Evening star. [volume] (Washington, D.C.) 1854-1972, 1937-04-20
fPtctureS on Page BIZ
BY JAMES r. CHM

Surprised by admissions from Dis
trict officials that thousands of dol.
lars in revenue are lost every year in
tax evaslons, special Subcommittee.
Of the House District Committee gave
indications today it would recommend
legislation to curb the practice.
The admissions were made by Com
missioner Melvin c. Hazen and Tax
Assessor Fred D. Allen, first of a
group Of witnesses called before the
subcommittee IN its dual study Of the
Collins tax bills and the proposed re-
organization of the municipal govern
ment in the interest of efficiency and
economy.
Allen revealed that evasion Of the
tax on Intangible personal property
is widespread because the District
Just can't get at it." He also point
ed out that under existing law it is
possible for persons and corporations
to transfer bank deposits to another
jurisdiction June 30, the day before
the annual assessment is levied on
personal property. return them July
2 and thus escape the tax.
Big Discrepancy Shown.
Bank deposits on the call date last
year, Allen explained, showed s27O,-
100000 on deposit, but the personal
property tax returns indicated there
wss only 100000 of that amount
on deposit July /.
We have no way Of knowing" he
declared, whether the money is taken
out or whether people fail to report It,"
The second hearing of the subcom-
mittee will be held Thursday at 10 am.
The committee room today was
damned with District officials, busi-
ness men and civic leaders as the
hearing opened, and radio micro
phones picked up the proceedings for
broadcasting over WMAL.
Commissioner Hazen, as we'll as
Allen, was subjected to a barrage
of questions about the District tax
system and its weaknesses. Particular
stress was placed on alleged widespread
evasion of the Intangible personal
property tax.
Hazen Opposes Tax Program.
Commissioner Hazen, called as the
first witness, Immediately registered
opposition to adoption of a tax pro-
gram that would raise more than the
100000 needed to meet the ex-
pected deficit.
The Commissioners realize that
IS 900, 900 will have to be raised" he
declared I'VE are not entirely in
sympathy with all the tax bills that
have been introduced We don't see
any necessity of raising more than
that amount. We don't see any neces-
sity of taxing the people an addi-
tional 100000 when we don't need
it."
Hazen said the Commissioners we're
prepared to submit a complete tax
program, which would include bills
they believe should be adopted.
Interrogation of Hazen was sud-
denly interrupted and Tax Assessor
Allen called to the witness stand.
AAllliCOldtSly llSpiSoSiiOdliNC al hoeii,
Republican, of Illinois asked him if
property assessments in the District
is made at the fair value.
Assessments Made Yearly.
What we are trying to do" he an
swered, sis to assess land value at
fair sale price and buildings at cost Of
construction, using reproduction cost
now New assessments are made on
all properties every year and on new
buildings twice year" Dirksen
next questioned Allen about fluctua-
ton in assessments. He explained
that the assessments totaled 81 ,226,-
100000 in 1882 and s1l44, 100000 in
1887. The peak was reached in 1888.
he testified, when the assessments
totaled $l,229,OO0 900
Asked about the amount Of uncol-
lected real estate taxes, Allen said
there is only S65,000 outstanding.
which represents less than one-half OF
l per cent of the total collections.
Questioning of Allen veered to the
intangible personal property tax.
which one Of the Collins bills pro-
n