The morning call., 1891-09-04
SOLID FACTS.
One of the Addresses Before the
Board of Equalization.
An Argument Against the Increase Of Taxes
In the City and County of San Francisco
The Powers of the Assessor.


Real Estate Circular. was recently waited
upon by the Mayor and the Assessor. who
asked him to appear before the State Board
OF Equalization and give reasons agains
the Increasing of city and county taxes.
Mr. Magee spoke as follows:
The real estate and personal property of Chi.
cago this year are assessed at S219. 354, 36S.
Inc Inc levy Tor city purposes there was S4. 397 ,0S7.
lhe bonded debt Is S13, ,545 400; annual interest
on the same, SS25,350. San Francisco last year
raised Tor city purposes alone. leaving out Stale
lakes from real estate and improvements, and
Dy licenses, etc., S4616, ,262. The lax rate in
Ohlcago last year was So cents on each S100
OF assessed value for the State, 81 "a cents for
tue county aud So 1913 for the city. In addi-
.loh there Is what are called town and park
taxes. Adding these all together, here is ihe re-
sun ioT The various sections OF the city. for they
are not all assessed alike: for the South side,
80 S612; for the West side, SO 631a. ana for
tue North side. Sc 03. Now, II we allow Sc on
tne slOO all over Chic go. and it Is not quite SO
hlgh as that, we have tax rate that Is ap.
patently very high, but 1t really becomes low
rate when II is remembered that assessed values
prices. In San francisco the average
rate of taxes for city and State
tax purposes Is 81 10 on each S1oo of assessed
Eaiue. Eaiue. On property assessed at $4,000 in
Chlcago The owner would nay S102. in San Fran
cisco Sl7o. Chicago Is carrying Sl3 ,545,4 400 Of
debt while San francisco practically owes moth.
bhlcago showing now rdiculOusly low assess
mehts are there compared with marker values
4nS OudIlOer OF commerce property, on lhe
southeast corner OF La Sale aud Washington,
Including the lot to the south OF the alley, sold
lot in0nr Sl2o 900; assessed In 1888 and 1889 at
$Jo,OO0. Portland Block, southeast corner OF
Dearborn and Washington, sold for 100000;
assessed In 1888 and 1889 at 100000 and
$4,000. The property on Wabash avenue.
northeast corner OF Randolph street, sold Tor
Sl7o,o0O; assessed In 1888 and 1889 at S26,-
ooo The Counseman property. northwest cor
ner La Sale and Jackson streets; the laud sold
for Sl6O,o00, building worth about 100000,
both assessed IN 1888 and 1889 at $4,000. The
iot sold at less than its intrinsic value, from the
Tact that 1t was leased for 80 years at a fixed
rental and could not therefore be made to Yield
more during the term.
ln Illinois, where taxes are levied by valua-
llon, so that every one pays a tax in proportion
10 tlle value of The property, the Supreme Court
mas hXed an al btrary rule that the valuation Is
lawful II II is one-thrd the
ACTUAL CASH OR sALABLE VALUE.
The combined city, county, aud State tax rate
In New YORK CITY in 1888 was 81 20 Oh each
SlOO OF assessed value; this year The combined
taxation 10 New York in 1889 was S34, 993, 900,
Of which sum S4,S22. 900 was the States pro-
portion. New York has population of l, 800, 900.
and an Indirect population OF at least 400, 900
mole. Ii IS tie headquarters of a large number
oil nrms. corporations aud individuals of foreign
origin doing business In many States. These all
contribute something toward the burden OF
taxation, great many corporations are char
Tered, and pay taxes on their capital or assets.
fct even with the aid of all these, and In spite of
the fact that New York City is small empire OF
wealth and landed values In tself-despite the
sun stronger fact also that IL Is carrying debt
and paying interest on A. 3ol ,2l5, it last year
raised ouly S34. 9S3. 600 for city, county and
State taxes, while from our village of San Fran
cisco Hor II Is as yet only large village beside
county and State taxes. New York, therefore,
despite It's debt and the notorious corruption Of
Us city aud Slate Governments, Is not nearly as
DeaTly taxed as Sdu Francisco.
vi the total deposits OF S93,5O0,0 600 In our
savings banks, II Is estimated that $40, 100000
Is owned by laborers aud mechanics and peO-
Die OF small i'm ErIupisrO The elf
mas population Of 100000. That allows
Sl33 331s Tor each man. woman and child In
for city, and S1,749,o45 for state government.
Total, S6,365,3O7. This Is S2l 1-5 per head
for every lnhabitant, or In other words. one
years tax In San Francisco last year abb
sorbed one-siXth OF the total savings OF long
years III our savings banks. The savings banks
pay an average OF 81 20 on every 500. They
loan ON mortgage In the city, and an average Of
81 90 10 each interior county quite One-quarter
of their net earnings therefore, goes for taxation.
In January, 1884, the seml-annual report of
our city savings banks showed that each OF them
owned city zeal estate 10 The amount OF "a, 1S2,-
519i they now only own S142390 OF such prop
eriy.s
THERE WAS TINE
When they owned about S7,ooo,o0 worth of
city property, and but that they then granted
sygtS e In sh6g 70 a %ao msIs
work and unable to meet their obligations, they
would have had 81 200, 900 worth of foreclOsed
property on hand This honorable board would
then have found II very difficult TO define what
was a casn or market value.
No value but reasonable value Is ever true
market value. Abundance OF money III good
times, marked by Imitation and the temporary
reign OF utterly dishonest boomers, are not sea-
sons OF market Values but OF high and some
times OF insane values. The victims of 1868 90
paid $500 to $1,000 for lots In ihe southern out
skirts which tneY sold for 500 TO S100 three TO
fifteen years afterward.
The Union Lion Works-land, building and
machlnery-are assessed this year at S456 600,
on which the taxes, at 81 70 on The SlO0. VIII
this year be S7752, or $500 month. The COM
pany Is to pay this price for the privilege OF
creating profitable work for 1900 10 5000 men
at higher wages than is paid for like services In
any 0ler State of the Union. The coal, iron
and all machinery used by these works cost more
zen reioces at the success OF these works. The
Tax Collector rejocos also, only with his con-
gIaluations he slips In his BILL for $3.50, which
this board tales Of increasing. The City As
SCISSOR Is charged with neglectmg 10 assess suiii-
ciently high the personal property of certain
nlllionaiTes (mCney-lenders), and therefore such
factories as the Union Iron Works are TO be
taxed still more heavily than $3.50 a month for
the privilege Of existing in 4 southern outside
suburb, TO which their enterprise gave It's
chief real estate value. SO. likewise, II this
honorable board should raise all city taxes,
say, 10 per cent, the small homestead owner,
! now paying from $40 to $50 per year Tor city
and State lakes, must then pay S44 or $685. This
raise, II II Is made, Is more TO tile man earning
not over 81 80 day the year around. and sup
porting family thereon, than the hundreds OF
thousands extra the millionaire must pay, II the
advance Is made. / last week heard OF
| laborer's family that bought
ON THE INsTALLMENT PLAN
A one. story house and small lot In the Potrero
Two years ago. To meet their payments they use
no meat. and pinch and save Oh ear-tlckets and
every Item OF expense. They had better not
have bought the property because they are iu-
Turing their health by the way they live. Their
purchase is only jusiifabIe from The desire TO be
independent and 10 their own homes. But such
people can easily by few extra dollars taxes
ana street assessments or by spell OF sickness
or want Of work lose their small homes, and in
this loss, Independence and good citizenship Will
bOh receive an lll-deserved blow and suffer q
severe loss.
1t is a subject of great amusement to many to
hear some OF the daily papers b0astlng that the
Dollar Limit prevails In this cily. That limit
does nOmlnally prevail, but two points fix taxa
ticn-hrst, the valuation OF property by the
Assessor, aud second, the tax rate, which Is
fixed by the Supervisors. The tax rate here, the
| Dollar Limit, is indeed low, but OF what use Is
| that when the Assessor Is allowed to break
property owners backs by constantly increasing
assessments?
Let me take the liberty OF asking you this
| question. III you do not sit here as citizens OF
| the State Of California and appointed for the
good of the State, ana II you hear that San Fran
cisco IS being assessed away ahead oil what cities
IKE Chicago and New YORK are paying, Is IL not
| within your discretion and your sense that you
| do not want TO drive money away from San Fran.
cisco to those cities, but 10 follow such course
! as Will tend TO San Francisco's prosperity,
as IL has With other cities? Now. what would be
| the result Of the proposed Increase? There Is
$50 600, 900 loaned out now In the Interior coun-
| Ties of the State Of California by the San Fran
| cisco savings banks. IL you raise their assess
| ment and make them pay more than they are
| paying they will raise tho rate OF interest in the
| interior. And let me say would utterly despise
| myself II came up here TO shield San francisco
from any Just taxes and have you put IL upon the
| lumbermeD, farmers and sbeep-ralSers and other
men engaged iu working around in this Stale. I
have no such desire.