Evening star., 1959-05-27
Industry Is Called
Salvation for Area
Businessmen
Told Tax Woes
Can Be Eosed
BY ALFRED ALIBRANDO
star star Wriiar

otAA oAah WAitpN
Experts on economic develop-
ment today strongly suggested
that Washington's suburbs must
attract new industry to solve
their problem Of ever-risinR
taxes. ~
Richard c. Balm of the
Brookings Institution told more
than 100 business leaders at
tending the Metropolitan Area
Economic Development Confer
ence that the per capita cost
of government in Montgomery
County has risen from about
SIS to more than $160 since
1916. In Fairfax County the
per capita expenditure for gov
ernment services has risen from
about SIT to $3.50 and may go
to nearly $3.50 next year, he
said.
Mr.. Balm said that if "all
legitimate existing sources Of
revenue are already being
tapped" the alternative is new
sources of revenue, commercial
and industrial property.
After Mr.. Balm outlined the
suburbs financial plight. a solu-
ton was suggested by Theodore
K. Pasma, chief of the indus
trial location division of the
Department of Commerce. Mr..
Pasma said Fair Lawn, N. j.,
faced a similar fiscal problem
that of developing a l70-acre
tract with single-family homes
or with industry.
Comparisons Cited
| II developed as a residential
area it was estimated that each
of 500 homes would bring in
$3.50 annually in taxes, or q
total of SITS, 900. and would
reequire an expenditure OF
about $50 per year for munici-
pal services and education.
This meant a possible deficit
totaling $4,000 for the COM
munity.
If developed for research and
light industry, it was estimated,
the return to the town would
be about 100000 per year.
The site was developed for
industry and II plants are now
located there. The new indus
tries are paying taxes Of about
$3.50 900 year. When the in-
dustrial park is completely de-
veloped. tax revenues are ex-
pected to reach about $750.0o0.
Mr. Pasrna showed films Of
industrial buildings in the Fair
Lawn area. which won archie
tectural awards for their de-
sign. He also showed slides Of
Washington area industries
that compared favorably to the
New Jersey industrial park.
1T is clear that most in
dustries of the type which
might be attracted to the
Washington area want to be
located where they can be as
sured of a desirable address
and security against deteriora-
ton Of property values" he
said.
Against Restrictions
Companies want to be as
sured of good-neighborliness
through intelligent community
COMMISSIONING which will give
them proper protection, and
yet not be too restrictive" =
DR.. Edgar F. Bunce, jr., OF
the E. I du Pont deNemours
& Co. said industry is not
looking for short-term special
favors, such as tax exemptions
for a number of years, but for
long-range benefits.
I'VE avoid locations
where there is q feeling that
the corporate citizen, inani-
mate, voiceless and voteless,
can be pushed around >" DR..
Bunce said. His firm employees
nearly 10000 persons in Vir-
ginia. Maryland and the Dis
trict, he said. The total pay
roll for these employees is over
$50 million annually and the
company's tax payment to the
three jurisdictions is well over
SO million q year.
officials of the Washington
Board of Trade, sponsor Of the
one-day conference at the
Mayflower Hotel, reiterated
their assurance to residents of
the area that they are in
terested only in bringing light
industry and research facilities
here.
I'VE are not trying to create
a new Detroit or Cleveland
here" said Thornton w. Owen,
chairman of the boards Eco.
nomic Development Commit
tee. "The Board of Trade is
committed to the premise that
the basic purpose of the Fed
eral City is to serve as the
seat of government of this Ma
ton. Heavy industry Is in.
consistent with this concept"
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