The Washington herald., 1921-02-12
The Fifty-Ffty System.

TTRlPPED OF all sentiment and brought to the
- sole basis OF values and costs, is $3.50 the
- fair and just division between the Federal
government and the City Of Washington Of the costs
of city government? Ii not, what is the right basis?
Under the law, property for tax purposes is as
sessed in Washington at two-thirds of its actual
value. Actual comparative records show that this
Is complied with to the letter The assessments are
if anything, above, rather than below this proper
ton, as based on property sales
The total of the assessed value of real prop
erty for 1920 privately owned, is $434794786. This
represents total actual value of $7o2,I82,I79. To
get the 1920 assessed value an increase OF 10 per
cent has been added all values of buildings erect
ed before the in order partly equalize these
with the lar higher building costs of the period
What OF the property owned by the Federal
government OF this property the city has
ord of what the land cost the government when
purchased. 1t has a like record OF the Of the
Federal buildings when erected,
These amounts total $500 258, 500. If the value
OF the So43 acres OF land owned by the United
States based on its present actual value as is
private property, instead OF what it cost, it is plain
as pike-staff that this alone would probably wipe
Que all the difference between the actual value OF
taxable private property and the cost value OF
taxable government property.
But that is only part OF the story. Such gov
crnment buildings as the Capitol, Library, Treas
ury, etc, are of monumental character and so not
entitled to a depreciation offset for age. If they
and all other Federal structures were placed at
actual value approximating reproduction, and
not at what they cost when built it would be found
that the value OF Federal property far exceeded that
privately owned.
The cost Of these Federal structures was but
SI7IL46,55o. Their reproduction cost would be far
more than twice that amount-probaby three times
would be accurate.
Nor does all OF this include the nontaxable for
cign. legation property for which the Federal gov
crnnlcnt is wholly responsible, religious, edu-
cational and charitable property, for which it has
responsibility at least equal to that OF the city
This tax-frec property has an actual cost value
not selling value which would be much higher, of
S4I,L4oSoo. Certainly it is evident that based upon
present-day values OF land and buildings the Fed
cral. government splits at least $3.50 with the pr
vate"owncrs OF property.
Moreover, the streets Of the city what they
are in width and maintenance cost solely because
this is the National Capital The demand for FIRE
and police protection responds the fact
The population with its diSProportion OF perma
and transient residents requiring great city cN-
pcnditure in such services, is based upon this fact
Indeed Washington is here solely because Of
the government. But for this there would be little
excuse for the city. That this is so, is proved by
one condition peculiar to Washington, making it
unique among the cities OF the world.
1t is a city OF retail merchandising and trade
There is large wholesale district in others Of
100000 people. There is section set apart for
manufacturing. There great railroad freight
terminals The basis OF its taxable wealth is trade
and those occupations, professional and semprofes
siona1 brought here by of its being the scat
of government.
The people of the United States generally rec
ognize all Of this and no one has yet heard sin
gle protest from the States that the $3.50
split was not fair and just, or that it in any sense
unduy favored Washington.