TAXATION IN ILLINOIS. 
 
 
 From the Commission Appointed to Kevise the 
 Revenue Laws of the State, 
 
 By CPIARLES S. WALLER'1 
 
 OF CHICAGO, 
 
 A MEMBER OF THE COMMISSION. 
 
 Published by the Revenue PvEeorm Leahue of Cook County in order that it mat be presented 
 TO tan-payers at the same time with the Majority Report of the Revenue 
 Commission, the Secretary of State not deeming that 
 HE HAD authority TO PUBLISH A MINORITY 
 Report at the expense of 
 THE State. 
 
 February, 188G. 
 
 PRINTED BY THP. CHICAGO LEGAL NEWS CO., 
 
 175 MONROE ST. 
 
A MINORITY REPORT FROM THE REVENUE COMMISSION. 
 
 To THE Honorable Thirty-fifth General AssexMbly of the State op Illinois : 
 The undersigned, a member of the Revenue Commission created by a joint resolution oftheThir- 
 ty-fourth General Assembly of the State of Illinois, not agreeing in some essential particulars 
 with the majority of said commission, and in view of the fact that its entire work is suggestive 
 and recommendatory only, respectfully submits to your honorable body the following minority 
 report: 
 
 The joint resolution under which said Commission was constituted and appointed states as 
 follows : 
 
 Whereas, the revenue laws of the State of Illinois have become wholly inadequate to 
 guarantee equal and just taxation upon all the property of the State as required by the Consti- 
 tution, as the decrease of the assessed value of property, year after year, will show,” and 
 '^'‘Whereas, great complaints are coming from the people that real estate is bearing its undue 
 proportion of taxation, while other property and great interests, largely enjoying the protec- 
 % tion of State and Municipal government, unjustly escape their share ipf the burdens of such 
 Government, and whereas, the many attempts during the sessions of the General Assembly to 
 j amend and revise the revenue la\ys of the State as to secure a just assessment and collection of 
 taxes, have signally failed, therefore be it 
 
 ^^Resolved, hy the House of Representatives of the State of Illinois, the Senate conciirring 
 therein, that the Governor is hereby authorized and directed to appoint a committee of twelve 
 men, an equal number of which shall be of the two leading parties of the State, with authority 
 to propose and frame a revenue code, which in their opinion and best judgment shall be of 
 practical execution, and shall be iust to all classes of property, etc.” 
 
 The reasons given for the appointment of said Commission are explicitly stated, and the 
 work clearly pointed out which they were expected to do, to wit, ” to propose and frame a rev- 
 (' enue code,” which “ shall be to classes of property,” and ‘ ‘ guarantee eoual and just 
 taxation upon aZ? the property of the State as required by the Constitution.” The evils com- 
 plained of being undeniably true, and the work we were commissioned to do being so clearly 
 stated, the undersigned at an early stage in the proceedings of the Commission, •submitted the 
 following paper, which was printed and laid upon the desks of its members: 
 
 ” irz^ereas, the Constitution of the State of Illinois requires that “the General Assembly 
 shall provide 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; ” and 
 
 Whereas, the present revenue law of this State, made in conformity to said Constitution, 
 requires, in levying such tax, that both real and personal property “ shall be valued at its fair 
 cash val ue diTidi 
 
 Whereas, a wide and steadily increasing departure from this standard of exactness and im- 
 partiality has caused great inequality and injustice in the levying of such tax, and has given rise 
 to a system which is pernicious and unjust in the extreme, letting off certain favored individuals 
 and kinds or classes of property, (at the discretion of the assessors) with a mere nominal taxa- 
 tion, and iniposit g the great burden of supplying the necessary revenue upon the rest. In 
 proof of this, while with a large portion of tax-payers, especially such as own their homes and 
 hut little more, there has been but little diminution, if any, of their annual taxes from 1873 to 
 1883, the reports of the State Auditor show that the assessed value of the entire property of the 
 State in 1873 was ^1,210,108,863 and in 1883 it was $756,432,291, a falling off of $453,686,572. 
 Not that the State, durjng this decade, was receding in population and wealth, but because 
 the assessors were departing farther and farther, year by year, from the just standard of fair 
 and equal taxation fixed by the Constitution, and the revenue laws conforming thereto; and 
 IFAereas, this Commission was created for the purpose of devising a remedy for this ac- 
 knowledged and growing evil, and as it is apparent that the practice of a gross and unchecked 
 departure from the standard fixed by law (leaving to the assessors almost unlimited discretion- 
 ary control) has caused and fostered the evils complained of; therefore. 
 
 Resolved, that the proper work of this Commission will be, to make no compromise with 
 evil and thus perpetuate it, but go back to the plain and equitable requirements of the Consti- 
 tution, frame a revenue code in strict compliance therewith, and throw such restrictions and 
 penalties around it as safeguards, as will compel obedience, fix a maximum limit of taxation, 
 not exceeding _ one per cent, on a fair cash valuation of property, to cover all annual taxes of 
 every description whatever, in full. Provide that no class or description of property, and no 
 ownership of moneyed value of any sort (except that exempted by law) shall be favored or 
 omitted, but that all shall be brought to the light and made to bear its fair and just propor- 
 tion of the expenses of government for the protection it receives; and lastly, adjust and define 
 clearly the rate per cent, of permitted indebtedness under the limitation of the Constitution, so 
 as to be proportioned to the standard of valuation adopted, and thus protect with certainty the 
 people from both extravagance and indebtedness, whether in the State, county or municipality. 
 Equality and uniformity are the underlying principles of our revenue system, as prescribed 
 
 (3) 
 
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4 
 
 by our State Constitution. To establish and maintain these there must be a fixed standard of 
 measurement and adjustment, so that exact and e'/en-handed justice may be done to all.- Any 
 permitted departure from this leads inevitably to inequality and injustice. The necessary ex- 
 penses of the Government must be met, and if favoritism toward particular classes of property 
 and of tax-payers be permitted, there must be a corresponding, and to this extent unequal, in- 
 crease of the burden upon the remaining property and tax-payers to make up the difference. It 
 is a short-sighted policy on the part of men and corporations of great wealth, some of whom enjoy 
 very favored privileges, and all of whom need especial protection, to evade the payment of their 
 fair share of the expenses of government; they are more liable to need the strong arm of govern- 
 ment protection than their poorer neighbors, and unless they are willing to be just to others it natu- 
 rally follows that such action will weaken their claim for justice to themselves. Most men pay even 
 high taxes cheerfully, if convinced that the burden is fairly and equally distributed in propor- 
 tion to the actual wealth of each tax-payer, but a knowledge that favoritism is being shown, es- 
 pecially toward those who are abundantly able to pay their just share of taxes, brings a sense of 
 inequality and injustice which breeds irritation and discontent. Our Constitution requires that 
 the revenue shall be provided “ by levying a tax by valuation, * * * such to be ascer- 
 tained ” as therein directed; it does not say a of the value, but the “ value," meaning cer- 
 tainly the actual and entire worth. Our present revenue laws were passed in conformity with 
 this view of the meaning of the Constitution, but the willful and gross departure from the stan- 
 dard thus fixed has certainly caused the inequalities of our present system. The cause of this 
 departure and the reason why public sentiment for a time tacitly sustained it, is that there has 
 not been created by law a sufficient barrier against exorbitant and oppressive taxation, and men 
 of all classes have naturally shrunk from a full showing and valuation of their property, for fear 
 of the rate per cent, that might be levied upon it, amounting finally, if unchecked, to virtual 
 confiscation. The tendency of the times is toward great extravagance and corruption in official 
 places, necessitating a continual increase of taxation, and this growing evil, if not effectually 
 bridled and kept under secure and healthy restraint, will surely result in making our Govern- 
 ment a curse instead of a blessing. 
 
 Holding these views honestly and firmly, the undersigned submitted to the Commission a 
 resolution (which should be observed in formulating the new code), and asked the passage 
 thereof, in substance as follows: 
 
 “ Resolved, that both real and persontil property in this State shall be assessed on the basis 
 of its/«b- cash value, and that this Commission in adjusting the maximum limitations of taxa- 
 tion to cover the several needs and purposes for which revenue is required, will confine the 
 aggregate of said limitations to a general maximum limitation of one per cent, for all purposes 
 whatsoever, so that the entire tax levy for any one year shall not exceed said general maximum 
 limitation: Provided, that incases of emergency and actual need, any county, city, township, 
 village, or tax district in this State, by an affirmative vote of a majority of its voting population, 
 may increase *said maximum rate of taxation for local purposes within such county, city, town- 
 ship, village or tax district so voting, to an ^iggregate amount not exceeding one and one half 
 ;per cent, on the valuation of property for the current year; but such affirmative vote shall not 
 increase the maximum rate of taxation therein for any year beyond that in which said vote 
 shall be taken,” 
 
 After a full discussion of this resolution, the vote on its adoption was a tie — 6 for and 6 
 against; it was thus defeated. 
 
 The Commission afterward adopted so much of this resolution as applies to the standard of 
 valuation, and also to a temporary increase of the rate per cent, of taxation in cases of actual 
 need when asked for by a majority vote of the people. (See Sec. — of the proposed new code.) 
 But instead of limiting the rate of permitted increase to the half of one per cent., as sug- 
 gested in the above resolution, the margin was widened as it now stands to ** 100 per cent, of 
 the respective rates provided by this act,” thus taking away a large share of the protection to 
 tax-payers which the section on this point was originally intended to give. The vital and lead- 
 ing principle contained in said resolution, to wit, that under a full valuation of property, the 
 entire taxes thereon should not exceed an aggregate of one per cent., was not carried out; and 
 here, in my judgment, is a fatal defect in the proposed new revenue code as adopted by a majority 
 of the Commission. That, one per cent, on a fair cash valuation of property (if all the property 
 of the State is fully brought out and thus valued,) will not only supply all the revenue needed, but 
 leave a safe margin to cover ordinary contingencies, is undoubtedly true. A number of the best 
 informed men in the State on the tax question, having thorough practical knowledge concerning 
 it, appeared before the Commission and made full statements as to their experience and observation 
 of the actual working of our present degenerate, and notoriously corrupt revenue system. These 
 gentlemen, with remarkable unanimity, concurred in the opinion, that for purposes of taxation, 
 the equalized valuation of lots and lauds in the State with the improvements thereon, does not ex- 
 ceed an average of twenty -seven per cent, of their “ fair cash value,” and as to personal prop- 
 erty, the great bulk of which escapes taxation entirely, and the remainder is so cheaply valued 
 as to be only the shadow of a pretense of compliance with the law, these gentlemen were decid- 
 edly of the opinion that not more than^re per cent, of the whole and true value thereof is sub- 
 jected to a percentage estimate for taxation. In Cook county it is believed that not more 
 than three per cent, of the true quantity and actual value of personal property is subjected 
 to the tax rates; indeed one of the best informed men in Chicago on this subject, having inti- 
 mate practical knowledge thereof, when questioned before the Commission on this point, stated 
 that in his opinion the per cent, was not so much as this. Let any lot or land owner (not special- 
 
fy favored by bis assessor) look into the taxes which he is now paying upon his real estate, and 
 he will find that upon its actual cash value he is paying fully one per cent., and in some cases 
 considerably more than this, whereas, upon a fair distribution of the necessary burden of taxa- 
 tion under our Constitution, he should not pay more than about half the tax which he is now 
 paying. This justice being done to real estate will of course enhance its desirability and value. 
 I think that this position is abundantly verified and sustained as follows: 
 
 If the estimate of real estate in Cook county for the year 1884, at 27 per cent, 
 of its“ fair cash value, amounted to $133,741,530.00. then its full and fair 
 
 cash value was • ••S 495,338,900.00 
 
 And the equalized value of railroad property in said county, set down for said 
 year at $9,254,321.00, if brought to a fair cash valuation by the same 
 
 rule, was. $ 34,275,26.3.00 
 
 And if the estimate of personal property in said county for said year, being only 
 $32,813,135.00, was only three percent, of what it should have been, then a 
 full listing and fair valuation thereof would have amounted to $1,093,771,166.00 
 
 making - $1,623,38.5,329.00' 
 
 A tax on this sum limited to one per cent, would give $16,233,853, being $6,653,035, more 
 than the whole taxes assessed in Cook county for 1884 (to wit, $9,580,818). And six tenths of 
 one per cent, on the total of $1,623,385,329.00, would have siven' $9,740,311.00, being $159,- 
 493.00, more than the taxes of said county in said year, on an aggregated levy of nearly six per 
 cent, oh the property found and as valued for taxation. 
 
 The fair cash value of the taxable property in the State of Illinois, (exclusive 
 of Cook County) from the best data which the Commission obtained is not 
 
 less than $3,600,000,000.00 
 
 Add estimate for Cook County as above 1,623,385,329.00 
 
 Shows the probable total wealth of the State of Illinois to be $5,223,385,329.00 
 
 The average rate of taxation on the $100 valuation of property, in the several counties of 
 the State, for the year 1883, as shown by the Auditor of Public Accounts in his last report dated 
 November 1, 1884, was $3.43, Cook county, being reported at $5.29, which was increased in 
 1884. Now if six tenths of one per cent, (or 60 cents on the $100) would have been more than 
 sufficient for Cook county in 1884, on a full and fair val lation of property as I have shown, fifty 
 cents on the $100, would have been more than a sufficient average for the balance of the State, 
 showing beyond controversy, that a maximum limitation to one^ per cent, of the entire tax- 
 ation leaves an abundant margin to cover all ordinary contingencies. 
 
 Again, in the biennial report of the State Auditor, made November 1, 1884, pages 92 and 
 93, it will be seen that the whole amount of State, county, city, town, district, and other 
 local taxes, including back taxes throughout the State for the year 1883, was $28,063,040, of 
 which Cook county paid $9,078,003, nearly one third. One j)er cent, on $5,000,000,000, if the 
 proposed new revenue law is faithfully administered, would give $50,000,000 of revenue against 
 $28,000,000, as in 1883. Can any one believe that this margin is not broad enough to insure 
 sufficient revenue? 
 
 The Commission spent much time in patient, earnest effort to devise a code that would com- 
 pel the bringing out, and subjection to a fair cash valuation of all the property in the State, both 
 real and personal, except that exempted by law. This part of the proposed new code the under- 
 signed heartily approves, but the maximum limitations as to the permitted rates of taxation, 
 aggregating as th'y do nearly or quite three per cent., will open the door to such excessive and 
 njerciless taxation, as will compel the people, in self -protection, to elect assessors who will shield 
 them by low valuations and an utter disregard of the law, as is the case now, and thus the pro- 
 posed new code will soon drop back into the same demoralizing rut of falsehood, official bribery, 
 and glaring inequality which we are trying to escape from. The present system (not the law, 
 but the prevailing practice and departure from it) being in effect a standing premium for dis- 
 honesty. I am firmly convinced that the evils in our present system (to devise a remedy for 
 which the Revenue Commission was appointed) can not be cured, unless the aggregate of the 
 rates per cent, of taxation, shall be so restricted by a settled maximum limitation as will secure 
 to the x>^ople undoubted protection from unnecessary and oppressive taxation. This point 
 touches the interest of every tax-payer in the State, and here is the pith and marrow of the ques- 
 tion we were called together to consider. It must be apparent to every one, that equality and 
 uniformity in taxation can not be reached or maintained, unless there is a fixed standard of 
 measurement which shall be strictly conformed to in all cases. A certain amount of revenue is 
 necessary for the support of government; beyond this necessary amount, the governing authori- 
 ties should be restrained from going, by a fixed maximum limitation, sufficiently liberal for all 
 needful purposes, and yet sufficiently low to insure just protection to every tax-payer, 1 think 
 that I have demonstrated that an. aggregate tax of one per cent, for all purposes whatsoever, on 
 a full valuation, (all property of every kind bearing its fair proportionate share ) is super- 
 abundant to cover all the needs of government in this State. Without such a system, personal 
 property will continue to escape its just share of the burden of taxation; while real estate, being 
 always in sight, easily found by even the most indolent assessor, and powerless under coercion, 
 will continue to bear, as it now does with manifest injustice, the great bulk of this annual bur- 
 den.^ If the maximum limitations should be put down to such a point as to compel the search- 
 ing for, and bringing out of all classes of property, in order to obtain the necessary revenue, 
 
.‘Incl thus necessitate a tali* compliance with the supreme law of the State, which requires that 
 “every person and corporation shall pay a tax in proportion to the value of his, her or its 
 property,” then, and not till then, will the evils of inequality and unjust taxation be effectually 
 and justly remedied. It must be plain to every one, that a fair, complete, and thorough dis- 
 tribution of the burden, will greatly lessen its weight from the shoulders of those who are now 
 bearing it, and this being done, a wide-spread satisfaction, growing out of a sense of equal and 
 exact justice to all, will unquestionably produce a strong and healthy public sentiment, that will 
 do more than all else to cause a uniform enforcement of the law. It is not only an unjust, but 
 an unwise policy, to discourage men by an unequal and oppressive taxation, from owning their 
 hom^s, whether in town or country; the very fact of owning his home makes a man conserva- 
 tive, the more owners therefore of the soil, the stronger and more law-abiding will be the city 
 or the State, and the most potent and salutary^ check which can be given to the growing spirit 
 of communism, is to encourage such ownership. 
 
 Honesty is the best policy and Truth is the only safe foundation on which to base a system 
 of solid integrity and reliability, commanding a just and sincere respect both at home and 
 abroad. _ How much better it would be for our young giant State, instead of publishing to the 
 world biennially, that we are worth hut seven hundred and odd millions, and this decreasing , 
 while our taxes are from three to six per cent, and increasing (see State Auditor’s Reports), 
 how much better to come up honestly to the fair line of truth and proclaim (when verified) Illi- 
 nois is worth and the aggregated taxes for all purposes, are less than one 
 
 percent. What an argument in our favor! 
 
 J therefore submit^ to your honorable body for earnest consideration, the vital importance of 
 limiting the entire levies of taxation for any one year, to an aggregate of not exceeding one per 
 cent on a full and fair valuation and general assessment of all classes of property. My chief 
 reason for making this minority report is to present this point strongly before you, and to ear- 
 nestly commend it to your careful consideration. It is, in my judgment, the key to the whole 
 difficulty; absolutely indispensable to maintaining with any degree of uniformity, the standard 
 of valuation adopted. I do not believe that the proposed new code will work any better than tkc- 
 old law, unless it has this important provision for the protection of tax-payers; the absenc'e of 
 which in the present revenue law, as I have attempted to show, is one of: the chief causes which 
 have led to the great inequalities in valuation, and deep injustice in assessments, which now ex- 
 ist and which it is so desirable to reinedy. 
 
 THE RAILROAD SECTIONS. 
 
 The sections in the proposed new code in regard to railroads, under which an assumed val- 
 uation is reached, limit absolutely and undeniably the entire tax of every sort that can be placed 
 on this assumed valuation to cewA Can it possibly be maintained as just and fair, to" 
 
 give this protection to these wealthy and powerful corporations, and deny it to the people gen- 
 erally? I would give this. protection to all — treat all alike, following the Constitution faith- 
 fully, and requiring “ that every person and corporation shall pay a tax in proportion to the 
 value of his, her or its property; ” exactly this and nothing^ more. 
 
 These railroad sections in the proposed new code are, it seems to me, very objectionable. 
 To my mind they are unconstitutional. Being, however, only a layman, I shall simply point to 
 the plain letter of the instrument itsolf, which I think any practical, common-sense man can 
 read and properly understand. Article 9, section 1 o'"' the Constitution reads as follows: “ The 
 u-eneral Assembly shall provide 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.” The railroad sections in 
 the new code ignore entirely the requirement that “ such value shall be ascertained by some 
 person or persons to be elected or appointed in such manner as the General Assembly shall di- 
 rect.” In lieu of this, an assumed value is reached by multiplying the “ gross receipts of one 
 year by five to get a valuation, and then by dividing such valuation by five in order to get at a 
 rate per cent, of taxation. Or, which is the same thing, the jDroposed sections place the per- 
 centage of taxation on one year of *' gross receipts,” which is on one fifth of the assumed valua- 
 tion, and thus the Constitution is supposed to be complied with. To multiply a given sum by 
 five, and then to divide the result by five, it seems to me accomplishes nothing, although it is 
 the process in this case which is relied upon, I believe, to meet and satisfy the constitutional re- 
 quirement that taxation shall be by valuation. The returns of “ gross receipts ” are to be made 
 by the railroad officials, and upon these returns the assumed value is to be reached, instead of 
 being “ ascertained by some person or persons to be elected or appointed in such manner as the 
 General Assembly shall direct.” It was conceded by the friends of these sections, (members of 
 the Commission), that a multiplication of the “ gross receipts” of one year by five, would not 
 give a full valuation of railroad property (well informed men say that by eight would be nearer 
 the mark), the new code as presented to you by the majority, does propose, however, and con- 
 tains stringent clauses for its enforcement, that the property of the people generally, shall be 
 assessed at a full valuation. 
 
 The sixth section of the 9th article of the Constitution reads as follows: “ The General As- 
 sembly shall 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 purposes, nor shall commutation tos smch taxes oe authorized 
 in any form whatsoever.'' 
 
7 
 
 The leading argument of the friends of these sections was, that it would relieve the general 
 public from all taxation for State purposes. I do not believe that it will, or that as much rev- 
 enue will be derived from railroads as under the present law, but are not these sections, under 
 the purpose for which they are proposed to be enacted, in conflict with that part of the Consti- 
 tution quoted above? 
 
 Again, article 9, section 10 (in part), reads as follows : “The General Assembly * * * shall 
 require that all the taxable property within the limits of municipal corporations, shall be taxed 
 for the payment of debts contracted under the authority of law. such taxes to be uniform in he- 
 spect to persons and property, within the jurisdiction of the body imposing the same.’' ’ By the 
 proposed sections in the new code, to which I am referring, the railroad companies are required 
 to pay a tax of not exceeding one per cent, on a partial valuation of their property, and by a 
 clause in the first of said sections, said railroad companies are exempted in this State from all 
 other taxation whatever. Said clause reads as follows (referring to the “gross receipts” of 
 the past year as reported to the State Board of Tax Commissioners); “The Board shall multi- 
 ply the whole amount of such receipts for the year by five and the product shall be deemed to be 
 the taxable value of all the franchises and privileges legally exercised by such person or corpora- 
 tion in the State, and of all the propet'ty of such person, or corporation, necessary for and used 
 ih the prosecution of his or its said business in this State. And such fi-anchisf^s, privileges 4nd 
 property shall not be taxed in any manner or for any other purpose, except as herein provided.” 
 Every cent of the taxes thus provided for, is to go into the State Treasury, for State purp^'ses. 
 And no matter how great the value of the property of such corporations may be in certain lo- 
 cjilities, as in Chicago for instance, where th j value of the aggregated property of the various rail- 
 roads runs high up into the millions, yet by the heretofore elastic interpretation of the word 
 “necessary,” which it would seem is to be continued, probably ninety-five one hundredths 
 (95-100) of this vast accumulation of valuable city property, is to be exempted from all taxation 
 for local purpov’s, or ^\for the payment o/(niun clpal) debts contracted under the authority of 
 law," notwithstin ling the plain provision in Sec. 10, article 9, of theCon stitution quoted above. 
 
 Several of tne large eastern railroads own millions of dollars worth of valuable property in 
 the city of Chicago, and yet they run out of the St.ite in ten or fifteen miles. And with fknne 
 of our large western railroads that will aggregate, including all their branches and t-‘rniinal 
 points, probably four or five thousand miles in extent (these also own vast amounts of valuable 
 property in Chicago), and yet run out of the State in twenty or thirty miles. But overlooking 
 this, or passing it by as of no consequence, the new code proposes to aggregate the entire line 
 with all its branches and terminals, and (quoting therefrom) “ divide the total gross receipts 
 of the whole line by the number of miles of the whole line, and multiply the quotient by, the 
 number of miles of such line situated in Illinois, and the product shall be the gross receipts of 
 such person or corporation, for purposes of taxation in pursuance of this act.” 
 
 A glance at this brief summary shows that such a tax arrangement will be exceedingly unjust 
 to Chicago, And when we consider that every mile of the most remote branch of one of these 
 western railroads, where the business probably justifies but two trips a week with one car. and 
 an old locomotive, is evened up mile for mile and the “gross receipts” or earnings equally 
 divided between such, and the great trunk lities running out from Chicago, with forty or more 
 trains per day passing over them, such division, it seems to me, is palpably unjust to the State of 
 Illinois. 
 
 ' The Revenue Commission at first revised the present revenue law ; and changed, amended 
 and adopted a series of sections concerning railroads which remained for some time without 
 change. The sections now proposed in the new code, as adopted by the majority, were at a late 
 day substituted for the entire sections concerning railroads in the present law as amended by the 
 Commission. The vote upon the motion thus to substitute,^ stood at first a tie, 6 tor and 6 
 against. At a subsequent meeting, one member changed sides and the proposition was thus 
 carried? to 5, the five remaining unchangecj’ and opposed to such substitution to the end of the 
 se^ion. I herewith submit these amendments to the present revenue law of the State, concern- 
 ing railroads (to wit; sections 40 to 52 inclusive. Auditor’s Edition), as prepared and adopted 
 by the Revenue Commission in the early part of its work as above explained, and propose them 
 to your honorable body in lieu of the several sections concerning the taxing of railroads after- 
 ward substituted, and which will be submitted by the majority of the Commission. 
 
 Being required by the joint resolution under which the commission was appointed, to report 
 to the Secretary of State on or before the 1st of March, 1886, I have not time to see th6 final 
 compilation of the new code as prepared by the majority of the Commission, and can not there- 
 fore refer to the several sections by the numbers which will finally be assigned to each, and es 
 they will stand as presented to you. Neither have I seen the address which will accompany the 
 report of the majority. 
 
 Following are the proposed amendments to the present railroad revenue law, referred to 
 above, and which I o.ffer for the consideration of your honorable body, in lieu of those adopted 
 by the majority of the Commission ; 
 
 That section 41 be so amended as to read as follows ; 
 
 They shall, in the month of May, in each year, make out and file with the county clerks of 
 the respective counties in which the railroad may be located, a statement or schedule showing 
 the property held for right of way, and the length of. the main and all side and second tracks 
 and turnouts in such county, and in each city, town and village in the county, through or into 
 which the road may run, and describing each tract of land through which the road may run, in 
 accordance with the United States surveys, giving the exact location, width and length of the 
 
8 
 
 strip of land held in each tract, and the number of acres thereof. They shall also state the value 
 of buildings and structures located on the right of way; and shall at the same time file with said 
 clerk an accurate plat of the land embraced in such right of way. New companies shall make 
 such statement in May next after the location of their roa.ds. The company shall, during the 
 month of May, annually, report the value of such property by the description set forth in the 
 next section of this act, and note all additions or changes in such right of way as shall have oc- 
 curred. 
 
 That section 42 be so amended so as to read as foil ows : _ 
 
 Such right of way, not exceeding one hundred feet in width, including the superstructure of 
 main and side or second tracks and turnouts, but excluding all buildings and other improve- 
 ments, shall be held to be real estate for the purpose of taxation^ and denominated “ railroad 
 track,” and shall be so listed and valued; and shall be described in the assessment thereof as a 
 strip of land extending on each side of such railroad track, and_ embracing the same, commenc- 
 ing at a point where such railroad track crosses the boundary line in entering the county, city, 
 town or village, and extending to the point where such track crosses the boundary line leaving 
 such county, city, town or village, or to the point of termination in the same, as the case may 
 be, containing acres, more or less (inserting name of county, township, city, town or vil- 
 
 lage, boundary line of same, and number of acres, and length in feet), and when advertised or 
 sold for taxes, no other description shall be necessary. 
 
 That section 43 be so amende:! as to read as follows: 
 
 The value of the ” railroad track ” shall be listed and taxed in the several counties, towns, 
 villages, districts and cities, in the proportion that the length of the main track in such county, 
 town, village, district or city bears to the whole length of the road in this State. 
 
 That section 46 be so amended as to read as follows: 
 
 The buildings and improvements other than track upon the right of way, the tools and ma- 
 terials for repairs, and all other personal property of any railroad, except “ rolling stock,” shall 
 Pe listed and assessed as personal property in the county, town, village, district or city, wher- 
 ever the same may be on the first day of May. All real estate, other than that demoninated 
 “ railroad track,” belonging to any railroad, shall be listed, assessed and taxed as lands or lots, 
 as the case may be, in the county, town, village, district or city where the same are located. 
 
 That section 47 be so amended as to read as follows : 
 
 The county clerk shall return to the assessor a copy of the schedule or list of the real estate 
 fother than “ railroad track,”) and ot the personal property (except “rolling stock,”) pertain- 
 ing to the railroad; and such real and personal property shall be assessed by the assessor. Such 
 property shall be treated in all respects, in regard to assessment and equalization, the same as 
 other similar property belonging to individuals; except that it shall be treated as property be- 
 longing to railroads, under the terms “ lands,” “ lots, ” and “ personal property.” 
 
 That section 48 be so amended as to read as follows: 
 
 On or before the tenth day of August, the person, company or corporation running, operate 
 ing or constructing any railroad in this State, shall return to the Auditor of Public Accounts 
 sworn statements or schedules as follows : 
 
 First. — Of the property demoninated “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 weight of iron or steel per 
 yard used in main and side tracks; what joints or chairs are used in track; the ballastinsr of 
 road, whether gravel or dirt; the length of time iron in track has been used, and the length of 
 time the road has been built. 
 
 Fourth.- -k statement or schedule, showing: 1. The amount of capital stock authorized, 
 and the number of shares into which such capital stock is divided. 2. The amount of capital 
 stock paid up. .3. The market value, or if no market value, then the actual value of the shares 
 of stock. 4. I’he total n.mount of all indebtedness, except for current expenses for operating 
 the road. .5. The total listed valuation of all its tangible property in this State, Such sched- 
 ule shall be made in conformity to such instructions and forms as may be prescribed by the Au- 
 ditor of Public Accounts. 
 
 That section 49 be so amended as to read as follows: If any person, company or corpora- 
 tion, owning, operating or constructing any railroad, shall neglect to return to the county clerks 
 the plats and .statements or schedules required to be returned to them, the property so to be re- 
 turned and assessed by the as, sessor. shall be listed and ' asses.sed as other property. In case _ of 
 failure to make returns to the Auditor, as hereinbefore provided, the Auditor, with the assist- 
 ance of the county clerks and assessors, when he shall ' require such assistance, shall ascertain 
 the necessary facts, and lay the same before the State Board of Equalization. In case of failure 
 to file said plats or make said statements, either to the county clerk or Auditor, such corpora- 
 tion, company or person shall forfeit, as a penalty, not less than one thousand nor more than tea 
 thousand dollars, for each offense, to be recovered in any proper form of action, in the name of 
 the People of the State of Illinois, and paid into the State Treasury. 
 
 All of which is respectfully submitted. 
 
 CHARLES S. WALLER, 
 
 A menihcr of Revenue Commission, 
 
 flhicago, Ecbruaiy^fi, 1886.