Every evening, Wilmington daily commercial., 1920-03-18
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A Move in the Right Direction.

Chairman Weller l.. Slower of the City
Department of Assessment, Revision and
Appeals. makes tho suggestion that City
Council ask the Legislature for authority
Ia exempt from all city taxes for period
of FIVE wears buildings constructed for
dweIIingpurposes This move, he believes,
would encourage the building of houses
for people to dwell in. which he recognizes
as the paramount need OF the city at this
time
This suggestion, while not altogether
nractical or businesslike. calmly con-
sidered is infinitely better than the bonn
bastic and destructive policy advocated
bv some members of City Council of
drastic law to visit the severest punish
ment upon these who are guilty OF the
"heinous crime of profteering IN rents.
that is taking advantage Of the inslstent
demand for houses for people to live IN TO
secure the highest rents that applicants
NAV feel willing to pay After all, there IS
nothing Illegal taking advantage OF such
a condition while it lasts. II is done IN all
other lines of business, TO an oppressive
extent IN respect of foodstuffs, and we
hear of no clamor for the hanging of any
other class Of "prohteers." This lnvidlous
distinction is far from encouraging to
building enterprises.
Nor is there such extent Of ''profi-
teerlng'' in rents as is alleged. No doubt
there are many instances OF undue ad-
vantage being taken Of the rabld demand
for dxelling places to advance rents to an
abnormal extent, but as rule real estate
in wilmington is not an inviting invest
rnent. There is far more profit IN other
investments. in other lines Of business. III
real estate generally paid enormous
profits for rentals. there would be no
such slackness in new building operations
as has prevailed for long time IN this
city. Those seeking profitable returns for
their money would invest in new dwellings,
confident of a good return, notwith-
standing the high taxes and high rates
for labor and building materials.
The solution Of the problem, so far as
the suggestion of a remedy is concerned,
is to bring about conditions that will make
investments in new buildings for rentals
attractive, instead of repeliant- Time
was. half a century ago, when Whining
ton builders were active IN not only
supplying the demand for new dwellings,
but in keeping ahead of it, Many Of them
realized large profits; some failed, as men
will fail in all business enterprises. But
the building was active, and people who
rented their homes were seldom put to
distress by reason of lack of places from
which to make a suitable choice. How
10 make this solution of the problem
practical and effective is the difficulty.
There is no doubt that one serious drag
upon building operations III our city is
the heavy taxation on real estate. This
burden has been increasing steadily, Tor
many years, both as TO assessments and
tax rates This year the board has made
another lift in assessments, in some
instances of quite radical nature. Here
is another obstacle to a general resump-
tion of the fom T attractive and profitable
business of erecting dwellings. To relieve |
building enterprises entirely Of taxation !
for a period Of years would be manifestly |
unjust to owners not included In the |
favor. but there is no reason why the city |
should not have adopted the suggestion, |
made many years ago, of maintaining for /
one year the vacant lot assessment on all !
properties improved by the erection |
thereon of substantial buildings for any !
purpose. This would have been a reason
able encouragement TO building enter
prise, instead of an immediate tax, which |
under the present system, we understand, |
begins soon after the starting of opera
tions, and may apply time and again to
structures still in an unfinished state.
The great burden upon the citizens of
Wilmington IS taxation and great
drawback is that much of this taxation
does not go to the benefit OF the city The
bulk of our cost of municipal administra-
ton comes from taxation on real estate
Here is the genesis Of many of our miIni-
cipal troubles, and the remedy is to secure,
If possible, the acquisition to our municipal
treasury of a liberal portion of the taxes
we contribute to the State treasury. With
this accomplished we could make local
taxation on real estate reasonable IN its
bearing, and thus help TO encourage a