Palisadian. [volume] (Cliffside Park, N.J.) 1906-current, 1919-07-12
THEORY OF SINGLE TAX
IS CALLED FANTASTIC

Single tax advocates have seized the
opportunity to present their views to
the state commission investigating the
tax problem. They did so again last
Monday at a meeting of the commits
sion In this, city, but did not have ev-
erything their own way. Halsey 7.
Tichenor, the real estate dealer of
this city, earnestly opposed them. He
said:
after dealing in property for nearly
one-third of a century it Is my firm be-
lief that taken as whole there Is no
unearned increment in property. While
q shrewd buyer has sometimes been
able to obtain property at low fig
ure from an owner compelled to sell,
still that gain Is not an unearned in
crement, but the deferred interest on
the investment which the previous
owner lost.
when it is taken into considera-
ton that there Is no income from va
cant land and that the net return from
rented property if computed over a
period of five or ten years is only be-
tween 3 per cent. and per cent,
while the care of such property de-
mands much greater amount of time
and attention than an ordinary invest
ment which would pay per cent or
6 per cent. without any trouble, it is
evident that the only factor which
could make real estate a reasonable
investment Is the hope of an increase
In its value. That this increase is not
sufficient to attract investors is the
best possible proof that it is not suffi-
cient to compensate for the small re-
turn from rentals. This is the real
cause of the shortage of houses today.
Some years ago it was possible for
builders to make money by building
houses for sale, but when the price
of automobiles was made low those
who had previously been the customers
for these houses began to buy automo-
biles instead, and the houses were left
unsold ON the builders hands, and
there were no other investors in the
market, for capital cannot be attract
ed to or 4 per cent. investment.
"Then the building of small houses
stopped, and for number of years
there has not been enough building to
take care of the normal growth of this
city.
"Unearned increment in real estate
does not exist, or capital would be
available for investment in this kind
of property. AS there Is not enough
profit in real estate to attract capital
to invest even at a possible bargain,
how can 1t be thought credible that
the community can successfully get
from real estate that which private
owners can not? The whole scheme Is
fantastic
"The assertion that the owners of
vacant property are not willing to dis
pose of 1t Is in almost every instance
falsehood and so silly statement
that 1t Is rarely answered because few
thinking persons wish to engage in so
foolish an argument
1.-The business of developing and
selling lots is simple proposition of
buying at wholesale and selling at re-
tail at small net profit. After having
been In this business for Is years my
partner died, and it was necessary In
settling his estate to find out how
much 1t really was. My counsel, who
is an eminent lawyer, found that our
net profit was between 10 per cent. and
Is per cent. of the gross profits of our
transactions during IS of the most
prosperous years that we ever had In
this business.
"This profit was the result of tire
less effort in searching for and buying
only such properties as offered the
largest profits of I'll the properties in
the northern part of this state and
then spending large sums of money in
developing the same and using the or
ganization which we had built I'D to
sell the lots.
If the result of all this effort and
the buying of only the most profitable
properties resulted In such a small net
profit, then by what method of rea-
soning does your political tax reform
er arrive at the conclusion that enough
income can be secured from this
source to run the city.
1.-The disastrous results from the
adoption of the single tax ideas can
be easily learned by the reports of the
commission appointed In New York
several years ago to investigate this
method of taxing. This report Is in
several published volumes and can be
J had by application at the Municipal Ii
brary in New York city.
1.-THE burdens that have been placed
on real estate have pro 1uced such con-
ditions that no one cares to invest his
money at 3 or 4 per cent. for the use
Of tenant, so If man wants a house
he must buy it"-New York Times.