The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1895-10-05
PUBLIC AND PRIVATE TAXES

The Illinois state bureau of labor sta
t,stics has issued, through Secretary
George A. Schilling, a report that COM
prises review of Illinois taxation laws
ana metAeds. The report is very ex
haustive and contains several statements,
groups OF statistics and recon- m endations
that are of interest ana importance TO
the people of every state in the Union.
After dealing few telling blows at the
protective tariff system of taxation, the
report explains what are public aid what
are private taxes, and says in that con-
nection:
Ground rehts, too, are private taxes.
The amount OF ground rent that any per-
son will give for a particular site upon
the earth's surface is dependent mainly
upon the public Advantages which that
site controls. So with the amount he
would pay if the right of control were
commuted for gross sum, as when sites
are bought and sold outright. Power to
exact ground rents and sums in conn u
tstion. unlike the power to exact wages
for work or prices for goods, is aim ost
ment of those public benefits which So
ciety affords. If the state exercised this
power directly the proceeds would be
public taxes. When individuals exercise
1t the proceeds are private taxes.
Ono chapter of the report is entitled
Capitalization of Land Ownership, in
which the claim is made that the system
of taxation in vogue in Illinois, even #
enforced to the letter by assessors, stimu
lates and encourages land monopoly. That
is undou btedly true and if true OF Illi-
nois taxation what shall we say of the
California system? We quote further from
the report:
1t is the value of holdings, not merely
their area, which in periods of highly
specialized industry, like ours. indicates
she extent OF land monopoly. The useful
ness of land is measured by it's value.
Thousands of acres in sparsely settled
regions are OF little use, and consequent
ly of little value in comparison with frac-
tions of an acre at labor centers. If tn 6
whole desert of Sahara we're monopolized
it would make but little difference either
to the laboIer or to the monopolist. but
the monopolization OF city business
block controls enormous unearned IN
comes to the enrichment of monopolizers
and the incalculable damage of the in
dustrious.
The report also discloses list of forty
two leading owners of Chicago real estate.
and the values OF their respective hold
ings. Marshall Field. the merchant
prince, leads the list. His eighteen
pieces OF Chicago dirt show total 'front.'
age of 1900 feet and total valuation of
SIS, 900, Oc0. 1t might also be mention ed
that one of Mr.. Fields very valuable
holdings is small slice of ground at tn e
southwest corner of Monroe and LaSalle
streets, on which stands the magnificent
Temperance temple, erected by the W..
C.. T. U. women and their friends
throughout the United States, at cost
of ne arly 81. 0J0. 900. 1t is this m ost i'm
posing business block in Chicago. The
ground owner has never improved the
site himself but about tour years ago he
kindly leased it for term of years to tn e
". G. T. u, from whom he receives an
annual rental of only $4,000. Mr.. Field
may or may not be a prohibitionist. but
evidently he has warm corner in his
heart for the tenn perance cause.
Second in the list of big land owners
is l.. Q. Letter, a retired millionaire and
a former business partner of Mr.. Field.
Mr.. Letter owns twenty-eieht pieces of
Chicago's foundation, showing total
frontage of 1883 feet and valued at $12, :
900, 700. He. too, is large hearted
phianthropist, who makes donations of
money TO public charities and watches
the increase of Chicagos land values
with an eagle eye.
The bureau report severely cirticises
the work of the state board of equaliza-
ton in taxing corporations, ana fur
nishes startling proofs of neglect, favorit-
ism and discrimination.
One instance is given to show the steady
increase of land values in Chicago. A
quarter of an acre on the southwest cor
ner of Madison and State streets was sold
In 1880 for $50. At that time only fifty
people we're living on the present site of
the city. Chicago today contains 1, $780,
600 population. and that quarter acre is
valued at 81, $50, 900. Fortunately, it is
In one of the four unsold school section
blocks, and the rentals derived annually
from the ground, instead of droppin e
into private Golfers, 60 to the benefit of
the community that produced the land
value.
The report closes with several recon-
mendations as to reforming the taxation
system. The most important and sig
nihcanr recommendation Is that in favor
of assessing all lands according to their
site vaules and irrespective OF improve
ments, wh ich is characterized as 'sim Pile,
practicable, natural, scientific and Just"
and as probably 1.-THE natural way of re-
investing every laborer with power to set
tie his own labor question for himself"
All. things considered, this report OF
the Illinois bureau of labor statistics is a
public document of rare i'm portance. and
one from which manv exceedingly valua-
BILE lessons may be drawn by every bod y
VINO appreciates the overshadowing neces-
sity of tax reform.
We would suggest to those papers and
politicians who are talking 80 glibly