Evening star., 1944-09-25
New Source Of Taxes
Critical Need, Baume!s
Tells Virginia League
Municipal Delegates
Hear Real Estote Levies
Will Be inadequate
BY the Associated Press.

ROANOKE, Va, Sept. 25.-Harold
I. Baumes, executive secretary Of
the League of Virginia Municipah-
ties, today told delegates to the
leagues convention that "one of the
greatest problems confronting cities
and towns" now Is to find sources of
more adequate taxes to meet grow.
ing needs.
Il do not know of a single ma
t1onally-known tax expert in the
country who feels that real estate
alone can be relied on as an ade-
quate chief source of revenue for
municipal government in the fu-
ture," he said.
In his annual report, Mr.. Baumes
called attention to a report of the
State Taxation Departments Di-
vision OF Research and Statistics.
That report, he said, showed tho
aggregate assessed values of locally
taxable properties, real and per-
sonal, in cities, had increased from
1882 to 1872" but that in the same
period the estimated true value of
locally taxable wealth in the cities
had declined from s2,l42 per capita
to Sl,88l per capita"
He continued: With the ratio Of
assessed true value of real estate
approaching 100 per cent in many
OF the cities, it can only be a mat
ter OF time after the war, before
locally assessed value must decline
in line with the diminishing true
value of real estate. $50
increasing tax values DO not
necessarily reflect proportionate in
creases in true values, and
we should also consider the in
creasing population in our urban
centers which in turn enlarges the
need for governmental serv-
ices ."
David Lilienthal, chairman of the
Tennessee Valley Authority. told the
group last night that local and
regional planning, ow-priced elec-
trlcity, good highways and revision
OF its railway rates were tools by
which the Southeast could have in
naturalization and higher level Of
income without the evils of over
sized cities"
Rapid Growth Cited.
The IVA official said the rate of
increase in urban growth of nine
Southeastern States was more than
twice as great as for the Nation as
a whole" between 1880 and 1910. He
said the growth of cities would be
slowed "if the modern facilities and
services were available in the small
er communities and rural areas.
Asserting the South's low level OF
income was attributable to the fact
that it has been the producer of raw
products, instead of the professor,
Mr.. Lilienthal declared:
We do not need to choose be-
tween low income and the evils of
congested industrial concentrations.
We do not need to accept as in
evitable these evils of industrializa-
ton in order to have its benefits,
if We are wise"
Community and regional. plan.
! iAiiS, llC SdlQ, was VI tlle IllSL I'M
portance in avoiding "the mistakes
of this Nations older industrial
cities"
Electric Power Needed.
He said electricity-"at a rate un-
affected by geographical location
anywhere on transmission net
work"-was next in Importance in
the plan for the South. He said it
would make possible industrial op-
erations placed as close to the
source of raw materials as the dis
tance to the market permits =.
Furthermore. he noted. it would
give the small village and farm
home essential conveniences and
comforts of living
Present railroad rates. he de-
clared, ARE so designed that they
stimulate congestion in the already
industrialized East and discourage
industrialization in the Southeast
and Southwest. They should
be designed to bring about as nearly
as possible the kind of community
life the people want = -"