Evening star., 1915-03-29
The Johnson-Prouty Discovery
of a Plot to SWindIe
Uncle Sam.
TAX-REDUCTlON PLOT,
SMELLS TAX-BURDENS
Peculiar and Paradoxical Tax-Dodg,
ing Which Increases Assessment
on Realty $a2y 100000 and
on Personally so Per Cent.
Star, March p. 1914.


Star, March q. 1914.
The Johnson-Prouty report upon the
mutilated George bill condenses in .
nutshell the fundamental errors of fact
and figure ON which the present vicious
campaign against Warrington Is based
1. That the full assessment valuation
Of Washington realty in 1912 was over
$744,OOO,O 900, in accordance with HI. j.
Brownies single tax conascatory esti-
mate.
2. That full credit should be given to
the confessedIy inaccurate census-re-
value, with the result of making the
average tax rate in United States eight
cen mills and reducing the Washing
ton rate to the lowest among American
cities.
3. That Warrington, on its imaginary
realty and personally taxable values,
can raise without hardship a tax levy
of S14,S47, ,291.75 and consequently NO
contribution from the United States Is
needed for capital maintenance ana
upbuildinR.
the result Of a corrupt conspiracy be-
tween the tax.dOdgerB and bribtng
malefact0rs of Warrington and a Con-
xress of criminal prOcllvitfes to reduce
the local tag ss Ieyenues rue, ,ne.s.-,io In o.os 10
the half-and.half arrange
ment.
The first three of these allegations
have been contradicted and discussed
In detail In recent editorial c rresp0nd-
ence, Brief consideration may be given
to the fourth accusation or count In
the Indictment of Warrington and OF
said Mr.. johnson Of Kentucky. ac-
cording to the Congressional hecoFo oi
.aThe organic act Of 1873 was not ma
terially interfered with until 1883. That
act broke into the organic act OF 1898
made triennial assessments. the next
breaking into the organic act was IN
1902, by which intangible personal
property. stocks and bonds and securi-
ties were relieved from all taxation.
At the same time uniformity of rate
of taxation was destroyed by leaving
tangible personal property taxed at
$50 a hundred and by taxing real
estate at 81 a hundred. Nobody heard
a cry from the people who are now
raising all this noise for fear. the or
ganic act may be interfered with: They
sat quietly by and acquiesced in the
partial destruction of fair assess
ment by saying that they were willing
estate and three-thirds valuation on
tangible personal property.
The organic act was practically de-
stroyed by the act of 1883 and by the
act of June 1. 1902. and not one of
those people who are now raising such
a fuss lifted voice in protest against
it. Let me tell you how and the cir
cumstances under which the change as
to the taxation of real estate was made
from $3.50 hundred to only 81 hun
dred.
This House went on record en-
phatically in 1902 in favor Of taxing all
kinds of personal property. The bill
passed the House in that shape. 1t
put on some amendments. and then the
bill came back from the Senate amend
ed. and 1t went to conference. and
while the subject had not been brought
the conferees brought back to this
House proposition, which was adopt
ed without debate and without a roll
call. reducing the rate on real estate
one-third."
A New Defender of Organic Act.
Mr.. johnson, proposing that Congress
shall now destroy the half -and-half
provision of the act of 1873, asserts as
il in justification of this destruction
that this is not the first time that Con-
gress has violated that law; and ne
scolds this community for not recog-
nizing that the change from annual to
triennial assessments in 1883 vitality
injured the organic act, and that the
fixing in 1902 of a minimum two-thirds
basis of realty assessment valuation
and the exclusion Of intangible per
smashed the organic act into'tiny frag-
ments.
Washington is ready to admit that
Congress has frequently since 1878 dis
obeyed and violated the half-and- half
provision. Indeed. the city has com
planned Of such infractions. But the
community is as obtuse now as 1t was
In 1888 and 1902, and fails now. as it
did then, to discover any violation of
nual to triennial assessments. or in a
direction to assessors who had been, in
fact. assessing at a third and half of
full value that they must thereafter
full value: or In placing Washington
In the list of communities in which
taxable personal property is not held
to include intangible personality. None
Of these provisions altered the $3.50
tax rate. fixed by the organic act: and
the 1902 legislation did not decrease,
but increased. the assessments of both
real and personal property.
But If Mr.. Johnson, as the champion
right in his contention that these laws
were insidious and covert infractiona
by Congress Of the act Of 1873, would
not the moral to be deduced be that
Congress should quit violating the or
should in consideration of past sins
sin more and worse and smash the vio-
lated law altogether?
The Crime Of 1909.
Mr.. Johnson says further on this
point:
of 1902 reduced the rate of taxation
upon real estate from $3.50 a hundred
avoid the raising of that extra $4,000,
900 or $4.000.000? If so. then they de-
liberately sought in 1902 to get through
Congress, and they did get 1t through.
a proposition which would destroy the
organic act Of June II. 1878. to proven,
rate therein provided in order that
they might not reach a point in in
come where they could pay their own
expenses"
By the insinuation Of a slurring query
Mr.. Johnson accuses this community of
criminally conspiring with corrupt Con-
gress in 1902 to cut down the tax rate
and the local tax revenues, in order to
swindle the nation into continuing un-
necessarily the half-and-half arrange
ment.
Mr. Prouty In his speech at the Pub
lie Library formulated substantially the
same Indictment Of what may be stigma
tized as the crime Of 1902.
Mr.. johnson has described in convincing
detail the devious and suspicion breeding
action Of the conference committee the
realty provision was forced upon a Teluc-
tant but finally asserting House. It is
clear as MONDAY from Mr.. Johnson's own