The Rock Island daily Argus. [volume] (Rock Island, Ill.) 1872-1873, 1873-11-26
FAXES on RAILROAD AID DEBTS.

|,
There has been good deal said in the
Chicago papers in regard to scheme to
make the State pay the interest on all
bonds issued by towns, cities or counties
in this State in aid Of building railroads.
1t is charged that the holders of these
bonds, fearing reputation by the towns,
cities or counties issuing the bonds, com
bined to procure the passage Of an act au-
thoriEing the assessment Of tax by State
authority TO pay the interest on these
bonds. And it is charged that the same
bond-holding ring will ultimately secure
the payment Of these bonds by the State,
instead Of by the towns, cities aud coun-
ties which created the indebtedness Chi
cago never having rendered any aid in con-
strueting railroads is peculiarly sensitive
now at being made to pay cent, although
Chicago is and has been more largely ben
Gifted by the building Of railroads than
any other town in this State. In fact very
much Of the present indebtedness of towns,
cities and counties was caused by rings Of
Chicago men who urged the contraction Of
these debts along the line Of various rail
roads as means of making money and
bene6tting Chicago by securing the roads,
and at the same time letting Chicago off
without paying q cent. 1t is argued by
many that the building Of these roads was
benefit to the State at large and that ey.
erybody should help pay.the debts created
for the benefit Of the State generally anC
ofChicago particularly. Of course this il
not the view Chicago takes of it, as will
be seen by the following from the Tribune
Certain towns, villages, and counties il
this State, some years ago, permitted them
selves TO be seduced or compelled by fraud
70 issue municipal bonds to be paid over b
certain railroad companies. These bond
in the aggregate amount TO over $4,000,
600 Of this debt over eleven mil
lions of dollars are recorded IN the Au
ditor's Office at Springfield. These bond.
whether honestly or traudulently obtained
were given in exchange for capital stoc
in the railroads; but the railroads havin
been mortgaged away, or perpetual
ledscu, the SUCK Is Tt0utTcu Nhiuelcse
The annual interest on these bonds exceed
million Of dollars, and the people Of tn
several towns have generally assumed
tone Of hostility and some have absolutel
refused 10 pay any more interest on th
bonds. The bonds have, therefore, b.
come discredited, and, as might be expect
ed the holders have had little expects
ton that a people who would refuse TO pa
the interest would even take pains TO pa
the principal, and, therefore, rightfull
argued that unles the State assumed tn
debt, the bonds would cease TO have an
value. They, therefore, combined (holC
ing Sll ,O00,OO of bonds bearing an aver
age rate Of 9 per cent interest), to obtai
indirectly what the constitution directl
prohibits. They invoked the grab law
1869 the auditor ordered an increased a.
sessment, and the State Board of Equl
cation transferred Sl6O,000, 900 Of taxabl
values from the State at large 10 Chicago
The law OF the State authorized the audi
or TO levy such rate of tax on the tot;
valuation of property in the State as woul
produce $l,000,000 for school purposes
and 100000 for State purposes A
that he was authorized 10 collect was th
aggregate Of these two sums, or 50, 500, 0O1
In addition 10 these sums, however, h
has levied rate of tax to produce q, 500
sos Omitting the special levy for school
he has presented rate Of tax for re,
enue purposes which will produce So 622
3j3, instead of the 81, 500, 900 authorized b
law, leaving an excess of levy of 81, , l22, 35j
The purpose Of this excessive levy
eleven hundred thousand dollars for reve1
ne is frankly stated, and declared to be |
pay the interest on the more than eleye
millions Of dollars of county and tow
bonds issued in aid Of railways. OF tn
Sl,l00i00O extra tax levied to pay the il
terest on these rail-aid bonds, Chicago ha
10 pay not only her proportion upon III
real valuation of her taxable property, br
also upon the 100000, 600 of extra value
transferred to her tax list.
Chicago objects TO paying this tax o
several grounds:
81. That it is illegal 10 levy tax f
State purposes and apply the money I
any other purpose.
80. That il is unjust, illegal and unfai
10 tax Chicago TO pay the municipal debt
of Springfield, Bloomington and Quincl
'3. That the illegal, arbitrary an
unjust assessment Of the property
this county, by which 100 per cen
was added to the tax, il such deliberat
discrimination against Chicago that sui
mission 10 it is but 20 invite still furthC
aggressions in the future. For these re;
sons Chicago proposes TO pay no part {
the tax levied for this Illegal end until tn
courts shall say we must
The Puture PARTY