, 1877-10-07
VALUATION hND TAXATION OF CHICAGO
PROPERTY

The State Board Of Equalization finished
its labors last week, with results relatively
more favorable to Cook County than usual,
and decidedly fairer to those who happen to
do business under the name and Style Of
corporation. For these results VIC think
Mcssrs. Roor, CHASE, mud NEHoFF, the MEM
bers from Cook County, are entitled to
large share of the credit. They met the
country members in concillatory spirit,
which found response in the disposition to
treat Cook County and the corporations moro
fairly than last year. The additions to Tal-
rations woro very decided, tho personal
propcrty valuation being increased 81 per
cent, the lands outside the city limits G3 per
cent, and tho city lots IS per cent,-or
an average increase of 81 per cent. But,
relatively, the increase was about 1G per
cent less than last year. The improvement
shows some slight disposition on the part Of
the country members to abandon the notion,
which has prevailed so many years, to the
effect that Cook County was fat goose, to
be pluckcd for the benefit Of the rest of the
State.
The Board also took a new departure in
constr11iuc the law for the taxntion of rail
road capital stock. Heretofore the practice
has been to estimate the value OF tangible
nropcrty on some common basis, as if weigh
ed or measured, whereby IN equal amount
of railrond iron on prosperous road and on
a bankrupt road would be valued ut the
some figure; this valuation OF the tangible
nropertv. was then deducted from the
assessed value of the capital stock and IN
additional tnx lcTied on the difference. The
new process has been to value the tangible
propertv at what it is actually worth in the
nlace where it is found and under the uses
actually made Of it; the aggregate thus as
certoiued wns then compared with the nlar-
let value of the capital stock, representing
the investment in tangible property, and IN
nearly all cases it has been found that the
actual market value of the capital stock was
about equal to the aggregate value OF the
tangible property. The consequence is that
railroad property has escaped double taza~
ton. The benefit Of this new system
is that the railroads will pay as large
n tax as before, if not larger, but will have no
proyocation to resist and itignte the matter
in court on account Of the taxation OF capital
stock in addition to the tangible property.
| The same system has been followed in the
| valuation Of other corporations, except in
| those cases where franchise carries with it
| a monopoly, as in the case of a street rail
road or q gas company, which gives it n
special value over and above the tangible
| property owned by the corporation. AS a
rule, however, the State Board this year hos
| proceeded upon the principle that franchise
naturally attaches itself and becomes part
Of the tangible property which it covers, and,
in taxing the latter, tho former lis taxed at
the same time. This is the true principle,
aud a proper construction of the law,
Tho completion of the State Boards
equalization enables tho estimate of the rate
of taxation which Chicago property-owner
will have to pay this year. The total valua-
tion Of real and personal property within the
city limits is $tos, ,oo2, s57, and the va1ua-
ton of corporations and railroads will proba-
bly, bring it up to about $1so, 1000, 600. The
tax levied by the city is 81, ,o2G, ,G42, which
will make the rate of the city taz about 800
per cent. The valuation Of all city property
last year was $1Gs, ,03s,17s and the tax-le7y
,$+,046, sos, making the rate 2.40 per cent
The following table will show approximately
the aggregate rate of oil taxes-city, county,
State, and park-for this year as compared
with last years rate: