31^ STATE REFORMS IN LOUISIANA, WHAT THE REPCBLICAN PARTY HAVE ACCOMPLISHED WHAT THEY STILL PROPOSE TO DO. Coi'i-esponclence bet-Nveen the Pi'opert.v Holdevs' ITiii«:>ri f)f N^*^\v Or-leans and. the Reiinblican Stfite CeiitT-al Committee. STATE REFORMS IN LOUISIANA. v;,^\ CORRESPONDENCE BETWEEN THE PROPERTY HOLDERS' UNION OF NEW ORLEANS AND THE REPUBLICAN STATE CENTRAL COMMITTEE. To the State Central Executive Committee, Re- publican Party of Louisiana: The uudereigned committee from the central council of the Property Holders' Union (if the city of New Orleans, b^g to solicit your o.-operation, and that of the people wboui you represent, in advocating such lejjislatiou as will bring relief to the tax-riddeu owners of real estate in New Orleans. Our organization is non-partisan in its character, and our object is to secure the asrtirttauce of the n-presentdtives of all poli- tical parties in the State to adopt means of reform which will relieve the real estate in- terest from its present alarming depression and impending ruin. We very respectfully submit for your consideration: 1. The limitation of the State tax to one- half of one per centum, and the city tax to one per centum, on the marketable cash valuation. 2. Revision of the assessment laws, so that there shall be but one assessment every live years; that the courts of the State, and not the assessors, shall 1)6 the final judges of the assessable value ot property. 3. To prohibit the loan of the credit of the State or city for any purpose whatever. 4 To reduce the salaries of the city and State officials, and the abolishment of un- necessary offices. 5 Relief of the delinquent taxpa\er8 and for p-rsons whose pr.'perty has been sold for i-ixes. 6. To allow the payment of taxes. State and city, by installments. C. H TEBAULT, M. D., Chairman Confert-uon Committee, Property Holders' Centra! Council. L J HIGBY. D. P. SCANLAN. JOHN HUGHES, J D. HILL. W. B. KOONTZ Rooms St.\te Cextral Executitk Comsiitiee, ) RepubUfan Party, .stivte of Louisiana, > New Orleans, November 26, lliTS. S At a meeting of the committee this day the following rcfolutioiis were adopted: Resolved, That the object announced in the communication received Irom the com- mittee of the C'-nrral Council of the Prop- erty Holders' Union meri s and commands our unqualified approval. Resolved, That priictically to assure that end the union is requested to submit to this committee, at the earliest date, drafts of bills tending to the relief proposed. Resolved, That this request finds especial force in the fact that the committee fails to discover by what method the proposed lim- itations to taxation can be made to sutfice the interest on the public debt and the maintenance of the schools, levees and i!;overnment of the State. S. B. PACKARD, President. A true copy: J. R G. Pitkin. Corresponding Secretary. New Orleans, November 30, 1875. C. H. Tebault, Chairman Conference Committee, Property Holders' Union: Sir — I have the honor to transmit inelosed the resolutions of the State Central Ex- ecutive Committee of the Republican party of Louisiana, in response to the communica- tion presented by the committee of which you are chairman. It has, at all times, been the desire of the Republican party in Louisiana to accom- plish the reforms rolerred to in your com- munication, in so far as possible and practi- cable and consistent with public credit and the eflicient collection of the revenue. The present Republican administration came into power pledged to eftect, as far as possible, the reduction of the public debt and the relief of the citizen from the burdens of which you complain. All un- prejudiced minds must admit that the pre^- ent administration has, der-pite opposnioQ, fultiiled the pi dges ot the party hv which it was elected. Ttie Legislature formerly had unlimited power ot taxation. A tax of twenty-one anil one-litlf mills bore on ah property in the State. Through the un- aided efl'orts of the Republican party and against the opposition of the Democrats a constitutinniil amendment now limits the lew ot State t^xes to fourteen and one-half mills for all Stiite purposes. The Legisliiture liad power to create a bonded debt to the extent of $25,000 000; it is now limited to $15,000,000. The Demo- crats, as a party, opposed the constitutional amendment by which this reform was ef- fected. The State was, at the commencement of the present administration, burdened with an interest-bearing debt of nearly $22,000,000 and a floating debt of nearly $3,000,000, be- sides a very large contingent debt. The floating debt has been reduced more than one-half; the bonded debt has been at this date redueed $5,000,000, and when the pro- visions of the tunding bill, fortified by a constitutional amendment recently adopted, STATE BEFOBMS IN LOUISIANA. are fully carried out, the interest paying debt will be reduced fr>m nearly $-22,000,000 to an amount considerablv within the con- stituiional limitation ot $15,000,000 The contingent debt has been extinguithed by the funding bill. Prior to 1873 the Legislature possessed unlimited power to make extravagant ap- propriations. There was practically no limit to expenditure in carrying on the State government. During the adminittra- tion ot Governor Kellogtf, oy the act of a Republican Legislature, the expenditure lor all purposes has been limited to the ac- tual revenue from taxation. At the fixed rate of fourteen and one-half mills, increased taxation and an ever increasing floating debt have been rendertid impossible by con stitutional enactment. Prior to the administration of Governor Kellogg, the annual expense of administer- ing the government, exclusive ot iinterest, schools and levee dues, exceeded $2,000,000. Economy has reduced the annual expense to leas than $1,000,000. The city of New Orleans, with a bonded debt of $23,000,000, and unlimited power to contract a floating debt, has by amendment to the constitution been prohibited from imposing any additional burden upon tho people. I "submit that the Republican party, dur- ing the present administration, has given earnest of its desire and intention to admin- ter the government with economy, and to fulfill its pledges. In accomplishing these reforms, has the Republican party in Louisiana had the aid and countenance of any of the citizens of the State outside of its own ranks? This ques- tion finds its answer in the history of the last three years; a history of unreasonable and acrimonious opposition t» all reform by that class which claims to be most heavily bur'iened by taxation. When a Republican Legislatiiie submitted to the vote of the people amendments to the constitution limiting taxation to four teen and one-half mills, restricting the debt of the State to fifteen millions, limiting the power of any Legislature to expenditures greater than the State revenue, an amend- ment providing for the reduction of the State debt from $22,000,000 to $15,000,000, taking from the government of the city of New Orleans, notorious for reckless and extravagant misgovernment, the power fur- ther to burden the property within its limits with debt, did the party receive any aid or countenance from its Democratic op- ponents? Democrats were invited to aid m all of these reforms, but their party mandates at once went foith commanding the rank and file of the Demo- cratic party to vote against all of the pro- posed reforms and constitutional amend- ments. The record of the last election de- monstrates that the command was obeyed. The reforms were efl'ected; the constitu- tional amendments were adopted by a strict Republican party vote. This, too, in a community so reckless of public and private credit that the cry of absolute repudition ot the public debt was popular with the Democrats. When the development of the resources of the State and speedy reduction of the public debt required unimpaired faith in the State government, the Demo- cratic party, through its counsels, commit- tees and press, joined in a deliberate and continued efiort to injure the credit and em- barrass the operation of the government in effecting these reforms. When reform demanded stable govern- ment, public men. claiming and asserting themselves good citizens and reformer?, ex- pended tbeir means and exerted their powerful personal influence to create sedi- tion, provoke slaughter and bloodshed, and send abroad the impression that the gov- ernment of Mexico is more stable than the government of Louisiana, and that neither property nor life was secure within our biiundaries. They turned emigration from our borders, frightened capital from our midst, injured our reputation as a State, and drove our trade into other channels and to other ports. The Republican party in Louisiana does not underrate the obstacles and barriers which the Democratic party has placed in its pathway to reform and retrenchment; neither does it underestimate th** opposition which it must encounter at Democratic hands in the future, and will gladly wel- come and acknowledge all honest counte- nance and aid in the accomplishment of its purpose further to reduce the debt of the State and decrease the expense of its gov- ernment. Permanent good government can only re- sult irom a condition of public opinion favorable to peace and good order. Economy in the administration of government will follow when all men and all parties shall demand it, and shall cease to discourage re- form because that reform is suggested ot attempted by an adverse party. This condition does not seem to exist in the State at the present time. Your com- mittee can find proof and illustration within its own organization. A member of your union was a candidate for Administrator at the last municipal election. He publicly announced that if elected he would serve without pay. No one doubted his fitness or competency for the position. He was a large property holder, who brought from the West and expended a fortune in an en- deavor to extend the trade and commerce of the city. The grain elevator is the mon- ument of his enterprise and public spirit. Had the voters in the city really desired economy he would have been unanimously elected. Yet he was not elected, though he received the 14,000 Republican votes oast in the city. Not a Democratic vote was cast in favor of this property holder, pledged to serve without salary. His opponent, the Democratic nominee, received the party vote, was elected, and draws his salary. It aypears that missionary labor is required in this city before a majority of the voters are ripe for reform. Public sentiment must be educated fo forego its preference for indiscriminate abuse of party organization and the slan- der of individuals, and to reserve denuncia- tion for wrong-doers. Reform wil I then be speedy and efiectual. STATE EEFOBMS IN LOUISIANA. The public was informed by tbe Demo- cratic press and leaders that economy and retrenchment would f. How a Democratic majority in the present House of Repre- sentatives. The result was extravagance. An extra session of ten days was called last April to adjust our political diflfe!- ences, and thus gave a Democratic House an opportunity to exhibit its intention and capacity for reform. Examine the record of that session. The House of Representa- tives originated and passed an appropria- tion bill expeuding $117,000 of the public money as the expense of that same ten days' session, and with eccentric patriotism and disinterestedness it was provided by tbe same act that this large sum should be paid in preference to theclaims of older creditors. Our community is not possessed of a sur- plus of capita), and for purposes of trade now, and for some time to come, must rely largely on private credit for the operation of commerce. Impair public credit and private credit at once feels the shook; trade is crippled and curtailed. The financial history of this State is not consoling; public sentiment has been neither consistent nor discriminating. The ante- bellum bonded debt exceeded ten millions. The Democratic Legislature charged with the couduct of the attairs of the State, from the close of the late war until reconstruc- tion, increased the bonded debt to over $14,000,000, and appropriated $13,000,000 in excess of even the estimated revenues of State. The immediate predecessor of Gov- ernor Kellogg found the State with a dim inisbed assessment roll and undiminished expense — likewise this legacy of debt out- standing. During that administration the bonded debt increased to nearly $22,000,000. This administration was, in the opin- ion of the Republican party, extravar gant. As a party it sought to remove hiui from power as au enemy both of the party and of the State. As soon as he was cast forth by the Republicans he fled to the camp of the opposition and became their leader. Not only were his misdemeanors and extravagances condoned, not only did he receive votes from Democratic and so- called Reform legislators for a seat -n the federal Senate, but the popular vote cast lor McEnery was to the practical end of continuing the very policy which for three years the Democracy had denounced. Gov- ernor Kellogg, without aid outside of hia party, has demonstrated the possibility of reducing the bonded debt to the limit reached at the date of reconstruction. This reduction is to-day in rapid progress, and will soon be accomplished, although the tax levy has been reduced from twenty-one and one-half to fourteen and one-halt mills. When men who claim to be reformers and model citizens shall cease to menace the public peace, to aid and encourage irre- sponsible armed constituents publicly to boast that they have organizea and com manded armed bodies of reckless men, who at their beck can and will deluge anew the State with blood; when the po- litical opinion of a Republican shall not be deemed adequate provocation for mur- der and violence: when men who claim identification with tbe business and cap- ital in our liuiits shall cease to justify the impression abroad, that as a commu- nity we care nothing for good government, public credit or freedom from domestic violence; when the immigrant, despite the too prevaleu''. terror which, outside of the State, attaches to our climate brings into our midrtt and adds to our material wealth; his capital, his enterprise and the strength of his righi arm shall cease to be met at our borders with opprobrious epithets and be biiven otF by menaces, a material apprecia- tion of values, an exiiansion of commerce, a steadfast confidence, and none bur the wholesome rivalries that should animate a people living in Christian amity, are certain to be realized by Louisiana. You will doubt- less share with me in the persua^iion that nothing can be so honorable in a man who enjoys the protection of the laws as to for- get the complexion of a fellow-citizen in the title which he as fully holds to that protection. The Central Executive Committee has re- quested your organization to submit the drafts ot bills embodying in a practical form your plan of retrenchment. Reduction of taxation below the present rate of ourteen and one-half mills can be attained, first, by an increased taxable value of property in the State. The grand total of assessable taxpaying property can be increased by a much needed reform in the manner of arriving at its val- uation. Under the present laws there is an entire independence of all central authority on the part of parish assessment boards of equal- ization, which consist each of the sheriff, clerk of court and recorder. Parishes may and do avoid a fair share of the burdens of Stite taxation by the imperfect method of valuation of the property returned to the State. Lands and personal property in some parishes are returned at their full value, while in others they are returned at less than oue-half. Could a remedy be had for this it would be found that a larger amount of assessable property would be re- turned. Other States have provided State boards of equalization, with power over the local boards. Should a State board of this kind be created it should consist of experts, and it should be made their duty to examine the valuation of the property ot each parish as fixed by the local boards, once in five years visiting the parishes for that purpose. Valuations, when once so examined and approved by the State board should remain for five years without alteration, with pow- er in the local boards to correct each year in case of destruction or improvement or of change of ownership. It is further suggested whether property belonging to religious and other associations, not dedicated to or used for strictly church or educational purposes, and from which rents and revenues are received, should not be taxed as other property. There is in this city alone property of the value of several millions exempted from taxation, yet in no manner used for church or educa- tional purposes. STATE EJEFOBMS IN LOUISIANA. Secondly — Ther«^ must be increa-ed eeon- omy in the adniiuifltrntioii of all brauches and departments of the Stare ^''^eriiineDt While, as 1 Lave indicated, the exp(Mir*e i)f goyerniuent has be< n reduced to om -tialf of its former limit, still further reductions and economy are pi'ssibl^'. The present s.vstem of assesHtuent and collection is too exp>-usive. The remedy lies in legislation. It is sn.gested that the law be S'l changed as to provide thao iu the city of New Orleans, insiend of seven Stat" assessors with largw salaricF, one assessiir, with a salriry say of $5000, and with such clerical force as may be necessary; also as- sistant assessors — one for each assesi^ment district — *o be paid for the time actually engatied in listing property. A limit of compensation to be fixed. Also to provide a board of equalization in the city of New Orleans of five, consisting say of the AudiJor and Treasurer of the State, the Mayor of the city and one administrator — say of as- sessments — and one exiiert in real estate, to be appointed by the Governor, and to be paid for the time while actually employed. This board to have the power usually given to such boards to hear and decide all com- plaints and pppeals from the assessors' valuation, during say thiity dajs'exiiosure of the assessment rolls. A copy of this as- sessDjent roll might be used Oy the city, in which case rhe department of assessments could be abolished. The cost of assessment. by this plan would tot exceed one-fourth the present cost. The expense of collecting the State taxes can be materially reduced hy proper legis- lation. As to taxes payable in the city of New Orleans, the assessment roll can be placed in the hands of the State Auditor, who, upon applicaiion of the taxpayer, will furnish a certificate of amount due, this certificate to be presented to the State Treasurer and the money paid directly into the treasury. A slight increase of the pres- ent clerical force in the Auditor's and Treasurer's offices will enable them to dis- charge this ailditional duty. This will save to the State the present exorbitant commis- sions paid 'o the collectors. In all the par- ishes, except the parish of Orleans, the peicentage comminKion for assessing and collecting Slate and parish taxes to be so rated as not to yield a greater oorapeiisa- tioii to the collector than $3000 per annum, and for the necessary clerk hire. This letter suggests a few reforms which, . if carried into effect, will greatly reduce the expenses of the State government. By proper legislation and economy in the ad- ministration of the iruuDoipal ofSces, the expense of carr\ir)gon the city government can 1)6 greatly reduced. I submit, then, re- store order and confidence and you quicken investments in our productive lands and build up with our labor the waste places of the Start ; then the increased value of the taxable property in five years, with the pro- posed one half of one per cent maximum taxati* u for State purposes, and wiih an even system of equitable assessment throughout our borders, will yield a suffi- cient revenue to provide for the payment of the interest and principal at maturity of the public debt, maintain the levees, con- tinue and strengthen the public schools, and, in fine, provide the means lor supporting the State government in ail its functions. Iq conclusion, I have to remark that the CO operation for which you ask an the hands of the Republican State Central Committee in behalf of the taxpayer, will, I am per- suaded^ be readily accorded by those with whom 1 am associated, and it is my hearty hope that a temper may be exhibited by the Democrats iu our Legislature as high- minded as is the Property Holders' Uuioa which you announce to be ''nou-partisau" in its character. Very respectfully your obedient servant. S. B. PACKARD, President State Central Committee. LIBRARY OF CONGRESS 014 544 752 5 f^* LIBRARY OF CONGRESS 014 544 752 5