The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1915-10-27
MOVES REVEALS
FISCAL error
Editor Gives Oral Argument
Before Congressional In
yestigatins Committee.
SAYS FIGURES MISLEAD
Witness Charges that Enemies of Dis
triet Have Made Attacks with
Misrepresentation.
SAYS FIGURES MISLEAD

A clear demonstration OF the inherent
error in the figures which have been
presented In Congressional debates TO
bolster the claim that residents of the
District Of Columbia are underassessed
in the light OF comparisons with other
cities, was the feature of an exhaustive
oral argument yesterday before the Joint
select committee OF Congress Investigate
ing the relationship between the District
and the Federal government by Theo-
dore w. Noyes. editor. student, and
writer OF twenty years experience on
District problems.
Mr.. Noyes not only pointed out this
error, but showed that those Who de-
pended upon the Misrepresentation to
bolster up Their attacks upon the Dis
trict were warned by the census buIle-
tins from which they took the figures
that the comparisons were misleading
and not to be taken at their face value.
Tax Rate Moves.
The error involved lies in the fact that
comparisons OF municipal tax rates In
their relation to municipal assessments
do not take into consideration the fact
that the tax rate or the assessment
moves up and down, according 10 the
demands Of the budget In other cities
that the question Is not SO much how"
shall the revenues be raised. but how
much"
So that. II the tax rate fixed is $50
per thousand on a full valuation, and
such a tax rate produces more revenue
than Is required. the taxable property is
underassessed to a point where the rev.
enue returned will meet the require
ments. although on the face of the rules
involved. IL would seem that the tax
rate was levied on a true valuation.
In reality. as Mr.. Noyes pointed out.
the assessment may be at the rate of
100 per cent on an Embarrassment Of
90 per cent. In view Of this fact, the
citizens committee contends that the
only true basis OF comparison involves
the per capita tax contribution which
does not take into consideration the
how OF the matter. but the how
much"
Characterizing as an absurdity the
contention OF enemies OF the District
that taxable property here is worth
s744. 900 900 instead OF $3.50. 10000. Mr..
Noyes pointed out that such a valuation
would claim for the Capital more than
twice as much for the Industrial city Of
Baltimore. with a quarter OF a million
more In population, and nearly twice
as much as for the city of Cincinnati
Tesimony ny Noycs.
Mr.. Noyes said in part:
The report Of the citizens subcom-
mittee on assessments and taxation dis
credits the reported relation of assessed
to true value in respect to the nineteen
cities. which on the basis of true values
as determined by actual sales are COM
pared as a result OF the subcommittee
earnest labors. The subcommittee says
on this point: The investigations OF
the committee demonstrate the mac
curacy OF the reported relations OF as
sessed to true value as printed in the
census bulletin. the committees figures
confirming in this connection the de-
rogatory comments of the census au-
thorities which discredit the reliability
of these irresponsible reports
1T may be noted that this discussion
involves the same factors and follows
the same lines as the argument that the
assessors of many other cities have
undervalued the value OF
the city's realty for assessment pur-
poses. These gross undervaluations.
treated as true valuations. are used on
the one hand to demonstrate that WASH
ington is the richest city in the country,
and the failure to confess these gross
undervaluations in reports TO the census
is utilized to demonstrate that Washing
ton is the lightest taxed OF American
cities
Assuming that the reported bases of
assessment are accurate. the assessor
reports in the taxed fraction OF nom
Industrial Washington realty values
to s50s.7ss,4s5. On the same
assumption the Cincinnati assessor re-
ports in the whole OF that populous.
wealthy and money-making city real
ty values of S375,065.6s0, sl33,o0o.000
less than that in the taxed fraction OF
The Newark assessor re-
ports S2b7 100000 less of realty values
in that city than in Washington. The
New Orleans assessor reports S2s5.000.-
900 less of realty values in that city
than in Washington.
"Of course, the reports of relation
OF assessed to true value which de-
velop these preposterous results are
false and worthless. Instead of Wash
inston realty being assessed at a two
thirds rate as compared with a three
quarters valuation in New Orleans ana
full valuation in Cincinnati and New
ark, the true relation will place Wash
Ington at a comparative 100 per cent,
and the other cities at small fractions
Of full valuation
The truth which I am urging 10
taught not merely by a few selected
cities. but by the entire list Com
pare the reported 100 per cent valu-
alton of washington's realty with those
Of the other cities (all except Balti-
more approximating Washington in
size) in the following table:
On 90 per cent