, 1874-04-13
THE TAX-GRAB LAW AND WHAT WILL
COME OF TT.

CONE OF IT.
Tho most deplorablo net of legislation in this
stato for tho last thirty years was tho act Of
April, 1860, known as the ta1-grab law. It WIS
cruel invention. 1t was far more to be de-
plorca thnn the Internal Improvement nets of
forty years ago. Under those acts, the original
debts created did not exceed $40 900 900, and for
this tho whole State was justly bound. Under
tue act Of 1860. about one-third Of tho people OF
tho State have contracted q dobt Of Sig, 1000,
the average interest on which il over per cont.
How 1t was intended to pay this dobt IL now be-
coming painfully notorious. It was well known
that these municipal bonds, If issued upon tho
nakod responsibility Of the towns, could never
DO sold. a million or more Of them issued in
1867 and 1868 could find no purchasers, except
to limited extent among tho credulous
citlzens Of tho municipalities Issuing
thom. Something more waa necessary
The result WAS tho act of 1869, which
is fraudulent in letter md spirit from the first
limo to tho last. Tho first fraud WAS upon tho
people OF the various towns and counties, by
seemingly giving thom an exemption from State
taxation for ton years to an amount equaling
tho whole Of the debt voted, Under this snec;ous
provision, these people wore taught to bo1joyo
that whatoycr amount Of bonds thoy should vote
would be paid by the other towns and counties
of tho State, in tho shape Of an increased rate Of
taxation for State purposes.
Tho second fraud was upon tho poople who
were to purchase tic bonds. We do not mean
the railroad contractors, nor the Credit Aobi1ier
companies, because these were all PARTIES to the
fraud, but wo mean the mon mud women, trlts-
tees, administrators, and guardians, all over tho
country, WHO were to bo Beducod into investing
their money in them. The Inv was 80 framed and
worded that those people wore lcd to believe
TINT The State Of Illinois had undertaken
to DO responsible for tho interest On these
bonds, aud to provide a fund for paying tho
principal, and that State tax WAS to bo levied
and collected tat tho same time ind In tho satno
manner as tho ta1 to pay tho interest On tho
State debit" Several other tuking but NOAH
ingloss sentences wore placed in the bill, 80 that
pious brokers and religious newspapeEs might
urge their purchase by persons Of small means
This notorious and infamous fraud attracted
little attention in this State. becauso few Of the
bonds were hold here, and because tho swiudling
provisions Of the law did not talso practical Of
feet at once. III 1870, 1871; and 1879, tho Audi
tor levied special tax on the property of tho
municipalitios owing tho debt to the amount of
tile interest. The State assessment in those
yoars was but little In excess of tho assessment
OF 1868. In 1879, ono or two Municipalities re-
sisted the tax because Of fraud in the issue Of
the bouda Other counties failed to pay their
interest," so In 1878 there WAS . grand
raid of tho bondholders the State OIL
cors cooperating, and tho State assessment
was raised from s4so, ,ooo 900 in 1868, to s1,s4s.-
600 900 for 1873. THIS change threw m immense
increase in tho valuation into tho towns and
counties owing these dobts the tax on which
was equal in round figures to one million Of
dollars. As the tax for lntorest was also loyied
tho railroad-aid tax in 1878 will exceed, if COL