The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1920-04-20
MATTER IS
SUMMED SOME
MORE; IS CLAIM
IsGslng CsEpeFatisa Went Ply
1ansA ~ WIN Give Equivalent
1 y I've Csces.

Np01ttOn has taken the first step
locally that tends to bring about .
5iclearing mp Of the tax puzzle on
4 the III government built homes
IN Rock Island, which really
amounts TO cumming up the sit
uati0n further, according to vari-
s5ous interests in the case.
Il Commissioner Martin T. Rudgren
Ftoday received . Communication and
s'soacher covering $3,373.65 due on
!. The city taxes. Considering the
4Hfact that the United States govern
,a.,ment can not be assessed for taxa
Non on any property held in the
SSAame Of the government the city
took. steps early in 1919 to receive
vDome compensation for the city and
school district for improvements
and protection furnished by the
ycity and educational facilities
made possible by the school dis
trict.
On June rs. 1919. representatives
Of the United States Housing cor
&poration, in lieu of the fact that
the government can not be assess
ed for taxation, signed a contract
< with city oficials and those of the
school district to pay sum to each
equivalent to the amount of taxes
that would be at hand in case the
Il property we're owned by private in
dfviduals.
Various items accommodating un-
der city taxation amount to 500
per 500 valuation. and due to
some oversight this amount is all
that Is allowed by the housing cor
porati0n in its voucher However,
! there Is 81 cents on each s100 val
uation due the city for street and
bridge assessments and Commits
sioner Rudgren said that the atten-
Ttion Of the corporation will be
called to this item before final set
Stlement is made.
I. Appraised at $160,650.
81 The government homes were as
Ssessed by A. E. Nelson, township
stax assessor, at $160,650. This ap-
Epraisal was sent in to the corpora
Gtion by Commissioner Rudgren and
gin answer the city has received a
voucher for confirmation covering
the amount of $3,373.65 at the rate
of $40 per 500 valuation. The
voucher was accompanied by let
ter signed by L. X. Sherman, pres
ident of the corporation, and
Charles E. Henderson, contract su-
spervisor. which reads:
Enclosed herewith is voucher
for payment in lieu of taxes to the
city of Rock Island by the housing
corporation as per agreement OF
June rs, 1919. This voucher is
made out for valuation of $780,.
$50 at the rate of $40 per 500 val
nation.
mo interest has been added fol
penalty, as the contract calls fol
4 statement from the city, 10 days
after the appraisal has been made
and we did not receive such ap-
praisal until your letter of March
- In reply to our inquiry Of March
slS.~.
IN requesting the housing cor.
poration's attention to the item OF
81 cents additional assessment fol
street and bridge, Commissioner
Rudgren stated that the corpora
ton would be asked payment o.
$49S.02 in addition to the sum o.
$3,373.65 due on the regular cit!
tax rate Of $40 per 500 valuation
bringing the amount due the city VI
TO the sum OF $3.871.67.
Under the contract q bigger sun
10 due the school district, which ha.
an assessment of $2.5S on each $40,
valuation.
This would amount to s4,144.7'
or a total OF $S,01644 that the cor
poration has contracted to pay il
lieu Of taxes
Other Taxes Begging.
W County taxes Of 60 cents PEI
a 500 valuation, state taxes of A
cents per 500 valuation and town
ship taxes of 3 cents per 500 val
uation go begging under the condi
tons surrounding the assessment.
Of the properties built by the hous
ing corporation.
No contracts were signed by tn,
corporation to pay county, state MOI
township taxes, which amount il
all to an assessment of $1.09 PEI
500 valuation, or total o
$1,752.S9.
Puzzle in Case.
With the housing corporation
contracted to pay $4.s9 per $500 val
uation in city and school distric
assessments there is only $1.O9 pc
800 valuation in state, county an,
township assessments left as tn
bone Of contention, or the sum o
! $S,916.44 agreed to be paid in liel
OF taxation in city and school dis
trict tax and total of sl,7529
that the corporation refuses to pa
TO county. state and township. eth
er as taxes or equivalent of take
under contract.
The latter payments are figuring
In federal court proceedings. whicl
were brought by the corporation a
injunction proceedings restraining
the county. state and township take
q being collected.
The persons who have purchase.
the government built homes ar
anxiously watching every move il
the case. The property holder
claim that under their contract O
purchase they are not held liabl
for taxes due at this time.
Strange Situation.
Under contract with the city tn
corporation agrees that the regula
designated officer for ASSESSING