USA > California > Placer County > History of Placer county, California > Part 36
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An examination of the Auditor's books made in December showed the indebtedness to be about $25,000, and there were 88,000 in the Treasury at the same time. Upon this the Placer Herall says:
We congratulate our taxpayers upon the healthy financial condition of our county, which is better than that of any other county in the State of like population and property, and would remind them that this state of things has been brought about by the Democracy, who have held the reins of power for three years and a half. During this time rigid economy has been exercised, and as a result the debt is now comparatively small. llaving discharged the trust reposed in them faithfully and well, the Demoe- racy have now given way to the new regime, and we earnestly hope that they will conduct county affairs as economically and as successfully as their predecessors. In order to reduce the enormous debt that has hung over the county in the past, the Super- visors found it necessary to keep up the annual prop- erty tax to a high figure, and from the year 1854 to 1860 the tax was held at 82.25 on the $100 valuation of property. For the year 1860 it was reduced to 82.00, and when fixing it at that amount the Super- visors believed that the debt would be so far reduced during the current year, that in 1861 the State and
156
HISTORY OF PLACER COUNTY, CALIFORNIA
county tax might be fixed at $1.50 on the $100. We think that they were about correct in their opinion, and that the present condition of our finances de- mands that the Supervisors should afford this relief to our long-burdened taxpayers.
At the close of the year there were reported 1,440 school children in the county, and the county's por- tion of the State School Fund was $1,224, being at the rate of eighty-five cents for each child reported by the Census Marshal.
FINANCES IN 1861.
The Supervisors in February established the rate of taxation for the ensuing year at $2.00 on the $100 valuation, of which sixty cents was the State levy. Scrip was purchased by the Redemption Fund at rates ranging from ninety-three cents to par; at the former rate there being a bid to surrender $3.00, while over $5,000 of the $7,775 was redeemed at par, showing the favorable condition of the county finances.
The State Controller's report of January Ist, stated the entire amount received into the State Treasury since the organization of the government to be $9,454,964, of which Placer had paid $282,309.91, being the sixth county in order of amounts paid. The five counties whose payments had exceeded Placer were San Francisco, Sacramento, El Dorado, Yuba and San Joaquin. All of these counties were formed in 1850, and until Placer was organized the citizens of the county had paid their taxes into Sutter and Yuba Counties, otherwise the payments would have exceeded those of San Joaquin, placing Placer fifth on the list. This was regarded as impor- tant, as the large agricultural counties were con- stantly complaining of the mining counties for not bearing their share of the financial burdens of the State.
The County Treasurer, on the 30th of March, 1861, reported $7,814.08 eash on hand belonging to the county, and the amount of outstanding warrants to be $22,714.54. In May he reported 820,019.40 due on registered warrants, and 88,335.48 in the Treasury for county purposes; $5,039.82 belonging to the Redemption Fund, with which $5,306.07 of scrip was redeemed. Monthly statements were made through- out the year, showing a gradual redemption of the debt, and 1861 saw Placer County practically out of debt, and with a large surplus in the Treasury. The statement of the 1st of January, 1862, closing the year and eliminating the debt, was as follows :-
Amount of cash received during the
month from all sources $ 47,852 18
For State purposes 14,974 31
For county purposes 32,877 87
AMOUNT PAID OUT OF EACH FUND FOR COUNTY PURPOSES.
General Fund. $ 6,977 42
Redemption Fund 134 37
Hospital Fund 220 97
School Fund. 50 00
Sehool District Fund 562 48
Road District Fund. 756 57
County Judge Fund. 48
County Clerk's Fund. 9 60
Estates of deceased persons
03
Total amount paid for county purposes .. $ 8,961 92 Amount paid the State. 14,900 00
AMOUNT OF CASH ON HAND IN EACH OF THE COUNTY FUNDS.
General Fund. $ 3,681 14
Redemption Fund 16,234 63
Hospital Fund 3,935 08
School Fund 2.728 46
School Districts Fund
1,532 33
Road Districts Fund.
1,518 10
Indian Fund.
37 60
County Judges' Fund.
25 29
County Clerk's Fund
310 23
Estates of deceased persons 120 81
Nevada County
40 74
Total amount belonging to the county on hand.
$30,216 64 Total amount of outstanding registered warrants 560 50
The above statement shows the amount of $29,- 656.14 cash on hand over the indebtedness. Placer County was out of debt, money in the Treasury, and property increasing in value. Only one other county of the State-Napa-could boast of the same condi- tion. This was a subject of great rejoicing, being accomplished while many other mining counties were rapidly accumulating indebtedness, resulting in their subsequent deelining in population and wealth to the verge of bankruptey. The means and acts bringing this fine result were the constant discussion of the subject by an intelligent press, economy in the officers, industry and care in the Assessors and Col- Jectors, and favorable special legislation. The Redemption Fund saved $2,600; the reduction of the salary of the County Judge from $4,500 to $2,000 saved $10,000; District Attorney's fees, $4,500; by division of the offices of Clerk and Recorder, and paying salary instead of fees and percentages, 833,000 was saved; reducing Board of Supervisors, $5,000 saved; and the restoration of lieenses of ninth and tenth classes, 824,000 recovered; making an aggregate of $108,500, and paying the debt without an increase of taxation.
By a statute of the Legislature, Assessors were elected in 1860 for each county, and these reported the assessable property of each for 1861 as follows: Township No. 1 122,973 40
=
3
687,007 50
4
114,404 00
5
591,626 20
= 66
6
261,101 20
=
66
7
=
8
297,725 75 54,053 70
=
9
151,781 75
" 10
108,528 97
Total for the county. $3,225,248 96
145,167 96
Increase for the year
236,066 69
6.
157
FINANCIAL HISTORY
The classifications were: real estate, 8503,033; improvements, 8644,155.50; personal property, $2,078,080.46. The total amount of revenue received in the Treasury for State and county purposes during the year 1861 was $157,856.29.
TAXATION IN 1862.
The debt having been paid, and money accumulating in the Treasury, gave the opportunity for a reduction of the taxes, and accordingly the Board of Supervisors, at their session in March, 1862, levied a State tax of 62 cents on each $100, and for county purposes, 73 cents, as follows: for the General Fund, 30 cents; Redemption Fund, 10 cents; Hospital Fund, 15 cents, and School Fund, 18 cents, and a Federal tax of 15 cents, or a total of $1.50 upon cach $100, being 50 cents less than the levy of the previous year, and without the Federal tax, a reduction of 65 cents.
The exigencies of the General Government cansed by the war of the Rebellion created a new system of taxation by the Federal Government, and under Federal officials. The system of Internal Revenue was established, whereby every class of business, professions or incomes were licensed or taxed. The amount collected in Placer County between Septem- ber 1, 1862, and January 1, 1863, was about $50,000.
The assessed valuation of the property for the year was $3,006,453.27, upon which a tax was levied of $18,640 for State purposes, and 821,947.10 for county purposes-a total property tax of $40,587.10. The total amount received into the County Treasury from all sources was $125,914.56. At the close of the year there was of county money in the Treasury, $46,988.07, and $1,535.19 belonging to the State. The outstanding warrants amounted to $391.80. Rich Placer !
THE FINANCES IN 1863.
At a meeting of the Board of Supervisors in Feb- ruary, 1863, the tax rate for the ensuing year was fixed at 35 cents for each $100, for county pur- poses, apportioned as follows: General County and Redemption Fund, 5 cents; County Hospital, 10 cents; and School Fund, 20 cents. The State and Federal tax was fixed by the Legislature at 92 cents, making a total of $1.27.
Irregularities, supposed from incompetency or carelessness, were found in the books of the Auditor, and suit was ordered against him and his sureties for a balance of 81,490.18, claimed as dne.
A road tax of 82.00 was levied on all able-bodied men in the county between the ages of twenty-one and sixty years. The Board of Supervisors also ordered an addition to the County Jail, and an expenditure sufficient to supply the county officers with such Federal Internal Revenue stamps as the recent laws required. These were extra items of expenditure.
An Act for the better protection of the Treasury of Placer County was passed by the Legislature, and approved April 6, 1863, under which the District Attorney and Supervisors were constituted a Board of
Examiners to count the money in the Treasury and compare the result with the various books.
The same Legislature passed an Act anthorizing an election to be held May 12, 1863, on the proposi- tion for the county to subscribe $250,000 to the capital stock of the Central Pacific Railroad Company. This election was held as ordered, and the proposition carried by a vote of 2,117 for, and 1,696 against, being a majority of 421 in a total of 3,813 votes. This subscription was paid in bonds drawing eight per cent. per annum interest from the date of their issue. In return for this the railroad company promised to add directly to the assessable prop- erty of the county $9,000,000, and indirectly much more from the profits arising in building it, and the improvements that would naturally follow its con- struction.
During the year 1863, 8200,000 of railroad bonds were issued, upon which the interest was paid in the February following, and payable every six months thereafter.
The assessed valuation of all property for the year was 83,071,911.78, yielding a revenue of $38,898.26. The total amount received in the county Treasury during the year was $131,132.98, exclusive of com- missions and mileages to collectors amounting to $18,698.78; the largest amount from any one source being from foreign miners' licenses, of which the Board of Supervisors reported 15,000 sold, yielding a revenue of $60,000. The expenditures for county purposes was 884,350. January 1, 1864, there was $17,416.73 in the County Treasury, and of serip outstanding 8287.05
EDGAR M. BANVARD
Was born in the city of New York, December 31, 1820, and, at the tender age of five years, removed with his parents to Cincinnati, Ohio, and five years later removed to Louisville, Ken- tucky. In the latter city he attended the High School, and laid the foundation for the education he acquired in after years. In October, 1834, he went with his parents to the State of Illinois, and located at Peoria, then a decidedly new country. The following year he was engaged as book-keeper and salesman for a general merchandis . ing establishment, a position he held until September, 1852. Desiring a change, he concluded to join the throng who were seeking their fortunes on the Pacific Coast, and took passage in the steamer Inde- pendence, Captain Lucas, Commander, coming to Cali- fornia by the Nicaragua route. He arrived in San Francisco, November 10, 1852, and, unlike the major- ity of the pioneers, he devoted himself to agricnl- tural pursuits. He engaged in farming on the Peralta grant, situated on San Leandro Creek, in Alameda County. In May, 1855, he came to Anburn, Placer County, in company with his old Peoria friend, Dr. J. R. Crandall, and was afterward appointed Deputy County Treasurer, under that
.158
HISTORY OF PLACER COUNTY. CALIFORNIA.
gentleman. Mr. Banvard received the same position under Philip Stoner, and, in 1860, was elected to the responsible position of County Treasurer, on what was known as the Union Democratic ticket, and re-elected in 1862. During the succeeding two years after the expiration of his term of office, he was engaged in various kinds of business, and, in 1866, removed to Alta, a station on the Central Pacific Railroad, where he purebased the Depot Hotel, and has since been the genial landlord of the well-known Banvard's Hotel. In 1869 he was elected State Sen- ator from Placer County, on the Democratic ticket. for a term of four years, and, during the two ses- sions, was Chairman of the Finance Committee. He now gives his whole attention to his hotel business. He was married in January, 1851, to Miss Abbie Shurtleff, only daughter of Milton Shurtleff, of Taze- well County, Illinois. There are two children by this union, Lonis H., born June 6, 1852, and Charles, born June 7, 1857.
FINANCES IN 1864.
The first statement of the Treasurer in February, 1864. showed the total amount of railroad bonds issued. placing the county $250,000 in debt. Of the amount of expenditures of the previous year. 82,250 paid in aid of the military companies raised in the county, was returned to the county in 1964.
This is distinguished as the year of heaviest taxation in the history of the county. Added to the ordinary expenses were the railroad bonds, for which a fund must be provided; the direct tax imposed by the National Government which the State had assumed; a fund for the construction of the State Capitol; a fund for the relief of soldiers, and for the insane, making a total of $3.71 on each $100. In addition to this was the general poll-tax of $2.00, a road tax of 82.00. military tax of 82.00, and a special head tax of $2.00, to pay the interest on the railroad bonds. The assessed valuation of property was $2,977,061.30, a great decline upon the valuation of the preceding year.
The County Auditor reported the net amount of revenue collected from all sources for the year ending December 31. 1864, to have been 181,081.63, exclusive of commissions and mileage to collectors, equal to a tax of 847.66 upon each voter. and of about sixteen per cent. of the assessed valuation of all the property of the county.
CONTEST WITH THE RAILROAD FOR TAXES.
With the assessments and collections of 1864 began the financial war with the Central Pacific Railroad Company that has continued through all the intervening years and threatens a culmination disastrous cither to popular government or corporate wealth and power. Another " irrepressible conflict " has arisen between the people as individuals, and incorporated bodies, wherein the latter, gorged by wealth and made arrogant by success, become crazed by insatiable greed until by their exactions and
oppressions they force the remedy that brings their own ruin.
In 1863, Leland Stanford, President of the Central Pacific Railroad Company had, as Governor of Cali- fornia, approved a bill which ordered an election to be held in Placer County on the 2d of April of that year on the proposition to subscribe 8250,000 to the stock of the Company, and while the election was pending used every effort of personal and political power and the free use of money to carry it success- fully. In an address published by the authority of the railroad company, the assurance was given that the construction of the road would add 89,000,000 to the taxable property of the county, which, at the low rate of thirty-five cents on the $100 for county purposes, would yield a revenue of ×31,500, or $11,- 500 per annum more than the interest on the 8250,000 of bonds asked for. As so large a stock- ! holder. $250,000 being more than any or all the corporators had paid-would, or should, give Placer an equivalent share in the road with all its property, grants, subsidies and profits, 89.000,000 worth of which would be within the county and taxable, making it the wealthiest county in the State, its individuals almost free from taxation, funds for schools, libraries, free roads and bridges, public buildings and improvements of every kind desired by an intelligent, progressive, well-governed com- mumty. The proposition was accepted.
But such were not the results so plausibly prom- ised and so confidently hoped for. In 1864, sixteen miles of railroad, extending from the county border to Newcastle was assessed by the Assessor at the rate of 820,000 a mile, aggregating 8320,000, and upon other railroad property $78,815, making a total assessment of $398,815. Instead of paying the tax upon this assessment. the officers of the company swore the property was worth but 86,000 per mile of road, and 843,000 as the value of all their other property in the county. Upon this the Stars and Stripes remarked :-
On an examination of the books of S. M. Stevens, Assessor of Township No. 3, we find the sworn statement of Mr. Miller, Secretary of the C. P. R. R. Co .. dated Fuly 14, 1864. in which the sixteen miles of track in Placer County is valued at $6,000 per mile, and our county's proportion (0.516) of the rolling stock and other property at $43,000. We must confess that this exhibit produced somewhat stunning and stupifying effects upon us. When we reflected that over and above State and county aid, forty-eight thousand dollars a mile had to be doubled to insure the building of the road, together with land enough for a Principality, to result in the construc- tion of property worth but six thousand, it seems very much like pouring water into a sieve.
The sworn statements returned according to law to our Board of Supervisors, show an expenditure (for Placer County proportion) of $724,914.22 up to October 22, 1863, since which time a large portion of the most expensive work has been done-enough probably to reach an aggregate of one million dollars, and yet this immense expenditure produces taxable
159
FINANCIAL HISTORY.
property to the value of but one hundred and thirty- nine thousand dollars.
The report that the Directors of the railroad company had issued millions of stock to themselves, was regarded as too great a calumny to be enter- tained, and was scouted as ridiculous. Notwith- standing these expressed opinions, the Board of Supervisors were requested to, and did appoint a commission consisting of Felix B. Higgins and James E. Hale, to examine the books of the company and report the result, also to ascertain if the report was true that the Directors named in the grants by Congress had assumed said grants to be the individ- ual property of those named. and had sold the land. subsidies, franchise, etc. to the Company for large amounts of the paid up capital stock of the Company.
The order of appointment was rescin ded at a sub- sequent meeting of the Board, and nothing resulted from the movement but to arouse the feelings and indignation of the people.
The Supervisors, as a Board of Equalization placed the assessment of railroad property at $252,011. The company returned their property at 841,280 for their rolling stock, $2,250 for buildings, and sixteen miles of road at 86,000 per mile aggregating $139,- 530.
The conclusion of the various assessments and equalizations left the total assessment of the property of the county for 1864 at $2,977,061.50, upon which the State tax was $1.25, and county tax $2.46, total 83.71 on each $100 of valuation.
TAX LEVY, 1865.
The tax levy made in February, 1865, was as fol- lows: By the State, for interest and general purposes. 451 cents; for interest and Sinking Fund of 1857, 30 cents; for interest and Sinking Fund of 1860, 1] cents; for State Capitol. 5 cents; for Soldiers' Relief Fund, 4 cents; for aid to Central Pacific Railroad, 8 cents; for benefit of line officers California Volun- teers, I cent; for Soldiers' Bounty Fund, 12 cents; for school purposes, 5 cents, making the State tax $1.15: county tax 81.25; railroad interest tax, 20 cents: total 82.60. Besides the property tax there was levied and ordered collected poll tax, 82.00; road tax, $2.00; military tax, $2.00, and railroad interest tax, 82.00, of all liable to poll tax. In addition were the nsual licenses, county, State and Federal. with rove- nne stamps attached to all papers of business, and a tax upon incomes exceeding 8600 of 5 per cent., and over 85,000 10 per cent., making the burdens of gov- ernment severely felt. A slight consolation appeared in the fact that the property tax was $1.11 less than the one of the previous year. Those, however, were war times, as commonly remarked, greenback times with gold at a premium, recently of 2-16 per cent., railroad building times, Washoe and Reese River silver mining times, and high hopes, rushing busi- ness, and excitement ruled generally.
RAILROAD ASSESSMENT.
In September the Assessors made their returns of property assessed -- personal at 81,529,268, and real estate at $1,034,711. not including the property of the Central Pacific Railroad Company or the property of the California Central Railroad Company, nor the Donner Lake Wagon Road. The property of the Central Pacific Railroad Company was assessed at $388,500, there being at the date of the assessment 273 miles of road in the county. Against this the following complaint was made to the Board of Equalization by the District Attorney :--
STATE OF CALIFORNIA,
COUNTY OF PLACER.
SS.
Charles A. Tweed, District Attorney of Placer County, says the valuation of the property herein- after described, assessed by the Assessor of District No. 2, of Placer County, in his assessment for the fiscal year A. D. 1865, to the Central Pacific Railroad Company of California, is too small. That the real estate and improvements in said assessment roll described as fifteen and one-half' miles of railroad. commencing at the southwest boundary line of Placer County, running thence through Roseville, Rocklin and Pino to New Castle, and by said Assessor valued and so assessed at $156,000, is in fact of far greater value than that sum, and is, as the com- plainant believes, of the value of $232,500, and that the real estate in said assessment roll, described as twelve miles of railroad, commencing at New Castle and running easterly, passing Anburn Station, to Clipper Gap, and by said Assessor valued and so assessed to said railroad company at $120,000, is in fact of far greater value than that sum, and is, as complainant believes, of the value of $180,000, and that the following described personal property, also assessed to the said Central Pacific Railroad Com- pany of California, to-wit: Six locomotives and seventy-six cars, valued at $125.000. Whole length of railroad, thirty-one miles, of which Placer County is entitled to one-half, valued and so assessed by said Assessor at $62,500, is in fact of far greater value than that sum. and is, as complainant believes, of the value of $75.000, and complainant prays your honorable body to change and correct said valuations in accordance with the true value of said property.
The additional assessments on property in the division below New Castle was depot building at New Castle, 81,750; railroad iron, spikes, etc .. $3,000; railroad ties at Roseville, 817,500; twenty-five horses and carts, 82,500; grading implements, $700, and the personal property above New Castle. 817,500. The complaint of the District Attorney brought on a controversy, and Leland Stanford, the President, and E. B. Crocker, the attorney of the railroad company, appeared before the Board of Equalization and insisted the road should be assessed at 86,000 per mile for the fifteen and one-half miles and that the assessment on remaining part of the road should be rescinded. threatening that if these demands were not complied with they would go into the next Legisla- ture and have a law passed exempting all persons working upon the railroad from payment of poll tax, by which the county would lose more than the differ- ence in valuation.
160
HISTORY OF PLACER COUNTY, CALIFORNIA.
In response to this the action of the Board was as follows :--
BOARD OF EQUALIZATION, Tuesday, Nov. 14, 1865.
In the matter of the complaint of C. A. Tweed, Esq., relative to the assessment of the property of the Central Pacific Railroad Company of California. after hearing the evidence in the case, it is hereby ordered that the assessment stand as given in by the railroad company to the Assessor in their statement made the 27th of March, the value of the road being fixed at $6,000 per mile, and that the assessment of property of said company in the county acquired since the statement given on the 27th day of March. and as regards the assessment of the road above New Castle be and is hereby ignored.
At the date of this decree the company owned forty miles of railroad in the county, which they were operating at a great profit, and was com- monly estimated as worth more than $40,000 per mile. The result of the assessments and equaliza- tion left the value of the property of the county for taxable purposes at 82,825,208, taxed for State. County, and all purposes at 82.60 on each $100.
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