Evening star., 1933-01-27
ReaIt0r Says Debenture Sales
Will Draw Vast Sum
From Hiding.
REPORT ASKS CHANGE
IN TAXATION SYSTEM
Boards Session Given Findings in
Which Sales Levy Is
High Point.

iiieS lHto HealLny commercial use to
the benefit of the home buyers of the
| country, when debentures are sold by
the system, members of the National
Association of Real Estate Boards. In
convention here, were told today.
The statement came from Henry G.
Zander, Chicago, a director of the
regional Home Loan Bank of Evanston,
H., who also is director of the asso-
citation of realtors.
The debentures Of the new banking
system, secured by collateral having
value Of nearly twice the funds they
are to secure, he declared, will prove
to be of the best security and would
fuctuate in market value even less
than do the bends of the United States
Government.
Provisions for Sale.
The home loan bank act, he pointed
out, provides for sale of debentures.
under a rigid system of appraisal and
examination of securities back of them,
SO as to provide huge possible sum
for financing home purchases, in addi-
ton to the original $l25 900. 900 loaned
to the system by the Federal Govern
ment.
The debentures are designed to ap-
peal to the average person as small in
vestments and should serve to draw
vast sums out of hiding" Their sale,
he insisted. would not hurt the sale of
mortgage bonds of private corporations.
Pleading for public support for the
re- BANKING cys-em, ra.her than
"brickb7-s" Il declared t,2c system
Wouli fl ros i've reod fer rrovt-ion
Of lon5-term, ar-crtizod finance for
home builders and residential develop
ments, which now is suffering an almost
complete ending of junior or secondary
financing during the depression, funds
upon which new residential building to
large degree depends
Mr.. Zander spoke before the mort
gage and finance division of the asso-
citation, the convention today being
divided into 10 sectional meetings for
consideration of specialized subjects.
Important departures from present
system of taxation were proposed in the
tax program adopted yesterday by the
association. The report, submitted by
Herbert U. Nelson, national realtor sec
retarv, after three-year technical
strdv. lad been approved earlier by the
cctio1al directors
Tax Imitation and control and
| adoption of general sales tax are high
points of the proposed program, de-
signed to tighten the burden of taxes
now placed on owners of real property.
The first proposal Is that each
State vest in State agency power to
review any proposed tax levy, to revise
them downward or, in the case of q
bond issue, to veto them entirely, such
| findings to be final and binding.
As to tax limitation, the realtors
propose that each State adopt q con-
| stitutional amendment specifically linn
iting the tax on property for all pur-
poses. including debt service, to fixed
! percentage of its true value.
State School Maintainance.
! Another proposal was that the State
/ 9oVcrn-, eNt5 assume the cost of main
tanning public schools. so far as State
minimum requirements are concerned,
while the fullest possible control Of the
school administration be retained by
| local school boards The State gov
ernment, it was declared; has broad
taxing powers, including the power to
levy franchise, severance, income and
sales taxes, and, in raising taxes for
schools. should draw revenues from
this broad base. To assure ability Of
the States to assume this burden, the
realtors propose Federal general sales
| tax be adopted, one-half of the revenue
to go to the States on the basis of school
attendance, such funds to be used solely
to relieve real estate of school taxes in
each State by the amount it receives.
The association urged that cities as
well as rural communities be allocated
portions of State gasoline and motor
vehicle tax funds for maintenance and
building of highways.
The association proposed that be-
fore any special assessment or benefit
assessment be levied for any new pub
lie improvement written consent be
obtained from a majority of all prop
erty owners, representing more than
half the frontage Of the property it is
proposed to assess.
I'VE believe that we should move to-
ward the ultimate abolition of all spe-
ciai assessment laws" the adopted
statement reads.
The last point of the program calls
for amendment of State laws pertain
ing to property assessments SO that in
come or annual use value of a prop
erty should be one of the major factors
in the valuation.
j. c. Nichols, member of the National
Capital Park and Planning Commission,
in an address late yesterday stressed the
value of an efficient, fundamental plan
for the development of cities. He is a
former chairman of the City Planning
Committee OF the association.
Planning Keeps Down Cost.
He said Washington's planning work
has served to keep down the costs Of
the city building, emphasizing at the
same time that constant changes in the
growth of city have an important
effect on the cost of living, particularly
taxes.
AS examples of long-term savings in
taxes, resulting from the work of the
! planning commission. Mr.. Nichols cited
| programs for relief of downtown traffic
congestion.
If the remainder of the District street
| plan can be modernized, he said, more
than $5,000,000 In street improvement
costs can be saved. He held that by
| the laying Of by-passes and periphery"
streets, much congestion is being cured.
The secondary streets, he asserted,
have paving that Is too wide and too
heavy for the need, and have curbs that
are too expensive and sidewalks that
| are too wide.
| chairman Of the Housing Committee Of
the realtor body. who opposes the pres
ent plan for Government loans for tax
exempt housing projects. yesterday gave
detailed outline of problems Of finance
! and taxation.
! L. T. Stevenson, president, named
! new special committee, headed by Leon
ard P. Reaume Of Detroit, to study the
problem.
Many projects, proposals and prob
lens in the home building field were
discussed last night by members Of the
Home Builders and Subdividers' div.
sion, ut . dinner session at convention
headquarters, the Willard Hotel