Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-01-26
Municipalities and Taxpax.rs.

Municipalities and Taxpayers.
- Chicago's financial difficulties. which
have come to climax during the past
week and for which provisional remedy
is now In sight, may direct the attention
. Of the people Of this country to the
question of municipal business. It
should have that result If the plight Of
Chicago is recognized by the country at
large as the result of administrative in
competence characteristic in general Of
municipal management in America
The spending Of other peoples money
BY public authorities is not conducive to
care or frugality or scrupulously honest
administration. City government is, as
q rule. regarded not as business, but
as political adventure. The taxpayers,
instead of being considered as partners
IN a business, are rated as forced con-
tributors to funds manipulated by alder
. men. councilmen, mayors and chiefs of
bureaus, somewhat for the public good,
, and somewhat for private and decidedly
for political advantage.
= Chicago is simply a horrible example
Of the manner in which the relations
between the taxpayers and the munich
pal organization have been perverted
! from the ideal Of local administration.
That city has grown to its present great
size, with population of between three
and four millions, without any orderly,
: logical process of political expansion.
Expedients have been adopted to meet
new conditions from time to time. The
result is total lack Of coordination.
There are no less than twenty-five tax
ing units in the city. There are four
money-spending bodies. The budgeting
( Of expenditures and income has been
merely a gesture of compliance with
5 business principles, but without any real
attempt to maintain relationship be-
tween income and outgo.
IS In the first place, in Chicago as
practically everywhere else, the cost Of
municipal administration, honesty be-
s ing assumed for the moment, is entirely
too high. Municipal forces are too
large. Political debts are paid by public
: placements. Bureaus are enlarged to
make room for newcomers in change
OF administration from one faction or
party to another. Never does the new
coming management retrench, reduce,
cut costs and seek to eliminate waste.
In another respect the Chicago case
is characteristic of many American
municipalities. This is in the inequality
I Of assessments and therefore Of tax levies.
The heaviest burden Is borne by the
small taxpayer and the largest property
owners have had the benefit Of CON
sideration" for political reasons. Just
: now In the midst Of this really tragic
crisis, marked by great suffering on the
part Of those who are failing to receive
their salaries from the city and county
governments, there Is . bitter warfare.
spiritual rather than physical at pres
ent, between the small owners of prop
: erty and those who hold titles within
the business district, the latter having
been benefited lately by the cutting of
OF $3o0,o0o,oo0 in assessed valuations
while the ratings for tax purposes of
those in the outlying districts have been
increased. Lively demonstrations in
protest against this discrimination have
been threatened, such as torchlight
? professions and mass meetings. In the
present state Of the public mind such
manifestations might lead to disaster.
New York Is piling up tremendous
debt which will probably never be liu-
Undated. But New York's funded debt,
which in 1929 amounted to more than
billion and half dollars, is based
upon an established relationship to the
assessed valuations Of property and on
r the tax levies. A debt limit is definitely
fixed by law amounting to about nine
4 and half or ten per cent of the total
pl assessed valuations. Thus, If the law
Is observed strictly and If valuations
are reasonable and equitable, there is
always margin of security. But the
debt is increasing rapidly in Greater
New York, and Is now greater than the
national debts Of several Of the larger
countries Of Europe outside Of war OBJ
legations.