This section is from the "Source Book In Economics" book, by F. A. Fetter. Amazon: The Principles Of Economics.
Buildings. | Land. | Ratio. | |
Mashpee ...................... | $ 46,530 | $ 140,020 | 33-100 |
Peru ........................... | 22,680 | 84,825 | 27-100 |
Florida ...................... | 30,790 | 119,246 | 25-100 |
Winter St., Boston... | 605,200 | 8,272,000 | 7-100 |
Buildings. | Land. | Ratio. | |
County of Suffolk ... | $ 444,441,725 | $ 673,208,750 | 66-100 |
Other 13 counties.... | 949,283,781 | 679,071,599 | 140-100 |
Whole state | 1,393,725,486 | 1,352,280,349 | 101-100 |
Buildings. | Land. | Ratio. | |
Lenox ................................. | $ 2,306,500 | $ 1,731,375 | 133-100 |
Pittsfield ......... | 8,685,715 | 6,971,255 | 124-100 |
North Attleborough.. | 2,411,210 | 1,256,613 | 191-100 |
Gloucester........................ | 9,388.650 | 7,886,470 | 119-100 |
Haverhill ........................ | 12,392,960 | 9,772,050 | 126-100 |
Lawrence ....................... | 22,854,800 | 18,587,850 | 123-100 |
Lynn ............................. | 29,892,705 | 23,238,785 | 128-100 |
Holyoke ....................... | 18,194,860 | 15,456.380 | 117-100 |
Springfield ..................... | 37,188,415 | 36,131,445 | 103-100 |
Cambridge ........... | 49,245,700 | 39,989,600 | 123-100 |
Lowell ............................. | 33,293,590 | 26,389.020 | 126-100 |
Newton ............................ | 27,590,325 | 22,878,475 | 120-100 |
Total ................................. | 253,445,430 | 210,289,318 | 120-100 |
In the following seventeen cities and towns, representative of their class, the valuation of the buildings is in the average double that of the land :
Land.
Ratio.
$ 1,204,097 | 193-100 |
1,967,307 | 215-100 |
634,610 | 275-100 |
2,206,250 | 248-100 |
899,535 | 204-100 |
2,221,270 | 275-100 |
1,397,681 | 203-100 |
2,379,681 | 221-100 |
1,085,300 | 239-100 |
4,827,075 | 150-100 |
3,474,395 | 158-100 |
5,214,520 | 211-100 |
408,720 | 836-100 |
891,323 | 263-100 |
8,922,300 | 163-100 |
760,410 | 163-100 |
1,395,618 | 270-100 |
39,890,011 | 205-100 |
Buildings. | |
Athol ............ | $ 2,324,908 |
Clinton ................................... | 4,246,230 |
Abington .............................. | 1,749,697 |
Plymouth .............................. | 6,477,025 |
Amherst ............................... | 1,839,225 |
Chicopee ............................ | 6,115,900 |
Amesbury .......................... | 2,841,815 |
Newburyport .................... | 5,269,850 |
Adams .............................. | 2,598,950 |
North Adams .................... | 7,257,210 |
Attleborough ..................... | 5,479,385 |
Taunton ............................. | 11,024,365 |
Easthampton ..................... | 3,412,906 |
Rockland .......................... | 2,346,350 |
Chelsea ............................. | 14,600,570 |
Blackstone ......................... | 1,244,065 |
Gardner ............................. | 3,767,096 |
Total ...... | 81,595,727 |
Another illustration [page 86]. The St. Paul's Church property on Tremont Street, Boston, standing between two large stores, furnishes another good illustration of what we have been saying and reiterating.
Less than ten years ago $1,500,000 was offered for this property for business purposes, and the offer was declined. Since then the assessed valuations of the adjacent Tremont Street estates between Winter Street and Temple Place have increased more than 75 per cent. In view of these facts it should be very conservative to estimate to-day :
The value of St. Paul's Church property at................ $2,000,000
For this value the St. Paul Society paid in 1820.......... 100,000
The people of Boston have since contributed by their aggregate and particular activities, industries and expenditures 1,900,000 An annual contribution for 87 years of much above........ 20,000
But, in recent years, this increase in value has been at the annual rate of not less than........................... 75,000
Church property being exempt from taxation, the people of
Boston have to make up the amount of the exemption.
This, in the case of St. Paul's is $22,500, and for all church property in the city is $385,000, a year. If then to the above average annual contribution of the public there be added these taxes for 1907, more than .... 22,000
The total annual contribution amounts to................ 97,000
An amount equal to the 5 per cent ground rent of almost $2,000,000 worth of land, or to the taxes, at $15.90 per thousand, on $6,100,000 worth of property! . . .
The undervaluation of urban or village land [page 125], A few illustrations will show how this potential agency, ground rent, escapes observation both in small and large towns, and in small cities as well.
In the following illustrative examples, the ratio between assessed valuation and actual net value of land, as indicated by actual rentals, is calculated by deducting from the net income of the entire estate (i.e., total income less taxes) an amount equal to 10 per cent of the assessed valuation of the buildings, to cover interest, insurance, repairs, and depreciation. Twenty-five specimen estates in Lawrence, Scitu-ate, Clinton, and Whitman, Mass., show ratios, thus calculated, as follows:

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 of the net value. The average valuation was 48 per cent of the net land value.
In Scituate, Mass., a shore town of 2600 inhabitants, of four estates the several assessed valuations were respectively 52 1/2, 50, 48, and 13 per cent of the net value. The average assessed valuation was 37 1/2 per cent of the net land value.
In Clinton, a manufacturing town of 13,000 inhabitants, of five estates the several assessed valuations were respectively 38, 37, 34 1/2, 27 1/2, and 22 1/2 per cent of the net value. The average assessed valuation was 32 per cent of the net land value.
In Whitman, a shoe manufacturing town of 6500 inhabitants, of nine estates the several assessed valuations were respectively 83, 62, 45 1/2, 43, 32, 27, 23, 19, and 14 per cent of the net value. The average assessed valuation was 21 per cent of the net land value. ...
The minor importance of agricultural rent [page 129]. The Massachusetts valuations for 1907 offer a market illustration. . . .
Thus the land valuations of the 284 small towns ($123,-986,089) and of the 70 cities and large towns ($1,228,294,260)
Assessed valuations. | Land. | Buildings. | Total. |
33 cities ................................ | $1,088,329,177 | $ 998,896,745 | $ 2,087,225,922 |
37 large towns ..................... | 139,965,083 | 178,810,787 | 318,775,870 |
70 cities and towns ... | 1,228,294,260 | 1,177,707,532 | 2,406,001,792 |
284 small towns ................... | 123,986,089 | 216,017,954 | 340,004,043 |
354 cities and towns | 1,352,280,349 | 1,393,725,486 | $2,746,005,835 |
are seen to be about in the ratio of one to ten. Nor must it be overlooked, that there is a larger proportion of urban property in small towns1 than of farm property in the large ones. The State census, which gives farm values by themselves, corroborates the above estimate.
1 [The Western reader may observe that the New England "small town" is a township, largely rural.- Ed.]
 
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