USA > Illinois > Cook County > History of Cook County, Illinois : being a general survey of Cook County history, including a condensed history of Chicago and special account of districts outside the city limits : from the earliest settlement to the present time, volume II > Part 39
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The officiating mayor made the following specific charges against the former administrations: Neglect to retrench or economize in
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the matter of public expenditure; an increase in the amount of taxes levied; an increase in the number of offices made and in the rates paid as compensation for public service; had sought by illegal means to raise money upon the credit of the people to pay themselves and thereby had increased the public indebtedness of the city nearly $5,000,000 beyond the constitutional limit; had jeopard- ized the municipal credit, which was never before impaired, by ille- gitimate issues of time-loan certificates placed upon the market of foreign cities against the law and against every remonstrance which could be urged in opposition to so vital and ruinous a policy.
The action of the Municipal Reform club which had been ap- pointed prior to the election was commended in high terms by the press and the new mayor. Among the resolutions adopted by that club had been the following: "That the practice of the city govern- ment in anticipating receipts of revenue by making time loans on certificates has a dangerous tendency ; that the illegitimate character of this indebtedness was of itself calculated to impair the credit of the city, while it opened the door to every species of fraud and ex- travagance in city expenditures; and that it had produced a con- fusion in the administration of the city finances impossible of extri- cation or remedy in the hands of men intrusted with the manage- ment."
As a matter of fact, a judicial tribunal called upon at this date to pass upon the validity of issuing these certificates to place upon the market, declared them illegal unless drawn upon a specific fund. The wild extravagance of city expenditures had outrun the utmost efforts of the city controller to collect money to defray them. The people now demanded a discontinuance and utter abandonment of the whole service system as soon as possible and of the insane policy of anticipating and spending revenue in advance of its col- lection. By curtailing expenditures, paying off current obligations and contracting no new liabilities, the credit of the city could be restored. The city was not insolvent nor in failing condition. It had simply been improvident and must now pay for its folly.
The city of Chicago was organized in April, 1875, under the recent general incorporation act, and consequently no election was held in November, 1875, but the persons then in office held over until May, 1876. Under the new law the city was divided into eighteen wards. An order passed by the City Council provided for an election of city officers under the act, but omitted all reference to the office of mayor. Notwithstanding this omission and the apparent absence of any authority, a popular vote for mayor was taken and Thomas Hoyne received 33,064 votes against 819 scat- tering. A canvass of the returns being made to the Council, the vote given for Mr. Hoyne was disregarded. However, the new Council at its first meeting was cited to canvass again the returns, and, having done so, declared Mr. Hoyne duly elected mayor. Mr.
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Colvin, the incumbent, declined to yield possession of the office on the ground that he, like other city officers, was entitled to hold over under the law. The matter was referred to the courts and resulted in the virtual failure of each of the contestants to sustain his posi- tion. In consequence a special election for mayor was ordered by the Council, and on July 12, 1876, Monroe Heath was duly chosen.
The principal fact to be considered was that during a period of great financial depression the city had suffered from a policy of unnecessary and excessive taxation and extravagance. The enor- mous shrinkage of values since the war, and particularly since the great fire, had reduced it was falsely claimed, many large estates in this city almost to bankruptcy. This seemed to be shown by the large number of real estate sales due to the nonpayment of taxes. That there were many failures was true, but only because of the depreciation of values due to a return to specie payments. Outrageous extravagance and not burdensome taxation contributed to the load of worry and work. "During all this time of suffering and distress the taxpayers have been exposed to the most cruel and violent taunts by some men in authority who never paid a dollar for taxes into the treasury from which they have received support," said the mayor. A thorough investigation into the exciting situa- tion was therefore imperatively demanded as a preliminary to re- trenchment, economy and reform. It was thought that if a million dollars could be saved out of the recent extravagant appropriations by the Council, the sum would go far toward liquidating the illegal certificates outstanding and would in addition place in the hands of the departments money sufficient for the pressing needs of the schools, police, fire and other departments. The mayor suggested that it might be judicious to instruct the city treasurer to refuse payment on all obligations until the same had been duly classified and inspected. It was thought in May, 1876, that the new Council was one of the strongest, ablest and presumably the most honest that had ever taken charge of municipal affairs. The spontaneous movement of the people in popularly selecting, nominating and electing them precluded any idea of their inferiority or lack of hon- esty. This was an era of mental and moral upheaval, of insight and foresight, of civic righteousness and personal purification, of ag- gressive virtue and assertive intelligence. But the people were yet weak, blind and hesitating and prone to do wrong as the sparks to fly upward.
At this date (May, 1876) the city employed, exclusive of the school service, a total of about 1,316 persons. The aggregate an- nual compensation due these employes was about $1,459,000. It was justly believed that this was too high an average. The press assumed that the average compensation should not exceed $600, whereas the existing compensation was nearly double that amount. There were 533 persons upon the pay rolls of the police department.
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ADAM WOLF.
A. W. MILLER.
OSCAR HEBEL.
W. H. WEBER.
WALTER E. SCHMIDT.
BOARD OF ASSESSORS, COOK COUNTY.
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It was recommended that the pay of the police, which averaged not far from $1,000 each annually, should be reduced to about $600. The same was true, it was declared, of the Department of Public works. It not only had too many employes, but they were paid too much annually. The health department contained forty-seven per- sons with a total pay of $62,000. Twenty-eight of the employes were called sanitary policemen and received a total compensation of $18,000 a year. It was declared by the press that this was unneces- sary. The mayor courageously recommended the entire abolish- ment of the health department with the exception of one competent and faithful superintendent, a medical expert, and a few clerks, and further recommended that the health department be placed under the control of the police department. It was likewise suggested that at least $75,000 could be saved annually by similar retrench- ment in the fire department. The mayor announced that in his opinion a large sum could be saved from the fees allowed the police justices. The same retrenchment was suggested for the tax com- missioner's office. The custom of the mayor in having not only a special clerk but also four special policemen to dance attendance upon him was condemned by the press as a piece of willful ex- travagance. The building inspector's office, with its clerks and twelve deputies, was regarded as largely unnecessary. However, it was admitted that no one could wisely recommend any reduction in the number of persons employed by the Board of Education- 698, with an aggregate annual compensation of $574,312. Educa- tion of the children must continue at any cost. In fact, with par- donable weakness the board yielded to demands from this depart- ment, which would have received no consideration from any other source.
In the opinion of the law department of the city of Chicago there was no constitutional limitation on the power of the Legislature to provide by law that all cities might certify to the county clerk to the amount which they respectively required to be raised by taxa- tion for the years 1873 and 1874, and that it thereupon became his duty to estimate the tax due from each person by extending the amounts thus certified against the assessed and equalized valuation of property for the year. The taxes of the years 1873 and 1874 became by the laws of the State a lien upon realty on the first day of May in those years, and the Supreme court had frequently decided that after taxes had become a lien they so remained until paid. However, they became a lien not by virtue of the assessment and levy, but by virtue of the statute, and the assessment and levy were the only means of ascertaining the amount, the payment of which would discharge the lien. Under this view, if such taxes could be collected ultimately, the city would have assets sufficient to meet the requirements of annual expenditure and the liquidation and in- debtedness.
Vol. II-24.
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HISTORY OF COOK COUNTY
Mayor Heath in his message of April 30, 1877, called particular attention to the finances of the city. The appropriation for 1875 was $5,123,905 ; for 1876, $4,045,526; and for 1877, $4,012,002. A great portion of the appropriation for 1876, owing to a change in the financial year, covered a period of only nine months, while that for 1877 covered a full year and included over $300,000 for sewer- age. The saving in 1876 over that of 1875 was declared to be $1,111,403. Of the amount outstanding on April 1, 1876, over $290,000 consisted of taxes for the years 1869 and 1870. The tax warrants for those years having been destroyed in the great fire, the balances were largely uncollectible, and during 1876 were practi- cally stricken from the books. On the 1st of April, 1876, there were outstanding certificates of indebtedness amounting to $3,484,- 856. By April, 1877, that amount was reduced to $956,115, but there had been issued during the year $150,000 of the new form of revenue warrants to retire the same amount of old certificates. The total certificates and warrants outstanding on April 1, 1877, were as follows :
Old certificates issued prior to April 1, 1876. 956,114.89
New revenue warrants on tax levy of 1875. 205,392.59
New revenue warrants on tax levy of 1876. 2,300,485.52
New revenue warrants on tax levy of 1877. 339,900.00
Total $3,801,893.00
On April 1, 1877, the total bonded debt of the city was $13,- 454,000. Nearly the whole drew 7 per cent interest. The mayor said: "The remarkable growth and confidence in Chicago securi- ties during the past year is shown by the fact that the past-due 7 per cent paper issued by the previous administration has lately sold at a premium in New York, while our own bankers and business men have offered us several hundred thousand dollars at 7 per cent, which has been declined for the present. Only nine months ago the finance committee, comptroller and mayor were compelled to beg for funds while offering interest at 8 per cent per annum. The reason for this change is principally due to the fact that the rev- enues of the city have been collected thoroughly and the expenses reduced inside of the income."
At the close of the fiscal year in April, 1877, the total enrollment of children was 40,835. During the succeeding year it increased to 43,512, showing an increase nearly equivalent to the capacity of four twelve-room buildings. It was estimated that there were not less than 25,000 children of school age in the city who could not or did not attend school.
During 1877 satisfactory progress in public improvements under- taken previous to September, 1876, were made under the manage- ment and control of the Board of Public Works. On that date the board was summarily abolished and its duties and authorities were
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vested in the mayor. There was inaugurated a general decrease in the number of persons employed by the city and in the salaries paid. The expenses of the department were reduced fully one-half under the strenuous new management. The reductions by dismissals from the water department alone amounted to $30,000, and the total amount of savings by reduced salaries in the whole department was $92,500. The total amount received from water tax collec- tions was $833,963, being a considerable increase over that of any previous year. The total expense of operating and maintaining the waterworks was $281,700. It was proved that the revenue to be derived from water tax collections would be sufficient not only to pay all running expenses, salaries and interest on water bonds, but would carry on all necessary water pipe extensions, pay for ma- chinery, etc.
During the year ending March 31, 1877, the number of patrol- men in the police department was reduced from .565 to 482. In- efficient men were weeded out and dismissed. The amount given to this department for the fiscal year was $504,984. A few changes in the fire department were made, and as a whole that branch of the city service was efficient and up to date. The health of the city was constantly improving under advanced sanitary conditions and under the exertions of the energetic officers in charge of the de- partment. The House of Correction was well and economically conducted under adverse circumstances. The sanitary conditions of the buildings were pronounced good. The prisoners' labor real- ized a considerable sum during the year. A separate prison for females was demanded by the press and the mayor. The latter further recommended that the young should be separated from the old and that hardened criminals should not be permitted to mingle with light offenders.
In April, 1877, the mayor closed his message by saying: "Our financial condition is now healthy and prosperous. The credit and good name of our city are restored. The expenses of all the de- partments have been reduced without impairing the public service in any particular. On the contrary it must be apparent to all who have examined the question that the large reduction in the number of city employes has benefited the service departments and in- creased their efficiency." He recommended that the sewerage under contract should be completed without unnecessary delay, and that should the school taxes past due be collected, new buildings to accommodate all children ought to be constructed.
The city treasurer reported for the year ending December 31, 1878, that the total receipts were $6,759,212, less $594,285 on hand at the beginning of the year. At the close there was on hand a total of $217,102. The school fund tax collected amounted to $238,785.
On April 28, 1879, Mayor Heath in his annual message reviewed
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HISTORY OF COOK COUNTY
the condition of the city departments during the past year. He stated that the bonded debt was $13,043,000, and that it had been reduced $414,000 since July 12, 1876. At the latter date the out- standing illegal certificates of indebtedness amounted to $3,011,329. By April 28, 1879, all such paper except $249,000 had been paid. On July 12, 1876, the credit funds of the city had been drawn upon to meet deficits to the amount of $1,800,000. These overdrafts to the amount of $900,000 had been paid by April 28, 1879. On July 12, 1876, there were no funds in the treasury with which to pay the salaries of employes and about five months' pay was then past due. Since that date the tax levies of 1873 and 1874 were legalized and judgments against delinquents were secured. The mayor boasted that during his administration a total of good assets and taxes to the amount of $1,230,388 was legalized. By deducting from this total the amount of outstanding certificates and overdrafts on the treasury, there was left a net balance in the treasury from these resources of over $81,388. There was left in the treasury after paying outstanding liabilities on illegal certificates and restoring credit funds overdrawn total net assets of $636,321. There were also other funds to the credit of the city not specified above. Sev- eral hundred thousand dollars in floating obligations against the city were paid off during this administration. Many important law suits concerning tax levies, etc., were decided in favor of the city by the Supreme court. In 1784 the surplus in the water depart- ment was $91,174 and in 1878 was $359,731, showing an immense increase in revenue from that department. In 1874 street cleaning and repair cost $269,168, and in 1878 $136,002, showing also an immense gain. The same gain was shown in the fire, police and health departments. There was a saving of over $200,000 in the management of the police department alone. The expense of con- ducting the health department was cut down more than half. On the first of January, 1877, about 700 city cases were pending in the court of record, exclusive of quasi criminal and tax and special assessment cases. On January 1, 1878, there were only 446 cases pending and the expenses of the law department were considerably reduced. The cost of lighting the city with gas was also greatly reduced, notwithstanding a great increase in the number of lamps. Though the city had appropriated large sums to liquidate outstand- ing claims and to construct the city hall, the amounts required to be raised by taxation in the annual appropriation bills were greatly reduced. The amount levied in 1874 was $5,466,692. The amount required in 1879 was $3,766,450.
The management of city affairs by Mayor Heath from 1876 to 1879 was extremely satisfactory to the citizens of Chicago. The newspapers paid him high compliments. His administration was heralded as the soundest, ablest and most economical the city had ever enjoyed. At the close of his period of service in 1879 the
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council unanimously passed the following resolution : "Resolved, That the thanks of the City Council are due and are hereby tendered to the Hon. Monroe Heath for the able and efficient manner in which he has managed the affairs of the city during his administration." In reply the mayor said, "This resolution is a very flattering one. If I have been enabled in my administration to do anything for the good of the city it has been because I have had the cooperation of the council. If I could I would like to have a resolution passed thanking the council for its hearty support of my administration."
On September 3, 1880, the total city indebtedness amounted to $12,752,000. No further indebtedness could be contracted until the valuation of city property should exceed $225,000,000. The emer- gency policy of issuing scrip to meet current expenses in antici- pation of future collections had cost the city annually for several years about $200,000.
The controller reported that for 1880 the appropriations for mu- nicipal purposes amounted to $3,063,911 and for 1881 to $3,183,- 400. To the first was added $478,000 of back taxes and savings, and to the latter $550,000 of the same. The revenue for 1882 was as follows : Two per cent upon the assessed valuation of $119,151,- 951; cash from licenses, rents, etc., $350,000; cash from the Gage assets and other savings, about $150,000; total, $2,883,039, less col- lection fees, $2,823,464. As this sum was less by $359,936 than the appropriations for the preceding year, some step to supply the deficiency would have to be taken. The controller suggested that this might be met by increasing generally all the city licenses. In- creased expenditures in any department were out of the question unless the revenues should be increased. The tax limit might be raised or property owners might be made to pay the cost of remov- ing dirt and of building street intersections, thus saving annually an immense sum. He favored taxing the telegraph, telephone and all other companies or individuals enjoying special privileges, and thought this could be done, though an unsuccessful attempt to levy a tax on the capital stock of telegraph companies was made a few years before. As saloons occasioned the infractions of law, the control of which cost the city so much, their licenses, it was ar- gued, should be increased to cover such cost. Why should not railroads, saloons, lumber yards, vehicles, draft animals, manufac- turers of certain articles, etc., pay special revenue to the city for their special protection ?
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Previous to 1875 the municipal authorities were the sole arbiters of valuations and collections under the control of the county offi- cials. In 1872 the valuation of real and personal property aggre- gated $284,000,000, but by 1880 had been reduced to $117,000,000, though the city had practically doubled in. population and wealth. In addition, the Legislature in 1879 limited tax levies to 2 per cent and enacted that the valuation of real estate for 1880 should re-
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main the same for four years, though the following year a law was passed that real estate valuation could be changed in 1882. The controller in 1881 called attention to the inconsiderable tax paid by large corporations compared with the property owned. All the railroads centering in the city, except the Illinois Central, paid into the treasury in 1880 $73,359.79; at the same time one mercan- tile company, including two of its members, paid in $86,647.85. The inequity of this state of affairs was apparent. The receipts of the city for 1881 were $9,697,416.85, less $1,080,775.32 on hand at the beginning of the year. At the end of the year there was on hand $755,479.26. The total bonded debt of the city on De- cember 31, 1881, was $12,752,000.
During 1881, 17.86 miles of streets were paved with cedar blocks and 6.14 miles with macadam, out of a total of 25.73 paved. All street lamps were either oil or gas. Electric lights had not yet made their appearance generally for city use. Over twenty-five miles of sewers were built. The new city hall was so far com- pleted that the roof was put on. Over $95,000 was spent on bridges, viaducts and repairs. The Fullerton avenue conduit works were mainly built. The Washington and LaSalle street tunnels were paved with wooden blocks. Thirty-four bridges spanning the river and its branches; twenty-two were of iron and wood com- bined, eleven wholly of iron, and one of wood. Four had been in operation fourteen years; three, thirteen years; three, twelve years ; four, eleven years; ten, ten years; one, nine years; three, eight years; one, seven years; four, five years, and one, one year. Nine of the bridges were crossed by street railways. A new viaduct at Halsted and Sixteenth streets, was built at a cost of $17,685. Harrison street viaduct was built at a cost of $96,419 and Sanga- mon street viaduct at a cost of $98,977. The police force in 1881 consisted of 506 men. This department cost the city $577,039 during the year.
Mayor Harrison in his message of May 9, 1881, called special attention to the following conditions of city affairs: In 1878 his predecessor issued city scrip to the amount of $2,238,000. This scrip depreciated to such an extent as to entail a loss of from 5 to 10 per cent upon employes and other creditors of the city. It also caused a loss to the city of from $150,000 to $200,000 per annum. During 1879 the city administration was enabled to reduce the out- standing scrip to less than $1,500,000 and during 1880 to less than $590,000. It was expected that during 1881 the existing scrip would be entirely retired. During the past twenty-one months every city employe had been paid in cash. The city being unable under the law to borrow a dollar and not having ready money to meet its semi-annual interest, was compelled to hypothecate interest coupons when due and to pay a heavy commission for having them carried until taxes could be collected. These commissions amounted to from $50,000 to $70,000.
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HISTORY OF COOK COUNTY
After 1879 the city promptly met such interest and paid not one cent in commissions. This administration thus far paid the Hayes- Colvin certificates which, though illegal, had been met in full with interest, the whole amounting to $275,643. The city likewise paid off large sums of water bonds and refunded at a lower rate of in- terest a large amount of sewerage and municipal bonds. By so doing it effected a saving in interest of $54,215. During 1879 and 1880 the administration, it was claimed, saved $1,050,000. This amount, added to the taxes of previous years collected and to cash from various sources, enabled the administration to contribute $550,000 to the obligations of 1881 and left on hand $1,500,000 to meet the expenses of 1881-82. Owing to the small amount allowed for a probable deficiency in tax collections it was realized that there would likely be necessary a large increase in the revenues from licenses. It was demanded that assessors should be required to discover and reveal men of large property who habitually evaded a just taxation.
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