Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-02-06
THE TAX PROBLEM.

To the Editor of The Dispatch:
The continued and almost general fault
finding with the increased valuation of real
estate under the triennial assessment of the
Board OF Assessors is one more example of
the failure of the taxpayer to take hold of
an existing evil at the right point and at the
right time. 1t is but month or two since
we had the spectacle of the city's bonded in
debtedness being increased by small pro-
portion of the qualified voters, the great
majority either abstaining from voting alto
gether or voting against the measure. And
yet there was no alternative at that time; it
was either vote to extend the Indebtedness
over number of years, or be swamped by
an increase of taxation in a single year sufh
cient to pay the Indebtedness. Had the
opposition which manifested itself at the
time of the election to increase the city's
debt, or not. been employed at the proper
time in the selection OF the right men to the
State Legislature, it is not possible that
bill so evidently framed in the interest Of
the contractor and land speculator, was
the street act, which was afterward declared
unconstitutional, and left the city with
what threatened to be an Increased debt,
could have become . law.
The Only Equitable Tax Basis.
Now, it needs no argument to prove that
the only equitable and reasonable basis for
the taxation OF real estate is value ap-
preaching as nearly as possible its actual
market value Mt the time of assessment.
Any other basis of ta 1ation almost inevita-
bly, puts an unequal share of the burden of
taxes on the smaller property holders. be-
cause it leaves wide open TO the wealthy
and influential owners of large properties
the opportunity of having their assessment
reduced by the employment of the very in
fr1an xx1,t tnI nir inn, in, tl1a
munity enables them to use. A cash value
basis of taxation is uniform standard,
from which there need be no deviation.
And yet, while the almost universal pro-
test to the present action OF the Board of
Assessors is fault-fnding misplaced, it is
none the less indication OF an evil which
in the expenditure of public money in Pitts
burg by City Councils. The same good ctti-
zens, who now protest so loudly against an
increased assessment, leave the most i'm
portant function in til xation-the fixing of
the milage the actual amount of taxes TO
be levied-in the hands of an irresponsible
committee of Councils the members of
which If they are property holders in the
city certainly do not estimate Alright the
consequences of the eXtrava@ance they en-
courage. The result of SUCH policy is that
an increased valuation is looked upon by
this same committee as one more oppor-
tunity for increasing the gross amount of
tax levied instead of an occasion for reduc-
ing the millage-
The Tax Rate Here and Elsewhere.
A comparison of the tax rate in the city
of Pittsburg for 1891 will reveal the fact that
outside of any consideration of the return
from taxation the actual rate was higher
than in Boston, New York, Cleveland or
Chicago.
1t is not using outside or extravagant fig
ures to say that tho total assessed valuation
in the city of Pittsburg, averaging the
county and city assessments in 1891, was co
per cent of the cash value. The city rate
was Is mills, average school rate mills, and
county rate mills, making a total of 20
mills, which on a 60 per cent valuation
would be equivalent to a 12-mill rate on an
actual cash valuation.
In the city of Boston the rate was some
thing over l2 mills on valuation approxi-
mating 80 per cent or about 10 mills on q
cash valuation.
In New York, Ohio and Illinois real estate
is taxed for State purposes, while in Penn
York the total tax rate for 1891, including
State county, city and school taxes, was. in
our way of putting it, 10 mills on go per
cent valuation, which on an actual cash vail
uation would be equivalent to IL 4-lO mills.
In Cleveland the rate for State county,
city and school purposes amounted to 2S
mills on 40 per cent valuation, or IL 2-lo
mills on an actual cash valuation.
In the city of Chicago, under peculiar
method of assessment known as "equaliza-
tion" real estate is assessed at about 10 per
the rate of taxation seem higher than it
really is. In 1891 the total tax rate for State,
county, city and school purposes, was So 90
on each 500 valuation, this being on a 10 per
cent basis would be equivalent to, in our
way of putting it, a mill rate on an actual
cash valuation. 81
Pittsburg Getting the Worst of It.
Taking into account that in all the cities
named the return from taxation in the way
of light, police and fire protection is GER
tainly equal to that supplied in the city of
Pittsburg, and that our park system is but
in it's infancy, while all the cities named
support park systems second to none in the
country-considering these facts certainly
return from taxation is less in Pittsburg
than in cities whose burden of taxation is
less.
1 do not know whether it occurs to the
powers who fix taxation in the city of Pitts
burg to what extent the city's prosperity is
dependent upon its manufacturing indus
tries. The result OF policy SO tmprudenr
and short-sighted must inevitably be to
drive many concerns to take advantage of
the inducements offered TO locate outside
the city. Let me give but one example
and Use 1t as an example only because L
am acquainted with the facts by reason OF
connection with the firm. Here is concern
employing between 400 and 500 people and
paying in wages weekly between 5000 and
3, 900. The total taxation on the actual
amount Of money invested in their plant
amounts annually to between and per
cent, making it impossible in years of keen
competition for them to do more than mold
their own. And this is but one OF many
concerns engaged in like business in the
city, who are bound to Pittsburg only until
such time natural gas shall fail as a fuel.
when they must surely seek fields for manu-
featuring where taxation Is not m amount
equal to a reasonable profit on the capital
invested.
General Apathy Is to Blame.
There is no chapter in the whole history
of republican government in the United
States more calculated to call in question
the advisability of a general suffrage than
the history of municipal administration,
fraught rs it is with so much of stupidity
and corruption. With all the experience of
European and English cities behind us, we
insist on beginning at the beginning and
purchasing a dearly bought experience.
The secret of the whole matter is this, that
politicians thrive in consequence of the
apathy and carelessness Of the very citizens
whose interests are largest in the municipal
corporation.
Outside of Pennsylvania some light does
seem to be breaking in the disposition of
cities to either own or exercise control over
valuable franchises that are public property.
The city of Baltimore derives large portion
of it's income from its tax of per cent on
the gross receipts of street railways. A
statute of New York State passed in 1886 or
1887 provides that hereafter when 1t is pro-
posed to construct a stI eet railway in any Of
the cities of the State tie franchise there
for shall be offered at public sale, and bo
sold to the party agreeing to pay to the city
the largest percentage of the gross earnings
OF the road. These taxes in both cases are
in addition to the general corporation tax.
Some few cities own street railways, and
many have long since acquired their own
light plants.
Until the citizens who have no other in
terest to serve but that of good government,
which means low taxation, devote their
energy to the election of men who will