The news in this publi
cation is released for the
press on receipt.
THE UNIVERSITY OF NORTH CAROLINA
NEWS
LETTER
Published Weekly by the
University of North Caro
lina for the University Ex
tension Division.
JU^Y 15, 1925
» CHAPEL HILL, N C.
THE UNIVERSITY OF NORTH CAROLINA PRESS
VOL. XI, NO. 35
Edito.ial Boar,!. E. C. Branson, S. H. Hobbs, Jr.. L. R. Wilson. E. W. KniKhc. D. D. Carroll. J. B. Bullitt, H. W. Odum.
Entered as second-class matter November U. 1914, at the Postoffiee at Chapel Hill. N. C.. under the act of Auttuat 24. 1912
PEOGMM FOR TAX STUDY CLUBS
Hi. TAX.^iBLE WEALTH
(It is saggosted that two people, A and
B, handle this section.)
, A. Outline
A-1. Locat Government and the Gen
eral Property Tax:
Thef'principal source ot revenue.
Is it a good tax?
2. The Ratio of Wealth'to Tax Rate:
Increase in taxables may mean
decrease in rate.
High valuations may^mean low
rates.
Low valuations may mean high
rates.
Are taxables increasing'as fast
as the cost of government?
3. Real Estate (rural):
Acres of land listed compared
with area of county.
Total value and'per acre value.
Valuations compared with those
of similar counties.
Cultivated land,;^ percent of to
tal. Value per acre.
Waste land, percent of total.
Value per^acre.
Pasturage, percent of total.
Value per acre.
Forest land, percent of total.
Value per acre.
Tax valuations compared with
mark^ prices.
The Constitution requires that
ali. property be listed its
. true value in money. Is that
the practice?
4. Real Estate (urban):
Number of town lots, 1913 and
iSfiio.
Has the increase.been normal?
Compare valuations with those
of other cities.
Compare valuations with sale
prices.
Wbat is the basis of assessing
vacant lots?
Are they all listed?
Is there a real estate map?
6. Personalty (tangible):
Amount of personalty exempt
ed from taxation.
Class of personalty exempted.
Compare tax abstracts with vis
ible property.
Percentage of personalty listed.
Percent of true value at which
it is listed.
Suggest changes in the law.
Suggest changes in method of
listing.
6. Personalty (intangible); Solvent
credits:
Bank deposits.
Motes and mortgages.
Stocks and bonds.
Solvent credits offset by indebt
edness.
Homestead indebtedness half
deducted. When?
Are solvent credits being listed
in your county? If not, why
not?
What is double taxation?
Suggest changes in the law rel
ative to intangible property.
B-1. Corporations:
Number corporations in county.
What can be done to
others?
Are corporations in collusion
with county officials?
Are corporations assessed at
true value?
2. Polls:'
Ratio of polls to population.
Ratio of polls to votes cast.
Compare these ratios with those
of other counties.
Should there be a poll tax?
Should it be higher?
Is farm land listed at 100 percent of
its market price? Are town lots?
What is a progressive land tax?
Should the taxing power be used to
encourage home and farm ownership?
How?
Should there be any tax-exempt se
curities?
' How are mortgagee and mortgager
taxed under the recent homestead act?
D. Sources of Information
Frank W. Taussig. Principles of Eco-
Macrnillan Company, New
York, 1915. Chapter 69 (The General
pp. 528-549.
(Any good textbook in Economics may
be substituted).
North Carolina Revenue and Machin
ery Act, 1925.
Consolidated Statutes of North Caro
lina. ^
County Tax Books.
Conferences with Tax-listers. Tax
Supervisor, and Register of Deeds.—
Paul W. Wager.
Church Property.
Cemeteries.
Charitable institutions
Public institutions. !
B. Explanation
The principal source of revenue for.
local governments is the general prop- ;
erty -fcax. This tax was devised i.5 the
days before industrial development and
when land was the chief form of wealth. ^
In the colonial period and in the early
days of statehood, almost everyone
held landed property, and his income
was roughly in proportion to his prop
erty. Professional men were few; and
they were usually owners of houses and
land, and were taxed on these. Mer
chants had visible stocks of goods, and
they also as a rule owned real estate in
addition. All were reached by the
property tax and in fair proportion to
their ability to pay. But as the com
munity ceases to be simple and homo
geneous, property and income no longer
run side by side. Many people with
large incom:^s own little property.'-Tn-
comes of lawyers, physicians, and other
professional men, of salaried officials,
of prosperous mechanics, of property-
less laborers, and so on, are not sourced
in property. Even the income of a
businessman has but a Iqose-relation
to his property holdings. Strictly speak
ing, of course, there is no such thing
as a tax on, property. The tax comes
not out of the property, but out 'of the
incomes of property owners. There
fore, when property holdings cease to
bear any direct relation to'.income, the
property tax should be supplemented
by other forms of taxation, and so,it
has for state purposes.
There are other aspects of the gen
eral property tax which are discrimina
ting. Not all property gets entered on
the tax books. Land and buildings,
machinery, farm animals, and the more
bulky forms of property cannot be con
cealed, but there are many forms of
intangible property which can be con
cealed. Very much depends on the
honesty of the owner. Stocks, bonds,
mortgages, and all other evidences of
wealth are income-producing property.
They may yield a larger, and more cer
tain income than land and houses, yet
the larger part of such property is not
listed for taxation. Evasion is the rule,
not the exception.
The general property tax in its appli
cation to intangible property is hap
hazard, ineffective, productive of small
revenues, and demoralizing alike to
taxpayers and tax officials. Yet, to ex
cuse, or reduce the rate on intangible
property would be an unfair discrimina
tion against real estate and would dis
courage home and farm ownership.
So long as a county is largely agri
cultural a general property tax serves
very well, but as a county becomes in
, dustrialized,
i local government should be devised.
I But until there is a complete over-
I hauling of our tax system there is only
i one possible course to follow—that is, to
endeavor to get all taxable property on
{the books, and at a uniformly high val-
i nation. Just as an increasing tax rate
n. WATER POWER
There are four sources of electric
power which may be made available
for service in rural districts. These are
(1) power generated locally by falling
water, (2) power generated locally by
steam, (3) power generated locally by
internal combustion engines, and (4)
power generated at a distance by a
large power company, transmitted to
the rural district, and purchased from
the company by rural consumers. No
one of these sources is best for all lo
calities.
In determining what source of elec
tricity shall be used, cost of power and
reliability of service are the chief fac
tors to be considered. The advantages
and disadvantages of the four sources
of power will be considered in this series
of articles largely from these two stand
points. This and the succeeding article
deal with local water power.
In generating power by falling water
the two principal elements to be con-
THE DOCTOR OF THE FUTURE
A Health Counsellor
The medical schools of many coun
tries, especially, perhaps, those of _
North America, Great Britain, and to j sidered are (1) amount of water avail
a less degree of Western Continental i and (2) the distance through which
Europe, are facing several problems of the water can be made to fall. The
curriculum, of teaching methods, of i power which can be produced by falling
purpose and of aim. An 'American com-1 water may be estimated by multiplying
mitted' has been formed to examine the | the number of cubic feet of water flow-
course of study in the United States j jpg each second by the number of feet
and to recommend changes. This com-. the water can be made to fall and di-
mitLee will be expected to find answers ! viding the product by eleven. The re-
to such questions as these: What kind j suit is the horsepower that can be de-
or kinds of doctors ought the medical | veloped assuming eighty percent effi-
school to turn out in response to the ciency of the plant. This may be ex
needs and demands of the public? What pressed as a simple formula thus:
should graduates know and be able to j g h
do? How best can they be hdiped to j 82
master this knowledge and skill? How : Where Q No. of cubic feet of water
can they be given the right attitude; flowing each second,
toward their work? ; G . No. of gallons of water flow-
Probably three-quarters of ali doctors i ing each second,
today are general practitioners, that is, ! h No. of feet through which
physicians whose aim it is to recognize : water can be made to fall,
diseases, to deal with all the more com-; Thus if it is found that there are 100
mon maladies by advice and treatment, • cubic feet of water per second flowing
and to know when to refer patients to ; in a stream (equivalent to 746 gallons
specialists. This' general practitioner , per second) and the water can be made
is at present facing many difficulties, to fall 22 feet, then there can be pro
purposes, and pumping units can be
operated on extremeli"^ small streams,'
which flow as little as 10 gallnhs per
minute. It should be emphasized that
steel overshot wheels are greatly to be
preferred to wooden wheels. The wood
en wheels have many disadvantages
and in the long run are more expensive
to operate than the steel wheels.
In the next article the water turbine
and impulse wheel will be discussed,
together with some elements to be con
sidered in choosing the proper type and
size of installation.—Thorndike Saville.
‘duced
100 X 22
200 horsepower. Sim-
The specialist tends to monopolize pres
tige and to receive relatively much' li
larger fees. Laboratory and ,hos»pitaI pie methods for measuring the amount
facilities which the modern doctor ought of water flowing and the fall are de-
to have are expensive and often inac- scribed in detail in Farmers’ Bulletin
cessible. Sanitation and preventive No. 1430, entitled Power for the Farm
medicine are restricting and even elimi-; from Small Streams, which can be ob-
nating diseases like typhoid and mala- tained free by writing to U. S. Depart-
ria, which once afforded a good deal of ment of Agriculture, Washington, D. C.
practice. Free and pay clinics, school It, can be seen from the formula
and industrial medical services, health : given that if we have a high fall we
insurance (under government auspices ' don’t need as much water to develop a
in Germany and England), hospital' given amount of power as if the fall is
associations and all efforts to spread low. Conversely, if we have plenty of
costs of sickness over large population ^ water, we won’t need to have so high
groups,, and other forms of social medi-' a fall. ;•
cine tend to encroach upon what was
attract taxables from the books, a de-.
creasing tax rate attracts taxables. A
relatively low tax rate not only makes
it easier to get intangible property list
ed, but it attracts outside capital into
the county. Abundance of taxable
wealth and efficient government are the
only means by which to secure a reason
able tax rate.
C. Questions for Thought
What efforts are being made to in
crease the taxable wealth of your
Should it be required of women? county?
Married? Single?
DogvS:
How much does dog tax yield?
Are the dogs all listed for tax
ation?
Are the dog taxes all collected^
What is the penalty for failure
to pay dog tax?
I Could the idle land be put to any
profitable use?
Is your county increasing or decreas
ing in population? Why?
Does diversified agriculture increase
taxables?
What is the relation of tenancy to
i taxable wealth?
To what fund are the dog taxes [ Is your tenancy ratio increasing or
applied? ' j decreasing?'
Compare number of dogs in i What should be the basis of taxing
county with number of sheep;; timber land?
oows. I What steps ar^ being taken toward
Compare dog values with those I reforestation?
PLANNING THE VILLAGE
In the United States nearly 20,000,000
people, or about one-fifth of the popula
tion, live in villages. These tens of thous
ands of villages are also the service sta
tions of more than 30,000,000 farming
people, for purposes of business, educa
tion. religion, health, a-id social well
being. Thus the lives of almost half of
our population are intimately affected
by village conditions. These people
classed as “rural” by the census, pro
duce practically all of our food supply,
send leaders into nearly all walks of
life, and are the chief conservators of
our national ideals.
The approaches, arrangement, sani
tation, and attractiveness of these vil
lages, upon which a sound and healthy
economic and social country life de
pends, are of vital importance to the
half of our population living in the vil
lages or using them throughout a life
time. Villages should be easy of access;
approaches should de direct, durable,
and enjoyable. Physical layouts should
be based on naturalness, healthfulness,
and convenience; housing conditions
should be sanitary, convenient, and
economical; dwellings should be satis
factory to the eye and set in pleasant
surroundings. There should be clean
and well-kept lawns, tree-b(»rdered
streets, and good architecture. Dump
heaps and congested places should give
way to open spaces; and public parks
and playgrounds, lake shores, spots of
natural beauty, and points of historic
interest should be set aside for the use
and enjoyment of all. Public buildings
should be so located and arranged as to
facilitate business efficiency and stimu
late civic priile.
All villages can not have all these
improvements at once,- but they can
overcome self-satisfaction and’plan spe
cifically for the betterment of condi
tions. The sooner these charges are
planned, the more easily they will be
realized year by year, even though only
one improvement at a time can be made.
The plan can be drawn before the vil
lage is started, taking into account ex
isting natural conditions and allowing '
for necessary changes in the future. If
the plan is flexible and the goal is always
kept in view, the village may easily di
rect its growth and development, thus
avoiding the necessity ofjmaking itself
over later under great difficulties and
at great expense.
The day of isolationihas passed. No
longer can villages afford to be ugly
and unknown. Modern;? methods of
transportation and communication have
opened up the hidden,;;places. Millions
of tourists travei;thousands of miles an
nually over improved|highways. Euro
pean villages have long realized the eco
nomic value of the tourist traffic and
have prepared to take ?advantage of it.
They have found that beauty pays, and
discovered the inefficiency^of the com
monplace and the efficacy'of individual
ity and physical distirtction in towns as
well as in people. ^
Village planning, whether original or
continuous, is not merely a theoretical
idea. It is the foresighted application
I of ordinary business methods in the
remediable physical and mental defects | making of public and private improve-
He will survive only if he can win 1 which are so common. This will mean! ments, so that physical development
lu- , , . , 2, , There are three kinds of machinery
supplementary taxes for I “"‘'illations which we may use in de-
There are people who as-, veloping small water powers. The steel
sert that this type of physician is overshot water wheel is the simplest,
doomed; that he will disappear because Xhese-wheels are very efficient and sat-
he cannot compete with the specialist jgfactory for small installations up to'
on the one hand and with preventive about 60 horsepower. The steel over-
and social medicine on the other. ; water wheel is cheap and easy to
Such an outcome is to be viewed with i operate. I-fe has a wide usefulness in
concern. The well-trained, properly • developing water power when the quan-
equipped, experienced general practi-1 tity of water availaWfe is from 1 to 30
tioner of ability, character, and person- i cubic feet per second, andiwhen the fall
'alityis a fundamentally valuable per- available is not greater than 25 feet. It
son. vHe is a good diagnostician. He j is to be preferred to the more compli-
sees his patient as a whole. He knows cated and costly turbines for the con-
his peculiarities and circumstances. He i ditions just mentioned, and will satis-
can decide when to refer him to a spe-' factoriiy operate farm /power plants,
cialist and when to protect him against' small mills, etc., where the power re*
the very real danger which is threat-1 quirements do not ^exceed from 6 to 60
ened by a narrowly specialist point of; horsepower. Waterwheels of^the type
view. He cheers and encourages, warns ■ described are made by the Fity Water
and commands- He is not only a phy- Wheel Company of Hanover, Pennsyl-
sician but a friend and counsellor. The ■ vania, and by the Rodney,Hunt Machine
disappearance of the general practitioner ; Company, Orange, Massachusetts,
would be a serious loss. The stimulating ; overshot wheel is particular-
philosophy of individualism,with its im i ,y pulping water for farm
sistence upon independence, initiative, ;
ambitidh seems to be embodied in '
and
the general practitioner.
in other counties.
Exemptions from Taxation:
United States bonds.
North Carolina State bonds.
Select some plot of land held out of | important of all, he must become
use for speculative purposes and com- practitioner of preventive medicine,
pare its valuation with the' sale price
of adjoining property.
confidence and make a living. But he ' an increasing pre-occupation with the
will have to meet the new conditions, normal and a knowledge of thfe effects
He will have to submit to a measure of' upon health of diet, exercise, mental
team-work in the use of laboratories' attitudes, recreation, and family and
and other resources; he will be com- social life. To train men and women
pelled to recognize the public demand for this reinterpreted and redirected
j for sharing costs of sickness and, moat ‘ function, the medical schools will be
will go hand in hand with social and in
dustrial progress. It is not just a new
way of-spending money, l It is the ap
plication of good business'principles to
the necessary spending of money; the
spending of a little today that a much
greater amount may be s^ved later. In
counsellor of health, a man who can
recognize and correct the minor but
compelled radically;to modify their aims I Truth, it is real conservation, of public
and methods and to “permeate the cur-1 prqperty and genuine economy of public
riculum with the preventive idea.”—1 funds. —Farmers’ Bulletin No. 1441,
Rockefeller Foundation. | u. S. Department ofiAgriculture.