The Washington herald., 1921-06-18

TELLS OF CITY'S TAX sxeTBu.
Pittsburgh IL q city OF smoke and
steel. One would not ordinarily
look to II. classic example NJ Il 10
Of industriaiism Ia howen for lead
ership In the solution OF social prob
lens. Yet the sooty town In the
Aiieghanies Is blasing through the
industrial morass . trail which
cities the country over are destined
to follow, according to Harry H.
Wilcox. treasurer of the Waverly
on Works of Pittsburgh. who II
visiting Washington.
Pittsburgh and Scranton Pc"
said wilcox, ARE doing more than
any other cities In the United
Statesto solve the problem Of after
war taxes. building shortage and
business stagnation. They are TAX
ing taxes or production. reducing
assessments on buildings 10 per cent
at every triennial assessment period.
Machinery and materials in process
OF manufacture, as well as stocks
in-trade and other personal prop
erty. are totally exempt. as In the
case in several other Eastern in
dustrial centers. We believe in en-
couraging industry.
NOT A FINE-sPUN THEORY.
BUT A PRACTICAL METHOD.
Our CITY," continued Wilcox, lis
not given to over-attachn1ent for
nne-spun theories. Results had to
| be shown IL the experiment was not
to be thrown to the discard. Pitts
burgh believes that the proof Of
the buildings the eating Although
| our plan has been in operation only
eight years, yet we have the re-
suits that prove our particular pud-
ding first rate. ince the adoption
of the graded tax law Pittsburgh
has spent for new buildings per
1000 Of increased population from
rs to $50 per cent more than any OF
/ her competitive cities. We think
naturally this vast increase OF
building Is something to be proud
Of. But that Is not the end OF it
The measure has put a halt to land
imitation and speculation which had
formerly seriously hampered her
growth as a manufacturing city by
driving plants to other cities hav-
ing lower land values.
Taxes on production and con-
sumption in the United States" said
Wilcox, aggregate over per cent
net, to say nothing Of the gross
amount 1t attains by the time COM
modities reach the ultimate con-
sumner. To relieve industry of this
per cent, then. would in effect
more than double productive capt.
tai. bringing about a degree of pros
perity as much greater than that OF
today as today's Is greater than
that of 100 years ago.
TAXES ON INDUSTRY
RETARD INDUSTRY.
Every tax. it must be remem-
bered." declared Wilcox. acts also
inevitably as a penalty. Now the
question is, Where shall we place
the penalty? Shall we impose il
on the backs of industry and the
consumer. or shall we impose il on
community-created values? We can
impose 1t on land values and en-
courage the use Of land, or We can
impose it, as Is generally done in
the United States-retarding bust
ness. All taxes must be levied upon
the products of industry or else
upon site values. Now Industrial
products are private property. and
W have no right to take private
property for social purposes when
site-values, which are the product
of social growth and development.
have not first been utilized.
Consider this further: Where
there is no public service. no roads,
paving, sewers. schools, police. or
other governmental service, sites
have no selling value. But where
public service is plentiful, and pop
ulation is dense, site values rise to
mammoth proportions. running into
tens of millions of dollars per acre.
HE GIVES BIRDsEYE VIEW OF
COMMUNITY POCKETBOOK.
AN unimproved site next to the
woolworth Building is as valuable
as the site on which the Woolworth
stands, because il has received just
as high a degree of social service
and advantage. Should not the gov
eminent, then-and this is the crux
of the question-levy for its needs
upon the values which 1t creates,
leaving sacred to the Individual
those values which belong to the
individual
an the United States site-values
aggregate $4,000, 900. 900. equal to
all other forms of property COM
bined. This value is chiefly in the
great centers OF population, about
$1,000 200, 900 Of site-values being in
the city Of New York alone. Yet
these values which are socially
produced pay only a fraction of the
government expenses. whereas in
dustrial products. privately nro-
duced. must shoulder the burden, TO