Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-08-21
VICIOUS THEORY UNDERLIES
SMITH-MITTEN PROPOSAL

IAN AsoA VIM
THE United States Government subsi-
= died the Union Pacific and other rail-
roads by grants Of enormous tracts of
land. This land at the time was virtually
valueless. The construction Of the roads,
Il was foreseen, would put value into
that land. That is exactly what 1t did do.
There has been no important railroad
construction in years, we believe, in which
those financing the enterprise did not
take into consideration the profits in land
certain to 'ow from making new territory
accessible. This is particularly true of
high.speed developments in districts Of
concentrated population. opening up. too,
new suburban territory. In most cities
abutting property owners pay part of the
cost of paving, since paving adds to the
value Of their property The policy of
Lloyd George in England, previous to the
war, was to take for the Government part
Of the unearned increment. If the crowd
ing together of people in one community
and the granting to 1t Of municipal i'm.
provements created automatically in.
creased land values, part of that increase,
declared Lloyd George, properly belonged
z 10 the State.
\ The new high.speed system in Philadel.
phia will add millions and millions to
property values. These values become
subject to taxation. Mr., Taylor never
proposed as he might have DONE direct
assessments for transit purposes on prop.
: erty 50 benefited, but he did urge that
the taxes levied on such increased values
should be used to compensate for early
deficits resulting from operation of the
new system.
Mr.. Twining is against this. He argues
that every cent of enhanced values ere.
ated by the high.speed lines must remain
In the pockets of private citizens, that
every penny Of increased tax receipts
there would be no increase in the tax
rate) must go to the treasury for other
purposes. Hit the riders pocket, is his
plan, and give him no consideration what.
ever. He insists on ignoring absolutely
all indirect returns vast as they will be,
from transit operation. If he followed
this argument to its logical conclusion
there would be tollgate on every paved
highway in the city, no docks and
wharves would ever be constructed. an
admission fee would be charged at Fair.
mount Park and the public schools would
have collection officer at the front doors.
Mr.. Twining says to the company. in
effect: You have just begun to pay your
own way. Well let you tax the riders
an extra amount if you'll give part of
the money back to us Keep the rest
He is so scared Of an increased tax rate
that he proposes an indirect and con
only part Pretty expensive collecting
most citizens will conclude at once It's
the gas proposition all over again, only
, worse.
1t is useless to talk about the Smith
Mitten lease Offering any basis for solu
ton If the transit problem. 1t is grounded
on a principle outlawed years ago, a prin
ciple which, If written into a moderI
municipal contract, would make the com
munity ridiculous and brand it as an cas-.
mark The whole thing must be wiped of
the slate, because the theory underlying
is vicious. The values created by tn
new high-speed lines must be used for tn
financing of those lines The consume
does not intend to be cheated OF tina
wealth and. as a result, taxed every tim
he rides He is willing to give the =. +
T a square deal, but he is not willing I
give 1t the City Treasury and the tas
levying power