Evening star., 1930-12-08

II 1
sums aggregating $50,000,000.
VALUATION METHOD
ON U. S. PROPERTY
IN D. C. EXPLAINED
Continued From First Page.)
cost of tha machinery, equipment and
other tangibles in the Federal buildings
which amounted to $180,O00,0O0. This
figure was divided in half as an allow
ance for depreciation, leaving a balance
OF $50 100000 es the amount on which
the United States should be taxed.
Some Ffoperty Excluded.
Mr.. Murphy told the committee that
In determining the cost of tangible
property in the Federal buildings, the
bureau did not take into consideration
such historical equipment as contained
in the New National Museum, the Med
ical Museum and the Smithsonian In
stitution. He said it would be difficult
to place any value on these historical
and medical exhibits.
The $9G,000,0C0 figure used by the
bureau ss the amount of intangible
property owned by the United State
on which it should pay tax, Mr.
Murphy explained. was arrived at after
an examination Of the intangible taZ
returns of the principal private brsi-
ness concerns in the District.
The bureau found, he said, that the
values of the personal property of these
business Establishments corresponded
approximately with the amount of the
intangibles, so the bureau used $780,
100000, the same amount as the value
of the Federal Governments tangible
personal property, as the amount of the
tangible personal property on which it
should pay tax.
"The bureau" he declared, "feels that
this basis of determining the amount
of intangibles is not unfair to either
the United States or the District. 1t
merely puts ths Federal Government in
the same position in the District as
a private business concern"
View on Park Areas.
Mr.. Murphy explained that the bu-
reau's recommendation that the United
States should contribute one-third to-
ward the cost of property acquired for
park purposes because it found in its
investigation that there was an excess
park area in the District in comparison
with Ia other cities which the bureau
studied is due to the fact that Washing
ton is the Nations capital
Questioned on Charges.
Repre- Davis Of Tennessee
questioned Mr.. Murphy about charges
he said had been going around WASH
ington to the effect that owners of prop
erty purchased by the Government had
been getting two or three times too
much money in condemnations. Mr..
Murphy replied that it no doubt was
true that many property owners had re-
ceived higher prices than the assessed
value, but did not undertake to pass
judgment on the market values refer
red to.
Representative Davis then inquired as
to the methods followed by the Bureau
Of Efficiency in determining whether
quoted sale prices were bona flde when
they were offered by owners as evidence
OF the value of property subject to con-
demnation proceedings. He said that
1t was common practice in many
cities for real estate men to transfer
property to their secretaries or other
business associates as means of boost
ing apparent market values, for the
purposes of resale.
Mr.. Murphy explained that the bu-
reau had considered this matter and
that careful investigation was made to
determine If and when reported sales
were net bona f1de.
Aided Justice Department.
In this connection, Mr.. Murphy
brought out that for about three years
the Bureau OF Efficiency had been at
work, tracing down reported sales, used
as evidence OF current market values,
for the benefit Of the Department of
Justice in its handling Of condemnation
cases in connection with acquisition Of
Federal building sites. Mr.. Murphy
said that in cases where an exorbitant
sale price was found, careful investi-
cation was made to determine the rea-
sons for such reported sales and that
the resulting information was turned
over to the Department of Justice for
its guidance in handling the condem-
nation cases.
Mr.. Davis then asked Mr.. Murphy If
he thought any Government building in
Washington could be sold on the mar
ket for any price comparable to the
assessed values given by District Tax
Assessor Richards in evidence he sub
mitted to the committee last week.
would be the case, since it was very
unlikely that a willing buyer could
be found for the great and monument
tai Government structures for private
rather than public use. He said that
in checking assessed valuations of Gov
ernment properties here, listed by Rich
ards, he had conferred with members
of the supervising architects office of
the Treasury and officials Of the Park
and Planning Commission, and that
they had agreed that the principles of
valuation used by Richards in assessing
the value OF Government and private
property were comparable.
CramtOn Is Quoted.
During discussion of the questions
considering tax exempt Government
property here as an element in the
matter OF what should be the Federal
contribution to the District, Mr.. Muir
ply quoted Representative Cramton as
Iaving said that for years he had been
in favor of an appropriation to the
District as compensation for such loss
OF tax revenue, and something in addi-
tion," due to the desire of the country
that Washington, being the Nations
Capital. should be developed as the
most beautiful city of the country,
Mr.. Murphy opened his testimony
by outlining the functions of the Bu-
reau of Efficiency and pointed out that
through its entire existence it had been
engaged in making studies for con-
gressional committees.
Then he told of the bureaus original
investigation into the fiscal relations be-
tween the Federal and District gov
ernments which resulted in the prepara-
ton OF report in January, 1929, for