Evening star., 1936-03-15
Slun,s' Cost to Municipalities
Is S1,0,Cn in p. W. Il. Study
Studies Stress Fact SLums Are BecOnt.
ing Staggering Burdens in Loss of
Reuenue and Price of Seruicing.

paid out approximately $3,200,000 to
provide routine municipal service for
this area-that is. for schools. police
and fire protection, street mainten-
ance, garbage removal and the like.
On the other hand, the taxes levied in
this area could have returned only
$l,191, 1852, but three years after the
| due date, had been collected only to
the extent of $58606l.
In other words, to service this area
cost the city two and one-half times
the potential tax income, while actual
tax receipts after three years amount
| ed to no more than one-sixth OF the
sum paid out.
The city of Birmingham. among the
smaller municipalities, has ~ distinct
blighted areas covering BIT city
blocks. Twelve of these areas are
occupied by colored families and cover
SAL blocks.
"On the basis Of 1000 comparable
blocks" a report stated, "the city
spends about s2.500,000 annually or
nearly one-half Of its budget to
operate about 20 per cent on an
area basis"
Considered from the standpoint of
per capita receipts and expenditures,
it appears in an even worse light.
The per capita expenditure in nine
Of the slum blocks exceed $50. exclu-
sive of schools, while the per capita
| expenditure for the entire city Is
$l9.14. 1t costs Birmingham $735, ,4l9
to provide essential services for the
area and the net loss over taxes COL
lected from it represents s6o6,624.
Net Loss of s269.47o.
The Philadelphia Housing Author
ity, in which metropolis P. w. A.
also is demolishing tenements. re-
Gently made a report covering As
acres of blighted area.
"On the basis OF these incomplete
studies" the report stated 'the As
return, if all are paid, of 67,329, and
a minimum load of government costs
of 1896 800, or net loss of s269, 40.
That is, these As acres consume
annually the tax returns from more
than $l0,000,000 worth Of other city
real estate. What must be the cost
for the larger areas Of slums in Phil
adelphia?" the association asks.
Latest Of all the studies is a report
on the income and cost of six dis
tricts in the city of Boston, prepared
under the joint auspices Of the City
Planning Board and the Advisory
| Committee on Housing.
This is an economic study which
is especially valuable because it meets
an objection that has been urged
against methods used in some other
cities to show that slum districts cost
a city much more than they con-
tribute in taxes.
| Directors have claimed that all
residential districts cost more than
they contribute and that the public
services they receive, especially their
schools, could not be maintained If
it were not for the surplus taxes paid
| by business and industrial districts.
| Direct evidence bearing on this claim
is offered for the first time in this
study of six areas, one in a down.
/ town business section, one industrial
and the others representing four types
of residential districts.
Confirms Conclusions.
The four residential districts rep
resent one Of high rentals. one of
suburban type, miscellaneous dis
trict of medium rental apartments
and a low-rental district in South
Boston. The report states:
The results amply confirm the con-
clusion arrived at in other cities
that the low-rent residential district
involves much the greatest deficit. A
small deficit is found in the suburban
district. But the high rental and
miscellaneous district show an excess
Of income over out-go. On a per acre
basis. the high rental district stands
below the business district, but ahead
Of the industrial district.
Further studies in other cities as
well as in Boston will be necessary
to prove how typical these samples
are, but they support a working hy-
pothesis Of great potential impor-
| tance."
On a per capita basis, the high
rental district pays the city a net
profit" Of S239 per resident, and the
miscellaneous residential district
s49.30 per resident, while the subur-
ban district shows a deficit of S20.50
and the low rental district one of $79
per residnt.
The Indianapolis study Of its large
slum area, comprising 10 per cent of
the city's population, provides some
revealing side lights.
For instance" the report stated,
$50 per cent of the city hospital serv-
ice during the year 1882 went to this
10 per cent of the population-three
times their share. More than 80 per
cent of the public relief went to fami-
lies in these IL census tracts. Arrests.
trials and imprisonments absorbed SO
per cent of the city's expenditure
along those lines. The average per
capita cost in the city for these ex-
penses was only so cents. In one CEN
sus tract the per capita expense on
account of felonies was between So
and SO. The average for the II was
$205."
Rehabilitation Justified.
One might run on at great length IN
demonstrating the extent to which
areas of high frequency in crimes, vice,
delinquency and disease enter into the
picture of municipal costs. Naturally,
Rail Problems