Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-09-09
loWDEN'S WORK A LESSON
FOR MAYOR AND COUNCIL
In the Light Of What He Did In Illinois
There Is No Excuse for Seeking
New Sources Of Revenue In
pbiIadeInbIa

New Sources Of Revenue In
Philadelphia
THE discouraging feature in the report o
L President Weglein, of the City Council
on his inquiries into the way other cities
| increase their revenues Is that il indicates
| that he and his associates are thinking more
! about getting more money to spend than
! about conserving the present resources OI
| the city government
This is unfortunately the habitual atti
tude of the public official. The exceptions
are so few that they stand out like n light
! house on rocky prOmontory in a dark
night.
Governor Lowden, of Illinois, was re-
garded Of presidential size this year because
he has proved to be one of the brilliant
exceptions. lie applied business methods TO
the state government and persuaded the Leg.
islature TO consolidate i25 state departments
into nine and to introduce many economies
By the establishment of a budget system
which created harmony between the gov
crnor and the Legislature which makes the
appropriations.
lie urged these reforms In the interest of
economy. But this was no novelty. Many
other reforms have been urged for the same
reason. but when they were adopted the
new plaLs cost more than the old. Governor
Lowdcn's reforms worked.
In 1916 the people of Illinois paid state
taX of $50 0O16. .69j. In 1919. the first year
in which the governors plan was in opera
ton, the state tax was $1G .4lO,6!D. re-
duction of S3,j1J,006. or II 10 per cent.
There was included in the Sl6.O00,OOO ap-
propriatcd S2.000,O0 more for schools
than in any previous year aud 81 ,OOO.O
for waterways. SubtraCting these two items
Al.
il possible to pay the ordinary running eX.
penSes of the state for a lttf more than
$i3 ,OOO. 900. whereas under the old system
1t had cost SIT, ,0O0, 900.
And yet the men in the City Hall are
looking for new sources OF revenue and are
even talking of Il tax rate next year OF
$3.4j.
They have discovered. for example, that
Los Angeles lcves u license tax on about
800 different classes of business and UCCu-
putiouS and that in other cities u tax is
levied on all vehicles, whether motor
driven or horse drawn, and that III Stl!
others half Il cent is collected on every gal.
lon of gasoline sold within the city limits.
But before they go into the business of
levying new taxes on business they should
consider the taxes already levied. Every
wholesale and retail merchant in the city,
whether he sells iron castings or silk shirt
waists is taxed. The retailer has to pay
100 for II license to do business and in
addition he has to pay one mill ON every
dollar of his gross turn over. The whole
saler has to pay $3.50 for his license and
hi, tax II one half of u mill on his total
annual sales. The city does not get the
money. it is true-it goes to the state treas
urer--but it comes out of the pockets of
the men doing business here.
The city itself is collecting Il tax on
pawubrokrrs. theatre. and other places ot
amusement. lodging honH"S and j"H"m'hI
houses, brokers, auctoncrrs, proprictors of
DlularG Lld po0D r"JnN, und OWNER" ct
draws. carts. wagons and carriages.
licenses men to sell milk aud meat and
collects the fees. and ther" is tax of sou
n wear on every trolley car operated in the
streets.
The fact that Some of these taxes are
intended to bring the persons paying them
undcr the supervision of the police bureau
or the health department and are not IN
tended to produce revenue does not serl'
ously affect the situation. These regulatory
licenses ought never to be made revenue
producing If Il milk dealers license, Tor
instance. were increased to such figure Us
TO be- considered in reckoning the city in
come the cost of milk to the poor would be
beyond reason. 1t costs too much
4 case might be made for tax on auto
n,nbilrs The license fees now paid go into
the state treasury and are used for the
maintenance of the state highways outside
of the cities. Not dollar of this revenue
is spcra in Philadelphia, although 1t IS
morally certain that local motorcar owners
pay more than quarter OF 1t.
If an average tax of s. year were levied
on al motorcurs in the city. varying ac-
cording to the weight, there is little doubt
TINT it would be gladly paid if the proceeds
we're used to keep the streets in repair. The
motorists would save more than So Il year
in reparS to their machines If they had
smooth pavPnrnts to ride over. But tax
on gasoline sales would probably defeat
itself. Its first effect would be to boom the
business of all dealers in gasoline in Cam
den and beyond the city line in Delaware
and Montgomery counties.
II is a confession of inefficiency to be
searching for new sources of revenue at this
time. in order toi keep the real estate tax
rate down. 1t il the same kind Of camoutagc
that used to be practiced when deficits were
allowed to run over from one year to
another so that we might not get the i'm
nrrssion that the city government was ex-
travugant.
There can be no deficits passed on from
year to year hereafter, for the new charter
hus ended all that sort of thing. The city
.muSt pay as it goes even if it has to curtail
its activities. But no business man ia
miliar with conditions in the City Hall can
be persuaded that there is any need of cur
failing any legitimate activities or that it is
necessary to levy new taxes on men engaged
in various occupations and professions in
order to provide revenue to meet the cur