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  calculated, ­
  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