Evening star., 1939-01-16
Federa|Rea| Estate Board Created
To Handle Tax Loss Other Issues;
Social Security Expansion|sA Asked
Message Explains
Duty in Disposal
Of Property
4y the Associated Press,

President Roosevelt announced the
creation by executive order today of
Federal Real Estate Board.
In special message to Congress,
Mr.. Roosevelt said the boards duties
would include recommendations for
disposition of surplus real estate
owned by the Government. He
added it would also make recon-
mendations regarding "the situation
in different communities adversely
affected by the loss of tax revenue
on land purchased or acquired by
the Federal Government.
The President said the executive
order carried out a recommendation
of special committee named by
him in 1885 to study Federal owner
ship of real estate and its bearing
on local taxation.
The board will consist of one rep
resentative each of the Treasury
Procurement Division, the Depart
,nents of Agriculture, Commerce,
q Interior, Justice, Navy and War: the
Tennessee Valley Authority and the
Bureau of the Budget. These men,
bers will be appointed by the heads
of the departments. The board also
may designate additional members
from other departments The Treas
ury Department representative will
serve as temporary chairman pend
ing selection of permanent head.
Requires Permanent Board.
The Presidents order requires
maintenance by the Procurement
Division of permanent current
record of all Federal real estate. 1t
also requests executive departments
and agencies contemplating acqui-
sition of real estate to find out from
the Procurement Division whether
any property owned by the Govern
ment might be available for the pur-
pose contemplated. In all such cases
the departments would be required
to confer with the Real Estate
Board.
The committees report showed
that the Federal Government owns
approximately 20 per cent of all the
land in the United States. Its hold
, ings in the middle of 1887 we're
tabulated at 394,657721 acres, valued
with improvements, at $4,696, ,O62, ,OOO
1t consists mainly of parks, graz
ing lands, wild life refugees and
similar acreage and is located in all
the States and in 1923 of the 3,07l
counties in the country.
Holdings vary greatly from State
to State, running as high as 81 per
cent in Nevada and as low as lilo
OF l per cent in Iowa. Virtually all
the land in four counties in Nevada
and one in South Dakota are owned
by the Government.
The report also contained an ex-
tensive study of the effect of ex-
empting Federal land from local
property taxes.
Tax Potential, S91, ,O51,374.
1t estimated that property taxes
on the Federal land would amount
to $91,051 ,374 at 1887 valuations, but
pointed out that the States re-
ceive much larger sums from the
Federal Government in various
forms OF aid for relief. highways
and other purposes For the period
l928-37, the investigators said, the
taxes on the Federal land would
have amounted to only II per cent
OF the amount of Federal aid they
actually received.
A legal analysis accompanying the
report said, however, that the Fed
eral Government probably could
waive its right to exemption from
property taxes on Federal land if
1t desired. 1t noted that Congress
ALREADY has permitted local govern
mental agencies to tax the property
OF various Federal corporations, such
as the R. F. C. and H. o. L. C.
The text of President Roosevelt's
real estate message follows:
AT meeting of the National
Emergency Council held December
II. 1885, I designated the Secretary
OF the Treasury, the Attorney Cen
eral and the acting director of the
Bureau of the Budget to serve as a
committee to make a study of Fed
eral ownership of real estate and
OF its bearing on State and local
taxation. This study has been COM
pleted and I am transmitting here
with for your information, and such
further use as you may deem de-
'sirable. the report of the committee
and the accompanying tables and
charts
Recommendations Gifted.
1T will be noted that the report
concludes with the following recon-
mendations
"D That all branches of the Fed
eral service be directed to declare
completely, accurately and promptly
their surplus land and improve
ments in order that a prudent use
for such properties may be found
(See REAL ESTATE, Page A-3)