Evening star., 1921-05-25
BACKSCALDERP[AN
/ IN AID Of HOUSING
Claude w. Owen Answers
D. c. Heads on Partial
Tax Exemptions.


the District Commissioners are "p-
posed to the proposal of partial tax
exemption on houses to be built with
in the next five years. This fact was
conveyed to the housing group OF the
City Club, which has been pushing the
tax exemption plan, by letter from
the secretary of the District board OF
Commissioners. The letter stated mat
the assessors report disagrees with
statements made by Senator calder a |
recent meeting Of the club, IN Wh!ch
he advocated such a measure Tor 1ne
District.
Claude w Owen, who introduced the
proposal to various civic bodies last
evening, took issue with the asses
sors' conclusions and also with some
of their interpretations of the plan
ID. C. Assessors Statement.
Mr. Richards report first pointed out
that we are now adding to our as
sessment list each year over SS.OoO.Ooo
of taxable real estate, for buildings
alone. If an impetus is given to pulio-
ing operations as designed by this
legislation, and an exemption is made
in accordance with the figures laid
down. it would mean approximately
or $50, 1000. 900 for the five years. I" be
covered by such legislation. This. at
per cent, would be mi!lion-dollar
loss in tax. which would have to be
made up from otner sources
This Mr.. Richards report adds. would
he added to the burden of those VINO
have already invested by making them
pay additional tax in order TO adjust
the financial affairs of those VIII" hulid
or buy hereafter" The remainder of
his report cites what he believes would
be the result of the proposed bill.
after the passage of this proposed
measure" he says, "a party could put
up on the corner below this one tthe
Chastleton. at 18th and R) at
probable less rate of construction, and
would be able to compete IN rentals
with the older one because OF the re-
mission of yearly taxes. 1t is a ques-
ton lust here whether such an ar
rangement would result in less rental or
whether the party putting up the ne"
building would adjust his rentals 10
those paid in the old building and just
in rebated tax"
MIR. MckenZie'S report also cites OBJ
Jections which would follow a stimula-
tion of housing construction, asserting
that an increased supply of homes
would make the demand for them great
er than now and thus raise the price
even above what it is with the present
demand and a greatly restricted supply.
Mr.. Owens View of Question.
Both assessors believe apparently
that the plan would stimulate hous-
ing construction" Mr.. Owen said last
evening "or at least they cite OBJ
jections based only on this belief,
with one exception.
"In my opinion. and ] think it is
general opinion, there can be no posi-
bic objection to a plan which will pro-
vide housing where housing is badly
needed; lower rents naturally, where
rent commission now has to func-
ton; give work where 10000 are un-
employed. and stimulate business gen
orally when we are in the midst of
depression. If there are valid objec-'
tions to such proved results we might
as we'll all shut up shop and wait
for starvation to overtake US
That such proposal will do these
things has been amply proved in New
York. In the first six weeks OF op-
GRAFTON Iunder such law there. the
were issued was 81 per cent. or s1o.-
100000 above the same period last
year.
People must have housing at prices
they can pay, and there are only three
ways to achieve this: One is the way
get if the shortage of 100000 homes
is not soon met-the way Of social
ism; that is. government construction
OF housing, with rents fixed. of neces-
etty. below the wasteful cost of such
construction, and the difference made
up by taxing business The second
way is the one we are laboring under
now-governmental rent-fxing. with
its abrogatio of the sanctity of con-
tracts. This may keep rents down.
but every one agrees it will prevent
construction of the 100000 homes
the country needs. 1 hear this belief
confirmed on every hand.
'Only American Way
'The third and the only American
way is to depend on supply and de-
mand and to clear away restrictions
on it's free operation. No one today
ho he do nd 10 iy,or
but various restrictions have prevent
ed supply from working for the last
six years. For the public welfare we
must remove what restrictions we can.
The tax on this much-needed con-
struction is one which can be removed
with a much smaller loss than Mr..
Richards computes and with an ines
timable gain to the whole community.
Increased business in scores of lines
would follow housing boom. labor
would he employed and a dangerous
condition abated.
IF. as Mr.. Richards appears to be-
Heve. lessening of demand through
increased supply would not adjust
prices at their true economic level.
then we would have no other way of
providing the needed rental housing
at fair prices except by governmen
construction. I have more faith in
the law of supply and demand. Let
this plan increase the supply, as Mr.
Richards agrees it will. and few va
cant rooms will soon adjust rents in
an American way, with no abrogation
OF contracts needed to protect the
public.
"In his estimates Of the tax loss.
Mr.. Richards also has included all
building construction at full value.
whereas the measure the housing
group advocates would exempt only
housing construction exclusively, and
that for not more than $1,000 of the
value OF any house or fat in any case.
The loss this would cause, which Mr..
Richards now figures at 100000 a
year. would thus be Undiscoverable
AaA II h