7-0
HARRISON DISCUSSES TAXES
THE OMAHA SUNDAY BEE- MAY 10, 1914.
!
?raotical and Theoretical Phases of
Important Subject.
1 ANALYZES CONDITIONS HEBE
The Fnnctton nnd History of Taxa
tion Are Carcfttllr Hevlptred nnd
Cannrm Compared with 15f
fecta of lccclftlntton.
nr ciiAnujs v, HAitrusoN.
Of the Harrison & Morton Co.
I win take up the question of taxation
in two ways, one of which Is highly
theoretical and the other practical. It
nnyono Is Interested only In the theoreti
cal side of taxation, he need not read the
other part, nnd if only Interested in the
practical side, ho need not read tha
theoretical part. Of course, In case he is
Interested In neither, he may bo relieved
from reading any of tho article. From
tho theoretical side, I cannot make as a
sort of a text anything more ideal than
that of the motto put at the front page of
CHenry George's book, entitled "Progress
and Poverty," which Is as follows: "To
these who, seeing tho vlco and misery
that spring from unequal distribution of
wealth and privilege, feci the possibility
of a higher social state, and would strive
for Its attainment."
Importance of Subject.
Taxation Ideally considered has to do
with the entire social fabric. It 1b a
surrendering to the state certain con
tributions In return for benefits received.
It was at first thought that the state
could be regarded aa a corporation in
which tho Individual' Interest was de
termined by the value of his property.
This Is the theory upon which the revenue
systems of tho states of tho United States
aro based In their constitutions and
crganto laws. The flat rato property tax
system, while still probably the main
source of public revenue in the states
of the United States, has now proven
anything but satisfactory In some of its
features. This is due to two causes. One
that the theory is wrong, and the other
is that it la impossible to carry out the
theory even If it were right. The whole
question of taxation could be summed up
In one worfl, proportion. What proportion
ejiould the individual contribute of his
jfneana for governmental support? Is that
(proportion to be measured by the value
b his tangible property or ore there other
means of measuring the amount he should
pay? Under tho single tax theory the
wholo matter is solved, not by taxing
. more property, but by taxing less prop
erty, and not attempting to tax personal
property, either tangible or intangible.
The best tax experts are not prepared to
accept the single tax In theory, and even
i it accepted in theory it would have to be
f demonstrated to be a success before it
' could be safely relied upon for public
revenue.-
The Single Tux.
Mr. Sellgman, In hl& essays on taxation,
while paying a very high tribute to the
value of tho. agitation of the single tax
because "In some countries it has served
to direct attention to tho aDuses of the
mediaeval land system, and In the United
States has helped to disclose the short
comings of tho antiquated general prop
erty tax, and everyone has done yeoman's
servlco In emphasizing tho question un
just privilege." Despite the high en
comium which Mr. Sellgman gives to tho
agitation, of the-slngle tax, he is unable to
accept Its demands and has objected to it
as being defective An four particulars:
fiscally, politically, morally and econ
omically. He says, first, "It would be
inelastic and would Intensify the Ine
qualities resulting from unjust assess
ments." Secondly, "Although it is pro
posed chiefly from social considerations,
It would prevent tho government from
utilizing the taxing power for other social
purposes and would divorce the interests
of the poople from those of the govern
ment" Thirdly, "It would offend against
the canons of universality and equality
of taxation, and would seriously exag
Kerate tho differences between profits
.jfrom land and profits from other sources,
land finally, that it would be entirely in-
Ab, adequate In tho poor communities, and
i"' . , . II.. .. t,..jn..,.
ence on farmers, and even In the large
urban centers It would exempt large sec
tions of tha population without bringing
any substantial relief to the poorer
classes." It Is not the purpose of this
paper to go Into theoretical discussion
of tho single tax, although any paper
upon taxation that did not mention It
would bo at fault. If tho condition of
society, which It Is contended would bo
brought about by the adoption of the
single tax, would bo effected, no one
having the good of society at heart, re
gardless of his personal interest, would
for a moment oppose It; but the matter
Is at best an experiment and not a tried
out plan. The theory of it Is so revolu
tionary that it Is quite likely that It will
be very reluctantly adopted, even as an
experiment, by any large community.
The theoretical trend of taxation Is
sway from property and towards what the
writers call faculty or ability to pay.
Prom the Constitution.
In the early history of the United
States and at the time of the adoption
of the constitution, undoubtcdlyl llmlta.
lions put upon the taxing power grew
out of a protest against arbitrary tax
ation which has prevailed In the coun
tries of the old world, and against which
the new world was more or less In re
volt The taxing clauses In the na
tional constitution, and In the state con
stitutions as well, all emphasize the
ghta of tho individual rather than the
co-operative power and rights of the
tate as a whole. Tho purpose of or
gs nlc law seemed to be to protect the
Individual from Imposition on the part
of the government rather than exercis
ing the coercive power upon the Indi
vidual, compelling him to support the
tovernment. It was not until the adop
tion of the sixteenth amendment to the
constitution that a chango In the pro
tram of taxation was made In tho na
tional government. Under It an Income
tax law was passed, the study of which
will show that there has been more or
lets of a revolution from the old ideas
upon which the constitution was based
The revenue plan provides not only ,for
,t tax on incomes, but provides that this
lax may be graduated: that is to say,
lhat a higher rate may be extracted as
the income is greater. This Is a rec
ognition of an almost revolutionary prln
Clple In taxation. It Is true that In
tome countries like New Zealand- and
Australia the graduation of taxes has
been In voguo for many years; that Is
to say. In those countries the general
property tax Is a graduated tax; that is,
xaetlng a different rate of taxation ac-
:ordlng to the amount and value of the
, prontry. This la a revoluionary prin
ciple, and yet toward the adoption of
i which, to some degree, at least, all civ
SUed countries are tending. The use o't
O - Harvest Time dix 2Ve22'as2xa S
. "In the Heart of America."
4M
THIS is April 24th in Nobraska.
Wo' entered it this morning by
crossing tho Missouri at Plntts
mouth. Wo camo through tho
' valleys and beside tho rolling
uplands to Lincoln. What in
calculable riches this soil holds for man
kind. Rich, brown, warm, the groat soft
blanket of mellow loam covers over many
a square league. 1 left Ohio in tho cold
and wet. Here the alfalfa stands luxuri
ant, six inches tall. It is strong, thick of
stem and big of leaf. On hillside and in
valley the wheat looks good. Here and
there one sees Kentucky blue grass richer
and ranker by far than one sees in Ken
tucky. Great sweeps of earth are plowed
and ready for corn. To one giving his life
mainly to study of soil-building in lands
less favored than this, Nebraska is a do
light. Here, more than almost anywhere
else in the world, nature has assembled her
choicest riches, requiring tho minimum of
labor, to produce a crop. The climate is
full of sunshine and warmth, yet cold
enough to develop rugged types of men,
Here, surely, must grow up an agriculture,
a type of living and a citizenship of the
best that the world can show. The aston
ishment is strong with mo to find here
more warmth and more advancement in
growth than in regions farther south in
the cast. High trees are in full bloom.
All the little flowers of tho lawn aro in
brilliant array.
I have just come from a stroll over the
experiment station grounds. Tho plots
and head-rows of winter wheats in tests
aro beautiful. The alfalfa is glorious.
Dean Burnett tells mo that here is land
that does not respond to phosphorous; it
has enough of it, and of potassium, too.
Nor does it need lime. It needs only an
occasional manuring and rotation with al
falfa to make it more fertile than almost
any other land. It is a bit disconcerting
to find land that needs nothing done to it.
How curious is tho unrest of mankind. I
had hardly been an hour in Lincoln when
a letter from a man who wishes to sell out
his Nebraska farm and try his luck at soil
building in a poor state in tho south was
handed me. 1 suppose the drouth of last
season disturbs his mind, but wore I a
farmer in oastcrn or central Nobraska I
would take tho occasional drouths and
make tho best of them. I would never go
to a poor soil and try to build it to equal
Nebraska's soils. I know soils that one
could expend $1,000 an. acre on and yet
thoy would be markedly inferior to Ne
braska's. Joseph E. Wing in the Breed
ers' Gazette.
T rWr - M r yj nai MUM TMilH lir
I ..tMMftrWH CVlW SB 1M BBB I assMSHT WSSBSSSSir SJSJBSSHiliHSsSSSSl WKHIi tVUUaTlsnKNPl'i L BZH tVr "aottV X .K ' . . j ' A '
l fey v
tho taxing power for the lovellng up of
conditions of society Is a modem prin
ciple. It may be proper' to say that a
senator from Nebraska has suggested
that tho control of corporations and
trusts bo worked out through a system
of taxation. Undoubtedly society has a
right to use the taxing power for any
general beneficial purpose, which does
not Involve Improper deprivation at In
dividual rights.
Theory In Cnnadn,
So far I havo referred to tho theoretical
conditions of taxation as are' In process
of being worked out -In the United States,
but the condition in Canada, I under
stand, is very similar. Indeed, under the
moro elastic government of Canada, elas
tic in the sense that Canada has no bind
ing 'written constitution, such as the
United States, new schemes of taxation
are moro. easily adopted. Even the radical
single tax' has been- adopted In some of
the municipalities and provinces of Can
ada, In any theoretical discussion of
taxation It should' be borne In mind con
stantly that no scheme will over bo per
fect or permanent, but that there will
always be needed changes to keep pace
with new conditions. The Income tax,
which seems to be so well adapted to tho
present condition of society, may prove
to be Inadequate in the future, as society
changes under economlo conditions. It
should always bo borne In mind that
schemes of government and taxation are
simply means to an end, the real purpose
of both being the happiness and well
being of the individual. The moro per
fect union which the constitution of tho
United States inaugurated by its adop
tion as a program of government was to
promote the things enumerated In the
"Declaration of Independence," namely,
equality of all men and the Inallenablo
right to life, liberty and happiness.
Practical Suggestions.
Referring now to a few pactlcal sug
gestions concerning taxaUon, probably I
cannot do better than BUggest the prac
tical operation of the revenue law of the
state of Nebraska. Under the constitu
tion adopted In 1875 the state of Nebraska
collects revenue upon all property at a
fixed rate, according to value. The act
ual wording of the provision Is as fol
lows: "The legislature shall provide such
revenue as may be needful by levying a
tax by valuation so that every person
and corporation shall pay according
to the value of his, her or Its
property or franchise." At the last
session of the legislature- the state
appointed a tax commission to consider
a reformation of the revonue system of
that state, and this commission Is now
collecting data and considering all the
modern phases of taxation. The trouble.
In making any change In the revenue
system of a larg and going concern like
a state or province Is that no experi
ments can be made which Involve tho
possibility of too great a deficit in cur
rent revenue needed. A general over
hauling of the revenue system is some
times attempted and made, but great
care Is needed to keep an equilibrium of
the revenue; that is, providing sufficient
funds for 'the conduct of the business of
the state. The Nebraska legislature meets
every two years, and, like other modern
utates, It has had a progressive Increase,
while not as much as in some states and
municipalities, has probably ben more
than equal to the Increase of the general
wealth of the state. !
Conditions In Omaha.
At the risk of disloyalty to my own
stat'o In criticising tho un6qual conditions
which arise under the administration of
tho Nebraska rovenue law, but feeling
sure that this will be forgiven when the
satne condition Is generally found else
where, the following actual examination
made in the city of Omaha, In the Inter
est of enlightenment, may bo made:
Tho names of forty-six individual citi
zens were taken from the tax rolls and
court records and an Investigation made
of the assessment of each ono of these
citizens In tho year In which ho died, and
the amount of the estate as shown by the
court records was taken and compared
with the actual assessment of his per
conal' property. The resume of the data
will have Interest to tax students, not be
cause of Its unusual ness, but because the
actual figures are taken from the rec
ords. Of tho forty-seven persons twenty
four persons were not assessed at all.
The personal property of these twenty
four the probate records dlscloso to be
the value of $23,607.27. The records
thowed that the twenty-three persons
who were assessed for I3M.920 had per
sonal property amounting to $4,810,051.51.
Tho relation of tho personal property as
sessed to Its value was TA per cent No
doubt tho same condition exists all over
tho United States, especially In large
cities, Tho detail records show that tho
personal property tax Is escaped not only
by tho rich, but by all classes. The
trend of taxation In Nebraska may be
shown by a provision passed by the leg
islature at its last session relating to
taxation which Is to be voted upon In
November, 1914, and Is as follows:
"The rules of taxation shall be uniform
as to any given class and taxes shall be
levied upon such property as the legis
lature shall prescribe. Taxes may also
be imposed on Incomes, -privileges and
occupations, which taxes may be grad
uated and progressive, and reasonable
exemptions may bo provided, in addition
to those hereinafter specifically men
tioned In section 2 of this article." This
provision embodies many of the modern
Ideas which are advocated by tax experts
as well as those who have experience In
the practical administration of revenue
affairs.
ARTIST TO BEAUTIFY
APARTMENT GROUNDS
Ed Johnston, builder and owner of "The
Knickerbocker" apartment house at Thirty-eighth
and Jones streets, has secured
the services of the noted J3. Terrell Hoyt,
landscape architect to superintend and
plan the grounds of "The Knickerbocker."
Mr. Johnston Intends to make this ground
one of the most beautiful apartment
house lawns in tha central west. Mr.
Hoyt has Just finished beautifying the
grounds of the John I Kennedy and
George Brandels homes In "Falracres."
MISS PORTER SELLS HER
PROPERTY ON 27TH STREET
Wilson & Warren, Bee building, have
purchased the Louise A. Torter property,
between Harney and Dewey avenue east
of Twenty-seventh avenue, for a consid
eration of fie.000. Tho ground is 1(8x200
feet and several apartments will be built
upon It in the near future. Harrison
Morton handled the deal for Miss Porter.
APARTMENT INVESTMENT
George T- Porter Writes of the Way
They Are Made to Pay.
LOCATION IS ALSO FACTOR
Prospective llulldrr Should Seek the
Aid of Those Who Know How to
Go About the Building of
Apartments.
By GUOltGH T. I'OHTHIl.
Secretary Payne Sc Slater Company.
Heated apartments In the estimation of
the writer Is one of the best Investments
there is In real estate, owing to the fact
that a large number of tenants can be
housed in a small space; yet there are
many people In Omaha and other cities
who own apartment houses who have
never realized a fair return on tho money
Invested.
When ono decides to Invest in npart
ments, he should get in touch with the
test Informed rental man he knows and
decide with him what cluss of apart
ments he Is going to build. This Is
where many owners havo made their
first mlstako, as they have, with tho
asslstanco of an architect, planned apart
ments that they themselves would like
to live In, or havo put up buildings on
account of their being cheap to con
struct and expect to get a large return
on the money Invested, never giving
the most important question a thought
what class of tenants would care to oc
cupy the apartments and how much rent
can they pay. It Is only the man who
Is la constant touch with the renting
people who can advise the prospective
builder, with any accuracy, what kind
of a home a given class would care to
llvo In.
Next, after deciding what kind of a
building one Is going to put up, ho
should choose a suitable location for
such a building. Here again, a man who
has made a specialty of the rental
business can be of great value, as he
Is the man who knows what the People
want and what they object to. The suc
cess of most any building depends on
its location, and thUi Is especially true
of apartments. In choosing .an apart
ment site, one must be thoroughly fa
miliar with Its every advantage and dis
advantage for the particular class of
tenants he Intends to rent to.
Hrelc Competent Architect.
Having decided on what kind of an
apartment house one Is going to build
and carefully selected the site, it Is tlrno
to see a competent architect, nnd owner,
arohltect and rental man should then
work out the details of the plan of tho
apartment. The most Important thing to
vemembcr in planning an apartment house
Is that it Is folly to try to cheat tho
tenant out of light and air. Have fewer
apartments and more light and air, as
the building in which people are sup
posed to live Is doomed If It Is poorly
lighted and badly ventilated.
Next, the size and arrangement of the
rooms are most Important. The writer
knows of apartments that have beauti
ful, large and well lighted rooms, which
are well ventilated, that are renting far
below what the actual floor spaco is
worth, simply because thoy are not ar
ranged properly Tor tho class of tenants
that are going to occupy them.
KurnlftktuiiN of Building,
Tho floor plan being decided upon, the
next Important questions that confront
the builder nro tho finishing nnd equip
ment of the building. These questions the
rental man and architect should be able
to answer for him, as the rental man
knows what tho people want and aro
willing to pay and tho archttoct can
adv!so the owner as to tho cost and
tho practicability of the finish and equip.
mcnt
Apartments In Omaha rent woll and
will continuo to bo In great demand, as
tho people nro educated to the many
advantages In living In them. The peo
ple are beginning to realize that they
can live moro economically In nn apart
ment than they can In cither a St Louis
flat or a detached houso and have a
great many moro accommodations. While
small cottages that aro woll located
aro in great demand and always will bo,
thu St Louis flat is losing Its prestige.
on account of having all the disadvan
tages of apartments and none of Its ad
vantages, nor having tho advantages of
a detached dwelling.
It is a well known fact that tenants
are fast learning that they can actually
reduce the cost of living by moving
out of cottages and St touts flats, rent
ing from S2G to 135, Into apartments rent
ing from $40 to JW.
Visiting Realty
Men to fiive Talks
on the Home Towns
At a meeting hold by the committee in
chargo of the annual banquet of tho Uni
versity club yesterday noon It was de
cided that in as much as tho visiting
members of the executive committee of
tho National Association of Iteul Estate
Men will come from nil parts of tho
United States, ond as they aro perhaps
tho most efficient men In the real es
tate business, in place of having a set
program at tho banquet to be held Mon
day night, to have each and all of the
visitors mako a short talk on their dif
ferent cities and give their methods of
doing business. This will glvo the local
members tho benefit of tho experience of
the twenty or twenty-five members who
will be present
It Is tho first time that the local ex
change has had this opportunity. This
exchange of Ideas is one of the objects
Which real estate men have developed
through organization. It Is given as one
of the reasons why Investors should do
business with the members of the Omaha
Ileal Estnto exchange, who are not only
farilllar with local real estate conditions,
but through Its affiliation with the na
tional association ere In touch with all
sections of the United Statos and Canada.
The watchword of the modern real es
tate man Is "service" and he Is contin
ually getting ideas that enable him to
give better service.
Making llrr Selection.
Fashionable patient; "What do you
call mv ailment, doctor?"
The doctor: "I haven't quite decided
Let me see. Suppose I glvo you our lat
est list of dlsooses and let you mako a
choice? You will find some of them a
little more mellifluous than others."
Th patient ecstatically "Wouldn't
that ha ll"f!Uvdaul Plain TWaUn.
A DUNDEE HOME
'"Tlioro is a satisfaction and a pleasure in offering a home
to tho public when you know that it is, in its class, tho tast
iest, most substantial, and the best homo on tho market."
Tho Shades and Rods for this residence were furnished by
BEATON 6? LAIER CO.
415-17 South 16th St.
Lumber Furnished by
GEO. A. H0AGLAND & CO.
AVo furnished the mirrors nnd art glass.
Omaha Mirror & Art Glass Company
"We also carry a complete lino of paints, oils, varnishes
and painters' supplies.
Tile Work Furnished and Installed by
Omaha Marble & Tile Co.
Contractor for
Tile and Marble Work, Slato, Tile and Gravel Roofing
110-112 North 14th St. Phone Douglas 1689.
Foundation of Imported Granite Face Stono, Reinforced
Goncrote Porch Floor, Sidewalks and All
Masonry Work Done by
Omaha Concrete Stone Co.
28th Ave. and Sahler Phono Webster 886.
Sodding Done by
V. E. HOOVER
Landscapo Gardener, Sodding and Grading.
512 North 28th Ave. Phono Harney 4298.
EVERYTHING ELECTRICAL
Omaha Electrical Works
1214 Harney St.
Phono Doug. 1181.
W. L. SELBY
Twenty years from now the above homo with a coat of paint will be
the same home that It Is now. There are many features of modern home
building, but nnno so Important as proper construction, and In this homo
you have the best. Tho fact that tho advertisers In these columns ore
anxious for you to seo their snnrn of tho construction of the home Is one
of Its best recommendations. They aro all proud of their work nnd tho
owner is satisfied that they represent tho best In their respective lines.
Tho home nan an modern loatures sucn as:
Kull 8-foot coment basement
Ileamod ceilings,
tlvlnn: room ucross entire front.
Panel wall with plato rail In din
lng room.
Columned openings.
Oak finish downstairs.
White enamel upstairs.
Uutlt-ln seat
Built-in buffet
Kront ami rear stairs. 1
Tllo floor vestibule.
Clothes chute.
15 square foot sleeping porch, en
tered from hall.
And besldeH those an everlasting all concrete porch with reinforced floor
and granite baluster railing nothing to rot or paint nine art glass win
dows downstairs, majestic coal chute, 850 square fret floor spaco in base
ment, two linen closets, electric lights In closetB and others that you can
not appreciate until you see. Tho Interior decorating is the best to be had.
0 ItOOMS 5S,G50.O0 KI17 OtTMIITO BTBBST.
The home will be open this afternoon and all day Monday. If you are
Interested at all In homes of this type, drive out and nee this one. It Is a
model by which you can Judge other propositions and we urge that you
see all on the market before you make up your mind.
W. Xi. SELBY,
Phone Douglas 1510. 438 Board of Trade.
Yale Locks and Hardware furnished for this residence by
Jas. Morton & Son Co.
The Hardware People. 1511-13 Dodge St.
Tho plumbing in this residence was installed by
Clarence R. Dodds
Plumbing and Heating Contractor.
Phono H. 1824. 5007 Underwood Ave. Res. Phone H. 843.
C. J. BALSER
General Contractor
Phone Harney 5119
ADAMS & KELLY GO.
Millwork
Made in
OMAHA
The Factory
That Serves
You Right.
Yes, We Sold the
Warm Air
Heating Plant
for this beautiful homo. The Sheet
Metal work was also done by us,
Wo havo furnished thousands of
other heating plants for Omaha
homes. It's easier to sell a house
with ono of our Furnaces in and it's certainly more com
fortable to live in. "There's a reason."
Remember, wo do not stop at furnaces. Wo sell
MAJESTIC RANGES, ACORN GAS STOVES and
ALASKA REFRIGERATORS. Good stuff, eh?
John Hussie Hardware Co.
24W-9 Cuming St. 'If you buy it of Hussie it's right. ' '