V,: fyxmll Hmrmttg pilrt^Bg THE GIFT OF \^J\5sjr>jr^..,AM. AzSl.oi'] S/5?.f.n. 1357 HJ2403 iTW'""'""^ * Wliiii iiiiiliiiite.»te,'fat!an,.,.* ,.r.?.ye.nue syste olin 3 1924 030 265 130 Cornell University Library The original of tiiis book is in the Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924030265130 A REPORT ON THE TAXATION & REVENUE SYSTEM of ILLINOIS PREPARED FOR THE SPECIAL TAX COMMISSION of the STATE of ILLINOIS BY JOHN A. FAIRLIE, Ph. D. Associate Professor of Political Science University of Illinois CHIEF CLERK OP THE COMMISSION ■■V"' SPECIAL TAX COMMISSION JOHN P. WILSON, President EDMUND J. JAMES, Secretary BEN F. CALDWELL A. M. CRAIG A. P. GROUT H. B. RILEY B. L. WINCHELL 1910 K'^sr\o\ ^ ILLINOIS PRINTING COMPANY DANVILLEt ILLINOIS NOTE. This report on the Taxation and Revenue System of Illinois has been based mainly on a study of the laws and the data in the pub- lished reports of the Auditor of Public Accounts, the State Board of Equalization and other State officials. In the statistical tables wiU be found somewhat comprehensive and systematic statements showing for a considerable period of time, the data published in the regular reports of the State officials for single years or biennial periods. Some information and suggestions have been received in letters, submitting complaints of the tax laws and proposing changes, which have been sent to the Special Tax Commission from State and local officials, and from various associations, corporations and individuals. But no opportunity has been offered to tmder- take an intensive examination of the methods and practices of township, county or state officers. f^ In connection with some topics, a brief comparison has been made of methods of taxation in other states and cotmtries ; while the last two chapters contain a general discussion of state taxation officials and the taxation of corporations in the United States. Urbana, Illinois, November 15, 1910. TABLE OF CONTENTS. CHAPTER I.— INTRODUCTION. Historical Sketch of Tax Legislation 1-9 Tax Laws Under the First State Constitution 1 Legislation Under the Second Constitution 3 Constitution of 1870 4 Revenue Law of 1872 7 Revenue Commission of 1 886 8 Recent Legislation 9 Outline of Property Tax Administration 9-17 Local Assessment 10 County Review and Equalization 12 The State Board of Equalization 13 Comparison of Assessed and True Valuations 14 Levy and Extension of Taxes 15 Collection of Taxes 16 Taxation of Corporations 1 7-19 Public Service Corporations 18 Business Corporations 18 Financial Corporations 18 Summary of State Revenues 19 CHAPTER II.— REAL PROPERTY VALUATIONS. Assessment Methods 20 Assessed Valuations 21 Undervaluations and Inequalities 25 Suggested Changes 27 Taxation of Increased Land Values 29-33 Increment Tax in Germany 30 New Land Taxes in Great Britain 33 CHAPTER III.— PERSONAL PROPERTY ASSESSMENTS. What is Taxable 34 Where Listed and Assessed 35 How Listed and Assessed 36 Personal Property Assessments 37 Tangible Personal Property 41 Intangible Personal Property 42-5 1 Mortgages and Credits 45 Money and Bank Deposits 48 Bonds and Stocks and Bank Shares 50 Taxation of Mortgages in other States 51-58 Double Taxation of Mortgages and Mortgaged Property 51 Taxation of Mortgages as an interest in Real Estate 53 Special Taxation of Mortgages, etc., 55 (VII) VIII TABLE OF CONTENTS CHAPTER IV.— STATE EQUALIZATION OF LOCAL ASSESSMENTS. From 1867 to 1872 59 Since 1872 60-67 Organization and Methods of the State Board of Equalization 60 Equalization of Local Assessments 62 Analysis and Criticism 63 CHAPTER v.— ASSESSMENT AND TAXATION OF RAILROADS. Local Assessments 68 State Assessments 68 Illinois Central Railroad 76 Railroad Taxes 77 CHAPTER VI.— ASSESSMENT OF CORPORATIONS BY STATE BOARD OP EQUALIZATION. Revenue Law of 1872 84 First Assessments ) 84 Decline in Assessed Valuations 85 Amendments to the Revenue Law 86 The Teachers' Federation Case 87 Assessments since 1900 88 Rules of the State Board of Equalization for determining the value of capital stock of corporations, 1873, 1900, 1901 and 1909 90 CHAPTER VII.— TAX RATES AND REVENUES. Aggregate Valuation 97 Tax Rates 98 Amount of Taxes Levied 101 State Revenue 104 State Expenditures 105 CHAPTER VIII.— SPECIAL TAXES, LICENSES AND FEES. Before 1870 106 Constitution of 1870 108 Insurance Fees and Taxes 109 Corporation Fees 112 Inheritance Tax 113 Canal Tolls and other Canal Revenues 118-128 Loans and Land Sales 119 Canal Tolls 120 Leases and Rentals 123 Examination, Inspection and Minor License Fees 128-141 Sundry Fees Paid to the Secretary of State 129 Auditor's Fees 131 Grain Inspection 131 State Board of Health 134 State Board of Dental Examiners 135 State Board of Pharmacy 136 Commercial Fertilizers 136 Mining License and Inspection Fees 137 TABLE OF CONTENTS IX State Board of Examiners of Architects 137 State Board of Examiners of Horseshoers 138 State Board of Live Stock Commissioners. 138 Employment Agencies 138 Public Accoiintants 139 Registered Nurses 139 Motor Vehicles 139 Stallion Registration Board 139 Board of Examiners of Barbers 140 Special Funds 141-144 Commission Merchants' License Fvmd 142 . State Game Protection Fund 142 State Fish Protection Fund 143 State Food Commissioner's Fund 143 CHAPTER IX.— STATE BOARDS OF EQUALIZATION AND TAXATION. Summary 145-147 State Boards of Equalization 14S State Assessing Officials 146 Tax Commissions 146 New England States 147 Middle Atlantic States 148 Southern States ISO North Central States 154 Western States 161 CHAPTER X.— TAXATION OF CORPORATIONS IN THE UNITED STATES. General Property Tax 167-170 Capital Stock 167 Franchises 168 State Assessment 170 Corporation Taxes 170-173 General Corporation Taxes 172 Special Corporation Taxes 173 Business Taxes and Licenses 173 Conclusions 174 Massachusetts 175-180 General Property Tax 175 General Corporation Tax — Capital Stock 176 Public Service Corporations 176 Banks 176 Business Corporations 177 Foreign Corporations 179 Shareholders and Bondholders 179 New York 180-183 General Property Tax — Special Franchises 180 Corporation Taxes 181-183 Organization and License Fees 181 Annual Franchise Tax 181 Additional Franchise Tax 181 X TABLE OP CONTENTS Other Franchise Taxes 182 Stock Transfer Tax 183 Foreign Corporations 183 Stockholders and Bondholders 183 New Jersey 183-187 Railroad and Canal Companies 183 Other Public Service Corporations 184 Banks and Trust Companies 18S Insurance Companies 186 Miscellaneous Corporations 186 Organization and License Fees 187 Pennsylvania 187-193 Local Taxation of Corporations 188 State Corporation Taxes 188-191 Bonus on Charters 188 Capital Stock Tax 188 Corporate Loans ■ 189 Taxes on Receipts 190 License Taxes 191 Revenue from Corporations 191 Ohio 193-194 State Assessment 193 State Taxes 193 Wisconsin 194—196 Financial Corporations 194 Public Service Corporations 19S Minnesota 196-199 Public Service Corporations 197 Banks 198 Business Corporations 198 Ore Land Assessments 199 CHAPTER XL— CONCLUSIONS. GENERAL TABLES 202-249 BIBLIOGRAPHY 250 INDEX 2S1-2.'5.S TABLES IN TEXT. 1. Estimated True Value and Assessed Valuation of Property in Illinois, 1850, 1860, 1870, 1880, 1890 and 1904 14 2. Summary of Revenues of the State of Illinois, 1906-1908 19 3. Assessed Valuation of Real Property Locally Assessed in Illinois, 1909. . 23 4. Comparison of Estimated True Value and Assessed Valuation of Real Estate and Improvements in Illinois, 1890, 1900 and 1904 25 5. Increment Tax in German Cities 32 6. Comparison of Estimated True Value and Assessed Taxable Valuation of Specified Classes of Property in Illinois, 1900 and 1904 40 7. Estimate of Outstanding Mortgages in Illinois, Cook County, and all other counties, 1870, 1880 and 1887 46 8. Estimate of Mortgages Legally Subject to Assessment compared with assessed credits of other than banker, etc., 1880 and 1887, Illinois and Cook County 47 9. Comparison of Bank Deposits and Assessed Value of Moneys of other than banker, etc., Illinois and Cook County 49 10. Mortgage Tax Revenue in New York State, 1906-1909 56 11. Changes in Local Assessments by the State Board of Equalization, 1869-1909 67 12. Comparison of Railroad Assessments and Assessments of General Prop- erty in Illinois, Wisconsin and Michigan 74 13. Railroad Earnings and Taxes in Illinois, 1885-1909 80 14. Railroad Taxes, etc., in Illinois, 1900-1908 81 15. Assessments by Illinois State Board of Equalization, 1873, 1880, 1890, 1902, 1908 and 1909 94-95 16. Rates of Property Taxation in Illinois, 1840, 1850, 1860, 1870, 1873, 1880 -1909 99 17. Property Values and Taxes in Illinois, 1850-1904 100 SPECIAL TAXES, LICENSES AND FEES. 18. Insurance License Fees 110 19. Fees and Taxes Collected by the Insurance Department, 1893-1908 .... Ill 20. Expenditure for Construction Illinois and Michigan Canal, etc 119 21. Proceeds of Sales of Canal Lands 120 22. Rates of Toll and Lockage, Illinois and Michigan Canal, 1848, 1867, 1875, 1880, 1888 122 23. General Account of the Board of Trustees of the Illinois and Michigan Canal from June 26, 1845, to April 30, 1871. Supplementary State- ment to September 30, 1871 124 24. Annual Receipts of the Board of Trustees of the Illinois and Michigan Canal, 1845-1871 125 25. Annual Disbursements of the Board of Trustees of the Illinois and Mich- igan Canal, 1845-1871 126 {Xn XII TABLES IN TEXT 26. Annual Receipts and Disbursements o£ the Canal Commissioners, 1870- 1908 127 27. Fees Collected by the Secretary of State and Paid to the State Treasurer, 1872-1908 130 28. Grain Inspection Charges at Chicago 132 29. Collections and Disbursements for Grain Inspection, 1871-1908 133 30. Examination and License Fees for Physicians and Midwives 13S 31. Examination and License Fees for Pharamacists 136 32. Receipts of the General Revenue Fund from Sundry Fees 140 33. Examination and License Fees Collected by Various State Boards 141 34. License Pees and Fines Received for Special State Funds 144 STATE BOARDS OF EQUALIZATION AND TAXING OFFICIALS. 35. Permanent State Tax Commissions 147 36. Assessed Valuation of Property in New Jersey, 1904-1909 149 37. Assessed Valuation of Property in Michigan, 189^-1907 156 38. State and Local Valuation of Property in Wisconsin, 1898-1908 157 39. Assessed Valuation of Property in Kansas, 1907-1909 161 40. State Boards of Equalization and Taxation Officials 164-166 TAXATION OF CORPORATIONS IN THE UNITED STATES. 41. Assessment of Corporation Property by State Officials 169 42. Taxation of Corporations, other than by the General Property Tax 171 43. State Revenue from Corporation Taxes in Massachusetts, New York and Pennsylvania 172 44. Massachusetts State Revenue, year ended November 30, 1907 178 45. New York State Revenue, year ended September 30, 1909 182 46. Gross Receipts and Franchise Taxes on Public Service Corporations in New Jersey, 1909 185 47. Taxes on Miscellaneous Corporations in New Jersey, 1884-1909 187 48. New Jersey State Revenue, 1905 and 1909 187 49. Pennsylvania State Revenue, year ended November 30, 1909 192 50. State Assessment and Taxation of Public Service Corporations in Wis- consin, 1905 and 1908 195 51. Wisconsin State Revenues, year ended June 30, 1908 196 52. Taxes paid by Public Service Corporations in Minnesota 197 53. Minnesota State Revenue, year ended July 31, 1908 199 GENERAL TABLES. I. II. in. IV. V. VI. VII. VIII. IX. X. XI. XII. XIII. XIV. XV. XVI. XVII. XVIII. XIX. XX. XXI. XXII. Local Assessments, State of Illinois, 1839-1910 202-203 Local Assessments, Cook County, 1839-1909 204-205 Local Assessment of Real Estate, 1867-1909, Lands 206-207 Local Assessment of Real Estate, 1867-1909, Town and City Lots 208-209 Personal Property Assessed for the Years 1861, 1873, 1888, 1898, 1899 and 1909 210-211 Assessed Valuation of Credits and of Moneys of Other than Bankers, etc., 1873-1909,— Illinois and Cook Cotmty 212-213 Assessed Valuation by Local Assessors of Bonds and Stocks and Bank Shares, 1873-1909,— Illinois and Cook County 214-215 Equalization of Local Assessments by State Board of Equalization, 1867-1910, State of Illinois 216 Equalization of Local Assessments by State Board of Equalization, 1867-1909, Cook County 217 Railroad Assessments in Illinois, 1856-1910 218 Gross Receipts of the Illinois Central Railroad and Amounts paid into the State Treasury, 1855-1910 219 Taxation of Railways in the United States, year ending June 30, 1908 220-221 Mileage, Earnings, Operating Expenses and Taxes paid by Specified Railroads in Illinois, year ending June 30, 1908 222 Equalized Assessed Valuation, Gross Earnings and Taxes Charged to Steam Railroads in Illinois, for the year ending, June 30, 1909 223 Capital Stock Assessments of Illinois corporations other than railroad companies by Illinois State Board of Equalization, 1873-1910 . . 224 Equalized Assessed Valuation of Taxable Property in Illinois, 1873-1910 225 Equalized Assessed Valuation of Taxable Property in Cook County, 111., 1873-1909 226 Percentages of Total Equalized Assessments of Taxable Property Assessed on Real and Personal Property, 1873-1909 227 Percentage paid by each county of State Tax collected for the years 1860, 1865, 1870-1908 228-237 State, County, City, Town, School and other Local Taxes levied in Illinois, 1860, 1870, 1872-1909 238 State, County, City, Town, School and other Local Taxes levied in Cook County, Illinois, 1872-1909 239 Aggregate amount of State Taxes charged, the amount of abate- ments, commissions, etc., deducted, the net amount, the amount paid to the State Treasurer and the amount impaid, 1839-1908 . 240-242 (XIII) XIV GENERAL TABLES AND DIAGRAMS XXIII. General Revenue, State of Illinois, 1818-1908 243-244 XXIV. Total Receipts of the State Treasury — Revenue and Special Funds, 1818-1908 245-247 XXV. State Expenditures of Illinois — Warrants Drawn on the State Treasury, classified — 1870-1908 248-249 DIAGRAMS. A. Percentage of Equalized Assessment on Real Property, 1873-1909 . . 24 B. Assessed Valuation of Railroad Property in Illinois, 1873 — 1909 73 C. Percentage of Railroad Taxes in Illinois to Gross Earnings, Net Earn- ings and Total Net Revenue, 1885-1908 79 D. Capital Stock Assessments in Illinois, 1873-1909 89 E. Total Equalized Assessed Valuation of Property in Illinois, 1873-1909 . . 96 F. State and Local Taxes in Illinois, 1872-1909 103 TABLE OF CASES Anderson v. C. B. & Q. R. R. Co., 117 111. 26 (1886) 70 Billings V. Illinois, 188 U. S. 97 (1903) ir6 Burke v. Sniveley, at. el., 208 111. 328 (1904) 124 C. & A. R. R. Co. V. The People, ex rel., 98 111. 350 (1881) 59 Chicago & Northwestern Railway v. State, 128 Wis., 553-108 N. W. 557 196 C. R. I. & P. R. R. Co. V. The People, 4 111. App. 468 (1879) 69 Chicago Union Traction Co. v. State Board of Equalization, 114 Fed. Rep. 557 (1902) 88 Commonwealth v. N. Y. P. & O. R. R. Co., 188 Pa. 169 (Nypano Case), (1898) 189 Consolidated Coal Co. v. Miller, et al. 236 111. 149 (Oct. 26, 1908) 86 Cook County v. C. B. & Q. R. R. Co., 35 111. 460 (1864) 70 Huck, et al V. C. & A. R. R. Co., 86 111. 352 (1877) 70 Kennedy v. St. L., V. & T. H. R. R. Co., 62 111. 395 (1902) 70 Knopf V. People, 185 111. 21 (1900) 9 Knopf V. Lake St. El. R. R. Co., 197 111. 212 (1902) 70 Kochersperger v. Drake, 167 111. 122 (1897) 1 1 5 Lasher v. People, 183 111. 226 (1899) 142 Lehigh Coal and Navigation Co. v. Northampton County, 8 Watts & Serg. 344 (1845) 188 Loan and Homestead Association v. Keith, 153 111. 609 (1894) 87 Magotm V. Illinois Bank, 170 U. S. 283 (1897) 115 People ex rel Chicago v. State Board of Equalization, 205 111. 296 (1903) .... 75 People V. Harper, 91 111., 357 (1897) 134 People V. Thurber, 13 111. 354 (1852) 107 Porter V. Rockford, R. I. & S. L. R. R. Co., 76 111. 563 (1873) 84 Price V. People, 193 111. 114 (1901) 138 State Board of Equalization v. People, 191 111. 529 (1901) 87, 92 State of Illinois v. Illinois Central R. R. Co. (Oct. 28th, 1910) 77 State Tax on Foreign Held Bonds, 15 Wallace, 300 (1872) 190 (XV) CHAPTER I • INTRODUCTION The principal basis of taxation in Illinois, for state, county and municipal purposes, is a general property tax. This is prescribed by the state constitution, which also authorizes the taxation of certain corporations, franchises and privileges. A striking charac- teristic of the general property tax in jlllinois is the legal recognition of undervaluations of property for assessment, — ^the " taxable value" has been defined as one-fifth, and now as one-third of the "fair cash value." This has a marked effect on the significance of tax rates and debt limitations. Corporations in general are subject to taxation in the same man- ner as individuals; but railroad property is assessed by the State Board of Equalization; and Illinois corporations (with important exceptions) are also taxed on an assessment, by the same board, of their capital stock on the excess value above the assessed value of their tangible property. In addition to the general property tax, the state receives considerable revenue from a percentage of the gross earnings of the Illinois Central Railroad. There is also a tax on gross premiums of life insurance companies, an inheritance tax, and some revenue from fees and miscellaneous sources. Local districts have also some sources of revenue besides the general property tax. In cotmties there are fees and some licenses. In cities there are various business licenses, notably the liquor license; also special assessments for local improvements and some commercial revenue from water works, etc. There is also a poll tax for road district purposes only. The present situation has developed in a desultory way, with little effort at any correlated. system of taxation and revenue. HISTORICAL SKETCH OF TAX LEGISLATION. Tax Laws under the First State Constitution. Passing over the early history of taxation in Illinois, it may be noted that as part of the Northwest Territory and the territory of Indiana, the TUinois settlements were subject to the tax laws of I INTRODUCTION these territories; and that the tax laws of the territory of Illinois naturally followed the methods employed in the earlier settled regions to the eastward. The first State Constitution of Illinois, adopted in 1818, definitely provided for a general property tax. Section 20, of the Bill of Rights (Article VIII) reads: That the mode of levying a tax shall be by valuation, so that every person shall pay a tax in proportion to the value of the property he or she has in his or her possession. During the period of the first constitution, the most important financial legislation in Illinois had to do with the State Bank and loans for the construction of internal improvements, to be paid from land grants. But a number of statutes were also passed relating to the ordinary revenue, which mark the early stages in the develop- ment of the system of assessment and collection. The most impor- tant of these laws appear to be an Act of March 1, 1827 and Chapter 89 of the Revised Statutes of 1845. The Act of 1827 provided for the classification of lands into three classes, to be valued and taxed at rates named in the Act, the tax rate being one-half of one per cent of the assumed value of the land. The county commissioners' court was also authorized to levy a tax, not exceeding one-half per cent, upon the following descriptions of property, viz. on town lots (if not taxed by trustees of the town), on slaves and indentured servants of color, on pleasure carriages, on distilleries, on stock in trade, on horses, mares, mules, asses and neat cattle, above three years of age, on watches, and such other property as they shall order and direct. Chapter 89, of the Revised Statutes of 1845, gives more detailed provisions for the assessment and collection of taxes. This chapter contains 113 sections, covering 18 printed pages. Property is classified into the two main divisions of "real property" and "personal property." Real property is to include all lands and lots and buildings thereon; personal property is to include household furniture, goods and chattels, ships and vessels, moneys on hand and moneys loaned, public stocks, stocks in turnpikes, ■ bridges, insurance companies and moneyed corporations, also all commissions and every species of property not included in the description of real estate. Provisions are made for listing and assessing the various items of property by the county treasurer, acting ex-officio as assessor, the county commissioners' court having power to reduce assessments on application. Further sections provide for the collection of taxes, and the sale of property for taxes. INTRODUCTION ^ Legislation under the Second State Constitution. In the second state constitution, adopted in 1848, there is a separate article of six sections on the subject of the Revenue The principal provisions are as f ollo^A•s : Section 1. The general assembly may, whenever they shall deem it necessary, cause to be collected from all able-bodied free white male inhabitants of this State, over the age of twenty-one years and under the age of sixty years, who are entitled to the right of sufJErage, a capitation tax of not less than Mty cents nor more than one dollar each. Sec. 2. The general assembly shall provide for levying a tax by valuation, so that every person and corporation shall pay a tax in proportion to the yalue of his or her property ; such value to be ascertained by some person or persons to be elected or appointed in such manner as the general assembly shall direct, and not otherwise; but the general assembly shall have power to tax pedlers, auctioneers, brokers, hawkers, merchants, commission merchants, show-raen, jugglers, inn-keepers, grocery-keepers, toll bridges and ferries, and persons using and exercising franchises and privileges in such manner as they shall from time to time direct. Sec. 3. The property of the State and counties, both real and personal, and such other property as the general assembly may deem necessary for school, religious and charitable purposes, may be exempted from taxation. Sec. 4. [Prescribed the conditions for a deed to the purchaser of land or town lots at any sale for taxes.] Sec. 5. The corporate authorities of counties, townships, school districts, cities, towns and villages may be vested with power to assess and collect taxes for corporate purposes; such taxes to be uniform in respect to persons and property within the jurisdiction of the body imposing the same. And the general assembly shall require that all the property within the limits of municipal corporations belonging to individuals shall be taxed for the payment of debts contracted under authority of law. Sec. 6. The specification of the objects and subjects of taxa- tion shall not deprive the general assembly of the power to require other objects or subjects to be taxed in such manner as may be consistent with the principles of taxation fixed in this constitution. Thus far, local assessments of property in Illinois had been made by county officials. But, following the adoption of the Constitution of 1848, the Act of 1851, to provide for township organization, authorized a more decentralized system, by creating the office of town assessor and establishing the system of township assess- ment of property for taxation in all counties which established the 4 INTRODUCTION township system of local government. This was followed in 1853 by an Act for the assessment of property, and in 1855 by an Act to amend the assessment and revenue laws. These Acts prescribed in further detail the rules for valuing property and the method of listing various classes of property . Personal property was to be listed under fourteen separate items; and railroad property was to be separately scheduled, and to be returned to the county clerk, instead of to the township assessor, in counties under township organization. In 185 1 , there was also passed the Act providing for the construc- tion of the Illinois Central Railroad, and for the payment of a per- centage of its gross earnings for its grants and privileges and in lieu of taxation. An important change, marking the first step towards any state administrative supervision of local assessments, was made in 1867 by the act establishing a state board for the equalization of assess- ments as between counties. This board consisted of one member from each senatorial district, the first members being appointed by the Governor. After the first year, the members were to be elected once in four years. The Constitution of 1870. In the Constitution of 1870 a number of changes were made in the Article on Revenue, both by addition and omission; and the Article contained twelve sections and was considerably longer than that in the Constitution of 1848. The principal changes were: (a) the omission of the section authorizing a capitation tax; (b) the addition to the list of objects and subjects of special taxation, of liquor dealers, insurance, telegraph and express interests or business, venders of patents and corporations owning or using franchises or privileges, with the restriction that all such special taxes should be imposed by general law, uniform as to the class upon which it operates ; (c) some additions to the classes of property subject to exemption, with the prpviso that exemptions shall be only by general law; (d) the substitution of general regulations in regard to the sale of real estate for non-payment of taxes and the right of redemption, in place of the detailed provisions in the former constitution; (e) authorizing special assessments for local im- provements in cities, towns and villages; and (/) establishing limits to the rate of county taxation and local indebtedness. Provisions in other articles imposed restrictions on state debt and appropria- tions for the state capitol. INTRODUCTION 5 An amendment to this article of the constitution, adopted in 1890, authorized the City of Chicago to issue $5,000,000 in bonds on account of the World's Columbian Exposition. Article IX of the State Constitution, on Revenue, now reads as follows : Section 1. The general assembly shall pro\-ide such revenue as may be needful by levying a tax, by valuation, so that every person and corporation shall pay a tax in proportion to the value of his, her or its property — such value to be ascertained by some person or persons to be elected or appointed in such manner as the general assembly shall direct, and not otherwise; but the general assembly shall have power to tax peddlers, auctioneers, brokers, hawkers, merchants, commission merchants, showmen, jugglers, inn-keepers, grocery-keepers, liquor dealers, toll-bridges, ferries, insurance, telegraph and express interests or business, venders of patents and persons or corporations owning or using franchises and privileges, in such manner as it shall from time to time direct by general law, uniform as to the class upon which it operates. Sec. 2. The specification of the objects and subjects^ of taxa- tion shall not deprive the general assembly of the power to require other subjects or objects to be taxed, in such manner as may be consistent with the principles of taxation fixed in this constitution. Sec. 3. The property of the State, counties, and other muni- cipal corporations, both real and personal, and such other property as may be used exclusively for agricultural and horticultural societies, for school, religious, cemeten- and charitable purposes, may be exempted from taxation; but such exemption shall be onl)r by general law. In the assessment of real estate incumbered by public easement, any depreciation occasioned by such easement may be deducted in the valuation of such property. Sec. 4. The general assembly shall provide, in all cases where it may be necessary to sell real estate for the non-payment of taxes or special assessments, for State, county, municipal or other purposes, that a return of such unpaid taxes or assessments shall be made to some general officer of the county having authorit}- to receive State and county taxes ; and there shall be no sale of said property for any of said taxes or assessments but by said officer, upon the order or judgment of some court of record. Sec. 5 . The right of redemption from all' sales of real . estate for the non-payment of taxes or special assessments of any charac- ter whatever, shall exist in favor of owners and persons interested in such real estate for a period of not less than two years from such sales thereof. And the general assembly shall provide, by law, for reasonable notice to be given to the owners or parties interes- ted, by publication or otherwise, of the fact of the sale of the property for such taxes or assessments, and when the time of INTRODUCTION redemption shall expire: Provided, that occupants shall in all cases be served with personal notice before the time of redemption expires. Sec. 6. The general assembly have no power to release or discharge any county, city, township, town or district whatever, or the inhabitants thereof, or the property therein, from their or its proportionate share of taxes to be levied for State purpo.ses, nor shall commutation for such taxes be authorized in any form whatsoever. Sec. 7. All taxes levied for State purposes shall be paid into the State treasury. Sec. 8. County authorities shall never assess taxes the aggre- gate of which shall exceed seventy-five cents per one hundred dollars valuation except for the payment of indebtedness existing at the adoption of this constitution, unless authorized by a vote of the people of the county. Sec. 9. The general assembly may vest the corporate authorities of cities, towns and villages with power to make local improvements by special assessment or by special taxation of contiguous property or otherwise. For all other corporate pur- poses, all municipal corporations may be vested with authority to assess and collect taxes;, but such taxes shall be uniform in respect to persons and property within the jurisdiction of the bod}' imposing the same. Sec. 10. The general assembly shall not impose taxes upon m.unicipal corporations, or the inhabitants or property thereof, for corporate purposes, but shall require that all the taxable pro- perty within the limits of municipal corporations shall be taxed for the payment of debts contracted under authority of law, such taxes to be uniform in respect to persons and property within the jurisdiction of the body imposing the same. Private property shall not be liable to be taken or sold for the payment of the cor- porate debts of a municipal corporation. Sec. 11. No person who is in default, as collector or custodian of money or property belonging to a municipal corporation, shall be eligible to any office in or under such corporation. The fees, salarjf or compensation of no municipal officer who is elected or appointed for a definite term of office shall be increased or dimin- ished during such term. Sec. 12. No county, city, township, school district or other municipal corporation shall be allowed to become indebted in any manner or for any purpose to an amount, including existing indebtedness, in the aggregate exceeding five per centum on the value of the taxable property therein, to be ascertained by the last assessment for State and county taxes previous to the incurring of such indebtedness. Any county, city, school district or other municipal corporation incurring any indebtedness as INTRODUCTION 7 aforesaid, shall before, or at the time of doing so, provide for the collection of a direct annual tax sufficient to pay the interest on such debt as it falls due, and also to pay and discharge the principal thereof within twenty years from the time of contracting the same. This section shall not be construed to prevent any county, city, township, school district or other municipal corporation, from issuing their bonds in compliance with any vote of the people which may have been had prior to the adoption of this constitution in pursuance of any law providing therefor. Sec. 13. The corporate authorities of the city of Chicago are hereby authorized to issue interest-bearing bonds of said city to an amount not exceeding five million dollars, at a rate of interest not to exceed five per centum per annum, the principal payable within thirty years from the date of their issue, and the proceeds thereof shall be paid to the treasurer of the World's Columbian Exposition, and used and disbursed by him under the direction and control of the directors, in aid of the World's Columbian Exposition, to be held in the city of Chicago, in pursuance of an Act of Congress of the United States. Provided, that if at an election for the adoption of this amend- ment to the constitution a majority of the votes cast within the limits of the city of Chicago shall be against its adoption, then no bonds shall be issued under this amendment. And said corporate authorities shall be repaid as large a proportionate amount of the aid given by them as is repaid to the stockholders on the sums subscribed and paid by them, and the money so received shall be used in the redemption of the bonds issued as aforesaid, provided that said authorities may take in whole or in part of the sum coming to them any permanent im- provements placed on land held or controlled by them. And, provided further, that no such indebtedness so created shall in any part thereof be paid by the State, or from any State revenue, tax or fund, but the same shall be paid by the said city of Chicago alone. '^ Revenue Law of 1872. After the adoption of the Constitution of 1870, a new revenue law was enacted in 1872, which still forms the basis of the present system of assessment and collection. This Act further elaborated the rules for listing and valuing property, increasing the number of items of personal property required to be scheduled; it provided for the review and equalization of original assessments by the county board; and it reorganized the State Board of Equalization, and added to its authority that of assessing railroad property and the capital stock of Illinois corporations. o Fifth Amendment to the Constitution of 1870, proposed and ratified in 1890. INTRODUCTION Revenue Commission of 1886. In 1885 a commission was appointed by Governor R. J. Oglesby, under joint resolution of the 34th General Assembly, "to amend and revise the revenue law of the State of Illinois, and to propose and frame a revenue code, which shall be just to all classes of property and in keeping with our complicated system of business and indi- vidual and corporate avocations." This commission reported (March 1, 1886) the following as the principal defects in the opera- tion of the revenue system: First — The gross inequality in the assessments of different pieces of property of the same kind owned by different individuals, and of different kinds of property. Secondly — The arbitrary and unjust operation upon individual assessments of the system of equalization between co\mties by the State Board. Thirdly — The low rate of assessments. Fourthly — The high rate of taxation permitted by law. Fifthly — The inadequacy of existing methods to discover and estimate valuable interests which have grown out of the refine- ments of modem commerce. Sixthly — The want of a central and efficient supervision of the administration of the revenue laws throughout the state. This Commission submitted the draft of a new revenue law in- cluding the following changes recommended : That the office of township assessor be abolished, and a county assessor substituted, to be elected for a term of four years, with a board of review in each county. That the capital stock tax be limited to corporations of a quasi public character, and to be assessed by the county assessor. To do away with the requirement of an oath in connection with personal property schedules and substitute a substantial penalty for a false schedule. The divorcement of State revenue from local taxation. Taxes on railroads, telegraph, telephone, express and insurance com- panies to be paid directly to the State Treasury and applied to State purposes. The appointment by the Governor, of a State Board of Tax Commissioners, to consist of six persons, not more than three from any one political party, and the Auditor of State as an ex officio member. No action appears to have been taken to accept the report and recommendations of this Commission. In 1902 the report was reprinted. INTRODUCTION 9 Recent Legislation. Within the past fifteen years, however, a number of Acts have been passed by the general assembly affecting the revenue laws. These have made changes of some importance ; but have been in the nature of detached amendments rather than as the result of any effort at a systematic revision of the revenue legislation of the state. In 1895 there was passed an Act to tax gifts, legacies and inherit- ances in certain cases, known as the inheritance tax. This act was amended in 1909. An Act of 1898 made important changes in the assessment of property, especially in Cook County. It did away with the town assessors in the city of Chicago; and provided a board of asses- sors and a board of review for Cook County, each to be elected. It recognized the practice of undervaluation in the assessment of property by providing that the taxable value should be one-fifth of the "full- value." It gave the supervisor of assessments of the county the same authority as the town assessor to assess, and to make changes or alterations in the assessment of property. It provided for the publication of assessments. It reorganized and increased the powers of the county boards of review. The Act of 1898 also provided for a limitation on the aggregate debt and tax rates in any county over 125,000 population; but this was held to be unconstitutional.'^ An Act of 1901 established a general limitation on tax rates and provided that when the aggre- gate tax rate exceeded five per cent the county clerk should reduce the rates of the various taxing districts. Lastly, an Act of 1909 provides that the taxable value of prop- erty shall be increased from one-fifth to one-third of the ' 'full-value ;" and also provides for a corresponding reduction in the aggregate tax rates, reductions to be made when the aggregate exceeds three per cent. OUTLINE OF PROPERTY TAX ADMINISTRATION. In the administration of the general property tax there are three principal steps : First there must be an assessment or valuation of the property subject to taxation ; secondly, the tax rates ordered by various taxing authorities must be calculated and levied against each property owner, and thirdly, the taxes so levied are collected. Of these steps, the assessment or valuation of property is at once the most difficult, subject to the most detailed regulations, and also the most criticised as inequitable and unjust. There are now two a Knapp vs. People, 185 111., 21. 10 INTRODUCTION main methods of assessment, that by local assessors and that by the State Board of Equalization; while the local assessments are subject to review and equalization by county officials, and the county valuations in turn are subject to equalization by the state board. Local Assessment. The work of assessment by local assessors is affected by the dif- ferent systems of local administration in Illinois. In counties under township organization, except Cook County, the original assessment is made by town officers, subject to review by county officials. In counties not under township organization, the local assessment is made by county officials. In Cook County, under the law of 1898, there are special arrangements. In counties under township organization, an assessor is elected in each town who receives a salary, determined by the town board of auditors, within limits named in the law; and who has the power to appoint deputy assessors when necessary. Under the act of 1898, the county treasurer, in counties under 125,000 population, acts as supervisor of assessments. It is his duty to assemble the assessors and deputy assessors in each county, before the" first of April, for consultation and to give them such instructions as shall tend to make the assessment uniform in the county. Any assessor who wilfully refuses or neglects to follow the directions of the supervisor of assessments (which are in accordance with law) is, upon conviction, subject to fine or imprisonment. In counties not tmder township organization, the county treasurer acts ex o-fficio as county assessor; and is authorized to appoint deputy assessors. Until 1898 the original assessment of property in Cook County was made by town assessors, the city of Chicago forming seven towns. By the act of 1898 the town assessors in Chicago were abolished; and there was established a board of five assessors, to be elected for terms of six years, one or two members being elected every second year. This board appoints deputy assessors; and for each town not lying wholly within a city, a special deputy as- sessor is elected by the town. By the revenue law before 1898, assessors were required to take the general oath required of all public officers by the state constitu- tion. The Act of 1898 prescribed a special and more specific oath for all assessors, deputy assessors and supervisors of assessment as follows : INTRODUCTION 11 I do solemnly swear (or affirm) that I will support the Consti- tution of the United States and the Constitution of the State of Illinois, and that I will faithfully discharge all the duties of the office of assessor, deputy assessor, or supervisor of assessments (as the case may be), to the best of my ability ; that I will without fear or favor appraise all the property in said county at its fair cash value, said value to be ascertained at what the property would bring at a voluntary sale in the due course of business and trade; and that I will assess said property when so appraised at one-fifth [since 1909 one-third] of its said cash value; that I will cause every person, company or corporation assessed to sign, his, her or its assessment schedule, and I will administer to each and every person so signing said assessment schedule the oath thereon, and return said schedule so signed and file the same with the county clerk. The assessor is also required to give a bond to diligently, faith- fully and impartially perform the duties enjoined by law. Any assessor who shall refuse or knowingly neglect to perform any duty required by law, or who connives at any evasion of the provisions of the Act, is, upon conviction, subject to fine or imprisonment. Assessments are made as of the first day of April in each year ; and the original local assessments are required to be made between that date and the first day of June. Considerable criticism has been presented to the Special Tax Com- mission of the local assessing officials, especially under the township system. Objection is made to the election of the town assessor so long (about a year) before he makes an assessment; and to the custom (in some parts of the state at least) of electing a new assessor just before the quadrennial revaluation of real estate. There is also criticism of the system of electing assessors by towns, which places these officials tinder the pressure of local influences to make low valuations. One suggestion is made that no assessor should assess the town in which he lives ; while the appointment of the local assessors by the county supervisor of assessments is also proposed. The Revenue Commission of 1886 recommended that township assessors be abolished and that the work of local assess- ment be placed in charge of a county assessor. In Cook County, the present plan of a county board of assessors appears to secure -better results than the former system of town assessment. It is urged, however, that in counties of this size assessing officials should not be permitted to engage in any other business or occupation. The provision of the law whereby the county treasurer acts as supen/isor of assessments appears to have brought some improve- 12 INTRODUCTION ment; and suggestions are made for a more active supervision of town assessors by the county supervisor, as well as the more radical proposal to have all the local assessors appointed by the county supervisor. County Review and Equalization. Previous to 1898 town assessments were subject to review b}^ a town board of review, consisting of the town supervisor, assessor and clerk. But by the Act of 1898, this town board was abolished; and increased powers over assessments given to county officials. In each county there is provided a coiuity board of review. In counties not under township organization, this consists of the board of county commissioners. In counties under township organiza- tion of less than 125,000 inhabitants, it consists of the chairman of the county board and two citizens appointed each year by the county judge, one from each of the two principal political parties. In Cook County a board of review of three members is elected, one member each second year for a terin of six years. The powers and duties of the county boards of review are as follows : First: To assess all property subject to assessment which has not been assessed by the assessors. Second : On complaint in writing that any property described in such complaint is incorrectly assessed, to review the assessment and correct the same as shall appear to be just. Third: To increase or reduce the entire assessment of either real or personal property, or of any class included therein, if in their opinion the assessment has not been made upon the proper basis, or equalize the assessment of real or personal property by increasing or reducing the am- ount thereof in any township, on notice to property owners and the board of assessors. Fourth : To hear and determine the application of any person who is assessed on property claimed to be exempt from taxation. The county board of review meets on the third Monday in June of each year; and the final adjournment is to be on or before the 7th day of September. When the board of review has completed its work, the assess- ment books of personal property and one set of assessment books of real property are delivered to the county clerk, who makes out and transmits to the Auditor of State an abstract of the assessment. Criticism is made of the organization of the county board of review, in counties under township organization, on the ground that INTRODUCTION 13 the yearly appointments promote frequent changes in membership and prevent the board from becoming to any important degree an expert body. Terms of three and five years have been suggested; and another suggestion is made that two members should be non- residents of the county. It may further be noted that there is an unnecessary opportunity for conflict in the county supervision of local assessments between the county treasurer, as supervisor of assessments, the county clerk, and the county board of review. If the county treasurer should be made a member of the county board of review (except in Cook County) the administrative machinery would be somewhat simpli- fied, and the original assessment would be more likely to be made in accordance with the views of the board of review. The State Board of Equalization. The last step in determining the taxable valuation of property assessed by local assessors is the equalization of county valuations by the State Board of Equalization, which board also makes the original and final valuation of railroad track and rolling stock of railroads and the capital stock of Illinois corporations. As now organized, this board, is composed of the Auditor of Public Accounts and one member elected from each of the twenty- five congressional districts for a term of four years. The board meets in August of each year and continues in session about three months. Equalization of county valuations is based on the abstracts of the assessments filed by the county clerk with the Auditor of Public Accounts. The total assessment of any county may be increased or decreased under each of the four main classes of lands, town and city lots, personal property and railroad and telegraph property; but the total assessed value of all the property in the state may not be increased or decreased more than ten per cent. In determining the value of railroad property, the state Board of Equalization assesses separately the main track (including right of way and improvements thereon) , second main track, side or turnout track, and rolling stock ; and the value so determined is then appor- tioned to the various counties and taxing districts. The assessment of capital stock is based on the excess of the assessed value of the stock and bonds over the equalized value of the property of such corporations otherwise assessed. The efficiency and success of the State Board of Equalization will be considered later. 14 INTRODUCTION Comparisons of Assessed and True Valuations. It has long been recognized that in Illinois the valuation placed upon property for taxation has "been only a fraction of its actual market value, and indeed a diminishing fraction and a smaller frac- tion of true value than in almost any other state. This long con- tinued practice was finally given legal recognition in the act of 1898, which provided that the taxable value should be one-fifth of the fair cash value; and this legal recognition of undervaluation is con- tinued in the present law, which provides that the taxable value shall be one-third of the fair cash value. In practice, however, it appears that the assessed valuations are much below the proportion recognized in the law. In later chapters of this report, some analysis will be made of the extent of the undervaluation in the assessment of certain classes of property. At this point, it will be sufficient to call attention to the figures for the aggregate of property in the State. The Special Tax Commission has made no detailed investigation for this purpose ; but the estimates of the true value of property made by the United States census are probably sufficient for a rough comparison with the assessed valuations. It should be noted that the census esti- mates are based only on tangible property; and include nothing additional for stocks, bonds or credits. Table 1. ESTIMATED TRUE VALUE AND ASSESSED VALUATION OF PROPERTY IN ILLINOIS, 1850, 1860, 1870, 1880, 1890, 1900 AND 1904. [U. S. Census Reports on Wealth, Debt and Taxation.] Year Estimated True Value Assessed Valuation of Total Exempt Taxable Property" 1850 .? 156,265,006 871,860,282 2,121,680,579 $ 119 868 336 1860 367'227'742 1870 480 664 058 1880 $3,210,000,000 5,066,751,719 6,976.476,400 8,816,556,191 786 616 394 1890 1900 1904 186,001,480 256,860,760 282,546,844 4,880,750,239 6,719,615,640 8,534,009,347 808,892,782 809,733,405 1,080,471,992 b a Reports of Auditor of Public Accounts. b Corrected figures. From the above figures, it appears that in 1860, the assessed valuation of taxable property in Illinois was about three-eights of the census estimate of the true value of tangible property. By 1870, INTRODUCTION 15 the assessed valuation was less than a fourth of the census estimates of true value, and in 1880, the ratio was about the same. In 1890 the assessed valuation had further dropped to a sixth of the esti- mated true value; and by 1900 the taxable value (now supposed to be one-fifth of the fair cash value) was less than an eighth of the estimated true value. In 1904 the ratio was about the same as in 1900. It is sometimes urged that it makes little difference whether property is assessed at full value or at a precentage of that value. But when once a departure is made from the standard of full value, it appears to be impossible for assessors to adhere to any definite standard; and the inevitable result of undervaluations is not only an unnecessary increase in the nominal tax rate, but also marked variations in the standards of valuation between different classes of property, different classes of persons, different pieces of property and different individuals ; and a pronounced violation of the consti- tutional requirement that taxation shall be in proportion to the value of property. Levy and Extension of Taxes. The rates of taxes to be levied and collected on the basis of the valuation as finally assessed and equalized are determined by various authorities. For state taxes, the rate required to meet the amount voted by the general assembly is annually determined by the Governor, Auditor and Treasurer, on the completion of the assess- ment and equalization of property. A state school tax is also pro- vided for by the school laws. The Auditor computes and certifies to the county clerks the separate rates per cent to produce the net amount of State taxes authorized to be levied. The several county boards are required to determine the amounts of taxes to be raised for county purposes, annually, at the September meeting; but the aggregate amount must not exceed 75 cents on the one hundred dollars valuation of property, except for payment of indebtedness existing at the adoption of the present State Constitution, unless authorized by a vote of the people of the county. The proper authorities of towns, townships, districts and incorporated cities, towns and villages are required to certify to th6 county clerk, an- nually before the second Tuesday in August the amounts to be raised by taxation; and the county clerk estimates and determines the tax rates that will produce the amounts as authorized by law. On the basis of equalized and assessed valuations as determined by the State Board of Equalization, and the tax rates as determined 16 INTRODUCTION by the various taxing authorities, it is the duty of the county clerk to prepare the collector's books, extending the valuations and the various kinds of taxes against each person and each piece of land. But under the present law the county clerk has to do more than ac- cept and apply the rates and amounts presented to him by the several taxing authorities. If the aggregate of the taxes called for will require a tax rate, in any taxing district, above the maximum fixed by law, the county clerk must reduce the rates proportionately so as to bring the highest rate within the maximum limits. The process of calculating these reductions is distinctly complicated, since taxes for certain purposes are permitted above the ordinary maximum, and in making reductions various complex rules, laid down in the statute, must be observed by the county clerk. Before 1909 the ordinary maximum tax rate was five per cent; but the county average rate generally ranged from a minimum of about three per cent to over seven per cent; while in 1905, the average rate in Hamilton County was 9.92 per cent on the assessed valuation. The State average tax rate from 1900 to 1908 ranged from 4.94 per cent to 6.20 per cent, on a taxable value supposed to be one-fifth of the full value. In 1909, with the increase in the legal basis of assessments to one-third of the full value, the ordinary maximurri tax rate was re- duced to three per cent ; and the State average rate was 3.85 per cent. The law regulating the maximum aggregate of tax rates and pro- viding for reducing rates when necessary is highly complicated ; and there has been considerable criticism of this law. Owing to its com- plexity, it appears that invalid tax levies are at times extended on the books, and the collection of these taxes restrained by judicial proceedings. It has been suggested that each county should be authorized to employ a competent attorney as tax commissioner to see that the tax levies are made as provided by law. Another proposal is that all taxes should be levied on an order from the county judge on application from the taxing authorities and after a hearing, or that there should be a county board of taxation to pass on the total levy. Collection of Taxes. The method of collecting taxes and for recovering delinquent taxes, and the settlements between the collectors and taxing author- ities are regulated in detail by statute. In counties under township organization, taxes are collected by town collectors, the county treasurer being county collector. In counties not under township INTRODUCTION 17 organization, the sheriff is both county collector and district col- lector. Collections are made by the town or district collector; and the proper amounts paid over to the authorities of incorporated towns, cities and villages, road and school districts, and (for county and state taxes) to the county collector, every thirty days. The county clerk is required to turn over the collector's books on or before the 21st day of December; and the town and district collec- tors are required to return the tax books and make final settlement for the amount of taxes placed in their hands for collection, on or before the 10th day of March (or some day within twenty days thereafter fixed by the county collector) . The county collector is to make settlement with the county board on the third Monday in June ; and final settlement of his accounts for State taxes with the Auditor on the first day of July, — ^fifteen months after the work of assessment is begun. Some criticism has been made to the Special Tax Commission of the system of township collection of taxes ; and it has been proposed that the office of town collector be abolished, and that the county treasurer shall act as collector. TAXATION OF CORPORATIONS. Corporations in Illinois are for the most part taxed under the general property tax; but with some differences in the method of assessment. Foreign insurance companies, and the Illinois Central Railroad are, however, subject to peculiar provisions, under which they pay a percentage on gross earnings. With important exceptions, corporations organized under the laws of the state, are assessed as follows: First, by the local assessors on their tangible real and personal property ; second, by the State Board of Equalization on the excess in value of the capital stock, including the franchise, over that of their tangible property, and the excess so assessed is certified to the local assessors where the company is located. Exceptions to these methods of assessment include railroads, banks and insurance companies (assessed as described below). The revenue act also excepts from the capital stock assessment various classes of corporations (for manufacturing and mercantile purposes, for the mining and sale of coal, for printing or publishing newspapers, or for improving and breeding of stock) ; and while the Attorney General has held- (Report 1906, p. 395), and also the Supreme Court, that such exceptions are unconstitutional, in prac- tice no capital stock assessments are made on such corporations. (2) 18 INTRODUCTION Shares of stock in foreign corporations are assessable to the shareholder at his residence. Public Service Corporations. The Illinois Central Railroad pays to the state seven per cent of the gross earnings on its charter lines, as a return for special grants and privileges and in lieu of taxation. Other railroads are assessed mainly by the State Board of Equalization. Local assessors assess all real estate not included in right of way or "railroad track," and personal property not included in "rolling stock." The State Board assesses "railroad track" and "rolling stock," and is supposed to assess the excess value of capital stock (if any) over the value of tangible property as assessed. The assessed value of the "main track" and "rolling stock" is apportioned among the counties on a mileage basis; while the "side track" is assessed by the State Board where it is located. On these assess- ments the usual state and local taxes are levied. Other public service corporations are assessed locally on their real and personal property ; and by the State Board of Equaliza- tion on the excess value of their capital stock above the local assess- ments on their property. Business Corporations These are assessable in the same way as public service corpora- tions other than railroads, locally on their real and personal proper- ty, and by the State Board of Equalization on- their capital stock, with the exceptions previously noted. In practice, as noted more fully later, the capital stock assessments on business corporations are relatively small. Financial Corporations. Foreign insurance companies, other than life, are required to pay two per cent on the gross amount of premiums received for business done in the state. This is in lieu of all taxes, state and local, except on real estate, and except reciprocal taxes. All burg- lary and casualty insurance companies, domestic and foreign, doing business in the state, on the mutual plan, are required to pay two per cent on cash collected as premiums from policy holders residing in Illinois, in lieu of other municipal or state taxes. These insurance taxes are collected by the Superintendent of Insurance. Banks, other than State and National Banks, are taxed on their moneys, personal property, credits, bonds and stocks, less deposits and other accounts payable. INTRODUCTION 19 Shares in State and National Banks are assessed to the share- holders where the bank is located, on the basis of the book value of the shares, less deductions for real estate and allowances for un- collectible accounts. Mutual building and loan association stock is nominally assessed to the stockholders, after deducting the value of the real estate. Table 2. SUMMARY OF REVENUES OF THE STATE OF ILLINOIS. Biennial Period, October 1, 1906, to September 30, 1908. Funds. General Property Tax. Special Taxes, Fees, Etc. State Treasury Funds — General Revenue Fund — Direct State Tax . $ 9,011,955 09 Illinois Central R. R Insurance Department Secretary of State, Fees Inheritance Tax United States Government Interest on Public Funds Dep't. Fees and Miscellaneous $2,371,981.56 907,884.45 960,934.88 782,743.49 368,547.89 163,774.71 129,255.66 Total $ 9,011,955 $ 1,991,563 09 55 $5,685,122.64 State School Fund $ 293,152.03 State Fish Protection Fund State Food Commissioner's Fund 12,487.96 3,350.00 Total General Property Tax $11,003,518 5,994,112 64 63 Total Special Taxes Fees etc $5,994,112.63 Total State Funds $16,997,631 2,591,210 27 79 Total State Treasury Funds $19,588,842 06 Accounts not included in Reports of the State Treasurer and Auditor of Public Accounts — Grain Inspection Fees State Board of Health State Board of Pharmacy Board of Dental Examiners $317,166.35 36,002.50 33,088.35 9,490.59 11 ,538.58 Board of Agriculture Canal Commissioners Supreme Court Fees Prison Industries State Institutions (Miscellaneous Re- venue) 75",'492'.'52" CHAPTER II. REAL PROPERTY VALUATIONS. Much the largest share of the general property tax in Illinois falls on the property classed as real property, including lands and town and city lots and the improvements thereon. More than three- fourths of the assessed value "of property assessed by local assessors is for real property, which is valued at about three and a half times the personal property. Including the assessment of railroad prop- erty and capital stock of corporations in the total, real property assessed by local assessors is still more than 70 per cent of the aggregate assessed valuation of property in Illinois; and pays a corresponding proportion of the taxes levied on general property. Assessment Methods. The method of assessing real estate is substantially the same as prescribed in the revenue law of 1872, except for the change made in 1898, introducing the quadrennial revaluation of real estate. Under this method less attention is given to the listing of real prop- erty by the owners than in the case of personal property; and assessments are made by the joint action of the county clerk and the local assessors, so as to include every piece of such property in every taxing district. Before April 1st of every fourth year (1907, 1911, etc.) the county clerk is required to prepare for the local assessors a list of lands and lots to be assessed for taxes, with the names of the owners as far as possible ; and annually he prepares a list of lands and lots not previously listed, or which have been subdivided and are not listed by the proper description. Each assessor is required before June 1st, in every fourth year, either himself or by deputy, actually to view and determine as nearly as practicable the value of each tract or lot of land listed for taxation. In each intervening year the assessor is required to list and assess all real property not on the general assessment, to add the value of new buildings or other im- provements, and to make deductions for any destruction or injury to any tract or lot. Under the present law it is provided that real property shall be valued at its fair cash value, estimated at the price it would bring (20) REAL PROPERTY VALUATIONS, 21 at a fair voluntary sale in the due course of trade, which should be set down in one column, to he headed "full value," and one third (formerly one-fifth) part of this shall be set down in another, as the "assessed value." Provision is also made for assessing leasehold estates and leasehold interests in exempted lands; buildings on the right of way of any railroad or other company, leased or granted for a term of years ; and real property on which there is a coal or other mine, or stone or other quarry; and also defining when lands granted by the government become taxable. The original assessments of real property by local assessors are subject to review and equalization by the county boards of review; and the aggregate valuations for each county may also be equalized by the State Board of Equalization. Assessed Valuations. The distinction between real and personal property appears in the reports of assessed valuations for the first time in 1846, follow- ing the new assessment law of the previous year. But for most of the next twelve years (until 1858) some counties reported only the aggregate assessment for all classes of property, and the totals shown for particular classes are incomplete. In 1850, however, it appears that the assessed value of real estate ($86, 512,537) was more than two and a half times that of personal property ($33,335,798). In 1854, real estate assessments are reported under two headings as "town lots" and as "lands," about four-fifths of the total of the real property valuations being for lands. But, until after 1866, the reports from some counties are often incomplete ; and in particular, the Cook County figures frequently include town lots in the re- ported value of lands. Beginning in 1867, when the State Board of Equalization was established, the assessed valuations of real estate are reported in further detail, under the following six heads: improved lands, un- improved lands, total lands, improved town and city lots, unim- proved town and city lots, total town and city lots. The assessed valuation of town and city lots for 1867 was about two-sevenths of the total assessment for real estate. About two-thirds of the total acreage of lands was reported as improved, at an average assess- ment of $6.48 per acre, and of $9.50 including improvements; and the remainder as unimproved at an average valuation of $4.32 per acre. The assessed valuation of town and city lots continued to in- crease somewhat more rapidly than that of lands; and in 1872, more than one-third of the real property assessments was for lots. 22 REAL PROPERTY VALUATIONS Under the revenue law of 1872, assessed valuations of all kinds for 1873, were more than doubled; but town and city lots were in- creased somewhat less in proportion than either lands or personal property. Improved lands were assessed at an average of $22.89 per acre, unimproved lands at $8.47; improved town and city lots at an average of $650.00 each, and unimproved lots at an average of $124.61 each. From the maximum figures of this year, assessed valuations of all kinds were steadily reduced in the following years. The assessment of town and city lots reached a minimum in 1880; after which the assessed valuation of this class of property increased both absolutely and in comparison with the valuation of lands. In 1899, the aggregate valuation of town and city lots exceeded that for lands; and since 1901, this relative position has been maintained. Since 1900, the assessment of lands has been increased; and with the change to the one-third basis in 1909, the assessed valuation of lands for that year was for the first time as large as that of 1873. During the past three years the assessed value of improvements has been reported separately for lands and for lots. A striking con- trast is shown between the assessed valuation of improvements on lands and on town and city lots. The assessments for improvements to lands in 1909 were less than 10 per cent of the assessed value of improved lands; while the assessments for improvements to town and city lots were more than 80 per cent of the assessed value of improved town and city lots. Including the valuation for improve- ments, the total assessment for town and city lots for 1909 was about $200,000,000 more than for all lands and improvements; but, ex- cluding the valuation for improvements, the assessment for lands was $100,000,000 more than for town and city lots. These facts indicate strongly that, under present methods of determining valuations, a tax on land values alone would distinctly increase the proportion of assessments and taxes on farm lands in comparison with town and city lots. On the basis of the valuations of 1909, farm lands have 43.4 per cent of the assessed value of real property in Illinois locally assessed; while excluding the value for improvements, farm lands would have about 54 per cent of the assessed valuation of real property locally assessed. It should be noted, however, that the improvements separately assessed appear to include only buildings and other visible and tangible structures; and that the assessed value of lands and lots, excluding the assessment for improvements, includes a considerable value due to other kinds of improvements. Thus, in the case of farm lands, part of their present value has resulted from expendi- REAL PROPERTY VALUATIONS 23 ture for roads, clearing, draining and cultivation, for which there is now no visible structure which can be separately assessed. In the case of town and city lots, a considerable part of their value is due to street and other public improvements, paid by special assess- ments or general taxation. The strictly location value of either rural or urban land would be only a part of the value now assessed separateh' from improvements. Table 3. ASSESSED VALUATION OF REAL PROPERTY LOCALLY ASSESSED IN ILLINOIS, 1909. Unimproved Improved Improvem'ts Total Lands $ 43,364,813 $558,036,892 $52,792,417 $654,194,122 R R Lands 796,897 Town and City Lots .... R. R Lots 89,635,696 416,349,749 343,352,671 849,337,516 4,655,985 $133,000,509 $974,386,641 $396,144,488 $1,508,984,520 The assessed valuation of real property as a whole, in comparison with that of personal property for the entire State of Illinois, has shown a comparatively small variation since 1873. (See Table XVIII, p. 227.) In that year, real property constituted 70.21 per cent of the total equalized valuation of property in Illinois. In 1874, this increased to 74.22 per cent; and since then the percentage has tended to increase slowly to a maximum of 80.96 per cent in 1897. Since 1900, real property has formed from 79.41 per cent (in 1908) to 76 per cent (in 1906) of the total assessed valuation of property. On the other hand, a comparison of the proportionate assess- ments of real and personal property in the different counties shows much more marked variations. Thus in 1877, real property formed 86.65 per cent of the total assessment in St. Clair County, but only 52.21 per cent in Jefferson County; in 1896, real property was 88.9 per cent of the total in Lake County and only 59.98 per cent in Pope County; in 1909, real property was 88.52 per cent of the total in Putnam County and 57.46 per cent in Lawrence County. The counties with the lowest percentage of real property assess- ments are distinctly rural counties, such as Gallatin, Calhoim, Pope and JoDaviess. On the other hand, the counties with the highest percentage of real property are usually counties with a considerable urban or suburban population, as DuPage, St. Clair, and Kane; r — ■*~ ~ 1 ~~' 1 r - --A^ "' . i - -S 1 ' •-r _ - ~; s ~" " ■ "* j ^.' _jS ? 1 ' s "■ J_ /< i - s ' ^i. Tj •' «■ \\ \ H— ' X~ ol — 'o, : 1 j / 'i ' 1 1 ■ ' t ' 1 i — 1 4- 9, 1 1 i 1 1 h j o ' I I ; ' > ' (D "! 1 . ', 1 r~i I 1 [ 1 It 1 r ivD I , 1 ' I ' ! 1 ' 1 1 ln| ' ' ', 1 \ 1 I , 1 1 \ 1 ] _, I'TI ! I ) / c^l 1 d^i i i ',i ' 1 , 1 \ t, i -■ 1 I • 1 j • r ■,; 1 I 1 1 o \ \ . 0- ■ ^' / \ ' 1

J ; [| " i i 1 -^-l ^ 1 1 ,i 1 ' »5 o 1 - - i ^ i i « O lo VO H w On rt 00 t^ O !>. o z c- M _ _ ^H IV^ u o pd r^ lo ' - ^ C7. •^ S 2 " U-) 00 CO vi vo !>. 00 ^ (N o 2 ►O (J \0 o 1 — 1 -H ON 00 O -\0 5: fc w ^ O ^o W o c: GO Q W 2 " r^ H O O -^ ^ ,. — ^ a O 'J^ PU ON <; CN 'O vo o CO ro -O tJ. 1 J JJ a a e c3 e fa O fa < ^ *c*, ^^^S?65^ IMr^-*>oin fa s WW w " S d'*'d e e 2 s e OW S:@oo So !^>N>.No t: w CS >,w >o 4, »i o fc So ^777"? S o 656965 65 S ^ D \n C>^J~> O g Pi o (M ro CO t^ < fa ti m xn w t? ^ (-. Vh u. ^ ^^ 0) a; Qj ^ ^ OOQ-SO J. Ci fa S o 9 w u ' ' -e t- '-' >< ci X ■;;>« o fa 2; 1^ W p. a> fc; S:3->oSo ^>^o o-^!^2S5 |§feS°S 7§fe fe§|o^ Rate OF Taxa- tion ON In- rement ^ 6§ S5 6§ 65 65 65 (N 'J^ tn lo O lO LT) ■^ CN CN "* '-'" L r^ ^t^ -CM ^ c/^ ro =3 ^^ o S w f^" NO 'oj Oi o 1 - ffi CQ (J &H W c, s 1 u •A ■rl c3 H .n VI (U g ^ 2 w H ^ o l>N w (1) o Ph tl-d PhtI fl> IS bo A tl iSTJ 1 4J ^ ::!. a ^w o >< f> IS nJ H P<1- .id w a ^ H o 0) c/:i w e O .4.3 H T) o-d +j cS w S +3 TS Tl Tl ^ < ;:: Q.a REAL PROPERTY VALUATIONS 33 New Land Taxes in Great Britain.'' The British Budget for 1909-10 (which finally became law April 29, 1910), provides for new taxes on the increment of land values, on the site value of undeveloped land and on mineral rights. A valuation of all real property in the United Kingdom is to be made, as from the 30th of April, 1909; and on any increment value accruing after that date a tax or duty of one-fifth (20 per cent) of that value will be taken on the occasion of a transfer, or a lease of more than fourteen years, and when on account of death the land passes to a new owner, or every fifteen years in the case of land owned by incorporated or unincorporated associations. The in- crement value is the increase in value by any other cause than the landowner's own labor or capital; but the first ten per cent of this "unearned increment" is not to be taxed, nor will the increment duty be charged "in respect of agricultural land while that land has no higher value than its value for agricultural purposes." This tax is expected to fall mainly on urban building land and mining lands. Another tax, called a reversion duty, of ten per cent, will be charged on the benefit accruing to a lessor on the determination of a lease of over 21 years. A third provision imposes an annual duty of one-half penny in the pound (about two mills on the dollar) on the capital site value of imdeveloped land exceeding in appraisement $50.00 an acre. The mineral rights duty is imposed at the rate of five per cent on the rental value of all rights to work minerals and of all mineral way leaves. a Parliamentary Debates, 1910, Fifth Series, Vol. 16, 1903 £f. (3) CHAPTER III. PERSONAL PROPERTY ASSESSMENTS. What is Taxable. The revenue laws of Illinois provide for the assessment and tax- ation, subject to certain exemptions, of All personal property in this State. All moneys, credits, bonds or stocks and other investments, the shares of stock of incorporated companies and associations, and all other personal property ; including property in transitu to and from this State, used, held, owned or controlled by persons residing in this State. The shares of capital stocks of banks and banking companies doing business in -this State. No general definition of personal property is given in the Illinois statutes ; but the revenue law provides for the listing of schedules of such property under a long catalogue of items. The statement of assessed valuations for 1860 published in the Report of the Auditor of Public Accounts shows fourteen different items; but the number was more than doubled in the revenue law of 1872, a few items have since been added, and the law now calls for a schedule of thirty-six items or distinct classes of personal property. The list of items as given in the statutes and schedules is not well classified; and a clearer idea of what is covered may be gained by grouping them as follows: (a) Tangible, productive property: — including various classes of live stock (horses, cattle, mules and asses, sheep and hogs) ; agri- cultural tools, implements and machinery; manufacturers' tools, implements and machinery; material and mantifactured articles, merchandise, grain, carriages and wagons, steam engines and boilers, fire and burglar proof safes, billiard tables, steam boats and other water craft, pawn brokers' property, property of corporations not enumerated, bridge property, property of saloons and eating houses. (b) Tangible property, not ordinarily productive: — including household furniture in general, and also specific enumeration of pianos, melodeons and organs, sewing and knitting machines, gold and silver plate and plated ware, diamonds and jewelry, and watches and clocks. (34) PERSONAL PROPERTY ASSESSMENTS 35 (c) Intangible property :^ — including moneys of bank, banker, broker or stock jobber; credits of bank, banker, broker or stock jobber; moneys other than bank, banker, etc.; credits other than bank, banker, etc. ; bonds and stocks, shares of stock of companies and associations not incorporated by the laws of this State, invest- ments in real estate and improvements thereon, shares of state and national banks, franchises, annuities and royalties, patent rights and all other personal property. Certain deductions for debts are allowed from credits. In addition to the regular schedule of personal property, the revenue law also provides specifically that certain articles and in- terests shall be listed and assessed as personal property, as follows : the sum paid on contract for the purchase of real estate, exempt in the hands of the holder of the fee, until the fee is conveyed; money secured by a deed for real estate; the stock of nurseries, to be listed and assessed as merchandise; gas mains and pipes laid in roads, streets or alleys; and the track, road or bridge of street railroad, plank road, gravel road, turnpike or bridge companies. Where Listed and Assessed. Except as otherwise provided, personal property is listed and assessed in the cotmty, town, city, -village or district where the owner resides. But there are a large number of exceptions provided in the statute, covering most of the tangible productive property. The capital stock and franchises of corporations and individuals, except as otherwise provided, are listed and taxed where the princi- pal office or place of business is located in the State. Live stock and other farm property is listed and assessed where the farm is situated, although the owner does not reside there. The property of manufacturers and others in the hands of agents is listed and assessed at the place where the business of the agent is carried on. Property in transitu is listed and assessed where the owner resides; but if intended for a business, is required to be listed where such business is. The personal property of gas and coke companies, except pipes laid down, and the personal property of street railroad, turnpike and bridge companies, is to be listed and assessed where the principal works, or place of business, are located; but gas mains and pipes laid in roads, streets and alleys, and tracks, roads or bridges, are to be listed and assessed in the district where laid. Horses, stages, and other personal property of stage, express and transporta- tion companies, are listed where they are usually kept. The amount paid on a contract for the purchase of lands, exempt in the hands of 36 PERSONAL PROPERTY ASSESSMENTS the holder of the fee, is to be hsted and assessed where the land is situated. The personal property of banks, bankers, brokers, stock jobbers, insurance companies (excepting, since 1905, life insurance companies incorporated in this state), hotels, livery stables, saloons, eating houses, merchants and manufacturers, ferries, mining companies, and companies not specially provided for, is to be listed and assessed in the county, town, city, village or district where their business is carried on, except property liable to assessment elsewhere in the hands of agents. Steamboats or other water craft are to be listed for assessment and taxation where they belong, or are enrolled, registered or licensed, or where kept, when not enrolled registered or licensed. , These provisions leave mainly household and personal effects and intangible property owned by individuals subject to assessment where the owner resides. If an owner of personal property moves from one taxing district to another during the time of the assessment, he shall be assessed in the district where he is first called on by the assessor. If he moves into this state from another state during this period, he must list his property, unless he can make it appear to the assessor that he is held for tax of the current year on the property in another district. Where any question arises as to the proper place to list personal property, if between several places in the same county, the place shall be determined by the county board; when between different counties, by the Auditor of Public Accounts. How Listed and Assessed. The revenue law provides that every person of full age and sound mind, being a resident of this state shall list all his moneys, credits, etc., and other personal property, and also all personal property controlled by him as agent or attorney, or on account of any other person. Provision is also made for listing the property of minor children, idiots or lunatics, wives, trust estates, corpora- tions, firms and so forth. It is further provided that persons required to list personal property shall make out, under oath, and deliver to the assessor a schedule of the numbers, amounts, quantity and quality of all per- sonal property in their possession or under their control, required to be listed for taxation by them. Any person so required to list personal property, who shall refuse, neglect or fail, when requested by the proper assessor, so to do, shall be deemed guilty of a mis- PERSONAL PROPERTY ASSESSMENTS 37 demeanor, and on conviction thereof, shall be fined in a sum not exceeding two hundred dollars. Assessors are to call at the office, place of doing business or resi- dence of each person required to list property, and require such person to make a correct statement of his taxable property, in the form prescribed, to be signed and sworn to. If any person is sick or absent when the assessor calls, he is to leave a notice calling for the schedule required by law. Whenever the assessor fails to obtain a statement of personal property from any cause, it is his duty to ascertain the amount and value of such property and assess the same as he believes to be the fair amount and value thereof. If any person refuses to make the schedule under oath, then the assessor shall list the property of such person according to his best judgment and information, and shall add to the valuation of such list an amount equal to fifty per cent of such valuation. The original assessments of personal property are subject to review by the county board of review, and the total county as- sessment is subject to alteration by the State Board of Equaliza- tion. There are no reports to the state officers showing the total num- ber of persons with personal property assessed for taxation, or the number of assessments based on schedules in comparison with the number made by the assessors. A published list of personalty assessments for the town of Urbana for 1910, contains about 2,000 names, in a population of 10,000, and the assessments range as low as $8.00 in one instance. It would appear that in this case the assessor had been reasonably diligent in making some assessment against every one subject to taxation. Personal Property Assessments. The aggregate assessed valuation of personal property in Illinois has followed in the main the general tendencies in the assessments for the general property tax, with few striking features. It seems clear here, as in other states, that there is a large proportion of such property legally taxable which escapes assessment ; but at the same time the proportion of personalty assessments in Illinois sho^^•s no such marked decline as in other highly developed industrial states. In 1860, the aggregate personalty assessments in Illinois were $88,884,115, or 24% of the total assessed valuation of real and personal property. In 1909, the assessed taxable value of personal property locally assessed was $433,207,831, or 22% of the -taxable 38 PERSONAL PROPERTY ASSESSMENTS value of real and personal property assessed by local assessors. But the increase in the aggregate valuation has not taken place at a uniform rate, and there has been some variation in the percentage of personalty assessments to the total. In 1873, when the powers of the State Board of Equalization were increased, local personalty assessments increased from ^112,213,357 to $304,518,340 (which was a somewhat greater relative increase than that in real estate valuations). After this, personalty assessments, (like those of other property) gradually declined to a minimum of $114,215,007, in 1898, which was only 16% of the total local assessments for that year. In 1899, there was a sharp increase to $183,526,986, and to 20% of the total local valuations, with the introduction of the law providing that the taxable value should be one-fifth of the assessed full value. And in 1909, with the change in the basis of assess- ments from one-fifth to one-third, the personalty valuations were increased from $243,583,621 to $433,207,831, in about the same ratio as the increase in other local assessments. Further information as to the distribution of personal property assessments between the various classes and items of such property is shown in table v (pages 210-211), Personal Property Assessed for the years 1861, 1873, 1888, 1898, 1899 and 1909. In 1861, four-fifths of the entire assessment of personal property was on tangible property, practically all of this on productive prop- ert}' and two-thirds of it on live stock. Only one-fifth was on intangible property. The distribution of personalty valuations remained in about the same relative position, until the sudden in- crease of assessments in 1873, under the new revenue law of the previous year. All classes of personal property showed a much greater assessment ; but the most striking changes were in the ad- ditions to tangible unproductive property. Intangible property was now about one-fourth of the total personal property assess- ment. The three main groups or classes of personal property retained about the same relative proportions until in 1899, under the law providing that one-fifth of the assessed full value should be taken as the taxable value. Most of the aggregate increase in personalty assessments that year were in the items of intangible property, the assessed valuation of which was more than doubled, bringing the valuation of intangible property from one-fourth to one-third of the aggregate personalty assessments. Since 1899, the proportion of personalty assessed directly under the items classed as intangible property has remained about the PERSONAL PROPERTY ASSESSMENTS 39 same. But the assessed valuation of tangible property has beconw^ relatively less; and in 1909, was only about one-third of the aggre- gate personalty assessments. This is due to the marked increase both in amount and relative proportion of the assessments under the vague phrase of "other property." This item, formerly a small fraction of the total, has increased to $130,057,874 in 1909, or about 30% of the total. About 85% of this amount ($112,888,473) is in Cook County. This item is evidently used for lump sum assess- ments made against persons for whom no schedules have been filed ; and there seems no way of indicating at all accurately how much should be assigned even to each of the three main groups or classes of personal property. A considerable part of it, however, may represent intangible property; and such property must now repre- sent more than a third of the total personalty assessments, as com- pared with one-fifth in 1861, and one-fourth in 1873. In the accompanying table (No. 6) a comparison is made, so far as possible, of the assessed valuation of various classes of proper- ty with the census estimates of the true values for the years 1900 and 1904. These statistics indicate that personal property as a whole, is undervalued for taxation more than real estate — the assessed'valuation of real estate being between 13 and 14 per cent of the estimated true value, while the assessed valuation of personal and other property is only from 9 to 10 per cent of the estimated true value of tangible personalty. Examining the particular classes of property, the assessed valu- ation of live stock appears to be nearly the same proportion of esti- mated true value as in the case of real estate. But the assessed value of farm implements and machinery is much smaller (about five per cent of the estimated true value) ; while the assessed valua- tions of the miscellaneous group which includes several classes of public service properties, various classes of merchandise and furniture, clothing and personal adornments, is also little more than five per cent of the estimated true value. The assessed valua- tion of manufacturing machinery, tools, etc., is only about one and a half per cent of the census estimates of the value of such property. 40 PERSONAL PROPERTY ASSESSMENTS M M < o Q g o w CM M o o -) - W £ fa < k ■ O ps; z m Ph H H P^ 0. C/3 O p Z o CO H W o en o CO A^ a o o o o s o o Q M ■ tn Pi '-' ro C^ J>. r^ ro lo '5j< fO lo ■rt lO .rH lO ^rH lO 65g^ -a 11 ■rt 00 tr; CMCNCvJOn^ O- i^ CM (^ (N O r-OfONO'^ U-) c^ ■^ „ z tn rr> o ■^-^T-HNO^O CJ On tJ* P o W " ■<* o^ ■^C^ICSO-^ 00 ^ CN en H ^ po o ro CO NO Tj^ U-) ro w ro m < 00 OOO CO\OPO*-IOO i:^ ^^ O H 1,087, 761, 326, ■^CNfOPOO ■^ O rO ■* <> fO CM On O ^^ ■^ o '-t ^ T-( \0 lO O NO o fo O CO CO : : bi O CN O '^ 00 CN O O On cm p ■^ CN CS U-) Tr^ CO lO O ■^ ON O (M ro 1-1 CO CO -^ r- i-i 1-H lO 0\ vO CO ON -^ I>- lO On t^ lo -^ O r- li^ Lo O O ^^ "* • ^1 \0 CO CO 00 CO t^ O lO i--. O ^ VO -ct^ NO -^ CS lO O CM CM CO 'Tt^ ro CM CN '-I 00 CO 'J^ CO LO PO ,—1 ^ Q W . m g B W Oh p ■^ CN On On -^ -+ O NC CNl •^ to lO o \o On CO ON IT- CN CNl NO O O O On cOi-iNOONt^ 1-" CO CO gi ^ PO O COCN-fONO "^ C^ NO ro 00 vo CO CO CM 00 00 O O 00 m E-. ro NO -O coONr^t--.r^ O ■--• O Y\ < J>- CO PO cOC'lOOi-^OO "^ CO 00 ON CO ^ r^ CM CM CO t-- y^ 00 ■* o o^ ^ CM 1-1 r- r^ CO o 00 lO CN o- 4© O NO ^ ■^ Oio lo O O^ -^ 1^ O cor- !>■ ^ l>- CO On r- Tt^ o 00 ■^ -^ : 1 -^U-. ON y^ On CN r- 1-1 NO lO NO >^ O CM -^ NO tJ* ^ 00 CM r^ NO v-1 '-' "^ O CM r- CO '-I On (M i>- CM CM 1-* NO CM CN NO -^ P o u 5, Bonds and Stoc 1 Stock Assessme of Equalization. It O > Farm Manuf Gold a Railro; Street Wor u a •■tt'd o ■a CO T3 2 3 ;^ PERSONAL PROPERTY ASSESSMENTS 41 Tangible Personal Property. As already indicated, the assessment of tangible personal prop- erty in Illinois has declined in proportion to the assessment of other personal property, and also in proportion to the assessment of real estate. In 1873 and before, the assessment of tangible personal property was about two-thirds of the total personalty assessments, and about one-sixth of the total assessed valuation of property by the local assessors. In 1909, the assessment of separate items of tangible personalty was but little more than one-third of the total personalty assessments and hardly one-twelfth of the total valua- tion by local assessors. A comparison of ratios, as given above, indicates more clearly the relative changes in the assessments of tangible personalty than the statistics showing the valuations. But it may also be noted that, while the recent increase in the basis of valuations from one- fifth to one-third has increased the taxable valuation of tangible personal property, the total taxable valuation of such property for 1909 was considerably less than the assessed valuation for 1873. The lower valuations' for 1909 are especially noticeable in the case of live stock and carriages and wagons, where the taxable valuations are less than half those for 1873. An examination of the detailed tables showing the valuations by counties, as printed in the reports of the Auditor of Public Accounts, confirms complaints made to the Special Tax Commission of the general practice of undervaluation and the wide range of variations in the valuation of particular items as between different taxing dis- tricts. The statement published in the Proceedings of the State Board of Equalization for 1909, shows that the average county valuation of horses varies from $14.55 in Clinton County, to $31.31 in Johnson County; that of cattle from $5.78 in Alexander Coimty, to $11.12 in Cass County; watches and clocks from 97 cents in Clinton County, to $5.65 in Cook County; and pianos from $19.91 in Rock Island County, to $41.80 in Hardin County. Similar variations are re- ported in the average valuations by townships in the same county;" while even where the assessors within a county use about the same average rate, there are important differences between the assess- ments for similar articles in neighboring townships which lie in o Thus in 1910, the average assessment on horses in Shelby County was $107.00 in Richland Township, and $59.00 in Dry Point. In Whiteside County, the average assessment on carriages and wagons was $56.09 in Mt. Pleasant Town- ship, and $8.73 in Erie Township; on sewing machines the average assessment varied from $10.43 in Fulton to S3. 08 in Prophetstown ; and on pianos from $45.44 in Montmorency to $93.97 in Genessee. 42 PERSONAL PROPERTY ASSESSMENTS different counties. It is reported, too, that some assessors cut down the number of horses, cattle, etc., assessed, so as to show a higher average rate for each animal. Various suggestions have been made to the Special Tax Com- mission for changes in the listing schedule; and an examination of the assessed valuations by items indicates also where some changes could be made, for the' most part in the direction of simplification. The small amounts assessed in the aggregate for such items as fire and burglar proof safes, billiard tables, melodeons and organs, and sewing and knitting machines, show that their separate enumeration adds no appreciable amount of taxable property; and such items might well be consolidated with others. So too, gold and silver plate, diamonds and jewelry and watches and clocks might well be combined in one item. On the other hand, if the listing system is to be continued, some additional items might be inserted, as more important than a number of those now scheduled. Thus, some additional taxable property would, perhaps, be assessed if automobiles, dogs and poul- try were enumerated as distinct items, and if "household and office furniture" were divided into "household furniture" and "office and store furniture and fixtures," the latter to include safes and billiard tables. It may also be noted that in about a third of the states (including Wisconsin, Michigan andKentucky),household furniture, to amounts ranging from $150 to $1 ,000, are exempt from taxation. The assess- ed valuation of less than $20,000,000 for such property in Illinois in- dicates that the assessments are so small a fraction of the actual value as to give a large exemption in practice. INTANGIBLE PERSONAL PROPERTY. In contrast with the relative decline in the taxable value of tan- gible personalty, the assessment of intangible personal property in Illinois has shown a notable increase both in aggregate amount and in relation to the assessed valuation of other property. Except- ing the rather vague item of "other property," the taxable valua- tion of moneys, credits, bonds and stocks and other items classed as intangible property has increased from a fourth of the total per- sonalty assessments in 1873, to one-third in 1909; and the aggre- gate taxable valuation of such property was in 1909 about double that in 1873. At the same time, the most numerous complaints made to the Special Tax Commission have been in regard to the assessment of PERSONAL PROPERTY ASSESSMENTS 43 moneys and credits, and more especially of mortgages. On the one hand, many complaints have been made of the failure to assess such property ; and on the other hand, are complaints — sometimes by the same persons — of double taxation involved in the taxation of mort- gaged property and of notes secured by such property. Various suggestions have been made of methods intended (a) to secure a more complete assessment of moneys in bank and of loans secured by mortgage or trust deed, (b) for the reduction of assessments on mortgaged property and (c) for special taxes on mortgages such as are in force in a number of states. These varying and conflicting views make necessary an examina- tion of the situation in regard to the assessment and taxation of mortgages, credits and other intangible property; and also of the methods employed in other states in regard to the taxation of such property. In beginning such an examination it is important to understand the opposing views, expressed on the one hand in the statutes and judicial decisions, and represented on the other hand by those who consider the taxation of mortgages, credits, etc., under the gen- eral property tax, as double and inequitable taxation. As noted above in the general discussion of personal property assessments, the revenue law of Illinois distinctly specifies credits as a class of property to be assessed and taxed in the same way as tangible property. Each person is asked to assess himself by listing his credits for taxation, with certain deductions allowed for debts, and to swear to the truth of the list ; while the assessors are also re- quired to take oaths as to the performance of their duty in making &,ssessments. Moreover, the courts have sustained the statutes by holding mortgages and other credits to be property, subject to taxa- tion apart from and in addition to the tangible property given as security for the debt. It has even been held that an unsecured promise to pay for goods not yet delivered constitutes property. In direct conflict with the legal theory, it is urged by many that in a correct economic sense, shares of stock, bonds, promissory notes, and obligations of other kinds, are not in themselves property, but are simply a series of claims, either on some definite physical proper- ty or for a definite value out of the general mass of physical property. It can be readily shown that every credit due is equalled by a corres- ponding debt; and the aggregate of credits and debts must balance. And for this reason estimates of the aggregate wealth of the commun- ity, such as those made by the United States Census, never attempt to include credits over and above the value of physical property. 44 PERSONAL PROPERTY ASSESSMENTS What is true of credits, it may also be urged, is true also to a large extent of what is included in the term "moneys." Money deposited in bank is in one sense a credit due by the banker to the depositor; and in turn these deposits are loaned out to others ; while practically all banking transactions are accomplished by checks and accounting entries, with the actual use of but a small fraction of tangible cur- rency. Even currency for the most part consists of paper promises to pay, or certificates representing coin or bullion; and the amount and proportion of tangible specie actually handled in the financial transactions of today, is but an infinitesimal part of the amounts indicated in the accounts and reports. According to such arguments, the taxation of mortgages and credits involves "double taxation" of the same property, or perhaps its taxation three or more times. It must also be admitted that this reasoning has much cogency; although its acceptance would still leave many difficulties in attempting to adjust taxation between creditors and debtors, and between the rival claims of different tax- ing districts. Nevertheless, the view of the courts that credits are property subject to taxation cannot be ignored. It must also be admitted that, to the ordinary man and to the popular mind, securities such as stocks, bonds and mortgages, and even simple credit, constitute a purchasing power and source of income, which should bear its share of the tax burdens of the community. Besides the radical objections to the whole theory on which the taxation of credits and intangible property is based, there are other serious difficulties found in the actual administration of the laws for the assessment and taxation of such property, which must be' recognized and considered. From the point of view of the owner of bonds and mortgages, it is urged that interest rates on such secur- ities are low, just because they have seldom in practice been taxed to any large extent ; and that to tax them at their full value at the rates now imposed (especially in cities) will take from one-third to one-half of the income; while rentals on real estate are adjusted with reference to the rate of taxation, so as to yield a fair return after deducting the taxes. These conditions, in connection ^\'ith the general arguments noted above, explain why the holders of such securities consider themselves justified in avoiding the assessment and taxation of their holdings. At the same time assessing officials have no means of determining the amount of notes, mortgages and securities held by any individual, except his own statement; and if they undertake to make assessments at anything like what is PERSONAL PROPERTY ASSESSMENTS 45 supposed to be the full extent of such holdings, it is only to learn a I the next assessment that the owner has changed his investments into securities (such as United States bonds, Illinois Central stock, etc.) \^^hich are exempt from taxation, or that he has changed his residence to some other district or perhaps to another state. Under these conditions, the results in all parts of the country have been that hot more than a small fraction of the value of stocks, bonds and mortgages are ever assessed for taxation under the general property tax. Mortgages and Credits. In examining table vi (pages 2 1 2-2 1 3 ) showing the assessed valu- ation in Illinois of credits and of moneys of other than banker, broker, etc., by years, from 1873 to 1909, the decline in valuations from 1873 to 1897, should be considered in connection with the general decline in all assessed valuations (including real estate and tangible per- sonalty) during these years; and the marked increases in 1899 and 1909 are likewise due in considerable part to changes in the bases of assessments applying to all classes of property. These factors explain to some extent, the wide fluctuations; but even after making allowances, the assessed valuations in this table are affected by special variations in the assessment of credits and moneys. The term "credits of bank, banker, broker, etc." as defined by law, means the result, if any, obtained by subtracting all deposits and all accounts payable from all loans and discounts and over- drafts. This balance is not a large one, and is subject to consider- able variations from day to day, which make it difficult to compare accurately the assessed valuations with the published bank reports. A comparison of conditions at two dates (one in 1893 and one in 1900) indicated, however, that there was little or no evasion under this heading." The term "credits of other than bank, banker, broker, etc." in- cludes all claims or demands for anything of value (except money on deposit), not counterbalanced by debts, which are owned by persons not included under the definition of "bank, banker, broker or stock jobber." It therefore should include all notes secured by mort- gages, as well as other credits, of residents of Illinois, subject to deductions for debts. a R. M. Haig: Taxation of Mortgages and Credits in Illinois since 1870, pp. 39-53. Mr. Haig estimated that the assessed valuations for 1893 were only about two-fifths of the net taxable credits as calculated from the bank reports; but this was probably at least as high a valuation as any other class of property at that time. 46 PERSONAL PROPERTY ASSESSMENTS Assessed valuations under this heading for the State of Illinois fluctuate in about the same ratio as those for tangible personal property, increasing, however, rather more rapidly than tangible personaltv during the past ten years. At the same time, a detailed investigation of mortgage statistics made by the Bureau of Labor Statistics in 1888 indicated that such mortgages were many times the total assessments for credits of other than banker, etc. The table below shows the Bureau of Labor estimate of the mortgage indebtedness in force in Illinois for the years 1870, 1880 and 1887. These estimates were based on the statistics of mort- gages recorded for these years, multiplied by the average length of term. Table 7. ESTIMATE OF OUTSTANDING MORTGAGES IN ILLINOIS, COOK COUNTY AND ALL OTHER COUNTIES, 1870, 1880,1887. [Compiled from Report of Bureau of Labor Statistics, 1 1870 1880 1887 State of Illinois — $119,690,312 170,980,907 13,762,541 $108,247,959 76,599,928 11,808,187 $142,400,300 Lots 238 922 039 Personal Property 20,730,779 Total $304,433,760 $196,65.6,074 $402 053 118 Cook Coiinty — Lands $ 23,969,309a 148,748,059a 6,384,932a $ 4,722,722 55,315,340 4,118,692 $ 18 667 202 191 496 506 Personal Property 10,439,522 Total $179, 102, 300a $ 64,156,754 $220 603 330 All other counties — Lands $ 95,721,003 22,232,848 7,377,609 $103,525,237 21,284,588 7,689,495 $123 733 098 47 425 533 Personal Property 10,291,257 Total $125,331,460 $132,499,320 $181,449,888 The total amount of outstanding mortgages is, however, larger than the amount subject to taxation. Mortgages for deferred pay- ments are subject to deductions for debt before assessments; mortgages to non-residents of Illinois are not assessable in this state ; a 1875; Records of 1870 destroyed by fire. PERSONAL PROPERTY ASSESSMENTS 47 and mortgages to banks, brokers, etc., are not included in the tax schedule item of "credits of other than banker, broker, etc." Mak- ing allowances for these classes of mortgages, the following com- parison has been made of the estimated amount of mortgages sub- ject to taxation and the assessed credits of other than banker, broker, etc., for the years 1880 and 1887. * Table 8. ESTIMATE OF MORTGAGES LEGALLY SUBJECT TO ASSESSMENT COMPARED WITH ASSESSED CREDITS OF OTHER THAN BANKER, ETC., 1880 AND 1887, ILLINOIS AND COOK COUNTY. Mortgages Liable to Assessment. Assessed Credits OF other than Banker, etc. State of Illinois- 1880 1887 Cook County — 1880 1887 $139,112,423 242,265,746 48,007,350 135,533,762 117,680,302 12,160,825 211,815 117,170 In considering the foregoing statistics, it must be borne in mind that the assessed valuation of other property was only a fraction of cash value — probably not more than a third in 1880 and not more than a fifth in 1887. But even on this basis, the assessed valuation of credits was only from one-third to one-fourth of what would have been a proportionate assessment for the amount of mortgages indi- cated. The statistics for Cook County indicate (what is also suggested by the low figures for that county in the previous table) that mortgages have been assessed in that county to a much smaller degree than in the rest of the State. Since the detailed investigation of the Bureau of Labor Statis- tics, there have been many changes. The assessed valuation of credits has shown a very noticeable increase, both in the state as a whole and even in Cook County. What the tendency has been in regard to the amount of mortgages and their relation to the aggre- gate value of property cannot be shown in the absence of any de- b R. M. Haig: Taxation of Mortgages and Credits in Illinois — since 1870, p. 68. 48 PERSONAL PROPERTY ASSESSMENTS tailed study of the present situation. It . is, therefore impossible to state with accuracy the recent situation. But it may be assumed that even the recent increase in the assessed valuation of credits includes but a small part of all the mortgages and other credits that are legally subject to taxation. In an intensive study of Mortgage Taxation in Wisconsin and neighboring states, by Professor T. S. Adams for the Wisconsin Tax Commission in 1907, a comparison was made between Lafayette County, Wisconsin, and JoDaviess County, Illinois. Mr. Adams estimated that, excluding non-taxable mortgages, the mortgage indebtedness upon real estate of JoDaviess County averaged about $2,948,580 for the period from 1900 to 1906 ; while the assessment of credits for the same period averaged $172,750, which should be multiplied by five in order to indicate the proportion of mortgages actually assessed. On the assumption that residents of the county loan about as much outside the county as is borrowed from lenders outside the county, and that about 80 per cent of the assessment of credits represents mortgages, then about 23.4 per cent of the mortgages were actually assessed and taxed. " If the situation in JoDaviess County may be taken as typical of the rural counties in Illinois, it appears that even in such counties not more than a fourth of the mortgages legally taxable are assessed. It is probable that in counties containing large cities the proportion is less ; and the continued low assessments for credits in Cook County indicate that but a very small proportion of mortgages held in that county are assessed. Money and Bank Deposits. Bank deposits might well be considered as credits due to de- positors by the banks, and if so considered would add enormously to the amount of credits not listed and assessed for taxation. But bank deposits are considered, instead, as moneys belonging to the depositor, and as such are legally subject to assessment and taxa- tion under the heading of "moneys of other than banker, etc." It is however very clear from the table below that the assessed valu- ation of "moneys of other than banker, etc." forms but a very small proportion of bank deposits in the state. Report on Mortgage Taxation in Third Report of Wisconsin Tax Commission 1907, p. 399. personal property assessments Table 9. 49 COMPARISON OF BANK DEPOSITS AND ASSESSED VALUE OF MONEYS OF OTHER THAN BANKER, ETC., ILLINOIS AND COOK COUNTY. State of OF Illinois Deposits of State AND National Banks. Savings Deposits OF State Banks. Assessed Value of Moneys of other than Banker, etc. 1889 1898 1899 1908 $124,374,251.02 242,048,067.72 296,785,238.84 674,353,841.47 $ 10,398,043.31 35,128,016.21 50,898,654.69 171,412,856.96 $ 9,516,138 7,951,202 17,742,210 18,728,241 Cook County 1889 1898 1899 1908 $ 80,551,332.95 167,209,534.79 211,032,906.16 440,822,737.16 $ 9,380,927.42 28,284,838.08 41,731,272.62 147.403,902.07 $ 1,221,899 839,566 4,203,385 963,907 Making due allowances for the londervaluations in the assess- ments of other property, the bank deposits would appear to be from three to six times the amount accounted for by the assessed value of "moneys of other than banker, etc." for the entire state, and the deposits in Cook County appear to be from sixteen to ninety times what would be expected from the assessed value of "moneys of other than banker, etc." in that county. At the same time, the assessed value of money is a somewhat higher proportion of the census estimate of the tangible gold and silver coin and bullion than the assessed valuation of any other class of property in comparison with the census estimate of its true value. (See table 6.) It would seem evident that the attempt to assess and tax moneys and credits in Illinois is very far from successful. The assessments made under these heads is but a fraction of what would be expected for the two items of bank deposits and mortgages, without con- sidering other forms in which moneys and credits are held. In so far, too, as moneys and credits are reached, the assessments in different coimties are by no means proportioned to the relative amotmt of such holdings; and especially in Cook County a much smaller proportion of moneys and credits is assessed than in the rest of the State. This is the result imder a law making special pro- visions for the assessment of such holdings, which has been upheld by the courts; and after a decade of special efforts on the part of the assessing officials to increase the assessments under these headings. W 50 PERSONAL PROPERTY ASSESSMENTS Even if the law will not recognize that notes, accounts and other credits are not property in the same sense as tangible objects, it should at least appear that they cannot be assessed and taxed in proportion to their value under the general property assessment. Bonds and Stocks and Bank Shares. The assessment of bonds and stocks and of shares of capital stock of companies not of this state shows absurdly small totals, which are subject to very irregular variations. (See table vii pages 214-215). In the case of "bonds and stocks," it appears that only such are taxable when the capital stock of the corporation is not assessed in this state ; but the valuations since 1905 show no con- siderable increase in the assessments under this head since the capi- tal stock of mercantile and manufacturing corporations has ceased to be assessed by the State Board of Equalization. No information has been secured on which to base a comparison of the assessed valu- ations with the amount of such holdings. But it seems clear that an aggregate assessment of less than $7 ,000, 000 for bonds and stocks, and less than $1,500,000 for shares of capital stock of companies not of this state is but a mere trifle of the total amount of such holdings in Illinois. In comparison with the assessments of other bonds and stocks, the assessment of shares of stock in State and national banks ap- pears to be relatively high, and shows a noticeable increase during the past ten years. Special provisions of the law apply to the assess- ment of banks.- Before 1901, all State and private banks were re- quired to submit detailed statements of their moneys, bills receivable deposits, etc., while the shares of national banks were assessable under the general provisions of the revenue law. Under legislation of 1901 and 1903, however, shares of incorporated State and national banks are now assessed where the bank is located, and collected by the banks from dividends due the stockholders. The value of the shares is determined by deducting from the value of all the shares of capital stock the assessed value of real estate owned by the bank in the county where the bank is located. The assessment of bank shares shows a marked decline from 1873 to 1898; and a notable increase in 1899 at the time the rule for one-fifth valuations went into effect. In 1901, under the new law for the assessment of shares of state banks, the assessed valuation increased about five times that for 1900; but in 1902, this dropped to about the figures for 1900. Since then there has been a consider- PERSONAL PROPERTY ASSESSMENTS 5l able increase, and, with the change to the rule of one-third valua- tions, in 1909, .another marked increase to $44,216,278. Complaints have been made to the Special Tax Commission that bank shares are assessed higher in proportion to their value than real estate or other property. On the other hand, the Illinois Tax Re- form Association has claimed that the assessment of bank shares in Cook County is inequitable and discriminates in favor of certain banks. TAXATION OF MORTGAGES IN OTHER STATES. ° The problem of the taxation of securities and credits, especially those in the forai of mortgages on real estate, has been actively dis- cussed in many states during recent years. In about two-thirds of the states^ mortgages are still legally taxable as personal property to the holder at his place of residence, and the real estate given as security is also taxable to the owner at the situs of the property. In a number of states, however, mortgages are now taxable only as an interest in the real estate ; and in several other states mortgages are subject to a moderate special tax, in addition to the usual tax- ation on the real property. These include several of the largest and most important states in the Union. Double Taxation of Mortgages and Mortgaged Property. Under what is still the prevailing system in most of the states, as in Illinois, the mortgagor is taxable on the full value of his prop- erty without deduction ; while the holder of the mortgage is also taxable on the amount due him, as personal property. In practice, however, the assessment of mortgages as personal property is never fully enforced; and only in rare instances and for short periods has any considerable percentage of mortgages been listed and assessed for taxation. Ordinarily the mortgages assessed are those where both parties are residents of the same taxing district, those disclosed during the settlement of estates, and a fractional part of large hold- ings on which the owners are willing to pay taxes. In Ohio, Michi- gan and Iowa special efforts have been made to assess mortgages. In Ohio a tax inquisitor law gave large rewards in return for the discovery of property upon which back taxes could be collected. a Robert Argyle Campbell: Mortgage Taxation; Wisconsin Legislative Refer- ence Department, Bulletin No. 17. b All except Massachusetts, Connecticut, New York, New Jersey, Pennsylvania. Delaware, Virginia, Alabama, Indiana, Wisconsin, Minnesota, Colorado, Arizona, Utah, Idaho, Washington, California, Alaska and Hawaii. 52 PERSONAL PROPERTY ASSESSMENTS The result has been that many owners of personal property have moved their residence out of the state, and the amount of intangible personal property on the tax rolls has been reduced rather than in- creased. "The grand total of all moneys, credits, mortgages, stocks, bonds -and other intangible property returned for taxation for the year 1906 was less than $150,000,000, although the bank deposits alone, were about $500,000,000 * * * *. xhe value of all credits returned was $34,000,000 less in 1906 than it was in 1890, and $16,000,000 less than it was in 1870. The value of all stocks and bonds was $2,575,000 less in 1906 than it was in 1880; and the value of all intangible property * * * * returned for taxation was nearly $8,000,000 less in 1908 than it was in 1890."° During the past ten years there has been a marked increase in personal property assessments in Michigan from $142,330,376 in 1899 to $364,207,665 in 1907. This has been due to more vigorous administration, and among other things to detailed investigations of the recorded mortgages not only in Michigan, but also of mort- gages held by Michigan residents in other states. It should be noted, however, that while the total assessment of credits in Michigan is nearly double that in Illinois, the total personalty assessments is even now only about the same proportion (22% in 1907) of the total assessed valuation of property as in Illinois. There has also been some decline in mortgage assessments, from $55,000,000 in 1901, to $46,000,000 in 1907; and the tax commission reports that such credits are often assigned to non-residents so as to avoid assessment for taxation.*" Professor T. S. Adams, in connection with his investigation of mortgage taxation in Wisconsin, made a comparison of conditions in Menominee County, Mich., with those in the neighboring Wis- consin county of Marinette. He judged that probably about 60 per cent of the mortgages in Menominee County were assessed, with a marked effect on interest rates, which were higher and rising in Menominee County, Mich., and lower and falling in Marinette County, Wisconsin dtiring the period from 1900 to 1906. Moreover in Menominee County half the loans secured by mortgages were borrowed from creditors living outside of Michigan, and this ten- dency was increasing; while in the neighboring Wisconsin county (where mortgages were exempt from taxation) less than ten per cent were borrowed outside the state, and this percentage was a Report of the Ohio Tax Commission, 1908, pp. 23, 24. b Fifth Report of the Board of State Tax Commissioners (1907-08) pp. 14-30, 63, 65. PERSONAL PROPERTY ASSESSMENTS S3 diminishing. Further, more than half the mortgages recorded in Menominee County contained provisions by which the mortgagors undertook to pay all taxes that might be levied on the mortgage iteself , and the proportion of mortgages containing such covenants was increasing." Iowa has also had a "tax ferret" law, somewhat similar to that of Ohio, by means of which in certain counties a large majority of the taxable mortgages appear to be assessed. Professor Adams' in- vestigations in Clayton County, Iowa, indicated that probably 85 per cent of the taxable mortgages were assessed and taxed in that county. In contrast with conditions in Menominee County, Mich., the interest rate in Clayton County, Iowa, was lower than in the neighboring county of Grant, Wisconsin. On the other hand, the number of mortgages in Cla3rton County was diminishing steadily, and a larger and larger proportion were placed outside the State of Iowa.'' The absence of any apparent influence on interest rates may be due to the low rate of taxation (less than one per cent) in Clayton County ; while even under these conditions the large assess- ment of mortgages appears to be forcing borrowers to go outside the state to borrow money. It thus appears that the most vigorous efforts to assess and tax mortgages on their full value in addition to the taxation of the mortgaged property has at best had but partial success as a means of increasing revenue ; and that such efforts usually result in an increase in interest rates to borrowers, and even more commonly tend to transfer mortgage investments to residents of other states. Taxation of Mortgages as an Interest in Real Estate. When the objections to the attempt at double taxation of mortgages and mortgaged property have been pressed, an obvious solution proposed has been to tax mortgages as an interest in real estate. This method has been adopted in some states. It meets the difficulties by undertaking to tax the holder of the mortgage and to relieve the owner of the mortgaged property. Under this system, however, an important question is whether or not parties to a mortgage may make a contract concerning the payment of taxes. If such contracts are permitted, the mortgagor usually agrees to pay all taxes on the encumbered property, on the the assumed ground of a lower rate of interest, and the mortgagee a In Report of Wisconsin Tax Commission 1907, pp. 314, 409, 414. h In Report of Wisconsin Tax Commission 1907, pp. 313, 403-406. 54 PERSONAL PROPERTY ASSESSMENTS makes no direct payment of taxes. If such contracts are not per- mitted, each party must pay taxes on his respective interest. At present, mortgages in Massachusetts, Connecticut, New Jersey, Wisconsin and California are taxable only as an interest in real estate, and parties to a mortgage are permitted to enter into a contract concerning the payment of taxes. Michigan and Oregon have had similar laws, which were construed by the courts to permit such agreements; but in both states these laws have been repealed. In Colorado mortgages and property mortgaged are assessed as a unit, with no separate assessment on mortgages. In Indiana a peculiar modification of this system prevails. A mortgagor may have the amount of mortgage indebtedness, not exceeding $700, deducted from the assessed value of the mortgaged premises; but in no case can the deduction be more than half the assessed value of the real estate. If the deduction is claimed and allowed, the mortgage debt or that portion of it which is taxable is assessed as personal property to the mortgagee at his place of residence. California formerly had a law providing for the taxation of mortgages as an interest in real estate and not permitting contracts in regard to taxes. This prevailed from 1879 to 1898 ; but under the present law such contracts are permitted. Delaware, Utah, Idaho and Washington exempt mortgages from taxation. In regard to the operation of such methods, the Massachusetts Tax Commission of 1897 reported that the change, made in that State in 1881, had "tended to bring about a decline in the rate of interest on mortgages, security being the same;" they considered that the method worked, if not perfectly, at least smoothly and certainly, and concluded that it was inexpedient to make further changes in the legislation as to the taxation of mortgages in that state." During the period in which the California law prohibited con- tracts by which the borrower might agree to pay taxes on mort- gages, the rate of interest on taxed mortgages in that state was higher than the interest rate on untaxed credits by -more than the tax rate. Thus it appeared that the borrower did in fact pay the tax in a higher rate of interest, and moreover had to pay something more on account of the indirect process of shifting the burden.^ a Report of the Massachusetts Tax Commission, 1897, pp. 37, 39. b Report of the Wisconsin Tax Commission, 1903, pp. 127, 130. PERSONAL PROPERTY ASSESSMENTS 55 In Wisconsin a detailed investigation of the results of the exemp- tion of mortgages from taxation (established in 1903) disclosed surprisingly slight changes in the effect on interest rates ; and while in some counties the interest rate was lowered, it increased in others. The reduction in interest rates was mostly in counties con- taining a city of some size, with higher tax rates than in strictly rural counties. On the other hand, it appeared that under the present law the proportion of home loans (by residents of the state) was noticeably higher than it was when mortgages were even nomi- nally taxed, and that the proportion of money borrowed outside the state has been noticeably lower since 1903." The complete exemption of mortgages from taxation, except as an interest in the mortgaged property, appears then in most cases, and especially in cities, to bring about some reduction in the rate of interest paid by borrowers, and more clearly to encourage mort- gage investments by residents of the state. At the same time, this method necessarily reduces the total of the assessed valuation of property by the amount which has been or might be assessed for mortgages; and thus either reduces the public revenue or causes a higher rate of taxation to be levied on the property assessed for taxation. In itself too, this method provides no means for even attempting to collect from those who have large investments in mortgages and similar investments something like an adequate part of the expenses of the government. Special Taxation of Mortgages, Etc. Between the two extreme views of attempting to tax mortgages at full value in addition to the taxation of the encumbered property and entirely exempting mortgages except as an interest in the mortgaged property, a third and intermediate position has now been adopted in several states. This method is practically a com- promise, and would appear to have practical advantages and to be distinctly successful in operation. It consists in placing a moderate special tax on mortgages (or in some states also on credits and other intangible personalty) in addition to the regular taxes on tangible property. Pennsylvania and Maryland have such special taxes on intangible personalty ; while special mortgage taxes are now imposed in New York, Virginia, Alabama and Minnesota. In Peimsylvania personal property (excepting horses and cattle) is exempt from local taxation; and a special tax of four mills on the a Report on Mortgage Taxation in Report of Wisconsin Tax Commission, (pp. 308, 310, 311.) 56 PERSONAL PROPERTY ASSESSMENTS dollar is levied on intangible personalty and vehicles for hire. In- tangible personalty includes mortgages, money at interest, judg- ments, bonds, notes, stocks, etc., except shares of stock in com- panies subject to the capital stock tax. While the tax is considered a state tax, it is assessed and collected by local officers, and only one-fourth of the proceeds are net revenue to the State treasury. The assessed valuation of personal property (not including cor- poration loans, which are taxed in another way) was, in 1909, over $1,140,000,000, or about eight times the assessment for intangible property in Illinois ; and on this amount the tax of four mills yielded a revenue of $4,315,411. In Maryland mortgages are exempt from taxation, except in eight counties, where a tax is levied of eight per cent on the interest charged. In Baltimore, corporation bonds and stock in foreign corporations are subject to the full state tax and to a special tax of 3-lOths of one per cent for local purposes, making a total of about 4-J mills on the dollar. Since this special tax was established the assessment of such securities has been increased, in 12 years, from $6,000,000 to $150,000,000." New York State taxed mortgages as personal property until 1905 . In that year an annual tax of five mills was imposed on each dollar of the debt or obligation secured by mortgage; but in 1906, this was again changed to a recording tax of the same amount (50 cents on the hundred dollars) to be paid once on the recording of each mortgage. The net revenue from this tax is divided equally be- tween the county and the state. The revenue to the state treasury from these mortgage taxes is shown in the following table. ^ Table 10. MORTGAGE TAX REVENUE IN NEW YORK STATE, 1906-1909. State Revenue Annual Tax, Jvily 1, 1905 to June 30, 1906. .' $ 431,323.17 Recording Tax, July 1, 1906 to June 30, 1907 2,442,249.73 Recording Tax, July 1, 1907 to June 30, 1908 1,666,527.51 Recording Tax, July 1, 1908 to June 30, 1909 1,844,821.45 A striking fact is the much larger receipts under the recording tax than under the annual tax. As the state revenue is only one-half of the net income, after paying the expense of collection, the re- ceipts for the three years under the recording tax represent from a First Conference on State and Local Taxation, pp. 406 ff. b Annual Reports of the Comptroller of .the State of New York, 1907-1910. PERSONAL PROPERTY ASSESSMENTS 57 $650,000,000, to $750,000,000 of new mortgages recorded each year, from twelve to fifteen times the total amount of credits assessed in Illinois for 1909, or from four to five times the supposed value under the rule that the taxable value is one-third of the full value. More- over nearly 80 per cent of the mortgage tax revenue in New York State comes from New York City, which contrasts sharply with the small proportion of credits assessed in Cook County, Illinois. Minnesota, in 1907, imposed a registration tax on mortgages of fifty cents on the hundred dollars, similar to that in New York, and exempting all mortgages and the debts and obligations secured by them from other taxes (except taxes on inheritances and on banks) if the registration tax is paid. The tax is paid to the county treasurer, and the revenue is apportioned in the same manner as taxes paid upon the real estate described in the mortgage. The Minnesota Tax Commission reports the registration tax on mortgages in that state as a distinct success in securing both greater revenue and also greater equality in the taxation of such securities. During the first year the revenue amotmted to $305,990.60, repre- senting mortgages covering about $60,000,000 of obligations, and this with some hesitation on the part of mortgagees to register their mortgages, owing to uncertainty as to the constitutionality of the law. The exemption from the property tax of mortgages on which the registration fee had been paid caused some reduction in the amount of credits assessed; but this reduction was only about $2,000,000 below the average for the preceding three years, repre- senting a decline of $60,000 in tax receipts, or only one-fifth of the revenue gained under the registration tax. " In Virginia, mortgages appear to be subject to several small taxes on bonds, notes, and contracts relating to real estate, which aggregate forty-five cents on the himdred dollars. In Alabama, since 1903, a privilege tax of fifteen cents on the hundred dollars is imposed on mortgages at the time of recording. The special recording tax on mortgages thus seems distinctly the most successful method of securing revenue from such invest- ments. While in some cases this tax may be shifted to the borrower, this appears less likely under the small recording tax than if mort- gages were subject to the full rate of the general property tax, of more than one per cent and sometimes nearly two per cent on the full value of property. To those who hold that any taxation of mortgages in addition to the usual tax on the encumbered property is double taxation, it may be said that the security given to the a Report of the Minnesota Tax Commission, 1908, pp. 162-168. 58 PERSONAL PROPERTY ASSESSMENTS mortgagee in the public record of his claim is a valuable privilege which justifies the rate charged for the recording tax. It may, however, be tirged that there should be no discrimination between mortgage credits and other credits ; and that all should be placed on the same basis. A partial basis for differentiation may be suggested in the fact that a recording tax on mortgages can be strictly and thoroughly enforced, while other credits are much more elusive. But the experience of Pennsylvania with a moderate special tax on intangible personal property indicates that the simple device of keeping the tax rate on such property within a reasonable limit will secure a larger return than the attempt to collect the higher rates such as are levied on real estate and tangible property. A small tax on moneys and credits (other than mortgages and cor- poration shares taxed in other ways), similar to the Pennsylvania personal property tax has been recently proposed by tax com- missions in Massachusetts and Minnesota. Other methods of taxing intangible property in the form of corporate investments are discussed in chapter X. CHAPTER IV. STATE EQUALIZATION OF LOCAL ASSESSMENTS. 1867-1872. Complaints of imdervaluations and marked inequalities in local assessments of property, urged by the Governor and Auditor, led to the passage in 1867 of "An Act to amend the Revenue laws and to establish a State Board for the Equalization of Assessments." As originally constituted, this board consisted of the Auditor and one member from each of the (25) senatorial districts, the first members being appointed by the Governor, for a term of two years, and their successors to be elected, one from each senatorial district, for a term of four years. The board was to meet on the first Tuesday in Octo- ber, and could continue in session for fifteen days (extended to 30 days in 1869) . Each member received $8.00 per diem, with an allow- ance for mileage, stationery, etc. This board was authorized to add to or deduct from the assess- ment of any county, as seemed just and equitable, so as to equalize the total valuations in each county. The act provided for a separate equalization of real property and personal property, and for combin- ing the results in a uniform rate per cent, to be added to or deducted from the local assessments. At the first session of the State Board of Equalization, rules were adopted and certain customs were inaugurated which have been, for the most part, followed in subsequent years. The board divided itself into committees, — on equalization of personal property, on equalization of real estate, and on general equalization. In equali- zing real estate, the counties in the state were grouped into classes, for each of which a certain average value per acre for lands was determined; and this was taken as the basis for adjusting the real property assessments. In equalizing personal property assessments, a series of average values was determined for various enumerated articles; and this was taken as the basis for adjusting all personal property assessments. On the adoption of the reports of the com- mittees on real property and personal property, these were referred to the committee on general equalization, whose report combining the results of the previous reports was also adopted. (59) 60 STATE EQUALIZATION OF LOCAL ASSESSMENTS In the equalization made at the first session, changes were made in the assessments of every county in the state. These ranged from an addition of 70 per cent to the local assessments of Lee County, to a deduction of 5 5 per cent from the local assessments of Kane County. Fourteen counties were increased more than 30 per cent, and 9 counties were decreased more than 30 per cent. A protest was made to the addition of 24 per cent to the Cook County assessments. The net result of the equalization on the aggregate assessment of the state was a slight increase. As a result of its first two years experience, the State Board of Equalization recommended some changes in the law ; and these were enacted by the general assembly in 1869. This act provided that the state board in making equalizations should consider each of the following classes of property separately : — lands, town and city lots, railroad property and personal property; and should determine the rate of addition or deduction to each class, and these rates should be extended against the assessed valuation of each class. From 1869 to 1872, the equalizations by the state board were made under this act. Changes were regularly made in the local assessments of practically all the counties; but the amount and percentage of additions or deductions tended to become smaller. In 1872 the aggregate net additions were $31,614,870, and the aggre- gate net deductions were $29,604,034, in a total assessment of $508,875,848.° It would appear that the board made some effort to readjust therelativebases of valuations as between the various coun- ties, but the reports of the proceedings do not show that any investiga- tion was made as to the basis of assessments or actual values of the different classes of property in various parts of the state. It is also c'lear that during this first period of the State Board of Equalization no active efforts were made to bring the assessed valuation toward the true value. From 1867 to 1872 the aggregate assessed valuation of property in Illinois shows practically no increase. SINCE 1872. Organization and Methods of the State Board of Equalization. Important changes were made in 1872 in the constitution and powers of the State Board of Equalization. The election law of April 3, 1872 provided for the election of one member of the board from each congressional district, in place of the senatorial district. This reduced the number of members from 26 to 20 (including the a cf Table VIII, p. 216 . STATE EQUALIZATION OF LOCAL ASSESSMENTS 61 Auditor of Public Accounts) . But changes in the number of Illinois members in Congress have increased the number, to 21 after 1884, to 23 after 1896, and to 26 since 1904. The time of meeting of the board was advanced in 1872 to the second Tuesday in August; and the compensation of the members was reduced to $5.00 per diem, with mileage and an allowance for stationery. Beginning with the board elected in 1908, each member receives $1,000 per annum, with mileage and stationery allowances. The board is also authorized to appoint a secretary and clerks. In regard to the equalization of county assessments, no important changes in the powers of the state board were made in 1872. The method of equalization remained as under the law of 1869, based on the separate equalization of each of the four classes of property; but the state board was not to reduce the aggregate assessed valuation in any amount, nor to add to it more than one per cent. In 1898 it was provided that the increase or decrease in the aggregate assessed valuation of the State should not exceed ten per cent. In other respects, however, the powers of the State Board of Equalization were much enlarged in 1872. It was made a board of original assessment, to value for taxation the railroad track and roll- ing stock of railroads and the capital stock of corporations organ- ized under the laws of Illinois. The first State Board of Equalization under the new organization was elected in 1872, and was organized for active work in August 1873. A new set of rules was adopted; and provision was made for the following committees: On equalization of personal property, on equalization of lands, on equalization of town and city lots, on assessment of railroad property, on assessment of capital stock of corporations, and on general equalization. Except for some changes in the rules relating to capital stock assessments, and a few minor modifications in the rules of procedure, the rules and methods of the board have remained as established in 1 8 7 3 . Th e various matters are first referred to the several committees ; and when the reports of the first three committees are submitted they are open to amendment and are referred to the committee on general equalization, whose duty it is to equalize the different classes of property with each other, and to report. The reports of the other two committees are acted on by the board as a. whole without being referred to the com- mittee on general equahzation. The published proceedings of the board show that the reports of the committees have been regularly adopted, usually by a unani- mous vote. In the early years, a protest was occasionally entered 62 STATE EQUALIZATION OF LOCAL ASSESSMENTS by a few members. But under the established practice the actual work is done by the committees, whose reports show only the changes proposed, with little indication of the methods followed or the basis on which the results are actually determined. Equalization of Local Assessments. It has already been noted that in the local assessments for 1873 there was a very marked increase in the valuation of all classes of property throughout the state — the aggregate showing an increase of about 240 per cent over that of 1872. These local assessments were in turn subjected to a more vigorous revision by the State Board of Equalization than in any previous year. The valuation of every county in the State was altered. In 38 counties the local assessments were increased, and in 64 counties they were decreased. The largest percentages of increases were in Bureau County (152%), Green County (134%), Macoupin County (121%) and Cook County (100%). The largest percentages of reductions were in Adams County (55%), Wabash County (42%) and Menard County (41%). Al- together $200,900,715 were added to the local valuations, and $198,799,381 deducted, averaging more than 16% of the total local assessments. From this year, however, along with a decrease in local valua- tions, the activity of the state board in equalizing these valuations also declined; and this decline of activity in equalizations has be- come even more marked since the increase in assessments by local assessors during the past decade. Already in 1875, no change was made in the personalty assessment of 10 counties; and in 1887, no change was made in the personalty assessment of 24 coun- ties or in the assessment of town and city lots in 30 counties. By 1877, the net total of additions and deductions was each below $83,000,000, less than a tenth of the local valuations; by 1885 the total additions and deductions were each less than $40,000,000. The range of changes also declined. Up to 1879 the maximum addition was always over 100 per cent; but in 1880, the maximum was 74 per cent; and this tended as a rule to become steadily less. Up to 1898, however, large additions were regularly made to the valuations for Cook County, ranging from 100 per cent of the local valuations in 1873 to a minimum of 16%, in 1885, and rising again to about 30%, in 1898. Since 1898, changes by the state board in the equalization of county valuations, have been even smaller in number, and for the most part, have been deductions of slight importance. In 1900, STATE EQUALIZATION OF LOCAL ASSESSMENTS 63 the personalty assessments for Cook County were increased 10 per cent, and for all the other counties except eight there was a uniform decrease of 1 5 per cent ; the valuation of lots was decreased uniformly 15 per cent in all except four counties. Since 1900, the state board has made no changes in the local assessments for personal property (except in one county in 1907); and in 1907, 1908 and 1909 no changes in the local valuations for lots. In 1907, changes were made in the local assessments for lands in only ten counties, and in 1908, in but six counties, the total changes for these years being about 1-lOth per cent and l-20th per cent of the total local valua- tions. Finally, in 1909 and 1910, the state board has not made a single change in the local assessments of any class of property." Analysis and Criticism. This marked tendency on the part of the State Board to leave unchanged the local assessments as determined by the county boards of review might, conceivably, be due to the fact that the local valuations have been approaching a common basis, and that there is now little occasion for a state equalization. This possibility can, however, hardly be seriously considered, in face of the evidence of marked inequalities in the assessment of both real and personal property. It seems clear that, if state taxes are to be levied on any- thing like a uniform basis, there is still need for some revision of the local valuations. While the tendency on the part of the State Board of Equaliza- tion to allow the local valuations to stand unchanged, does not mean that the local valuations are satisfactory, it may be due to one or more of several other causes. It may be due to simple negligence on the part of the state board ; it may be because the organization and methods of the state board are not adapted to this work; and it may be that no satisfactory method of equalization or revision of local valuations has been devised. In regard to the first of these, the official records of the state board give little information. There is nothing in the published proceedings to show what efEorts may be made by the committees or the individual members of the board to inform themselves of local assessment conditions. In the absence of any evidence, it is probab- ly not unfair to judge that neither the individual members, nor the committees, make any close study of local assessments, and that the equalization changes, when made, have been based at best on the haphazard guesses of the various members. ~^7f Tables VIII and IX, pp. 216-217. 64 STATE EQUALIZATION OF LOCAL ASSESSMENTS Even if some improvement could be secured by a more active membership, it seems more clear that the constitution of the board is by no means adapted to an effective investigation of local assess- ments. The purpose of the present organization seems to have been to secure a board, the various members of which would be ac- quainted with assessment conditions in different parts of the state. But there is no basis for the assumption that the several members have a thorough knowledge of conditions over a whole congressional district, or even over a single county; and the practical operation of the board indicates that whatever has been done in the way of equalization has been based on vague suppositions, and the disposition of each member to secure as low a valuation for his dis- trict as possible. For illustration, it may be shown that the marked cases of in- equalities in assessed valuations indicated by comparisons with the census estimates of true value have been accentuated rather than decreased by the action of the state board. Thus the apparently excessive assessment of real estate in Hardin County in 1900 was increased by an addition by the State Board of Equalization of 25 per cent to the local assessed valuation of lands and 50 per cent to the local assessment of town and city lots; while at the same time the counties with the lowest proportionate assessment had the bene- fit of important deductions by the state board. Again, in 1904, when, according to the census estimates, real estate in Hardin County was assessed on a basis of about 50 per cent above that in Will County, the disproportionate valuation was by no means ad- justed by the action of the state board in adding 6 per cent to the local assessment for lands in Hardin County and 10 per cent in Will County, with no changes in the local assessment of lots in either county. Moreover, during the past ten years, at least, the state board has failed to equalize assessed valuations in accordance with the changes suggested by their own methods. Thus in 1900, the tables, submitted by the committee on the equalization of personal property showed, that in order to bring the assessed value of enumerated personal property to the state average, additions were required in 56 counties, ranging as high as 40 per cent and over in several cases; and deductions in 42 counties, ranging as high as 24 per cent in one case. While this table was nominally the basis for the changes made in the personal property assessments, in fact the local assessment was increased only in the case of Cook County (where the table of aver- ages indicated a deduction of 1 6 per cent) ; and in all the other STATE EQUALIZATION OF LOCAL ASSESSMENTS 65 cotinties but eight there was a uniform deduction of 15 per cent. Since 1900, the committee on personal property has regularly sub- mitted each year a table showing additions and deductions needed in most counties in order to bring the assessment of enumerated property to the state averages ; yet no changes whatever have been made in personal property assessments. Similarly the additions and deductions made to the local assess- ment of lands vary to a considerable degree from those indicated by the classified value of lands determined by the committee on lands. Thus, in 1900, on the basis of classified values, additions should have been made to the valuation of land in 49 counties and deduc- tions in 43 coimties; in fact, additions were made in only 13 counties, and deductions were made in 83 counties, the deductions being usu- ally larger than those indicated by the comparison of assessed and classified values. In 1909, the committee submitted the usual table showing the percentage of addition or deduction needed, in almost every county, to make the assessed value equal to the classi- fied value of lands — amounting in one case to a deduction of 25 per cent. Yet not a single change, either by addition or deduction, was made in the local assessment of lands for that year. An examination of the equalization changes made indicates further a distinct tendency on the part of the members of the State Board of Equalization to secure a low assessment for their own dis- trict or county. Of the large changes made in 1873, the principal additions were to the local assessments of Cook County and the 18th and 19th congressional districts; and the members from these districts voted against the committee report and entered a protest. In other districts where additions were made to the local assessment of some counties, it is significant that in most instances these were not the counties in which the member of the state board resided, and that the assessment of such counties was generally reduced. In subsequent years, it is also noticeable that additions have been con- centrated in a few congressional districts; and have seldom been made in the case of cotmties where the members of the State Board of Equalization reside. There seems little doubt that the Illinois State Board of Equaliza- tion, as now constituted, is a clumsy and inffective body. A board of twenty-five members is much too large for either the work of equalization or the valuation of railroad property and capital stock; and the practice of delegating the work to committees helps further to weaken the responsibility of the members. Moreover, being (5) 66 STATE EQUALIZATION OF LOCAL ASSESSMENTS nominated and elected during the excitement of a presidential cam- paign, little or no public attention is given to the candidates for this board. To be in any degree effective, the equalization, or supervision in other ways, of local valuations should be based on a detailed and intensive examination of local assessment methods and results. Such investigations can be more thoroughly made by a small number of expert state officials, devoting their whole time to problems of taxation, and free from local bias, than by large number of officials elected for local districts and giving but a small part of their time to this work. In other words, the work of assessing and supervis- ing the assessment of property for taxation is an administrative function, calling for expert, technical skill; it is not in any sense a political function, where the results should in any degree be affected by political views ; and the only principles to be followed are those of honesty, equity and efficiency. The Revenue Commission of 1886, recommended, nearly twenty- five years ago, the substitution for the State Board of Equalization of a small board of TaxCommisioners, to be appointed by the Governor. The experience of other states, such as Indiana, Wisconsin and Min- nesota, shows that a small tax commission, paid enough to secure men of ability, is much more efficient in supervising local assessments than such a body as the present State Board of Equalization in Illi- nois. The only state with a body of somewhat similar organization has been Ohio; where the duties imposed were much less than in Illinois ; and even in that state the large state board of equalization has just been abolished, and in its place a small tax commission has been established. There can be no question that a board of three to five members would be much more efficient than is the present bodv. STATE EQUALIZATION OP LOCAL ASSESSMENTS Table 11. 67 CHANGES IN LOCAL ASSESSMENTS BY THE STATE BOARD OF EQUALI- ZATION, 1869-1909. [From Proceedings of the State Board of Equalization.] Number of Counties Number of Highest Average Unchanged Counties Percentage Year. personal in- de- DE- property lands lots creased creased ADDED DUCTED 1869 1 5 10 13 2 4 10 17 41 1 11 33 1 1870 1871 * 1872 1873 38 64 152 55 1874 2 1 29 72 129 43 187S 10 1 38 63 122 38 1876 4 6 4 40 62 116 41 1877 1 1 5 43 58 141 39 1878 9 8 9 44 53 104 37 1879 3 4 7 42 55 102 26 1880 5 10 4 40 58 74 33 1881 2 3 7 42 59 74 23 1882 16 5 7 42 55 79 23 1883 12 4 18 39 57 79 22 1884 16 4 21 33 65 74 25 1885 23 12 34 33 61 51 42 1886 13 5 21 29 70 49 31 1887 24 8 30 27 68 42 28 1888 7 4 12 33 66 63 36 1889 16 3 12 32 67 45 40 1890 19 8 20 31 68 49 35 1891 18 7 21 17 82 52 35 1892 16 10 29 26 72 48 31 1893 13 9 21 41 55 53 34 1894 24 9 36 28 68 46 31 1895 21 18 42 31 56 63 31 1896 23 10 43 30 64 58 35 1897 49 38 14 29 64 73 25 1898 39 19 42 20 71 45 27 1899 All 7 56 51 45 28 14 1900 8 6 1 7 93 16 30 1901 All 26 99 43 34 32 28 1902 All 17 98 45 38 24 17 1903 All 35 79 19 51 20 32 1904 All 35 77 20 51 20 31 1905 101 52 83 8 48 18 17 1906 All 56 83 6 47 11 IS 1907 All 92 All 4 6 6 4 1908 All 96 All 2 4 5 3 1909 All All All CHAPTER V. ASSESSMENT AND TAXATION OF RAILROADS. Local Assessments. Before 1873, railroad property in Illinois, with the exception of that of the Illinois Central Railroad, was assessed and taxed by local assessors in much the same manner as real estate and personal property owned by individuals." From 1856, the assessed valua- tion of railroad property is reported separately. In 1856 railroad property in Illinois was assessed for $6,639,220, out of a total assessed valuation of property in the State of $349,951,372. The valuation of railroad property was increased by steps to $14,707,097 in 1866, out of a total assessed valuation in the state of $410,894,093. The proportion of railroad property to the total had increased during the ten years from 1.9 per cent to 3.8 per cent. In 1867, the State Board of Equalization was established, with power to equalize the assessed valuations as between counties ; and the equalizations of this board affected the valuations of railroad property as well as other property. The local assessments for 1867 had shown an increase over those for 1866 ; but these valuations were further increased by the equalizations by the State Board to $16,854, 640. In 1868, valuations both of railroad and other prop- erty were somewhat reduced; but in the years following, were in- creased; and in 1871, there was a marked increase of railroad valuations (as equalized) to $25,516,042, or about 5 per cent of the total assessed valuation of property in Illinois. State Assessments. ' The revenue law of 1872 provided that "railroad track" and ' 'rolling stock' ' of railroads should be assessed by the State Board of Equalization, and also provided for the assessment of the capital stock of all corporations. Since then, the valuations made by the a An Act of 1849 required railroad property to be listed with the Auditor of State, to be taxed at the same rate as similar property owned by individuals, the revenue to be paid into the State Treasury and applied to the payment of the State Debt. In 1851, however, another method of assessment was provided. (Laws of 1851, pp. 54-5; Revised Statutes of 1864, p. 947.) (68) ASSESSMENT AND TAXATION OF RAILROADS 69 State Board of Equalization for ' 'railroad track' ' and ' 'rolling stock, ' ' and in some years an additional assessment on capital stock, has formed much the greater part of the assessed valuation of railroad property; although some railroad property is still assessed by the local assessors. For purposes of taxation railroad property is classified under five heads : (1) The right of way, including superstructures of main, side or second tracks and turnouts, and the stations and improvements of the railroad company on such right of way, held to be real estate for purposes of taxation and denominated "railroad track." (2) Movable property (locomotives and all manner of cars) belonging to the railroad company, held to be personal property for purposes of taxation, and denominated "rolling stock." (3) Real estate, including stations and other structures, other than that denominated "railroad track," listed as lands or lots in the local taxing district. (4) Personal property other than that denominated "rolling stock." This includes tools, and materials for repairs, office furni- ture and the like. (5) The capital stock, or rather the excess value of the capital stock (if any) , over the valuation of the several classes of tangible property. The first, second and fifth classes are valued by the State Board of Equalization; and the third and fourth classes by the local assesors. Some questions have arisen in determining just what is included in the term "railroad track," and so subject to assessment by the state board. It was a mooted point whether shops, round houses, etc., located on land adjoining the main track should be considered as "railroad track." The courts have given the term a broad inter- pretation — holding in one. case that a strip of land 500 feet in width, on which were located round houses, shops, etc., is properly included in "railroad track;" and in another that the land held and in actual use for side tracks, switches and turnouts, must be regarded as part of the right of way of a company, notwithstanding it may have machine shops, depots, round houses and other superstructures thereon, necessary for the use of the road." The courts have also held that a bridge over a navigable stream forming a boundary line between this state and another, owned and constructed by a railroad a C. R. I. & P. R. R. Co. V. The People, 4 111. App. 468, (1879). C. & A. R. R. Co. V. The People, ex rel.. 98 111. 350, (1881). 70 ASSESSMENT AND TAXATION OF RAILROADS company and used as a part of its line, should also be regarded as railroad track as defined by the revenue law.'' It has also been held by the Supreme Court of Illinois that a leased railroad becomes the property of the lessee for purposes of taxation;* but that the running of trains over the road of another railroad company under a mere easement or license, does not make such company an occupant with any vested interest in the road within the tax laws;'^ that elevated railroads, organized under the general law for the incorporation of railroad companies, are railroads and not street railways for purposes of taxation, and are subject to assessment by the State Board of Equalization;'^ and that a railroad is liable for taxes on Pullman cars used on its road as sleeping cars, though the cars are owned by the Pullman Company/ Every person, company or corporation, owning, constructing or operating a railroad in the state, is required to make out and file with the county clerks a statement or schedule showing the property held for right of way and the value of improvements ; and annually in the month of April (before 1898 in May) to report the value of such property, and a detailed inventory of all the rolling stock belonging to such company. Personalty and real estate other than railroad track and rolling stock, must also be listed and assessed in the local taxing districts. At the same time, sworn statements or schedules must be re- turned to the Auditor of Public Accounts : First — Of the property denominated "railroad track," giving the length of the main and side or second tracks and turnouts, and showing the proportions in each county and the total in the State. Second — The "rolling stock," giving the length of the main track in each county, the total in this state and the entire length of the road. Third — Showing the number of ties in track per mile, the weights of iron or steel per yard, used in main and side tracks ; what joints or chairs are used in track; the ballasting of road, whether gravel or dirt ; the number and quality of buildings or other struc- tures on railroad track;" the length of time iron in track has been used, and the length of time the road has been built. Fourth — A statement or schedule showing the amount of capital stock authorized, and the number of shares into which it is divided; the amount of capital stock paid up; the market value, or if no market value, then the actual value of the shares of stock ; the a Anderson v. C. B. & Q. R. R. Co. 117, 111. 26, (1886). b Huck, et al, v. C. & A. R. R. Co. 86, 111. 352, (1877). c Cook County v. C. B. & Q. R. R. Co. 35, 111. 460, (1864). d Knopf V. Lake St. El. R. R. Co. 197, 111. 212, (1902). e Kennedys. St. L., V. & T. H. R. R. Co, 62, 111. 395, (1872). ASSESSMENT AND TAXATION OF RAILROADS 71 total amount .of indebtedness, except for current expenses for operating the road ; and the total listed valuation of all its tan- gible property in the State. In case of failure to make returns to the Auditor, this officer is required to ascertain the necessary facts and lay them before the State Board of EquaHzation. Any company or persons failing to make the required statements shall forfeit not less than $1,000 nor more than $10,000 for each offence, to be recovered in any proper form of action. The Auditor lays before the State Board of Equalization the statements and schedules returned to him ; and this board determines the valuation to be placed on the "railroad track" and "rolling stock' ' of each railroad, and the capital stock of each railroad com- pany. In making its valuation, the State Board of Equalization is not bound by the valuation placed upon the property by the rail- road ; but uses the statements as it does other information to arrive at the value of the property. The board is given power and authority, by committee or otherwise, to examine persons and papers ; but according to an opinion of the Attorney General, it has not power to compel the attendance of a witness or the production of papers as evidence. It is not clear what are the exact methods followed by the State Board of Equalization in determining the valuation of railroad property. Apparently the assessment for second and side tracks, rolling stock and improvements on the right of way are separately estimated ; and the assessment for the main track and right of way is arrived at by deducting the assessment of the items separately estimated from what is determined as the valuation of the whole property. The valuations made by the State Board of Equalization are apportioned to the various counties and certified to the county clerks ; and the county clerks in like manner distribute the value to the several towns, districts, villages and cities in their respective counties. The value of "railroad track" is listed and taxed in the several counties and local districts, in the proportion that the length of the main track in such county or district bears to the whole length of the road in the state, except the value of the side or second tracks, and all turnouts, and all station houses, depots, machine shops or other buildings, which are taxed in the county, or district in which they are located. The valuations of "rolling stock" and of capital stock are also apportioned in the same way as "railroad track" — on the basis of the mileage of main track. 72 ASSESSMENT AND TAXATION OF RAILROADS For the year 1873 (the first under this system of assessment) the total assessed valuation of railroad property was $133,520,633, more than five times that for 1872, and nearly ten per cent of the total assessed valuation of property iri the state. The State Board of Equalization valued the "railroad track" and "rolling stock" at $59, 317,408, and the capital stock of railroads at $64,611,071 ; while the railroad property assessed by local assessors had an equalized valuation of $9 , 5 92 , 1 54. The railroad valuations for this year seem to have been disproportionately heavy, in comparison with other property. This was due mainly to two factors. The railroads had exaggerated the amount of their outstanding debts, supposing that these would be deducted in determining the value of their capital stock ; while in fact the debts were added to the value of the capital stock. At the same time the State Board of Equalization assessed the railroads at the full value of their property, while other property locally assessed was placed at less than its full value. In 1874, there was a marked reduction from the assessed valua- tions of 1873 ; and this was followed by further reductions for several years. The State Board of Equalization made a reduction of 40% to equalize railroad assessments with that of other property; and with other changes this reduced the valuation for 1874 of "railroad track" and "rolling stock" to $43,529,716, and capital stock to $31,314,175 (less than half the valuation for 1873), and property locally assessed to $6,863,707. The total valuation of railroad property in the state was $81,707,598, about 6.8% of the total valuation of all property in Illinois. In 1875, railroad valuations were reduced by 50% for purposes of equalization, and the total valuation of railroad property was decreased to $60,486,343. By 1876, the capital stock assessments of railroads were reduced to $10,106,258. In 1877, the capital stock assessments for railroads disappears entirely; but there ^\'as an increase in the valuation of "railroad track" and "rolling stock."" In 1878, the total railroad valuation reached a minimum of $40,461,865, less than five per cent of the total assessed valuation of all property in the state, a smaller proportion than in 1872, before the new method of assessment was introduced. After 1878, the assessed valuation of railroad property increased steadily, and at a rate greater than the increase in the total assessed valuation of property in Illinois. In 1890, although railroad valu- ations were reduced 75% for equalization, the total was $75,310,524, a The State Board of Equalization elected in 1876, had only two members who were klso on the board elected in 1872. : J> U U U TTtlrg " '^ ? ^.i g s-2 s;? S"S S ? J S X /9i>j'-rTOC[ ao /h/Oi-T-Tiv (73) 74 ASSESSMENT AND TAXATION OF RAILROADS or 9.4 per cent of the total valuation for all property. For the next decade, railroad valuations, like other valuations, were almost stationary. In 1900, the total assessed valuation of railroad prop- erty was $80,627,321, almost ten per cent of the total assessed valuation of all property in the state. Table 12. COMPARISON OF RAILROAD ASSESSMENTS AND ASSESSMENTS OP GENERAL PROPERTY IN ILLINOIS, WISCONSIN AND MICHIGAN. Taxable Value. Per Cent R. R. Year. Property Railroad General OF General Property. ILLINOIS, Property. Property. 1898-1909. 1898 $ 78,624,036 $ 699,486,640 11.2 1899 79,072,674 874,839,223 09.0 1900 80,627,321 727,046,103 11.1 1901 89,103,268 891,448,546 10.0 1902 92,156,263 919,316,704 10.0 1901 94,303,821 977,214,968 09.6 1904 95,033,412 976,584,939 09.7 1905 97,728,276 989,104,340 09.9 1906 102,721,035 1,015,653,662 10.1 1907 107,497,141 1,138,622,398 09.4 1908 110,397,824 1,139,299,589 09.7 1909 186,514,540 1,944,595,135 09.6 WISCONSIN, 1904-1908. 1904 $218,024,900 $1,804,187,000 12.1 1905 228,810,000 1,890,841,000 12.0 1906 237,239,500 1,997,342,822 11.9 1907 255,850,000 2,124,800,000 12.0 1908 267,861,500 2,291,638,529 11.7 MICHIGAN, 1902-1907. 1902 .«S198,641,000 $1,418,251,858 14.0 1903 222,106,000 1,537,355,738 14.4 1904 196,795,000 1,529,969,350 12. .9 1905 202,651,000 1,574,422,770 12.8 1906 207,068,000 1,598,935,606 12.9 1907 207,130,500 1,654,371,892 12.5 In 1898, the statutory rule that the taxable value should be one-fifth of the market value of property was applied to railroad ASSESSMENT AND TAXATION OF RAILROADS 75 property; and beginning with 1901, capital stock assessments have been made for a few companies, mainly the elevated railroads in Chicago; but these assessments have been but a small factor, reaching a maximum of $3,215,978 in 1906. In 1908, the assessed valuation of all railroad property in Illi- nois was $110,397,824 — an increase of 37^ per cent since 1900; but this was less than the increase in the assessment of other prop- erty, and the proportion of the total assessed valuation of all prop- erty in the state had decreased to less than 9 per cent. In 1909, railroad property, like other property, was assessed under the new rule at one-third of the market value ; and the total taxable valuation showed a marked increase to$186, 514,5 40. Other property, however, was increased at the same ratio; and railroad property was assessed relatively to other property, practically the same as in 1908." Complaint is made that the present method of apportioning the valuation of railroad property is unfair to Chicago and Cook County. The valuation of main line and right of way is apportioned to the various counties on the basis of main-line mileage, assigning to Chicago and Cook County for the valuable terminal lines only the the amount based on the few miles of main track within the county although the value of the terminal in a large city, whether measured by its purchase price or its service value, is much higher than the same amount of land in a rural district. Some years ago the city brought suit in the courts, claiming that the terminal property of the railroads should be assessed by the local assessors as real estate ; but the Supreme Court of the State decided in favor of the present system.* There are important advantages in assessing railroad property as a unit, rather than by numerous local assessors; but the ad- vantage of central state assessment could be retained with a more equitable apportionment of the valuation to local districts. Professor B. H. Meyer, the transportation expert of the census bureau, has stated that the main line mileage basis for apportion- ing valuation is the least satisfactory of the various methods now considered. An apportionment on the basis of gross earnings, or a combination of gross earnings and total mileage, would secure a more equitable distribution of value as between Chicago and other cities on the one hand and the rural districts on the other. ^ a cf Table X, p. 218. b People ex rel Chicago v. State Board of Equalization, 205 111. 206. c C. E. Merriam: Municipal Revenues of Chicago, pp. 80-82. 76 ASSESSMENT AND TAXATION OF RAILROADS Another solution of this and other difficulties, would be to hav6 railroad taxes (at the average rate for the state) paid into the state treasury for state purposes, and in return to abandon the state tax on locally assessed property. Illinois Central Railroad. By Act of 1851, in consideration of the grants, privileges and franchises conferred on the Illinois Central Railroad Company, the company was to pay into the State treasury five per cent of the gross or total proceeds, receipts or income, beginning after four years. It was also provided that the stock, property and assets of the com- pany should be exempt from taxation for six years; after which it should be subject to a state tax, not to exceed three-fourths of one per centum per annum, in addition to the five per cent of gross in- come. Further, if the five per cent of gross income and the state taxes do not amount to seven per cent of the gross or total proceeds, the company is to pay the difference up to seven per cent of the gross receipts of the corporation. Under these provisions, the company made its first payments, for the period from March 24, 1855 to April 30, 1856, of $61,280.59, or five per cent of the gross receipts. In the following year pay- ments were made partly at five per cent and partly at seven per cent; and since then the company has paid into the state treasury seven per cent of the reported gross receipts. The payments increased steadily until the year ending April 30, 1865, when $476,012.80 was paid in. After that the amounts fluctuated; and after 1873, decreased to a minimum of $318,837.59 in 1879. In the following years the payments gradually increased; but not until 1890, when $478,377.42 was paid in, did the amount reach as high as 1865. Since then the payments have continued to increase rapidly. The year ending April 30, 1894, was a maximum, when gross receipts of $10,390,838.40 were reported, and $727,358.69 was paid into the State treasury. These amounts were not surpassed until 1900. During the last decade there have been further increases, the highest amounts being for the year ending April 30, 1910, when payments of $1,197,280.02 were made as seven per cent of the gross receipts of $17,104,000.28." These payments are made only for the charter lines of the Illi- nois Central Railroad; and a number of more recently added divi- sions are assessed by the State Board of Equalization and are sub- ject to the usual state and local taxes. a cf Table XI, p. 219. ASSESSMENT AND TAXATION OF RAILROADS 77 The amount paid by the other railroads in Illinois as taxes during the past ten years has been from $3,500,000 to $4,500,000 annually. The payments by the Illinois Central Railroad on its charter lines, have during these years ranged from $809,438.83 to $1,197,280.02, or about one-fourth of the amount paid" in taxes by the other rail- roads . It has been estimated that the payments by the Illinois Central Railroad since 1900, have been about four times as much per mile of main track as the average of taxes paid by other railroads. But it should be remembered that the payments of the Illinois Central Railroad are not merely in lieu of taxes, but also represent a return for the lands granted and other special privileges of that road. In 1907, Governor Deneen, in a special message to the General Assembly, urged that the payments made by the Illinois Central Railroad have been less than is due the state. Attention was called to important items of income not included in the reported gross receipts, and also to the method of apportioning receipts between the charter lines and more recently acquired lines, which seem to favor the latter and thus reduce the amount of the receipts reported for the charter lines on which the seven per cent payments to the State are calculated." In a suit brought by the Attorney General the Supreme Court has recently decided that the railroad company must give an ac- counting (beginning with the year 1905) in accordance with methods described in the opinion of the court.'' Railroad Taxes. Comparing the amount paid by the railroads for taxes and other purposes in Illinois with the taxes paid other states, on the basis of miles of line, the average mileage payment in Illinois for all railroads ($441 in 1908) is somewhat over the average for the United States ($382) ; but Illinois is surpassed by a considerable number of other states. In several of the small and densely settled eastern states, such as Massachusetts, Connecticut, Rhode Island and New Jersey, railroad taxes per mile of line, range from $1,000 to nearly $2,000. In New York, railroad taxes for 1908 amoimted to $672 per mile; in Peimsylvania to $554, and in Maryland to $675 ; in Ohio to $576, in Indiana to $490, and in Washington to $549. The average for Illinois is, however, increased by including the payments by the Illinois Central Railroad, which cover more than a Governor's Special Message, January 10, 1907. h State of Illinois v. Illinois Central R. R. Co. (Opinion filed Oct. 28th, 1910.) 78 ASSESSMENT AND TAXATION OF RAILROADS taxes. The taxes proper paid by railroads, excluding the gross earnings payments by the Illinois Central, amounted to less than $400 per mile ; which is less per mile than is paid in Michigan, Wis- consin and Minnesota, as well as the other states named above. Comparisons on other bases also indicate that the railroads pay relatively less taxes in proportion to their business in Illinois than in other states; and that in recent years railroad taxes in Illinois have increased at less than the general rate and much less than the increase in their earnings would justify. The table below shows the gross and net earnings and taxes paid by the railroads in Illinois from 1885 to 1908. In 1895, the taxes (including gross earnings payments by the Illinois Central Railroad) were $3,855,761, which was 5.5% of the gross earnings in Illinois; and in 1897 they were equal to 5.8% of the gross earnings in Illinois. In 1908, the taxes, etc., (as reported to the State Railroad and Warehouse Commis- sion) had increased to $5,833,225 ; but this was now only 3.3% of the gross earnings. From 1889 to 1899, the taxes amounted to over 4.8% of the gross earnings for each year but two; while since 1902, they have been less than 4% of the gross earnings, the percentage tending to decline, and in 1907, taxes were barely 3% of the gross earnings. It thus appears that the total taxes paid by the railroads in Illinois are a distinctly smaller share of the gross earnings than in Minnesota, where a tax of 4 per cent of the gross receipts is levied, while the Tax Commission of that state believes that this rate should be increased. It should also be remembered that the aver- age percentage of gross earnings is increased by the payments at the rate of 7 % of gross earnings made by the Illinois Central Rail- road. Excluding these, the taxes proper paid by other railroads in Illinois in 1908 were little more than 3% of the gross earnings. On the basis of net earnings, or of total net revenue, a similar relative decline is shown. In 1889, railroad taxes were 14.53% of the net earnings in Illinois; in 1895, they were 17.76% and in 1897, were 17.17%; while in 1907, they were only 9.7%, and in 1908, but 11.17%. While net earnings increased 84% (from $28,364,072 in 1896, to $52,178,858 in 1908) taxes increased only 38%, (from $4,212,389 to $5,833,225). Deducting the Illinois Central Railroad payments, the increase in other railroad taxes from 1896 to 1908 was barely 30%. During the same period, the total of state and local property taxes levied in Illinois increased 6 1 % ; so that the increase in railroad taxes has been only about half of the general rate of increase in tax- ation on property. Diagram C. Pbrcbhtagb of Railroad Taxes in Illinois to Gross Earnings, Net Earnings and Total Net revenue, 188S-1909. % ■■"" —mm r- ?n \'^ ipi 1 } 17 \ ! . .._ — / \ 1 [P> / \ / \ L / \ / \ 1 >; \ / \ / \ / \ \ 14 / f \ ■ { ^<< ; \ / ! \ 1 \ \ > >< 1 ^ / \ / / 1 \ 1 1 \ \ ? ^f A. i 1 1 \ 1 1 \ \ % 12 ^ ^ 1 ) \ \ f ) ''vS- / / ^( ^. ' \ \ \ / \ II / \ / i \ ( ! \ I / s ) / < f \ \ N 1 v / in / ( re n \L N El ' f :e Jt NU e\ i \ / i \ 1 ( r \ \ / \ \ ) 9 \ ■-■^ / ) \ 1 ? > 1 6 \ \ \ 1 6 / \ "^ i" \ — - t >*-, >— ( )s . - > >— ( < > r' '\ v^ ).. 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S CO H « « 5 " O m^^ 0. O > ° ZPh o w 2 1—1 o ■z a 2 « coO^OoO-^fOCNT-l CNOCNCOOOt^OOCM vo^CMc^tOOOfCOoO ro O O 00 ro fO r^ O fo OOOOOOCS'^t^^lO i>.t^^O00^00CSl 00---H^O0000r^(N^ COOnOOO-^CN^ InO'-ttMr^OOfO-rH OOOOOOOOO 'S pi! c o w o a. o o O o O P. S o O (6) 82 ASSESSMENT AND TAXATION OF RAILROADS Tables xiii and xiv (pages 222 and 223) give data as to the assessed valuation and the operating earnings and expenses and taxes paid by a number of the principal railroads in Illinois. These show wide variations between the different railroads. Assessed valuations range from less than $6,000 to $217,023 per mile. The latter figure (for the Pittsburg, Fort Wayne & Chicago) and the other valuations over $100,000 per mile are for roads which have little more than terminal property in Illinois; and illustrate the higher value of such property as compared with the value per mile of other roads. This tends to confirm the claim that Cook County should be apportioned a larger portion of the total valuation of other roads than is represented by the main line mileage, on account of the terminal property in that county. Of the roads running west from Chicago, the highest assessed valuation per mile is $30,339, for the Chicago, Rock Island & Pacific. Taxes paid per mile of line vary in the main with the variations in assessed valuations per mile of line, — much the largest average being paid by the Lake Shore & Michigan Southern and the Penn- sylvania lines. Next to these are the taxes and other payments by the Illinois Central Railroad (averaging $706 per mile in 1908) and the taxes of the Chicago, Rock Island & Pacific (averaging $625 per mile) . The minimum shown in the table is for the St. Louis, Iron Mountain & Southern Railway Company, whose taxes amotm- ted to $177 per mile. Large variations in the taxes per mile of road are to be expected, whether the valuation and taxes are based on cost of construction or on earnings ; and the variations on this basis in general simply indicate, as would be expected, that the most important roads, with the largest business and the best roadbed and equipment pay more per mile than the weaker and more cheaply equipped lines. But whether these differences are adjusted with anything like fairness between the different roads is not indicated by such figures. Some light on this point may, however, be indica- ted by the figures in the column showing 'the percentage of taxes paid to the net earnings reported. An examination of the relation between taxes and net earnings for the different roads shows here too some very wide variations, which indicate that the present method of assessment and taxation bears relatively more lightly on some roads and more heavily on others. A few roads report no net earnings assignable to Illinois; but in at least some of these cases it would appear that the basis of apportioning earnings and expenses is at fault. There is evidently something wrong in the apportionment which shows that the ASSESSMENT AND TAXATION OF RAILROADS 83 Pennsylvania lines do not earn sufficient to pay operating expenses in Illinois. Defective methods of apportionment may also be used in the case of other roads; but they are not so self-evident. A comparison of the ratio of taxes to net earnings on the most important railroad systems is of especial interest (see Table xiii.) This shows that the total payments of the Illinois Central Railroad to the State and local authorities in 1908 were 14% of the net earn- ings; the taxes of the C.B.& Q.R.R.Co., paid in Illinois were 10.3% of the net earnings in Illinois; while the Illinois taxes of the C. M. & St. P R'y. were only 7.1% of the net earnings, those of the A. T. & S. F. R'y. Co., 7%, those of the C. & N. W. R'y. Co., 6%, and those of the C. R. I. & P. R'y. Co., 7.3%. Such variations are considerably greater than should be ex- pected if earnings were to any large extent considered as a factor in determining the valuation of the railroad property. Similar variations appear if the taxes paid are compared with gross earnings, and such a comparison shows that a number of the most important railroads in Illinois, (such as the C. & N. W., the C. M. & St. P., and the C. R. I. & P.) paid in 1908 considerably less taxes than three per cent of their gross earnings in Illinois. Similar results are indicated by the data compiled by the Audi- tor of Public Accounts for the year ending Jione 30, 1909 (see Table XIV, page 223). The total taxes on railroads charged in Illinois show an increase to 3.58 per cent of the gross earnings in Illinois. But considerable variations are shown as between different railroads ; and the taxes for some important systems were less than 3 per cent of the gross earnings in Illinois, — for the Chicago and Northwestern system 2.54 per cent and for the Chicago, Milwaukee and St. Paul lines only 2.01 per cent of gross earnings. CHAPTER VI. ASSESSMENT OF CORPORATIONS BY THE STATE BOARD OF EQUALIZATION. Revenue Law of 1872. The Illinois State Board of Equalization, as established in 1867, had only power to equalize local valuations. But the revenue act of 1872, the result largely of the work of the state board, extended its powers to include the assessment of "railroad track " and "rol- ling stock " of railroads and the capital stock of corporations or- ganized tuider the laws of Illinois. The revenue law required cor- porations subject to assessment by the state board to make sworn statements as to the amount and value of capital stock, the amount of indebtedness (except for current expenses) and the assessed valuation of its tangible property. The law also authorized the state board to adopt rules and regulations for ascertaining the fair cash value of such capital stock; and the state board adopted rules in Sept. 1873, providing that the value of the capital stock should be determined by adding to the market value of stock the market value of the debt (excluding that for current expenses) and deduct- ing therefrom the equalized assessed valuation of the tangible property of each company. The authority of the board to adopt its rules, and the fairness of the rules first adopted, were sustained by the courts." From the begirming, however, many corporations have failed to make the required returns ; and many of those made have been de- fective. Efforts by the state board to secure information have also failed ; and, according to the Attorney General, the revenue law pro- vides no penalty for any person or corporation which fails or refuses to furnish the lists and statements required in the law. First Assessments. Nevertheless, the first assessments by the state board in 1873, made large additions to the total assessed value of property, and at the same time local property assessments were also largely increased. But the following year showed a notable reduction, especially in a Porter v. Rockford, R I. & S. L. R. R. Co., 76 Ills. 563 (1873). (84) ASSESSMENT OF CORPORATIONS 85 assessments by the state board; and this was followed by further reductions, and then by an almost stationary aggregate valuation until after 1900. At the assessment of 1873, the state board found the equalized value of railroad track and rolling stock to be $59,317,408. The excess value of capital stock of railroads was assessed at $64,6 1 1 ,07 1 ; and the capital stock assessments of corporations other than rail- roads was $21,898,451. The latter amount was assessed on 212 corporations, including 34 public service corporations assessed at $6,325,216, and 178 other corporations assessed at $15,573,235. Local assessments of real and personal property had been in- creased about three fold, from$508,875,848 in 1872, to$l, 210, 237, 130 in 1873 ; and the total assessed valuation of the state was increased from $510,886,683 to $1,355,401,317 " Decline in Assessed Valuations. While the litigation against the methods and valuations of the state board resulted in its favor on most points,*" some changes were made in 1874 in the manner of equalizing assessments, and there was a large reduction in all valuations, especially those made by the state board. The valuation of railroad property was reduced to $43,529,716; railroad capital stock to $31,314,175 .(less than half of that for the year before) ; and capital stock assessments of other corporations were only $11,719,216," although a larger number of corporations were assessed than in 1873. In 1875 there were fur- ther reductions in the assessments by the state board, especially in the capital stock of corporations other than railroads, of which only 100 were assessed, at a total valuation of $4,802,112. In 1876, the capital stock assessments for corporations other than railroads was only $3,373,351. In 1877, the capital stock assessments on railroads disappeared; and the capital stock of other corporations was assessed on but 34 corporations, aggregating $1,605,783. The total assessments by the state board for this year were $38,746,963, compared with $146,847,298 in 1873. In 1880, capital stock assess- ments reached the minimum of 29 corporations, assessed for a total of $2,191,488." cf. Tables I, p. 202, VIII, p. 216 and XVI, p. 225 The assessment of the Western Union Telegraph Co. was held to be invalid, as this was not an Illinois corporation, cf. Table XV, p. 224 86 ASSESSMENT OP CORPORATIONS Amendments to the Revenue Law. To some extent the reduction in capital stock assessments was aided by changes in the law. In 1875, the revenue lawwas amended to provide that companies for manufacturing purposes, for printing or for publishing newspapers or for improving and breeding of stock, should only be assessed in the same manner as individuals. Some corporations in these classes appear, however, to be assessed by the State Board of Equalization; until in 1879 a further amend- ment distinctly provided that such corporations should be assessed by the local assessors in the same manner as individuals. In 1893, companies for mining and selling coal were also excepted from assessment by the State Board of Equalization. In 1905, another amendment to the revenue law added corpora- tions for mercantile purposes to those excepted from assessment by the state board ; and, further, provided that the capital stock of the various classes of corporations excepted from assessment by the state board should be exempted from any capital stock assessment whatever. This amendment was enacted without the approval of the governor. In connection with the amendment of 1879, Attorney General Edsall rendered an opinion to the State Board of Equalization that the exemption of certain corporations from assessment by the state board left their capital stock subject to assessment by the local assessors." Following the amending act of 1905, the Attorney General held that the amendment to Section 1, exempting the capital stock of certain corporations from any assessment, to be unconstitutional. The Supreme Court has expressed the same view, holding that the legislature has no power to exempt such property from taxation; and that where the legislature has exempted certain classes of corporations from the jurisdiction of the State Board of Equaliza- tion, it is the duty of the local assessor to assess the capital stock and franchise value of such corporations.'' It seems clear, however, that the assessment of capital stock by local assessors does not and will not result in any large assessments under this head ; and the classes of corporations excepted from assess- ment by the State Board of Equalization are practically exempted from any assessment on their capital stock. a Proceedings St. Bd. of Equalization, 1879, p. 6. b Consolidated Coal Co. v. Miller, et al, 236 111. 149 (Oct. 26, 1908). ASSESSMENT OF CORPORATIONS 87 Various efforts have also been made to exempt the capital stock of building and loan associations. An act for this purpose was passed in 1887, and the provisions of this act were again incorporated in an act of 1891. These exemptions were declared invalid by the Supreme Court in 1894;" but by an act of 1895 the capital stock of such associations was excepted from assessment by the state board. In 1901, another act provided that the stock of such associations, while loaned upon by and pledged as security to the association issuing it, to an amount equal to the par value of such stock, should not be subject to taxation; but this also has been de- clared by the Supreme Court to be imconstitutional. After 1880, the railroad assessments of the State Board of Equal- ization show a slight increase. The number of corporations assessed for capital stock also increased, and the aggregate assessed valua- tions rose slowly to a maximum of $6,956,909 in 1890. In 1899, railroad property was assessed for $75,912,042, and the capital stock of 395 corporations for only $2,348,203. The Teachers^ Federation Case. In 1900, mandamus proceedings were brought against the State Board of Equalization, which resulted in a marked increase of capital stock assessments for a small niimber of public service corporations in Chicago; and this has been followed by a ftirther increase in the number and amount of capital stock assessments, especially for public service corporations, principally in Cook County. These proceedings were begun by the Teachers' Federation of Chicago, to compel the State Board of Equalization to assess the capital stock of 23 corporations in Cook County (street railway, gas, telephone and electric light companies) as required by law. After the legal proceedings had begun, the state board adopted a new set of rules for assessing capital stock; and assessed seven of the companies for small amounts. The Circuit Court held (May 1, 1901) that the new rules were invalid and the assessments fraudulent, and granted the mandamus to compel the re-assessment of 20 corpora- tions under the former rules of the board. On appeal to the Supreme Court of Illinois, the judgment of the lower court was affirmed (Oct. 21, 1901), and mandamus directed to be issued.^ The Supreme Court held that since the power of the state board in assessing the capital stock of corporations was that a 153 Ills. 609. h State Board of Equalization v. People, 191 Ills. 529. 88 ASSESSMENT OF CORPORATIONS of an original assessor, the performance of the duty might be en- forced by mandamus; that the assessments made were fraudulent; and that the valuations must be the result of honest judgment and not mere will. The collection of the tax on the supplementary assessment was, however, in a large part enjoined by the U. S. Circuit Court;" which held that it had been made under duress and not on a proper basis ; and held that the assessment should be based on the capitali- zation of net earnings. On this basis the companies eventually paid on an additional assessment aggregating $7,190,000, and, including the valuation previously made by the state board, on a total valuation of $21,034,000. On appeal by the state to the Supreme Court of the United States, it was finally decided (Oct. 21, 1907) that the injunction of the U. S. Circuit Court was valid, on the ground that the corporations involved had been assessed on the basis of the full value of their capital stock, while other cor- porations had been assessed on the basis of 65% of their value; and that this discrimination was a denial of the equal protection of the law. Assessments since 1900. In 1901, the capital stock assessments by the state board show a sudden increase over the original assessments for 1900, — ^from assessing 334 corporations for an aggregate of $4,808,630 to 749 corporations for an aggregate of $21,477,943. In 1902, the number of corporations assessed was 1988, and the aggregate capital stock assessments were somewhat larger than in 1901, — $22,705,627. For the next five years there was a decrease, until in 1907 capital stock assessments were made on but 1302 corporations aggregating $10,608,000, or less than half of the assessed valuations for 1901 and 1902 .*" In 1908, capital stock assessments amounted to $18,683,448; and for 1909, under the rule providing that the taxable value should be one-third of the market value, instead of one-fifth, as formerly, the aggregate of capital stock assessments (other than railroads) by the State Board of Equalization was $35,394,441.'' The state board's assessment of railroads has also increased in recent years; and capital stock assessments have been made (in addition to the assessment of railroad track and rolling stock) in a Chicago Union Traction Co. v. State Board of Equalization, 112 Fed. Rep. 557. b cf. Table XV, p. 224 i: — ___ - - - — - - - - - -^ -- ~ " - — - - — ♦. ^ - - - - — — D E - — - — — - - - — - V ■^ ^ -— — - — - — - _ =. ~~^ ^=^ - — s b 10 8 g 1 1 -^ , ..._ — ,^ ^ ^ - ■- ^. — _# — — — 1 — ^" "= = ^ ~ — -^ — ~ — — t — — - 1 C ■ -k ~ - - - t — — _ — — — — — — — _ < _ i — . i!- ~ ~" "~ ~ — — — — — — — ~- — — — = =■ ^ — 1— — ^ - u+ -- ^-— ' .1- ^ ^ " ' ,_ . - ■- -1 — , •= — ■ "" _. - "' -r — — - — — \ — — :r = = = = -I— ^ 1; ^ z= -- ^ — ' _ ^ • - . _ _. __ " I — i — -1- — — — — - — — ~ ~ =- ^r — - -- 8 L / " v -'!< <;, 0- 1 < ^'^ ' i 1 f ' \ - --? I 1 \n er 1 1 r - 1 \ t~ 1 T" -r- _ ,. . 1 — ^-v "^ ~ ~ 1 1 1 1 T n JL 1 1 Y" "^ r "Y \ f- i i ' ~f , 1 1 ) ; ■ : 1 '- \ > ! <^ \ \ / ! 1 ; 1 \ ' ", ! ] : ' 1 1 \ '' €'■ CO J 8; ^1 1 1 Ki '< ■ \ I !^' ' ' , '\ P^ ■ . 1 1 1 'V \ 1 r' i t-^ f 1 ,1- . - , T -i , ' t 1 1 ^1 ' -h "^ : iV 1 •- 1 i 1 ! L. 1 ■ \ s>h _ ' i -tt^-L _iLi 1 1 i 1 , ii Jft/O ; 1 1 1, - < ¥r ' -- ! 1 ) 1 -^-f- 1 ■^H"^ ■ \ I ■■ ! ; ; F -Wly 1 1 1 1 If 3:"- .< 1 f 1 1 1 } — tlJ ilil ■^^ 1 ■ li H -- ^ i r"- J iA s^ 1 Ji ■I17 <- -- i^ — f W - / ./ vOj h y r 1 J lO' 1 ^' • - - ^ X ? r -1 - - - - - - - ^ X *• -OflOOr-r-I-i-r-iJJW iS*S H Xi n ru « in 10 * < ■ 1 < > < 1 >' J 1^ c < ^ N ft -T-l 04 C CM P •V OlB»rtOCC*t* (89) 90 ASSESSMENT OF CORPORATIONS the case of a few railroad companies. In 1908, the state board's assessed valuation of railroads was $105,5 17,450, of which $2,096,306 was for capital stock. In 1908, the state board's assessment of railroads (tinder the new rtile of one-third of the market value) was $178,595,135, of which $2,975,285 was for capital stock. Practically all of the capital stock assessments are made on corporations in Cook County, and more than three-fourths of the total valuation is for a small number of public service corporations in that cotinty. Thus, in 1909, the capital stock assessments in Cook County on other than railroad corporations were $34,443,841, out of a total of $35,404,441; the capital stock assessments on local public service corporations in that county were $30,903,341; and for other corporations in Cook County $3,540,500. In all the other cotmties the total capital stock assessments for corporations other than railroads were $950,600, of which $733,900 was for local public service corporations. Of the 1168 corporations assessed for capital stock in 1909, only 15 were assessed for as much as $100,000, and only 95 for as much as $10,000. The others were assessed for a few thousand or a few hundred dollars each. RULES OF THE STATE BOARD OF EQUALIZATION FOR DETERMINING THE VALUE OP CAPITAL STOCK OP CORPORATIONS, 1873, 1900, 1901 AND 1909. On September 12, 1873, the following resolution was adopted by the State Board of Equalization for determining the value of capital stock of corporations : — Resolved, That for the purpose of [ascertaining the fair cash value of the capital stock, including the franchise, of all companies and associations now or hereafter created under the laws of this State, and for the assessment of the same, or so much thereof as may be found to be in excess of the assessed or equalized value of the tangible property of such companies and associations respectively, we, the State Board of Equalization, hereby adopt the following rules and principles, viz : First. — The market or fair cash value of the shares of capital stock, and the market or fair cash value of the debt (excluding from such debt the indebtedness for current expenses), shall be combined or added together; and the aggregate amount so ascer- tained shall be taken and held to be the fair cash value of the capital stock, including the franchise, respectively, of such com- panies and associations. ASSESSMENT OF CORPORATIONS 91 _ Second — From the aggregate amount ascertained as afore- said, there shall be deducted the aggregate amount of the equali- zed or assessed valuation of all the tangible property, respectively, of such companies and associations, (such equalized or assessed valuation being taken, in each case, as the same may be determin- ed by the equalization or assessment of property by this Board) and the amount remaining, in each case, if any, shall be taken and held to be the amount and fair cash value of the capital stock, including the franchise, which this Board is required by law to assess, respectively, against companies and associations now or hereafter created under the laws of this State." On November 22, 1900, the following resolution was adopted making radical changes in the method of determining the value of the capital stock of corporations : — Resolved, That for the purpose of ascertaining the fair cash value of the capital stock, including the franchise, of all com- panies and associations now or hereafter created under the laws of this state, and for the assessment of the same, or so much thereof as may be found to be in excess of the assessed or equalized value of the tangible property of such companies and associations respectively, we, the State Board of Equalization, hereby adopt the following rules and principles, viz: First. — The capital stock of each said company or association shall be valued as an entirety, due consideration being given to the following propositions : a. To the character and duration of the franchise of said company or association. b. To the amount of the contribution (if any) demanded of and paid by said company or association under the provisions of any contract or ordinance, to any municipality, as compensa- tion for the use of its franchise privileges in said municipality. c. The highest and lowest quotations of the shares of stock of said company or association during the twelve months immediate- ly preceding the dates of assessment, and the number of shares of stock sold at such quotations. d. Any other fact or condition or circumstance that will assist in arriving at a just and equitable fair cash value of said capital stock. Second. — From the aggregate amount ascertained as afore- said, there shall be deducted the aggregate amount of the equalized or assessed valuation of all tangible property, respectively, of such companies and associations, wherever the same may be located, (such equalized or assessed valuation of its Illinois proper- ty, being taken in each case, as the same may be determined by the equalization or assessment of property by this Board,) and the amount remaining, in each case, if any, shall be taken and held to be the amount and fair cash value of the capital stock, a Report St. Bd. Equalization, 1873, p. 20-21. 92 ASSESSMENT OF CORPORATIONS including the franchise, which this Board is required by law to assess, respectively, against companies and associations now or hereafter created under the laws of this State. Third. — The above and foregoing, are declared to be the only existing rules and principles adopted by this Board for its govern- ment in the assessment of the capital stock of companies or asso- ciations." These rules were, however, held by the Supreme Court of the State, to be in conflict with the intent of the law providing for the assessment of capital stock by the State Board of Equalization.* On Dec. 21, 1901, the Board adopted a new set of rules, in the fol- lowing resolution : Resolved, That for the purpose of ascertaining the fair cash value of the capital stock, including the franchise, of all companies or associations now or hereafter created under the laws of this State, and for the assessment of the same or so much thereof as may be found to be in excess of the equalized valuation of the tangible property of such companies and associations, respective- ly, we, the State Board of Equalization, hereby adopt the follow- ing rules and principles, viz : First. — The fair cash value of the shares of capital stock (con- sideration being given among other things, to the value of the shares of stock and the quotations of such shares in the market over such a period of time as may be reasonable, also the books of said corporations and the returns made to the Auditor of PabUc Accounts, or such other information as the Board may have or may be able to obtain) and the amount of the indebtedness (except indebtedness for current expenses, excluding from such expenses the amount paid for the purchase or improvement of property) shall be combined or added together. Said State Board of Equalization shall then equalize said amount so obtained, so that said companies or associations shall be assessed as near as practicable upon a uniform basis with other property throughout the State. Second. — From the aggregate amount so determined and equalized as aforesaid, there shall be deducted the aggregate equalized valuation of all tangible property of such corporation or association, respectively, and one-fifth of the remainder, if any, shall be taken and held to be the assessed value of the capital stock of such corporation or association, including the franchise, over and above the tangible property thereof. Third. — All heretofore existing rules of this board for the assessment of capital stoqk, including the franchise, of corpora- tions, are hereby repealed."^ a Report St. Bd. Equalization, 1900, p. 16. 6 191 111. 529. c Report St. Bd. Equalization, 1901, p. 28. ASSESSMENT OF CORPORATIONS 93 These rules were, with one exception, similar to the rules adopted in 1873. The only important change was incorporating into the resolution a ruUng of the Supreme Court that the Board might equalize its own assessments so as to correspond with the valuations of property made by local assessors. On September 28, 1909, a resolution was adopted for the assess- ment of capital stock, which provided that the taxable value should be one-third of the full value, instead of one-fifth, as formerly, — in accordance with the change made in that year for the valuation of other property. This resolution, which shows the present rules of the Board, follows: Resolved, That for the purpose of ascertaining the fair cash value of the capital stock, including the franchise, of all com- panies or associations now or hereafter created under the laws of this State, and for the assessment of the same, or so much thereof as ma}^ be found to be in excess of the equalized valuation of the tangible property of such companies and associations, respective- ly, we, the State Board of Equalization, hereby adopt the following rules and principles, viz: First. — The fair cash values of the shares of capital stock (con- sideration being given amongother things, to the value of the shares of stock and the quotations of such shares in the market over such a period of time as may be reasonable, also the books of said cor- porations and the returns made to the Auditor of Public Accounts, or such other information as the Board may have or may be able to obtain) and the amount of the indebtedness (except indebted- ness for current expenses, excluding from such expenses the am- ount paid for the purchase or improvement of property) shall be combined or added together. Said State Board of Equalization shall then equalize said amount so obtained, so that said companies or associations shall be assessed as near as practicable upon a uniform basis with other property throughout the State. Second. — From the aggregate amount so determined and equalized as aforesaid, there shall be deducted the aggregate equalized valuation of all tangible property of such corporation or association, respectively, and one-third of the remainder, if any, shall be taken and held to be the assessed value of the capital stock of such corporation or association, including the franchise, over and above the tangible property thereof. "^ a Report St. Bd. Equalization, 1909, p. 9. 94 ASSESSMENT OF CORPORATIONS Table IS. ASSESSMENTS BY ILLINOIS STATE BOARD OF EQUALIZATION, 1873, 1880, 1890, 1902, 1908, 1909. 1873. Cook County Other Counties Total Equalized Value of Rail- road Track and Rolling Stock .$3,611,282 $55,706,126 $59,317,408 Capital Stock— Railroads (11) 2,510,982 (1) 73,253 (9) 5,052,077 (35) 6,583,527 (48)62,100,089 (1) 1.095,141 (27) 1,273,139 (143) 7,821,314 (51)64,611,071 W. U. Telegraph Co Other Public Service (1) 1,168,394 (36) 6,325,216 Other Corporations (178) 14,404,841 Total Capital Stock (56) 14,219,839 (219)72,289,683 (266)86,509,522 Total by State Board of Equalization . . . $17,831,121 $127,995,809 $145,826,930 1880. Railroad Track and Rol- lins Stock $4,314,124 $40,287,691 $44,601,815 Capital Stock— 'ublic Service Corpora- tions Other Corporations (6) 514,000 (3) 1,245,297 (14) 255,789 (6) 164,374 (20) 769,789 (9) 1,409,671 Total Capital Stock.. . . . (9) 1,759,297 (20) 420,163 (29) 2,179,460 Total by State Board of EQualization $ 6,073,421 $40,707,854 $46,781,275 1890. Railroad Track and Rol- $12,075,785 $60,718,611 $72,794,396 Capital Stock— '. 'ublic Service Corp'ns . . Other Corporations (26) 3,726,335 (66) 1,277,860 (112) 1,094,915 (110) 857,799 (138) -1,821,250 (176) 2,135,659 Total Capital Stook (85) 5,004,195 (223) 1,952,714 (314) 6,956,909 Total by State Board of Equalization $17,082,880 $62,668,425 $79,751,305 ASSESSMENT OF CORPORATIONS Table 15. — (continued) 1902. 95 Cook County Other Counties Total Railroad Track and Rol- ling Stock $20,628,933 $64,990,109 $85,619,042 Capital Stock- Railroads (6) 2,649,410 (23) 15,794,471 (1449) 5,395,595 (2) 1,642 (194) 1,103,621 (322) 411,940 (8) 2,651,062 (217) 16,898,092 (1771) 5,807,535 Other Public Service Corporations Other Corporations Total Capital Stock 23,839,476 1,517,213 25,356,689 Total by State Board of Equalization $44,468,409 $66,507,322 $110,975,731 1908. Railroad Track and Rol- ling Stock — Steam Roads $19,081,386 5,824,501 $75,786,127 2,733,130 $Q4,867,513 8,557,631 Electric Roads . Total. $24,905,887 $78,519,257 $103,425,144 Capital Stock — . Railroads Public Service Corp'ns. . Other Corporations (6) 1,159,542 (11) 16,863,000 (872) 1,261,298 (4) 932,674 (30) 360,000 (204) 209,150 (8) 4,092,306 (41) 17,213,000 (1076) 1,470,448 Total Capital Stock (889) 19,273,840 ( 238) 1,501,914 (1125) 20,775,744 Total by State Board of Equalization $44,179,727 $80,021,171 $124,200,888 1909. Railroad Track and Rol- ling Stock — Steam Roads $32,309,833 9,409,919 $129,121,743 4,842,098 $161 431 576 14,252,017 Total $41,719,752 $133,963,831 $175,683,693 Capital Stock — Railroads (8) 1,629,766 (44) 30,903,341 (920) 3,540,500 (10) 1,345,515 (102) 733,900 (102) 216,700 (15) 2,975,281 Public Service Corp'ns. . Other Corporations (146) 31,637,241 (1022) 3,767,200 Total Capital Stock (972) 36,073,607 (214) 2,296,115 (1183) 38,379,722 Total by State Board of $77,793,359 $136,259,946 $214,063,413 -« — — — — — — -1 _ — — — ~" — ~ — — — I _ p .— ■ ~ nf — -* -^ .„_ - ■-k- - -fc. — ■ .» __ '" - .^ fOl • \ - _ rl ^ 8! s, \ . ... ' " 1 S - i s s 1 r 1 V 1 \ \ I _ 1 •> 1 ■ ^. % si 00, tr, ?! o {_ y ^ / — 1 ■v 1 , -J d -- '\ ' 1 / 1 . - ■ - - ,1 1 I / ■" f^. / -- ; c^ ! - s ^ 1 ^:? 1 ! ] -- n 1 ! 'C ! 1 : b lij j ,■ h 1 'H " ^ ' ^ 1 >|- ••i •,i '. ^ 1 1 - - 1 -- - ^i • - _; \ ~ - "^ * c - s ? r ID r- (n r- ■ ' 1 — - / f / / ; / / A / - / -- / / t- -_. ~ - ' " ' / -1 ~ ~ ~ ^ ; in g S 8 8 8 1 8 a S g g g g § g.g 8 8 8 8 8 S 8 S § 8 8 8 8 & f glUilgSSS" (96) CHAPTER VII. TAX RATES AND REVENUES. Aggregate Valuation. General property taxes in Illinois are levied by the various taxing authorities on the aggregate assessed valuation of property, determined as described in the preceding chapters of this report. Up to 1866 the aggregate valuation of the State was determined entirely by the valuations made by the local assessors. From 1867 to 1872 these local valuations were subject to equalization by the State Board of Equalization. From 1873, in addition to the State equalization of local assessments, there is also the assessment by the state board, of railroad track and rolling stock and the capital stock of Illinois corporations. The total valuations show, in the main, a steady increase, from $58,889,525 in 1839 to $510,886,683 in 1873, with no very marked changes when State equalization was first introduced in 1867. In 1873, however, there is a very notable increase in total assessed valuations to $1,355,401,317, more than two and a half times that for the previous year. This increase was due mainly to an increase in local valuations ; but in part also to the assessments on railroads and capital stock made by the State Board of Equalization. From this high water mark of 1873, assessed valuatons were reduced from year to year, to a minimum aggregate of $778,474,910 in 1898. Since then the valuations both by local assessors and the state board have been increased, rising to $1,263,500,487 in 1908. In the next year, with the introduction of the new basis of assess- ment at one-third of the stated true value, there was a marked further increase, to an aggregate of $2,158,648,450;- bringing the total valuation for the first time above the figures for 1873." The relative distribution of property values as between the various counties of the State is best indicated by Table xix (pages 228-237), showing the percentage of the state tax collected in each county. The most striking change shown in this table is in the proportion paid by Cook County, which has increased from 11.13 per cent in 1860, and 19.56 per cent in 1873 to a maximum of 41.83 per cent in 1902, and standing over 40 per cent for every a cf. Table XVI, p. 225. (7) (") 98 TAX RATES AND REVENUES year but one since 1900. In fifty years, this county's proportion of the total assessed valuation of property has increased from a little more than a tenth to more than two-fifths of the total for the entire State. Only fifteen counties besides Cook show any increase in the percentage of state tax paid in 1907 as compared with 1860, and most of these show a declining percentage as compared with some years before 1880. Coimties which show an increasing percentage during the past decade are Ford, Kankakee, Lake and Williamson. Most of the counties show a distinct decline in the percentage of state tax paid; and eight counties, shown below, have lagged behind so that their percentage is now less than half of that in 1873. County. Percentage op State Tax 1860 1873 1907 2.90 .49 .42 .70 .17 .68 1.4S .38 2.56 .47 .39 .53 .08 .67 1.18 .29 1.06 Bond .22 .17 Clinton .25 Hardin . 04 .21 Pike 45 .14 Tax Rates. With the wide fluctuations in the bases of assessed valuations and the large^variations from the standard of true value, the official rates of taxation in Illinois do not, in themselves, serve to indicate clearly changes in the actual burden of taxation. But by noting the more striking changes in the bases of assessment, it is possible to trace some of the most general tendencies in regard to taxation. The State tax rate was 20 cents on the $100 of assessed valuation in 1840; and, with some variations, the rate increased to a maxi- mum of $1.30 in 1869, and was 75 cents in 1872. The increase in the rate may be ascribed in considerable part to the declining basis of assessed valuations ; and, with the marked increase in valuations in 1873, the State tax rate was reduced by more than half, to 36 cents. From this time the rate shows minor variations, rising to 53 cents in 1887, to 55 cents in 1896, and to 66 cents in 1897. With the increase in assessed valuations in 1899, the rate was reduced to 42 cents; and for the next nine years ranged from 40 to 55 cents, TAX RATES AND REVENUES 99 being 50 cents in six of the nine years. In 1909, with the increase in the basis of assessed valuations, the State tax rate was reduced to 35 cents." From an early period, however, the State tax has formed the smaller part of the taxes on general property ; and the taxes levied by counties, towns, cities and villages and other local districts constitute an increasingly larger portion of the total property tax. Table 16. RATES OP PROPERTY TAXATION IN ILLINOIS, 1840, 1850, 1860, 1870, 1873, 1880-1909. [Compiled and Computed from data in Reports of the AutiiTOR OF Public Accounts.] State Total Taxes on General Property. Year. Tax. State Minimum Maximum Cook Average 6 County Average. County Average. County Average 1840 $ .20 .58 .67 .65 .36 .36 1850 1860 ■"■$i".'66 4.55 1.59 3.12 1870 1873 1880 "$i".12 Boone Co. ■■$22Vi32' Pulaski Co. ■■$5V38"" 1881 .48 3.12 1.37 Boone Co. 10.49 Pulaski Co. 4.91 1882 .36 3.18 1.43 Boone Co. 10.34 Pulaski Co. 5.11 1883 .32 3.43 1.73 Boone Co. 6.33 Pulaski Co. 5.29 1884 .35 3.46 1.75 Boone Co. 7.36 Johnson Co. 5.47 1885 .42 3.69 1.91 Boone Co. 6.32 Gallatin Co. 5.57 1886 .35 3.52 1.91 Boone Co. 6.76 Alexander Co. 5.17 1887 .53 3,88 2.01 Boone Co. 6.58 Gallatin Co. 5.47 1888 .44 3.88 1.98 Boone Co. 6.30 Mason Co. 5.54 1889 .38 3.88 2.23 Clinton Co. 6.91 Mason Co. 5.60> 1890 .36 4.20 1.93 Bond Co. 7.02 Mason Co. 6.30 1891 .33 4.50 2.30 Calhoun Co. 7.69 Mason Co. 5.93 1892 .31 4.70 2.13 Edwards Co. 8.03 Mason Co. 6.95 1893 .31 4.73 2.18 Calhoun Co. 7.98 Mason Co. 6.92 1894 .31 4.94 2.36 Calhoun Co. 6.99 Cook Co. 6.99 1895 .52 5.39 2.64 Calhoun Co. 9.01 Cook Co. 9.01 1896 .55 5.61 2.37 Calhoun Co. 8.36 Cook Co. 8.36 1897 .66 5.89 2.56 Calhoun Co. 9.04 Cook Co. 9.04 1898 .56 5.90 2.59 Calhoun Co. 8.96 Cook Co. 8.96 1899 .42 5.16 2.76 Henderson Co. 6.78 Alexander Co. 6.52 1900 .50 6.20 3.00 Henderson Co. 8.45 Cook Co. 8.45 1901 .50 5.30 3.06 Calhoun Co. 7.12 Alexander Co. 6.54 1902 .40 4.94 3.00 Calhoun Co. 6.83 Adams Co. 5.59 1903 .52 5.23 3.09 Calhoun Co. 6.81 Rock Island Co. 6.19 1904 .55 5. SO 3.07 Clinton Co. 7.14 Rock Island Co. 6.69 1905 .50 5.73 3.41 Woodford Co. 9.92 Hamilton Co. 7.01 1906 .50 5.84 3.15 Calhoun Co. 7.36 Cook Co. 7.36 1907 .50 5.90 3.08 Livingston Co. 7.67 Cook Co. 7.67 1908 ' .50 6.06c 3.05 Alexander Co. Calhoun Co. 7.98 Cook Co. 7.98 1909 .35 3.85d 2.03. Iroguois Co. LivmRston Co. 5.20 Gallatin Co. 4.88 a cf. Table 16. 6 Computed from statistics of taxes levied and assessed valuations. The state averages printed in the reports of the Auditor do not agree with the above figures for a number of years. c Excluding Cook Comity $4.73 d .Excluding Cook County $3.12. 100 TAX RATES AND REVENUES Thus, in 1860, when the State tax was 67 cents on the $100 of assessed valuation, the total of property taxes levied by all taxing bodies in the State averaged a rate of $1.66 on the $100. In 1870, when the State tax was 65 cents, the State average of all property taxes was $4.55. With the increase in assessed valuations in 1873, the State average of all property taxes was at the rate of only $1.59 for each $100, which called for almost the same amount as the rate of $4.55 three years before. With the reduction in assessed valuations after 1873, the average total tax rate increased to $3.12 in 1880, to $4.20 in 1890 and to $5.90 in 1898. The increased valuations in 1899 are indicated in the lower average rate of $5.16 for that year; and the reduced valuations for 1900 are reflected in the new maximum average rate of $6.20. With the firmer establishment of the new basis of valua- tions, there was a reduction in the average tax rate to $4.94 in 1902, followed by a gradual increase to $6.06 in 1908. On the new basis of assessment at one-third of the supposed true value in 1909, the State average tax was again reduced to $3.85 on the $100 of assessed valuation. ° On the basis of assessed valuations, the nominal state average tax rate shows a steady and marked increase until 1909. But if the census estimates of the true value of tangible property are approximately correct, the total amoiuit of general property taxes levied in Illinois has not increased at a much greater rate, if any, than the increase in the total true value of property from 1860 to 1904. As shown in the following table, the total property taxes levied in census years have ranged from 1.02% in 1870, to .69% in 1890 and 1904 of the estimated true value of tangible taxable property in Illinois. Table 17. PROPERTY VALUES AND TAXES IN ILLINOIS, 1850-1904. Year. Census Estimates OF True Value of Tangible Taxable Property. Total Property Taxes Levied. Per Cent Taxes of Estimated Value of Property. 1850 $ 156,265,006 871,860,282 2,121,680,579 3,210,000,0006 4,880,750,239 6,719,615,640 8,534,009,347 I860 $ 6,121,766 21,825,008 24,533,326 33,991,708 50,240,931 59,452,426 70 1870 1 02 1880 76 1890 69 1900 74 1904 69 a cf. Table 16. b Estimated total value of Property. TAX RATES AND REVENUES 101 At the same time, it is probable that property taxes have increased proportionately, so far as some kinds of property are concerned and for some taxing districts. It should also be borne in mind that the above statement does not include special assess- ments for local improvements. As between the various counties in Illinois, the average rates of taxation show large variations below and above the state averages. Thus, in 1880, the minimum county average rate was $1.12 for each $100 of assessed valuation for Boone County, and the maxi- mum county average rate was $22.62 for Pulaski County. In 1907, the minimum county average rate was $3.08 for Livingston County, and the maximum county average rate was $7.67 for Cook County. The minimum county average rate has regularly been in a distinctly rural county, such as Boone or Calhoun County. The maximum county average rate has sometimes been for a rural and sometimes for an urban county; but since 1894, Cook County has had the maximum county average rate for about half of the number of years. The minimum county average rate shows a marked increase from 1880 to 1908, much above the nominal increase in the State average rate; and it appears that taxes in the counties with the minimum rates have distinctly increased in proportion to the true value of property. On the other hand, the maximum county average rate has not increased to any marked degree; and it appears that, in proportion to estimated true value, property taxes in counties with the highest rates are less than in the 80's. Amount of Taxes Levied. Table xx (page 238), showing the "State, County, City, Town, School and other local taxes levied in Illinois, 1872-1909," makes possible some comparison in the relative growth of taxation for the different classes of taxing districts. In 1860, the State tax levy called for $2,523,536; and by 1873, the state tax levy amounted to $5,023,609, an amount not sur- passed until 1897. Meantime, the state tax levy was as low as $2,615,747 in 1894, while since 1900 it has increased to $7,690,861 in 1909. Compared with the state levy in the early 90's, the state tax levy in recent years, shows a large increase; but in comparison with the levies made in the decade from 1870 to 1880, the state levy during the past few years is a smaller proportion of the true value of property in the state. 102 TAX RATES AND REVENUES The aggregate of county taxes shows a smaller actual rate of increase than the state levies; and is now a distinctly smaller proportion of the true value of property in the state than for the twenty years before 1890. The total amount of coimty taxes levied in Illinois remained nearly stationary from 1872 to 1898; and was higher in 1875 ($6,438,787) than for any year tmtil 1901. During the past ten years county taxes have been increased from $6,414,367 in 1899 to $10,890,738 in 1909; but the total for 1909 was only about twice that for 1870, while the estimated true value of property in Illinois has increased more than fourfold during that period. In contrast with the stationary or declining proportion of state and county taxation, in relation to the estimated true value of property, taxation for city, school and other local purposes, has been rapidly increasing, not only in actual amount, but apparently also in proportion to the true value of taxable property. In 1872, the total of city and other local taxes levied on general property in Illinois was about $10,800,000, a little more than half of the grand total of $19,800,000 of property taxes for all purposes in the state. In 1890, city and other local property taxes levied amounted to almost $25,000,000, more than two-thirds of the total property taxes levied of $34,000,000. In 1909, city, school and other local property taxes levied amounted to about $64,000,000, out of a total of property taxes of $83 ,200,000. From 1872 to 1909, these local property taxes multiplied about six times; while the true value of property for the state is estimated to have multiplied about four fold. It is probable, however, that much the larger part of this increase in local taxation has been in the cities ; and if the statistics of city taxation and the true value of city property could be segregated, it is possible that the rate of increase in taxa- tion, even in cities, would not prove to be any greater than the rate of increase in the total of actual values for all classes of tangible property in cities. Table xxi (page 239), showing the amoimt of taxes levied in Cook County, illustrates further the greater amount of taxes and rate of increase in urban as compared with rural districts. In 1875, when Cook County paid 19.76 per cent of the state tax, the total propertytaxes in that county ($9,597,041) amount to 33 per cent of the total property taxes in the state ($29,007,461). And in 1907, when Cook County paid 40.22 per cent of the state tax, the total propertytaxes in the county ($39,469,361) had increased to 53.5 per cent of the total property taxes in the state ($73,706,048). From 1875 to 1907, property taxes in Cook Coimty multiplied more than o CO o in o '-o ^ i2 "^ S "O •" 't- * C^y7 70(7 VO/77/A^ (103) 9 lO tJ — [in s 104 TAX RATES AND REVENUES four fold; while for the state as a whole they have not trebled; and for the state outside of Cook County, the total taxes have increased only about 60 per cent. State Revenue. Tables xxii to xxiv (pages 240-247) present data in regard to the revenue of the State Treasury of Illinois. The first of these deals with the state property tax, showing for each year, from 1839 to 1908, the amount of state tax charged, the amount of abatements, commissions, etc., deducted, the net amount, the amount paid to the State Treasurer and the amounts unpaid. It will be seen that considerable amounts of the tax levied are not collected; and that in some years the amount withheld be- cause of abatements, commissions and injunctions is an important part of the total. In 1873, the ordinary abatements were more than 25 per cent of the total state tax levied; and for several years after that the collection of more than 10 per cent of the state tax was enjoined by railroads and other corporations. More recently, from 1902 to 1905, the collection of considerable amounts has been enjoined, while in 1907, the ordinary abatements were more than a sixth of the state tax levied. The two tables which follow the above show the state revenue for biennial periods since the organization of the state government in 1818, according to the reports of the State Treasurer and Auditor of Public Accounts. Table xxiii deals with the ordinary or general revenue, corresponding for the later years to the general revenue fund. Table xxiv shows the total receipts of the State treasury, including special funds in addition to the general revenue accounts. These tables show a number of other sources of state revenue, besides the general property tax, — such as revenue from the sale of state lands, from the Illinois Central railroad, from insurance taxes and fees, and in recent years from the inheritance tax. The revenue from the Illinois Central railroad has been considered in the chapter on the Taxation of Railroads (page 76). Other special taxes, license fees, etc., are examined in the chapter immediately following this, — including some revenue accounts not reported to the State Treasurer or Auditor. The total receipts of the State treasury have risen from $53,362 for the first biennial period from 1818 to 1820, to $19,588,842 for the two years from 1906 to 1908. On a population basis, the increase has been from about $1.30 per capita for the first period to TAX RATES AND REVENUES 105 about $3.00 for the last two years. The tendency towards an increase in state revenues has been in the main continuous ; but at certain dates there has been a much more marked rise than is usually to be found. Thus after 1850, there were large additions made in each biennial period until 1858, which multiplied the state revenue more than fourfold. Again from 1860 to 1862 there was a noticeable increase, due to the civil war; another marked increase was in the period from 1868 to 1870. The period from 1872 to 1874, with a total revenue of $11,840,072, was a maximum until 1896-98, when there was another notable increase. The total revenue of the State of Illinois is, however, much below that of other states of the same rank in population, wealth and in- dustrial development. As shown in the tables in Chapter X, the total revenue of the State of New York in 1909, was $52,285,239, and that of Pennsylvania was $29,101,183, compared with an annual average of less than $10,000,000 for Illinois. State Expenditures. Table xxv (pages 248-249) shows the State expenditures of Illinois from 1870 to 1908, as classified in the biennial reports of the Auditor of Public Accounts. No detailed analysis of these expendi- tures will be made ; but it may be noted that the largest increases are for the purposes classed as executive, judicial, charitable and penal and reformatory ; and that the expenditures for educational purposes have risen at a slower rate than for any of the other important classes. CHAPTER VIII. SPECIAL TAXES.lLICENSES AND FEES." 'i' In addition to the taxes on general property, some public revenue is also received in Illinois, by the state and its various civil divisions, from special forms of taxation, from licenses and from inspection and other fees. No one of these additional sources of revenue can com- pare in importance with the general property tax; but in the aggregate they furnish a considerable revenue for public purposes. In most cases, such fees, or part of the proceeds, when collected by State officials, are paid in to the State treasury. But several classes of state fees are assigned to pay the expenses of certain boards or officials, and are not reported to the Treasurer at all, nor are they included in the accounts and reports of the Treasurer or Auditor. From the point of view of revenue, the most important of these special taxes for state purposes, are those levied on and collected from insurance companies, the organization fees on corporations, and the inheritance tax. Before 1870. The first Constitution of Illinois had no provision for taxes other than those levied on the value of property. Nevertheless, the General Assembly provided for some other taxes or license fees, on state banks, on insurance agents, on hawkers and peddlers and on stock brokers, as well as local license fees on taverns, and various other businesses and occupations. Such charges seem to have been recognized as within the general powers of the legislature. In the Constitution of 1848, definite provision was made for other taxes than those on general property. In the section pro- viding for taxes by valuation, it was also provided that, — the general assembly shall have power to tax peddlers, auc- tioneers, brokers, hawkers, merchants, commission merchants, showmen, jugglers, inn-keepers, grocery-keepers, toll bridges and ferries, and persons using and exercising franchises and privileges in such manner as they shall from time to time direct. a Thos. Erwin Latimer: Special Taxes in the State of Illinois, (Mss. Essay in the University of Illinois.) (106) SPECIAL TAXES, LICENSES AND FEES 107 The Specifications of the objects and subjects of taxation shall not deprive the general assemlDly of the power to require other subjects or objects to be taxed, in such manner as may be consis- tent with the principles of taxation fixed in this Constitution. This provision distinctly specified most of the special taxes and licen- ses established up to the adoption of this Constitution; and under this clause similar taxes were continued and some others added. In 1819, a tax of one-half of one per cent was levied upon money actually paid in on bank stock; and in 1835, the act to incorporate the State Bank of Illinois provided that the bank should pay into the State treasury, annually, "one-half per cent on the amount of capital stock actually paid in by individuals, in lieu of all taxes and impositions whatsoever,"" Under the second of these acts a revenue of from $7,000 to $15,000 a year was received, until the bank was placed in liquidation in 1843. Special taxes on insurance began as early as 1841, when a semi- annual license fee of $100 was imposed on the agents of foreign insurance companies. Two years later this was changed to three per cent of the premiums on policies issued. In 1852, this charge was sustained by the .Supreme Court, as a sum paid for the privilege of doing an insurance business in the State.* A year later, however, the gross receipts of insurance companies were required to be listed as personal property ;" and the regular tax on this apparently took the place of the license fees on agents. Beginning in 1857, other fees were imposed, to be paid to the State Auditor, of five dollars for examining and filing the annual report and one dollar for each certification of authority to agents. In 1845, a license fee of $100 was imposed on stock and exchange brokers; but this does not appear to have yielded much revenue. Receipts into the State treasury from brokers' licenses are reported at $400 in 1846, and $100 in 1848. Peddlers and hawkers have generally been subject to special license fees. At first the revenue from such fees went to the coun- ties; but by act of 1845, a state license fee of $50.00 was imposed in addition to the county fee. This yielded a revenue of $2 100 in 1846 ; but the income steadily declined to $50 in 1869, when the local authorities again received the exclusive power to license peddlers. In 1865, an annual fee of $100 was imposed on "substitute brokers " (who furnished substitutes for enlistment in the army) as a a Laws of 1835, pp. 7, 14. b People V. Thurber, 13 111. 554, (1852). c Laws of 1853, pp. 14, 46. 108 SPECIAL TAXES, LICENSES AND FEES license fee to secure substitutes for citizens of states other than IlHnois. There is no report, however, of any licenses being issued or any revenue being received from this source. Local license fees were authorized by the first general assembly of the State on peddlers and taverns, and on toll bridges and toll roads, to be paid to the counties. Later general legislation extended the list of occupations subject to license, including ferries (1829), merchants and auctioneers (1831), and shows and jugglers (1^45). Beginning in 1833, the special charters of cities authorized the issue of licenses to a long and varying list of occupations and businesses, — including taverns, groceries, theatricals, shows, and merchants; peddlers, hawkers and auctioneers; brokers, money changers, pawn- brokers, drays, carts, hackney coaches, wagons and porters; and butchers, innkeepers, runners for stages, boats and hotels, and insurance brokers and agents. The later charters, especially those passed after 1848, contain the longer lists. Constitution of 1870. The revised Constitution of 1870 added to the enumerated list of objects and subjects of special taxation liquor dealers, insurance, telegraph and express interests or business, venders of patents, and corporations owning or using franchises or privileges; and further provided that all such special taxes shall be imposed by general law, tmiform as to the class upon which it operates. Liquor dealers and insurance interests had already been subject to special taxation, although not in the enumerated list ; and the mention of these con- firmed the power of the general assembly. In the other cases, the changes in the Constitution opened the way for new taxes ; and the additional power has been used to some extent. Another clause in the Constitution provided that fees payable to certain officers should be paid into the State treasury. Before 1870, the Secretary of State, Auditor and Attorney General, had received fees collected in their respective offices, but the new Constitution provided that : — The oiificers named in this article [Governor, Lieutenant Gover- nor, Secretary of State, Auditor of Public Accounts, Treasurer, Superintendent of Public Instruction and Attorney General] shall receive for their services a salary, to be established by law, which shall not be increased or diminished during their official terms; and they shall not after the expiration of the terms of those in office at the adoption of this Constitution, receive to their own SPECIAL TAXES, LICENSES AND FEES 109 use any fees, costs, perquiisites of of&ce, or other compensation. And all fees that may hereafter be payable by law for any services performed by any ofi&cer provided for in this article of the Con- stitution shall be paid in advance into the State treasury." Insurance Fees and Taxes. In 1869, before the adoption of the new Constitution, the in- si^ance laws had been revised, and a rather complicated scheme of license fees imposed. Life insurance companies were distinguished from fire, marine and inland navigation insurance companies; and different rates were imposed on domestic and foreign companies. Notably, the so-called reciprocal clause provided that when the home state of a foreign insurance company charged foreign com- panies higher rates for licenses or taxes than did the State of Illinois, the same rates should be charged such a company. For twelve years no company was taxed under this clause; but when resorted to it was upheld by the Supreme Court, and since then the revenues rmder this provision have been large. Some subsequent legislation has been declared unconstitutional; and the "reciprocal clause" of the Act of 1869 has remained the basis for the taxation of foreign fire insurance companies. Since 1870, there has been passed a good deal of additional legislation imposing license fees, at varying rates, on various classes of insurance companies, — such as local and mutual companies (1872, 1877 and 1887), beneficial and fraternal societies (1883 and 1893), tornado companies (1889) and accident, surety and casualty com- panies (1899 and 1905). By act of 1909, fire insurance companies are required to pay, in addition to taxes previously required, not exceeding one-fourth of one per cent of the gross premium receipts, as a fund for the maintenance of the office of fire marshal. These numerous acts impose a confusing variety of charges on the different classes of insurance companies. The most usual fee is for filing a declaration or copy of charter, which ranges from $10.00 to $100.00. Most classes of insurance companies must also pay a fee of from $1.00 to $10.00 for filing their annual report. Some classes pay a small fee for annual renewal ; and several pay an annual fee for their agent's certificate. The various fees for different classes of insurance companies are shown in the following table : — a Constitution Article V. Sec. 2.^. no special taxes, licenses and fees Table 18. INSURANCE LICENSE FEES < n Class of Company. Filing Declara- tion OR Charter. Filing Annual Report. Agent's Annual Certificate. Special Provisions. 1841 Foreign Companies. Foreign Companies. Foreign Companies. Foreign Fire Home Fire Life (H. & F.) Township Mutual Fire $200.00 1843 3% Gross Receipts. 18S3 Gross Receipts as 1869 $ 30.00 30.00 10.00 10.00 2'57oo"" 10.00 10.00 10.00 20.00 30.00 30.00 30.00 30.00 ""iooTo'o"" $10.00 10.00 10.00 5.00 1.00 5.00 10.00 2.00 .50 2.00 Personal Property, r Reciprocal C ause. ■ Net Receipts as [ Personal Property. 1872 $1.00 f Reciprocal Clause. \ Exam'n Fee, $30.00 1877 j County Fire Beneficial Societies; Home ^ 1901 1883 1887 Farmers County Mutual Live Stock Mutual Tornado. . . . Fraternal Secret, 1903 1.00 1.00 5.. 00 1889 1893 Vault & Reg. Fee. 2Sc per $1,000. Examination Fee. 1893 Life & Accident. . . . 10.00 10.00 10.00 10.00 1899 2.00 2.00 2.00 Reciprocal Clause. Examination Fee. Surety Casualty Mutual Casualty and Burglary Mutual Casualty, Home Foreign Fire Insurance Co's Fire Mar'l's Fund. 2% Gross Receipts Reciprocal Clause. 1905 10.00 1909 i of 1 % of Gross Receipts. The revenue from insirrance fees for the biennial period 1870-2 was $21,972.65. This increased slowly to $46,074.95 for 1880-82. With the enforcement of the reciprocal clause against foreign com- panies, there was a marked increase in the next biennium to $168,131.39. During this time and up to 1893, the insurance fees were collec- ted by the Auditor of State. By act of June 20, 1893, in force July 1st, of the same year, a separate Insurance Department was estab- lished, under the direction of the Superintendent of Insurance. SPECIAL TAXES, LICENSES AND FEES 111 O 2 3 < M E-1 H CO 2 I s H m S w 0' z I « « 2 2 Q CO H Pi O O Q Z o 00 CO \0 'O VO •* o 1J-) CO CO 0\ fN 00 lO IN m lo on CO o\ .^ o 00 VO »o o 00 o. cn lo o o 00 »o ■^ l->J r^ ro rvi ^ ;^ CO lO CO rO fN CO vn 0\ ■^ on fN on (N cs ■^ i>. 00 lO fO '^_ CO a< t^ VO (O ■^. '^. 00 0\ •* ■* ^ -O 'O -* CO 00 (O On so m P- B jH c o ^ _o ■ l"> s o CN (O fO t^ lO vO 0\ ■* lO >y^ O 1^ O O O lo i-i lo Ov lO 0^ t^ 00 CO 0\ O O •* t^ 00 O »0 CO 00 T-llo^~[O'*i^0^0^^^O«*0lO0^ O0t^r~oo-^t^0^'0»rtcsoo>rt ■.-ii-1-.-i-HrOM^cOfOcOCOio-^ O 00 ^O I>. O (N lo O CN ■* O "* 00 CS ■* Ov lO 00 CO O ■* CN ^O « »M lo Ov 0\ ■^ O "O o\ 00 00 o o r>»\O*OtO--H'*\O00CS*Ot^iOi-iON'*'^ (M^OOt^'-HOV'-'CNroCMi-lOCMr^OOco '-"'-tCNfO^'O'Or-oo-^^io Oi"000»0---i^t^-t-lT-tOCO*OCSCO(N »O00'-<(MCNCOO0000000000OC^O'-< CMO\OicOt^00>O'-'OsiO'ioirito*-i>o^iH'.-Hcs»'>rscN(0 C>)CSCNCMCNfMJ^ O O >o o O I ^ lo ro 00 VO 00 'd' ' VD lO t-~ 00 !>■ 00 0\ I o o O o 8 S O s s 8 S o o lO o lO 8 8 8 O lO o to ■^ 00 CN \i> o CO CN O CN in CO CO o ■* lO SO 00 CO CO 00 CN g O o Os 00 o\ CN CO 69- lo CO CO ■* CO CO lO CO ■o O CO CO 1-* r-* so OS sr> u-> lO "^ so .:i< r2 f^ "w ■^ CTs on <■•) CN CO 00 --I " m CN lO Os o CO -i-H O o CN to CN 00000000000 Q00000C0C0C00^OiO\O\OiO\CJ\O\C> y 43 1 « J3 - ■go ~ g-g O su a ^ «.> 13 112 SPECIAL TAXES, LICENSES AND PEES The amount of fees and taxes collected continued to increase rapidly. During the calendar year 1896, the collections were $181,502.88, not including fees for advertising and for the examinations of com- panies; in 1900 the collections were $344,967.75 (a maximum for some years) ; and in 1907, there was a further increase to $585,986.81. Up to 1904 the amounts paid to the State Treasurer during each fiscal biennium ending Sept. 30th, corresponded with the collections reported by the Insurance Department for the two calendar years ending the preceding December. In the biennial period ending Sept. 30, 1906, the treasury receipts appear to include the collections for the three calendar years 1904, 1905 and 1906, as well as some refunds by a former Superintendent of Insurance. During 1906-08 the treasury receipts include some further refunds from the same source. Corporation Fees. Before 1870, such registration and incorporation fees as were collected from corporations went to the Secretary of State or (after 1848) to the Auditor of State. The Constitution of 1870, however, provided that all such fees should go to the State treasury ; and the revenue law of 1872 authorized the Secretary of State to make the following charges: — granting license, one dollar; filing articles of association, incorporation or consolidation, one dollar; issuing cer- tificate, one dollar. With these small fees, the revenue was not im- portant, reaching a maximum of $33,587.68 for the period 1890-92. In 1893, a general incorporation fee of $25 was imposed; and the revenue from corporation fees during the next biennial period was more than doubled (to $74,054.02). In his report for 1894, the Secretary of State recommended that the incorporation fee should vary with the amount of capital stock; and the general assembly of 1895 passed an act establishing a sliding scale of fees, from $30.00 for corporations with a capital stock of $2,500 or less, $50.00 for capital stock between $2,500 and $5,000, and $1.00 for each $1,000 of capital stock over $5,000. For an increase in capital stock a fee of $1.00 per $1,000 was charged. Further changes have been made by later legislation. By an Act of 1897, foreign corporations are required to pay the same fees as Illinois corporations, upon such a proportion of their capital stock as is represented by their property in this state. Corporations not organized for profit pay $10.00 for a certificate of incorporation, and $1.00 for filing their annual report. In 1899 the fee for an increase in capital stock was changed to $50.00 for $5,000 or less. SPECIAL TAXES, LICENSES AND PEES 113 Some classes of corporations are subject to certain special fees. State banks are required to pay the bank examiner $10.00 per day and 25 cents mileage, and also $5.00 for filing the quarterly report. Savings banks pay an organization fee of $5.00; and, if their funds exceed $100,000, their proportionate assessment to sustain the state banking department. Building and loan and homestead associa- tions incorporated in Illinois are required to pay an annual fee of only $2.00; while those coming from another state pay $50.00 for a certificate of authority, and $25.00 for its annual renewal. By act of 1901, corporations for guaranteeing titles to real estate are re- quired to pay $30.00 upon filing their application for a certificate of authority, $2.00 for the certificate, and $10.00 when filing their annual statement. The increased corporation fees imposed in 1895 brought a con- siderable revenue ; and at the same time are said to have acted to prevent the incorporation of fraudulent concerns. For 1894-96 the collections were $178,464.62, considerably more than twice that for the preceding biennial period; for 1896-98, the collections were again more than doubled, to $388,529.26; and for 1898-1900 in- creased to $625,452.79. During the past ten years the changes have been more gradual; and for the biennial period 1906-08 the collections from corporation fees were $815,425.89." This amount compares favorably with the revenue from organization fees from corporations in other states. But it is small in comparison with the revenue of a number of the eastern states from special taxes or fees levied annually on corporations, and based on capital stock, earnings or dividends.'' Moreover, as already noted, the assessment of capital stock of Illinois corporations by the State Board of Equal- ization is not of sufficient amount to produce any large revenue either for the state or the local authorities. Inheritance Tax. In his biennial message to the general assembly in 1895, Gover- nor Altgeld urged the adoption of an inheritance tax. During this year, there was passed "An Act to tax gifts, legacies and inherit- ances in certain cases, and to provide for the collection of the same." All property, real, personal, and mixed, passing by will, descent or transfer, taking eft'ect after death, from residents of the state, and property of non-resident decedents which is within the state was a Cf. Table 27, p. 130. b Cf. Chapter X. C8) 114 SPECIAL TAXES, LICENSES AND FEES made subject to the tax. Three classes of heirs or legatees were recognized, each subject to a different rate of taxation, — direct or lineal, collateral relatives and others. For all classes, transfers or estates below a certain value were exempted ; and for the third class the tax rate was progressive, increasing with the amount of the estate. The rates and exemptions for the several classes were as follows : Direct or Lineal Heirs. When the property passed to a father, mother, husband, wife, child, brother, sister, wife or widow of the son, or husband of the daughter or any adopted child or any lineal descendant bom in lawful wedlock, the tax rate was one dollar on each hundred dollars upon the excess over $20,000 received by each person. Other near relatives. When the property passed to any uncle, aunt, niece, nephew or any lineal descendant of such, the tax rate was two dollars on each one hundred dollars, on the excess over $2,000 received by each person. In all other cases, on all estates valued at over $500, the tax rates were: three dollars on each hundred, for estates of $10,000 and less, four dollars on each hundred, for estates of $10,000 to $20,000, five dollars on each hundred, for estates of $20,000 to $50,000, six dollars on each hundred, for estates of over $50,000. Estates for life or for a term of years with a remainder to colla- teral relatives or strangers, are not subject to the tax; but the tax on the remainder (after deducting the value of the life or term estate) is immediately payable, imless those interested give a bond to secure the payment when they come into the possession or enjoyment of the property. By an Act of 1901, property passing for the use of any hospital, religious, educational, scientific, benevolent or charitable purpose is not subject to the duty or tax. Property subject to the inheritance tax is valued by an appraiser appointed by the county judge, subject to an appeal to the County Court ; and the tax is payable to the county treasurer, and paid over by him to the State Treasurer for the benefit of the State. The coimty treasurer is allowed two per cent on all taxes paid and ac- counted for; and certain fees are also paid to the county clerk in connection with inheritance tax matters. By Act of 1909, the rates of the inheritance tax were increased in the case of large estates, and the rates were made progressive for transfers to direct and near relatives as well as to those more distant. The rates are now as follows; — SPECIAL TAXES, LICENSES AND FEES llS Direct Heirs (father, mother, husband, wife, child, brother, sister, wife or widow of son, or husband of a daughter or adopted child), one dollar on each hundred for transfers of $20,000 to $100,000, two dollars on each hundred for transfers of over $100,000. Other Near Relatives (uncles, aunts, nieces, nephews, or their lineal descendants), two dollars on each hundred for transfers of $2,000 to $20,000, four dollars on each hundred for transfers of over $20,000. In all other cases, three dollars on each hundred on all estates of $500 to $10,000, four dollars on each hundred on all estates of $10,000 to $20,000, five dollars on each hundred on all estates of $20,000 to $50,000, six dollars on each hundred on all estates of $50,000 to $100,000, ten dollars on each hundred on all estates of over $100,000. The inheritance tax law of Illinois has been upheld as constitu- tional by the Supreme Court of Illinois and the Supreme Court of the United States. In Kochersperger v. Drake (167 111. 122,-1897) the Supreme Court of Illinois held it to be a tax, not upon property but upon the right of succession thereto. A tax which affects the property within a specific class is uniform as to that class, and there is no provision of the Consti- tution which precludes legislative action from assessing a tax on that particular class. By this act of the legislature, six classes of property are created heretofore absolutely unknown. It is those classes of property depending upon the estate owned by one dying possessed thereof which the state may regulate as to its descent and the right to devise. The tax assessed on classes thus created is absolutely uniform on the classes upon which it operates, and under the provisions of the statute is to be deter- mined by valuation, so that every person and corporation shall pay a tax in proportion to the value of his, her or its property inherited ; and it is not inconsistent with the principle of taxation fixed by the Constitution, and it is clearly within the sections of the Constitution quoted. No want of uniformity with one living who owns property can be urged as a reason why the statute makes an inconsistent rule. No person inherits property or can take by devise except by the statute ; and the state laaving power to regulate this question may create classes and provide for uniformity with reference to classes which were before unknown. The Supreme Court of the United States, in the case of Magoun V. Illinois Bank (170 U. S. 283,-1897), referring to cases upholding the constitutionality of state inheritance taxes, said: They are based on two principles: 1. An inheritance tax is not one on property, but one on the succession. 2. The right to take property by devise or descent is the creature of the law, 116 SPECIAL TAXES, LICENSES AND FEES and not a natural right — a privilege, and therefore the authority which confers it may impose conditions upon it. From these principles it is deduced that the States may tax the privilege, dis- criminate between relatives and between these and strangers, and grant exemptions ; and are not precluded from this power by the provisions of the respective State Constitutions requiring uniformity and equality of taxation. More particularly, the Court held that the Illinois law did not conflict with the provision of the fourteenth amendment to the Constitution of the United States, which declares that no State shall deny to any person within its jurisdiction " the equal protection of the laws." The rule * * * only prescribes that that law have the attribute of equality of operation, and equality of operation does not mean indiscriminate operation on persons merely as such, but on persons according to their relations * * * * . The State may distinguish, select, and classify objects of legislation, and necessarily this power must have a wide range of discretion. * * If the constituents of each class are affected alike, the rule of equality prescribed by the cases is satisfied. In other words, the law operates equally and uniformly upon all persons in similar circumstances .°- The revenue from the inheritance tax amounted to $39,179.98, for the biennial period 1896-98, to $958,785.75 for 1898-1900, increased to a maximum of $1,376,113.91 for 1904-06, and was $782,743.49 for 1906-08. The annual average since 1898 has been about $500,000. This is a larger revenue than is received from inheritance taxes in most of the states; but it is considerably less than in California, Massachusetts and Pennsylvania, and only a small fraction of that received in New York. The receipts from inheritance taxes in these states for the last fiscal year were as fol- lows: New York, (year ending September 30, 1909) $6,962,615 Pennsylvania, (year ending November 30, 1909) 1 , 739 . 852 ■ Massachusetts, (year ending November 30, 1909) 908, 134 California, (1907) 740,940 The larger revenue received in these states is due, in part at least, to higher rates of taxation on inheritances, and to lower ex- emption limits than in Illinois. In New York the rate in the case of direct heirs has been the same as Illinois (one per cent), but the exemption was only $10,000 for the whole estate, instead of $20,000 for each person; while the rate in the case of all collateral heirs has been five per cent, with an a cf. Billings v. Illinois, 188 U. S. 97 (1903). SPECIAL TAXES, LICENSES AND PEES 117 exemption of only $500. In 1910, a series of graded and progres- sive rates was established, rising for large estates to five per cent for direct heirs, and to 25 per cent for bequests to strangers in blood. Pennsylvania imposes no [inheritance tax in the case of direct heirs, but the tax on collateral inheritances is five per cent, with an ex- emption of only $250. In Massachusetts, the rate in case of direct heirs is from one to two per cent, with an exemption of $10,000; and in the case of collateral heirs, from three to five per cent, with an exemption of $1,000. In Wisconsin and California the rate on direct inheritances is from one to three per cent, and on collateral inheritances from 1^ to 15 per cent. In European countries inheritance taxes have also been imposed at progressive rates, which rise even higher than in the United States, and have become very important sources of revenue. In Great Britian (under the budget of 1909-10) any portion of an estate exceeding $750,000 (£150,000) will pay at least 10 percent; and any part of an estate of over $5,000,000 (;£1, 000,000) passing to a very distant relative or by will to a stranger in blood pays about 23 per cent. In France, on so much of any inheritance as exceeds 1,000,000 francs, the rates are from 3 to 18^ per cent, and on the portion over 50,000,000 francs ($10,000,000) very distant relatives are required to pay 20^ per cent, and direct heirs 5 per cent. In Germany the rates are still more sharply progressive; and inheri- tances exceeding 1,000,000 marks ($250,000) going to distant relatives are taxed 25 per cent .2 Nine of the Canadian provinces have inheritance taxes, all graded and progressive. The lineal rates are from one to ten per cent, with exemptions from $5,000 to $50,000; the collateral rates are progressive, from 2^ to 15 per cent, on amounts in excess of $2,000 to $80Q,000.' The International Tax Conference on State and Local Taxation has endorsed a bill for an inheritance tax at rates from 1 to 4 per cent on transfers to near relatives and from 2 to 1 5 per cent on collateral inheritances. It thus appears that the rates of taxation on inheritances in Illinois have been low, and even the increased rates of 1909 are moderate, in comparison with other American states and with foreign countries. An increase in rates to those of New York, Wisconsin or California, would bring in much larger revenue than at present. It is also probable that the administration of the inheritance tax could be made more efficient, by further supervision over the a Dept. of Commerce and Labor: Digest of Inheritance Tax Laws (1907), b Second National Conference on State and Local Taxation (1908) p. 173. 118 SPECIAL TAXES, LICENSES AND FEES local officials directly charged with the assessment and collection of the tax. In Massachusetts, the State Tax Commissioner has important powers in connection with the inheritance tax, and his office is a "clearing house for all the probate courts of the Common- wealth."" In New York, the State Comptroller appoints ap- praisers in fifteen counties, and attorneys in every county, in connection with transfer tax cases, and he may appeal from the original appraisal in any case.*" Canal Tolls and Other Canal Revenues. The financial transactions connected with the construction and operation of the Illinois and Michigan Canal have formed an im- portant part of the financial history of the state. Yet the canal finances are only partially reported in the accounts of the State treasury; and the ordinary receipts from tolls and rentals are published only in the reports of the canal trustees and the board of canal commissioners. As early as 1822, Congress authorized the vState of Illinois to open a canal to connect the Illinois River with Lake Michigan ; and in 1827 made a grant of land to aid in its construction. After various preliminary surveys and abortive efforts at construction, active work was begun in 1836 and continued until the failure of the State Bank and the breakdown of state credit in 1842. In 1845, an additional loan of $1,600,000 was secured by turning over the canal and the canal lands to a board of trustees for the benefit of the creditors, the canal and canal property to revert to the state on the completion of the trust. The trustees completed the canal, which was opened in 1 848 ; and continued in charge of its operation and finances until 1871, when it was turned over to the state. Meanwhile, the City of Chicago had lowered the summit level of the canal, the cost of which was later repaid by the state; and in the 70's, navigation on the Illinois River was improved by the construction of locks at Henry and Copperas Creek. The expenditure for construction of the canal and river im- provements was about $10,300,000. In addition, interest pay- ments on loans, which have not been fully computed, amounted to several millions; so that the outlay (exclusive of operation, main- tenance and repairs) has been more than $13,000,000. a Report of the Tax Commissioner, 1909, p. 35. b Report of the State Comptroller, 1910, pp. xvi fi. SPECIAL TAXES, LICENSES AND FEES 119 Table 20. EXPENDITURES FOR CONSTRUCTION, ILLINOIS AND MICHIGAN CANAL. By the State, up to 1845 $ 5, 133,062.21 By the Board of Trustees, 1845-1871 1,429,606.21 By City of Chicago — deep cut 2,955, 340 . 00 Illinois River Improvements, — 1878 795,284.82 Total $10,313,293.24 Interest and Premiums on Loans BY Board or Trustees. 1845-1871. On Loan of $1,600,000 $ 553,771.31 Arrears on Registered Bonds 2, 155, 622. 35 Premiums on Gold for payments in London 370,864.42 3,080,258.18 $13,393,551.42 Loans and Land Sales. Until the Canal was opened, the principal source of revenue was loans. The bonded canal debt in 1845 was $5,383,000; and the new loan of $1,600,000 made at that time made $7,000,000 borrowed capital. The work done by the City of Chicago in lowering the summit level was also equivalent to a loan by the city to the State, so that the total loans amounted to about $10,000,000. These loans, with interest, were later repaid to a considerable extent from the sale of canal lands, tolls and other canal revenues. But the payments from these sources appear to account for only about $8,500,000; and the remainder was paid from general taxation, the Illinois Central Railroad Fund, and perhaps from other sources of state revenue. The 480,000 acres of land granted by the United States Govern- ment were expected to pay a large part of the cost of the Illinois and Michigan Canal. Up to 1842, about half of this seems to have been sold for upwards of a million dollars. In 1845, there was turned over to the Board of Trustees 224,965 acres of canal lands, and 5927 town lots in various towns along the canal from Chicago to LaSalle. Most of these lands and lots were sold by the trustees ; and they formed the largest source of revenue during the period from 1845 to 1871. The maximum revenue in one year from lands was $628,812.35 in 1855; and the aggregate from 1845 to 1871 was $4,706,482.68. The canal trustees turned back to the state in 1871 about 300 acres of unsold land and about 400 lots, valued at $78,498.88. Since then sales have been gradually made, amounting usually to only a 120 SPECIAL TAXES, LICENSES AND FEES few thousand dollars a year, but in 1907 to $42,071.78. The receipts from land sales from 1871 to 1908 have been $121,942.83. The total receipts from the land grants have been about $6,000,000, as follows : — Table 21. PROCEEDS OF SALES OF CANAL LANDS. 1830— 10,580 acres $ 14,204.87 135 acres in Chicago and Ottawa 4,594.00 1836— Sales in Chicago and Ottawa 544,074.97 1836-42-40,295 acres 302,248.40 189 lots 77,793.00 Stone and Timber 9 , 659 . 00 1842— Due Canal Fund, a /c Sales 207 , 682 . 53 Total $1,160,256.77 1845— Total Receipts from Sales.b 1 , 152 ,064. 79 1845-1871— By Board of Trustees 4,706,482.68 1871-1908— By Canal Commissioners 121,942.83 Total $5 , 980 , 490 . 30 The canal lands still owned are nearly all lots in the cities along the canal ; and with the increase in the value of this urban property, especially in Chicago and Lockport, the present holdings have been valued (Nov. 30, 1907) at $168,878.59, or more than twice the valuation placed on the lands and lots held in 1871. Canal Tolls. When the canal was opened in 1848 a tariff of tolls was estab- lished by the Board of Trustees. This included boat tolls, tolls on passengers and tolls at specific rates on about 150 different com- modities. There were 13 different rates of freight tolls on goods charged by weight, ranging from one mill per 1,000 pounds per mile, on ice and coal, to 25 mills on spirits (except whiskey) and furs. Tolls on lumber were based on measurement, and on brick on number. Toll rates were changed from time to time, and tended down- wards. The toll sheet of 1867 shows ten sets of toll rates per 1,000 pounds, ranging from one mill on coal, clay and sand, to 8 mills on household furniture. A comparison of the tolls in 1848 and 1867 shows a number of interesting changes in the toll rates on various commodities, The tolls on general merchandise (not otherwise specified) had been reduced from 15 mills to 4 mills; and on raw cotton from 10 mills to one mill per 1,000 pounds per mile. On a Message of Gov. Ford, Dec. 8, 1842. b Report of Chief of Engineers, U. S. A., 1887, pp. 2147, 2148 SPECIAL TAXES, LICENSES AND FEES 121 other articles, such as hides, molasses, and potatoes, the reduction had been much less ; and on some goods the tolls had been increased, as on com and oats from 3 to 4 mills per 1,000 poimds per mile. In 1872, the tolls on com, oats and lumber were reduced; and the toll sheet of 1875 shows marked changes, both in rates and in the kind of goods shipped by canal. The list of commodities on which rates were announced was reduced from 150 to 50, most of the more highly finished articles no longer appearing. Rates were also lowered, ranging from ^ mill per 1,000 lbs., on coal, to a maxi- mum of 3 mills, on household furniture. On some articles the toll on through freight was lower than on local freight. Further reductions were made in toll rates in 1880 and 1888; but almost no change has been made since the latter date. The revenue from canal tolls amounted to $87,883 in 1848; increased to $118,375 in 1849, and continued to increase to a maxi- mum of $302,958 in 1866, this year showing the largest number of boat clearances on the canal. After that date, although traffic held its own , the receipts from the lower toll rates decreased to$149,635 for 1870, the last full year under the board of trustees. During this period the receipts from tolls aggregated $4,405,658.27; ex- penses for administration, maintenance and repairs for the same period were about $2,500,000, leaving a considerable balance which went towards paying the interest and principal of the canal debt. After 1870, the receipts from tolls continued to decline, although the tonnage moved showed no marked falling off. In 1878, the receipts from tolls were less than $100,000; and in 1882, when the traffic reached the maximum of 1,011,287 tons, the receipts from tolls were only $85,947. Since 1879 the receipts from tolls have been less than the current expenses for maintenance and repairs; but with the other revenues from rentals and sales of land, they were sufficient to meet these expenses for twenty years more. After 1892, and more notably after 1899, the tonnage of traffic on the canal rapidly decreased, to a minimum of 35,480 tons in 1906. In 1899 receipts from tolls and lockage fees from the Illinois River locks were only $34,022; in 1900, they had decreased to $16,440; and by 1907, to $2,176.87. 122 SPECIAL TAXES, LICENSES AND FEES Table 22. RATES OF TOLL AND LOCKAGE, ILLINOIS AND MICHIGAN CANAL, 1848, 1867, 1875, 1880 and 1888. [Compiled from Reports of the Board op Trustees and Canal Commissioners] 1848 1867 1875 1880 1888 Freight Boats, cts. per mile CoalBoats, per mile Passenger Boats, per mile Lockage at Henry, cents per ton measurement. . . Lockage at Cop- peras Creek, cts. per ton msm't. . Passengers, each . . 3.5 3.0 6.0 .4 3.5 3.0 "".2 3.5 1.5 3.0 1.0 1.0 3.0 1.0 1.0 Mills, Per 1000 Lbs. Per Mile. K « it u M O « a < 8 11 8g is is U w o « g u Spirits (except whiskey) & Purs Househ'dFurnit're Household Furni- ture, (with emi- grant families) . . Baggage Merchandise 25 20 15 20 15 15 15 12 12 12. . 10 10 10 10 10 8 8 7i 7 6 6 3 3 3 3 2i 2 2 1 1 1 6 8 5 4 5 3 6 5 3 3 3 50 2 2 30 2 2 30 2 2 50 2 2 30 1 1 30 Tobacco, Mfd, .... Molasses Sugar Coffee i Hides, Wagons, Eggs 6 S 4 3 1 4 3 2i 4 4 3 4 4 4 3 2 ■ 1 1 li 1 Butter, Fish Wool Whiskey, Soap . . . Cotton raw 1 1 30 Beef Pork Bacon. . -. Flour 2 2i 2i 3 30 50 2 14 2 14 30 30 1 1 J ^0 Wheat 15 Salt 1 24 24 14 3 3 50 50 48 1 14 14 14 14 14 20 30 30 1 J i 70 Oats 15 Com .... 124 Stone, cut & sawed Lime, common. . . . Coke 2 1 1 4 1 4 2 2 1 4 14 4 50 30 30 30 30 15 1 i 4 4 14 1 4 4 4 2 4 20 30 30 10 15 15 1 i i 4 14 i 1 i 2 i 20 SO Clay SO Sand 10 Ice 15 Coal 15 Limiber,perlOOOft Dressed Flooring, 1,000 ft Siding, per 1 ,000>ft Lath, per 1,000. . . Shingles, per 1 ,000 Brick, per 1,000, . 10 24 10 12i "is" 2 2 10 64 5 4 1 1 5 74 6 5 1 1 S 100 100 100 30 30 100 4J 3 14 i f 2 5 4 2 1 4 3 50 50 25 124 10 50 "i' 5 4 2 1 4 3 50 SO 25 124 10 50 SPECIAL TAXES, LICENSES AND FEES 123 Leases and Rentals. In addition to the canal tolls, there are some other sources of income in connection with the management of the canal property. Formerly these were of very minor importance ; but in recent years, with the decline in receipts from tolls, they are relatively of more significance. The more permanent sources are from leases and rentals of the 90-ft. strip of land on either side of the canal and for the use of water power; while more fluctuating sources of income are from interest, the sale of stone, timber, old materials and other miscellaneous items. During the trustee period (1845-1871), the revenue from these sources generally ranged from $3,000 to $10,000 a year; but occasionally was larger, with the maximum of $30,000 in 1866. After 1871, the ordinary revenue from these sources in- creased; and after 1881 it was regularly over $20,000 a year. Since 1900, the revenue from these sources has decreased; and was $15,858.81 in 1908. The larger part is now received from water power rentals, which yielded $9,288.43 in 1908. The receipts from rentals, leases and miscellaneous items are now several times the receipts from canal tolls and lockage fees. From 1900 to 1908, the income from the former sources was about $140,000; and from the latter $36,000. For some years after 1870 the ordinary canal revenues were considerably larger than the ordinary expenses; and, as provided by act of 1872, payments were made to the State treasury. In 1872, these included the balance of $92,545.79 turned over by the board of trustees, and $136,000 from the new canal commissioners to the Illinois River improvement f\uid, and $36,080.33 to the general revenue fund. In the next two years, $183,000 was paid into the Illinois River fund; and in the following four years $96,000 to the same fund. Altogether about $500,000 was paid to the treasury, but onl}' $36,080 to the general revenue fund. Since 1877, there has been no payment to the treasury, except in 1895, when $50,000 was turned over. In 1879, and afterwards from time to time, the general assembly made contingent appropria- tions to meet canal expenses if needed; but these were not used, except $25,000 in 1891 and 1892. Two years after the canal com- missioners made the last deposit (of $50,000) in the treasury, their balance was so reduced that the general assembly appropriated the same amount ($50,000) toward canal expenses; and from 1899 on, legislative appropriations were made to supplement the canal revenues. In 1903, the Supreme Court held that appropriations 124 SPECIAL TAXES, LICENSES AND FEES for the canal were in violation of the provision in the Constitution of 1870 that "the general assembly shall never loan the credit of the state, or make appropriations from the treasury thereof, in aid of railroads or canals."" Since then, however, appropriations have been made for the Illinois River, the locks and improvements in which are practically an extension of the canal; and these appropriations have been an addition to the revenues of the canal commissioners. During the past ten years, about $300,000 have been received from such appropriations. Table 23. GENERAL ACCOUNT OF THE BOARD OF TRUSTEES OF THE ILLINOIS AND MICHIGAN CANAL, FROM JUNE 26, 1845 TO APRIL 30, 1871. Receipts. Payments. Loan of $1,600,000, principal and interest. . Construction of Canal Feeders, etc Canal lands, sales, protection, etc Arrears of interest on registered bonds Principal of registered bonds Maintenance and Repairs of Canal and Feeders Tolls, Collections, Inspection and Salaries Canal damages, flowage, etc General expenses and contingencies Premium on gold for dividends on bonds pay- able in London Interest and Exchange Losses on "wild cat" currency, counterfeit bills, broken banks, etc Balance April 30, 1871 1,601,891.90 2,132.25 4,706,482.68 111,003.97 4,405,658.27 3.00 923.27 181,412.07 2,153,771.31 1,429,606.21 115,523.32 2,155,622.38 2,195,463.67 1,853,049.61 160,462.71 22,163.32 421,600.82 370,864.42 21,073.80 14,563.52 95,742.41 Totals . $11,009,507.41 $11,009,507.41 SUPPLEMENTARY STATEMENT, TO SEPTEMBER 30, 1871. 1871 April 30 . . Aug. 16.. , Sept. 30 . . Balance due State of Illinois Interest $95,742.41 1 264 95 Interest 446 18 General Expenses and Contingencies Exchange on New York $4889.77 17.98 Aug. 16.. . $97,453.54 4 907 75 Balance paid to State Treasury Oct. 7 . . . . $92 545 79 a Burke v. Snively, et. al., 208 111. 328. (1904). 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M O . .rOf^ O O ■ oo a NO !>. 00 ON O i-HCNCO'^hLO'Ot^OOONO tH Cn^ CO ^ lO NO t^ oc ■^ -t -* -^ to to to to lO to U-i U". lO LO NO NO NC NO NO NO NO NO NC Nor^ pH^ 00 CO CO 00 00 OOOOCOCOOOOOOOOOCOOO 00 CO CO CO oo oo CO DC 00 00 S 1 S - o t <; H O 'A CO " Eh o 2 Z H J CO Q (Si 5 Z -: < 2 CO g &^ H Q tj a W ■< (Sj n ■J g '^ 3 "^ J Z" H PS -< 3 H W CO < O K O O J U 13 -^ Pi z °s " EHgH "I w y E- d 2 o h Os O Ov \0 "1 0^ ^Oi-i-^ w oooooo oooooo oooooo h 00 ■* CO rg ■^ fo ■« CM lO i/l rO ■.-I ro CN^rooO'^voroOCOOO "efr^ro-cJHcOOsO'^OOio CMO00"cl<'*00vOt^i-H'^ U^\0 ^ fCO f* ^H 00 ':t< CM lO ^00 i-i t^ 00 r- r* vo O ^ f^ lo O ^ 0\ ro »0 ^ 00 CO r^ ^O ■^ Oi 0\ 00 rD "O ^ OOt^OfOOt-O ■* oo ^ 00 O C?v t^ O 0^ 0\ DiO 00 0>iO 00 lO J> t— ■* O t— r.■^^oo fu-)O\f0>or0 00r-^00 M00Of0-'-"*0OO\\O ro »0 1-1 CM (M C»0000O00O>^t^»Ot^ OOOOONO-^Ot^OOON-H CMr*ooO\ OOOOt^ 1000C>'*OOCN(Ml>-TfC> OCMi-icovOfOOOO*-^(M OfOCMCOO'^'^f'^OCS CO CO OJ 00 r^voiT) lo OOOsOOi C0"Ot-»(M roO COO *0>0 ^0\0 -] OO '-'O f :5^ o -ooc 3 ,-1 Tf r- 00 u ■'-"O0\C0OOCNO noocM-.*oo\oo--' vOCNrh\OlOfOi-ico rOCNOOTOOtNO u^Ot-f^'OO^OO'-' Tjtt^u-j'Oioco-^rO S2 00li-)V0»O--'fMO00CMCN OOO'O-^^O^oo^o ■HCMOJCMCMrOi-KNCN ^~^^CMoo•oc^o»oo^^* iO00OCNOO'O]'0iO>O ■*O^^^O^'-'O»J^O^'r-l00 cOOWir^i— "'0'0'0'-<\0 cOOOO.O\cOOMO>OtJ\Oi-iOOCMO--HOiro OCh^CNC-lOOOvlnOiCN ■^ro-^(NiJ->COC00000'^ tats OO OO OO OO OO o-o ^o coo O " 'O '-' ■^CNtO-^m^Or-OOO^O c^c^c^c^o^o^o>o^c^o COOOOOOOOOOOOOCOODOi OChr*'-'cooo*0-'-> CM r- lo lo ro m f '-'OOOOlOOOfO'-'^ OOCMlO^^>OCMrO COOOf— OO^^rOOO OOCMOcOOcOrOVO ^Olot-C^O■^C^00 OlO C<1 \OfO 0\CM OM-- CMOIO O :00 :00 :00 i-lCNfO^lO^Ot— 00 oooooooo Q\ O^ O^ Q\ O^ O* 0\ Q^ p a ^1 TJ Si W a o ^ o CI 1 s mi^ SB 0.2 bop s?. 128 SPECIAL TAXES, LICENSES AND FEES Table 26 — Continued. RECEIPTS AND DISBURSEMENTS ON ACCOUNT OF THE CONSTRUCTION OF LOCKS AND DAMS AT HENRY AND COPPERAS CREEK, IN THE ILLINOIS RIVER. Period. Appropriations Disbursements To Dec. 1, 1870. . . $400,000 $172,303.58 227,696.42 1 Lock and Dam J at Henry. To Jan. 15, 1872 $400 , 000 . 00 XJ. S. Government By State-1875 -1877 $ 62,359.80 190,303.32 157,444.19- ■j Lock and Dam |- at Copperas J Creek. $410,107.31 receipts and disbursements op the canal commissioners, on account op the little WABASH RIVER IMPROVEMENTS. Year. Appro- priations. Tolls, Wa- ter Power, ETC. Total Receipts. Disburse- ments. Balances 1870 $35,000 $2,108.71 3,139.65 636.96 1,930.25 433.36 350.84 330.00 330.00 $37,108.71 $36,124.13 1,312.53 2,500.00a 295.41 2,945.98 360.69 78.81 234.28 31.85 $984 58 1871-2 1873 311.70 653 25 1874 1875 1876 362.736 290.066 18 03 6 1877 77 69 1878 375 84- a To State Treasury. h Deficit. EXAMINATION, INSPECTION AND MINOR LICENSE FEES. In addition to the fees and special taxes on corporations, insur- ance companies and inheritances, which bring in a considerable revenue, there is a large number of minor examination, inspection and license fees imposed by the state and collected by various of&cials and boards. In some cases, small amounts are paid into the State treasury from these sources; but none of them produce any important revenue, and in a number of cases there have been no payments into the treasury, and the receipts can only be learned by examining the reports of the various boards and offices. SPECIAL TAXES, LICENSES AND FEES 129 Sundry Fees Paid to Secretary of State. In addition to the corporation fees, various other fees are paid to the Secretary of State: for notarial, justices', and miscellaneous commissions, for anti-trust affidavits, and other items. For several years fees for hunters' licenses and employment agents were also paid to this official; and since 1907 license fees for motor vehicles and chauffeurs are paid to him. Taken together, the collections for these minor fees amounted to $11,094 for 1880-82; and have increased to $105,435 for 1906-08. Of this latter amount $39,884 was for automobile fees. Combining the corporation fees with these other items, the total net collections of fees by the Secretary of State amoimted to $14,125 for 1872-74; to $97,786 for 1892-94, and to $898,857 for 1906-08." Up to 1892, the fees collected by the Secretary of State appear to have been turned over to the State Treasurer every six months ; and the amounts received by the Treasurer for each fiscal period of two years corresponds, in most cases exactly, with collections report- ed by the Secretary of State. In 1894, the Secretary of State paid over to the Treasurer the collections for the six months ending September 30th on October 1st, after the Treasurer's books were closed; and the treasury receipts thus appear about $28,000 less than the collections by the Secretary of State. A similar situation appeared at the end of the next two-year period, in 1896. After the latter date, the vSecretary of State ceased to report collections semi-annually, as had been done before; and simply reported the total collections for each two-year period, with no statement as to the amovints paid over to the State Treasurer. From this time, treasury receipts from the Secretary of State, as shown by the reports of the Treasurer and Auditor, fall consider- ably below the collections of the Secretary of State, in one year by nearly $150,000; and by the end of 1904 the aggregate of collections reported was more than $450,000 larger than the sums paid over to the Treasurer. During 1904-06 a large part of this difference was paid into the treasury, — ^the treasury receipts for this period being $224,000 more than the collections by the Secretary of State. In the next two years (1906-08), the treasury receipts were again larger than the collections ; and most of the collections appear to have been turned over to the treasury. The Secretary of State's report, however, continues to state simply the amount of collections, and does not state (as up to 1896) the amounts paid to the Treasurer. a cf. Table 27, p. 130 (9) 130 SPECIAL TAXEvS, LICENSES AND FEES Pi o <1 t3 o M < cq w P oi Ph H b n w H (X < u H m u ^J H H Pi < o H W h P!i p< o O M M w rt o e-i cd >H n m w ►J Q p. W S H o o u w J J o o w w w fe 1 Q Paid State Treasurer in Same Fiscal Period. 00 iZ)\ri-LO O t^ fo (N i>- r. On th !>. 00 O o o t^ oo r^ CM -^ lO C>^iJ-> O • CN CN O 00 Os fO CTs in O CO 00 CM CM-- 00 -^ o t^ y3 00 so (M O ■* ■^ *>• i>- CO O ^ lO ^ii-1 -^ ■et^ - OO OS \0 1-^ j>. (M tJ< CO -^t^ r^ Om CO vo a>^-i* C> CN -^ ■<* O 00 O O O cv 00 tn cs CN 00 O O 1^ 1>- Ln 00 O "^ '-I - cq NO ^ ro vo in in O On ^ y-t ui SO O On CN CM NO Z 00 VO ■w CO O O O w ^ CN) (M POi>. f. H ' O CO 00 O Om M o w CO NO O 00 00 ^« ■^ CN On O vo 00 hJ C^ NO O r. in -r-i vo CO !>. CO vo -^ »-H NO in O ^in 00 t^ NO O C'] o CO OO CM CN N . . m WW w Cs) w LT O i^ lo J>. fO CN -^ : t^ O <^ CN ■^ CO in r^ CN 00 Z c- vo '^m Oslo C^ c^ : c^ cs) u-> o c^ -^ O CO w vo -J 2 li- o ■^ r^ ro On I>- 0> : -o CN NO 00 NO NO ON O O '-H - 00 On C\ : ^ Cn J>. t-H ly-i 00 ■^ t^ '^ 00 O B ^:^ '^ On rO (N 00 O O ■^ :ij-) 00 r^ 00 NO ■■-H CO 00 o^ O ■»-< CN CN Cs : CO ■^ c^ -^ CM !>• C<1 CO O CM o CN -^ NO SO t^ 00 On O ^ N : -Cj - : NO W CN 00 O 00 so ,-1 CM t^ CN 'rt< t^ CN CN oo 00 NO CM T^ c^ in < R r-tin y-i : lo ■rH O ■^ CO NO CO CO On CN J w CN r->^ lO -^ -:*< CO NO i>. .^ OO in ►Jfe r- r^ \0 : o^ 0\ ■^ ■^ u^ to ■^ CO CO ^ B . o 2? fO rO CN : ^ NO t^ c^i -^ in O T^t^ <^ . O (^ 1^ LO Tfl O OO CN VO oo OO : °° '^^f' O 00 ro vo ■^ -^ CN CN m w CN OO : T-i fO ■^ NO CO -^ C^ CN OO 00 s§ t^ -r-l CN : ^ 00 NO r^ 00 ^-H !>. O CO in fO -rH CN ^ oo CO NO T-H CM VO 00 t^ g- t^ IT) VO : ^ oo *H On r^ r^ CO o in CO a €©= " C<1 w CM CN CMO lO :tH 00 C^ C^ NO On ooi>- oo c> Pi M 00 O Os : ^ vo O vo CN J>. C^ W -^ 00 Os -^lO : On J>- -^ -^ o c^ w --H com 9 "^ O H O C^ rO CN : o oo lO NO CS) IT) *^C0 O CN SO ON w : NO in O -^ in -^ ^ voin T^ r^ th CN ; ■^ CO -^ oo ooin in O t-^in tH T-H : *^ CO t^ I^ 00 CN in CO '^ T-H ■^ CO NO in so J>- oo «^ ■ Q go fe hj O g CO O CO -— : : ^— BlE NIA Per] End Nov. ^ ■<-> "O 00 O CN -^ \0 OC o CN -^ vo 00 O CM -^ vo 00 I>- OhJ^- X^ 00 00 00 oo oc On On On C^ O O O O O O 00 OJ 00 oc 00 c JO — 1 oc oc oc 00 oc 00 00 00 On On On On On o ■c ass^ _0 00 o 9 CO -^^ (N ^ 00 00 :2 '^. cs- n- °^" C3 lo th C^ CO p^(» i^ ^ f^ 4J m m w w H o o 1-4 O < ■< ■O PS ta pi. o Pi Ph ij -< ^i o to PS FM w H en w J T-HCN'^ PS < lOCN'-it^'OiOOO'OChi-i C^^^ovocS^O■■-|'-'C^^O^O u^r^^^'O'-^c^(^^!00OO O'OC0eN00OvOCNt~-.Ti< ■.-HipHTt o U - - (U o IS OJ O ■ ° S S o g s s P.5,!> > 0.3^0 o o o 00 O m a o s S 8 "i .9 iH .2 " • o o o o •go "O g ■d o O ^ CN (M ro ^ f^ 10 -.-< -.-1 ,-t CO '-I N w JJ • -J (U C rt >j .2 S," w O 4J g L. g o l«! ( j>i>; w .— ( o o a o wo ^ si CO i^ "d e cs -W § J^ 0^ g cii oj (u gJ rC] o o > ca CO oi ■I -M -s 2 ef p 7; (i; PS CO O CO O STATE BOARDS OF EQUALIZATION AND TAXATION 165 < 6h O Z o <; < Q O tS) d O m Q < O pa w H < H ■oxg 'SNOix www w ■ w U3 y] w y) ■ w (l5 tu ■ 4) ■ -WW w tfl 1 -VHOdHOO iQ SiNaHssassv CD (D i i >^ i^i i >H>^ >^ :t>^ : : loo :. : : : O : ^ : OO o >^ : : : O O : : : : O ; o B! : : : o ■* : lo : lO < u : • J : ; : ro c^ : : (n ; 1 QJ : ID CO CN ■ PhO . o ■."n : O ■ o > ■ . d O . ^ : . (UO • y. . . QJ . OJ rv QJ o • :-S : .go . d H^ ■ 211 ■ f^"*^ 4^ d . . &.2 ^.fE .2 d CD (uqi! c OOGO OOt,dO 0?> ^ o lect lect xO 1 > c o 1 Fi^filiy C ) pL|WM CO r^ : CO CO "^ >o rr> ' JO HaaranM Q : : m '■ '■ a '■ S -1927) . of Rail- ation . . ;ation of ssm't. . . 1 d J d ■< . . o 2 -i sioner gent., qualiz pprais ation . isioner (1909- ors . . . sation •3:3 :< "3 g --d a-.T ■ § c C a* c ■< ( i .| ca cS X SS S3 J 'o'o O I 2 -d i 173 -t^ +-' 4J -p H P555mco m paPnHcoPQ Mm PQHc^ d d O O +3 c £ M eorgia lorida labama :ississippi ouisiana exas klahoma rkansas ennessee Kentucky ■ e 3^ • d ! d .2 ' c5fe< S hJ H o< H M C 3 § 1 166 STATE BOARDS OF EQUALIZATION AND TAXATION n < M < I— I o I— t o •z. o hH < < Q 2; H>H>H •S1VI0IJJ0 O w m :«•::■::«:: Jf? ?? M St" ^v^o'x jio HOisiAaajng . OJ (LI . . > ; ; : ; ^ > : : (U (U ^ ^° w W M w w w w w w WW If w '■ m Vi P H CD OJ 0) (U H >.>. >h>h>h|>(>h>h >H>^ !X-H >>< W 2 : :::::: d : : >^ : :::::: : : "C : : a oo o :o::::::o:: fc ■ -ess <; o oo : : O O O ►J o o>/^ :ir> : : : : : : lo : : ^ : : o "o o 1 ^ ..-<»n -^ icsiiiiiitN:: c : ; r^ CN fo ; M M M i ; ^ • ; i ■ • X : :w : '-' o '^ se g 6 6 ! o .!D (U..a to '. Oci 1 m o "Baa enat enat Cou a . oW a ffi distri nd Se ndSe >, ClJ oJ • o! cfl.- or a cio. iby or a W ^iH ^H.S.2 ^H .2 .2 .2 .2 .2 .2 v-.2 ^ in ^ I'OOOOOOCJOOOOOOOO.C ■g ^ goo goooooo go g gp giE^^S l^l?l WOOMWOHWWHWWOHOO OWWcsO ssvaji^ ^c»>o::^:::iii'*::CN -* i^f-^'i" J 3 KHax •s aaawap\r vOrOCO-^^ocor^loloioior/^T-iw^ :vO ■* i iio CO ao HaawnN CN : a d d d d d d d n ization ization d :di2 ■o g o o S o o o •2 "3 2 o • o £ >;z;c ! il \ \ c C \ CHAPTER X. TAXATION OF CORPORATIONS IN THE UNITED STATES. The general property tax is still a more common basis for the taxation of corporations than any other system of taxation. But in most of the states there are variations in the methods of assessment or in the application of the general property tax, for all or certain classes of corporations, — such as a central state assessment, or the assess- ment of capital stock or franchises. In a number of states distinct methods for the taxation of corporations, differing from the general property tax, have been established, such as state taxes on capital stock or on gross or net earnings. To a large extent these variations in methods of assessment and the distinct corporation taxes are different ways of endeavoring to secure the same result, — ^the assess- ment and taxation of the property of corporations at its full value, as distinguished from the stun of the values of the detached items of physical property. GENERAL PROPERTY TAX. In all the states, corporations are generally assessed and taxable upon at least a part of their property for local purposes ; and in many states the state constitution prevents the exemption of corporate property from taxation under the general property tax, or the substitution for it of any other kind of tax upon corporations. But even where the taxation of corporations is based on the general property tax, there are in every state some differences in the admin- istration of the tax system with reference to at least some classes of corporations. In most states some corporate property is assessed by a state board ; in a considerable number of states capital stock of corporations is distinctly assessable for taxation; and in others the valuation of corporate franchises is required to be included in the property assessment. Capital Stock. A number of states specifically provide for the assessment of the capital stock of corporations, — or more exactly, for levying taxes on the amount by which the value of the capital stock exceeds (167) 168 TAXATION OF CORPORATIONS IN THE UNITED STATES the value of tangible and other property assessed to the cor- porations. This "corporate excess " is taxable to the corporation in Illinois, Indiana, Minnesota, Nebraska, North Dakota, South Dakota, Tennessee, Mississippi and North Carolina. The assess- ment of capital stock is usually made by the local assessors ; but in Illinois is made by the State Board of Equalization. Contrary to the general theory of the general property tax, shares of stock are usually not taxable to the holder; but there are some exceptions. In fotir states (Delaware, Georgia, Louisiana and Washington) stockholders appear to be taxable on their stock, without reference to any taxes paid by the corporations; and in three others (Maryland, Alabama, and — ^for some corporations — Iowa) stockholders are expressly taxable on that portion of their holdings which represents corporate excess. In many other states, capital stock of corporations is subject to corporation taxes distinct from the general property tax. Thus in Massachusetts, the "corporate excess" is subject to state taxation; and in New York and Pennsylvania there are state taxes on capital stock in lieu of other taxes. These and other instances of distinct corporation taxes are noted further below. '"The capital stock of mercantile and manufacturing corporations was taxed in one form and another in 1903 in the following (22) states and territories : Alabama, California, Colorado, District of Columbia, Illinois, Indiana, Kansas, Louisiana, Massachusetts, Maryland, Minnesota, Mississippi, Nebraska, North Carolina, North Dakota, Ohio, Oregon, South Dakota, Tennessee, Texas, Vermont and Virginia."" Bank stock is in most states (as in Illinois) assessed at the bank in the name of the shareholders, at market or book value of shares, at the same rate as other personal property, with allowance for any property assessed and taxed to the bank. In some states, bank stock is assessed to the shareholder where he resides, unless out of the state. In several states, banks are subject to a special corpora- tion tax. Franchises. Another method of assessing corporations so as to tax the excess value of their capital stock is by including corporate franchises in the valuation of their property. Frequently corporate and special franchises are taxed under the general property tax by coming a Third International Conference on State and Local Taxation, p. 314. TAXATION OF CORPORATIONS IN THE UNITED STATES 169 Table 41. ASSESSMENT OF CORPORATION PROPERTY BY STATE OFFICIALS.^ State or Territory Rail- roads Tele- graph Co.'s Tele- phone Co.'s Sleeping Car Co.'s Etc. Express Co.'s Frt. Line & Eq'p't Co.'s Street Rail- roads Pipe Lines Maine (*) New Hampshire . Vermont (o) Massachusetts {b) Connecticut (^) Yes Some Yes Yes Some Some Rhode Island. . . . New York (b) . . . New Jersey {>>) . Pennsylvania (6) . Some Yes Some Maryland Virginia {b) W. Virginia (*) . . N. Carolina (b) Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Florida Yes Yes Yes Yes Yes Yes Mississippi Yes Yes Yes i Yes ' Yes 1 Yes 1 Yes Yes Texas (*) Yes Yes Yes Yes Yes Yes Yes Kentucky Ohio {b) Yes Yes Yes Yes Yes ■■■■-■-■■ Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Michigan Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes ! Yes Minnesota (*) ... Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Missouri Kansas Yes 1 Yes Yes 1 Yes Yes Yes "Yes" Nebraska ""Yes" Yes South Dakota. . . North l3akota. . . Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Wyoming Colorado New Mexico Yes Yes Yes Yes Yes Yes Yes Utah Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes ij Yes b Yes Yes Washington a Compiled from U. S. Census Report on Wealth, Debt. & Taxation (1902), and N. Y. State Library Legislation Bulletins. b Distinct State Taxes on Corporations. 170 TAXATION OF CORPORATIONS IN THE UNITED STATES under the definition of personal property. In other states franchises are^specifically mentioned as taxable property, as follows : — Massachusetts, Vermont, New York, Michigan, Minnesota, Wisconsin, Wyoming, North Carolina, Tennessee and Texas. [^Certain classes of corporations in Louisiana, North Dakota, Utah and Washington. Railroads in Kentucky, Indiana, Illinois, Colorado, Arizona and California. In New York special franchises are defined as real estate, in order to prevent the deduction of debts from the valuations, as is allowed in the case of personal property assessments. State Assessment. In practically all the states railroad property, or certain classes of railroad property is assessed by state officials ; and in many states property of other public service corporations is similarly assessed, — such as telegraph and telephone companies; sleeping, dining and parlor car companies, freight line equipment companies, express companies and (in a few states) street railroads. In Illinois only railroad'property is thus assessed by the State Board of Equalization; and the value of railroad property is determined by valuing separ- ately the main track, second and side tracks and rolling stock. In a number of other states, such as Indiana, Michigan and Wisconsin, the valuation of the property of each of such corporations is deter- mined as a whole, on the basis of earnings; and in such cases the system of state assessment of the property as a unit may accom- plish the same result as the separate assessment of capital stock or franchises. CORPORATION TAXES. In addition to the variations shown above in the application of the general property tax to corporations, most of the states have particular methods of taxing corporations, either in general or on certain special classes of corporations. In many states these dis- tinct corporation taxes are applied only to a few cases ; as in Illinois, where the distinctive corporation taxes are those on foreign insur- surance companies, other than life, and the seven per cent of the gross receipts of the Illinois Central Railroad Company. But the following seventeen states have an extensive system of distinct corporation taxes, some general and some special:— Maine, Massachusetts, Vermont, Connecticut, New York, New Jersey, Pennsylvania, Delaware, Maryland, Virginia, West Vir- ginia, North Carolina, Ohio, Michigan, Wisconsin, Minnesota and Texas. TAXATION OF CORPORATIONS IN THE UNITED STATES 171 Table 42. TAXATION OF CORPORATIONS OTHER /THAN /BY GENERAL PROPERTY TAX. a i. a H >• M to W Si SPECIAL CORPORATION TAXES State or Territory 1— I Q Pi 1^ ft o M 1 9 . [£| o, n H8 Yes "Yes" Yes Yes Yes "Yes"' Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Hew Hampshire Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Massachusetts Yes Yes Yes Rhode Island Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes New Jersey Yes Pennsylvania Yes Yes Yes Yes Delaware .... Yes Yes District of Columbia .... Yes Yes Yes Yes "Yes" Yes Yes Yes "Yes" "Yes" Yes '"Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes F'rgn Yes Yes West Virginia Yes Yes South Carolina Yes Yes Yes Yes Yes Georgia Florida Yes Yes Yes Yes Yes Yes Yes Mississippi Texas Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Kentucky Yes Ohio Yes "Yes" Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Indiana I.C.R.R Yes Yes Yes Michigan Yes Yes Yes Yes Yes Yes Minnesota Yes South Dakota North Dakota. Yes Yes "Yes" "Yes"' Yes Yes Yes Yes Yes Yes Yes Yes Yes "Yes " Yes Yes Wyoming Yes Yes Utah Nevada Oregon Washington Yes Yes a Compiled from U. S. Census Report on Wealth, Debt & Taxation, and Naw York State Library Legislation Bulletins. 172 TAXATION OF CORPORATIONS IN THE UNITED STATES General Corporation Taxes. In seventeen states (including twelve of the above list and five others) there is levied a general corporation tax, on all corporations, in a form different from the taxes applied to natural persons. These are as follows : — Maine, Vermont, Massachusetts, New York, New Jersey, Pennsylvania, Delaware, Virginia, West Virginia, North Carolina, Alabama, Texas, Ohio, Colorado, CaHfornia, Oregon and Washing- ton. These "general corporation taxes " are levied in different forms. In New York and Pennsylvaina there is an annual state franchise tax on capital stock, at comparatively high rates, and in lieu of other taxes (except in some instances local taxes or taxes on real estate). Jn Massachusetts, there is an annual state franchise tax on "corporate excess," in lieu of all taxes, state and local, except on real estate. In the other states, the general corporation tax is an annual franchise tax at comparatively low rates, based on authori- zed capital and not carrying exemption from other taxes; and is often combined with other taxes on special classes of corporations. A large part of the revenue from such general corporation taxes is collected from public service corporations and from banks, in- surance companies and other financial institutions. In many states most of the revenue comes from such sources. In Massachusetts, New York and Pennsylvania, however, a large revenue comes from business and miscellaneous corporations, as shown below: Table 43. STATE REVENUE PROM CORPORATION TAXES IN MASSACHUSETTS, NEW YORK AND PENNSYLVANIA. Massa- chusetts 1907 New York 1909 Pennsyl- vania 1909 Public Service Corporations Banks and Insurance Companies Business Corporations Miscellaneous $3,234,676 4,286,607 2,356,552 86,199 $3,106,890 4,393,592 $ 9,556,965 4,025,971 3 673 396 1,251,436 Total $9,964,036 $8,671,920 $17,256,332 Incorporation and license fees are required in all of the states for the organization of new corporations, for an increase in the capital stock or for the admission of foreign corporations. These are not, strictly speaking, taxes; although in a few states a considerable revenue is derived from this source. TAXATION OF CORPORATIONS IN THE UNITED STATES 173 Special Corporation Taxes. Distinct corporation taxes on special classes of corporations are levied on insurance companies, banks, railroads and other transporta- tion companies (such as sleeping car and express companies) and on telegraph and telephone companies. Insurance companies are more often subjected to special corpor- ation taxes than any other class of corporations ; and in every state except Nevada, there are special state taxes on one or more classes of insurance companies. These taxes are usually levied on gross premiums or net receipts. Banks are, for the most part, taxed under the general property tax, by special licenses or under the general corporation tax (if one exists). Special corporation taxes on banks are in force in Maine, Pennsylvania and Delaware; and savings banks are subject to special taxation in a number of eastern states (all of New England, New York, Pennsylvania, Delaware and Maryland). Railroads are subject to special corporation taxes in about twelve states, — mostly on the Atlantic seaboard and in Michigan, Wisconsin and Minnesota. The most usual form of such special taxation is a tax for state purposes on the gross or net earnings, at rates varying -from one half of one per cent (minimum in Maine) to ten per cent of net earnings (in Delaware). In about six states railroads are taxed for state purposes, on the value of their capital stock. In Michigan and Wisconsin, they are taxed by the state on a state assessment of their property, at the average rate of taxation on general property throughout the state. In North Carolina and Mississippi, railroads pay a license tax, analagous to the general licenses on other lines of business. Special taxation on other transportation and transmission com- panies is most often based on gross receipts in the state, as in New York and Pennsylvania; but is sometimes based on mileage (tele- graph and telephone companies in Connecticut and Alabama), or capital stock employed in the state, and in some cases a lipense tax is imposed (as on express companies in Alabama and Florida). BUSINESS TAXES AND LICENCES. Corporations are subject to the extensive systems of business license taxes, in vogue in the Southern States and also in Pennsyl- vania and Missouri, supplementing the general property tax and in part taking its place. In other states such business licenses are left almost entirely to the municipalities. The character of these license taxes is so varied as to defy classification, and the pur- 174 TAXATION OF CORPORATIONS IN THE UNITED STATES poses for which they are levied are extremely complicated. Fur- thermore, there is no data to determine to what extent such license fees are paid by corporations and by natural persons. In Vermont, Alabama and Colorado, however, there are license fees required of all corporations. License fees are levied on railroad companies in Tennessee and Mississippi. In various states license fees are levied on gas works or companies, transportation lines, water works and also on all manufacturers and merchants. In Pennsylvania the total state revenue from business licenses in 1908 was $3,178,131, of which $1,094,312 was from wholesale and retail mercantile establishments. CONCLUSIONS. Professor E. R. A. Seligman, of Columbia University, summarizes his conclusions in regard to the taxation of corporations in these words : — "The tendency of legislation and of judicial interpretation in the most progressive states is toward the following plan, which, although not yet completely realized in all its features in any one state, is in accord with sound economic principles : 1. Corporations should be taxed separately and on different principles from individuals. 2. Corporations should be taxed locally on their real estate only. 3. Corporations should be taxed for state purposes on their earnings, or on their capital and loans. 4. Only so much of total earnings or capital should be taxed as is actually received or employed within the state. In the case of transportation companies, a convenient and fairly accurate test is mileage. 5. Where the capital and loans are taxed, the residence of the shareholder or bondholder should be immaterial. 6. There should be no distinction between domestic and for- eign corporations. Each should be taxed for its business done or capital employed within the state. 7. If corporations are taxed on their property, property beyond the state should be exempt. 8. If corporations are taxed on their capital stock, they should not be taxed again on their property. 9. Where the corporate stock or property is taxed, the shareholder should be exempt. If corporate loans are taxed, the bondholder should be exempt. TAXATION OF CORPORATIONS IN THE UNITED STATES 175 10. Where the corporation and the shareholder or bondholder are residents of different states, the tax should be divided between the states by interstate agreements. 1 1 . An additional tax should be levied on corporations which have through natural, legal or economic forces become monopolis- tic enterprises."" The United States Commissioner of Corporations gives the following general results of a study of corporate taxation in New England and the Middle Atlantic states: 1. Each state has a system of its own, and as yet there is no marked tendency toward uniformity. 2. No state at present treats all corporations in exactly the same way, and as between the several sorts of corporations the tendency still seems to be toward further differentiation. 3 . In most of the states changes are so frequent as to indi- cate that as yet a satisfactory and ultimate method has not been discovered. 4. The income from corporate taxation is almost invariably increasing, partly because of increase in the number and size of corporations and partly because of changes in methods of taxa- tion. 5. There is a tendency toward separating sources of local revenue from sources of state revenue, and the taxation of corpor- ations tends to become a source of state revenue only, with the exception that corporation lands, other than rights of way, are still usually taxed like the lands of individuals. 6. The taxation of corporations is chiefly administered by state officials. From these results, it is safe to infer that each state would probably gain something by studying the systems of other states.* MASSACHUSETTS. General Property Tax. Domestic corporations are taxed by town and city authorities, upon their real estate and machinery; and foreign corporations are taxed in the same manner, and also upon their merchandise. Thus corporations are assessed locally on their real estate under the gen- eral property tax; but are assessed and taxed locally only upon specific classes of personal property, while the personalty of domes- tic corporations is reached mainly by the state tax on capital stock. a Seligman's Essays in Taxation, p. 262. b Report of the Commissioner of Corporations on Taxation of Corporations, Part II, p. 2. (1910). 176 TAXATION OF CORPORATIONS IN THE UNITED STATES General Corporation Tax — Capital Stock. There is a general provision for the taxation of corporations upon the "corporate excess," described below; but this is modified by subsequent legislation, applying to different classes of corporations. In ascertaining the corporate excess, the general requirements pro- vide for an annual return by the corporation to the Tax Commission- er, showing the amount and market value of its capital stock and assets and also the names of the stockholders with their holdings and addresses. The Tax Commissioner estimates the entire value of the capital stock from this return. Deduction is made for the value of real estate and machinery locally assessed; and the remainder, called the "corporate excess," is taxed at the average rate of taxa- tion for the whole state diiring the preceding three years. Such proportion of the tax collected by the state is returned to the towns and cities in which the stockholders reside, in proportion to the number of shares there owned. The portion of the tax which represents the tax on shares of stock held outside the state goes to the state. Under this arrangement it is estimated that about twenty per cent of the tax accrues to the state. The Tax Commissioner may request a corporation to appeal from the local valuation of its real estate and machinery. Public Service Corporations Railroads and other public service corporations are taxed upon the excess value of their capital stock over the value of property locally assessed, as described under the general corporation tax, but with special provisions for the division of the valuation of companies operating partly within and partly outside the state. In the case of railroads and telegraph companies, the division is based on mileage; in the case of express companies, on gross earnings; in the case of telephone companies, on the number of instruments. There are some other special provisions applying to particular classes of public service corporations. Besides the tax on "corpor- ate excess," street railways are subject to certain special taxes. In the case of express companies, stockholders are subject to taxation on their shares, as well as bondholders. Banks. Savings Banks in Massachusetts are required to pay a tax, in addition to the real estate tax, of one half of one per cent per annum upon the average amount of deposits for the six TAXATION OF CORPORATIONS IN THE UNITED STATES 177 months preceding the first days of May and November. Deduc- tions are made from the amount of the deposits for real estate, United States Bonds, and the shares of banks already taxed held by savings banks. Business Corporations. By an Act of 1903, certain limitations are placed on the assess- ment of the corporate excess of domestic business corporations, — except banks, insurance companies and transportation and trans- mission companies carrying on business within the state, but inclu- ding such companies organized in the state for carrying on business outside it. Deductions from the total value of the capital stock include the value of property located and subject to taxation in another state or country, as well as real estate and machinery locally assessed in Massachusetts. The Tax Commissioner in determining the value of the capital stock of a business corporation may not take into consideration any debts of the corporation, unless the returns contain a sworn state- ment that no part of such debt was incurred for the piu-pose of reducing the amount of taxes. The tax levied on the corporate excess of business corporations is not to exceed a tax on an amount 20 per cent in excess of the value of the real estate, machinery and merchandise and taxable securities ; nor is it to be less than one-tenth of one per cent of the market value of the capital stock. Beginning with 1909, the tax apportioned to resident stockhol- ders is distributed one-half to the cities and towns where the tangible property of the corporation is located and the other half to the cities and towns where the stockholders live. In the year ending November 30th, 1908, the assessed " corporate excess " value of mercantile and manufactiiring corporations in Massachusetts was about $145,000,000, on which the state tax (of $1 .70 per $100) yielded $2,466,000. At the same time, and with the stringent Massachusetts regulations as to the organization, powers and liabilities of corporations, that state has a larger number of active corporations in proportion to population, and a larger proportionate number of new corporations than many other states, and stands fourth in the Union in capital employed in manufacturing." a W. H. Corbin, Tax Cominissioner of Connecticut, in 3rd International Con- ference on State and Local Taxation, p. 314. (12) 178 TAXATION OF CORPORATIONS IN THE UNITED STATES Table 44. MASSACHUSETTS STATE REVENUE, YEAR ENDED NOVEMBER 30, 1907.o Corporation Taxes, Fees, Corporation Certificates, etc $ 86, 199.91 Public Service Corporations, Railroad Companies $1 , 434 ,159.28 Street Railway Companies 1 ,014,434. 73 Telephone and Telegraph Co's 448 , 323 . 04 Electric Light Companies 189 , 776 . 81 Gas Companies 112,038.51 Gas and Electric Companies 30,302 . 36 Water Companies 5 , 641 . 69 3,234,676.42 Banks, Trust Co.'s and Insurance Companies, National Bank Tax 913,544.69 Savings Bank Tax 1 ,953 ,406 . 11 Trust Companies 512,764.04 Insurance Tax and Licenses 562 , 522 . 94 Excise Tax on Life Ins. Companies. . . . 344,369.72 Business Corporations, etc.. Business Corporations .- 2 , 1 33 , 086 . 26 Miscellaneous 94,217.59 Siuidry Corporations 66 , 601 . 67 Cities and towns in readjustment 5 , 903 . 20 Excise Tax on foreign corporations 56, 7 44. 03 4,286,607.50 2,356,552.75 Total State Receipts from Corporations $9 , 964 , 036 . 58 Less Portion distributed to Cities and Towns, From Street Railwav Tax 1,014,434.73 From National Bank Tax 540 , 984 . 1 7 From other Corporation Taxes 3 , 701 ,874. 52 5,257,293.42 State's Share of Corporation Taxes $4 , 706 , 743 . 16 Other Special Taxes and Receipts: Liquor Licenses $ 839 ,367.25 Collateral Inheritance Tax 772 , 499 .25 From United States (for Colleges, Soldiers' Home, etc.) 98,244.39 Transfers from Ftmds 439,544.56 Interest on deposit of Funds 41 , 429 . 39 Accrued interest on lands sold, etc 66 , 706 . 96 Temporary Loans 2 , 100 , 000 . 00 Sundry fees, licenses, income from institu- tions, etc 348 , 576 . 41 4,706,368.74 General Property Tax 4 , 000 , 000 . 00 Total State Revenue for State Purposes $13 ,413 , HI .90 Per cent of total state receipts from corporations 53. 37 Per cent of state revenue for state purposes from corporations . 35.09 Per cent of state revenue for state purposes from all special taxes and receipts 70.18 a Compiled from Report of U. S. Commissioner of Corporations on Taxation of Corporations, Pt. I, pp. 98-99. TAXATION OP CORPORATIONS IN THE UNITED STATES 179 Foreign Corporations. Foreign public service corporations are taxed upon "corporate excess " in the same manner as similar domestic companies. This includes railroad, street railway, electric railroad, telegraph, tele- phone and express companies. Foreign corporations, corresponding to domestic business corpor- ations, are required to pay to the state an excise tax of 1-SOth of one per cent of their authorized capital stock, the total tax not to exceed $2,000. For local purposes, foreign corporations of this class are taxed upon real estate, machinery and merchandise. Foreign corporations failing to pay taxes in Massachusetts may be enjoined from doing business. Shareholders and Bondholders. The shares of stock of domestic corporations, and of those foreign corporations doing business within the state and paying the state ' tax on corporate excess, are not taxed in the hands of holders as personalty. Shares of foreign corporations generally are taxed, and no deduction is permitted for property taxed within the state ; but shares in foreign transportation and transmission companies (which are subject to the state tax on corporate excess) are not taxed to the stockholder. Bonds and other evidences of corporate indebtedness of both foreign and domestic corporations are taxable to the holders as is other personal property. The Massachusetts system of taxing corporations has been en- dorsed by various special tax commissions. The Massachusetts Commission of 1875 said: This system, of corporate taxation had its origin here, and may be claimed as a Massachussetts specialty. We regard it as a most valuable contribution to fiscal science." The Massachusetts Commission of 1897 said: This tax is designed to bring about the taxation of such cor- porations fully and fairly, in such manner as to reach all their property, and to reach it once and once only. ***** The corporation tax is particularly simple and is assessed with tmerring exactness, in the case of large and well known corpora- tions whose shares are regularly dealt in, and consequently have a publicly recorded value. Railways, banks, the larger manufac- turing corporations, and others whose stocks are frequently a Quoted in Report of U. S. Comm'r of Corporations on Taxation of Corpor- ations. Pt. I, p. 101. 180 TAXATION OF CORPORATIONS IN THE UNITED STATES quoted, are taxed without a word of inquiry and without a possi- bility of escape. A very large number of miscellaneous corpora- tions are in a somewhat dififerent position. ******* There is reason to believe that sometimes the taxes on corporate excess are partially evaded * * * * ; but the evasions are insignificant in comparison with those as to taxable securities. * * * * A^s a whole this part of our tax system is an excel- lent example of the method of taxing corporations at the source, and of refraining from any dealings with the individual holder of corporate securities, — a method admitted on all hands to be the simplest, most efficient, and most equitable in the taxation of corporate property." NEW YORK. Corporations in New York are taxed locally on their real and personal property tinder the general property tax, the value of "special franchises " (mainly for the use of the public streets) being assessed as real estate by the State Board of Tax Commissioners. There is also an elaborate and complicated system of state cor- poration taxes, which has gradually developed, supplementing the general property tax. There is first, the "organization tax" on domestic corporations, with a corresponding "license tax" for foreign corporations; second, an annual franchise tax, based upon the capital stock, at rates which vary somewhat with the dividends ; and third, a series of "additional" and other franchise taxes on different classes of corporations. Almost 32 per cent of the total state tax receipts are from cor- porations. The other important items of state revenue are the liquor tax, inheritance tax and stock transfer tax. The separation of state and local taxation is nearly complete. General Property Tax — Special Franchises. All corporations, domestic and foreign, pay the general property tax, practically like individuals, but for local purposes only. In the assessed value of real estate, subject to the general property tax, is included (since 1899) the value of so-called "special franchises " of public service corporations. Formerly the value of "special franchises " was nominally included in the personalty assessments; but these were offset by the debts of the corporations. The change in the form of assessment so as to class special franchises as real estate, was made so that the provision in regard to the deduction of debts would not apply. At the same time, to secure a more expert and more equitable assessment, it was provided that the valuation of a Report pp. 14, 69-70. TAXATION OF CORPORATIONS IN THE UNITED STATES 181 these "special franchises " should be made by the State Board of Tax Commissioners; and certified by them to the local taxing au- thorities. The assessment of " special franchises " in this form has added a good deal to the total assessed valuation of property. In 1900, the aggregate special franchise valuations for the entire state amounted to $266,000,000. In 1908, this had increased to $601,072,557, or about one-fifteenth of the total assessed valuation of real estate. Of this latter amoimt, $492,492,970, was in the City of New York. The collection of taxes on these special franchise valuations has, however, been much delayed by litigation, — at first as to the validity of this method of assessment ; and later, when the method of assess- ment had been upheld, by proceedings to contest the valuations made by the State Tax Commissioners. Corporation Taxes. Organization and License Fees. Every stock company when incorporated pays a so-called organization tax of one-twentieth of one per cent of authorized capital stock, which is collected by the State Treasurer. The same rate applies to every increase in capit- alization. Every foreign company entering the state pays a "license fee " of one-eighth of one per cent of the capital stock employed by it in the state. Banks and Insurance Companies pay special fees to meet the expenses of the banking and insurance departments. Annual Franchise Tax. This is a tax for the privilege of doing business, based on the amoiuit of capital stock employed in the state, and varies with the dividends of the corporation. Where dividends are more than six per cent, the tax is at the rate of one- quarter of one mill for each one per cent of dividends declared on the capital stock during the year. If dividends are less than six per cent, the tax rate is three-quarters of one mill on the capital stock, or one and one-half mills on the valuation of the capital stock. Financial and certain manufacturing and public utility corpora- tions are exempt from this tax; but financial and public utility companies are subject to other special state taxes. An '' additional franchise tax" is levied upon steam railroads, express, telegraph, telephone and other transportation companies, at the rate of 5-lOths of one per cent of the gross earnings from intra-state business, in addition to the capital stock tax 182 TAXATION OF CORPORATIONS IN THE UNITED STATES Other Franchise Taxes. Corporations exempted from the general franchise tax on dividends or capital stock are subject to varying rates, based on earnings and dividends. Elevated railroads, or siirface railroads not operated by steam, pay one per cent of gross earnings, and three per cent on dividends in excess of foiir per cent upon the actual amount of the paid up capital. Waterworks, gas, electric, or steam heat, light and power Table 45. NEW YORK STATE REVENUE, YEAR ENDED SEPTEMBER 30th, 1909." General Fund. Direct Taxes $ 330,436.87 Indirect Taxes Excise (Liquor Tax) 5 , 140 , 524. 21 Corporations, Transportation— Capital Stock $ 903 , 3 50 . 62 ^ Transportation — Earnings 1,339,352.52 Telegraph and Telephone, Capital Stock . 184,732.59 Telegraph and Telephone, Earnings 1 9 1 , 492 . 1 3 Gas, Water, Electric Light, etc., Earn- ings 487 , 963 . 04 Total PubUc Service Corporations . $3 , 106 , 890. 90 Trust Companies 2 , 141 , 508 . 56 Insurance Premiums 1 ,237 , 173 . 55 Savings Banks 890 , 160 . 76 Foreign Banks 44 , 749 . 83 Miscellaneous — Capital Stock 1,226,306.76 License Fees 25,129.84 $ 8,671,920.20 Organization of Corporations 343 ,938.99 Transfers (Inheritance Tax) 6 , 962 , 615 . 23 Stock Transfers (Stamp Tax) 5 , 355 , 546 . 16 Mortgages 1,844,821.45 Racing Associations 65 , 166 . 74 Non-resident Taxes 24,018. 12 Public Lands— Sales 43 ,671 . 75 Fees and other receipts ot State Officers and Departments 535 , 702 . 68 Fines, Fees, Duties, etc 146,241 .56 State Institutions 575 , 399 . 69 Other Receipts 1 , 171 ,765.23 Total General Fund Receipts $31,211,768.88 Canal Fund 13,254,411.94 Highway Improvement Funds 6,955, 489 . 25 Common School Fund 474,369.77 U. S. Deposit Fund 280,854.92 Literature Fund 31 ,315 .00 Forest Preserve Fund and Military Record Fund . 2,029.53 Cornell University Fund 75,000.00 Total Receipts, all sources $52,285,239.29 Transfers between funds 8,028,954.68 Total Receipts, including Transfers $60 , 314. 193 . 97 a Annual Report of the Comptroller, 1910, pp. 3, 6-9. TAXATION OF CORPORATIONS IN THE UNITED STATES 183 companies pay S-lOths of one per cent of gross earnings and three per cent of dividends in excess of four per cent. Insurance companies generally pay one per cent on the gross premiums; but fire and marine companies incorporated in other states are excepted, and if incorporated in a foreign country, the rate is 5-lOths of one per cent ; and life, health and casualty compan- ies incorporated under the laws of foreign countries are excepted. Trust companies, incorporated in New York, pay one per cent on their capital stock, surplus and undivided profits. Savings banks incorporated in New York, pay one per cent on the surplus and tmdivided earnings. Foreign bankers pay five per^cent on the interest earned on money loaned in the state. Stock Transfer Tax. There is imposed upon all sales or transfers of shares of stock, domestic or foreign in the state, a tax payable by the vendor, of two cents on each share of the face value of $100 or less. Foreign Corporations are taxed practically like domestic corporations, for both state and local purposes. Stockholders- and Bondholders. Shares of stock in domestic and foreign corporations are exempt from taxation in the hands of holders. Bonds of domestic and foreign corporations are taxable, for local purposes only, in the hands of holders, except that bonds secured by real estate mortgage 5 upon which the recording tax is paid are exempt. ' 'NEW JERSEY. There has been no state tax on real and personal property in general since 1884. The property of railroad and canal companies is assessed by a State Board of Assessors ; and the state obtains its revenue from a tax on such property, from franchise taxes on the gross receipts of other public service corporations and on the capital stock of other corporations, and from a collateral inheritance tax, a poll tax and leases of riparian lands. Corporations pay over ninety per cent of the state taxes for state purposes. Railroad and Canal Companies. Every Railroad and Canal Company is assessed by a State Board of Assessors on property used in the operation of the line. The franchise is considered an element of such property; and the courts have held that the valuation may be based on the aggregate 184 TAXATION OF CORPORATIONS IN THE UNITED STATES market value of stocks and bonds, less debts due creditors within the state. Stocks and bonds in the hands of the holders are not taxed. Since 1906, a state tax at the average rate of taxation throughout the state ($1,808 per $100 in 1909) is levied on the value of the main stem and franchise and tangible personal property used in State commerce ; but the revenue in excess of one-half of one per centiun is apportioned to the maintenance of free public schools. Real estate used for railroad purposes, other than the main stem, is taxed at full local rates; and all of the tax upon this " second class " rail- road property is collected and remitted by the State Comptroller to the taxing authorities of each municipality where such property is located. The assessed valuation and taxation on the property of railroad and canal companies for 1909 is shown below: — Assessed Valuation — Main Stem and Franchise $ 176 ,044, 200 Tangible Personal Property used in State commerce . . . 29,990,265 Total assessable for State uses 206 ,034,465 Real Estate used for railroad purposes, other than .main stem 73,025,146 Aggregate $ 279,059,611 Valuation of general property 1 , 949 , 687 , 287 Taxation — State Tax at average rate of $1 .808 per $100 $3 , 725 , 103 , 14 Taxes on real estate other than main stem 1,324, 992 . 01 Total 5,050,095.15 AUoted to municipalities 4,019,922.82 For State Uses $1,030,172.33 Other Public Service Corporations. Real estate and personal property of public service corporations, other than railroads and canals are taxed by local assessors for local purposes. The valuation of the corporate franchise cannot be included in the valuation of personal property for taxation; and debts due creditors residing within the state may be deducted. Corporations, domestic or foreign, can only be taxed on personal property actually within the State. All public service corporations (except street railways, railroads and canals) using streets, highways or public places, are required to pay an annual franchise tax of two per cent on gross receipts. The tax is apportioned to the taxing districts in proportion to the asses- sed value of property therein in streets, highways and public places, and is then assessed and collected by local authorities and devoted to local purposes. TAXATION OF CORPORATIONS IN THE UNITED STATES 185 Express companies and palace and sleeping car companies pay a State tax of two per cent on gross receipts from business done in the state. Formerly street railways paid the same gross receipts tax as other public service corporations. But by act of 1906, the rate is a,miually increased one-half of one per cent, until in the year 1911 it will reach a maximum of five per cent. Table 46. GROSS RECEIPTS AND FRANCHISE TAXES ON PUBLIC SERVICE COR- PORATIONS IN NEW JERSEY, 1909. Gross Receipts. Franchise Tax. Street Railway Companies Gas and Electric Light or Power Companies Water Companies Telegraph and Telephone Conipanies District Telegraph Messenger Companies . . "Sewer Companies Oil or Pipe Line Companies Total Apportioned to Taxing Districts 1 Electric Light Company 1 Parlor, Palace or Sleeping Car Company . 5 Express Companies State Revenue $11,759,073.26 13,9S6,341.S6 2,633,850.39 3,832,454.81 47,982.54 143,148.11 21,516.35 $411 279 567.55 126.77 52,676.96 76,649,08 959.64 2,862.96 430.33 $32,394,367.02 $824,273.29 824,273.29 8,810.95 194,279.50 66,148.04 44.05 3,885.59 1,322.96 $ 5,252.60 Banks and Trust Companies. Real estate of state and national banks and trust companies is assessed where situated for local and school purposes. Shareholders of banks are taxable for local and school purposes in the tax district where they reside, on the actual value of their shares less a propor- tionate deduction for real estate of the bank separately assessed. The tax on shares of non-residents is assessed where the bank is located, is paid by the bank and charged to the holders. In asses- sing shares of stock the same deductions and exemptions are granted as in the case of other taxable property owned by individuals. Trust companies are assessed in the taxing district where the office is situated on the full amount of capital stock paid in and the accumulated surplus, less.the assessed value of real estate separately taxed. Mortgages and other exempt securities held by a trust company may also be deducted. 186 TAXATION OF CORPORATIONS IN THE UNITED STATES Savings banks in New Jersey are without capital stock. They are assessed locally on their real estate and other assets except mort- gages and exempt securities; but most of their assets are of the exempt class. Deposits are subject to assessment to the depositors in the same manner as other personal property. Insurance Companies. Real estate of insurance companies is taxed where situated for local and school purposes. Domestic insurance companies pay local taxes in the taxing district where the principal office is located. Domestic life insurance companies also pay state taxes of one percent on their surplus and 3S-100ths of one per cent on gross premiums in all the states. Foreign life insurance companies are taxed only under a retaliatory law. Foreign fire insurance companies are subject to a state tax of two per cent on premiums received in the state ; but companies of states imposing a greater tax on New Jersey companies are subject to an equal retaliatory tax. Taxes on life insurance companies in 1909 were as follows: — 4 Life Insurance Companies — Surplus $30, 914, 493. 97, Tax $309,144.93 Gross Premiums 70,299 , 747 . 19, Tax 246,049.11 Total $555,194.04 Less rebate 115,924.35 Net Total $439,269.69 Miscellaneous Corporations. Real estate and tangible personal property of business corpora- tions are taxed where situated by local assessors for local and school purposes. Intangible personal property of domestic corporations is taxed where the chief office is located. In addition, all domestic business corporations (except manufac- turing or mining corporations, fifty per cent of whose capital stock is invested in manufacturing or mining within the state) are subject to an annual state license fee or franchise tax on the par value of capital stock issued and outstanding, at 1-lOth of one per cent on amounts not over $3,000,000, at l-20th of one per cent on amounts over $3,000,000 and not over $5,000,000, and $30.00 per million on capital stock over $5,000,000. The capital stock tax was assessed in 1909 on over 11,000 cor- porations with an aggregate capital stock of $7,943,297,667, on which the tax assessed amounted to $2,793,561.17. The table below shows the growth of taxes on miscellaneous corporations from 1884 to 1909, including the capital stock tax and the taxes on life insurance companies: TAXATION OF CORPORATIONS IN THE UNITED STATES 187 Table 47. TAXES ON MISCELLANEOUS CORPORATIONS IN NEW JERSEY, 1884-1909 .a Year. No. OF Corp' Assessed NS Amt. of Tax Assessed. 1884 619 2,103 6,602 11,022 $ 195,273.51 1890 574,048.16 1900 2,048,008.03 1909 3,238,083.46 Organization and License Fees. A tax of 1-SOth of one per cent is levied on the authorized capital stock of domestic corporations, and the same on every subsequent increase, and on every increase of aggregate capitalization through consolidation. But the tax for incorporation may not be less than $25.00, nor for an increase less than $20.00. A fee of $10.00 is charged for filing a copy of the charter of a foreign corporation, and issuing a certificate of authority to transact business, — but higher fees are charged in retaliation from corporations of a state charging higher fees to New Jersey corporations. Table 48. NEW JERSEY STATE REVENUE, 1905 AND 1909. 1905 1909 $2,423,846.04 942,272.23 295,437.42 176,569.65 202,667.87 558,282.94 $2,621,937.74 Railroads . . 3,756,021.44 183,954.25 218,623.32 Collateral Inheritance Tax 569,449.67 Miscellaneous 1,287,235.15 $4,598,075.75 $8,637,221.57 TAXES ON CORPORATIONS, 1909. Total Tax Assessed. To Local Districts. For State Purposes. Railroads $5,050,095.15 824,273.29 5,252.60 439,269.69 2,793,561.17 $4,019,922.82 824,273.29 $1,030,172.33 Public Service Corporations . . . Public Service Corportaions . . . Life Insurance Companies Miscellaneous Corporations .... 5,252.60 439,269.69 2,793,561.17 PENNSYLVANIA. Pennsylvania is the only state in the Union in which the general property tax has never existed. Real estate pays county and local a Twenty-Sixth Annual Report of the State Board of Assessors, Pt. II, p. 6. 188 TAXATION OF CORPORATIONS IN THE UNITED STATES taxes, as do also certain specified classes of personal property. Mort- gages, bonds and certain other classes of personal property also pay a state tax of four mills on the dollar, of which three-fourths is returned to the counties. The burden of taxation for state purposes is placed very largely on corporations, which are subject to a number of special taxes; and the revenues from corporate taxation in Pennsylvania are much greater than in any other state in the Union. There is also a state tax on collateral inheritances, and an estab- lished system of business taxes and licenses ; and special state taxes are levied on writs, wills, deeds and certain emoluments of public office. Local Taxation of Corporations. Corporations are subject to local taxation on their tangible property, in the same way as individuals. Railroads and other public service corporations are, however, (by judicial decision)" exempt from local taxation on such property as is essential to their business, except in Philadelphia and Pittsburg, where (by statute) the real estate of railroads is subject to local taxation. State Corporation Taxes. Besides a bonus on charters, there is a series of State corporation taxes, levied on capital stock, on loans and on gross earnings. The taxes on capital stock and on loans are imposed on corporations in general, with some exemptions. Taxes on gross earnings are impos- ed on public service corporations and insurance companies, in addi- tion to the taxes on capital stock and loans. Bonus on Charters. Every domestic corporation — except building and loan associations and corporations of the first class — pays for the privilege conferred in its charter, at the time of begin- ning business or increasing stock, a bonus of one-third of one per cent upon the authorized amount of capital stock. Capital Stock Tax. This was the first imposed in 1840, and has ever since been the largest source of state revenue. It is im- posed on all corporations, joint stock associations and limited part- nerships, with the following exemptions: (a) banks, savings in- stitutions and foreign insurance companies, which are otherwise taxed; and (b) capital stock invested and employed in manufac- a Lehigh Coal and Navigation Co. v. Northampton County, 8 Watts & Serg, 344 (1845). TAXATION OF CORPORATIONS IN THE UNITED STATES 189 turing, except brewing and distilling companies and such manu- facturing companies as exercise the right of eminent domain. The tax is levied annually at the rate of five mills upon each dollar of the actual value of its capital stock. Fire and marine insurance companies pay at the rate of three mills on the dollar; and wholesale distilling companies pay ten mills on the dollar. It has been held that the tax on the capital stock of a corporation is in fact a tax on its " property and assets, including its franchises."" The value is held to be a question of fact, to be determined by con- sidering, not only tangible property, but assets of every kind, in- cluding bonds and mortgages, franchises and privileges, and good will; and that earnings, dividends and prices of stock are factors to be considered. Officers of each corporation are required to submit an annual report showing the authorized capital stock, par value, amount paid in, highest and average prices of sales of stock, gross and net earnings, rate and amount of dividends, surplus and profits added to sinking ftand. The proportion of capital stock represented by tangible property in another state is not subject to this tax; while foreign corporations are taxed on that portion of their capital stock represented by pro- perty within the state. In the case of transportation companies, the value is determined on the basis of mileage. Shares of stock liable to the 'capital stock tax are not subject to the personal property tax in the hands of the holder. Shares of stock of banks and savings institutions are subject to a tax of four mills upon each dollar "of the actual value " of their capital- stock, ascertained by adding together the amount of capital stock paid in, the surplus and undivided profits. The option is al- lowed of paying a tax of ten mills on the dollar upon the par value of the shares, in lieu of local taxation except on real estate. "Full-paid, prepaid or fully matured" stock in building and loan associations, upon which cash dividends are paid, are also required to pay a state tax of four mills on the dollar, to be deducted from the dividends or interest. Corporate Loans. As a means of collecting the state tax on personal property in respect to corporate loans, the treasurer of each corporation is required to assess the tax on its bondholders, to deduct the amount from the interest due and return the same to the State Treasurer. a Commonwealth v. N. Y. P. & O. R. R. Co., 188 Pa. 169. (Nypano Case.) 190 TAXATION OF CORPORATIONS IN THE UNITED STATES The tax is laid on the bonds of all corporations, public and private, except banks, savings institutions and foreign insurance companies, but including county and municipal bonds. If no in- terest is paid, no tax is paid. The tax is not on the corporation or its property; but on the individual bondholders; and the corporation acts as collector. Early efforts were made to collect the tax from all bondholders, whether resident of Pennsylvania or not; but the attempt to tax non-resident bondholders was held to be unconstitutional." The act also provides that the tax should be imposed on foreign corpor- ations doing business in Pennsylvania ; but the U. S. Supreme Court has held that Pennsylvania could not require the officials of a foreign corporation paying the interest by check outside of Pennsylvania to deduct the tax. While the tax is supposed to be on the bondholder, it is estimated that seventy -five per cent of the mortgages made to secure cor- porate bonds provide that the interest shall be paid "free and clear of all state taxes ;' ' and the tax is thus in practice paid mainly by the corporations. Taxes on Receipts. A large revenue is also derived from taxes on the gross receipts from intra-state business of transporta- tion and transmission companies, and on the gross premiums of insurance companies. The tax on the receipts of transportation companies was first levied in 1866, at the rate of three-fourths of one per cent upon the gross receipts of every railroad, canal and transportation company. The tax is now eight mills on the dollar of gross receipts from business in the state ; and is levied on every rail- road, pipe line, steamboat, canal, street car, telephone telegraph, express, electric light and car company, including foreign as well as domestic companies. The tax does not apply to receipts from interstate business, nor to receipts for the transportation of the mails. This tax is in addition to the taxes on capital stock and corporate loans. Domestic insurance companies pay a tax of eight mills upon the gross premiums and assessments from business within the state, except companies doing business on the mutual plan, without capi- tal stock or reserve. The tax is in addition to the capital stock and personal property taxes; but bonds, mortgages and other securities held by these corporations in their own right do not have to be returned as personal property, as they have been included iii the tax on capital stock. a State Tax on Foreign Held Bonds, IS Wallace, 300. TAXATION OF CORPORATIONS IN THE UNITED STATES 191 Foreign insurance companies pay an annual tax of two per cent on gross premixuns received from business within the state. This is paid to the State Insurance Commissioner. These companies are not subject to the capital stock tax; but are subject to the state personal property tax. Corporations and limited partnerships not subject to the state tax on capital stock nor to the tax on gross premiums are required to pay a tax of three per cent on their net earnings or income. This applies to unincorporated banks and savings institutions; but yields little revenue. Brokers and private bankers are subject to a tax of one per cent on gross receipts. License Taxes. A distinctive feature of the Pennsylvania system of state taxa- tion, in contrast with other Northern states ; is the series of license taxes levied on various businesses, which in the aggregate yield an income of over $3,000,000 a year. The most important of these are levied on merchants and liquor dealers. Retail dealers and vendors pay one mill on each dollar of the gross business transacted annually ; wholesale dealers pay one-half mill on the volxime of their business. Wholesale and retail liquor dealers pay license fees to the state in addition to local licenses ; and state license fees are also imposed on brewers, distillers, brokers, auctioneers, peddlers, theatres and eat- ing houses. Corporations engaged in these businesses are subject to these license taxes in the same manner as individuals. Revenue from Corporations. About sixty percent of the state revenue is derived from corpora- tion taxes ; and the receipts from such taxes are almost equal to the total state revenue for state purposes. By far the most important form of corporate taxation is the tax on capital stock, which amoun- ted to $9,916,840.41 in 1909, or more than one-third of the state receipts for that year. The tax on corporate loans yielded $2,497, 480.81, the gross receipts tax $1,520,973.84 and the tax on premiums of insurance companies $1,553,894.07. About a third of the total state revenue comes from the taxes on public service corporations. Banks, trust companies and in- surance companies pay together about half as much as the public service corporations. There is also a large revenue ($3,673,369 in 1909) received from business corporations, including mining, manu- facturing, brewing and distilling and miscellaneous companies. 192 TAXATION O^ CORPORATIONS IN THE UNITED STATES Table 49. PENNSYLVANIA STATE REVENUE, YEAR ENDED NOVEMBER 30, 1909.o From Corporations: Public Service Corporations : Steam Railroads . . $5 ,195 ,216 .25 . . 2 ,016 ,019 .94 Telegraph and Telephone Companies . . 473 ,523 .38 Transportation, Miscellaneous 483 ,154 .91 Light, Heat and Power Comp anies 462 ,496 .88 Gas Companies 621 ,677 .19 Water Companies 253 ,193 .13 Bridge and Turnpike Companies . 47 ,265 .25 Ferry Companies 4 ,418 .04 $ 9 556 964 O"? Financial Corporations and Associations: ■ . $ 889 110 46 ,557 ,825 ,561 .24 .54 .29 State Banks Savings Institutions Trust Companies 1 ,199 ,350 .44 Building and Loan Companies 14 ,842 .05 Interest on Deposits 210 ,940 ,63 $ 2 ,472 ,077 .19 Insiirance Companies ; Foreign . . $1 ,340, ,215. 64 Domestic 213, 678. 43 $ 1, ,553, ,894, ,07 Business Corporations: Coal, Coke and Mining . . $1 ,321, .675. ,50 Manufacturing 988, ,460, ,83 Brewing and Distilling 334, ,716. 04 '■'67, yos 20 Oil and Minins* .... 90, 086 30 S8, 588 10 Market 13, 199. 85 Miscellaneous s 598, 674. 20 $13, $17 ,673, ,396, 332 ,02 Total from Corporation From and through Counties : ^5 Tax on Personal Prooertv .... $4,315,411 85 Tax on Writs, Wills, Deeds, etc . . . 204,933.61 Tax on Collateral Inheritance. 1,739,852.73 Tax on County Loans 230,735.51 Tax on Municipal Loans 129,930.39 Pamphlet Laws 179.09 47,875.10 Receipts from Licenses: $6,668,918.18 Retail Mercantile $758 ,277 .44 Wholesale Mercantile . . 277, ,600, ,13 Retail Liquor 641, ,152 .35 Wholesale Liquor 747, ,539 ,03 Brewers 305 ,382 .00 Distillers 47, ,056 ,75 Bottlers 62 ,370 .38 Billiards 112, ,750 .45 Brokers 60 ,254 .52 Auctioneers 13, ,896, ,73 Peddlers 6, ,034, ,35 Theatre 26, ,924. .18 Eating Houses 23, ,161, ,02 3,082,399.33 $9, 751, 317. 51 o Auditor General's Report, 1909, pp. 1-2, 347. TAXATION OF CORPORATIONS IN THE UNITED STATES 193 Table 49 — Continued. From Other Sources: Fees of State Officers 401 , 864 . 49 Allegheny Valley R. R. Co 102 , 500.00 Highway Department 1 , 172,518.63 Insurance of State Property 98 , 629 . 06 United States Government SO , 847 . 92 Miscellaneous 289,560.10 2,115,920.20 Grand Total $29,101,183,70 Returned to Counties (three-fourths of Personal Property Tax) 3 , 272 , 63 1 . 97 Paid to Cities and Boroughs (one-half of tax on Premiums of foreign insur- ance corporations) 127, 684 , 39 Paid to townships which have abolished the work tax 290 , 996 . 46 Paid to Counties, Normal Schools, High Schools, etc 7,677,881.79 11,369,194.61 Revenue for State Purposes $17 , 731 , 989 . 09 OHIO. Under the Act of May 24th, 1910, far reaching changes are made in the methods of assessing and taxing corporations in Ohio. The valuation of the property of pubHc service corporations for local taxation is centralized in the newly created Tax Commission ; while a number of state taxes on gross earnings (from intra-state business) and on capital stock are imposed, at varying rates, on different classes of public service corporations and also on other corporations. State Assessment. Provision is made for assessing the value of the property of public service corporations by the State Tax Commission, and for apportioning such valuations to the local taxing districts. In the case of express, telegraph and telephone companies, the value of their property is to be determined by the value of their capital stock with other evidences and rules ; and from the value so determined is to be deducted the value of real estate in Ohio as assessed for taxa- tion. In the case of other public utilities the property assessed by the Tax Commission shall be "all the personal property thereof, which shall include all real estate necessary to the daily operations of the public utility and money and credits within the state ; ' ' and detailed statements must be made of the various kinds of tangible property. State Corporation Taxes. On the gross receipts of public service corporations from intra- state business, excise taxes are levied by the state for the privilege (13) 194. TAXATION OF CORPORATIONS IN THE UNITED STATES of carrying on its intra-state business, as follows : — From each street, suburban and electric railroad company, electric light, gas, natural gas, water works, telephone, messenger or signal, union depot, heating, cooling and water transportation company, one and two- tenths per cent on intra-state gross earnings or receipts; from each express and telegraph company two per cent of all such gross receipts ; from each railroad company and from each pipe line company four per cent of all such gross receipts. The companies charged at the lower rates (1.2% and 2%) are also subject to the assessment and taxation of their property in the usual manner. Each sleeping car, freight line and equipment company is taxed one and two tenths per cent of the amount fixed by the Commission as the value of the portion of the capital stock representing the capital and property of each company owned and used in Ohio, after deducting the value of any real estate of the company in Ohio assessed and taxed locally. Each corporation for profit organized under the laws of Ohio is required to make an annual report, and is subject to a fee of three- twentieths of one per cent upon its subscribed or issued and out- standing capital stock. Each foreign corporation for profit doing business in Ohio must make similar annual reports; and is subject to a paj^ment of one- tenth of one per cent for 1910 and three-twentieths of one per cent for each year thereafter upon the proportion of the authorized capital stock represented by property and business in the state. Public utility, insurance and building and loan companies required to make other reports and subject to other taxes are not subject to these provisions. WISCONSIN. Unless otherwise provided, corporations are assessed and taxed in the same manner as individuals; but stock in corporations so taxed is not assessed. Public service corporations, and trust, guarantee and insurance companies are subject to distinct taxes or to special methods of assessment, as noted below. Financial Corporations. Trust, guarantee and insurance companies pay license fees to the state, in some cases at a fixed amount, and in others on a percentage of gross premiums received. Bank stock of state and national banks is assessable where the bank is located. TAXATION OF CORPORATIONS IN THE UNITED STATES 195 Public Service Corporations. Up to 1899, the general method of taxing public service corpora- tions in Wisconsin was on the basis of gross receipts. This system had its origin in 18 54, with a fiat rate on railroads; later, gross earn- ings taxes on railroads were levied at graduated and progressive rates, and also on other public service corporations. In 1899, the taxation of express companies was placed on an ad valorem basis, at the average rate on general property in the state; and practically the same method was applied to freight line and equipment companies, dining, parlor and sleeping car companies. In 1903 the ad valorem system was extended to railroads ; and in 1905 a statute was passed providing for its further extension within three years to all other public service corporations except telephone companies. Table 50. STATE ASSESSMENT AND TAXATION OF PUBLIC SERVICE CORPOR- ATIONS IN WISCONSIN, 1905 AND 1908. 1905 rate .0112726 1908 rate .0115124 Valuation. Tax. Valuation. Tax Railroads Express Co.'s. . . Sl'p'ng Car Go's. Freight Line & Equipment Co.'s Telegraph Co.'s. $228,810,000 808,453 370,352 250,581 $2,579,290.66 9,113.39 4,174,85 2,824.70 8267,861,500 813,156 460,546 313,660 1,950,000 33,932,000 $3,083,720.63 9,361.34 5,301.97 3,610.93 22 449 12 390,637.75a The assessment of public service corporations is made by the State Tax Commission, which also determines the value of general property in the state so as to determine the average rate of taxation. In applying this system to railroads, the tax commission in 1904 had made a detailed investigation of the cost of reproduction of the physical property of railroads; and also received reports from the railroads as to the amount and market price of capital stock, dividends, funded debt, gross earnings, operating expenses and in- come. But in assessing the value of the property of railroads and other public service corporations, the Tax Commission does not assess separate items of property, but values for taxation the whole property of each company as a unit, the franchise elements and tangible elements being regarded as inseparable parts of one thing. This method of making assessments has been upheld by the Wiscon- u Of this amount 85% (or $332,042.12) is distributed to towns, cities and villages, and the remaining 15% ($58,595.63) is retained by the state. 196 TAXATION OF CORPORATIONS IN THE UNITED STATES sin Supreme Court," the court holding that it did not conflict with the constitutional requirement of uniformity, which was held to refer to uniformity of burden, and not necessarily to uniformity of methods of imposing burdens. As to separating the value of the franchise and the physical property, the court said: " One might as well try to value the life blood of a horse or his capa- city to breathe, as try to place a value upon the visible part of rail- road property separate from its rights, franchises and privileges." Table SI. WISCONSIN STATE REVENUE, YEAR ENDED JUNE 30TH, 1908.6 State Tax from Counties : General Fund $ S38,473.87 School Fund $1 , 488 , 869 . 00 University Fund 652 , 427 . 00 Agricultural College Fund 4 , 242 . 00 Normal School Fund 266,099,00 Total 2,411,637.00 License Fees and Taxes: • Railroad Companies $3 , 265 ,676 . 73 Street Railway and Electric Light Co.'s 22 , 207 . 31 Express Companies 9 , 344 . 39 Sleeping Car Companies 5 , 343 . 28 Freight Line and Equipment Companies. . . 3,315,54 Telegraph and Telephone Companies 81,836,34 Boom and Improvement Companies 252,85 Plank Road Companies 173 . 39 Total Public Service Corporations S3 , 388 , 149 , 83 Insurance Companies 594,464.86 Loan & Trust Companies 9,915.38 $3,992,530.07 Inheritance Tax 245,653.32 Charitable & Penal Institutions 148 , 068 . 85 Department Fees and Miscellaneous Incorporation Fees 65 , 770 , 84 Insurance Commissioner 67 , 696 ,04 Miscellaneous— General Fund 285 , 01 5 . 84 418 , 482 , 72 Total General Fund $5 , 343 , 208 . 83 Miscellaneous — Special Funds : School Fund Income 84, 789 , 78 University Fund Income 317, 202 . 28 Agricultural College Fund Income 8,822.52 Normal School Fund Income 96 , 862 . 57 State Marshall Fund 37,459,84 545,136.99 State Tax (Special Funds, as above) 2,411,637.00 Grand Total . $8 , 299 , 982 . 82 MINNESOTA. " The Minnesota law provides two general methods of taxing cor- porations and their property. One is by the taxation of gross earnings at given rates and the other by an ad valorem assessment a Chicago & Northwestern Railway v. State, 128 Wis., 553, — 108 N. W. 557. b Compiled from Report of the Wisconsin Tax Commission, 1909, pp. 114-115. TAXATION OF CORPORATIONS IN THE UNITED STATES 197 of the properties of the companies. Nearly all the state wide public utility companies now pay the state on the basis of their gross earnings, but the domestic corporations engaged in manufac- ture and business enterprises, together with the municipal public utility companies — ^telephone companies excepted — are taxed under the general property tax."" Public Service Corporations. The taxation of railroads in Minnesota on the basis of gross earn- ings has been in force since the charters granted by the territorial legislature ; and this method has been recognized by provisions in the state constitutions, extended by statute, and accepted as constitu- tional by the courts. The gross earnings tax has been extended from time to time, until at present the taxes on telephone, express, freight line and insurance companies are based on their gross earnings. A^essel owning companies are taxed on the net tOnnage of their vessels. Between 1887 and 1891, the telegraph companies paid a two per cent tax on gross earnings; and in 1897 the sleeping car companies were given the option of paying a three per cent gross earnings tax or being assessed on their property holdings. The table below shows the methods of taxing various public service corporations in Minnesota: Table 52. TAXES PAID BY PUBLIC SERVICE CORPORATIONS IN MINNESOTA. Corporations. Date OF Laws Kind op Tax. Rate. Amount Paid 1908. Railroads Telegraph Companies . Telephone Companies . Express Companies . Freight Lines Sleeping Car Lines. , . . Vessels Insurance Companies . 1873 1887- 1891 1887- 1891- 1897 1897 1907 1907 1897 1895 1872 Gross Earnings. Gross Earnings. Ad Valorem . . . Gross Earnings. Ad Valorem . . . . Gross Earnings. Gross Earnings. Ad Valorem . . . . Gross Earnings. Optional Net Tonnage. . . . Gross Premiums 4% 2% Avge. ,425,305.26 21,609.93 3% 6% 103,053.87 31,090.42 4% 3 cts. per ton 2% 2,261.71 6,056.57 16,320.47 365,294.41 The Minnesota Tax Commission has recommended the further extension of the gross earnings tax to telegraph and sleeping car companies, and also to municipal utilities, such as street railways, gas and electric light and power companies. a Minnesota Tax Commission Report, 1908, p. 81. ., . 198 TAXATION OF CORPORATIONS IN THE UNITED STATES Banks. The Minnesota law providing for the taxation of banks and trust companies is said to have been, next to the gross earnings tax, the most satisfactory part of the tax code. The real estate possessions of a bank are listed and assessed just as other real estate, but the law requires the cashier, or other officer, to list the shares of capital stock, the amount of the surplus or reserve fund, including undivided profits and the amount of its legally authorized investments in real estate. The assessor is then required to deduct the amount of the real estate from the aggregate amount of the capital and surplus funds ; and the remainder is taken as the valuation of the shares held by the owners of the stock. As in the corporation law, the banks pay the tax for the stock holder, and are required to deduct the amount of the tax before dividends are paid. The State Board of Equalization has equalized the assessment of banks, both national and state, at fifty per cent of their book value. Savings banks are assessed in a somewhat different manner. Real estate is assessed as other real estate ; and from the aggregate of the assets the liabilities are deducted, and the remainder is listed as credits. Business Corporations. The method of assessing corporations and stock companies under the general property tax is ''to list and assess all their tangible property, real and personal, the same as the like property of other persons, and to list and assess their capital stock at its actual value less the value of tangible real and personal property otherwise specifically listed and assessed." In fact, however, very few corporations make any returns, as required by Section 838 of the Revised'Laws of 1906; and the law as it now stands is practically obsolete. The Minnesota Commission considers that, with the method now in vogue of financing large corporations by issuing bonds as well as stocks, what is known under the Massachusetts law as the "corporate excess" would seldom exist under the returns required by the Minnesota law. The owners of shares of domestic corporations, as well as those holding the shares of foreign corporations certified to do business in Minnesota are not required to list the property when the property of the company is assessed and taxed. But bonds are supposed to be assessed to the holders the same as other personal property. The taxation of foreign corporations is carried on in the same way and under the same provisions of law as that of domestic corporations. TAXATION OF CORPORATIONS IN THE UNITED STATES 199 Ore Land Assessments. The assessment of iron ore lands in Minnesota forms a special feature of the taxation problem in that state . Before 1907, the State Board of Equalization determined the amount of the assessment against the iron ore properties as a whole ; and representatives of the operators and owners met and distributed the assessment on the basis of output of the mines. Under this method small mines put- ting out large tonnages were assessed out of proportion to their value, and lands containing valuable iron deposits were allowed to stand at a nominal assessment as wild lands. During the summer of 1907, the State Tax Commission visited the iron lands, and made a detailed investigation to determine the valuation of the ore lands ; and this valuation was accepted without change by the State Board of Equalization. In the following year further work was done in perfecting the records and ascertaining values more carefully. The total valuation of ore lands, which was $64,486,409 in 1906, was increased to $190,094,438 in 1907, and somewhat reduced in 1908 to $176,340,749. The Tax Commission in 1908 considered it desirable that a tonnage tax on iron ore, reasonable in amount, be substituted for the state tax. Table S3. MINNESOTA STATE REVENUE, FISCAL YEAR ENDED JULY 31, 1908. I g 0> ID S o . CO w s '"' ft 5 § Bi O E- □ < tB i- »t O ft O w < M W a P^ o ft g w g S o M O « < < o o ►J Q 2; . O fTJ r'* ■r-( !>. th (NiOOO-^CM>.OOONOOr'- lONOO-toONOiOCNt^ro NOONONO^OONOfOCOCNt-^ ONOcoOCNr-coiOcO'* inotor-.NONOcooo-=*ON av'^NOrt^-^ON00t>";O O t^ CN C> ^O tJi CO OO oo CO r^ 00 J>-00(MCNCN^COCNOOOO ■^NOi-iCN'^ONCN-^OcO COOCTnOOcoJ^OnCNco t--r-.voc>c0ON0tr)-5:t0 ■^ CS (N ■ VO •^'Tt^^fOCOtoiOiOCNON Ot^corotoO^>"ONOOr^ '-(OCN^-hOcoCNCOcoco ■^NO-^cONOf^LOOOOOO oONOOiocor^r^r^No-^ COCN'^lOlOtOLO'T^lONO (N (N (N to fO CO CO ro cocorocococococococo ■^ '^ ^ ^ ^' ^* ^' ^ '"f' "^ cOCOCOCOCOfOCOCOcoro w 2; O s Aferage Value Per Acre. iO00 '-tCN'^NOCOCNNOCNNO'Th r^t^vONOCNt^viNONOCN ■^CO-*CN^C>OONONOO -^ -t* -^ -^ ■^"^oOr^yDNOtoii-i'^'^ ^r**^-^-^cocococo^ Q lo TtH r^ ■.-« ON CN 00 r- Otn-+oO'^i>-r^'^too r^. t^roCNNOfNir^OOoo O C>i'--cor^CN^CNO»'^ Or-ONOro-^ioOoO'*' t^CNCOONiOCO-^CN-^CO nOCNOOOnCNionOOnO>pO CO O yD O O ^ On C> i^ CM CN lO ONcor-^'^O'-'toO'^oo CNCoOCNNOcoco>'*"''-'t~- ONCOvOOCNNOr^rsjror^ NOcONOt^lOCNCN-'^'^co CNOl>-NOCOCNNOcONOr^ -.-(coOONy^'^t^CNiONO ■^ ^ o c> lO -^ -^ CO OOcNoq-^-tootoa>NO -rf-^OOr-^NOUOTtHrtCOCO NOcoco-^OONr^NOtor^ COrOCOCOrOCSCNCNCNCS I>- On to r^ On O O 00 VD CO NO ■^ r^O'^ONiOi-icoOCNto i>.i-ir^CNCNootoLocoO rOCOOOcONOC>NOOqiO t^CNCOt^-^OOOOOOtOOO CNOOCO'^NOCNO^NO-^ vOOONON00'=t*-^^NOi-i On CN r^ tn CO CN ■^ O NO o ooo vicor^mr^Otot^'--i'^ ioO^or--+CNC0toLr-, O OOior t^Ot-NOio-HCN NOt^tOCOCN-^CNCOfOCNl r-T-i^O^Or-ooc7N OnO'^lO-^cOCN^'-iOOO <-o--^ O Ch OnOnOCnCOOOOOOOOOOO ooi>.r^i>-r^r^i>.i>.NONO Q < 1-1 Q > O 1 « P. »— 1 Average Value Per Acre.! CMi-) -t CN CO ro ON 00 On 00 I>- t^ 4^ r^t^CNi-H-trjcococO'^ C>cO0000-+TfCNiOCO00 J>.OOCNOC7NOOr^iO-tPO OOi--0»HON-tt---^NO ooNococNONij^coor-*-+ COCOCOCO'-^lCNCN'-''-H-^ Q M H m S ID P NO -^ i>- NO O CO CN '-' OO On 00 '^ CNO'+COOOO— (COCOOO OOOi^'+CN'^OOCNt^-^ OONCOi-'-. ■r-(Tt. lO CSliJ^ CN NO O CO Ov CO T-H "^ CN r^TtHu-i^tMcor-coc^O OOCOOO'OOCOCOONO cOt^ro-tCNt^O NOOOlO ■■-icoOi'-HCNr^'^OONNO '^LOco-h'voT-i^-iNOror^ ■^TfON'.-iOOOOt^t^OO O 00 O NO On r^ 00 00 COLT. OC000I>.rNiM{N-H OCn0i-'00n0-+O»^no ^ C-l "-- LT. 'Tt* -t -+ '^ CO CO corNiOi>.C^CNr-*NOcoco NONONOiO-t'^cOCSCN'^ cocococococococococo S o ^ o i>- O iJ^ CN ^ On 00 NO lO Jr^ -^ O OT-rjCOCNOOCiO-^CNCONO coo cocoOr^Or^NONO O-^OOi-^NOfOO-t'-O r^cjN-^Tfr^^io^oocN NO"!:t^NONO-^OOONCOOTH COCNi>-NOtoON'^''-iO-f O CM -+ -* o -H -h -H CN CO r^ 00 ONO'^ji^OrNOcO'-i-f ■tJi t^ r^ u^, ,-1 O CO fo CO r^ CNiO'+CJ-^-tNOoOON'^ r^oooO'O'j-jcoto'Looo O'^OO-t'Ocoii^OO-rH cONCOO'^CNCOcotot-- O ■•-' CN CO CN CN CN CN ■^^■^■^■^U^lJ-;LOiy-lU-)NO (MCNCNCNCNiCNrjMCNCM NONONOi>-i>.i>-r^i:~^r^r^ CNCNCNCMO^CNCNCNCNCS ^ C3 t^ 00 On O NO NO NO r^ CO 00 00 00 T-*CNCO-t^tONOt^ODONO oocooocooooocoooooco ■^CNco':^'/--NO]>.ooa>0 COOOOOOOCOOOOOOOOOO COOOXCOOOOOOOOOOOCO GENERAL TABLES 207 w Q < o o « r — . . g en s O o l-H J tQ o (^ to W o O . g >j IJij fa m o w « p^ g O w w g S a: "3 ^ td O S s W IS fOC>iOON S Pi S o ■^ o rOCNOONOO'Oa\COl>. \OOOrOO^ONl>.OOrO "OiocNC>r>.\00'Oro "rf ^ ^T* ^ "^ "^ "^ '^ ^ '■t* a <; H > O « g S t3 Average Value Per Acre. i-HOOOOOoOt^^OO COI>.vO'^0'^00\CO CNCNr-iOLO-^COi-HCN -t-^rO-^^^roro^^ '^■*^-<*'::^-^':^iOvOO Q IB S C0CNOOO^^C7\'-it^»O 1-H'^C-lOOOO'^OOOO rOO^OCOONOO'-i'O OCOi-iiO'^'.-iioOro r-TCMCS. \0'+roiOroCNCNt-^0 sO'O'O^'OiOlOLOiOiO lOlO^'^'^-^PD-t^T^ P •A < Q W (> O Average Value Per Acre cO-^CNOOOOOCNLTirO ■^ '-H '-t -^ ■^ '-< CM O^C^— '(NJrOf^roOLovO Cs}CNJ>-iOvOiOOLoC0C^ OOi>--^roC'CNooav '-Hi-i'OOr^'-ir^OCN O'-iT-iroroiOO'-.OC 4© 0.roi>-00'-(T--^ ^ U-, ro LO iJ~> LT-, t-* CN ro CNCNCNCNCNCNCNCNCNCN ooooooooo QJ i-iCNt^-^'-n'Ot-^COOO OC^C^C^o^C^C^C^C^O COOOOOOOCOOOOOOOOOON ^CNfO-t'J-)'OJ>-000 oooocoooo ^ nd 'O S c *=i QJ OJ T3 tj tJi On vo CO , o o O-T 00 CO to CO to a a o o MB 6 o M-l o <-M W o O 0) > (D > > t:J Tl o QJ M OJ <1> PI i'^ w W Td "^ Ol nj o_ (^^ ^^ to os" (N CO ro On ■^ TfH ■!>■ f^ S a O Ov On -O t^ O tH (N (N ■^ O fO OOCOr-tOCNOOI>-OOOOON cocjNOOooiooomtoONio OnOC^noiO'^J^OnioOOn ^r>.io(NNOONOCNl'*ON irjr^inNOCNjiovo^NOON t^or^iocNiO'^u^^iH O (4 CSI -<:t-00''-I'^conO I^ fO O vH O O ^ OJ tH ■rH 1-H ■^ ©9= ONO"^moooooot^r^co COCNiO-<*CN'^OCM>-l>- -HWCMCNICNCNCNW^^ Noiocoiot^coOcooor^ r^oooNOOO'-i'^'-Hco Wi-l-.-(rHi-l(MCNCNCMCM Table IV. MENTS OF REAL ESTATE, 1867-1909— TOWN AND CITY D FROM THE REPORTS OF THE AUDITOR OF PuBLIC ACCOUNTS.] B H O ro "O lO -O CN 00 ■^ CN \0 O -^ NOiooNCNC>coior^'^NO NONOO'Oiochr^iooocN OOOOCMON-^OOOi-iiO ON'^fOOOCNCOlO'^COt^ nOCM'^iOOnO'^CM'^PO T:* s g t3 Average Value Per Lot. m ^ On O nO-^'^iO-^OnIOOnC^O NomNOONt^r^io-^ONt^ OO^o-^d^OiOiOCM-^NO t^'rJ-'^0'-''^^ NOOONWNor^'^coiONO O Ov CO »o VO OS w ■<* »0 i>- IM O I^iOON-^coOOt^CM'^^ t^r^NOOf^O'^^i^NOOco ^coooior^J:^j>.oO'.-('^ ONCX)t-^^CMNOOOiOiOCN t^NOoocO''-ii-^coi>-Oio ■<:^CMOONCMfOiOOOOO-^ On t~^ Lo CO ■^ .ONl>-l>-iOTHfOCMCM ■:t*00'^iOOCMCOCO'^co coOCMcoot^r^-^OON CMNO-^t^^OMONOO-^ nOCNCNnOt-hcocN'=^CM'-h t^NOCNNOOOON-^CMOOO O r- NO vO CM yD On CO -.^ii-)O^CMiOiOCOCN r^NOOOoooociOONT-trooo to H O 6 Q z < z Average Value Per Lot. 00 ir^ 00 CO lO lO CN 'st^ r^r^ONOco-^CTNOQiooo '^OnOcO'^OO-^i-HOOOO •^ONVO'^iOvOOtoCNVO 0n00OnOI>-NOPO^tJH00 CN On CN On \0 00 00 vO lO fO fO CO '•-HNoO'^iofor^CNcoco OOCNllOQOOOOlOOOO cOCONOiOU-ju-)-!:J<-^'^co ii-lu-)NOcocooOiol>-C^OO OOOOOOnOOOOOnOOOOON cococococofOPOCOcoco M 3 'J < o s CD P to -^ NO r^ f^ ■■-t OMO O CM ■^ NO O f^ nO'^'^cou^CMCNIOOni-h loONr^CNOLot^ONioiT) coONNO-^ONNO-^oooor^ CNI--HNOCOCOTj4^Tj<0Qt^ COOOOCMiO-^iOCN'^tn ■waNt^-^iooofocMONio CN CM 00 O Tt^ NOW Tt< •^ J>. NO 00 i>-c0CNOON0C000CNN0 CMcocoiO'^ioOnnOnOCN COOOOOCOOCMr-T-H-<;J<00 ■:J^■^lO0000CX3'<:t^lONO■.-H T:iHCMt^iOCMIOI>.CNCNO inrOONNOiO'^^VOiOlOlO On 00 CN On t^cocoOOOOO'-Hf^co OOnO0nQ000I--n0'*'^ yD^fOOO'^00'^J>.'.-i-^ T^u-iNONot>.r^oooooNO Q W > O s m o .^ o lO NO 00 -^ O ^ NO -H CM ■^ NO lO OOOOiOCNOO-^'s:^^-^ NOr^ONONONO-^CM-'^NO NOONiooNCNr-co-^wNO t^OOCM-^NO-^OmcOPO OONCMONt^-NOO-ir^CNCM t^OO'*ONT-HOOfOCOI>- CO O t^ J>- r^ CM "^ O ■rt CM CM CM CMNOcOCMCMt-^mNOu-)'^ oooOf-HTjir^ioNoiONOr^ CMCNCOCOfOCOCOCOcOcO OlO-^OONOONNO^OCNJ I>-0-^CN'^li-)NOOOO'^ < H ... I>- 00 C?N o NO NO NO r~>. OO 00 CO 00 ■^CMCO-^tONOt^oOOO t^rN.j>.t-,.t>.,tN.£^r^c^oo 00000000000000000000 T-iCMco-^ioNor^oooNO OOOOOOOOOOcOOOOOOOOn oooooocooooooooooooo GENERAL TABLES 209 M O >^ o Q o g J, *• S o On d CO ^ ^ < H w H fa H < 2 W m Pi Pi Cl, « O H W S ^ 9 z g ►J <: o H O (" Q < o H < E- O o Q > O O >• P < 2; & o H o > O ^> m o Z o u w S PS j'^ u <; oi <1 f^ IK rn W H « O Sh-1 P Z O (H o « n P J w <: m > ■> M < f^ n M S in P CO < PJ m Id H a o ;z: o tt! « 'O\0"^^-HO^^O*-HTH00lO OO^C^O^COOOOO^^l^C^ OsO"^fOOOOoOfOO oooocoo0'^00'<-ioor^ CXJvO'-'roONON-^CS-^OO lo O O O ■>— ' cO'r^ -^ O l>- Loc^c^c^-^'oooc^^l>■'r> voi>-oooocooocooooooo OoO'-lC50u^rooOoOTt^ "^CNOOOOCh^O^O CNCNCS|.»-H»-Hr^\O00D0CNCN 00r^,-i'^,-(0NL0-^O rrJiOT-H'-H'^coOO^ CO'.-iOOCNiJ^'-'OOOOiO 0■^O^OOOCN-+■^ oooor^ooooovcooooo ^-Hi-ILOCOO'-IOOlO'^'^ O'-ICOfOtNOOlOCMJ^LT) <^00OJ>-r^'-'^Oi>-CN''-i O^Q^O^O^Q^C^O^O^O^O OOOOOOOOOOOOOOCOOOO .J3 *o "a •^oc^r^'-'cooo'oo CSOOLDOOOCN'OO (NOOO'^LocOOroCN O'-'CNOOCN^OO'O'O OOOOCN-^OOMDO i>.r^cooooooooNCNOs OOOOOOOOO rf] r/i V) 4-* n o O o O O 0) (]> a; r:i ;3 Ti fTt 01 rt > > > T) Tl Tl (1) OJ aj rn m CI) 0) r^l w r/l m at cd a rvj rN n\ r^ lO -^ '^ rvi r^ rn ro OS vO ^ fn «) vo c ■^ -rt< ■»-i rs (N ^ ^ ^ ^^^ ol ti! rr a tu C! tl) a> a> a a W > > !> M-l o f) () () (h l-l Uh u. a> H S B n MH PQ o O o 11 (I) 0) ^ n ^ ^ m rt r-5^ > > > Tl Tl Tl o (U 0} rn bo tn QJ rn Tl a aJ Oj ft) T) 1-^ 0) m i-H i-^ o O 00 O u rsi Pi \n If) L/> o r^ t-O d in CO o rr^ C7x ■^ p^ ^ «^ ^ o .o u "a (14) 210 GENERAL TABLES M < >< w P^ O Q W M W P^ W Ah O P^ Ph -] <: Is o w p:^ W Oh 00 lo 1- r^ J>- rh O lO PO a^ PO iM r- -^ On O no t^ f ^ in r^ 1-H NO lo -^ r- O ■^ ^ O yD r-- -^ CN t>- CMO PO 00 00 On 00 "^ 1- 4 CN NO Om 00 O PO PO c ■^ NO NO ^ NO O c- 00 ■^ COf^ ^ ■^ir^ O -^ DONOf^ON-.-HCNicsiPO'OOCNa'^ c^'^ cn c ) On oo CS C^ XTi^OOO^ ^-ipOLOOnI^looOOOCS-^C^'^ ■rHCN "^ p*- O CN PO I>- ■»-H CN in ro ■<:* t^ ■<* NO ii-1 oq o -+ c^ On On vC -^ to ■<* ro 00 00 '* lO On NO rq T** .^ '■^t* C r- mm NO \0 00 ON NO 0 -^ lO On ■=:*< PO ■<* CO t^ O Tt ■^ pn O \o O On t^ t^ L'" T-(Vor^'^'^r^NOCS]T-imp*^ON OpO ■^ CN ■<:** CS PO o 13 On r- O i^ c-^^ tj^ -^ in 00 '=:t< -^ ■^ lo i-i o 00 PD loio a r<" PO NO NO PO < On CM ^o m lo oc i>-'^ON'^ONONaN'^cO'^'<*'io est-- 1- r<- fT) O On 00 tD 00 ■^ (T) On -^ Cv ■^ NO 00 CS ■^ 00 !>. PO 1-1 CSI NO CN P^ CN m CNj poi^' a O-t Cn inCSPO-^iONOCSi-I PO i> 1-1 1-1 i-H ■^ r^ po OC •^ o 4^ ^ >^ ■<:^ T^ t^ ■<* r^ (N !>. oo 00 '^ -^ On O t-. CS On CN) CS "^ CN ^ On O O CO O t^ \n ri* \J~> ir oor-NocN'-HcsONPO'^poONON oo-^ i- li- O PO 00 CS ^ t^ ^ (M « ■^lOVO'OCSOOOCSOf-ONfS OOO IJ" tr i;h ON On PT, pq CO OS 00 fO 00 00 t>. O r^ CS l>- On ■* CN) '^ NO O 1-H On 00 --^ O ^C O i:^ PO O PO lO r- vo CNl ->:t l>..^\O^OmCSCNlOPOO o^o cv f l>- rq 1-1 tJ< C4 On PO O ^ O t>.Lr>T^iy-jP^tj-)..-iCNCS PO CN Cn i~> 00 CS m r-. < o'-T-T Cv NO C^ CS CS O lO PO i-H CNl o On -^ H CN) ■^ p^ w a ^ €£ >■ H z lO l>. O On nC i^ocsi-iOp^'-'CNpritot>.i>. oo "^ p^ in t- in i-« ■^ t-^ r^ NO Cn OOi-hOCSPOnOIOOPDCMOCTn o^ o O m O O CS ■^ CO On t^ f^ ioNONOLomr-i-HONPOCNON>-i ooi-f p^ a CO 1-1 Cn oo 00 NO On t^ tJ* rr 1-1 CS ■^ Tt< PO ON On CS "O O CM>. C> ■^ CN Cn r^ PO m 00 00 (N CN -.-* c^ a O r^ po 00 O po ON»n c^ *0 NO -^ ■* no i- (X ■^ NO 1-« O 00 CO fN) U-; LO f' ONCSLOi-iu-jr-i-HCNCN CN CTn p^ -^ On CS NO O < 8 ^ !>■ (N C^ J>. f^ CS CS lO CN] -T^ -^ • 1— O -H (N ■^ ■^ rj o 1—) o- r^ ; oc ■^ 00 NO CO r^ O On NO ON CS i>.poiooooo :oot^pOOooLo co : (v~ ir- -H ^ NO ■^ O 00 NOU-3 J> 00 -^ NO pru>- ; On O P^ lO On NO tm : c c?- m o CS CO ro LO NO PO lO O oncspo-^oo ;NONor^oocNO i>- : oc i> 00 00 00 NO fe fe r^ lO t^ CN PO t^ Nocsooor-. :f-.ci>Oioi-i>. j>. : i- t> CS in ON PO o ° oo 00 l>- 00 -^ CS 00 O t^ CN lo : -^ t^ Tji ■^ O NO : -^ 1- O O t^ PO p^g 00 lO uo (N -^ po 00 CS in On : CS -^ 1-1 : NO On 1-1 PO t:^ PO ^ O po : -^ : r- o s 1-1 4@^ ^ : H a 1— t p : r^ : : : P - ■=* c^ ; j>. o : o : : ir .■ r-. ; B « p^ O PD c^ r> oo : rj -^ : in NO 1 r- : : ,-c 00 lo Tt^ oC r^ : ■^ On - : ; CV" : NO : : <: « -::--: On :: : o 00 '^ Tj< 00 t^ Cs t^ ; ^ -^ : in : : r^ : 00 : ■ NO On O *~,r;l w V„ M fl IS o ■ -jJ ri? 1 ■a S Ph > rS P ¥ 2 g -, o u ■ d l/J waa^;2 • rt c3om1a-g^ o rt o o o a P O ^ ■ - . - ^ ■ ■ b/) G rt OJ ■S-c e « d 6 ttJ 0) d bc'U o o o a,.-, o^ PhOc pqPn as li GENERAL TABI^ES 211 to »-. Ov -^ On to r^ Cvi -+ to NO rs) o 00 O CO (N cs ■* ^ w ro 00 00 O to t^o-i*"^ r^ '-' r^CNCNCM to <>- r'i CN O r^ O CN fO rOsOOro O t^ CSCMOOO : r-.QO_ 00 Q, -^ 0^ \0 ro to »-H CNt^-toO O O soO^J^r^ '^'f> r^ o C^ On O lO (N CN 00 C^i-oOO On (^-■TH-trO'-' ^to O ■^ fo r^ CO ^ c^ i^cM-+oo Tf CJN r-i ■ OO CN CN SO O to ^ to NO '-H "^ r-To ro CN to ^ ro TfH ^ ^ to ro Tt< m «^ m O CO fS Ol On NO ooo-^'t O Tt< r^ONTt*-^ r^ .^ t^ ^O »- 1 t-^ o ^ ■^ ■^•r— IU-, ro On r^ OnnOOnCJn O to 00 oo -t CO ^ ro c^ cocM-tr-- \o i-t r^toCNf^ 00 00 a\ On !>. r^ 'it* O (TJ 00 ^OJ^On t-^ 1-- o--'Cnw- On ro y3 o (N ^ On ^ ^ m t^ Ti* -^ \o o <^i CO lo rj to ro ro 00 ■r-i ro to CO O r^ -tr-*u-'-^ NO ^ to ^ -.-i \o ■--{ ■^ CS ro ro i>- O '^ T-H O CO to ro ^ O ■^ OJ ■^ o -^ 00 m m= ^ \0 ■^ 00 .ootor> to -:^ r^ ON ^ ^ ro 00 O ■thOOoO no rn OOOON-^ CM ■^ O rO CN fO \0 tH O COCNNO^tH ^ jTt* ONfOOC ^ Ov o_ 00 o 00 Tf 00 ^ On On ■^ tOi-iOONO ro CN '-isO'TJCS csi to lo ^ Ov ^ CO i>. rn On to O CM —• O NO CM CM ro ^-H 1-H UO ■^ 00 NO loororo CN CN lO 00 i-^ CN to (N CS -^ r^ CM ro ro ^ CM Tf ^ to (O ^ %^ i-H r\ %# ■^ rD '.^ ro yD CM O ■^ -^ (O '^ ■•-H ^ ^ a ^ 00 »0 to r^ CN ro CM NO 0 tocO'tr^- ro 00 0.0 CSI On o 00 t>- NO ■^ 00 O^-tNO CN -^ i>- CO 0\ c> (-0 tr CS ■^ 00 T-( l>- CM ■.-( o — C ^ ■* ^ > ^ «© O 00 ^ 00 Cv ■^ to NO -^ O -^ O cvir- ui ■^ CS NO o -H (^ C to ■.- CM ■^OOCN---( 00 '-( OOO'^CV fO ON ^ PO -^ ^ oo OC On f--00ioO 00 CN CMOO-^ rq CVJ fO CO -H NO O GO NC t-. NO -^ r- to CM to 00 "^ CM NC o"-!" CO J>. On 00 ^ -^ CV C- CNtOi-i-^ to CM r^r^Or*" o o oo ■^ O rO tr- j>. Nor^ooto CM r^ -^ '-' ^ 00 l^J r^ f^ rq w NO >o CN to ■^ NO •* CM C -H ro ^ J>- CN o Cs «^ ro ^ m ^ : oc lo C ^ fO c> to to r> 0^ ; \c ^ - ■^ '^ CV| ooio c CO 1 1~> Tj< OC \o oo to t^ 0^\r O 00 : ir Tt< r> c^ -^ ro ■^ c> o> o NO cc O 00 ■* to ■* f*- ^ ; i> ON C O r- ^ CM to O o u- CM <0 NO -^ CM oT ly- t^ ^ . m " ' (U . 1 u W . T-1 . * . >, ^ ; > 1 1 S es not of thi al Estate am lereon nd National s 3 : s ft 1 O > •3 § u Scpm ■ in ; a i 1 ^1^ ^1^ • o p^ >> ^■-^^ QJ (1) C^ 01 :p^ _a) t ■ Pk ID _> "o O Is O J (5^ ■GP- o^ !3 Eh H o-g Credits of Ban Moneys other t Credits other t Shares of Com State Investments ir Imorovemer +-> W O a- cspq I'd 3 'So J < 1 w C ■^ 3 •d 0) P ■3 ■d •a 2 £ "d . i« r/j s t*. ri*} (U S ^ PQ S 212 GENERAL TABLES O W w" Pi W ffl < o o Pi o Q S ^ s t-< li, « 0. o S fe 8 o ^ iz; o I— ( < > a M w en o O a ►J o Q M o O P >J ■< > Q C/3 la Bi O O M o S! P3 « a W . mw < « Eh b! W a i- o w o Bi m m w z < m b O Bi < me: O o o o K li. W O Mm M& O 2; Q ID O o O o £2 (NOOnioO'-hOO 6^ CNO00CNTHa*(N0\(NO OOCNOV'-HOOOLOO ■t-HT-Ht^OOON'^'-fOOfO CNIOO^OCOOOCO^O^-HXO TfiOCO'-'ONC^O'^ t^f^CNOOO^OCOOO u-),-(,-iOO"^rorOCO i-(Q\r^*OC?.OOOt^*^ (v^rOO'-fr^OO-CN-'-iro T^ ro -^ *-c ^ .^ CN f^'— ic/:;O'-0O''-i'-<*^0\ 00 i>-. cn]CN(Mt-h^^,-h ■+ O !>• M ■^ CN 1^ r-i (NO(r;'-'0'-HOO '^, r-'-vic>00-tiO'^aJO t- t^OOCNOjroOO -fT-iCN'^CNC' O ■^ -f ^1 i-o \o "^ O C r^ u". I fO CN (M CS ■.-( 1-1 ^ - Oio-t-fr^'^irg^'.— ■^ CO Ov r^ C^ 00 'o r^ -t O C\ "J*) ^ GO Li', c-o rO OCO^O"-. coooo o-oc- --^c-coooo "O r^ O C' O r^ '-' ""' CN 00 ^ -Tf ■<-. CN lO .^ ro ro lO ^ rO CO O "". "^ T-i ■^ooCNCSoO-tr^r- ■•-tiri(MCO^I>-vOOioO r-r^-^oo-^OOOiooo CNCN>J*lCNC0'O'-H>-( yDOOOroCNCNO^ Q fa r/j r/5 fa r/i t/J < H 2; o « > Q B M . Z m" < rt s w O Ik O o o "o ^ ^ _ t:J^ ^ ONOOr^ocx)cOi-^r^vo OC^00O^t>•O^t^C^^o CN'-I'»-H^-Ht-Ii-I^H ^-t t>-Tj-oooocooO'.-( Q W a! O > Q O CQ « . < f- fflW Z m" < BS W H S- 0! a w (- O W o a m a M z m O 2 O p O O t^O'^'-'^COOOCO'-< ■^ -^ .^ li-) -^ 00 CO vOCOCN'-iiOvOOi'liO COOCNt^t^-^CiOrOOO ""^■^rOfOCNn^o^-iO (M>j-50^^'^CNl>-iOi-(0 CN0""'0i^000t^'0 ■*Or~-OCNOOooro^O '-iCNroOCN-^OO'-i'^rO ■^iOOOOOOOnO^ CN"O0000'^VDr^O'«-H OOTt<'«:H-^<^O0-^CSO0 iO-t^OfO'.-- lo^-iONT-iOOurivOCNCN raOCOiOONrOCQCNCN ■^coONOio-^ooo\r^ 0^0\C^0^0^C^0^0^0^O OOCOOOOOOOGOOOCOCOO e o ooooooooo 0^ O* On On On On On On On 214 GENERAL TABLES m W ^ < X w W 2 < m Q (A •z. ■7 < O O (n t) o U < o t> H M m Q CM ^; PC4 m < 3 o < Eh M [E« ^ C< o o UJ m H w « « cu M - 0. CQ S o ^ U O )— < H < t) J <; > Q w w w W CO OT .'<;■ CNOroOOOOO OOO^iooOf^OOO POior^OOtrjCNt^ OO'^'^CJ-Lot^O^"") CTJ'^'rJ^fmD^OOO '^l>.vo rot^QOOvoJfnOf^ r^LDsoooO^OsO^oo S-. (4 O 2 o 2 "5 T-tior^r^'-HCN'^avioro ocq '-< 00'rHU-)^(>J-^r--lO ■Tj^CNiorOOf^OO'^COOO (NTj^r^tN-itoOfOO oOor-mt^'j^LO'^'-H OOOO^'^r^Oy^ i-H-^O^O.roi>-(NLOCN CMroiOTjHioPor^r^iO'O fC(NOOI>-l-^Vi->vO ioio\0'0^0<5r^t^r^ M m loOOOOOO"^ o o o o o o o oo OOr-^OOOf^ O CN O O O O O LO O O 2; ,-1 lO *+ ro O •+ !>. O r^ '-' c> "O ■^ t> t^ CO o ro o g2 en w LO *-( VO <^J o t^ jH o ^ ■< fe 3" "2; ■^iOQ0'-iu-)Tt^'Tj^-H ■rHtN^OW'^lOO';*^'-''^ si OOOO'^'OrOMDror^ 0\mCNCNT-H-<^t--.iOCN'-i oo^O'^C^^r)mO'^ THOfOCN'O'^r^cOio^O CN-Hcoor-'jHoO'^f' ':t^r-.COroO-^-*'^-^CO w 2; I'n-^OcOOs'^Oco OOiOWOO-^OOr^COro PS < CNCN{r)-iooor-^OCN OO'^'^OO'^'^CN'^t^ !>. CO "^ r^ -t »-( ,-1 00iOrDl>.00C0O'^a\ H O M o Q Z < o 00-tOioroLn\0 CN-t^OO-^r^iOOOcoOOO ■^CNC^ t-Oo^T^ON CNI--OOCN'OC>^OCOiO S 2 O MD O '-'j O .-t Ooov>-»^Or^Or-.cor^ < ij lO-OOW'-^OOt^C- ■^OOOOCOCOCSOO'*'^. CN ■^ '^ ■r-' ^ w w j pi ^0■^LD^Cl^^00C^O ■■-iCNfO'^i^'Or^coOO t^r^t~*t^r^t~-»r^oo COCOCOOOCOCOOOOCCOON OOOOOOOOCXDOOCOOO OOOOCOOOOOOCrOOOCOOO GENERAL TAHLES 215 m W Di < X M M "z < CQ ^ Q & z ^ < o o M o w< O u w S r\^ ■1 M O s Q S c> ^ y 1 1— ( 9s< 1— * H > Ph W O (- IS •< s° H o ^ M Bi M O w ^ < S J ? < £ 8s J J >% m o _ o •z. ^ o t-H H < P J < > Q W w M w w M . m VT) t^ §2 fO<:^fO'r)^o^O^^O^^OOO CO w MO Oo o loOOOioiriOOOOfTl »J^OO00CNCNiOOiOiO •^lOOtNt^CNOOOOO VOOOX^O'^COOJO'^ T-H OTi-i COOOIOOOOOCOOCN ■^ rO fO (M (M CN ^O Ch vOCSONCNOror<:tOOO Por^CM-^0\voior^-^ w o o s- z } -^ r- vO CN CNCNO.C0C0f0»O\0O\ ■.-H a- t^ c> -^ CN -^-On oo ■^CN'^HOOOONrOiOiD LO vO to lO CN CNJ ^-* ^ ^ ^ ^ CS] OOiOON^roCNrOOOfOO ii-)-^f*^CNOOcOiOCNvO- lO O ro -"^ ro (MC^OrOrOCOrri'^CN^O i . . . ::::::■ 0* o' OOCODOCOOOOOOOOOOOO OOOOOOOOO 216 GENERAL TABLES Table VIII. EQUALIZATION OF LOCAL ASSESSMENTS— STATE OF ILLINOIS— BY STATE BOARD OF EQUALIZATION, 1867-1910. [Compiled prom Proceedings op the State Board op Equalization.] Total Valuation Net Amounts Net Amounts Equalized Year BY Local Assessors. Added. Deducted. Valuation. 1867 $ 501,340 3 5n $504,683,553 1868 471 488 480 531 195 031 518 932 703 471 489 480 550,966 1869 098,133 1870 664,058 1871 499 636 900 $ 30,045,042 $ 24,005,631 505 676,311 1872 508 875 848 31 614 870 29 604 035 510 886,683 18730 1,194 687 281 200 900 705 198 799 881 1,196 788,105 1874 1,105 658 176 179 678 489 176 902 864 1,107 893,344 1875 1,025 428 289 116 510 133 116 013 544 1,025 924,878 1876 958 405 803 104 834 528 104 417 062 958 823,269 1877 892 380 972 82 862 324 82 790 951 892 452,345 1878 818 987 409 55 768 390 55 768 109 818 987,690 1879 744 742 846 49 303 583 49 290 919 744 755,510 1880 739 462 515 46 198 329 45 825 725 739 835,119 1881 746 034 852 48 610 342 48 401 048 746 244,146 1882 750 635 758 42 746 795 42 543 628 750 838,925 1883 756 422 291 41 582 923 41 481 025 756 524,189 1884 746 547 501 40 985 448 40 718 234 746 814,715 1885' 733 533 951 38 914 314 38 744 382 733 703,883 1886 726 178 132 52 915 868 52 259 180 726 834,820 1887 726 078 638 47 536 656 46 669 790 726 945,504 1888 709 304 506 47 489 586 45 592 168 711 201,924 1889 711 SIS 026 52 607 461 48 134 943 715 987,544 1890 727 549 707 47 136 432 45 439 662 729 246,477 1891 738 504 791 73 218 940 70 514 548 741 209,183 1892 745 754 172 54 936 378 53 037 836 747 652,714 1893 760 837 855 50 464 088 49 006 144 762 295,799 1894 737 989 016 55 070 104 52 679 093 740 380,027 189S 743 840 153 48 257 939 43 on 519 749 086,573 1896 731 215 488 S3 568 912 51 131 488 733 652,912 1897 713 736 999 48 422 435 45 097 200 717 062,234 1898 693 443 706 55 668 294 49 625 360 699 486,640 1899 895 869 090 8 775 694 29 805 561 874 839,223 1900 779 513 078 26 584 298 79 051 273 727 046,103 1901 891 936 529 8 595 652 9 083 635 891 448 , 546 1902 921 817 117 8 246 087 10 746 500 919 316,704 1903 994 300 650 3 678 763 20 764 441 977 214,968 1904 993 487 940 3 889 753 20 792 754 976 584,939 1905 1,008 138 674 1 730 966 20 765 300 989 104,340 1906 1,033 441 227 1 328 911 19 116 476 1,015 653,662 1907 1,138 724 046 1 248 930 1 350 578 1,138 622,398 1908 1,139 292 406 675 997 688 814 1,139 299,589 1909 1,944 1,990 595 107 135 626 1,944 1,990 595,135 1910 107 626 a Not including City of Quincy. GENERAL TABLES 217 Table IX. EQUALIZATION OF LOCAL ASSESSMENTS— COOK COUNTY— BY STATE BOARD OF EQUALIZATION, 1867-1^09. [Compiled from Proceedings op the State Board of Equalization.] Year Total Valuation BY Local Assessors. AvERAGF Per Cent of Ad dition or Deduction. Net Amount Added. Net Amount Deducted. Equalized Valuation. 1867 1868 1869 1870 $ 69 73 94 90 818 093 445 148 312 856 243 528 Plus 24 " 17 $ 16,756,394 12,207,564 $ 37,862 4,428,137 $ 86 85 94 85 574 519 407 720 706 810 361 391 1871 18711 1872 1873 1874 1875 1876 1877 1878 1879 1880 100 93 94 144 157 145 136 128 132 119 117 133 936 642 155 444 191 801 356 924 355 918 663 040 219 665 570 749 OSS 752 966 572 979 5,461,069 799,420 Plus 100 " 94 " 60 " 54 " 41 " 21 " 19 " 21 144,231,874 148,600,621 77,144,731 74,089,147 52,964,817 27,363,750 22,898,505 24,989,993 100 88 93 288 306 222 210 181 160 142 142 233 474 842 377 045 336 890 321 288 254 908 663 971 799 539 191 480 202 569 716 077 972 1881 1882 1883 1884 1885 1886 1887 1888 1889 1890 120 130 138 141 145 152 159 162 166 188 783 547 639 296 309 044 598 804 697 172 431 041 806 890 147 779 338 782 893 558 25 18 18 18 17 26 23 21 23 19 29,209,995 23,247,838 24,297,702 25,289,237 24,295,864 39,802,325 37,314,869 33,413,098 38,881,960 35,340,512 149 153 162 166 169 191 196 196 205 223 993 794 937 586 .605 847 913 217 579 513 426 879 508 127 Oil 104 207 880 853 070 1891 1892 1893 1894 1895 1896 1897 1898 1899 1900 196 203 211 207 212 207 197 180 378 260 146 798 573 928 479 530 665 041 828 564 343 728 137 853 886 692 108 162 291 522 " 35 " 23 " 19 " 23 " 17 " 22 " 22 " 29 Minus 4 Plus 10 69,098,412 47,636,294 39,992,987 47,421,029 37,095,777 45,213,929 43,227,899 52,214,763 26,056,453 14,680,556 265 251 251 255 249 252 240 232 364 286 244 435 566 349 575 744 893 255 147 620 755 022 124 882 663 621 007 925 735 975 1901 1902 1903 1904 1905 1906 1907 1908 1909 365 389 406 401 405 424 478 470 817 191 021 777 330 865 376 710 551 498 329 412 868 581 754 898 830 305 383 365 389 406 401 405 424 478 470 817 191 021 777 330 865 376 710 551 498 329 412 868 581 754 898 830 305 383 a Reassessment and equalization made in June, 1872, to replace records destroy- ed bv fire. 218 GENERAL TABLES Table X. RAILROAD ASSESSMENTS IN ILLINOIS, 1856-1910. [Compiled from Proceedings op the State Board op Equalization.] Year Local Equalized Local Assess- ments. By State Board of Equalization. Total Equalized Assess- ments. R. R. Track AND Rolling Stock. Capital Stock. Assess- ment. 1856 $ 6,639.220 1857 7 9 11 12 11 11 11 12 13 14 15 14 15 19 529 131 758 085 243 326 525 285 911 707 451 189 847 242 703 475 695 472 722 595 555 640 303 097 500 931 726 141 1858 1859 1860 1861 1862 1863 1864 1865 1866 1867 $16,854,640 14,914,397 16,280,960 19,242,141 1868 1869 1870 1871 22 24 8 6 5 5 4 4 3 2 556 384 103 292 498 062 468 198 337 771 126 428 595 640 659 106 202 423 507 109 25,516,042 . 25,568,784 9,592,154 6,863,707 5,673,477 5,403,399 4,496,063 4,051,349 3,352,891 2,763,444 1872 1873 1874 1875 1876 1877 $ 59,317,408 43,529,716 32,163,644 28,819,832 37,141,180 36,410,516 37,649,670 44,601,815 $64,611,071 31,314,175 22,649,222 10,106,258 $133,520,633 81,707,598 60,486,343 44,329,489 41,637,243 1878 40 461 865 1879 41,002,561 1880 47,365,259 1881 2 1 2 2 1 2 2 1 1 2 068 981 065 028 971 403 243 917 851 164 365 657 007 374 515 596 157 354 214 357 2,182,548 2,061,162 2,142,703 2,138,514 2,065,419 2,638,132 2,383,926 2,057,989 1,991,641 2,336,128 51,377,932 56,758,984 51,162,102 60,267,186 60,987,317 62,972,101 66,517,478 68,620,719 71,352,453 72,974,396 53,560,480 1882 58 820 146 1883 61,304,805 1884 62 405 700 1885 63,052,736 1886 65,610,233 1887 68,901,404 1888 70 678 708 1889 73,349,094 1890 75,310,524 1891 2 2 2 2 2 2 2 1 3 2 209 502 608 290 101 005 167 857 115 662 337 329 425 720 779 268 558 015 878 087 2,476,794 2,737,803 2,738,343 2,524,625 2,245,913 2,141,126 2,364,722 2,069,191 3,060,632 2,746,649 74,626,553 77,108,390 79,531,738 79,231,164 79,310,385 78,996,324 78,582,786 76,554,845 76,012,042 77,878,672 77 103 347 1892 79,846,193 1893 1894 82,270,091 81,755,789 1895 81 565 298 1896 81,137,450 1897 80,947,008 1898 78 624 036 1899 79,072,674 1900 80,627,321 1901 1902 1903 1904 1905 1906 1907 1908 1909 1910 2 3 3 4 4 4 4 4 7 807 881 642 185 101 407 753 884 855 988 081 850 674 214 882 772 376 666 2,817,928 3,886,159 3,633,914 4,178,771 4,094,029 4,373,641 4,753,233 4,880,374 7,855,666 83,181,778 85,619,042 88,321,224 88,947,961 91,748,866 95,131,416 100,203,968 103,425,144 175,683,593 177,217,518 3,103,562 2,651,062 2,348,683 1,906,680 1,885,381 3,215,978 2,539,940 2,092,306 2,975,281 2,111,684 89,103,268 92,156,263 94,303,821 95,033,412 97,728,276 102,721,035 107,497,141 110,397,824 186,514,540 GEXERAL TABLES 219 Table XI. GROSS RECEIPTS OF THE ILLINOIS CENTRAL RAILROAD AMOUNTS PAID INTO STATE TREASURY, MARCH 24, 1855 TO APRIL 30, 1910. AND Time. Gross Receipts. Per Am Cent. Sta T. Paid into TE Treas'y. March 24, 1855 to April 30, 1856 $ 1,225,611.88 5 $ 61,280.59 Year ending " " 1857 1,847,439.99 5 and 7 105,299.48 " 1858 2,095,782.56 146,704.78 " 1859 1,855,535.20 129,887.45 ■' 1860 2,208,276.35 154,579.34 • 1861 2,598,271.67 181,879.02 " 1862 2,382,697.08 166,788.79 " 1863 3,776,344.15 264,344.09 " 1864 4,911,640.35 343,814.83 " 1685 6,800,182.86 476,012.80 ■■ 1866 6,591,967.11 461,437.70 " 1867 6,124,910.62 428,743.75 ., jggg 6,163,443.62 431,441.05 ., jggg 6,339,117.31 443,738.22 .. ^g7Q 6,711,558.87 469,809.12 .. jg^j 6,594,143.58 461,590.05 .. jgy2 6,754,137.94 472,789.65 " 1873 6,100,577.62 427,040.43 " 1874 5,724,929.06 400,741.53 .. jgyj 5,673,893.95 397,172.58 " 1876 5,312,395.27 371,867.66 " 1877 4,562,710.66 319,389.74 " 1878 4,683,375.82 327,836.31 " 1879 4,554,822.69 318,837.59 " 1880 4,880,423.54 341,629.64 ■• 1881 5,411,074.49 378,775.22 " 1882 5,658,152.90 396,070.70 " 1883 5,577,692.73 390,438.49 " 1884 5,410,125.93 378,708.81 " 1885' 5,129,160.57 359,041.23 " 1886 5,230,952.87 366,166.70 " 1887 5,661,643.79 396,315.07 ■' 1888 6,016,365.88 421,145.60 " 1889 6,267,193.02 438,703.51 " 1890 6,833,963.08 478,377.42 " 1891 7,321,658.47 512,516.09 " 1892 8,006,242.46 560,436.97 " 1893 8,780,697.99 614,648.81 " 1894 10,390,838.40 727,358.69 " 1895 8,192,184.54 573,452.92 " 1896 9,107,202.85 635,865.300 " 1897 8,641,499.58 604,904.97 .. ig98 9,272,621.40 649,083.49 " 1899 9,494,644.20 664,625.09 .. 1900 10,670,739.43 746.951.75 " 1901 11,563,411.83 809,438.83 " 1902 12,661,928.96 886,335.02 " 1903 14,222,572.69 995,580.09 " 1904 15,506,164.82 085,431.53 " 1905 15,547,432.51 088,320.27 " 1906 16,329,963.77 143,097.46 " 1907 17,090,183.29 196,312.83 " 1908 16,795,267.57 175,668.73 ■' 1909 16,044,015.21 123,081.07 ■' 1910 17,104,000.28 197.280.02 a Net amount received alter deducting $1,638.89 mt erest on advai ice payments to the State of $450,000. 220 GENERAL TABLES Z o < M ° < y Pi CO o 2 X < ■^ O lO Tt< •<:t^ n- CN yD --^ C lO tH ■u~ ^ ^ o 1^ ir- ^ ly CO r> rH « r*- 1 g^g^ ■^ t^ O 0\ O O . r^ CN lo ■^ t^ -rt* OOt^^CNONOOOTH-^TjHOO-^OrO fO to (N fO CN in NO Onio ro NO On cO*<**(NCN)w-rHCSICS(NCNt-i(NCNtO f^S°^ «*^ ^"^"^ ■ 0<^ O . CM ^ b! 2 S O <;q to O CO r^ OO : CM -^ 4^ cs to 00 lO ^ » P »o CO O CN lO ^O CO CN ■ O O >o : ON On : r^ 00 vH O ■^ -^ ■^ CN CO CN f^ c> t- 2 m" M 02 5»o ■--H lO CN O ^ ^ : ^" CO CN CM ^ ^00 CO ^ 1 w" 9r D NO m ro 'O CO CJN LO CN NO Valuation Based on Stocks, Eari NGS, Dividen: Etc. 1-^ r^ CO CO r^ r^ r^ '^ 00 CN t^ ^ O ^ r^ o CO ■^ CO i>-, CO to NO U"J o o ><* I>- CO CO 00 -^ ON -t : LO CO ■< CO Tj^ ^ ^ 00 o CN H S H s . CO <0 «0 On CN O — t ^ CN O ■^ ^ NONOLor^m-^iOTt^'i^co'OOt^CN •< !>. CO ■<-i NO CO On ■^ 00 CO lO NO CO CNvd(OIO'^ioCNN0-+00'-'0n*-iO > ^ vO NO -^ <0 (M CO ■^ CN CO CO O CSCOioO'^'-<»riNO'J^;ONT--TH'^THCOCM o ^ ^ ^ ^ O -^ O -H CO -H CONO-^t-'-NOr^O- cOt^ON-^u^coCN ^ ■* -t CN -H NO NO CN CN OtoC0NO-^N0'^i>.OONOOO00 2».P<(1< ,—1 Tf CO -^ T-li— 1 1—1 1—1 1— It— li— li— li— 1 o° ^ °o si OJ 1 C 1 > -1-3 OJ (/■ 1 •0 j -*- c c C > 1 > a. I 4. t— a u 1 a > cJ c: •S.E t- c c c E n a < 'u c n c •as > •^ GENERAL TABLES 221 go; is <; M - < 5 O 1 Q >-H W H ><1 ;?; P < H H W H <; rv, S o§ ^& o ■< ^s ZzOz O < -c u o 3 to O m Ilii >, "i s >^ 2 O « S o J S"* hW b « Z fcf^PH o° w," *-(irioi'*O'^CN'<*O00ioO LO to cv^iCN^i-HiO-^COCNi-Hr^OOoO rO PO ■^ ro CN CN T-H fO i-H y-i Pi . d o o o ^^ t3 cfl oi ■^■?, C^^-l^-lQ0t^)T:t^0000O^C^^ c^rocscN'-Hi-Hf^eN'^CNio O^opO'^'^CN'Oiot-iIj-jOs ^ CN CN t~^ O »• On \0 r^ ■^ -^ CS t-* O O tH o ^ ■^ CO t^ CN CO ro ■^ CN O C^ O f^ o c> ■^ror^iocoioi>.oor^'-HCN co(NiooNr^CNOO'>-itocooo 'O'OioMmr^OcocNi-f'.-t g^ ?■■ o e.S fl-S g,o ^ sis >3 Sfs > o nt o 6 C Tl T-H c ^ 3 m >. ■rl ^ nl g^ u CO o t^ fl» g m o Tl « 3 1> n fi +J a ? •rl ,Q in a, X CO nl r^ f1 ^ ■+J o (U W 222 GENERAL TABLES O Q < O Pi oi Q o w a, a Woo d^g M < s^^ ^ MHO y. Tab ND DIN < a <::2; o wW « 5 !^< w |x)W ft, a^>' o X (- w n ^ o H ^ rt H s < (ij ft. W n eu u o .J cu w S C^ 2; c^ < w w' O ■< « kJ ft) OS « ft, M ft) 00r^O'^c^i>-co^-H-^'~^ro(N ©9^ X ft, f- 2 ui ^■^coO'^OCN-^O'^CN'OOooroO CO r^ -.-H 00 00 r-- oo CN lO ft) ft! r^cOf^oooovOOr-owOO-t^O'^i^ r- fs) CO 00 t^ O »o -H o s§« i-H ^ CO -^ -^ -^ -Or^t--ONCNO-^'*^rQ-+'~-ior^'^cOOOON'Owc>i>r,t^ lO CO t^C^C<^C^tO^^C^C^l'-H^O'^lOlO•^-OOCNO*OOOoO'OOf^'^rQ^OCNOCOiO'^'^'^ M m l«! < S S; ioroTHiOl>.vOiOO--CNCN H ■^ tH CN 00- ^ 00 00 00 >^ cs ■^ 00 -H ^ ii 2 w CNON^OOOOvHnO'-irO'^OfNI^''-i'^ ON '^ -^ -^ ^ CO 00 lO CO « c O'^'^'^c^triioioO^^'-ii^^yDOoocN O 00 CO CS "O O^ 00 r^ i-( '00\COiO'^iO'^-^fOCO\CiPOi:^OOCO ■O Lo 1-HO xo ro 00 00 -^ roiO'Or^r^OO^rr)c/5r^ooC^-^C\r^'^. c^ '^ -^ CN -^ oo CO !>. CO e^ 1< ? ^ O'^t^OCN-^iOiO'-'HO^'^OC- lO-^ to CO CN "^ O^ O ■^ -H CN ft. ^ o '- (N -^ PO ro so lO CN CO ■^ O ^'OroC0'O(O00O'^^OO'*O^OO'O\OOCN»-i ■O lo •a ft) tn (OcocOC^l-H(oO■^C^oOloroc>3^-.oO'*ro•^t^'^^of^!■l-^(N-'^i>^-CNO'^O00Lr- 00 -^ S 2 2; f^ " J 0'^OrOCNCX3*^0'^»^OCSi'^*^"OOOOC7''-'00'-i»-iCN'-H^'-i O lo a lou-)OnOO"^C0O'^C>O'^<^C' fOCOO'THOO^CNOOC^^^^^ •^ t^ r^ ^ (N^rO'^iO'OONiOl>-'.-|iOw^-.--cc-^O-^vO0sP0t>-O"*00'O^0O^OiO'^-H-^iO00P0O\ r^ CN i= S =: ^ ° ^OoorofnOr^'^r^r-~CNOC-JOC^t>-'-:f*\OiO-^r0CMO00OOior-OOO0000 CN -^ 2 2 T-=JoOOOiO'^vO-^'^-^'rj\OfSIw-ir^wr-.rOLr)rorovOiOr--OyD'* -* r^ < ij inCN'^'^'^^^r^^'^CSfOiO'^C" '-' i-t ■^■^(N'-HrO'O o o ft! 0. O J-H - CN O r0t^rr)^Tt,000NO(Nr^00OO^O00r^OOfOOO^C>OOOrOOv^O\r^0^fO(NO(NvOrorOu-)0-*VO -* o S ^O\Or^0vC30iO00(NCSt^00^'^u^*-,r^a''*^'*OCNTj,00O00 t>- CO '.'.'■ 6 . yj;"3 • O : sfi d d d o 6 ft, O S < •< S o O dim J2 oa ca fi. c > c c p; o ™ (11 ■4J MO Pi <; N M<; torn W o Pi p o o w . o >• < H t- a: u o e! Pi (I, ^ t- < o . (M 00 00 O O^ Ov I On Ov O- 0\ O^ 00 CTi M* O r- 4_j m +j 4j +j fc nJ Jj nJ ciJ rt iS 't3 's "^ "^ "^ . ^ 'O fO fO '^ I* ^ c c ■ c c ■ ■ d JJ g 3 S ■ ;i S ■ ■ ;3 > ic S S P.5 S P. P.5 Q ajnlrtOcdrtOOcdo V- _," ■ I^ rt f^ ^ ■ ■ ™ o^ (u o S o (u^ f^ OOCOOOOOOOOOOOOO OOCM^OOO'OO-CKOOOO -^(Nto^iTOr^ooO'O OOOOOOOOOOCOOOCOOOO OOCOOCOOQOOOCOOOOOOO o o y o o o o o o o P-.C/}!/!AhP-.OhP-iPh •— it— ) ^OOO-roOOOOOfO't EE JSl^-" ni^ rt rt rt ji "3 I ?J « K c c (NrCHfMCN-^OJ'- ^(Slro-rJilOVOt^OOOiO 0» On On On On On On On On O OO 00 00 OO 00 00 00 00 00 On OJ 0) c o o o o o 0[^j2 rt aCCCCnJniciC ■^ -M -4^ 4-j -4^ cu) bc-^ -H Cl^ Dh Cl, Ph Ph hJ hJ Ph Ah r*Nor-*OiO»'Or*0>N£) ooooooooo OnOnOnOnOnOiOnOiOi 228 GENERAL TABLES W Pi < W « w Pi o Ph Q W H o w hJ 1-1 X o 'J : H . o I ^ i w I >" / P^ ft t4 PS o lOfOt-^cOfNiOiO-OOvO CM-^O'-'CviOOOr^OOt^ fOfO-JT^r^-OrMOOooo CMCMCM{NCMCS^O■^ ooo OOOOOOOOOO OOOOOOOOOO OOOOOOOOOO oooooooo < 2 5 lOmiOi-ivOrOfOOOOCN 0\C7\000'-<'-<00'-' CM '-'(-- rOLoOf^-OOi^ ■rH ^ OS O O O t> OS C^ Ch CNOs-^-^OOrOOOiOlOOO oocooooocooooooot^r-^ iOP0OO>000OO t-* (-- CO CO OO t^ 00 00 OOO O O ^ ■^ ■rH -H ^ ^ ^ ^ ^^o—^^oooo OOOOOOOOOO OOOOOOOO < < X a -H ro <* CO vo ■=*< O ^O 00 CM 00'oa>OrO-*"*rM-<'0 OscMOooot^-^O'-'O ■r-.CMC^'-<'-'-'CN(>]CMrO Ovt^r^Ococoor^ CSCMCM'-tiOrO'^cO 3 v^OoO ^^^^OO^iO-.-'OvO QOOsO'-'Ot-^'O'orO O'+'^CNCM'^VO'OCMrO OO^SOO'O^-CM OOO OOOOOOOOOO OOOOOOOOOO OOOOOOOOOO oooooooo 0«f0 ^OOOtOOro-^-^OCO rM■*lO-^^^M— '■<*^OCM-- ^^^-,t-,lo^Orh^^*coc?< vO lo CO -t r- CN CM ■* OOO OOOOOOOOOO OOOOOOOOOO OOOOOOOOOO oooooooo o K <; O ^ LT) CM Ch O O -■ ^ CN CS C^,^^_Loc^C^^OO^O fOrt(\Ovn-+vot^00'-O OOOO-^O— "rt OOO OOOOOOOOOO OOCCO CO OOO OOOOOOOOOO oooooooo < P COfOOv LO -t L/-i -:*■ rt "-. r^ -v; fO "-, LoioO'-"0 0\ioO\i« CMCMINCNCSICMCM — O-^ 000'<:tcor^'0-coor- f^tnc-ICNCMCNCMCMCNCN -p-fi/^ -?■-*'+ -MO COCK 00 00 1-^ CO t^ t^ t-* -^ OOO OOOOOOOOOO OOOOOOOOOO OOOOOOOOOO OOOOOOOO Z O o ■.-"C0'0cor*<00t^\00\ vO-^frOCsOOOQO^O-*— ■ OOCM-^CM-HolCMOfO (M^O'-l'^Ot'.O OOO OOOOOOOOOO OOOOOOOOOO OOOOOOOOOO OOOOOOOO Q o oOOCsr^OvCsr^oOOOt^ ■^■^■^fOfOCO-^^OlTf -HC^-HOfO'T-'CMO CM CM Ca CM CM CM CM CM OOO OOOOOOOOOO OOOOOOOOOO OOOOOOOOOO OOOOOOOO Ot^fO fOCMOO-^OvO^Ovt^OMCM fococ^^c^^'-"H'-■c^^CM^M CMfOrO'orO'riOr^'OvO CM000»o -^oo^c^00'O^or^t^'O ,-H in r-- ^ vO ■* sD ■* CM ■" ON -1 CM O O O CM (NO! 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OOOOOOOOOOCOOOOOOOOO '-H^ (^ o Q W H o w o i ^ IS o >^ H 2; t> o o o < w >^ PQ < o Pli w 'Ot-oODOrOO'^OOtN ^OOt^Ot-^f-^r^oOOOoo r-jr-.:l<^0-:vooocooot^ oor^r^r^\00\OvO'0\0 tj<000<0'0i0tov00>0 ooo OOOOOOOOOO OOOOOOOOOO OOOOOOOOOO OOOOOOOO _) o P o p 0■rH^,^^^^OC^^OOC^ ^J^lOlJ^>J^"^lou->^o>Olrt OOONOOt-CS-^-^TttCM OMfOOO-ioOOoOO i^j—OCOOOnO OOO OOOOOOOOOO OOOOOOOOOO OOOOOOOOOO OOOOOOOO u-> t— lO r^fOO-^-^O^OCvOlO LOCNCOI-^ChCNVDvO-^'cN t^iovb^Oi-H'Ovoco ooo OOOOOOOOOO OOOOOOOOOO OOOOOOOOOO ooqooooo m < w Q ■^0»o CO 00 ON ooo ^^^o^-^■*0 0-H^J^^^O CKOmSnO'-'--;— lOOO ^^^ooooooo Irtv0i0-+ONCO(N^I~-0 GsO^O'OO^O'OOO'O oodooo — 'T'a--' r^ --H CM o a« C> OM^ c>ovoia»o\oooooo d o o o-o o o d i • Q J Pi W m i o rococo rororo iOrOiOrOCMCVlOa>C>^ OorN — "-■— "OOt^oo t-^OCOvOO-^OO OOO OOOOOOOOOO OOOOOOOOOO OOOOOOOOOO o.ooooooo Q C Pi o 0-*r^ -t--:froc0f-O<00io^O CO \0 O O CM -^ r~- c/: i^. 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OOOOOOOOOO OOOOOOOO 1 ^ 1 ^ loirtioiooOfOio'O'Or-- li->u->^J^lOLol/^>0'00'0 ^0>^-*fOO\-HfoOO> (M^CO^OOO-^vO OOO OOOOOOOOOO OOOOOOOOOO OOOOOOOOOO OOOOOOOO >• Pi « CM O-OOOOOOJt^'-'^OOOO oO^oOOOOCOOr^voio -^>j^O»OOOOCOOOrOfO tNCMCN01(NCN0^0l0^0^0^0^0 OOOOOOOOOOOOOOOOqOOv -H(NPO"*iO>Ot^OO OOOOOOOO 236 GENERAL TABLES < W tx W H O Q W H O W ►-1 O o O X < CO fn O H P o o w < m ft w o w o P^ w Ah z o !^ E 0\OJOrO0000i'-i\0 CM'O ro « ■'li -:*< *© lO lO vn Z o z t3 rOTjHO'^iorOOOO^O O— 'TliUT^OOO'O fM*0 Oc^o^oe^^OC^^o ooo oooooooooo OOOOOOOOOO OOOOOOOOOO OOOOOOOO M < O^oioOoO'^rsOfO'^ ■^■^cOOOJ>J^^^C^]■^*^fO CNCNJCNCM'r-i^-.-lOOO OO>OnOvO\O\O\C?>0000 OOn^fOO'-'oO-H oor»oo,ooOsoOQOoo ■THOOOOOOOOO OOOOOOOO o z w H OJ O — to -O T-^O O '*'Or^Or* OOOOC^O^C^O\OC^ a.O-0*CM^O\C>OvoOOO CMOO'lMOvCT^OO oooOoooooor^t-~r— ^o — ^^oo-^ooooo '-'■^■^'-'OOOO-'-'O OOOOOOOOOO OOOOOOOO O CO Ot~-\Oi->."iCN-^oo>oO CMiMO^O-OOOOOsroO ij-jt^oo^OTfr^oor^roo ■,-.-H,-HCMOOv'->00\0 OOCM'Ol^-lOCM'-llOOOi-t ^-C^oo^D^^r^oooo^t^ ^-oootf'-^Oo^lo■^ CSfN '-I CMCN'^^CN(N.0\ o) CM -H -H ^ O O fO r^ f*^ PO fO fO fO '^ *^ OOO OOOOOOOOOO OOOOOOOOOO OOOOOOOOOO OOOOOOOO ca W CO CM-^'O OOOO (^irtOaiooooo\C\oot— oct— fNOO^OCvJ-^'-CNCSOMM -Hr-O-OO-*>0t^ oo-^ OO'-'OOOOOO'-' OOOOOOOOOO OOOOOOOOOO OOOOOOOO E- H O O CO -f -r-fo _H-HfO-H(Sl-HO^CN- o to OlMfO rOT-.-^pOC^\OOr^«r^ OOOOOr^NOfOcOiNOvOO Ooot— lou^ioOfOr-^r- ooo OOOOOOOOOO OOOOOOOOOO OOOOOOOOOO OOOOOOOO z o a z < Cfl CNC0>O — irOrooO''-nOThO>nO 'OvOCh'-'CN^-^iO-^-.-i i^O-^-d^t-^'OUT^cOO ■^'-'^'-f— "OOOOC^ coOvvOr-JoOr-j-OOC^oo r^Ot— i->.r^ooooO\t--t-^ '-'p-^C^rO'ti'OO'* rOf^CN r^CM-^CNCMCSr^llMOXN CNCNCNoa-c>ooo OOOOOOOOOOOOOOOOOOO i-> CN ro'-* lO «0 t^ 00 GENERAL TABLES 237 I o oooooooooo oooooooooo oooooooooo oooooooo O 0000C000CO00C000C0O\ OOOOOOOOOOCOOOOOCOOO oooooooo •rHCNrO'^i'1'OJ^OOOO 0\0n0\C7\0v0\0iC?iOO oooooooooooooococoo\ oooooooo 238 GENERAL TABLES t/J m 1— 1 H o % y. 13 hH J L) 1— 1 < Q g > S J « m 2' - o ° B 3 W g W w H Pi O J Q ^ ^ £ K g O tt. ?"" " ^ o o O O H H M Oh Q Q 2 0(2 w o M ioo*orMvHrM»rt 00— ■■*MM00OO\ rsrOO^cO'^n'-" 00'O^OlO^OC^r■It^ CM Oi Ov O —< O -^ r^cM i-ioor- T-H-^io-^ C" t- Ov*0 *00 ^ OOO OMO OCSVO irjioii-i'O'OTO"'^-^"* c*i00'-"Ot^Oi0\'O>JlfOC0 »n*OO'O*»rtO.'O00Ocq 00^^0^^000>0 oococooooooooooooooooo -fi-Hroroir>cMOOOC'-' 0-C0'0o0^'0r^r-^(NC?' Or^O0\-*0\0\Tt*00C> -HinaifMiofMWioc>0 i-~a,OOr^>OOOOC' '-iOCMfO--'OiO>OvOCO ^i>-00^OOvoJr^t^vn ioO\oot^cM--Hr^'OCMOO OOcMC>ror^ororoO UT.t*OOlTt<'>*rOOO00 *OC0'-<,-i00fMOvr*)O(M ^^0\Ox^^-^>.oooooo^-J iyiO«^O'O00'^"^000^ OoOCO^OoO^OwirO-* r^vOi«00CMr^TfO^**l ■^O'^roOoOOOoOOr^ ^-ct'iriioiorlirf-j'ii OO'-"*O**CN'Ov0CN t^0000lnu^O^C0^O<^■* CO oooocooooOte'ooeoo> OOOOOOOCOOdOOOOOCOOO ■*OOvrOOiC0O'-O'-OOr^'-'Cn irtCMOOirt-Ji'-^-^O'*-* or^Of^r-'OCOfM ~ t-^so^O-^ioO-^coCh o -t c^ ot -t" ":- r~. — I O -+ --I ^O OLO "^ "- <-^ -OOt^OOOr^CO" »Ot^OOO\OOfOi' MO t— r* CO r^ "-" -" r*i o >0 0> O ^^ H O^ ''lO \o-* \0 0> O -c ^ CM OO 3-HOt^ U OOOfO lO"rt C^00^~* "^ CO 00 00 01 :fM O- O : m o c> : — Ooo i-c ooo :-+ rooo OCOOOCO'-"-- t^O^O OOOvO'OiO-tOI— t^ 00lO00O'*00CM— tM UlT-iPO'-'C>lJ^0OC^lCM -^OOr^OOOC-^COCM (Nf0t--C0OC^I»0^tM ^OOOCM0C>^r-lO ^OvOO'O'OCOr^i^ -THOvOfOCM-^POOOCM CMlOCMCMOCMtN^Or- O-O— 'vO'ifoOO-- _ CM-^Tfl— r^oOCMtNCN r*roooo<*;Ot^CM 3t^ Ov 00 0\ 0\ "* •* -thoOOC^'O'— O *oooTi-ioio lO'^OvCMChO-fiOOO mr0OCMr^r^"r;00^ (*5Cr^-*r^00■OOOcOCO^O CMiO'O'^loO'OO'OCO lOOf^OOoOO*"-^ r»t^Th'^roO"*'"co CO'OPO"omcM\0*-'OCM CNfMfNCMM'^iO'^"*'!* Ov-*fMr-.coiocooO CMmoO'^iOCOrD'^MD iOTfiri*omio*0'Or-- T-^lM^*l-tu^^Ot^oOC^O COOOOCCCOOOCOOOCOCO> — (Nfn^io'or^coov ooooooooo Ov O^ O^ O^ O^ Q\ O^ Q\ C^ GENERAL TABLES 22') O H 2; P o ^' o o o OT O , ^< 1 5 w '2° ^ z ^ H ■ z p o o H <; ^?3 OH w o 'OOO'O'-hOOvOO-O ^^T^^OO^C^O^O^^CO <^^tOO^^CO■•-"*OOQ^(N OO^Ot^T-HO^^TtHl-lfO t— CO Ch COO O '- CNWO-^OOroWJ^COOv rOO^<^0'ONTj*CNCOr* ■^v000«c^c■^'0^■^t ^T-cM'-iC^CNCOt^rOCN 00-*(NrM<^r^t-^-'-'O<3 00 Tf CO 3"1 COt-io-^ 1 rt< lo -H ro C- ■*f (7. O t^ O 0\ Tiro rO (M r^ >o fo u OOOOtN -^ 00"T*^O\^r^r*jtMco '-irOOO'OoO'^OOOv OTt>Or*00OO r— 1— t— t-*r^^-^^O^oo OOOOCOOOOOOOOOOOOO -fO^OCO^^O^^ Tt-h^pTOCO-^io ■^T}iOiOi'l'00\ On (N <0 t-^ ro Ov \0 OOf^ CO '-'O CO '-'t^ o\ O ^ '-' CN VO ■>— CV| O I-. CM T-i (M ,-( 00 (MU-toroOi-i-HioO »0 OiC^l rococo •OOO CO vo rf r^ -^ (N o _ ^r^ CN CO t^ fo OJ rt* CO »0 ro CO 0\ cofO'OcO'-^csOoor^ -.-HT-l-^voO^OlOlOOOl-- •+<*)fOCOOO\00^\0\0 **Ococoior-icor*ro Ot-'— O*^rDiJ^0000>O ccocot— 'O(NtJ"i"0r*O : rOOs ' ioOO'^ :o — o OO 00'^(Mr-]ror^ OOJO^T^CMi-iCSfO OOOOOO^'i'-''^ ^'-'OD^omoJ(O00'OfO'^fO J-r^r^cOpncoOoir-] OOc-co^^^^r^'O'-" CNtN-COOOP^f^vOO vOtJ-'Or^rO r-*O>r-.mt--r-'-<00 OOOCNo M O 0^*0 0"*fOr^O\'^'00\>o toor^'0^0'<**\0r^o0 ,\O'O'Ot^00OO»- t^r^oO" C>O\ ■^PO'OO'OOv'OCMCMCO TCN'O'-H'^CM'^'O ri>Ot— f*-HO<0000 — CMfO^lOVOt^COO^O COOOOOOOOOCOOOOOCOOv 00000000000000000000 O0ro00r^0ir^t--'0 •*fOTj-oO'*"io'Or- ^0>0-^0'(MO'0'*30 O ■* o O Ov \O00 O. --. 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CMCMC^^*5'Ot>■■*C?^ »O(Mt-~O'^C0-H.pHO>CN PO^-^O'— OfO-Hi— iJ-> COOCOOO-^Vlt-^Tf-OlO for^uD — io-H- J « -1 WO a! o iw O'-'O'^io-^t^ChOOoOOLn vOfOO vOO'-iOCOt^CMnoOi^rOO 00\''-i "ti -a -Q ■« ■•-H-^^ttvOoOi-OVj^i-tcoOi^ rO'OOOOONCSliOCNCviCS CNi>.iO"^roO'OioOO 0\000000'^CO(NO-^ ■^■.-(.^■^lOOOior^r^ C?.-^0'^i^'--''<-'>-i"^r-*Tj^ ^^^ ■•-ii-HCNCNrOPOuniO •^Vh \0 O ■^ 1^ <> lO-w t-h" '-iCN---iOOOf-*'-<'^'^f^l>- ■.-i^(N'<-i'r-i-'~t'-HCNlC^CNrO'^ tOOOOCOOfO(MOcO''-iO\r* OC^'<--iCiOCsCNOOvO r-oO-t^CsoO-^C- -^r^C^-^O ■^^CN'.-i-^^CNfOrorO'Or- cococooooooooooococoooc/:) VO ■rH 00 t^ 'OOCNOOfO<0001>-^'^0\ u^-^ooeNuoi-ior^c^csi r^'^ CNt>-CNOOOOlOiOI>.rO Ol>- ■^ -GOO-^'-'CNiOioroCM "^fO ■^■.-HCNCMCMCMOICN OOOOOOOsOOiorOfMro OiOCOOOro-^OfOOOCN w ^ ^ CS -^ CO C O C< 'O 'OoOroCOONOOOC^N'^fOi JCNCOO'^''-i'OOsCS^ T-|-Tt< a>r^cocoO'^'<*CNO\co r-CN -^■^CJvOOt^cO'^OW^ I>-1>- ■^ovoooooooooco ooo COO'-ir^'OvOiOroCNC^ tHCS oocN'^cscscor^i>-iJOio soio '-I'-ICNCNCVICNCNCN ^-HCNCO-^iOVOt-^COOO ■^CN \D \D \n \f^ \j~i \n \r) XT) \r) \C> sO^ OOOOOOOOOOOOOOCOCOOO cooo GENERAL TABLES 241 H J ERES CHOO ND. eM P 2 fa o z a 00 CM -^ O O CN iJ- ■r-l lO Ov r- •«!J^ CO 00 o r^ _^ -* 00 O ■^ 00 \0 O O '* ro O On CO -^ in CN o -^ CN CO On <;5 fO !>. OMi^ ■^ 00 IJ" VO '^ O (N -* oq \o t^ CO o (N Ov IJ-l 00 !>■ CO r^ 00 i> O (~0 CO t^ 00 -^ oo r^ o 00 -in o 0\ !>. 1-H ^O 00 ■^ t^ o o o. ^ ^ NO <5 o vr> o_ CN li-) !>. lO oo -^ !>■ ■^ O CO CN LO l>. -tf NO ^ ^o r^ NO lO U-) ro ro NO GO 1-1 CO On CO U-) On ^-H CO Q r^co-^r^'^rooy: CNiot-.T:t-<:M>^ lOvOroCN-^OOrot^ONt^ coOioONr^t^oOfONO-^ cocs^or^'^or^o^ 0'^coCNt~-i>.i>-'^coO CNf-ic^ONOCN'^ONr^O ■^0-^OrO'*\OCC O J>- IN Th OO-O !>. O CN 00 cOOQ-^r^COCONONOoOiO & H ^ OOT S iO'*-<:^^vo\0\0'^ ^OooOoO'-HLo^-Hr^roO NOr-ONOCNr^cooo-^co io.,-«r^iovo\OCN^ ^01-lNO^^'Ol>^0^-lCN■lOlOvo-IJ^00vOC^ iou-)t--ir)OOr-.OOv'^00 I>-00-^t^'rHt>-OCO0000 (NCNCNCNPOCMIOCN COcoroCNCN-O^O coOnioCNI>-OOCO^-hOco \0 !>• r^ CN CN CS (^ '^c^■<-l■^l^^^>•^:^^^^0'-| ONOOr-'^ONOOOTlHt^oO ^§ ^ o a < tn t^ CO 00 o r^ -^ ■^r^OCNt--CNiot^ioi>. OO00ONJ>-t^'^fO^Tt< 00 CN u^ O o- CN r^ ^-Hr^t^CN'^'O'^'^CNO O'^MOn'.-iCNOOnCOO OO ■ 00 -^ CMO c r^roCN-^cOT--'^00Oco O -H vO CSI 00 O ■.-1 t^CNOst-*CNNO'^'^'-H'^ TjH^rocOcoOOinCNCN '^ m 'O »^ 00 o o ^-HiOr-^lOOt'^'^ONCNOO r^ooiot-^CNqr^'-ifoONoo ■5 CS CSI (N rO CN O r^ -^^rocoCNcoCNcOCNriCN COC<1CNCNCOCN^COCNCN to 1 : CM 2) O ^ -< r^ o- CO Q t-H ^ 00 -^ O NOCNr^oO'^i'^^CJO^co X ■.-lONO'-ir^O'-'r^o-co -< ^ On ^ lO ^ C^ ■--' u-; lin CO ^ O O 00 o ci CO ;:i. 00 1^ '^ ONCOCNO^^C^OOTt^cOm loOoO^ONOun^^'-i^'H d O LOCNO^-^CN'*00'-iNO"^i>-) pq u rOCNCNCNCN— «(M-H'^^ < ^ H Q OINED From LECTION On operty Op LROADS And Other .porations. 00 On -^ lO OO NO O ■.-HCO^CNNONOCNCNOOCO . 00 lO CN . CO -^ 00 00 ■^COOnCN'^nOOOnOO'*** CN CN r^ CO '-H NO LO OO'^'^C^OOcOOnOnOO ssu-i « fo '-< r^ lo r^ CO CN ONNOii-)LocorOfO'^''-i*-( 2 oa, < o '^ ■* CO ooON -^ONCN-^00CO'*r^'<*CN O— ir^f^'Oc^CN^O c000nO1>-O'^00'^c0C0 CN(N-.-iCNCNCS^CN CN-^-^-^CN'^-^^'^'--) OOLO'^OCNLOCO'O Oi>.'^Nor^oor^oOr^co C>'^CNO— "COOOnU-jnO z ^-HcriT-io^f^^^'-' invo-^-^cooOO^oO'-' OON'^NOr^ON'-t'-im-.-i ■^00Ot^--'-(M OOt^O-'^OQcoxnOON CNtNCMCNf^trjVOf^ •^roLOCOcoro-^coCNco '^COCNCNCOCN^COCOCN * < ro'^Loor-.oooO ^CNrO'=f<'J->Oi--0000 ■^CNCO^iOnOI>-COOnO 'O^o^D'^^'Oor^ r^r^t^r^r--r~-r*r^r^oo OOOOCOOOOOOOOOOOOOO 00 00 oo 00 00 00 00 00 00 00 oo 00 00 00 oo 00 00 00 OOOOOOOOOOOOOOOOOOOO 1 (16) 242 GENERAL TABLES S S O w 2q CO "z s a oS ^"< W £ §^ WM HH << mH : m oi r 1:^ J « ri « S OCL. < *^ •"• Pi to (fl' Oi H g O O 5 Scd S ^ tJ » W^H W (O f^ O 5 Q g o z w O Bl (MCNCNCN-^'^iO'^roc^ vOC0O^LoOO00r^'O■^ O^^^*C^"^i>•Q0OC^C0C^ loror^OCMJ^'-iooONio vOOOiOi-iroOOJroCNr^ t^io-rHiO'-iiof^r^O'-i lovocor^i^ro'-i'^'^i Os\0'-<0\'^ior^0v\0'«-t »--i Thnioio-^ioiovo ■^OOlJOrOO'^C^Ov OO'OOvi-HsOroi^ '-Ht^OOfN'W-^CN cooN'^r^oO'^CN-^ ■^niom-^ioiovo u^focsO^oosONra c>'*-+ONt^ooinoo ■^i>.COiorooOOO Ov-^'^'^CNONinm OOOnOncOt-icOOO'^ C0O'-'O0n'O'^.,-h ■.-Hfot-^oor^OON'^ COO^DOOnOOO'O ■^00'^0^-<--tC^--i O'OfO\0ON00>^CS ^-HPOt^OOOOOM^^-i rOO\roiOOO»Or^O\ OvOr^-t^t^ON-^-^ fOCSCNlCNCNfC^c*^ r^r^cr>oooNoooN'»H CN-^ONOvy^l^CNOO ■rH-^-<^ONOSOOO ONiniMCN'^iOOsOO 00000000 0^0^0^0^0^0^0^0^ . O o o - s^ I §" •< .go — ^■W3>, o o o rt^^+J ^ - rt *-■ C ^« _ 5 '"^ nl C cB d rt ■M '^j cd "^ . +3 '^ +j c c-a c c c c G S Eg Bag SB rod d d d d gP< 7i (J 0)' a> ■9 ft .-&< f^ ^ ^ B "&. o*j S +3 ,: TJ Si^S R u-M ff! ■ '3 School aining h Coun ton, M ounties las, Ma unties. ^ acu too t2| BtJo ^S c 0-2 Bi Ca ^) ^^- 3 IS g §■0.1 ■dug P 8> '"H-" So; Si ■o„ a So" d oj t- Revenue a Including Amount R In part du Accounts Abatement Rich No settlem St. Cla o<> tj-a <»H^ bo GENERAL TABLEa 243 00 M o O Cv H 1 (3 00 P 00 ' tq W 7, o O'-'^C'rfC-TjHr^OO •^J"00^000\■»J10^0'-^0 (s■*^^c^'-l■^-ltooo■^ 0(SOO>OfOO»Ovoc» i^O fO CN COO d t-^ O OO ■-H (N oO »0 ■^ i^ t^ PO >^ t— ro -) \0 ^ '-' >^ *-! CO fn fO -O "-" CN -* ^O 00 lo O O "J^ r- i-~ \or-^ '^OOOOCO'O CO ^0■-'■*CNCOr0^r)■^ or-i^\oooOr>i-*^ciOO C-lCNtNCNCNfOPOrOror^-* COCOCOOOCOCOCOOOCOCOOO OJOO'OO'Oi-ii-icO^O T'OCMI'i-H— -^i-HT^ r^Tj'fot^OicQi^'rt'Oio :Oi^r^(N OOOO ■OODCO'— OC^i^ ,(N ^ rt ^ .-. -t o — o c: cc o 00 O t^ Lo O O "^ , "— I On lo 0\ ^- r-i "-H CM^CNOOOOO'-'fOCN o^oO'-lOc^'J^c^^ooo rMiooooro*Or--fOO-* C0r-100rOC>CNiMCNl^OC CNCN(NrOCO-:ffO»OP-0 CN^'OOOOC^l-rh^OOO COCOCOCOCOCOOOCOCOOO rt vi-)ior* (M O 0OC>(S] i-HCN r-1 "T \0 fVJ IT) Ol O \0 vOOCO-*iO OOtNr^cOi^ ■*OCO oi O 00>o CI CN Occo Tt< --'mcN OS O <^ CO 00-'^ OD O 00 C- -O lo O O O ir^ Oin ro COO CM ^ vO OOO \0 -O »0 \Ol> 00 OOOO OOOO 0) HH CO C.rt Wl-rH ci-i o >> _'+^ 5 O f^ m O I- rt w O O S oosoo ^5 po;qo^ OThr^o'3 O_00_'rHO^Q o"rJ"o"ar , 00"^CN t! H a »5 --a S 6 ESS - S S""'"" 244 GENERAL TABLES 00 p! o o On H 1 00 & oO <; '-< □ ?, C/J t— I o CIS •^ J P s l-l C/3 s UH ■< •^ H dt PJ ,o o H *,•) 1 w H H rt o <1 Bi rt Q W Z Pi W •? C5 O lO SO ■* r^ "S* l^ t^ ^ -* "* 00 ■<* CM o -H CO so CM O (N Os so o^ <} O o -* a ■>* lO o so CM CM to to »-( r^ Ch fO PO ^ r so o o c to to CJ^ o lO o PO -^ w> t^ lO so o SO c> o t^ 00 t^ o •* u 2 < O o Os so so O ■D 5 cs CO so CM o 00 Os m - '^" --" CM ro CM e^ ro to ^ ^ CM CO ci -*" O t^ in 00 •o rO t~. CM o SC CO CM CSJ ^^ P~ SO ,-1 CO J w J "5 3 „■ 00 OO CO so ■^ 00 0( CO CO to SO lO CO ■•^ SO lo r^ so O- ro ■^ so r^ a to CO (-* c^ t^' 00 •J (sj O lO t^ . Tot Gene Reve: Fun m o m o so ■^ i-~ ■* o Os CA O lo vo ■^ -£ OJ CO to ■o CO r^ "* Oi so J^ -r-T J^ 00 00 f^ tj- t~. Os fO o «* 00 ro 00 o lO o O ■* C^ O W 2 S 2 o o\ so OC c> rO ^ cr 00 OS CO o> SO CO CO o ^ ro fO CO to OO SO Os CI ■* tH CO ■^ CM <» H OO 00 lO 00 o T-H Os u 2 < ■ 2 Os Os t^ lO CO Os ■* -:f O^ lO CM li^ to to 00 to vH rt SO Os 00 rC ^ so C^ CO o CM r-. 00 o. o c^ to r* «e *"* ^ ■^ ~i^ o fO l^ to SO lO CM •o ■^ lO cs CO so SO to Os so Os o ^ Csl ^ 00 00 -o r^ li-i m J « < < o o tf OC) 0C3 so CO O aJ O c^ c so 00 O 00 t-* -H 00 K S « o> -* o Ov o CO o> li^ o -Tf Os Illi Cen Rail -o o lO ^ ,^ Csl c^ OS CO ^ m ^ ^ ^ O so CM "* O \i-t c^ 00 to r* t>. r~ r-- 00 o o to Csi *^- ■^ so o CM CO CM CS CM _m_ "^ -a* is; fo t— o OS o r-^ Tj. O, lo 00 o o OO c> m CO CS] OO n (fl M U M S CO (O ro m J, so ■o I^ fsi r^ ro ro O ^ CO CO O o ■* Unit Stat 3 VERN oT CO ^ ■* o CM SO so lO C^ so CO 00 lO CO OO CO O cs 00 o f* CO ■* 00 so CM CO "* CO CO to O m -- " OC C li- »/^ t^ t*- !>. O o. ^ 00 O o O I-- 00 > ■^ lO ■* a c C7> es o^ 00 C^ CO o O 00 oi H 12 f- . 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" OC c ^" CM CM CO o d" Cs CN ■=t "^ OS O O CO C^ so to so Vl O Os tf ^ & !^ ^ c c o o o O SC OC o so CM O S p -o oc CM Os f*- li- c CN CV ^ 00 lO 00 OO CM RANI S AN XES. <>) t- C xt ■* r c- \r CN »o VD OO oi C^ ■* ^ "^ Cs ro c- t- r— CM ■* O so \r, o< rt SC (^ __ ^ o '- OC a li- ■^ CN ■* OC ■* f^ o SO 00 p W < --* ^ u- ' u- ' Oo' so' a t- ' ^ es " ^ 00 o 00 CS] CO Tt^ Os (0 w f-( c f^ to ^ SC CV c- SC t^ CM U-) o. to CO CO SO CS Os (—1 o» ^ o OC ~^ (N CJs tr f^ cs ■^ •^ so to OO CS] ■* •o o- '"! ■^ C ■^ "^ ■* SC l> f SC SC Os CO Ov Vi ■^ 1-- o n c/i CI .^ ■^ ^ -t CM « CV li- ■* CS 't >o Os ^ 'V Ch -*" ^A < M n ° cv OC r- rO r> <. c OC ■^ tr "* O \rt •^ so ro lO 00 CT OC '- O 00 **■ n- Cs Cs t- 00 SO ■* to C^ en ^ C^" C SC t"- O ■* '-' O '* CO 00 O ro li- f^ r*- ro 'S- re pr -^ " -^ Pi- CN ■* r- so \o r-- 00 c> <: Q d J5 ^, S !^ d w « Z o (N -^ ■M SC OC O CN ■>i SC OC c cs ^ so 00 o csl »* so 03 t-^ r- a r~ f- 00 OO OC OC OC O O o OS O^ o o o O O 00 CC ,^ °= OC 00 00 OC a. OC OC OC OC OO OO o- o c^ Os Ov Ol '- '- ■^ ■^ '- ^ a & s fe g a 1 c ss "o ■^ 'il 2!i! d <-« O '.-I 2g§ .°|s 'd § h*^ S.S « -I'll Si O p rt OJ C u 'SchOsOsQO O ^ t-; q 'O ^_ q O^t-sO-^ C -is q.-* f-.c-_ c -r) C> -^'so ^" d^ .j-HCMC^lOpg 0-, q Qj (3 1) lu GENERAL TABLES 245 m Q 2; t3 tLH hJ n < (- r) fi, < M Q < ;^ <; N oi P g; to w w > 1— 1 > X F=^ w X 1 -< H (0 \-> W < (n B H < H W fa Pi O H W Bi H Oi <; - " Ph a O n I-*. r^ vH lo CO Ol lo r* cs VO o \o cs -f ■* 00 0\ O ■'-ifOr'ir»coi^fOO I CS to ro to O 00 . l/^ O Cv CO O >^ «3 O 0\ o o O) \0 VO O •O ^ CT> as as 'O ^ ■=* o Ov' 00 0^ ■<* O^ O ^ o ro T-i 00 m on on -^^ rO (N lO 00 Ch o\ CN c> ■^^ 'I '^_ '^^ o ■* Or-J^yDCOO(M-*'OCO: CNtNCVltNCSrofOrofOfO' 00COCO«3COCOCOCOCOCO: O ■* O CO O *CI fS o ■* ■-H CN ■^" \0 lO 00 -* 00 O O O^ — > O ro CO Ol GO -^ Tf CO '-' O r~- 00 »C ■^ T-H 00 O ■=*' O -O '-t -^ lO -^ C> fO Ol (N '^ ^ O <0 O '-" 00 CM -f o 00 03 O C-l "* S o o lO o O 1— fO 00 (O o oj-*r^o\>orsioooo Ot>rOf004'#000 (vjT^vO^OOO'Or^ON CN CN (O lO 0\ O Os u-1 O "O ■^ "* C\ ■^ \0 DO O (M CO CO iJ^vOC*l1 > H w t p< 1^ 1> >^ W 1— 1 X! p CO < O n Pi H H H o M 0. < P4 H •p M o H W Q t-i ►J (i^ CLh O s o W r ) H fc I— ( W CJ W p! hJ < H O H II lO lO **NOCM OOOOCM : : : r- lO 2 CM QO OOIOOO msOONOOlJ^ : ; : 00 O NKNOW: Minor Heirs. o t^ Tjtr^o CMOO'-'ONeM : : : »o CM NO >o wOm OOOt~-Oco : : CM ■* ■* to CN"^>0 eMcOT*c Tt to CO 00 82 . : O O 2 :^ S ■ ggsg O t^ 1^ o\ »>- o OC CO t^ On t^ O CN ^ O O r^ o« o : o O ■ »o d ^ ■* l/l OC ■* r. OC CO CN o o «2g : CM m CO OS "* lO CO r^ CO OJ Tt lO : CO to "1 z d 3 d H ■< fa -T -*" t^ c CO "* r> On r-- c CM CO CO 1>- CO •c •^ m NC '^ -c o -H !>. 0> CC On O X t^ NC NC CM H O » M O '. w H ■^ to IJ" g 6 O 0> NO XLINOIS River ROVEMEN Fund. c*- CC c c NC On CO C^ NC ■* O t) On 00 00 NC OC 01 c- OC eS 2 CO CO -* CN CM £: s ^ (S ^ : (/> Canal demption Fund. in CM 3§. o. 00 r-. O CO O VI ^ f^ O O C> On' CM CM CO ^gg o O lO On lO NO « 00 NO On CO — « OC 01 S S :^ oT O O >« po' ^H lo "1 c^ ". 1 rt [ CO d. tf 6& O. ■* O rj. 04 CM r- lo 00 o >• < (^ o On O V3 '^ O NC CM >0 pj Q On r* O NC On Ov < a t- CO lO CM c* CO 00 ^£ O 00 ON X 00 ro -^ ■^ ■* CN (*- c Tt< CO NO rO s 6F CO » ■^ ■* 00 o ON O ^ ON O OC CO 00 M . CO CO •* OC m "-H Q ° CO IM 00 N£ r^ O o -< ^ O -"t CO O^ NO o ^ 00 O ■o CO O H ^ lO rJH >o vO *-> m i-T iH » ^ CM --1 ^ ^ K to T* r' »o 0\ ■^ a w O^ t- CO O CO H Q ■r^ NO -* r- 0\ t- c « 2 W (N t- On r- OC On O C?. CO I-^ NQ CO On CO CM o> i-i ■<*< CO to t^ -O O -] . CO O CO 00 tJi 00 On Ch On c 00O0nCNC000'<*'-'CMNO On O O CO S o ■^ -H fO NC lo o CM CM »o ONCOroO>00>ooO-^cocO -H -r- to NO 2 ^ •O 00 t^ -ijl ..-H NO ^ cs !-» CN'^t-.^COO-^OOOl NO 00 ^rH LO 1-. CM yS Jl CO 0\ t^ 00 00 CM CM(N 'i^NO^^■.-lI^ONC^co to r- CM '-H o O O o lO NO oOlONOC^coC^OOt^t^ 00 CN ON On Ol CM CM CO CO 00 o ■^ '-' o 00-"'--HvHOOO->0 O CM O On ^ (S CM (N CM CNlCMC>JC^CMCMCMCMCMO] CM CN CN i-H Ot^-rt!*J s s <; Q t; H S 2 SS H « Q . (M rji lO CO O CM Tt' S "^ « c CMTfNOOOOCM-^NOOOO CM "* NO CO NO NO VO ■o CO r- f- OC OOCOOOcOOnOnCNOnOnO o o o o 00 CO 00 OC 00 00 00 OC OC OOOOOOCOOOOOOOQOOOOn On On On On S « a > -f^Ho w 1 GENERAL TABLES 247 'O w P o Q 2 2; (J <: Pi H H <; X H |i< O •A < O pi w < W W O CO W o w < o o ft O B s o o CO Q O < 3 P _] «" .J < Q 3 d 101.44 279.78 339.65 775.77 363.47 702.05 723.84 542 . 58 813.86 447 . 94 853.89 245.75 552.61 211.27 539.50 055.16 030.17 925.90 o CM NO On 1* to 1H to o o 00 -^ 00 T*H ■<* ^ lo m ■rH -^ *0 ** 00 r^ r* O. rj 00 00 o -* 00 to VO to ■^ o f^ m CO T-. »H r>. On »-■ m 00 ■* CM O CM l>. CM T-i m •O to 00 tJh 00 ^ CM O t» ■* — 1 NO On ON On gs 00 CM 00 to "O r* 0^ lO to ^ ^ ^ CM r>) to ">* ■. in c?, Ti> r* '-' c^ CM to O On O 0\ o< m o 0\ O Os ■o o ■* ■rn C^ ^ i>- lO O to On On O) On •O m CM to o ■* ■* to CM ■* to m On 00 00 ■^ to r* On m NO m -<* to (3) CN O 1-1 f— NO 'O 00 t- -O O CM 00 -. ^ ■* 00 o O to 'H ■* •* »n to m !>. 00 CM T- lo NO o« t^ CM O ■* Ch m ^ c> ^ 00 On in O O m r^ "-i NO 1-* 00 ^ CM CM 00 to ■^ On 00 -* lo -S* m CM ■<* CM 00 to -H fO On no 00 00 m vo 00 o ■^ On On 00 O On On O O O On -H T*i Tt< NO NO ON ON Q K m O \0 !>. t^ r^ 00 i^ Tf CM w m m o, !>. o !*< yD m '^ m o O r» -. to to CO m CM ■^ -^ t-! 00 ■«** m ■* -rH o 00 1-1 NO »n NO CM O ■<*< -* CM NO OS to CM 00 NO O O NO OJ NO m to 00 CM CM !>. 00 On m CM -^ T-i lo >n to to r* -^ ■■-< m ^ ^ m to ■* CO m On CN m CM m 00 r- m 00 to CO CO NO ON o CM 0\ m ■* ■^ -^ O 00 ^ to C^ 00 CM m o^ -^ 00 r^ ON to CN CN ■.-« NO r^ NO ON o m NO to NO l-- CO -^ 1-1 iH CO CO CM 1-1 •* 00 o o to On NO "O r^ CM to to to ■* O i-t On m ■<-* CN CM CS C>J CM CM CM CM CM CM CM CN CS CM CM CM CM CN a 2 H < 03 O a g » 1 o H -5j DC O 3 Ov -^ 00 "n ■* CM CO ■* t^ O 0\ 00 NO CN 00 t^ ■* On O CO O ^* NO NO O On NO to ■* to o i2 t- On On CM On On to to NO NO O in 00 > to ■^ Ov 0% t-. r^i ) \0 O t^ to ■* CN 1 tH 1-. CM to 0> ^ in vo Ti- C^l c^ ■* o> ^ r^ 0> O 1-- 00 ^ NO NO 00 ^ to c> -< •* to r^ 00 00 00 CO ^ NO 00 -^ CO CO t^ 00 CO CO t^ iH m 1-1 CM m in On ) ^ Tf ^ .^ to VO \0 — -* -O . 0\ to O »-■ ro On CO m -* -*< t- to CM r* NO NO to t^ m 00 vO t— 1-" r^ ■O vH (N ■* ■^ CO ■* O I^ O OO On r^ 00 m CM "* 00 00 NO O 00 r^ CO CO 00 O CO 3 Tji lO i>> 0\ to '-' 00 00 00 On On O O O iH O O CM "O NO r- O CN 01 c c c a Q 3 t^ CO -^ CM VS O) J VO "* V) W Tt( vo 00 m o* o ^ -- ■-• O NO C?N CO 00 l>. "* CO O m CM 00 CM ^ »0 r- !>. O -rH NO >o NO O to CN 00 m h -.-1 to CM -^ r- o ^ lO O O O CM 00 ■<* o m CS 00 -O r-~ "O 1-" to 00 ■rH o m CM CM o m OO NO 1^ »-i ■* to r-- m m o "O t~~ \0 m m to m ■<*( o 00 t^ CO O t^ 1-1 Ch CO CN CO ^ C - C^ to t-. O r^ H ^ »H -^ Tji lO 5 OJ -^ -^ -^ -^ >n O »^ NO O -rH ■* 00 CO to I^ 0\ CM On O CM to OO o> NO m c^ CO 00 to in -r-l ■* o -cf CM oo 00 ■^ CO r^ CM CM CM CM On 00 00 O 1-1 CO CM to ^ ■rt -rH •* ^ i-i CM CS 1-1 to to CM to to to 1-1 ■^ CN to to m c c te Q O 3 cs O r» to CO O 1 CM O CM lO ■* CM .A 00 r^ NO NO On 00 On -^ -^ 00 C^ t^ CN ■* to to Ov 1-1 OJ f^ >o -^ 1-1 m 00 00 r^ f^ NO CM 00 CM ■5 ir^ O 00 00 m t-~ •q ■* r^ lo o\ t— •-< T VO ^ CM CM 'O to m ^ -rH 00 CN O- NO NO O CN to m >n i:^ CM m NO ■^ ■>* NO CM to r^ CM On O O C3\ CN to t^ t-- On C3n to NO o r- f^ NO O t^ m to to NO - CO VH ^ -dH to 00 3 -■ O to ^ 00 O f 00 m to lo 00 o •O CM ■* f^ ■* CO 00 r~ w 00 On to to m t^ to On NO ^ 00 00 NO in NO m o CD O i# m m c^ »n m On r^ r^ O ^^ CN 00 CO 00 ■* CM NO On , ro m >o 00 00 0> NO NO O t^ VO NO »-* i^ r* NO 00 CM CM -* T*< t-. NO Q 0) o O Z fo S 3 t^ w 2 5 Ah W| c c ,1 . . . o ■ • • 01 t< >0 00 O CM -^ 3 ^ \0 1-* r-- r^ 00 00 00 00 00 ■P -O 00 O a t^ t^ 00 aj 00 00 CO en T-" ■rH -H C-1 '^ NO 00 00 00 00 00 00 00 00 OC O CM •* -O 00 O On On On On On O 00 00 00 CO 00 On CM o On ^ -o o o 00 o ON B g 0) V 248 GENERAL TABLES w O M < PS w <1 W M H O H. 2: Pi ^: s o hj w 1-1 J— ( Q fi( W O Ph m S Pi o o P H HH Q ^ W (X, X 'r^ t£ 1 te te to ii Ov CM lO • NO Ti< ■ \ a ^ -) o CM CO 00 CO 00 '-• '^. ; "^ ^ ^ 1 lo 00 r- 2 od o: c O ^ to H w t-T o6 t^' ■ o C\ ■i CM d -■ a ■* ■»4< r^ 00 ; lO ■-H a CO lo r^ N( 3 ll P "0_ 00 ^ *X : '^. <» CO J2 C> CM_ o D ■*- "1 ^. O *o O t^ O : co' rC ;t! S ■^" On" C i -* TjT ^" K On -"sf O O : lo 00 o w ■) CO to 00 Ir^ 0_ i>. N : CO ■^ th to CO «« o 1 O "* O* lo i^ lo ■ 1 o o c lo O ■^ Q ,5 s Oi » -^ r^ -^f CO § 1 O O r. lo O t^ oT t^ d o t^ J^ oc J M lo d \ oc ^ d d t-- n c^ \n K o C < to TjH 1-- c I-- 0\ lo o ES CO eN_ iH ch oj ■*. ^ CO co_ w c* 1 -o "* On^ lo u m t^ T-H ro r- < S ci" c>' o( d d" ■^* W Q a 00 CM to « oc x^ O § ^ H lO C « CO lO On l-H Q, -* »o 00 »i- CM O W -* cm" O CM CM O '-I — 00 c^ VO O OC ocM s:^;^ c. ~Z CM Tt" 1 U « PS O 5* ■*. 9 "1 " 1 ^ NO ^ CV 00 O CO ON 00 ^ I' CO T- NO ■* ■r4 d CO cm" — d «~^ -* -^ r^ lO Tft ^ _; rv On t^ r^ CO •O C^ ] 00 Ch -* ■^ 00 t^ ■* r^ CO CO 3 ^ O I- O' *0_ CM_ rO_ ■-<_ ■- r-_ c^ o Ch O « ^. 00. ro O O ■* 1^ lO lO »- 00 oc C ^H \C c t^ tH *^ S" c - " ■^ fO o o o o «- NO a NO ■^ ■^ u- CO c NO 00 O C)^ 00 CN NC ■^ °^. 'n s ^ X- NC ■-. NO oo t-^ d d d ^ ^ lO NO C- CM O „ 1-. CN r^ ■rH ; -^ NC *o q lo q C^ '- H NO lO 'Ul oo" "O 00 !>. to ^ O ^ ' CO cf O co" -T d M CM C^l (O ■* ^ lO X^ NC CO 00 NO ;i;; ^ -^ c c O to <© ^-^ c " CN Q (M ■<* O —1 X Ov u~ ^ oc ^ - 00 « ^^ c •2 c? CM J Pi ■< o to »0 O rO cs cr^ r- O' NO «? -^ O ^ CM CO 00 00 -^ t— 00 T- lo to < IT) r^ fv Pi fO CO T- 00 -^ O Cfl o o On ^ O 1- NO Tj CO ro "O^ O CM 0> CO_ o oc ■^ , tO_ CO NO ^ NO c 0< 00_ a £ O c^ ^" oT ro' CO T-T u- 31 a O ■T' (N _ CC NC O CN u u H VO (N — r~ NO -H OC ■^ C3N O t^ ^ ff oc c p^ ^ CO l-H ■-- CO m lO C^ ^ -* CO ■* *^. c^ o , c cr NO_ ■^ ^ -^ ^ -' o i-- 00 ■«** CM Ov r- Cl NO <3 CO >o u- lo r~. 0\ Ul CM CM -^ O CM t- CO CO en X-^ ■^ u- -* -tl- CM_ ■^ NO P3 *-4 ^- W C> C^ CI 1-1 t^ Ul lO \o -.* CO NO CN CO ^ en ■=* < O *0 00 O r^ CM r^ !-* NO NO CV- O CO -* »o NO lO H ■rH CK ■*_ 00__ O CO ON O ON ■* o _ ■^ NO ■■C - u- 00 O^ CM o 5 •^ CO CO 'o" r- »-H lO c C ■^ " « On" -C c CM Id*" CM "* ■* Cs CM CO ■* CM ■<* o- o t- OC o ■rH ■* q_ •* ^ vq O CM ■^ ■* q oc CM c ■ CO li-> ■* 7- CO r^ .-. C^ NO ■^ •* <: oc o q r~ c ■*' ^ cs \6 CO "d ■.-« o c o NC C o c^ CO CN \0 t~- >o O- NO --I lO ■* CO c NC ■* oc O CM ■•- ro -^ _ o Ov CM o -o a oc o oc c c . ^. oo' NO CT^ CN CO — " Ov ^ lO NO CM ■^ CM CM ^ Tf cm" O fO CM •■^ i-. t> o CO o CN o c^ NC 00 NC 00 CM C^ i-> (O CM CN to 5 ■^ CO ■* NO o: C c ^ oc c* S" '^ CV C^l cm" CM CM CM d CM CM CJ c^ cr- co' c<" -* " lo" CM ^ 00 -* O ■* NO 00 CJ> 00 O '^i' CN CO CN r^ d- oc CM < ■O ■^ t^ t^ CV VO T}< "^ lO O CO O CN •^ 00 ■rt' I/- lO cm' QO' d lO ■* »0 VC o d Ch 00 1-^ c t^ r> oc 00 lO 00 O 1-1 CK Ul c NO C7N lO lO OC ■* u- lO o d ■* o o^ o* NO ^ c 00 q ^. !>■. co_ NC lO NC Q •*" ^ O NO t-- d 00 NO c d cs 1^ CN C^ CO cc " lO P On I' CQ 1-. >0 NO oc NO CO cv c^ CO i^ t-* OO c- CO CO ■^ CO ■* »o IT) lo ^'^ NO -o NO NO NO r* QC 00 00 o q^ 1-1 «© TjH lO 00 CM -:}< r- ^ O ~^ ■<* r* CN P^ c^ tH ~^ >C On > p* ir CO ---I O J>. 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Ih (H n o nl 1 3 Cll 6n ■B .a 1 t •s c & d oigMli 'd Ti; tj "O 13 o "O u "a GENERAL TABLES 249 I o Q W 1— 1 fe 1— 1 rn r/) <; h-j u tfi tx t- ai r> P rn < < ai H J ■s W D H CL, s <1 S 1 B > H P > ro CO O 00 O O O 10 00 O ■t-H (N 00 o ^ 0\ if Os O CS 1-1 0\ 00 ro -^ 0\ (V) !>. ^ 00 « o 00 "O to Os 00 i-< '-' M Tl< --i 00 — ' w 00 V) ^O ^ Ch CO «* l^ ^H O O Oi 10 O fO '-" fO t1< 10 . o> *0 0\ to 00 o 10 CM O 00 0> to CO 0\ ■<*' ■=*< Ch 1-1 r^ ri C^l C^ CM OJ CM 1-1 Tjf 0\ — i -H 0\ to CM 0\ 00 1-1 CO ■>-< -O CM -H ■* CO ■* -H 0\ 10 CO 0\ CS CS CM 10 00 -o O c-^ r» "O •^ ^ c^ to c^ CO CM t- 10 (N 00 to 10 v-. CO 00 Ch (O Oi ^ CM ■* 10 CM to O ■* r^ CM to \0 0\ CN o o O "O ^O »-< c^ r^ 00 >0 O O to '^ O 0\ 'O to O 00 CM f^ to 0\ o to o »0 ■* ---I CM CM O- Tji rft CO u^ vo r^ t^ CM to irt ^ \o O r^ CM i-i \0 O 10 t-* 10 \0 0\ CM t-. 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State Board of Equalization, Annual Reports, 1867-1909. Report of Revenue Commission appointed under joint resolution of the 34th General Assembly, to propose and frame a Revenue Code, Springfield, 1902. Bureau of Labor Statistics: Biennial Report, 1888; Biennial Report, 1894, on Taxation. Anthony, Elliott: Report on the Revenue System of Illinois, 1879, Bemis, E. W. : Problem of Taxation in Chicago, Bibliotheca Sacra vol. 54; 746. Chandler, Frank Randolph: Assessor's Land Valuations, City of Chicago, from the quadrennial assessment of 1907, Chicago, Donnelly, 1908. Cook County Board of Review: Taxes in Cook County (Duties of Board of Review and Board of Assessors). CuUerton, E. F.: The Taxpayer, 1901-04. Davenport, Eugene: Development of the National Resources of the State. Ad- dress at Peoria, Feb. 12, 1908. Gunton's Magazine, Vol. 10, 197: Illinois Labor Report on Taxation. Handbook of Reliable Information Concerning Taxation, Licenses, etc., Chicago, Hancock & Stone, 1897. Kurd, H. B.: Some History of the Struggle in Illinois to secure Equality in Taxa- tion. Mich. Pol. Sci. Assn. Publications, Vol. 4, No. 4, 1901. Illinois Tax Reform Association, Annual Reports, 1908, 1909. Kales, A. M. and Liessmann, E. M. : Compilation of Tax Laws and Judicial Decisions of the State of Illinois, 1910. Merriam, C. E.: Report on the Municipal Revenues of Chicago, 1906. Olcott, Geo. C. & F. J. : Olcott's Land Value Maps (of Chicago) 1909. University of Illinois: Essays on Taxation in Illinois. Brown, E. J.: Taxation for Special Purposes by Independent Boards in Illi- nois. Haig, R. M. : Taxation of Mortgages and Credits in Illinois and other States since 1870. Moore, J. R. : Taxation of Corporations in Illinois other than Railroads. Latimer, T. E.: Special Taxes in Illinois. Swanson, A. E.: History of the General Property Tax in Illinois, 1870-1909. Burton, S. L. : Taxation of Railroads in Illinois. Whitten, R. H. : Assessment of Taxes in Chicago, Journal of Political Economy, Vol. 5, 175, 1897. (250) INDEX Abatements, etc., deducted from taxes: 104, 240- 242. Accountants, examination fees: 139. Adams County: 62, 98, 99, 228. Agricultural implements and machinery: 39, 40, 210. Alabama: 147, 152, 165, 169, 171, 220. Alexander County: 41, 99, 227, 228. Architects, examination fees: 137-138. Arizona; 162, 166, 169, 171. 221. Arkansas: 153, 165, 169, 174, 220. Assessed and estimated true value: 14, 25, 40. Assessed Valuations: of real property, 21-25, 202-209; of personal property, 37-58, 210-215; of railroad property, 68, 218; equalized valuations, 96-98, 225-226; in other states, 149, 156, 157, 161. Assessment Methods: real property, 20-21; personal property, 34-37; railroad property, 68-71; corporations, 84-95. Assessors: 10, 20, 37. See also County Assessors and Town Assessors. Atchison, Topeka & Santa Fe Ry. Co.: 83, 222, 223. Attorney-General: opinions of, 86. Auditor of Public Accounts: 13, 36, 70, 110-112, 131, 140. Automobile fees: 130, 139. Banks, taxation of: in Illinois, 18, 107, 113, 211-213; in other states, 172, 176-177, 183, 189, 198. Bank Deposits, taxation of: in Illinois, 48-50. Bank Shares, assessment of: 19, 50-51, 211, 214-215. Barbers, examination fees, 140. Bibliography: 250 Bond County: 98, 99, 228. Bonds and Stocks, taxation of: in Illinois, 50; assessed value, 211, 214-215. See also Stocks and Bonds. Boone County: 99, 101, 228. Brown County: 98, 228. Building and Loan Associations, taxation of: in Illinois, 19, 87, 113; in Pennsylvania, 189. Bureau County: 62, 228. Bureau of Labor: investigation of mortgage taxation, 46; fees, 139. (2 Business Corporations, taxa.tion of: in Illinois, 18, 90, 94-95; in other states, 168, 172. 177, 186, 192, 194, 198 Business Taxes, 173-174. California : taxation of mortgages, 54; inheritance tax , 116; State board of equalization, 163, 171; taxation of corporations 169, 171; railway taxes, 221. Calhoun County: 23, 99, 227, 228. Canada, Inheritance tax in: 117. Canal finances: 118-128, 246, 248. Capital Stock, taxation of; in Illinois, 8, 13, 84-95, 218-224; in other states, 167-168, 172, 176, 186, 188, 194; of railroads in U. S., 220-221. Carroll County: 228. Cass County: 41, 228. Census estimates of true value of property: 10 20, 37, 100. Champaign County: 26, 228. Chicago : Columbian exposition bonds, 7; Illinois and Michigan canal, 118, 120; grain inspection fees, 131-134. See also Cook County. Chicago & Northwestern Ry.: 83, 222, 223. Chicago, Burlington &QuincyR. R.:83, 222,223 Chicago. Milwaukee & St. Paul Ry.: 83, 222, 223. Chicago, Rock Island & Pacific Ry. 82, 83, 22 2 223. City Lots : See Town and City Lots. City Taxes: 102, 238, 239. Clark County: 227, 228. Classification of real property: 28. Clay County, 227, 229. Clinton County: 41, 98, 99, 228, 229. Coles County: 229. Collection of Taxes: 16, 17, 104, 240, 242. Colorado: 162, 166, 169, 171, 221. Commercial Fertilizers, license fees: 136-1.37, 140. Commission Merchants' License Fund: 142. Commissioner of Corporations, on the taxation of corporations: 175. Commutation of taxes prohibited: 6. Complaints and criticisms: of local officials, 11, 12; of undervaluations, 27 ; of intangible property assessments, 43, 45, 51; of State board of equalization, 63-66. Conclusions: 174, 175, 200-201. Connecticut: 54, 147, 148, 164, 169, 171, 220 Constitutional Provisions: 2,3, 5-7. 51) 252 INDEX Constitutionality of inheritance taxes: 115-116. Cook County: assessment methods, 9, 10; real property assessments, 25, 204-205, 227; personal property assessments. 39, 41, 46, 47, 49,204-205, 212-215; equalization, 60, 62, 65, 217, 227; railroad property, 75; capital stock assessments, 87, 90, 94-95 ; proportion of state tax, 97, 229; taxes levied, 99, 102, 239. Corporate excess, taxation of: 168, 176-177, 198. Corporate loans, taxation of ■ in Pennsylvania, 18. Corporations, taxation of: Illinois, 5, 17-19, 84-95, 112, 113, 130, 210, 224; "United States, 167-175; Massachusetts, 175-180; New York, 180-183; New Jersey, 183-187; Pennsylvania, 187-193; Ohio, 193-194; Wisconsin, 194-196; Minnesota, 196-199. See also Business Corporations, Financial Cor- porations, Public Service Corporations, and Railroads. Corporation Commissions: 151. Counties : Average tax rates, 99; Percentages of real and personal property, 227; Percentages of State tax paid by, 228-237; See also names of counties. County Assessors: 8, 10, 156, 160, 162, 163. County boards of review: 12, 21, 37. County Clerk: 15. 16, 20, 70. County Judge: 16, 114. County taxes: 2, 6, 15,99, 101, 102, 238,239. County Treasurer, 10, 16, 114. Crawford County: 229. Credits, taxation of: in Illinois, 45-48; in other states, 51-58; assessed valuation, 211, 212-213. Cumberland County, 229. Debts : constitutional limitations, 6-7; State expenditures for, 248. Decatur, 132. Decline in Assessed Valuations: 22, 38, 72, 85. DeKalb County: 229. Delaware: 54, 150, 164, 171, 220. Dentists, examination and license fees, 135, 141. DeWitt County: 229. Double Taxation : 44, 51-53. Douglas County: 229. Du Page County: 23, 227, 229. East St. Louis: 132-134. Edgar County: 230. Edsall, James K.: Attorney-General: opinion of, 86. Edwards County: 99, 230. Effingham County: 230. Embalmers, fees: 135. Employment agencies fees; 130 138-139. 140. England: See Great Britain. Equalization of Local Assessments: 8, 59-67, 216-217. Equalized Valuations: 97, 225-226. Examination and License Fees: 128-144. Exemptions from taxation; 3. 5, 42, 86, 114. Expenditures, of Illinois: 105, 248-249. Fayette County: 230. Fees: in Illinois, 106-144, 244; in other states, 181, 187, 188. Financial Corporations, taxation of: in Illinois, 18; in other states, 183, 185-186, 194. See also Banks and Insurance Companies. Fire Insurance Companies: See Insurance Companies. Fishing Licenses: 143, 144, 246. Florida: 152, 165, 169, 171, 220. Food Commissioner's Fund: 143-144, 246. Ford County: 98, 230. Foreign Corporations, taxation of: in Illinois, 211, 214-215; in other states, 179, 183, 189, 198. France: inheritance tax, 117. Franchises -of Corporations, taxation of: in Illinois, 211; in other states, 168-169, 1-80-182. Franklin County: 26, 230. Fulton County: 230. Furniture, household and office: 42, 210. Gallatin County: 23, 99. 227, 230. Game Licenses; 142-143, 144, 246. General Property Tax, taxation of corpoiation under: in general, 167-170; in Massachusetts. 175-176; in New York, 180. Georgia; 152, 165, 169, 171, 220 Germany : increment tax, 30-32; inheritance tax, 117. Governor; appoints first State board of equalization, 59; Altgeld, 113. Grain Inspection Fees: 131-134. Great Britain: inheritance tax, 117; new land taxes, 33. Greene County, 62, 230. Gross earnings taxes: Illinois Central Railroad, 76, 219; other states, 153, 190-191, 194, 197. 220-221. Grundy Cotmty: 230. Hamilton County: 16, 99, 231. Hancock County: 231. Hardin County: 26, 41, 64, 98, 231. Henderson County: 99, 231. Henry County: 231. Horseshoers, fees; 138. Household furniture: 42, 210. INDEX !S3 Hunters' Licenses: 130, 142-143, 144. Idaho: 54, 162, 166, 169, 171, 220. Illinois & Michigan Canal: 118-128, 246, 248. Illinois Central Railroad: 4, 76-77, 219, 222, 223, 244. 245-246. Illinois River improvements: 118, 124, 128, 246. Improvements, assessed valuation of: 22-23, 207, 209. Increment Tax in Germany, 30-32. Inequalities: 8, 25-27, 41, 82-83, 90, 95-96. Inheritance Taxes; in Illinois, 113-118, 244; in other states, 116-117; in other countries, 117. Injunctions, restraining collection of taxes: 240- 242. Insurance companies, taxation of: in Illinois, 18, 107, 109-112, 244; in other states. 172, 183, 186, 190-191. Intangible personal property, assessment of: 35. 39, 42-58, 211-215. International Conference on State and Local Tax- ation : inheritance tax bill, 117. Iowa: 53, 159, 166, 169, 171, 221. Indiana : taxation of mortgages, 54; State tax commission, 66, 147, 155, 165; railroad taxes, 77. 221 ; taxation of corporations, 169, 171. Iroquois County: 99, 231. Jackson County: 231. Jasper County: 231. Jefferson County: 23, 227, 231. Jersey County: 98, 227, 231. Jo Daviess County: 23, 48, 227, 232. Johnson County: 41, 99, 227, 232. Joliet: 132. Kane County: 23, 60, 232. Kankakee: 132. Kansas : State tax officials, 29. 147, 160-161, 166; taxation of corporations, 169, 171; railway taxes, 221. Kankakee County: 26, 98, 227, 232. Kendall County: 232. Kentucky: 42, 154, 165, 169, 171, 220. Knox County: 232. Lake County: 23, 98, 227, 232. Lake Shore and Michigan Southern Ry.: 82, 222. 223. Lands, assessed valuation: 21, 25, 202—207. See also Real property. Land Sales: 119-120, 243, 245. Land Values: taxation of increased: 29-33. LaSalle: 119. LaSalle County: 232. Lawrence County: 23, 227, 232. Leases of canal lands and water power: 123. Lee County: 60. 232. Levy of taxes, how made: 15. License Fees; 106-113, 128-144. License Taxes, in Pennsylvania: 191. Life Insurance Companies: See Insurance Companies. Limitations: on local debts , 6-7 ; on tax rates, 9, 16. Listing: 20, 34, 70. Live Stock, valuation: 39, 40 41, 210. Live Stock Commission: 138, 249. Livingston County: 99, 101, 227, 233. Loans for Illinois and Michigan Canal: 119. Local Assessments: general methods, 10-12; railroad property, 68, 218. statistics, 208-215. Local Bond Funds: 247, 249. See also Registered Bond Fund Tax. Local license fees: 108. Local taxation: 3, 6, 238, 239. See also City taxes and County taxes. Local Taxation of Corporations: in other states, 175, 180, 184, 188. Lockport, 120. Logan County: 227, 233. Louisiana: 152, 165, 169, 171, 220. McDonough County: 233. McHenry County: 234. McLean County; 234. Macon County: 233. Macoupin County: 62. 233. Madison County: 233. Maine; 147. 164, 169, 171, 220. Manufacturing and Mercantile corporations; exempted from capital stock assessment, 86; taxation of, in United States, 168, 177. Manufacturing implements and machinery, 39, 210. Marion County: 233. Marshall County: 233. Maryland : taxation of intangible property, 56; railroad taxes, 77, 220; State tax commissioner, 147, 150, 164; taxation of corporations, 171. Mason County: 99, 227, 233. Massac County: 26, 233. Massachusetts : taxation of mortgages, 54; inheritance tax, 116, 117, 118; tax commissioner, 118, 148. 164; taxation of corporations, 169, 171, 175-180; railway taxes, 178,220. Menard County: 62, 234. Mercer County: 234. Meyer, B. H.: on apportionment of railroad valuation ,75. Michigan : tax officials, 29, 147, 156, 165; personal property taxation, 42, 52; railroad taxation, 74, 221; taxation of corporations, 169, 171, Mining license and inspection fees; 137, 140. 254 INDEX Minnesota : special mortgage tax, 57; State tax officials, 66, 147, 158-159. 166; railroad taxes. 78, 197,199,221; taxation of corporations, 169, 171, 196-199. Miscellaneous Corporations, taxation of: in New Jersey, 186-187. Mississippi: 152, 165, 169, 171, 220. Missouri: 145, 160, 166, 169, 171, 221. Moneys, assessed value: 48, 50, 211, 212-213. Monroe County: 234. Montana: 161, 166, 169, 171, 221. Montgomery County: 234. Morgan County: 227, 234. Mortgages, taxation of: in Illinois, 45-48. in other states, 51-58. Motor vehicles, fees for; 139. Moultrie County: 227, 234. Nebraska; 161, 166, 169, 171, 221. Nevada: 163, 166, 169, 221. New Hampshire: 148, 164. 169. 171. 220. New Jersey: taxation of mortgages, 54; State tax officials, 147, 149, 164; taxation of corporations, 169. 171, 183-187; railway taxes, 183-184,220. New Mexico: 162, 166, 169. 171, 221. New York : special mortgage tax, 56; railroad taxes, 77, 181,220; inheritance tax, 116, 118; State tax officials, 147, 148, 149, 164; taxation of corporations, 169,171,172, 180, 183. New York City: assessment of real property in, 28. North Carolina: 147, 151, 164, 169, 171, 220. North Dakota: 161, 166, 169, 171, 221. Nurses, registered: registration fees, 139. Oath for assessing officers : 1 1 . Ogle County: 234. Ohio: unit plan of assessing real property, 28; tax inquisitor law, 51-52; railroad taxes, 77, 194,221; State tax officials, 145, 147, 154, 165; taxation of corporations, 169, 171, 193-194. Oklahoma: 153, 165, 169, 171, 220. Ore Land Assessments, in Minnesota: 199. Oregon: 147, 163, 166, 169, 171, 221. Organization Fees of Corporations: in Illinois, 112; in other states, 181, 187, 188. Peddlers and Hawkers: license fees. 107, 243. Pennsylvania: taxation of personal property, 55-56; railroad'taxes, 77, 190, 192,220; inheritance tax, 116, 117; State equalization and assessment, 150, 164; taxation of corporations, 117, 172, 187-193. Pennsylvania railroad lines: 82, 222, 223. Peoria County: 234. Percentages of real and personal property assess- ments: 23, 38, 227. Percentages of State tax paid by each county: 97-98, 228-237. Perry County: 235. Personal Property Assessments: in Illinois, 2, 34-58, 202-205, 210-215; in other states, 156, 161. Piatt County: 235. Pike County: 98, 235. Pope County: 23, 227, 235. Powers, L. G.: proposed classification of real property, 28. Public Service Corporations, taxation of: in Illinois, 8, 18, 87, 90, 94-95; in other states, 153, 155, 156, 158, 161, 163, 172, 176, 181, 184, 190, 193, 195, 197. Pulaski County: 99, 101, 235. Purdy, Lawson: 28. Putnam County: 23, 98, 227, 235. Railroad and Warehouse Commission : grain inspection fees, 131-134. Railroad Commissioners: 152, 153. Railroads, taxation of; in Illinois, 13, 40, 68-83, 202-205, 218, 223; in other states, 172, 183-184, 220-221; See also Public Service Corporations. Randolph County: 235, Real Property: assessed valuation of, 20-29, 202-209; undervaluations . 2 5-2 7 ; improved methods of assessment, 28; assessed valuation in other states, 156, 157, 161; percentage of total valuation, 227. Recording Tax on Mortgages; 56-57. Redemptions from tax sales: 5, 243, 245. Registered Bond Fund Tax: 238. 239. See also Local Bond Funds Rentals, of canal lands and water power: 123. Revenue Commission of 1886: 8. Revenue Laws: 2, 4, 7.9,38, 68,84,86, 113, 114. Revenues of Illinois: summary, 19, 104-105, 240-247; insurance fees and taxes, 110-112; inheritance tax, 116; Illinois and Michigan Canal, 127; examination and license fees, 134-144; Illinois Central railroad, 76, 219. Richland County: 235. Rhode Island; 148, 164, 171. 220. Road and Bridge Tax: 238, 239. Rock Island County: 41. 99, 235. Rules for valuing capital stock: 90-93. St. Clair County: 23, 227, 236. St. Louis, Iron Mountain & Southern Ry.; 82, 222, 223. St. Paul, Minn.: 28. Saline County: 235. Sangamon County: 236. 243n. Savings banks: See Banks. Schedules: of personal property, 34; of railroad property, 7l. INDEX 2SS School Fund; 240, 245-246. School Taxes: 15, 238-239. S?huyler County: 227, 236. Scott County: 227, 236. Secretary of State : Fees, 112-113, 129-130, 139, 244. Seligman, E. R. A., on the taxation of corpora- tions: 174. Separation of State and local revenues: 8. Shareholders and Bondholders, taxation of: in Massachusetts, 179; in New York, 183. Shelby county: 41n, 236. Sheriff: county collector, 17. South Carolina: 151, 164, 169, 171, 220. South Dakota: 161, 166, 169, 171, 220. Special assessments: 6, 101. Special Franchises, taxation of ; in NewYork, 180. Special Funds: 141-144, 245-247. Special Taxes: 3, 4, S, 106-118. See also Inheritance Taxes and Insurance Cos. Springfield: 122. Stallion Registration Board, fees: 139-140. Stark County: 236. State Assessments: in Illinois, 68-75, 84-95; in other states, 170, 193. 195. State Assessors: 146-166. State Banks of Illinois: 2, 107, 243. State Board of Agriculture: 136-137, 141. State Board of Dental Examiners: 135, 141. State Board of Equalization: in Illinois: 4, 7, 13, 59-75, 84-95, 218, 224; in other states, 145-166. State Boards of Examiners: architects, 137-138; barbers, 140; horseshoers , 138; nurses, 139; public accountants, 139. State Board of Health: examination and license fees, 134-135, 141. expenditures, 249. State Board of Live Stock commissioners: 138. State Board of Mine Examiners: 137. State Board of Pharmacy: 136, 141. State Equalization: in Minnesota, 158-159; in Illinois, 59-66, 216-217. State Expenditures: 105, 248-249. State Fish Protection Fund: 143, 144. State Food Commissioner's Fund: 143-144; 246. State Game Protection Fund: 142-143, 144, 246. State Revenue Agent: Mississippi, 152. State Revenues: in other states, 172, 178, 182, 187, 192, 196, 199. See also Revenues of Illinois. State Tax Commissions: 8, 29, 66. 146-147, 149, 154-161. State Tax rate: 15, 98-99. State Taxation Officials: 145-166. State Taxes: amounts, 101-104, 238-244. percentages paid by each county 97, 228-237. State Treasurer: 114, 131, 240-242. Stephenson County: 236. Stock Transfer Tax: in New York, 183. Stocks and Bonds, taxation of: in Illinois, SO, 211, 214-215; on railway, in U. S., 220-221. See also Bonds and Stocks. TangiblePersonalProperty : 34, 38, 41-42, 210, 2 11. Tax Commissions: See State Tax Commissions. Tax Rates: 15, 16, 98-101, 114, 115. Tazewell County: 236. Teachers' Federation Case: 87. Tennessee: 154, 165, 169, 171,220. Texas: 153, 165, 169, 171, 220. Title guarantee companies, fees: 113. Tolls: on Illinois and Michigan Canal, 120-122. Town and City Lots, Assessment of: 21, 202, 205, 208-209. Town Assessors: 2, 8, 11. Town Collectors; 17. True Valuation of Property: 14, 25, 40, 100. Trust Companies, taxation of: in New York, 183. See Financial Corporations. Unconstitutional laws: 86. 124, 138, 142, 190. Undervaluations: 1, 9, 14, 25-27, 40, 46-49. Uniformity of Taxation : constitutional requirements. 2,3,5. Union County: 236. Unit plan of real property assessments: 28. United States Government : state revenue from, 243-244, 245. Urban and Rural Property: assessments of real property, compared, 26. Utah: 54, 162, 166, 169, 171, 221. Vermilion County: 236. Vermont: 147, 148, 164, 169, 171, 220. Veterinary practitioners, fees: 138. Virginia: 57, 151, 164, 169, 171, 220. Wabash County: 62, 237. Wabash River improvements: 128. Warren County: 237. Washington County: 227, 237. Washington: (State) 54, 77, 147, 163, 166, 169, 171, 221. Water Power: on Illinois and Michigan canal, 123. Wayne County: 237. West Virginia: 147, 151, 164, 169, 220. White County: 237. Whiteside County: 41n, 237. Will County: 26, 64, 237. Williamson County: 98, 237. Winnebago County: 237. Wisconsin: State tax commission, 29, 66, 147, 158, 166; exemptions, 42, 55; railroad taxation, 74, 195,221; inheritance tax, 117; taxation of corporations, 169, 171, 194-196. Woodford County: 99, -237. Wyoming: 146, 147,, 162, 166, 169 171, 221