Evening star., 1915-11-10


gathered data on more than thousand
sales of property in twenty cities
These sales. he said. were of typical
properties. All trades of property wer,
great care was used in obtaining the
data. most of which was obtained
through the local real estate boards IN
the various cities. members of the Ma
tional Association of Real Estate Exi
changes
The work was done by these various eS-
changes free of charge. he said.
We didn't have money enough "a
permit of our paying for much OF such
work" Mr.. Bradley added.
1t has been charged here, Mr.. Brad
ley. that the joint citizens committed
represented the plutocrats." said SEN
ator Works
We'll. the plutocrats were not asked
to contribute to the fund raised by the
joint citizens committee" said Mr.,
Bradley. 1t was popular subscrip-
ton and in small amounts"
Names the Cities Investigated.
He mentioned the names OF the cities
where the investigation in actual sale
prices as compared to assessments
levied against the properties sold have
been made. including Atlanta, Chicago
Cleveland, Denver, st. Louis and Cin-
cinnati The list had been presented
to the committee earlier in the hear
committee.
DO you think the report that this
investigation was to be made into this
fiscal relations between the United
States and the District has had an inc
furious effect upon real estate values
in the District?" asked Senator Works
"On the contrary" said Mr.. Bradley,
Il think that the ordering of this in@
vestigation by Congress had a bene.
f1cial effect"
that the people who owned property
here were not afraid of the investiga.
ton
They had every confidence that after
full investigation Congress would sus-
tain the contention of those supporting
the half -and-half plan," said Mr.. Brad-
ley.
Representative Cooper asked IL the
report had not gone around the city
to the effect that Congress intended to
make the District pay all the expenses
of the National Capital, and that taxes
would be doubled.
Mr.. Bradley replied that he believed
there had been such report abroad
and that 1t had done much to injure
the real estate market here. He said
refused to go on with purchases of
real estate. preferring to lose deposits
which they had put up as guarantees
of good faith.
Neiipers OF tne investigating COM
mfttee said that SO far as they knew
it had never been, said in the Senate
or House that the District should pay
all the expenses OF the capital.
Quotes Statement Made in Congress.
1T has been said in Congress, how
ever" commented Mr.. Worthington of
the joint citizens committee, that il
the people of the District were taxed
as they should be taxed enough money
would be raised to pay all the OK
penses Of the capital
YES" said Senator Works. that has
been said"
Mr.. Bradley said that this had had
bad influence on real estate values
in the District, for people feared that
taxes would be greatly increased by
Congress.
Mr.. Bradley told the committee that
his subcommittee had obtained figures on
rents here and in other cities showing
the percentage of gross rents to assess
ments, and that the average in the other
cities was 1888 per cent. while in Wash
ington 1t was 12.02 per cent. He added
that 1t had been impossible to obtain the
ngures for net rents, which would have
been more satisfactory. In Washington.
he said. more repairs are demanded and
obtained by tenants than in any other
city of which he knew.
He presented to the committee figures
showing net returns from rents on 445
pieces of improved property of all kinds in
the District, clearly Indicating that own
ers of real estate here are not receiving
great returns from such investments. He
said that the average rate of rent on the
basis of the assessments was 415 per
cent.
Figures Covering Five Years
He said that the figures for these rents
covered five. years. 1910 to 1914 inclusive.
and that the basis of assessment covered
in each case the current years. In many
instances he said. the assessments have
now been raised considerably on these
properties, which would necessarily lower
the net returns from them.
He showed that the net rent return
from 231 small houses was 4.0s per
cent on the assessment basis; ninety
two middle class homes, renting from
$40 to SIS month. 3.94 per cent; six
teen fine residences, 3.SS per cent:
sixty-one business properties, A per
cent: 80 apartment houses, 5.4 per cent;
10 office buildings. 1866 per cent. He
said that deterioration of the prop
critics was not taken into consideration
in making these calculations, and he
added that deterioration in improve
ments was very large.
Have you found it true that rev.
enues from office buildings are con-
siderably less than from residences
Mr.. Bradley" asked Senator Works.
Mr.. Bradley said he had. and that it
was SO in practically all the cities he
knew about throughout the country.
due to having overbuilt this class of
structures.
He quoted from the list of cities in
which sales of real estate had been
compared with assessments. showing
that assessments invaria bly, were made
far below the percentage of the true
value by which assessments were sup
posed to be made in these cities At
lanta, he said, it was shown, actually
assessed property at about As per cent
of it's value, instead Of 80 per cent as
provided by law: Chicago at 22.9 per
cent, instead of % per cent. and Cleve-
land at 10 cent, instead of at 100 per
cent.
Suggestions by DR.. j. w. Chappell.
The et-Simon test for voters in
the District of Columbia, after suffrage
is granted the National Capital, was
to the joint select COM
mittee yesterday afternoon by DIR. ]. W.
Chappell, vice president of the Citizens
Suburban Association This
test, given to children to determine
whether they are normal or subnormal
and to determine their mental develop
ment and intellectual standard, would be
a applied to all who intend to cast d ballot,
so as TO see whether they measure up TO
twenty one years of age on the inside of
their heads as well as without
Mr. Chappell also recommended a
budget system for the District of Co
lumbia After ascertaining the amount
of expenditures, he said, the assessed
yaluat ton of land and improvements
should be determined. and the tax rate
should he whatever figure is necessary