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About Omaha daily bee. (Omaha [Neb.]) 187?-1922 | View Entire Issue (July 19, 1903)
Municipal Taxation By Victor Koscwatcr, Managing Editor of The Bee IT A n T V t I ...... toci ... Nii-jnikui iwnuj' eius Hiu viV, nil I article In Harper's Magazine startting alsproportioemt hKraw h the cast of governtnsr ctties. The tarafdtiti cans of the ap prRhBsfms waa at conptratht exhibit in tho report of the nxrtptrUlrr of the city of New Torfc shawms; that from to ISXa the mtwrtefpal bmlget of th mctropa lis had grown from ttXi to ansa . OOOjMHl We can awry Imagine biw much stronger the words ef warning wouM hire been kd it been known that by the expi ration of another twenty pan the annual revenae of a still Greater New Tort was to amoant cfese to $TJ)yl9,CBai. or nearly ten times ia UU what H was In What has wnmd ta New Tor, to ref erence to Ms minxlcipej taaawt has occur red In ert-ry progressive Anuilcaa city. Trie resuFt is that notwrthataadtog oar treaxendoas national development reflected in billion duDar congresses, the ex pa cut m of municipal Income and outgo has gone on with equal rapidity aad white our con tributions to the support of national and Btate government Brire tig to hag pro portions, the burdens that are left most keenly snj come closest home are the bur dens of municipal government. At best we can get but an inadequate Idea of the colossal suras required each year to BqtrfsUie the municipal balm. Just to secure u approximate perspective, I footed an the latest table ef statistics com piled by Commissioner of Labor Wright (BuEJetia Srpceanbrr. EDO), waken tat-rude only eitiea Bpwarde of 3t,Di pfyut-tin anil found that In these tK" incorporated cities the aggregate current Income for the year was eBKiSV31 My snbject. however, b not municipal rev-cane bat manicipaj taxation. Amerr cari etrles have nmny seared of tnoime. but taxation fas by fax the most important. Of the total current receipts of the city of New Tor, of Ua,XaWv f7!M.Sl cans in as proceeds of the property tax, I3U, 636 more froax the franchise (u, and S.MsVHS frou special assessments. Of th t;!tiWa of receipts of the 117 Amertcaa cities aver v8ft). .SHaVa oat from the property tu alon. Boo-to. PhOadetphsa and Chicago each take in neirty Ra,0 every year as proceeds of th property tax. These figures emphasise the vital part the property tax plays in Slung the nva nidpat porhetbnoh aad the necessity of recognizing existing conditions which make Impracticable tux many of the ache men pro posed to produce the mlllmlum in munici pal taxation. Our three fold form of gov ernment national, state and local each sustained by more or less Interdependent fiscal machinery and. each restricted by conctHntionul limitations peculiar to the Unit'xl Slates, preclude us from utitxlng to any extent the experiences of foreign cities and compel us to kxk to ourselves for thj solution of our tax problems. No matter then what may b? our ideal system of Taxation, no matter how many of the public utility services may be mil- ' nictpuliaed and made self-sustaining or even revnue producing, no- matter what new sources of Income may be developed through license fees, occupition taxo.4, franchise taxes, etc., the bi.ektone of ti.e municipal Income In this country Is and muni for some time remain the property tax Tevy. To abolish this tax Is out of the tjuestJoii, for its loss would bring every American city to speedy bankruptcy; n adequate substitute has beeu devised for It; the ever widening financial needs- of the municipality quickly absorb all newly pro Med1 revenue without appreciably relieving the pressure upon the regular tlx rUe. For the present and immediate future the task must be to make the best of what we have. The favorite remedies suggested for pre vailing tax abuses In our cities aro sepa rate sources of revenue and local option In taxation. The two plans are often urge 1 as property coenptemeatary. bat Ihey d sot necessarily go together. We stay h:ivo separate s-nin.es of reveeae fnr city and state wtthmst hical optina and we may hare toeal optimti without separating the sraarces of reveaoe. Many Mttrtenta think wisdom requires the state ti snpfort it- treasury from taxes oh corporations, inlicr Itancea, etc. aat to reieue tu the mu nicipalities exetusire lurhttlictlon or real estate. Ia the larger and wealthier com BMnwealtha Vita tendency ta urKiiiestiona bly marked, bat ta th vast nut J rity of our tatea, especlitUy where agrh-witarapur-auits predoenfaate. the stage has not been reached ami cannot souu be reoehei where the state government cur re-ilixe saffl ient revenae to Its seeds mls-( p.et'-.i out with a genera! tax kry. On the oth-r hand, if we are CTer t have a rompreheuHive and VDiOed aystess of taxation It cui tin achieved by local opfca subjert to express trmitatiueia only beeatce with ea?h mi nicipetity strikins; out haphazard the twin exUs of double taxation and cHnplete tax cvasioa eanaot veil be avoided. The engent reaaoa why th taanteipality should have Independence in tax mttcrs Is that where tate and loc;il taxei are both Imposed on onu assessed valuation, thffl- former beiug appirUurM:d, tlie Luevit i bie temptatKm to eoaipetittce undervalua tioos fcs fcrresistibee aad ta avofd c ntrilm ting an nnitiie iua to the sttte treasury the city assessment roil fc retfw-ed to ridlc ukMisly insis;itnifaBt prpM-t v and t h ) city tax rate enrresavauttngty fafiatl t apparently cemnaralnry figures. This di lemma hs been obvikted ia certain eie i, not try separating the seuarte of revenue for state and city, bo I by prxvtfia? tl:o city with separate machinery for acs.4 ment. The saaxe property ia thits at t ay or 3 per ceat of Its selTtng price and ofu-e for city ptrrpunes at fail value. This fcK. of roame. aa expensive dopt cation of assessment wort, bat it has advantages at weQ as dfetadvantagea. Th esseaee of jatice in taxation is eoatlty and aniforsnlty a ei;ual bar.lrn on all ssoailarty situated and an uniformity ti appCcatimt to all withia th same Juris diction. Perfect justfee & nat to be ex pected ia any systen of taxatbma. bat there fcs B insurmoaDitabie obstacle la the way of attaining sabstaatlal justice. Sureess or failure after ait depends rflxeetly trpon the NH ty aad knten-tfena of the officers who ndminister the tax machinery nnd thu chai acter of these officers depends on the state of public iinin that governs their seh'ctlon and operates as the mainspring of their oiHcial action. Having devoted a nonth wtthra the past year as a member of a board of review for the revision ef tho grand assessment roll of a etty with over MflifitW' mhabitants and a valuation In. excr-ss of U5j:'WriiKv I am convinced as the result of that experience that conscientious and determinedi tax oflicer backed! by a healthy public seatimeEt can appoctloa the tux bunieras acnunling to our standards with an approximate degree of actruracy. My observatboa and experience have, noreover. made me a gr:tt believer in pabtlcity aa a potent remedy fin- nuist of the ills of the body politic, and more par ticularly for abwies la taxation in cities where the healthy stiatulisif of amhljorly watchfulness eannwt be as strong u,- in ruraT districts. If a man cannot hWe his prryperty from the assessor without hi-lni; fotmd oot and advertised as a tax shirker he ht saore apt to list the items fairly. If the taxpayer fc enabled without tou much tmubte to conpare the vaiusition on his procerty with those of his neighbors or business rival he b tikety to accept reason able assesssaents gracefully If ratable with the others, la every city the assessment list, at least of personalty, In all sums In. excess of say $1,0X1. should be published annually for the Inspection of the tax payers and the detailed schedules kept acreaatble to ail who wish to enoswlt thesa. One of th chief difflcalttea la axing as scesaaents for municipaj taxation to the Im presstmt roearw aasnng bastaesa nvest that It k their premgathre to s-iy os how great n vahmttna they are willing to pay taxes and to insist on their estimates bevnc ftaaL Imbued with this idea, tatctligent ate wiM frequently refuse to give iaforaiathwi necessary to fernssh the basia for a fair assessmeat. and then whew the asaeasta body secures its In f ormatlow as best M c:u to feel thenseK-es aggrieved. Ia Justi fication ef their pnsilSoo it is eonteadrd that mercantile capital Is entitled to lontenry as compared with la vest stew ts ia realty because trt hei mi.tm Its owaers wmtVl be at a disadvantage rn dohng boetnema hi competition with nvrrchasts sad Jnfcbers of other cities where the taxes hwpneed are liKhter. It hi farther urged that whatever ennwragement Is given snrrcaatil estab lishment fa the snap of lowrv assess ments and smaller taxes redownd ta the beaetlt of th nwners of real estate and other Sxed rastltatinna whose varae rests upnn the mamteaanre of a growing pf latiM. Acceding to these plKis, however, would make it pimply a rjuestlon how much advantage Hhotild be given to mer cantile capital, and the only ltiKlcal out inmt wrratd be the resnisskm altttgether of such taxes. Bat that capital Invested in lnjtressi rhiruki go untaxed whil e tpital Invested ta real estate shoutd bear alt the tax hardens reserves Itself vltlmatety into the stngl tax on. btnd vabxes, for whirl our Aaaericaa cities are hardly bow pre pared. Still less weight is to be given th stock argument thnt business estabtish laents in one city shrxakl be assessed oeity lunumariy tor maniripal taxatbni becaoa competttora in ncher cities, where the ex penses of goTemsseat may be taach 9Ta.tler and the proterthm afforded far lea ade quate, are taxed still tesa To rwteede the validity of this argument wnvld lie ia Kabstance to aBow th taxes in city ta be fixed by tit anthoritle n sura other city, aad M wimld be merely a mat ter of time wheat ail th different com peting rifles ami towns wouht be vicing with one- another to abolish toxes opon merrairrne eapttzl altngethrr. if not to gf farther with subsidy premhsana ill i matter of fart, so far as there Is good gicwnd for the relief of personalty froa excessive tax hardens, it fas recognized in sir onr Amrrcirn rtfhTt that trnrmwe special asseesmenls for benellts accruing from local Improvements to the owners of adjacent property. The principle of the special asue.ssincnt a:t de' graph upon that. piil.Jic exiiense is to be Incuri thority for a public in results in special, distinct iid measurable advantages to the property of particular Individuals, it is more equitable that thuse individual:) who benefit thereby should contribute to the expense to the extent of these benefits than that the burden should be plated upon others who have received no bucIi benefits." (P. Vf.). As already lndicattd, the municipal revenues lu Greater New York for l!Xil-2 were swelled by over $T),n(iO.0if received as special assess ments, in Chicago by i. early fl.OCd.CGO. In Pittsburg and Cleveland by nearly $1,0(10.0(0 each, and in other cities In smuller yet significant amounts. Special assessments constitute a thoroughly established feature fif municipal taxation In America without which the rapid enlargement or the per manent plant of our cities could not have taken place. As to the numerous franchlsed corpora tions, which for years have enjoyed most valuable privileges not only without ad" quate compensation, but In many instances without baa ring even their fair proportion of the tax burdens, much recent Improve ment may be noted Irrespective of the ed In ny tnonn tl.aj. "where an ' "iy a local nu- ;ement which municipal ownership Idea, where these pub lic services remuln In private hands the, disfwettlnw is to repair sawessmewt for rvxaflon oa the basis of market value as gausred by stock, aad boad awotatlisM ami the repeated efforts to evade these obliga tiima by appeal to the. courts have been generally defeated. Th diaVwItlea pre sented where th fraachtwes aad property extend ht part cfatde of th city's taxing JarnsfVtlnei are terhairal owty. With th railroads aaa therr terminal facilttira. th sraatcm baa not btcn so pittis fsctrwtty aarved. Th maat vahiedd por tion of a hkK railroad system at fownd In Ha terminal farltrtUrS whWh giv ewtrance to great pnpabtiMS ceatera and foraliae tram at th pomtn of bawiaesa. Th rall ronda share eaaUIy in aV the benefits of niumtripal government aad often retraire in addHbm speci.il servk-es at th hamls of th city autma-itlea, but fas few. If any, of our citiea do they contrlhwte hi taxes In nywfcere aear their st propnTtiun. Tho evastnn nt asun&rpal taxea y th raib-oHds has nsuiAny inn acrnenprinhed natter pre teaee that the lire muit be valued aa a unit tvy nr revrtral Btate ssnem merit (ward and the trrnatmt sad fraaehss vahtva distrib ntd m-er the entire length on a mileage rattw. As a result, thu terminal values are taken out of the mtinh-irsl wren -for taxa tion and In theory strung along rural dis tricts where no municipal taxes are Im posed at all In Orsaba. for example, tho property of ttve great railroads converging tbere, with costly bridges, freight ami pas sengr r V-p"sv rrorhage. etr whh-h rail way experts had themsetves testified to bo worth mvM-e than 125. m certltb-d up by the State Hoard fee MonaripMt Taxntlon oa an ssaesnsaeat of less than ,0W, and the dlserepamry explsvlned hy th ftctlon of dltstrllmttrMV slthnugh no signs of the dis tributed vabtes are visible ia the assess ments apportioned to the rural counties. The true syrtem sbowhi provfaae for the toeal assesssnent of railway terminals for raanWicktl 2xatlost th saase as other property, no matter how rafrways may be taxed foe stale and general parpen i?a, On other weak point aa th aresent scheme fas the praetWsJ laxmonrty of the men ha peofesstoaal Hfe aad ha certain lines rnvoivmst pwrarmel servtye aa th sole In gredient of their business in contrast with th merehaat and asaawtaetarer. The law yer, the phystvbus,. th dentist, the engi neer, th broke, the rental agent, the enunvfascoet man, are cootpletety dependent upon the conditions of urban life made pos sible by the maintenance of municipal gov ernment, yet contribute almost nothing to Its support. It might not be popular, but It would be nom-tnt'lesx In the direction of greater Justice to impose a special necu pittiou tax or license fee upon these classes suirrieinental to the usual taxes on their property holdings. Whether assessments should bo at a frilc'"i tlonal part of market value and tax rates high or assessments at fall vnhte and tax rates low, there seems to me to be bnt one answer. Full value assessment alone gives an Invariable nnd definite standard and offers no disguise to cover up tax shirking; it misleads no one and requires no explana tion, while a high tax rate on n percentage valuntlon Is delusive and repellant to pop ulation and Investment. The r-'ttl question in the end la not so much whether the taxes are high or lowj but whether they sre equitably distributed and whether the taxpayer gets good return for his money. To expect the expenses of municipal government to be materially re duced for the future Is to expect csir cities' to stand stilt or to contract their rminh-fpal functions. "What we must work for Is to eradicate abuses !n our existing system of muplcrpal taxation nnd at tfie same time to innke sure every dollar Is well spent, r.a that the best possible results are secured at the least possible outlay. Omaha, Neb. Salt Water Sailor's Experience With a Shark i Jt'ST believe tv.at story I see In the papers about a shark biting n man's hand nearly off after the r'stl' own e-d had been cut off mdJmmJ f Irilie vr1r wrrr-A rt it mrmn. trvM;," oald an old salt water sailor, nuot-.-I by the Washington Star. "Why?" one of his listeners nsked. "Why? lie cause a shark la the men nest, orruirest sm of a aeacook tljtt swims In the tcean, I know him. lie's cowardly, too; but oa-ce get him at close quarters, where you h:v the advantage of him. Then lie- is as much like a rat as anything I can tin ink of aad win fight to tho bitter CBll "I mind me of a light with one of there feitew's in which a whole ships crew took part, and if yoo waat to hx-itr about it I'll upin yau the yara." Of course every on was interest 0. and the iim-fenl n.iinr proceeded. A few years after the end of the war 1 was one of the crew of a pretty good sized bark that sailed otrt of PhiladelpliU in balfusf. beurtd for a port la Brazil, where we were to load up wfth a eargo of rosewood an.l other stuff. The old bark hod a crew of first-class men. Every one of them was a sailor uaan, front the cap tain's steward up to the ship's cook, nnd most of 'cm had seen liard service on blockade duty aboard men-of-war when the tight between the states wa goln' on. "We got pretty well down in the south Atlantic when one of tlve iiiea, a fellow named O'Stawley. took sick Very sick he was, and you'd hardly believe it, but the day after lie was Uii' up In his bamnr.oi k It was noticed that a big shark was tollTin' the nhip. "He was surely waitir.' for O'Stanley to da That's a way sharks have. They smell death and watt for a poor sailor man to breathe bis Ust snd thea pounce oa Mm when hia mates heave him overboard. "Tbia Bhark waa one of them kind that are alwayj attended by a ht t bill flsli, tailed pilot fish. They guidu biiu to hi prey, and pioMbl get the crumbs thail f.tll from tbe big fish's table. "Th eld man come out of Ida cabin when th shark was reported aivl gave orders for its to catch that ngly genileiiHtn. This waa Just what w wanleiL. so we bent a. stit rone o a big iron hkv balled it wuh a big i ioce si sH paik, aiaUs th lme fast to a stanchion and hove the meat overboard. "Did it take Mi'. Shark long to come to dinner? I guess rot. lie must a been very hungry. "All hands that could bo spared got hold of the rope, and I rwear we had the hard est kmrl of work in getllng him ab'ard. "Hut we got him and lwuled him over th mil oti the starboard qmtrter. Fellcws, tliut brut was bipyrei'ii any horse I ever see. "After w! et biin on deck the fight lgan In irisl. The fld devll had no Idea of driving lit r.nil prnnced aronnd worse than a dancing master r. a waxed floor. "He snorted snd grunted and thrashed tlm deHc with his fury, snd It was danger or.s to cotne nr him. Tlie hands beat hint with Iron l- la in" pins and inarttnaptlvcs. and the old nan pit tlie contents of two rvefvers usiler Ms boraacle hlda; but h wa In fir a fsM to lb finish. "At last th ccek, wkli a sharp (ix. cut hm Infernal b4 off wnt lieluw hia should'rs; only be dldst have uny shoulders. "Well, tltat sort o' qiiiete.1 h.'m. but l.a waa for aUU ahowin tight, and his Jaws opened and snapped viciously. One of th buys stuck an oor Into his mouth, and I awrar that, although tho monster hadn't Ivad o head for at least ten minutes, bo Jiost rruTK-hed tlnit oar between bis teeth as easily as you could a toothpick. "The mess be made on the after part of the deck while he was glviii up the ghost; was awfuL It took about half the i. fler n:xn to clenn up. dun't you discredit any yarn akout a sliark using; hfc fans when he's lieheadvd. "The a:iddist thinvt about the whole busi ness was that ptsir O'&tanley died Jurt about eight bells tlw next afternoon. Thorn pilot fishes knew he waa Kola' to- po out, and Juat let th shark luuvw it. TbaVa a way theia cruaiurea h is." Resourceful Woman Blie Oea-ge, dear. ru rau:uber that lovely aideboard that 1 tuU yoa 1 btwiuli like to buy because It was so clk-ayl Weil, I've diwovered a pl.ia ti mitke ruwcik ir It. lie lluw, my dettr? ahe i;y tali lug a laru.ee ao-.-a. -3hH k raacUa: Waash
