USA > Pennsylvania > Philadelphia County > Philadelphia > Municipal government history and politics, Vol. V > Part 5
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BOARD OF REVISION OF TAXES.
For some time after the consolidation, this important depart- ment was made up of a Board composed of the Receiver of Taxes and City Commissioner. The Assessors were elective ward officers, and State and city taxes fell upon the same class of objects. The assessments were based on the State triennial assessments, and the jealousy which existed between the coun- ties and the State resulted in low assessments and high rates. The primary object of the local Assessors was to make as low returns as possible, so that their districts and county should bear the least possible share of the State burden. The objection to this course was two-fold : It necessitated high tax rates, and the elasticity of valuations caused the burden to be unequally distributed, the central wards were rated higher than the out- lying wards, and the generally exercised discretion of the Asses- sors opened the door to a vast amount of favoritism when there was no fixed standard of value. With the institution, in 1865, of the present Board of Revision, made up of three citizens appointed by the judges, more intelligent measures followed. Mr. Cochran, appointed in 1866, seeing the defects of the act
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Fourth Period, 1854-1887.
of 1865, drafted and secured the passage of the act of 1867. About this time the State relinquished to the county all real estate for purposes of taxation. The valuation through the efforts of Mr. Cochran was brought up to something like the approximate real value. In 1873 the Assessors were made the appointees of the Board, and were thus relieved of influ- ence from their neighbors, upon whom they had to impose the most onerous of all duties, that of tax bearing and to whom they had to look for reelection.
Under the readjustment of values the taxable assets of the city rose from $159,590,142 in 1866, to $445,563,317 in 1868, and the rate fell from $4 to $1.40. The mistake was that it was reduced too much; had it been retained at $2, or even $1.80, we should not have needed the subsequent funding of the floating debt, but councilmen appreciated the popularity of the idea involved in the fatal theory of lowest rates and highest appropriations.
EXPENDITURES.
In addition to levying the tax and fixing the rate, &c., the power. of control of the expenditure was vested in councils. They not only said how much and for what purposes money shall be spent, but they had in many instances the power of selecting the disbursing or rather executive agents, such as Chief Commissioner of Highways, &c. They could authorize loans for municipal purposes, and their power to plunge the city into debt was, until very recent years, unlimited. Certain restrictions looking toward an accurate and systematic control of affairs were indeed imposed, but all to little purpose, until the passage in 1879 of the "Pay as you go Act." As early as 1856 it was made the imperative duty of councils to state items of expenditure in making the appropriations. No debt or contract was to be binding unless authorized by law, with an appropriation previously made. The annual deficit, however, from '54 to '61, was $271,749; from '61 to '67, $593,896 ;
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The City Government of Philadelphia.
when the aggregate was transferred to the funded debt. For the decade from '67 to '77 it averaged $1,045,172 per year. In 1878 the floating debt was again funded to the amount of 10 millions, making in all $17,569,458, which have no apology for existence save the failure to collect and levy sufficient taxes to provide for the city's current expenses.
During this time the city warrants bearing 6 per cent. inter- est were hawked about the street and sold at a discount. The Controller countersigned, and the City Treasurer paid when and as often as they pleased, and " a friend round the corner" drove a thriving trade in purchasing warrants at a discount when there were millions in the city treasury. City warrants were also a favorite temporary investment for the banks. When the warrants were safely in the hands of "the friend," the treasurer would advertise that such and such warrants would be paid. On January 1st, 1866, the funded debt was $33,837,793.96. On January 1st, 1878, it was $61,721,541.70, and the floating debt had mounted to the prodigious figures of $11,893,810.09. The Receiver had collected $104,531,947.01; the city had received from other sources, $65,253,995.65. The expenditures had increased from ten to fifteen millions per annum, and, despite the new officer for collecting delinquent taxes, the books showed $9,495,145 delinquent in 1879. There is now rarely more than $600,000 delinquent in any one year.
"PAY AS YOU GO" ACT OF 1879.
Prior to 1882, the city's money was deposited in favored banks-the People's Bank, controlled by the "Ring," with a capital of $150,000, generally having a balance of fron $400,000 to $900,000 of city money. This evil was cured, in a great measure, by the ordinance of 1882, requiring the city money to be deposited among the banks in a ratio to their capital ; but the great check on the carnival of extravagance and reckless disregard of law and sound policy was created in 1879 by the enactment of what is known as the " Pay as You
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Fourth Period, 1854-1887.
1 Go Act." The great principle of this act is that when councils have made the rate and calculated what it will yield, they are obliged to keep their appropriations within the sum so yielded.
CONTRACTS.
When it is stated that the control of making contracts is in the hands of councils, the duty to see that they have been executed under the charge of the Controller, the consideration of the many nice questions which arise is one of practice rather than organic law, and cannot be here entered upon.
The right to file liens for municipal charges against adjacent property-owners was the creation of the Legislature; it is not otherwise inherent in a municipality. Its exercise has in- volved many nice points of law for the exposition of which we must refer the curious reader to the learned profession which it is hoped may make clear what the courts and law- makers have certainly failed to do, for as to a complete knowl- edge of this particular branch of the law, the remark of Lord Coke applies most fittingly : "God forbid that one man should know all the law."
SINKING FUND.
The creation of the sinking fund dates back as far as 1807. Its trouble has been that it did not sink, and this has been due to two causes: defective execution of the law and the constant creation of new debt.
It was carried on the basis of the last period, and its calcu- lations based on interest at 6 per cent. compounded, and kept closely invested in the city loan to be purchased at par. The change in the rate of interest has proved a disturbing element in this computation, and the commissioners have not compelled the city to live up to the letter and spirit of the law by appro- priating yearly enough money to sink the principal in thirty years, at the reduced rate of interest. The increased price of the investments permitted them to buy. Again, instead of
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The City Government of Philadelphia.
paying its bills at the end of each year, the city for years was found with an annual deficiency in current expenses almost exactly equal to the appropriations to the fund. Any child could see that on this basis the city would never be out of debt; add to the above the startling factor of the funded debt doubled in ten years, and we have the problem of paying the debt reduced to a question of arithmetic like this: Given a tub half full of water with two bung holes in the side capable of discharging one gallon each per minute, a spigot that will pour into the tub one gallon in five minutes, how long will it take to fill the tub if you open both bung holes and turn on the spigot ?
Happily for Philadelphia the act of 1879 stopped the yearly deficit, the manufactory of new debt has been closed and the sinking fund has of late been prudently managed. In point of fact the debt is now being reduced at the rate of nearly two millions a year. The last loan was made payable in annual series of a million a year. The credit of the city is good, and any new loans, which it may be necessary to place, to pay off the balance of loans not sunk which shall mature without com- plete provision, should be placed at 3 per cent. to 4 per cent. on call by lot.
It is but fair to say that while nobody believes that the city has often secured 100 cents on the dollar to represent its various loans, there yet stand to its credit certain valuable assets in addition to the securities in the sinking fund, which, while perhaps not productive in a money point of view, are yet beyond price for the healthy life of a great city. Gas, water, schools, bridges, Fairmount Park, and the war debt are their own excuse and justification. The criticism is that all these could have been had in better shape and at less cost had the finances and city government generally been honestly conducted on some scientific basis. As it is, the so-called better class of citizens must charge the profit and loss to their own culpable indifference and credulity. When the stock- holders of this great corporation wake up to the fact that the
61
Fourth Period, 1854-1887.
conduct of its affairs is a vast business to be conducted on business principles they will stop confusing such business interests with the Tariff and the Maine election.
THE REFORM MOVEMENT.
After the war began an era of wild expenditure. This was partly due to the inflated character of all expenditures, per- sonal and public, and partly to the fact that men's minds had been so strained by the supreme question of national existence that all matters of local administration seemed trivial compared with the necessity of holding up the hands of the general government. During this period Philadelphia was largely Republican and always loyal. To many who felt strongly on this subject, party fealty became as sacred as religion. They considered the country endangered if a Democrat was elected to councils. This feeling created an atmosphere which made possible the state of affairs that followed : so-called " practical politics " were reduced to a science and what is known as " the Machine" was brought to a high state of perfection. Nothing could have been better adapted to the growth of the Machine and the solidarity of its power than the constitution of our city government. Thirty-two departments or executive arms, all independent of each other and of any head save councils, divided the management of affairs and reduced tangible responsibility to a minimum. The Gas Trustees and political leaders organized disciplined bands of followers who con- trolled their respective divisions and wards, and at a nod set up and pulled down Mayor, Treasurers and Controllers, Councilmen and Legislators. It was well understood that a seat in councils was worth money in those days. The public alone had no voice in the matter, though for this it was responsible, for the citizens received their party tickets and voted them with the bigoted zeal of Puritan witch- burners.
The incipiency of the modern independent movement may be assigned to the passage of the act creating the Public
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The City Government of Philadelphia.
Buildings Commission, and so strong was the feeling in favor of a repeal of the bill, expressed at a public meeting and elsewhere, that a majority was nearly obtained for the purpose. The few obstructing votes could have been pur- chased for $1,500; but the gentlemen heading the movement were not "practical" politicians, and the repeal measure failed. The next fall, $15,000 were contributed to support an indepen- dent municipal ticket, which polled only 3,500 votes, and the incipient reform movement seemed dead. Four important acts were passed, however, which made subsequent reform more possible. First, the abolition of the slip ticket-that is, voting for all officers from Governor to division officers on a single ticket. Second, the modification of the registry law, which was so arranged that the franchise was practically in the control of the machine. Third, the divorce of State and municipal elections, which were assigned to different ends of the year. Fourth, substituting salaries for fees. It is not to be inferred that during all this time there were no fearless nor conscientious men in councils. From time to time warning , voices were raised, but the indifference of the public and the vices of the system were so great that corruption and mis- management were absolutely invited guests. The public was like a deaf adder, whose ear no voice could reach. At length a feeling of unrest and revolt began to manifest itself, and about 1874 a few gentlemen in councils, representatives of both parties, became persistent in their denunciation of the existing state of things, and, under the lead of a few men who deserve well of the Republic, a movement was started that has effected incalculable good in Philadelphia. In 1877, by the aid of independent votes, a Controller was elected who, for the first time, controlled. An electric light was thrown on many abuses which had long been patent to those who had eyes to see. A halt was called to the reckless disregard of law up to that time manifested by all departments, and the public became thoroughly aroused to the situation. In 1880 the Citizens' Reform Committee of One Hundred, consisting of
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Fourth Period, 1854-1887.
well-known Republican merchants and professional men, was organized. They carried the war into Africa, fought the Ring at every point and at all points for city and county officers, for Councils and Legislature-the plan being to wait for the nominations of the two great parties and endorse one or the other of the candidates, or even nominate candidates of their own. They sent tickets to every citizen, and created the class of vest-pocket voters-men who come to the polls with their tickets made up, to the confusion of " the boys." They prosecuted election frauds, and, what is more, secured many convictions, which caused a wholesome respect for the sanctity of the ballot-box. They changed for a while the complexion of councils, elected a reform Mayor and Receiver of Taxes, caused the repeal of the infamous Delinquent Tax Collector's Bill and the equally notorious and obnoxious Recorder's Bill, and generally made a more decent observance of the law necessary throughout the city. In its nature, however, the remedy was esoteric and revolutionary, and, therefore, neces- sarily ephemeral. It could not retain the spoils system and thereby attract the workers. Its candidates, when elected, often betrayed it and went over to the Regulars, whom, they foresaw, had more staying qualities. Its members became tired of the thankless task of spending time and money in what must be a continuous, unending battle. The people became restive, and refused their support to what jarred on their conservative ideas and what they were pleased to call the dictation of an autocratic, self-constituted body. The cry was raised : " Who made thee a ruler and a judge over us ?" They became tired of hearing Aristides called the Just.
In 1883 the committees' candidate for controller was de- feated in a pitched battle, and the following spring the Reform Mayor was beaten by over 7,000 votes by the most advanced type of a machine politician, who has since been im- peached by his own party in common council for pecuniary malfeasance and only saved by the postponement of trial under dictation of the leaders who are now enjoying an apparently complete restoration.
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The City Government of Philadelphia.
One difficulty which was unsurmountable lay in the consti- tution of councils; it took three years to clean them out, and then the fight had to begin over again ; this fight, therefore, had to be carried on annually in thirty-one wards, and it is obvious that nothing but an organized machine could be relied on to keep it up. Between the two parties you can rally a casting vote for an occasional supreme effort, but a sustained effort to keep up the tone of a system which could only be endurable by unattainable personal perfection is obviously unscientific and inadequate. It is no discredit to the com- mittee to say that they did the possible, but could not do the impossible. They left us valuable legacies, a greater degree of purity of the ballot-box, a greater respect for law, a sense of power in the people which ever and again upsets party expectation and defeats ring nominations, and they made the Bullitt Bill inevitable. A quarrel between the State ring and the city ring made immediately possible, in 1885, the passage of the Reform Bill which purports to be a step toward a radical cure of evils inherent in the system. These few observations on the reform movement are of neces- sity meagre and incomplete; its complete record would fill a volume, but we hope they will give our readers an idea of the sequence of events and the moving spirit.
One other, and that the most important, deduction is to be drawn from the history of the last decade, and that is this: errors of judgment may have been made by the best friends of better government; individuals, the most trusted, may have proved weak at critical moments ; selfish and interested motives may have been invoked or may have supplied the mainspring of action to some ; the cause itself has from time to time appa- rently collapsed ; but, though individuals and particular move- ments may have gone down and been forgotten, there has been a steady advance toward a wider and more serious comprehen- sion of the magnitude of the issues at stake in the progress toward the best attainable government of a great city, and step by step points have been made which are gained forever
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Fifth Period, 1887.
and are contributions to the solution of the problem, not in Philadelphia alone but in the Republic at large.
THE REFORM CHARTER OR BULLITT BILL.
In his annual message of January 4, 1876, Governor Hartranft called the attention of the Legislature to the evils of municipal government, concluding with this pointed lan- guage: "There is no political problem that, at the present time occasions so much just alarm and is obtaining more anxious thought than the goverment of cities."
On May 5, 1876, the Legislature passed an act authorizing him to appoint a commission to devise a plan for the govern- ment of cities. In December, 1876, eleven commissioners were appointed, and in December of 1877 they drew up an able report, and submitted a well conceived bill for the government of cities. When the bill was submitted to the Legislature, by influence of the party leaders in Philadelphia, it was sent to a committee and promptly smothered; but the seed had been sown and the experience of the ensuing eight years had its effect. In 1882, a joint committee of councils, of which S. Davis Page was chairman, prepared a bill entitled " A Method of Municipal Government for the City of Phila- delphia." This bill was promptly suppressed by councils. In the session of 1883, a bill substantially the same was presented in the Legislature by Mr. W. C. Bullitt, member of the House from the eighth ward. Although the Ring was able to defeat it then, as alluded to above, a quarrel among the leaders made it possible to pass it in 1885, its operation being deferred to the spring of 1887, on the ground that the citizens should pass on the man who was to be entrusted with such vast powers. During the consideration of the bill in the House public meetings were held and the tenor and object of the measure expounded by the press, and the issue at last narrowed down to the question of deferred or immediate operation when passed.
5
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The City Government of Philadelphia.
Such very briefly is the history of the passage of the Bullitt Bill and as briefly we would summarize its provisions.
ACT FOR THE BETTER GOVERNMENT OF CITIES OF THE FIRST CLASS, PASSED JUNE 1, 1886.
The Mayor is made by this act chief executive officer, and the executive power is vested in him and in certain depart- ments. It is the duty of the Mayor to be vigilant and active in causing the ordinances of the city and the laws of the State to be enforced. He calls special meetings of coun- cils and at least once a year advises them by annual message. He calls together once a month the heads of departments for advice, and may call on them for reports. Records are kept of such meetings. The Mayor is ex-officio member of all Boards. During the recess of Councils he may fill all vacancies where he has the right of appointment. He may disapprove items of appropriation bills. He may appoint without notice, at any time, three persons to audit the accounts of any department. These are the following executive departments :
I. Department of Public Safety. II. 66 66 66 Works. III. 66 Receiver of Taxes.
IV. " City Treasurer.
V. 66 66
66 Controller.
VI. 66 " Law.
VII.
" Education.
VIII.
" Charities and Correction.
IX. Sinking Fund Commission.
No new departments shall be created. Councils shall provide by ordinance for such bureaus, clerks and other subordinate officers required by departments. Each depart- ment may prescribe rules and regulations not inconsistent with law for its own government, and shall report to the Mayor
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The Bullitt Bill.
and councils when required. The Mayor may, by written order giving his reason, remove from office any head of department appointed by him.
DEPARTMENT OF PUBLIC SAFETY.
This department shall be under the charge of one Director, and it includes the care, &c., of all affairs relating to police, public health, and inspection of buildings, fires, telegraph alarms, &c. The Mayor, in cases of emergency, may take command of the police and appoint special patrolmen. Mem- bers of the fire, police, and telegraph forces must be uniformed. Pensions are provided for firemen and policemen. Dismissals from police and fire forces, unless requested in writing, shall only be made by a court of trial composed of equals or superiors in same force. This court shall be appointed and sworn by the Director. The Board of Building Inspectors shall continue with the powers and duties now vested in 'it by law.
DEPARTMENT OF PUBLIC WORKS
Shall be under charge of one Director. Its province covers the gas and water-works, grading, repairing, cleaning, and lighting of streets, the construction and repair of public buildings, bridges, public squares, real estate (except such as may be used hereafter for educational or police purposes), surveys, engineering, sewerage, drainage, and dredging, and all matters affecting the highways, footways, wharves, and docks. The powers of the Public Building Commission, however, are left untouched.
DEPARTMENT OF RECEIVER OF TAXES.
The Receiver of Taxes shall be the head of this department. He shall be elected and give security as now provided by law. All officers charged with the duty of collecting taxes and
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The City Government of Philadelphia.
funds derived from loans and licenses shall be attached to and under control of this department. The Boards of City Trusts and Revision of Taxes shall be appointed and perform their functions as heretofore.
DEPARTMENT OF CITY TREASURER.
The City Treasurer shall be the head of this department, he shall be elected, &c., as now provided by law. No person is eligible unless a resident for seven years.
He shall demand and receive all moneys payable to the city, and pay all warrants duly issued and countersigned.
No money shall be drawn from the City Treasury, except by due process of law or upon warrants, signed by the head of the appropriate department and countersigned by the Con- troller, which shall state the consideration of the same and the particular fund or appropriation to which the same is chargeable. He shall keep distinct accounts, make daily de- posits in such banks as councils may direct, and make daily reports to the Controller.
DEPARTMENT OF CITY CONTROLLER.
The City Controller shall be the head of this department, and shall be elected as now required by law ; he shall keep separate accounts of all items ; audit all the city accounts ; see that the appropriations are not overdrawn ; shall not approve warrants containing items for which no appropriation was made; may require evidence of the justness of each claim ; perform all duties required by law; contents of every con- tract involving an appropriation must be filed in his office ; shall make yearly reports to councils.
DEPARTMENT OF LAW.
The head is the City Solicitor, elected for three years; he shall have as many assistants as councils may authorize ; he is
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The Bullitt Bill.
the legal adviser and attorney for the city, and all its depart- ments and officers ; prepares all contracts and approves the same; makes daily returns to Controller of all moneys re- ceived by him ; he approves all security and keeps a registry of all contracts, bonds, &c.
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