, 1875-12-26


TAXATION IN CHICAGO.
In the money article of this paper ther,
appeared few days ago statement con
cerning the growth Of taxation in this cit
which contained some comparative figures
These figures were correctly given, but the,
! were defective in the omission Of other fig
ures equally pertinent to the subject ant
| necessary for proper explanation of th.
matter. It WAS stated that in 1860 the pop
ulation Of Chicago was 109, 20C and in 1871
it WIS 400, 000,-an increase of 2G2 per cent
while the direct city ta1 in 1860 was only
$373, ,315, and the tax in 1874 was S., 4GS, ,692
an increase Of 1854 per cent, or five times q
fast as the population increased Under the
old style of doing business, the city. having
the authority to borrow money, avoided tax
alton and sold bonds, leaving the future to
pay the interest and principal. The growth
of the city was SO rapjd that the extension OF
water maius and of the sewerage system
required immense expenditures, and, as
these were not to be paid for by special
taxes, the revenue for that purpose
was derived almost exclusively from
the sale of bonds So, largely for school,
houses The statement made onits to men-
ton the fact that the rates OF taxation for
ed by the charter, and that demagogism re-
fused to advance the aggregate valuation of
taxable property. Thus in 1856 the total as
sessment of taxable property in Chicago was
S31, 736 ,o64, and in 1860, four years thereaf-
ter, covering q period Of great growth, the
assessment had only increased to $37 ,053, Sig.
In 1850 the total valuation OF real estate WIS
but $31, ,198, 900, and Of personal property
not quite $G,0oo,0oo
The extension of the city necessarily in
creased expenditures. In 1864 the revenue
from ta1ation was s975,o0o, and special as
sessments IS much more. The public debt,
which had been incurred during previous
years, then began to assume large proper
tions. In 1868 and 1869 the system Of val
uation was changed to full cash, and the total
of taxable property was returned in the lat
ter year at Se66, ,o24, $50, and the revenue COL
lected exceeded $4,000 900 (nearly four mill
ions). In December, 1869, the debt Of the
city had reached $40, 754.0o0, of which over
81 ZOO, 900 was for water and sewerage,
and the remainder tunnels, school-houses,
and canal-deepening bonds. The bonds sold
in 1870, before the new Constitution went
into effect, sweued the debt to thirteen and
a half millions, which sum represents the
in addition to general and
special taxation.
Then came the Great Fire, with its Sweep
ing destruction Of public property, most of
Which has been renewed. In 1870 the new
Constitution prohibited any further increase
Of the city debt, and established the pay-as-
you~go system.
Under the vass increase Of population, and
OF the expenditures for all
purposes, the cost Of maintaining several
departments, as conducted by professional
had become enormous when con-
pared with the cost in 1850. In round num-
1ol1ars for schools, nearly u million for
gas, a million mora for police, another
million for interest. The Fire Department
las likewise grown more costly, the number
# bridges has been more than doubled; we
low build sewers and lay water.pipe, and pay
ash for them In one year we recently ex-
'ended $100, ,000for sewers alone. Ourfunded |
'ebt remains where it was in August, 1870. |
The City Of Chicago has been largely recon-
tGucted ainca the fire in many Of its public |
buildings and other improvements The
'aved streets have been largely extended, the (
ewerage and water~system enlarged, new and !
additional bridges CONSTRUCTED, all of which |
lave added to the general cost Of the City
Government. While our revenue from direct
axation has increased in the fifteen years,
he assessed value Of property hes increased,
espite the fire and ali its losses, over 700 per
ent The rate Of taxation on the cash value /
+ the taxable real and persona, property in
bis city in 1875, for city purposes, is about
he and one~fourth per cent
We do not question or deny that the munic-
pal expenditures of Chicago are extravagant
4 many things; that there has been an un-
number Of useless Offices created
nd maintained at great cost that the sal
ries for unskilled and commonplace labor
nd services are excessive; that there are
seless Offices existing, which the Common
ouncil, instead Of abolishing, areSinereasing.
Il this is undoubtedly true, and Chicago il
o exception to the general rule of the un-
1stifiable increase Of expenditures in al the
'rge cities Proridentially, however, We
ave in Chicago constitutional restraint
pom the increase OF public debt, and the City
government is limited in its expenditures to
1e actual proceeds Of taxation. We are not
led both by excessive taxation and increase
public debt, as are other cities, and the
:tual ta1 levied during the last three years
as oeen about the same amount each year.
Fe have seemingly reached our maximum of
'1aton for city purposes, aud, when the
'sSes by the IRE shan have been fully re-
toeed, tt u no. nkaly thai The pre.ant agsre-
Ass Of tax viii b increased BY Any houeet