New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-10-10
HEARINGS ON
REALTY TAXES
Testimony Given Shows a
Big Increase in Re
cent Years.
MANY BODIES UNITE
FOR STATE SYSTEM
Assessments on Personal Prop
erty Decreased, According
TO Briefs.

The real estate interests have prOba-
bly, never appeared 10 better advantage
than before the joint legislative commits
sion which is holding hearings in this
city for the purpose OF revising the
state tax system. With a righteous
cause, thoroughly prepared and ably
presented, real estate owners made
very favorable impression upon the
legislative committee in its effort TO
distribute the tax burden over wider
field than has heretofore prevailed.
For several months the Advisory
Council of Real Estate Interests has
been successfully bringing together
the various financial interests that
will be vitally concerned with any re
organization of the state tax system.
Thus. for the first time trust cOmpa-
MES, savings banks, life insurance
companies. national and state banks.
private and investment bankers. mer-
chants and manufacturers are uniting
for the purpose of obtaining an equita-
bic apportionment of taxes throughout
the states.
Ii was unanimously conceded by the
city and state officials who appeared
before this legislative committee that
real estate ia overtaxed at the present
time. In fact, Mayor Mitchell replied
TO an inquiry OF Senator Mills as 20
whether real estate could sustain any
further taxes that the real estate situa-
ton was precarious and conditions were
stringent, so that il was absolutely
necessary for both the city and the
state not only TO look elsewhere for
additional sources OF revenue, but re-
lieve real estate from the heavy bur
dens il now carries as soon as possible.
In so far as th tax upon personal
property was referred TO, II was adj
mitted that such taxes were difficult
of collection, and the testimony before
the committee tended 20 show that
state income tax would be an admir-
able form Of taxation TO inaugurate.
A representative group of witnesses
appeared in behalf of property own
ers. Under the direction of Nicholas
Biddle meetings of these various wit
nesses were held for the last few
weeks for the purpose OF preparing
answers to the questions submitted 10
real estate owners by Senator Mills.
Comprehensive briefs and exhaustive
tables to demonstrate the fact that
taxes on real estate had increased, while
those on other forms of property had
decreased within the last twenty years.
were prepared by this committee OF
real estate owners and submitted to
Senator Mills. Alfred Z. Marling, Cyrus
C. Miller and the secretary of the
advisory council and the following men
appeared es witnesses: Allan Robin
son. Charles A. Cone. Elmer c. Coul-
ter. Stewart Browne. Robert +. Simon,
J. Clarence Davies, VI. Morgenthau, jr.,
Cornelius G. Kolff, Z. +. Bowling, Will
lam Greve. Henry Bloch, +. A. MacDou-
gal and Joseph +. Marx.
The testimony adduced by these wit
nesses showed that since 1898 personal
estate in New York had decreased from
100000 to S340,000,000 in 1914,
while real estate assessments had in
creased from $500 000,000 TO $S,OOO,-
100000. A similar comparison was
made for the amount of tax levy and
collections upon real estate and per-
sonal property in New York City. In
1899 the amount of tax levy on real
estate was S72,00O,O00, of which s71,-
900 was collected; in the same year
the amount of tax levy on personal
property was Sl3,000,000, while only
100000 was collected. In 1913 the
tax levy upon real estate had increased
to S145, 100000, of which 1922 100000
was collected, while personal estate
had decreased TO 100000, of which
S3.700000 was collected.
A thorough comparison of the tax
rate in the several boroughs was pre-
scented TO show that from 1898 there
had been gradual increase both in
state and city tax rates. while the
principal other source of re- ne IN
the citv-tfe tax on bank shaf was
IL II
600 TO 100000; or, in other words,
the city obtained as much from its tax
on bank shares as from the tax upon
personal property in the year 1914.
Similar figures were presented TO show
that the assessed value of personal
property had decreased in New York
State since 1898 from S546, 100000 to
s424, 100000 in 1914, while real estate
had increased in assessed value from
81 600 coo 900 TO Sl1 ,000, 900, 900 in 1914.
In this connection it is interesting to
observe that the real estate assessment
in the state has increased from 1898
TO 1915 by S6,790,000, 900. of which &c.
252, 000, 900 is accredited 10 increase in
New York City, leaving but practically
$5O0,OO00O0 increase upstate.
Thus real estate assessments in New
York City have increased in the ratio
of II to ] compared 10 upstate assess
ments. OF the total direct state tax
levied in all but six years since 1898
real estate. paid approximately nine
tenths and OF the tax and personal es-
tate one-tenth OF this proportion New
York City paid on an average OF about
IS per cent Of the entire tax. Ii was
interesting also to observe that the Sc
cured debts tax since Il has been IN
operat on has yielded about 50 407 ,662,
while all other indirect taxes received
by this state since 1895 amounted TO
only SAP, 726.746 a large proportion OF
which must come from real estate.
Figures were presented By the officers
Of the estate Of John Jacob Astor and
By Horace $ Ely q Co., Douglas Robin
son. Charles $. Brown and j. Clarence
Davies to show that in 1855 about 20
per cent of the net income Of property
was paid for taxes; N 1905 about 81
per cent; in 1911 about 80 per cent, up
ward. A Great malv cases were cited
TO prove that a defc accrued from
certain properties. while number of
cases were given where over 30 per
cent of the income went 10 taxes. The
real estate situation in New York was
briefly described and was compared to
the period prior 10 the French Revolu-
ton. when a large proportion of the
income of small property owners was
contributed for taxes.
With an annual direct tax OF 24.000-
600, II was proved that the capital value
Of real estate would deprec,ate 1 per
cent Of its present value. while with
tenants now paying all they possibly
can. il would be impossible to shift the
tax burden. This would impair the Dor
rowing capacity and securities of he
city and affect $4,000 100000 worth OF
mortgages held principally by life in
surance companies, savings banks. etc.
Z was generally admitted that the effect
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