of Washington, and this becomes a
very legitimate and proper subject for
inquiry by a disinterested and intelli-
gent commission.
cent valuation, the cities OF the United
States OF like size of Washington pay
$3.50 on the 500 of assessed value.
while the city of Washington pays only
81 on the 500. Rates elsewhere are
given to substantiate this.
Calls u Unfair.
IF this be true, it Is certainly very
unfair to require the citizens of these
different cities. who now pay taxes
locally nearly twice as great as the
people of the city OF Washington, TO
contribute an additional sum for the
support OF the city of Washington.
ut is the judgement of the committee
that Congress desires to act fairly and
equitably toward the city OF Washington
and toward all the people Of the United
States when the facts are fully known.
1T is perfectly apparent. from a re-
port made by a committee appointed by
this House. that real estate is inequitably
section Of the city composed of small
homes is assessed at about IS per cent
of its actual true value, the areas oc-
cupied by the middle classes are assessed
at about 40 per cent of the actual true
value, the section known as the business
area is assessed at about Is per cent of
its actual true value, and the suburban
or speculative area is assessed at about
IS per cent Of its actual true value. II
this is true it is indefensible.
Sees No JustiHcation.
There can-be no justification for the
assessing of the homes of the poor and
middle classes at a much higher rate
than that levied on lucrative and profit
able business property, and much less
can there be a justification for assessing
property held for speculative purposes
at a lower rate than is levied upon prop
erty occupied for actual homes.
'Only tangible personal property Is as
sessed in the District of Columbia, but
this is very unjustly taxes as compared
with real estate. It is assessed at its
supposedly true cash value, and a tax Of
$50 a hundred levied upon the assess
ment while real estate is only assessed
at 81 on the hundred on the supposedly
like assessment. There is no known
theory of taxation upon which this can
be justified, and 1t clearly reveals the
power and influence Of what is commonly
known as the real estate ring in Sc
curing legislation favorable to their in
terests.
For the last twelve years moneys,
stocks. credits, bonds, and annuities
have been exempt from taxation In the
District Of Columbia, while they have
been assessed in some form or other in
every State OF the Union. Men of large
and invested wealth have
naturally gravitated to the National
Capital as a place of retirement and en-
joyment. Perhaps no city OF the United
States has so large a per cent of its
wealth invested in stocks. bonds, mort
cages, and other interest-bearing securI-
ties as does the city of Washington.
No Justice in Plan.
There can certainly be no justice in
this class of wealth to entirely
escape its share OF the burdens of local
There can certainly be
no reason for allowing the multimillion-
aire who has his property invested. to
enjoy all the protection and luXuries Of
the National Capital without contribut-
ing his fair proportion.
"All localities assess this class of prop
erty in some form or other except the
District of Columbia. This condition Gre
ates a very natural refuge of safety to
he professional tax dodger, thus prevent
ha ,F Nax h,v H..
ocal communities without furnishing any
real benefit to the city of Washington.
The c. w. Post estate, now being pro-
oated in the District of Columbia, is a
good illustration Of how this law operates.
Mr.. Post formerly resided at Springfield
III. About twenty-five years ago he moved
10 Battle Creek. Mich, where he made a
very large fortune in the cereal trade
He made Battle Greek the place of his
actual home. He had. however. a sum-
ner home at Greenwich, Conn, and a
winter home at Santa Barbara, Cal.
About ten years ago. he established a
residence in the District Of Co.
umbia-
Had House Here.
He had a little house here valued at
about 5000, in which he kept stored a
lew household goods carried on the tax
If their being stored he was not entitled |
% exemption for household goods in !
lctual use, and therefore paid taxes of !
Is per year in the District of Columbia
1T is creditably stated that he never |
occupied this house as a residence, but |
hat when he came to Washington either |
~ himself or with his family, he oc-
;upied a suite Of rooms in the New
Willard Hotel The inventory of his es-
ate recently filed in this District shows |
hat he had SIS. 10000 in stocks, bonds, |
,otes, moneys, and credits with an on |
;et Indebtedness OF less than $4,000
The people of Michigan sought to as
less his moneys and credits, but were |
lefeated because of his technical resi- |
lence in the District of Columbia
There is no Inheritance tax in the |
District OF Columbia, and for this reason |
men of large estates naturally declare |
as their technical place of |
-esidence for the very purpose of avoid |
ng the local taxation.
To Find Reason.