Chicago eagle. [volume] (Chicago, Ill.) 1889-19??, 1898-03-19

tne question Wnctnpr 1unuS can ne
made available to defray the cost of The
assumption of public control of suci,
works.
AS Il general proposition. legal au.
thority to engage in n particular pub.
| lie work implies power to raise funds
Ivy appropriate methods to defray me
cost. The only limitations upon the
power of the city of Chicago to raise
funds for public corporate purposes
are found in the provisions of the state
Constitution. which forbid the creation
Of Indebtedness In excess of > per cent.
upon the assessed valuation of property
and in certain statutes which prescribe
the amount of annual taxation shall
not exceed a certain rate.
| IT. In order to nauguratc the system
suggested. II were necessary to create
an Indebtedness against the city within
the meaning of the constitution. then.
indeed. the scheme would. at present.
he wholly impracticable. for the utmost
limit of lawful indebtedness has al
ready been reached by the city. Or. IL
to accomplish this end resort must be
had TO increased taxation upon the
property of the people. then the PROPOSE
ton ought not TO be entertained. for.
although the Legislature might author
lie an increase In the rate of taxation.
the burdens of the property owners are
already beyond what they ought TO
bear.
But II Is settled beyond dispute that
tie creation of an obligation payable
specifically out of certain fund In
process Of lawful collection, and not
otherwise. does moi create an ils!pd,ted.
ness within the meaning Of the conSri-
tuition: and. If such fund Is created
without the aid Of taxation. laws reg,,.
'htng the rate of taxation can have no
duplication to H.
Ira city were 10 engage IN enterprises
of the character suggested. II would do
so In lts private or corporate. as distin.
grished from It's governmental. oapac.
lty-a distinction well recognized liz
the courts. and practically illustrated
In the municipal operation of water
works.
A city would own and manage n
street railway precisely a. q corpora.
ton does: thnt Is. for It's corporate prof.
Its. and II. like the private corporation.
could pledge the property and Its in
come. rs far as might be necessary. to
obtain the funds necessary to pay the
cost Of Its acquisition or It's manage.
ment.
IT private corporations are abe. upon
pledge Of their exceedingly limited
property rlglFts. to obtain funds for the
construction Of street railways, surely
the city Of Chicago might. upon pledge
or the same property. with its income
which may continue, and with an abso.
lutte title which will endure for cen.
turtles. secure adequate funds at low
rates OF Interest. to pay the amount OF
any just compensation which would be-
awarded to any corporation for taking
their property for rubllc use.
Securities based upon such n pledge
with right Of any member Of the pub
lie to inspect all the details Of manage
meM OF the property. and with the rem
cdles which now exist. or which the
court would promptly devise to secur,
the application Of It's income to the pur
poses for which Il IA appropriated
would certainly be as attractive TO tn,
prudent investor rs the bonds Of prl
vatc corporations are under the wei!
known existing conditions.
Many plans have been suggested
, ana some nave been tried. to remedy
the evils which confesscdly exist In thu
present system OF furnishing the IN
cthties to which you refer: none OF
them have Been. or. In my opinion. can
. De. elrect'inl.
II - common knowledge that oui
stntufe. which makes the right OF I'll,
City Council to grant n street railway
franchise dependent upon the cOnscn
Z OF Favored property owners. has bu,
\ added to the reeking mass or cOrr,ip
I ton which attends such grants. ant
0 mas only furnished IN additional means
or subord!nating the rights OF the pub
/. lie TO the demands OF private greed.
|. The method recently adopted In sOm'
o states or selling such privileges to TIT
4 highest bidder for cash. or to the cor
;. porat!on which VIII agree to furnisl
!. w. "s. anu rheapeS' ,"ci'''ies 10 'h'
I p"'"', mas 'o''e '"e"'..ie'' 'h'r.'S' "l'