126 
THE A B C OF TAXATION 
per cent of the assessed valuation of the buildings, to 
cover interest, insurance, repairs, and depreciation. 
Twenty-five specimen estates in Lawrence, Scituate, 
Clinton, and Whitman, Mass., show ratios, thus cal 
culated, as follows; 
25 estates . . average tax rate per thousand, $16.85 
f Land .... $197,828 
Assessed valuation j Buildings . . . 236,955 
I 
l Total .... $434,7 8 3 
Gross rental of properties actually received by the 
owners ....... $56,067 
Taxes (on $434,783, at $16.85 per thousand) • • 7,325 
Net rental after paying all taxes .... $48,742 
Less 10 per cent on buildings ($236,955) for interest, 
insurance, repairs, and depreciation . . . 23,695 
Net income from land alone (equalling 12J per 
cent on $197,828) ..... $25,047 
This income is 5 per cent return on an indicated net 
value of at least ...... $500,940 
Instead of on less than 40 per cent of that amount, 
or the amount at which the land is assessed . . $197,828 
Leaving out the City of Lawrence, the ratio for the 
three smaller communities of Scituate, Clinton, and 
Whitman averages only 30 per cent. 
The figures for the above twenty-five estates in detail 
are as follows: 
IN LAWRENCE, A COTTON MANUFACTURING CITY OF 
70,000 INHABITANTS 
Of seven estates the several assessed valuations were 
respectively 72, 67, 62, 48, 42, 38, and 15 per cent