Evening star., 1940-04-26
High Taxes Retard
Recovery, 0'Mahoney
Tells Really Farley
Speakers at Conference
Stress Problems Faced
By Property Owners

Senator O'Mahoney. Democrat, of
Wyoming, who is chairman of the
Temporary National Economic
Committee, today told the national
real estate tax conference at the
Mayfiower that tax pyramiding is a
major deterrent to economic re-
covery. The conference met yes
terday to search for an answer to
the Nations tax problem which
would result in shifting some of the
revenue burden from real estate.
F. B. Bourland, Illinois manager
for the Home Owners Loan Corp,
said his organization and other
mortgage lending institutions had
found that high real estate taxes
decrease values on homes, block
sales and retard the spread of home
ownership. He said, moreover, that
the tax situation was a large factor
in the debacle that brought into
existence the need for the H. O..
L. C.
Now the H. o. L. c." Mr.. Bour-
land said, "in its policy to return its
properties to private ownership at
the first possible moment without
dumping and without destroying the
market which it was created to
protect, faces again, as it did dur
Ing the refnancing period from
1933 the obstacles presented by high
taxes and disproportionate assess
ments"
Tax Adjustments Held Necessary.
The conferees heard from Robert
H. Armstrong that business districts
suffering from the current trend
toward urban decentralization can
not come back in an economic way
unless property taxation is adjusted
to meet changed economic condi-
tions. Mr.. Armstrong is president
Of the Ely Economic Foundation.
Ivan A. Thorson of Los Angeles
urged that real property be valued
for tax purposes primarily on the
basis of its earning power.
The merit in change in the real
estate tax structure was pointed out
to the conference by a statement
from Gov. Clarence D. Martin. His
statement, read to the delegates by
Herbert U. Nelson of Chicago, said
that in 1888 the State of Washington
put an overall limit on the real
estate tax rate. The result, the
Governor said. has been State and
local financial soundness and an in
centive to building. The limit is 40
mills on so per cent valuation
L. j. Taber, master of the Grange,
protested that the real property tax
system still largely in vogue, hold
over from the days when real estate
was the principal revenue producer
for governments, threatens the
economy of Americas farmers. He
urged that every State write tax
limit into its constitution. Herbert
D. Simpson, professor of public
finance, Northwestern University,
said the tax system is prolonging the
depression. g..
Banquet to Close Conference.
The conference, which opened yes
terday, closes with banquet at the
Mayf1ower at pm, with Roger J.
Whiteford, Washington attorney, as
toastmaster, and Representative
Celler, Democrat, of New York as
the principal speaker. The meeting
was to hear this afternoon from
Lawrence G. Holmes of Chicago and
Prewitt Semmes, Detroit, after the
Resolutions Committee held hear
ings The committee elected yester-
day is composed of:
Graham Adds of Chicago, chair
man; Col. 0. o. Ellis, Baltimore:
Herbert D. Simpson; Fred Brenck-
man, Washington representative of
the National Grange; John Watson,
Chicago; Byron T. Shutz, Kansas
City; James G.. Baker, st. Louis;
Newton T. Farr, Chicago; John F.
OBrien, Newark; Thomas D. Carson,
president of Washington Properties,
and J. w. Wheeler, Seattle.
The Governors of seven States
have representatives at the confer
ence-Ohio, Pennsylvania, Georgia,
Florida, Arkansas, New Jersey and
California. The conference chairman
is Myers T. Cooper, former Governor
of Ohio. The secretary is Lawrence
G. Holmes of Chicago. Vice chair
men are Graham Adds, James Med.
Shea of Washington, president of the
National Apartment Owners Asso-
citation; Fred Brenckman, Byron T.
Shutz and John C.. Bowers of
Chicago.