The McCook tribune. (McCook, Neb.) 1886-1936, 1894-06-08
ONE CITY'S TRIUMPH.
APPARENTLY lN5uRMOuNTABLE Oh
STAcLES OVERCOME.
How the City of Springfield, Ills, stopped
Paying Rent and Built Its Own Home.
Revenue From Street Franchises-Mu-
nicipal Control of waterworks.

z ETouu 6trttt fIdDcnfket-Mu-
nicipal Control of watcrworks.
One OF the most embarrassing cues
tons that confront many cities has
been solved by Springfield, Ills, which
dedicated on the first day of last March a
newly erected city hall costing $50, 900
without adding to the bonded indebted
ness of the city and without raising the
funds with which to pay cash for the
investment.
Operating under the state law known
as the general incorporation act, the
city of Springfield was hampered with
the constitutional inhibition against ex-
ceeding the maximum rate of taxation,
and the annual assessments of property
for taxation were SO reduced each year
by the state board of equalization as to
make the total available for
city purposes too low to admit of in
Guiding a building fund with the cur
rent expenses. That the city has found
the way in which to overcome such OBJ
stacles and by SO doing has today a mag
nifcent public building makes the plan
adopted for its erection have something
more than ordinary interest in these
days of town booming"
On the 9th day of February, 1893,
the plan which was subsequently, adopt
ed was proposed to the city council by
Edward w. Payne, a young business
man He suggested that the city of
Springfield stop paying rent and build
its WI home through the assistance Of
a local building and loan association.
In order to make it possible for the city
to undertake the project in the way pro-
posed MI. Payne offered to organize a
syndicate Of citizens who should sub
scribe in their own names for enough
shares of stock in a local building and
loan association to furnish all the need
ed capital.
This syndicate, he proposed, should
cooperate with the city council in the
adoption of plans, the awarding of o n
tracts and in the active work of super
intending the construction of the build
ing. They were to be reimbursed for
their outlay by the monthly payment
from the city treasury OF a sum of mon
ey slightly in advance Of the aggregate
expenditure the city was then making
for the rent of dingy and unsatisfactory
quarters for its public offices in a mum
Der Of old buildings in different sections
of the business district. At the end of
10 years the aggregate of these monthly
payments should be sufficient to return
to the syndicate their original invest
ment in full, with a reasonable addition
for interest OF the use of the money.
The plan was accepted, and the building
is the result.
In order to make their proposition the
more tempting the syndicate represent
ed by Mr.. Payne secured IN option on
the most desirable site in the city for
such a building and offered it in con-
nection with the main proposition. The
city council had previously prepared the
way for the ultimate erection of such a
structure by establishing sinking fund
to furnish the money for the purchase
of a site, and it had available for that
purpose the sum Of $40, 600, which it
paid to the syndicate for the title to the
land on which the building now stands.
The property was decided to the city,
subject to a mortgage which secures the
syndicate against any loss of its invest
ment. The result is that within a few
days more than one year after the plan
was first formally proposed the city is
making payments on its permanent
home. The city is also negotiating for a
electric light plant for light
ing the streets and to furnish light to
private consumers, and it is considering
the same plan by which the new city
hall was built as the solution Of a prob
lem similar to that with which the
council was confronted when it under
took the building project. It is proposed
also to require private corporations ask
ing for public franchises to pay annual
ly into the city treasury a percentage on
the gross receipts of the business they
enjoy from the use Of the city streets.
1t is expected that this policy will
eventually lift the bonded Indebtedness
of the city and reduce the rate of taxa
ton for local government expenses to a
point below the rate in many cities
which give franchises away and get no
In behalf Of this policy it is
that it is fair and just both to
the company that asks for the use Of the
and for the citizens, and also
that it eliminates the element Of selfish
ness and gives the citizens a direct and
personal interest in the financial success
Of the companies which furnish necessi-
ties to the public.
By assuming direct control Of the
system last year the city of
Springfield has made that branch of the
service more than self sus-
tanning, and the revenues derived dur
ing the first year Of that control give
positive assurance that in a few years
the low rates charged for water will
yield revenue enough to pay a large
share of the bonded debt and help in
the reduction Of the rate Of taxation.
Causes Which Promote Growth of Towns.