Solaris Farm: A Story of the Twentieth Century

by Milan C. Edson

"In the case of our artisan, who is a brave, industrious, hopeful fellow; after paying his rent, he will have left from his monthly wages, the small sum of twenty-one dollars. Providing of course, that throughout the month, he has been so fortunate as to remain well and to lose no time. With this amount, (seventy cents per day) he must manage as best he can, under such adverse circumstances, to feed, warm, clothe, shoe, and protect his family. With such a meagre sum to supply so many wants, it is impossible for him, even under the most favorable circumstances, to make petty savings with which to meet emergencies. When the misfortune of sickness overtakes him, the situation becomes appalling!

"From this illustration, we may judge how much the city is indebted to the railroad monopoly for its high rents. To great cities, high rent is a matter of the utmost importance. Take all rent advantages from them, and the entire list of their manufacturing industries, could be carried on in country villages with equal profit. It is quite evident then, that these cities are alive to the fact that rent is a measure of the value of locations."

"Before going farther, Fillmore, allow me to inquire! Why could not these working men and their families, who are confined to the city by the high rates of the railroad monopoly, find cheap country homes near the city; say within a radius of from five to ten miles?"

"Thank you George, for such an opportune question! Its answer leads directly to a discussion of the question of taxation.

"A land monopoly, is more to be feared, more harmful to the poor and more disastrous to the interests of the general public, than any other kind. The worst form of land monopoly, may be found in full force, along the outskirts of large cities. These monopolies are made possible, by the unjust application of a faulty system of taxation.

"As a preliminary step, a hungry host of individual capitalists and land syndicates, proceed to purchase large tracts of adjacent lands at farm prices. These lands are then sub-divided into villa sites, and into a variety of sizes of town lots. Prices are placed on these lots, which would about equal the value of the ground, when in course of time, at the edge of the city, they should be covered by dwellings or business houses. This accomplished, the holders like cormorants, sit and wait for the growth of the city and the efforts and capital of other people, to so increase the value of their holdings, that they can realize their prices and take their profits. These periods of waiting, may cover a long time, often, from one to twenty years. Meanwhile, these monopolized lands are kept out of use, because on account of high price, they cannot be used for agricultural purposes.

"Why can these land monopolists afford to wait so long? Because an inequitable system of taxation, discriminates in their favor; offering aid and encouragement for them to do so. Without this aid, it would be impossible to keep these lands out of use.

"How can this happen? In the first place, these sub-divided lands, as a whole in large tracts, are assessed at the rural rates applied to unused and unoccupied lands. These assessed values, may be so low, as to be less than one per cent of the asking price of the lots. As time passes, they are liable to be slowly increased. Under such a discriminating system of assessment, the taxes that may be collected, are merely nominal. This unequal system of taxation, is applied, in a proportionate degree, to all unoccupied lands inside the city limits, which are held out of use by the land speculators.

"How does this state of affairs affect city rents, and at the same time, assist in preventing the poorer classes from enjoying the advantage of country homes? First, it establishes a broad zone of monopolized land around the city. This zone continues to increase in width with the growth of the city. Scattered through this zone, are many tracts of farming lands in active use. For this reason, they have to bear an extra burden of taxes, in order to equalize the low rates on such large tracts of idle land. These heavy taxes are patiently borne by the resident farmers, with the hope of reimbursement in the near future, by being able to sell their farms for extraordinary prices. In this way, abnormal prices become firmly established throughout the zone; which like some great barrier most effectively confines the working man and his family, to the narrow limits of a city tenement, with its high rents.