, 1873-01-13

IL 4cuo. LILO u t4446 t1t6tS fAoFA*EA
by law that, in all those counties, towns, and
cities where bonds had boon, or might bo, issued
in sid OF railroads, so much Of the State tax as
might be collected upon an increase OF assoss~
State Treasury, and applied to the payment Of
interest on aaid bonds. It further stipulated
that all taxes levied and collected for State rev.
cnue from the property OF euch railroads in
apart to tho credit of such municipal
ity, and applied to tho payment Of its
railroad indebtedness. The bonds to which
the benefits Of this oct were to extend
were to 10 registered in the Office
OF tho State Auditor, which officer Was to be-
come the fiscal agent Of the municipalities in
disbursing those funds. This net was wrong
and unjust upon every principle Of honesty and
law. It WAS release of certain localities from
their proper share Of taxation; 1t was appro
priation Of Stats revenue to pay local debts, and
w.s an increase Of taxation upon other parts Of
tho State. In the reports Of the Auditor for the
last two years VIC find statement Of the amount
of railroad aid bonds regiatered in his Office.
They are thus stated:
II counties haye registered bonda. 46o0,3o
1ss towashipa ..--..-...'...."'. o,as3948
- Incorporated towns -. ..,.............. 416,ooo
counties under act Of 18j5..-.......... 657,450
ci.ies-- l,S9o,l56
Total railroad debt....-.. 395,o5s
The tax collected to pay interest, etc, on this
debt for 1870 end 1871 was g, ,o79, ,2o6, Of which
s176, ,5C5 WAS accounted for in ATTACHMENTS, COM
missions, etc. The amount Of State sax &C.
qucstered to pay these local debts was:
1870 Tax On Increased assessment. ........ 217
1870. Tax on railroad property. y..:.-.+-.*... 4S92
1371. Tax increased assessment 66,162
ISL Tax on railroad property. 9,o56
Total In 1870 and 1911 $121, ,167
From the tax Of 1872 there will probably be
taken, at least, s125,ooo, and the amount will
increase annually. Tho whole levy for State
royenua in 1871 was fyo and onc-half mills.
The revenue collected under that levy and ap-
Piled to this local debt YES $685. 0o0. Conse-
quontly, it WAS releasa from State taxation OF
property in these privileged counties, towns, and
cities having IN assessed value of nearly
$4,000, GOO. The Constitution in force in 1863,
as wol as the present Constitution, required that
tho tax for State purposes should be levied upon
all property alike; it also prohibited the State
from lending it's credit to, or assuming the dcbts
OF, any corporation. In tho face Of this, here is
proceeding which is D release Of 920. .000, 900
OF property. from taxation; or i loan Of tho
credit and pledge Of tho State revenues equal
to the tax on SIC. 600 Of property; or it is
annual appropriation Of s12o,ooo to pay the in
terest on the local indebtedness OF certain coun-
ties, towns, and cities. However it may be re-
garded, it is gross fraud upon tho other por-
tions Of the State. Had tho State, instead OF
following the practice Of lovying the taxes upon
9 one-hfth valuation, lowered the rates, and
adopted tho cash valuation as the basis for taxa
ton, four-ffths Of tha State revenue in these
privileged counties, towns, and cities would have
been lost to the state,. and would be cp-
piled to these local debts. There is nothing to
justify or exteauate this diversion of the State
taxes for local purposes. r: