Evening star., 1955-07-17
Maryland ooksto Zoninq
10 Control Speculation

mooefnl1atlou program Mary
land launched In January, 1854,
contemplates expenditure Of $5sl
million for rights-of-Hay and
$50 million for construction.
Earmarked Funds
In the first four years Of the
program t1954 through l957) i
Mr. Mccain said, $40 million Isl
earmarked for rights-of-way and
$24e million for construction.l
That's about Is per cent. Much
of that money is being spent inl
the Washington and Baltimorel
metropolitan areas where land |
costs have been on q constant
upward trend.
Mr. Moser reports that in thel
fiscal years of 1851 and 1852
Maryland spent about $50 nils
lion for rights-of- way. or about
q per cent Of the total outlay for
highway construction.
In the last 8 years of the l2-
year program t1958 through
1867, only about 6 per cent Of
the total outlay is earmarked
for right-of-way acquisition,
Another method of making itI
more difficult for spectators toI
profit at taxpayers expense Isl
the advanced right-of-way fund
used in California.
The Revolving Fund
That State has a revolving
$50 million fund which its high
way department uses to go into
rapidly developing areas and buy
up right-of-way before land
costs skyrocket.
Filing q subdivision plat isl
only one Of the ways a speculator
can justify demands for a high
price for land sold to the State.
Another is the filing Of q re-
zoning application.
Still another device is for al
group Of them To- buy several
parcels Of land in the path Of al
new road in various names orI
under various dummy corpora
tions. When this is done. rela-
tives and Office help often find
themselves owning expensive |
property on paper for awhile.
Sometimes. these parcels are |
transferred back and forth from |
one corporation to another in
the spectators syndicate. with |
q higher purchase price shown
on the records for each transac-
tion. When the State gets ready \
TO buy. IL finds the property has
jumped in value because Of these
changes In title.
Agree on Abuses
Title examiners all agree that
D speculator can easily make it
appear that he paid much more
than he actually did for a piece
,f property he is selling the
State merely by placing an excess
,f Federal stamps on The deed
The law requires that 81. 10 IN
TAX stamps be placed on rhe deed
oy the purchaser, unless other
wise specified, for each $1,000
of the purchase price. It specifies
no penalty for placing more
than $l.l0 per $1,000.
Most Of the time, highway land
SPECTATORS operate within the
law. or at least on the fringe Of
1t. NH II
They are violating the law.
however. II they bribe or other
wise persuade public officials to |
supply them with advanced in
formation on where the roads |
win go.
Comment on Spectators
Mr.. Mccain had this to say |
about land SPECTATORS:
There are two ways to specu- \
late on property in the path OF
State roads. One way is to ob-
tain copies Of the 12-year pro-
gram yellow book and see ap-
proximately where the route is |
going.
ALSO a speculator can see con-
struction Of a road starting and
figure what properties it will
hit further down the line. He
can buy 800 acres and gamble |
that the road will 60 through |
"The other way to speculate |
Is the nasty way. with advance
information, and it's something |
the commission can and will