Evening Star Newspaper, December 17, 1931, Page 4

A4 THE EVE IRERS MY L STATETAXBILL Mapgs Measure Seems to [tack Safeguards of B2 State Laws. fGqntinued From First Page) It.45 the operation of this 80 per cent claufie, however, together with the rates pmufiefi in the new bill, which have led expérts to inquire whether the new taxeg after all will serve to raise the levy on local estates substantially above the present level. No final answer has been redched as to this inquiry, but it is belng vigorously pursued. Unfortu- | nately there is no way of answering this question at present, as no hearings on the bill ‘have been permitted. Past Situation Reviewed. To teach a clearer understanding of the estate tax situation it is well to re- | call that prior to the 1924 Federal estate tax law, the Federal Governm. took all of the estate tax accruing, without allowing one cent of credit 1o | the Btates. Some States applied their | OWn State taxes on top of the Federal levy. -thus forcing the executors of estates to pay twice. once to the eral Government and once to the St THe principle of the credit to States was ingorporated for the first time into Federal legislation in 1024, when the limit of credit to States vas fixed at per cent. In other words, the Fede Government subtracted from levy | an amoant paid to the local common wealth in estate or inheritance taxe: up to 25 per cent of the total of th Federal levy. This was increased later | to 80 per cent. where it now stands. | Many of the States have changed their estate tax laws since the 80 per | cent credit feature Was incorporated into Federal law. These States have set up their own legislation in various ways and with varying rates. So far as could be learned. no recapitulation of all these State laws has been made to strike the average rates. and determine what is the normal or average inherit- ance or estate tax paid by these States Levies Are Fixed. But in several of them it has been expressly written into State law in one | kind of language or another that the ! State cannot _collect more than 80 per | cent of the Federal levy, thus leaving the 20 per cent for the Nation. The New York State rates on es. for instance, are virtually figured out at| about 80 per cent of the Feder tes Florida, Massachusetts and Penns vania have provisions in thei tax laws which operate somewh lar although the State of Massa- d- ou| chusetts also has an inheritance tax in |, addition to the estate tax. These two taxes—inheritance an estate—are really separate and distinct The inheritance tax for instance is de- | fined by one expert as each legacy or distributive chare” The . on the other hand, is a tax | “on the right to transmit and is com- puted on the estate as a whole.” In the House Committ-e report cn the new District of Columbia estate tax bill vas explained that the estite tax was 'ed as against an inheritance tax, because the estate tax was simpler, and easier to administer, Take the State of Florida, for in- stance, which has no inheritance t in order,to attract wealth, but which has recently enacted an estate tax. to get 1ts 80 per cent of the Federal esiate levy. The Florida law has a kind of restriction which operates to make its estate tax equal to about 80 per cent of the Federal tax. Florida law says, in part: “If is hereby declared to be the purpose and intent of this act that the highest amownt of tax ich may be collected by the State of Florida under this act shall not excced the amount of credit which the taxpayer may be | allowed by the laws ef the United States. to have credited on taxes pay- able to the United States by reason of taxes paid as inheritance or estate taxes to the State of Florida as provided by the laws of the United States at any time in force and effect.” Estate Tax Restricted. The State of Missisalppl, with both its inheritance and estate tax, still has in its law a Rind: of: restricticn on the estate tax. This 13w says, in part, that the amcunt of the estate tax “shall be the amolnt by which 80 per cent of the estate. tax payable to the United Staes | under the provisions of the Federal Tevenue act of 1926 shall exceed aggre- gate amount of all estate, inheritance | legacy. and succession taves actually paid to the several States of the United States, in respect of any property own- ed by such decedent or subject to such taxes as a part of or in connection with his estate,” 2 New York, which formerly had both an inheritance and an estate tax, re- cently repealed its inheritance tax, and now rests entirely upon its estate tax in this particular for revenue from wealth of decedents. ‘The New York Tates are computed at very close to 80 | per cent of the Federal cstate tax rates, | In the State of Pennsylvania, is also a heavy contributdr to the Fed- eral till, there are both an inheritance tax and an estate tax. The inheritance | tax stands at 2 per cent on bequests left to close relatives, and 10 per on all else. The Pennsylvania tax carries, however. another one of those provisions which reads in part as follows: “Whenever in any estate the total tax paid or payable to the Commonwealih and any other State or Territory at the rates fixed under the inheritance tax law, shall be less than the total credit sllowed by the Federal law for taxes peid to the States, then the tax im- posed by this act upon the transfer of such property shall be an amount equal to the difference betwesn the total credit allowable by the Federal Jaw for taxes payable to the State government ! and the total taxes actually paid or payable to the Commen vealth and any other State or Territory under the in- heritance tax laws.” Exceptions Are Cited. ‘This reference to “other State or Territory,” included in several of the laws refers to taxes placed for instance upon such things as a farm in Ken- tucky, belonging to a man who died in the State of Pennsylvania. The | Kentucky estate tax on that farm is included with the Pennsylvania estate taxes in computing the 30 per cent credit allowed by the Federal Govern- ment. Thus it is seen that the estate taxes! of both Massachusetts and Pennsylvania are only designed to “take up the slack” between the inheritance tax level and the 80 per cent crecit allowed by the Federal Government But when experts turnad to a critical ®udy of the proposed aew District of Columbia estate tax law, they found a situation surprisingly reversed. Instead of a restriction holding down the local estate tax to 80 per cent of the Federal levy, the new District bill con- tains a provision forcing the District to levy a local estate tax up to the 80 per cent. Some students of the bill ap- peared today to be satisfied with this provision as adequate, meaning that the District of Columbia coffers would thus benefit to the full extent of the 80 per oent credit allowed by the Federal Gov- ernment. As a matter of fact, the lan- guage of the bill itself holds forth in somewhat “generous” language the promise that the. purpose of this scc- tion 1s to obtain the “benefit” of the : that the full'80 per cent shall reached “by imposing additional and the law shall be “liberally construed to effect such purpose.” Story Incomplete. But more careful scrutiny by experts familiar with State estate tax laws disclosed that this is not the whole story, by any means. In the first place, the rates of the £ | wilacr | Christmas with her “A tax on the | g right to receive and Is computed upon || | Paroles to Bring Christmas Cheer To 45 D. C. People Man, Free After 18 Years, Has Boyish Desire to Trim Tree. An orderly recently opened the iron- arred gate which leads into a Federal ison grounds and bade good-by to a man who had entered that gate as a youngster 18 years ago. And that is! how it came about that Jim will spend his first Christmas &t home since he was 15 years old Due to an intensive investigation of | the District of Columbia Rehabilitation Bureau, Jim was allowed nis freedom | almost ' as suddenly as it was taken| from the irresponsible boy 18 years! ago. He was paroled from a 30-year | sentence being sorved for a grave crime, but a crime unintentionally committed. And now, in this newly acquired free- dom, is apparently just a trifle be- 4 with anticipations of a Christ- mas at home Jim's boyish desire to decorate & Christmas tree, because he vaguely recalls gayly tinseled trees and gifts many years ago, is different from the desire of another Washington person— a mother—who was granted her parole last wee ‘This woman, separated from her husband and two babies last De- cember, wishes only one thing, and that, to watch the expressions on two youngsters' faces when they each re- ceive a stocking filled by her own hands Christmas morning, Confined to the! District of Columbia Workhouse 16 months ago for a crime which she was partially justified in committing, ac- cording to the Rehabilitation Bureau, her five-year sentence was revoked last week so that she might spend this mily. Not only does the bureau obtain pa- roles in cases where men and women are deserving, but workers establish and follow up each prisoner's home life after his or her release. So to more than 45 men and women this Yuletide season the Rehabilitation Bureau, an agency of the Community Chest, offers gifts of freedom and home, District of Columbia estate tax bill are s now in effect ral estate tax law. Pre- s would be applied :o the same property by both the experts of the Internal Revenue Bureau and the tax assessor of the District of Co- for the Fede:al and the Dis- t te tax respectively. As the rates are very nearly alike, lower tn some instances and higher in others. it has been estimated that the District f Columbia estote tax, instead of be- ing about 80 per cent of the Federal tax ¥, would be, to the contrary, somewhere nearer 90, 95 or 100 per cent of the Federal levy. This would ace an additional burden on the es- because only 80 per cent of the total Federal levy could be credited to the District of Columbia. other words, to take & specific ex- has been suggested othetical problem might work out as fellows: Suppose that the Federal Government fixed an estate tax levy of $100.000, of which the 80 per cent edit to the District would be $80.000. Suppose that instead of the high rates of the present bill, the local law re- stricted the local estate tax to the 80 per cent. Then the taxpayer would pay $80,000 to the District of Columbia and $20.000 to the Federal Government, sat- isfying both with a total of $100.000. which was the exact total of the Fed- eral levy. As a matter of fact, estates in the District of Columbia now are paying the Federal estate tax, but with- out contributing any part of it to the District of Columbia. D..C. Situation Different. Instead of the above example, how- ever, it has been figured out. using the {rates of the new District of Columbia i?siq\? tax bil, that an entirely differ- | ent situatio: executor came to settle with the Dis- trict and Federal authorities. Suppose, for instance, that the Federal experts fixed a levy of $100.000 tax, of which the 80 per cent credit to the District would be $80,000. The District tax a: sessors, with almost the same rates as the Federal Government. would have to fix higher figure, probably nearer 95 per cent, amounting to about $95000. The taxpayer would have to pay the Fed- eral Government the regular 20 per cent, or $20,000. and also pay the Dis- trict of Columbia $95.000. which would in excess of the total Federal tax levy. This example shows, it was pointed out, that under new District of law the local es- iding the total of etween the Federal and the District Government. with a total of $100.000. would be forced to pay an additional $15.000 to the local government, or a total of $115.000. In other words, he would be forced by the District to pay $15,000 which could not be counted as exemption by the United State Bureau of Internal Revenue. It is just this kind of $15.000 extra which come other States have specifically prohibited in their own ate tax laws, There may be exceptions, it was ad- mtied, in the cases of some States where the local inheritance tax rates on aller properties are much higher than the Federal rates, and this would biing the local contributions above the 80 per cent Federal credit. But the general principle of balance, 80 per cent to the State and 20 per cent to the Federal Government, is becoming so firmly established as States enact further estate taxes that the new District of Columbia bill has occasioned surprise by “putting the shoe on the other foot,” so to speak. the Feder Bill Allows Excesses. Instead of guaranteeing that no more than 80 per cent of the Federal levy shall be exacted for local estate tax, he bill makes it mandatory to extract t least 8) per cont and leaves the gate wid> onen for the application of rates to let the local estate tax soar far be- yond the 89 per cent The similaritv of the proposed Dis- trict of Columbia estate tax rates with those of the present tax law can be easily seen by the following table taken from the new bill and the present law. The classes are somewhat different Net estate not in excess of $50,000, 1 per cent for both local and Federal tax. Between $50,000 and $100,000, 2 per cent for both. Between $100,000 and $200,000, 3 per cent for both. Between $200.000 and $300,000, 4 per cent for the District; between $200.000 and $400,000, 4 per cent for the Federal levy. D. C. Rate Held Higher. Between $300.000 and $500,000, 5 per cent for the District; between $400.000 and $600.000, 5 per cent for the Nation. This rhows the! between $300,000 and $400.000 the mew !~z rate weuld be 1 per cent higher than the present Fed- eral rate, Between $500.000 and $750,000, 6 per cent for the District; between $600.000 and $800.000, 6 per cent for the Nation. Between $750,000 and $1,250,000, 7 per cent for the District: between $800.000 and $1,000,000, 7 per cent for the Nation, Between $1.250,000 and $2,000,000, 8 per cent for the District; between $1.000.000 and #1,500.000, 8 per cent for the Nation: between $1.500.000 and £2,000,000, 9 per cent for the Nation. Rate Classified. Between $2.000.000 and $5.000,000, 10 per cent for the District; bstween £2.000,000 and $2,500,000, 10 per cent | to needs” was expressed in a resolution that a | would exist when the local | not the 80 per cent, but & much | bring the total up to $115.000, or §15,000 | ICTIZENS 0PPOSE - D. C. TAX BOOST Chevy Chase Group Also Pro tests Cut in Federal Contribution, Opposition to & reduction in the Fed- eral Government’s contribution to the District's revenues and to the ‘“raising | of taxes without close consideration as adopted unanimously last night by the Chevy Chase Citizens' Assoclation. The discussion was precipitated by Edwin S. Hege, who suggested that the association go on record against the tax proposals for the District now be- fore th» House, “so that the Senate might feel that the citizens of the Dis- | {trict are fully awake as to the situa- {t.on.” One by one he explained the various tax bills cnd warned that the ultimate purpose of Congress seems to {be & desire to create a Natlonal City “out of the pockets of the taxpayers.” Points to Budget Cut, Mr. Hege pointed to the necessity of the District operating on a greatly re- duced budget, a condition, he said, from which there is no escape. “We might {as well make up our minds to approach | | all suggestions for expenditures in that manner,” he said. Fred S. Lincoln {offered 'the resolution. Maj. H. L. Robb, Assistant Engineer | Commissioner, and Miss Sibyl Baker, | cupervisor of playgrounds, reported on the progress of improvements at the | Chevy Ch Livingston stret and Wo |avenue. The work is belng pushed as rapidly as money is available Garden Is Planned. Miss Baker said that a section would | be reserved as a garden to give a needed beauty to the grounds, and shrubbery | would be planted along the bordes One of the features of the improvements is to be a playhouse of the Colonial manor type and a segregated area for small children. Dr, John A. Logan reported a com- mittee had investigated . the recent “mad-dog scare” in Chevy Chase and assured the members everything possible was being done to safeguard children from this danger. He declared any one lias a right to call a policeman and ob- tain authorization to have a dog sus- pected of being rabid placed in quaran- tine. ! Sécretary Arthur Adelman reported the acquisition of 100 new members. | H. V. Schreiber, newly elected president of the assoclation. presided at the mect- | ing, which was held in the E. V. Brown | School. WINS SPELLING BEE i Mrs. C. §. Gartrell Given Cup for| Knowledge of Word “Dehiscent.™ Mrs. C. S. Gartrell of 1826 Ingltside terrace won the District spelling cham- plonship at a contest last night in! {Mount Plezsant Library through her ability to spell “dehiscent.” She was awarded a cup, which will remain in her possession as long as she successfully | def nds it | Thomas A. Brickhouse of the Am-| bassador Hotel was second in the con- ! test, while third plice went to Mus. | a Linzill of 1502 Vermont avenue | There were 22 competitors in the | spelling bee | | new local estate tax bill is found in the | exempticns and deductions allowable in | | figuring the net estate of District of Co Iumblia decedents as contracted to Fed- eral exemptions. Whereas the Federal law allows a | fiat deduction of $100.000 in additicn to all properly chargeable deductions such as debts, claims against the estate funeral expenses, etc., the new local bill has exemptions much lower. This would tend to bring the computation of the local District of Columbia tax still closer to the amount of tax assessed by | the Federal Government, cr perhaps | | even exceed it. As contrasted to the deduction of $100.000 allowed by the Federal Gov- ernment on which no estate tax is laid, the new District bill provides deduc- tions as follows: “There shall be de- ducted from the gross estate property having a clear market value of $20.000 transferred to the widow of the dece- jdent, property having a clear market value of $10,000 transferred to the hus- band of the decedent, property having a | clear market value of $5.000 transferred | to & brother or sister of the decedent, | Property having a clear market value of | $2.000 transferred to any lineal ancestor {of the decedent, legally adopted child, | stepehild, any child to whom the dece- dent for not less than 10 years prior to death stood in the mutually acknowl- edged relationship of parent.” There are further provisions concerning the establishment of the child’s relation- ship. Then, further, the bill provides | that “in case no property passes to any | beneficiaries enumerated in this section, | or if the aggregate of the value of the ! property passing to such beneficiaries is less than $1,000, there shall be exem | ed property having a value of $1,000." Mellon Asks Boost. Meantime Congress has been asked by Secretary of the Treasury Mellon to increase the rates of the Federal estate tax, but as his proposal would leave the State credit at the same status as it is now, there would be no change in the amount of money flowing to the Dis- trict coffers out ‘of the Federal estate tax. The Secretary recommended, in eflect, return to the estate tax of 1921 Whose rates are somewhat higher than the present, but he explained that “in order to avoid the undesirable result of automatic increase in State levies on estates in certain States in which such taxes are based on the present Federal rates, it is proposed that the increase be effected by means of a supertax, to be imposed in addition to present rates, with no deduction from this supertax for State taxes paid. Under such an arrangement,” he explained, “amounts of State taxes paid would continue to be allowed as credits against the Fed- eral tax as provided under the present Jaw, up to 80 per cent of the latter tax, but the entire proceeds of the proposed supertax would be retained by the Fed- eral Government.” The new local estate tax, it is esti- mated by the report of the Mapes Com- mittee, should produce an annual reve- nue of not less than $750,000. The Commissioners of the District of Co- lumbia are given authority to sunervise enforcement of the act and to have the tax assessed within 90 days after the completion of the inventory of the estate by the Probate Court. It is fol be collected by the District tax col- | lector. Filing Time Set. The Federal Government requires that a return shall be filed on the Fed- eral estate tax within one year after death of the decedent, and that final audit and disposition of the case shall be made within three years after the filing of the return, but it is cus- tomary to try to complete the whole procedure within one year. Credit would be given in the Federal estate tax, only for actual cash payment to the District collector of the new local estate tax. The new District estate tax is only one of four new tax measures intro- duced into Congress as a result of the work of the Select Committee investi- gating, fiscal relations between the United States end the District of Co- or the Nation, ranging up to 14 per cent for the Nation for estates between $4,000,000 and $5,000,000. For all net estates over $5,000,000 the District bill would impose a rate of 15 per cent, while the Federal rates are graduated in brackets from 15 per cent on up to as high as 20 per cent for $10,000,000 and over, Further ground for suspiclon of the lumbia. It is part of the fiscal program of the committee which would decrease the annual Federal contribution to the District of Columbia from $9,500,000 to $6,500,000. The other new taxes pro- Pposed provide for doubling the gasoline tax from 2 to 4 cents, an income tax to be .xublmuted for the lnunnhll: p:eré sonal property tax, and & graduat automobile weight tax. - | Federal holdings, is greater than in 10 | parative purposes, | the most reliable that could be obtained | How the Experts Disagree Bureau of Efficiency and Mapes Findings Compared. Analysis Shows House Gyoup Condemned Weaknesses of the Very System It Followed. s the report of the Special Mapes Fiscal Relations Com- “rxlunz:?:l:xtf::ynfiue. recommending a reducticn of $3.000,000 i the an- nual Federal contribution, showed it differed in two chief essentials with a similar report of the Unn‘e&sum Bureau of Efficlengy—a report dis- c Mapes Comm! 3 Flrs:,r ;i}e‘g :(yn;:: Cnnln’mmee followed & miethod in arriving at the tax burden of the District in comparison with 22 other cities, radically different from the Pper capita assessment method used by the Bureau of Efficiency. Second, the Mapes Committee did not include in its computations, a theo- retical tax llability for the Federal Government to cover the comparative value of its extensive property holdings required and used for the ordinary business of the Government which are exempt from taxation. ‘What is the result? By its method of computation, the|a comparison of assessed valuations, tax Mapes Committee finds that the per|levies and so forth, in cach of the 23 capita tax revenues in the District, | cities used in the comparison. With without treating any part of the Fed- reference to the ratio of assessed valu- eral contribution as being paid in lieu | ations to the actual value of property, of & tax, amounts to $55.21, or $3.06 less the committee said this information Per capita than the average for 22 other gathered from the various sources men- cities. tioned was supplemented by the kiowl- edge of its special investigator, George Greater Than in Many Cities. Lora, ‘of assesament condtiions’ i sesc The Buresu of Efficlency found that | eyl cities gained by previous investi- the per capita tax revenues for the,Dis- | c:ti ™ trict In comparison with 14 other citles| *r}\¢" Byreau of Efficiency procured its of comparable size amounted to $13.15 | ;. when the Federal holdjngs required and | used for Government business were in- | cluded humtilxnble.xnnd $57.48 excluding | ese holdings. In other words, the|; cial records of each- city, bureau showed that the per capita tax SPo¥R by official e 3 burden in Washington, including the | cupita method to obtain 2 common basis for comparison with Washington. | Washington's assessed valuation per capita was, therefore, applied to the population of each city to determine its adjusted a d valuation. Then, by dividing the actual tax levy by the ad- Justed asscssed valuation, the adjusted tax rate was established. This m-‘thed, the bureau found, mel the obje often raised to the method used by th Mapes Commiitee—that consideration :s | not given to varying price levels in the everal cities. ¥ F“‘unhermor!_ the Efficlency Bureau believes it would be “manifestly unfair” to compare the tax revenues in Wash- ington_ with Lh(»‘i in other cities with- out, taking into c a property holdings of the Federal Gov- ernment, which are exempt from taxation. Two Computations Made. “To establish comparable tax data | for Washington,” the bureau said. “it is necessary to determine and include the amount the Federal Government would pay in taxes to the District of Columbia on its property holdings used tor the transaction of the Naticn s busi- ness if it were subject to tax fore two com 1ons of adjusted as- sessed valuations and tax rates were made for Washingtcn, the first on the basis of Washingtor assessed valua- tions per capita, exclusive of all Federal property holdings, and, second. on the one has as high an assessed valuation per capita, including the prop hold- ings of the Federal Governme) other than park property and property used for the exclusive benefit of the District government In the 14 cities which the bureau compared with Washington. nct cne of them has as Jow an act real property as Washing cne has as high an as per capita, either for r r personal property, as Washin Therefore. although Washington has a lower tax rate than any of these cities, tax rates on real property are adjusted on the basis of Washington's assessed of the 14 cities which it investigated and without fhclusion of the Federal property exceeded 4 of the citfes. | In its report, the Mapes Committee condemned the per capita basis of as- sessments, as well s the per capita basis for determining tax burden, de- claring it is impossible to arrive at & true comparison of relative assessed valuations and tax levies by any such method. The Bureau of Efficiency, however, believes that the per capita basis of as- sessments is fair and reasonable since it is & method of adjusting assessed values to fair values solely for com- and therefore ob- viates the use of varying opinions and guesses #8 to the ratio between the assessed value and market value. In this, the bureau is supported by the Mapes | Committee, which on page 7 of the offi- | cial copy of its report to the House | states: “‘The realm of science boasts no sub- fect more elusive —more controversial— than value’ (Assessment Manual, City of Rochester, N. Y. 1930, page 1). ‘There arc so many factors to be con- sidered in arriving at the valuation of Property such as the use, income, loca- tion, construction cost reproduction cost. depreciation, etc. that no two minds will get to a very near approach to uniformity in determining such valu- ation. That s particularly true of those charged with the administration of assessments laws. " Ratios Believed Accurate. Notwithstanding this expressed view of the commiltee, it followed a method in reaching its conclusions on the tax burden for the District and 28 other cities that is open to the very criticism that the committee itself pointei out he committee, however, made this statement “Although 1t 1s dificult to determine the relation of essed values to actual values, the committee believes that the ratios as they appear in the statistical tables, attached hereto, are as accurate as it s possible to obtain. These ratios were obtained from the administrative offices of the municipal governments, who actually make the assessments, and from such organizations as real estate boards. chambers of commerce, and in- dividual citizens famillar with' property values. These administrative offices organizations and citizens, being f miliar with property values in their re- spective communities. are more compe- nt to detcrmine the actial ratio of s-ssed valuations to actual value than any one else, and. therefore, the infor- mation they furnish the committee ‘s Yoldings being included, as ciency Bureau declares thes Washington's tax rate is $17 as c~m pared to the average of $1729 for the other 14 cities. It also is emphasized that whenever the comparative assess- ments and tax burdens are thoroughly and scientifically tested. the District assessment is necar or at the top of the list in proximity to true vaiuation and its tax burden is found to be adequate or excessive. Not Same “as Business Buildings. The Mapes committee, in opposing the inclusion of Federal business prop- erty in computing the tax burden of the District, declared that the Federal buildings would be virtually useless to eny one but the Government, having only a scrap value. The committee the Effi- for adjusting tax rates.” Such & method of figuring the ratlo of mssessed value to fair market value without the use of the per capita as- sessment, the Bureau of Efficiency con- tends, is futile, es it produces & resuit which represents merely the opinion of sheicomp | ot erected by any one engaged in busi- ness for its profit and cannot be con- sidered in the same class with struc- tures of ordinary business enterprises “One of the chief arguments made for increased Federal contributions to- ward the expenses of Colum 2] the District has suffe because of the exemption of Federal properties from In estimating the loss cf revenue, it has been the fashion to treat the Federal properties as if they were always on the assess: ment rolls of the District, This, the committee thin a mistake. The only possible loss cf revenue would be Cites Differences of Opinion. The Bureau of Efficiency in its fiscal relations report cited the wide differ- ences of opinfon resulting from the use of the ratio of assessed value to fair market value. and pointed out that comparisons of the burden of real prop- erty taxes in ditferent citfes cannot be made by using the tax rates alone. “Such comparisons are meaningless unless it can b> established that ti pases of assessed valuations are the same,” said the bureau's report. “Two clties may have the same tax rate, but the actual burden in one may be twice that in the other because of a higher basis for assessment, the tax rate of another, but the actual | burden may be the same b-cause of lower bases for assessments. Therefore, | attempts to compare Washington's tax rate of $17 per thousand on real prop- erty with Baltimore's tax rate of 824 13 or Minneapolis’ tax rate of $73.89, as is o frequently done, results in hopeless confusicn. ‘To make such comparl. sons mesn something, attempts have frequently been made n taxation studies to establish comparable adjust- ed tax rates for the various cities. The usual methed employed to adjust such rates is to0 apply the Tatio of assessed valuation to fair or market value to the actual tax rates; for example, in a city | where ihe actual tax rate fs $25 per thousand and the assessed valuation of | property is 50 per cent of its fair value | on the average, the adjusted tax rate | would be shown as $12.50 per thousand: | in @ city where the actual tax rate is $20 per thousand and the nssessed valu- ation of property is 80 per cent of its fair value on the averags, the adjusted | tax rate would be shown as $16 per | thousand. Authorities at Variance. “As to what this ratio is in the three citles cited no two au‘horities agroe, | The Bureau of the Census in Table 23 of its report on “Financial Statistics of Cities for 1928” lists the reported bases of assessment in practice in terms of }wer cent of estimated true value as fol- lows: “Washington, 100 per cent; Balti- more, 90 per cent, and Minneapolis, 40 per cent. The Detroii Bureau of Mu- nicipal Research in its 1928 report on comparative tax rates of 235 cities, which is published annually and has at various times been printed in the House hearing on the District appropri- ation bill and in the Congressional Record, gives the {ollowing ratios of as- sessment to market values: Washing- ton. 89 par cent; Brltimore, 80 per cent, | and Minneapolis, 34 per cent. In a memorandum on the District of . Co- lumbia tax rate prepar:a early in 1930 by the assessor of the Di.lrict, he offers stll a third set of ratios as follows: Washington, 90 per cent; Baltimore, 65 per cent, and Minneapolis 30 per cent. “These widely varying results ob- tained by the use of ‘the same method indicate rather conclusively that the method # unsatisfactory. The Bureau of the Census states that its reports showing the ratio of assessed to true value are based upon estimates obtained from city officials, and that the figures are only approximately correct. The Detroit Bureau of Municipal Ilesearch frankly admits that ‘until cities give more aitention to the problem of de- termining the ratio of assessed to true value, exact information relative to the tax burden will remain a mystery. " Depended on Opinions. | What the Mapes Committee did in gathering its data was to depend on the opinion of prominent real estate and in- | surance men, municipal directors of | finance and controllers, together with Teports of various tax commissions and special information to arrive at the true value of property and other statistical information used in its report, showing Home made 11010 E St. N.W. formation from personal visits to and | investigation of the official records in | the 14 cities used in the comparative | | studies, taking the assessed value as| and adjusting these values by the per | nsideration the large | when the | valuation per capita, Federal property | <hould be, | also declared that these buildings were | the revenue derived from the taxation | ““Conversely, one city may have twice | of the land and improvements thereon | Give Fanrie May’, made Candies this Christmas. Gifts cost so little and give so much enjoyment to every one! LI ree D. C. TAX INCREASE Dahlgren Terrace Citizens Mapes Report. Resolutions unanimously condemning | the entire Mapes Committee Teport re- garding increased taxation for the Dis- |trict of Columbia were adopted last night by the Dahlgren Terrace Citizens | Assoctation. M. W. Pickering introduced the reso- lution, while A 'F. Scheer introduced | everal resolutions recommending sub- siitutions for it. The association con- sidered the r2port point by point, Urge $2,000 Low Limit, | The Dehigren Terrace group in op- posing the Mapes income tax provisions 1ecommended inst-ad that the income | tax law provide for taxation to start on | incomes for single persons at $2,00), for single persons with dependants at $3,500 and for married persons at the same figure. A $500 exemption would be al- xolwed for each minor child under this plan. The proposed estate tax was opposed. | The association also joined Wik eee eral other civic organizations in oppos- ing the propossd erection of a reserve £as tank in the northeast. William McK. Clayton, chairman of the Public Utlities Committee of th» Federation of Citizens Associations, was recommended by the group to fill the vacancy creeted on the Public Uti'iti»s Ccmmission by the resignation of Har- leigh H. Hartman. Meet in Noyes School. The meeting was held in the Crosby S. Noyes School, Tenth and Franklin streets northeast. Willlam J. Weber, president of the association, presided over the group. YULE PLANS MADE Travelers' Aid Society to Sponsor Carols at Union Station, Plans for the annual Christmas eve celebration of the Travelers' Aid Society | at the Union Station were outlined by | Mrs. Grahame H. Powell, chairman of | the Committee on Arrangements. at a | meeting yesterday of the board of the | foclety. Arthur C. Moses, chairman, = presided Mrs. Powell stated that arrangements | have been made for the singing of Christmas carols from 8 to 9 o'clock by a mixed chorus composed of mem- bers of the various glee clubs of the Young Men's and Young Women's Christian Associations. Tne Railroad Y. M. C. A. is furnishing the piano and accompanist Officials of the society explained that | there are a large number of persons traveling on Christmas eve who wou be withcut any touch of Christmas ex- cept for the celsbration at the Union , Staticn. There will be a brilliantly lighted tree. 4 AFFIRMATIVE WINS Mixed Team Favoring State Social- ism Gets Debate Honors. By en audience decision the affirma- tive “spiit-tcam” of cebaters, including one man from American University and one from Penn State College, won vic- | tory over the negitive team composed also of one man frem each school, at a contest last night at Hurst Hall on the American University campus, The question was “Resolved. That St'te Socialism Should Be Substituted for the Present Capitalistic Syst-m " Fail Masincup of American U. and Cherles A. Myers of Penn State had | the affirmative. winning. and W. Yule Fisher of American U. and Milton R.| Baldinger of Penn Stet> had the nega- tive Dr. Harold Golder, professor of | English at American U., presided. First Lady Accepts Honor. LOS ANGELES, December 17 () — Mrs. Herbert Hoover accepted yesterday the position of honorary general chair- man of official hostesses of the Tenth Olymplc Games. The position, ten- dered by Mrs. Arthur Wright, local chairman, was accepted by Mrs. Hoover with “regrets that distance does not| permit more active participation in the work of the group.” — e immediately preceding the acquisition of the properties by the Federal Govern- | ment. In other words, the amount of taxes paid by the private owners of property at the time the Federal Gov- ernment acquired it.” s wonderful Home- Few Bondisar 60c Lh. o e $1 .00 Made fresh today .nnd every day by our own Fannie May Girls here in ‘Washington Candy Mailed Everywhere—Insured Free Fannie May Cafidy Shops 1406 N. Y. Ave. N.W. 3305 14th St. N\W. 1704 Pa, 1354 F St. N.W, Ave. N.W. O GROUP IS | GIFTS any man will be proud to receive, because they’re from W ashington’s Finest Men’s Store BROCADED ROBES $985 IX gorgeous color combin tions to select from. Satin cuffs and sash, , silk- A SILK LINING enriches the radiant effect. In wine, blue, tan and green. All sizes. Brocade Silk ROBES $1485 ILK, with silk faille trim- mings. Contrasting silk lin- ings. Double-breasted models, hand-tailored to insure fit and wearing qualities. Wine, navy, black and green. FLANNEL ROBES $585 GL'AR,u EED good qual- ity all-wool flannel. In plain shades of navs. wine and tan. Single-breasted models; with wide sashes. All sizes. Super Broadcloth Pajamas INE-COUNT and high lustre Broad- cloths. Plain and jac- 5 quarded effects. Con- CP vertible collars. Lustrous sateen facings. In beauti- ful contrasting color ef- fects, with inlaid pipings. Ocean pearl buttons. Spe- Other Gift Pajamas, $1.55 to $9.00 cial value. $2 and $2.50 Neckwear RENCH and Sw silks included. Hand- made Resilient construc- $ 35 tion. These ties were made for us by the makers of our regular Other Gift Ties, 95¢ to $4 fine $2 and $2.50 qualities. Special! Initial Men’s All-Pure-Linen HANDKERCHIEFS "THESE are luxuri e rious pure 3 FOR linen, never before priced 80 modestly to our knowledge. ACCOUNT % One of our regular manufac- turers let us have them at a very special concession, and the saving is passed on to you. Pian % OPEN A CHARGE or Use Our Deferred Payment RALEIGH HABERDASHER 1310 F Street