, 1879-02-09
CITY FINANCES,
Comptroller FarWell's Annual Re-
port---Assets and Liabilities.
The Back-Tax Account--Issue of Scrip
Keeping Down Expenses.

| AAVCNAAs3 Oo"u 1LAQGuSt3.
Following is the annual report Of the Com.
trollcr. Mr.. Farwcll, to the Finance Committee
| GENTLEMEN: have prepared FOR yonr examjna
ton statement OF the rcceints anu expenditures
Of the City OF Chicago for the fiscal year ending
Dec. 81, 1875, and ofits financial condition at thai
The collections or onr rcyennc have been about
up 70 thc average OF the past few years. with the
execution Of the tax In the South
The various Boards at Equalization led 10 Iitea
/ ton as to q postiun ol thnt tax, which has nnal,y
been declared illegal by the Supreme Court, rc-
su!t1ng in the loss Ut considerable amount to both
| city and county. And here we have presented to
lis again one OF the embarrassing features OF our
revenue sys1en The assessments are made, aud
CITY rs n corporation has control. Then, again.
VIC maSc our entire year s expenditures on the sup-
pos.tton that ali proceedings Of these town and
c"unty officers aud boards will be regular and
legal; nut this cannot be determined until after
| The expiration OF tho year. when the attempt is
! MADE TO collect the tar on the strength Of whcn
collection all OF our expenditures have been mudr
me uncertainty attending al our financial opesa-
IONS becomes at once apparent.
BACK TAXEs.
The city obtained Judgment in August last in the
lakes Of 1915 and 1874 the co5rr rcjectns m M as SIT j.
legal certain items in tic Appropriation ordinances
for each Of those years, amounting to 1G per cent
Of 1873 and II per cent of lS74- a number Of the
ohjectors however, appealed from this decision to
the Appellate Court. where the decision OF the
lower Court has just been affirmed. Pending the
result Ut he aupcnls the remainder OF the tclin-
uucnr real estate was offered for sale, but was
largely forfeited to the State.
AAmoun5 Annt 20 frfs% forfeIted for for q!
These amounts are extended on the lax warrants
for 1878 with 10 per cent penalty added, anu
tlcipate the collection Of something from This
source during the coming season.
We have also recently obtained m order OF sale
IN the county Court for property appealed OH taxcs
of 1875 (which cases have becn returned from the
Supreme Court, less 0 per cent for items deemed
illegal. This sale is liked for Feb. u. 1870, and
the amount there involved is s:2'5s 6o7. %.
estate taxes Tor " is7s is74, and 'i is7 Is II hase
charged off Us worthless tho balance Of items for
personal-property taxes q lh71 1872. 1875, and
faiacy to longer treat them assets. Adding all
these losses 10 certain other items in the various
Tax lcv1es, lost by reason Of errors, failures re-
movals, double assessments, ETC.. We fnd Il total
OF 81, III, $50 l6 which has been charged back to
the various accounts uNd departments according
TO the original appropriations and ievies. We still
hold on the books pcrsona-proptrty taxes OF 1873
and 1874 to the amount Of S:itis o57 20 ton CITY
hasis), and also Of 1877 Sos, 1:38. OF ton ststc
basls). 1t remains to be seen how much Ut these
sun.- will be realized.
The recommendations heretofore made by NE for
ccrtaln changes in The lieFeuue law regarding the
time far the collection OF our n1nuat revenues huye
assumed definite shape in the preparation Of bill
which has becn introduced into the Legislature,
aud which includes this nn,on. other desirable pro-
flkiuHs IL IL ~ uE ELpSO sNH!S Will 4AEsC
general provisions may meet with favor from our
present Assembly.
CITY scR1r.
Early last season All opinion was announced by
the Supreme Court Of thls State. which III effect
practically prevented the city from anticipating its
revenues IN tic manner which mad formerly been
the practice, o-wit borrowing. the necessary funds
expenses, interest on the bunded DEBT, etc, in
cash, repnying the lender when tuxes came in.
In this dilemma VIC found ourselves torccu ore
sort to the issue of warrants the City Treasurer,
payable from the taxes OF tho current ycar t1S1Si
when received by hin.-ben. virtual assignment
OF 30 u,ucn OF the tax levy in advance Of Its COL
lection, the warrant represented. and applicable
TO The payment Of SHINE amount of city tnxcs Tor
that year when The tax warrant should come into
s b. IN asls strct conformity MIC WITH the decision reerred
to, and also with that i'll the Springfield case, DC
ci1ad by the same Court few months earlict. Our
ehIafe years EXPENSES have been met IN this nAh-
ner,-exceptlns portion Of the miscellaneous re-
ccipts mud saving Of previous years in some OF the
departments applicable thereto, which have aided
ns TO ccrtain extent. White this course is not
entirely frcc from objections. yet see no better
way until by yearly savings III each department
and tho issuance Of warrants to limited percent,
age OF the appropriations, sufficient income shall
be in process OF coilaction and coincident with the
current expenses.
KEEPING DOWN EXPENSES.
I take pleasure In bearing testimony to the de-
termined und Wise action OF his Honor the Mayor
in compelling each department to go arrange IFS
expenses rs to como within a. ner cent Of the
amount appropriated for the yrar. md, together
payment Ut all claims presented. so that, with an
average collection of taxes this year. all warrants
drawn as above will be redeemed the present year,
i'm fact, there ure hut few Of tho approximations
which hare been drawn upon to tile extent OF IS
per cent
REDUCING THE DEBT.
am happy to be able to record the fact that our
bonded debt, as we'll as our 0oating Utilities, has
been materially reduced, We having paid and can.
ceed during the year, of Municilai, Sewerage. aud
bond. s2a5, ooo TN addition 10 tic sloU, o6o water
bonds which we're Obliged to- sell in January
last TO meet those maturing ri at that that time). This
with those retired in 1877, makes total net re-
duction Of the bonded debt during the two years OF
S7D. 600, these two being the first retrelnents Of
exception of those DESTROYED by fire in 1S71 which
belonged to the Sinking Fund.
IN 10 ali o
S. $50 OF 1877, the holders Of witch VIC have been
unable to find, out for which We have the money in
nnpd}. and have paid slG4, 5l3. OH on the OLD
tiicates Of indebtedness Ut years prior to 1876.
We have also restored the Canal Redemption
fund to considerable extent, having paid Ill cush,
toward the construction Of the City-llali, the
OF STAG D35. .93.
We have likewise added to tue various sinking
funds their proportion Of the back tax receipts,
and huye applied the same TO the purchase aud
ce]lation OF bonds, us noted nhove.
AS you aware. q JUDGMENT was obtained on
the cirent Court Of this county, on lie 18th Of
Match lust, III tayor OF The city, for the sum Of
S507, 7O3 SIS. From this Judgment tue defendants
took appeal to the Appellate Court Of this dis
trct, where the Judgment Of the Circuit Court wus
reversed. From this latter decision tho city hus
appealed TO the Supreme Court Ut tins State.
Tho suit OF the bond OF CITY Collector George
Won Holcn has not yet been tried.
The amount appropriated by the City Council
March s. lS76. for tta fiscal rear ending Dec. 81,
1875 was Sd, TT, 757 .23, which amount Ger
titled to the County Clerk lcsyng the tax, BY otd
nuncc, March %, 1873. Nothing COLLECTED thereon
prior to Jan. !, 1S70.)
USCoLLECTED TAxEs.
1871 Real estate. .......-.....- ...S II. ]a5
1877. ltEal cstAtc..--..... Htt. .Ito
1871 Zeal and personal. .-..-.-.-. 4lt.7l5
lh74. Heal and personal. ......,... ss1.326
1ofG. Eehl tStltc- lH1.H14
1877. Teal aud PERSONAL. 413, :s1
1875. Heal and Eersunal.. Z, ,77s.s5
--SB. 22o, III |
TAX-sALK CERTIFICATES.
(Incuded In the above. and classified Uncoccted
Sale OF 1872 taxes OF 1871 and prior ycars.s SOS
Sale 1871 for of ls7. ind lrtur years.. 14.4t
Sale Of 1874 for OF l~7i prior years. 1S 73
sale ut lR1 for Uf 1874 aud pEur o53
D