USA > Wisconsin > Milwaukee County > Milwaukee > History of Milwaukee, city and county, Volume I > Part 41
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Continuing our quotation from Larson's history the author says, "The charter also provided that each ward should be a school district, the alder- men acting as school commissioners. But the aldermen soon lost this distine- tion. By the law of February 3, 1846, a board of school commissioners was created, composed of three commissioners from each ward appointed for three years by the mayor and council. To this board the complete management of the school system was entrusted, though in the matter of finance it was some- what dependent on the council."
Municipal Revenues .- The chief dependence of the city for revenme had to be upon some form of direet taxation, for in the absence of a well organized police department but little revenue conld be collected from fines. "A wave of temperance sentiment," says Larson, "was just then sweeping over the state which threatened to deprive the city of all income from licenses issued to liquor dealers. In 1853 the state by referendum actually declared for pro-
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THE OLD COURTHOUSE AND JAIL IN THE EARLY '60s
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hibition, but the vote was taken merely to determine publie sentiment, and had no legal effect. Milwaukee opposed prohibition."
Assessments made as the basis for general taxation were as a rule. loose and unsystematie, and often did not bear mueh relation to actual valnes in those early years of the newly incorporated city. In 1846, the assessed valua- . tion was $1,428,370, or $142 per capita. Five years later the assessor reported $1,995,616, or $99 per capita. Five years later still (1856) the per capita valuation was only $80; but in 1870, after a determined effort had been made to enforce the assessment laws it rose to $650 per capita, showing the effect of more thoroughgoing methods of making assessments.
Naturally the city finances benefited greatly by such reforms with the result that its credit stood higher and its ability to enter upon and carry out much needed improvements was much increased. In 1849, the "ward funds" were abolished and the accounts transferred to the general fund.
Special assessments for street improvements were also resorted to as in all modern cities. "The general practice in making local improvements," says our author, "was to assess a large part of the cost on the property own- ers most directly interested. There is nothing peculiar about this practice, but we must remember that in a city still rapidly developing both in popula- tion and in settled area, the cost of necessary improvements would be great from the beginning.
"In the earlier years of charter government such work seems to have been paid for, as follows: two-thirds by the property owners of the vicinity and one-third by the city. Ordinarily these assessments were for street purposes, but other forms of local improvement were sometimes paid for in the same way. In 1849, the aldermen of the Fifth Ward were empowered to build a wharf and to dredge the river in front of it, the cost to be assessed on the lots fronting the wharf in proportion to the frontage. The next year we find similar legislation for the Fourth Ward, and in 1851 the Third Ward was authorized to proceed in a like manner. In all these instances the property owners seem to have been assessed for the entire cost of the wharves."
Changes in Methods .- But it was found extremely difficult to collect the taxes under the special assessments, as the amounts were large and the prop- erty owners were frequently unable to meet the payments. In 1849 and 1850, so large a part of such taxes remained unpaid at the close of the fiseal year that it was deemed unwise and impracticable to enforce collection. In 1851, the Legislature sanctioned a new method of payment, a method with which we are familiar at the present day, namely : "on completing the work under- taken, the contractor might receive a certificate stating what amount was due and what parcels of real estate were responsible for its payment. These certificates drew interest at the rate of twelve per cent and were transferable. In case the owners of the lots specified neglected to pay what was due judg- ment could be obtained in the circuit court." This method proved to be a satisfactory solution of the problem.
The Charter of 1852 .- In the early '50s it began to be realized that the old charter needed revision especially in respect to the finances and taxation. There was a great diversity of views among the people but eventually a charter
INDEPENDENT TICKET.
. For the Council. DANIEL WELLS, iP. WILLIAM A. PRENTISS.
For the House of Representatives.
HENRY C. SKINNER, MORRIS S. BARNETT,
WILLIAM SHEW, GORDON C. CONE,
LUCIUS I. BARBER.
For Commissioner.
For Assessor.
FREDERICK B. OTIS.
JAMES Y. WATSON.
For Treasurer.
For Coroner.
GEORGE D. DOUSMAN.
HENRY MILLER.
MILWAUKEE. Aug 30th 1838 TO DANIEL WELLS, WILLIAM A POESTIES, HENBY C SKINNED MURBIS S HABNETT. GORDON (' COND, WILLIAM SHEW, DOJ Lucies 1 BABDED.
Gentlemen :-
We herein enclose to you the proceed. ings of a convention held at Praine Vil- lage on the 28th just . by which you are nominated as Candidates for the Legisla- Ove Asserably, to be supported at the next olection.
In these proceedings the undersign- ed were appointed a Cominitiée to notify you of your nomination, Dod require of you pledges to resign pour offices, ifelected. 89 soon aa one half of the term of service. con fixed by lew havexpired and to use every i fort to procure from Congress an alteration oftbo organic act of our Terri- tory, limiting the term of service of the members of the Legislative Assembly, to two years for members of the Council. ond oDe year for members of the loose of Rep- resentatives You are desired to notify us immediately by letter whether you will accept the nomination on the terms pro- posed by said convention
Very Respectfully. WM RROWN. JNO H TWEEDY. PHILIP SCHUYLER.
Committee
MILWAUKEE, Aug 319: 1838
Gentlemen-We hereby acknowledge receipt of your letter of the 30th iost an- bouncing to us our nomination by the Convention. held at Praine Village on the 29th inat, os candidates for the Legis- lative Assembly to be supported at the Dexi election We gratefully accept the Domination on the terma proposed, and cheerfully pledge ourselves, ifelected, to
resign our offices as soon as one half of the term of service now fixed by law has ex pired, and to use every effort to procure from Congress an alteration of the organ- ic act of our Territory, so as to limit the term of service of the membere of the Legislative Assembly to two years for members of the Council and one year for members of the House of Representatives Yours Respectfully, DANIEL WELLS, Jr WILLIAM A. PRENTISS, HENRY C SKINNER MORRIS S. BARNETT, GORDON C. CONE, WILLIAM SHEW, LUCIUS I. BARBER. To WM. BROWN, JNO. II TWEEDY, and PHILIP SENCYLEn.
To the Eloctors of Milwaukee and Washington Countice:
Tha undereigoed were nomioated by a convention Bt Praine Village ou the 28th ult aa Candidates for the Legislativa As sembly. to be sopported at the ensuing election
'Beheviog it to be the right of the people to require, and the duty of every Candidate to avow his views upon every cobject of future legislation, we here frankly declare the course we shall pursue, if elected, in relation to the cabal mod other subjects now agitatiog the public
It will be our first object, if elected, to secare to the settlers ou the Cenel Lauds, not merely their improvements, but the title to their lands, by the immediate sale thereof oo a credit of ten years, or on such a credit as the settlers themselves may pre fer, with soch guarda as will effectually preveot the competition of the speculator Our best object will be to sodace Con.
gress, if possible, to reduce the price of the even sections on the Canal Route to 81.25 Fer ecre, and to give a pre-emption right thereto.
Our third object will be the early sale of the residue of the canal loods do trims the most favorable to the settler, with a viewv to the rapid settlement of the country and the early and vigorous proseca- top of the work of the canal.
Asit respects the location of the Uni- versity landa, we suppose that Do mna can be elected, from any part of the Territory. who will aut vote for restricting the Com. missioners in the most positiva terms, oct to interfere with the rights of any pre-emp. tor or claimant
Ifelected, we shall also do every thing nout power to check that hasty and crude legialation which has lumbered our stat- ule books with laws of no sarvice but to the printer, and to procore such a reformo ofour lawe and present "county system" os is demanded by the wants and wishes of the people In short, fellow citizens, IS our pubhe course, upon these as well as upon every other subject of public 10. terest. we shall atrive, if elected, to truly represent the intereats end views of tho great body of the people, without re. gard to persons, partiee or localities DANIEL WELLS Jt WILLIAM A PRENTISS LUCIUS I BARBER. WILLIAM SHEW
Our fellow nominete Messrs Skisocr. Cone, and Barnett, residing in the cous. tre have had no opportunity to aff, x their Demes to this paper , but koowing their o. pinions upon three subjects, we do not bas. ilate to ssy 'bat they will erscot to thes pledge.
AN OLD-TIME CAMPAIGN DOCUMENT Issued in 1838
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THE MUNICIPAL GOVERNMENT
was agreed upon which was approved by the Legislature and enacted into law February 2. 1852. The area of Milwaukee in 1852 was but slightly greater than it was six years before. The new charter continued the old divi- sion into five wards. The form of government devised resembled very closely that of the old charter. The tax levies increased during the following years, as follows: In 1852, the total tax levy was $57,331, to pay the expenses of the city. the wards, and the schools: and to meet the interest on the public debt. In 1853, the levy was $64,719: in 1854, it amounted to $86,203; in 1855, to $105,800: and in 1856, it rose to $132,346.
"Thus the city taxes had more than doubled in five years, the increase being in part due to the higher tax rate and in part to the rapid growth of the city, the population of which inereased by abont 80 per cent in the same period. The next year (1857) the assessed valuation was doubled and the total of the city's taxes. (general fund, sinking fund, interest fund. ward funds and school funds) rose at onee to the amazing figure of $325,560."
In a review of the financial history of Milwaukee following the record as given above, Professor Larson notes that something of a revolution was pro- duced in Milwaukee when these figures were published. "A reform ticket headed by William A. Prentiss carried the day in the March election. A few days later the Legislature amended the charter by limiting the general city and ward taxes to $235.000 yearly." In the following year Mayor Prentiss was able to report that the tax levy for the year past (1858) had been $226,363 which was $77,725 less than that for 1857.
Railway Stocks and Bonds .- When the railroads began to be built the people were in a perfect frenzy to hasten their completion, and the city author- ized the use of its credit to assist in marketing their stocks and bonds. The city. in 1849 and 1851, subscribed to the stock of the Milwaukee & Waukesha Railroad Company to the amount of $234,000. But later the city issned bonds directly to the railroads who were required to keep up the interest. and when the bonds were dne to pay the principal. On these conditions the city issned bonds in 1853 to the amount of $800,000. The amounts were increased from year to year until in 1856 the aggregate had risen to $1,614,000. This in addition to its other indebtedness amounted to a municipal debt of nearly $2,500,000. It was evident, says Larson, that so large an amount of securities could not be thrown on the market without injuring the city's credit. Some of these bonds in 1854 sold in Wall Street at 70 cents. Before these issues had reached their maximum figure some opposition to further loans developed. Mayor Cross used his influence and even his veto against them when they were proposed. It all in vain.
For a considerable time it seemed as if a large share of the bonds would fall to the city to pay notwithstanding the conditions agreed upon. During the years from 1857 to 1859 several of the roads failed to pay the interest as it fell due, but in the end all the bonds were paid by the corporations respon- sible except two issues of $100,000 each which after prolonged litigation the eity had to redeem. the principal and accrued interest at the time of redemp- tion amounting to more than $400,000.
Of course in a general history of the municipal finances covering so long
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THE OLD CITY HALL AND THE HENRY BERGH FOUNTAIN
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THE MUNICIPAL GOVERNMENT
a period of years only the more important transactions can be mentioned in this review, though in Professor Larson's intensive study of the subject a multitude of details are given which may very well be omitted.
The "Albany Hall Movement."-After the tax levy for 1857 had been made publie a taxpayers' meeting was called at Albany Hall where resolutions were passed demanding a reduction of the tax just levied. The meeting also de- manded the repeal of all laws authorizing bond issues and the reenactment of laws limiting the taxing power of the council. At a later date a meeting was again held at the same place at which a report was presented by a com- mittee appointed at the previous meeting to investigate the finances of the eity. In this report the alarming state of the situation was revealed.
Resolutions were adopted at the meeting ealling on the Legislature to make changes in the eharter. As a result the Legislature amended the charter so as to provide for a two-chamber system in the council, and other important changes were made one of which limited the amount of revenue that could be raised each year for city purposes to $175,000. Also all laws permitting bond issues by the city were repealed.
Efforts at Readjustment .- The two years following the publication of the Albany llall report brought but slight alteration in the financial situation of the eity. At the beginning of the fiscal year for 1860, there were no funds in the city .treasury and city orders were selling at a heavy discount. "It was finally determined to appoint a committee of prominent citizens and members of the eouneil," says Professor Larson, "whose duty it should be to study the situation and formulate a plan by which the city's credit might be restored." This committee published its report August 1, 1860, in which it was declared that the city would have to provide $280,000 annually to meet its interest charges and maturing bonds; that the municipal debt amounted to $2,825,850. The eonelusion reached was that as matters then stood Milwaukee could not pay her debts. The only hope was that some of the railroads would pay the bond issues in their favor, but the prospect was not hopeful that they could or would do so.
A plan of readjustment was arrived at by which a long time bond issue covering all the city's indebiedness at a lower rate of interest was recom- mended. A bill to carry out these recommendations was accepted by the com- mon eouneil and became a law in the following March. This law provided for a new set of bonds, afterwards known as "readjustment bonds," to run for thirty years at the rate of 5 per cent, except for the first five years when the rate was 4 per cent. These were to be exchanged for the old bonds and other evidences of indebtedness. If the bonds offered and accepted were not an even exchange the commission was empowered to adjust the matter in an equitable manner.
The whole matter of readjustment was entrusted to a board of three mem- bers to be called the Publie Debt Commission. June first (1861) was fixed upon as the date when the readjustment was to begin. Interest on the old debt would then cease. Holders who delayed in the matter of exchange for new bonds would lose their interest after that date. Looking ahead to the completion of these measures it may be added that by March, 1863, it was
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HISTORY OF MILWAUKEE
reported that the readjustment had been successful. More than four-fifths of the old bonds had by that time been exchanged for the new issue.
It will be remembered that in 1858 the loans to the railways had reached a total of $1,614,000; that in the years of 1858 and 1859 several roads failed to pay the interest on loans made in their favor, and that a fear had been expressed that the city would ultimately have to pay the larger part of the railway debt. But the large erops of 1860 brought a great increase in the transportation business, and the railroad corporations found themselves able to meet their obligations. It should also be remembered that in the years from 1861 to 1865, during which the armies of the Union were engaged in colossal military campaigns in the South the demands for railway transportation. both in conveying troops and supplies, rose to vast proportions resulting in greatly increased prosperity to producers and railway systems everywhere.
During the decade ending with the year 1869, says Professor Larson, "the office of the mayor was steadily growing in importance. In 1861, it was enacted that the mayor's veto should stand unless overruled by a two-thirds vote in each house in the common council. As the older departments grew in importance and number of officials and as new boards were being organized, the mayor acquired great influence from the use of his nominating power. * *
* At the same time power was as steadily passing away from the coun- cil. By the creation of new exeentive departments, its authority was dimin- ished on every side. After 1870. the members of the council were no longer street commissioners, that office having been abolished. The wards also by this time had lost their old significance, partly because of frequent subdivi- sions, and in part also because the new generation was interested in the city as a unit rather than in some seetion that had by this time lost the marks of a distinctive region. After 1870, Milwaukee was a city."
As in writing the history of the decline and fall of the Roman empire the historian (bbon often paused to disenss the merits of his authorities, so we may here pause to express our appreciation of Professor Larson's valuable monograph. Here is a treasury in which may be found a store of informa- tion that can be rearranged into tables of statisties or embodied in narrative. and no collection of source material for the history of Milwaukee would be complete withont it.
The Civil war ended by the surrender of Gen. Robert E. Lee on the 9th of April, 1865, which began almost four years before when Fort Sumter was fired upon, April 12, 1861. The national debt at that time had climbed to the unprecedented figure of nearly three thousand millions of dollars. An outstanding issue of "greenbacks" amounting to about three hundred and fifty-six million dollars seemed to many people to involve much uncertainty as to their ultimate redemption. Their valne as measured by the gold standard was at one time only 46 cents on the dollar. But owing to the prosperity of the conntry in the years succeeding the war the value had increased to about 85 cents in 1870. As time elapsed, however, confidence grew especially as Congress passed the so-called "resumption act" setting the date of their final redemption at January 1, 1879.
Resumption of "Specie Payments." As we shall not have occasion to
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THE MUNICIPAL GOVERNMENT
refer to this subject again we may here describe the final scenes in the removal of this ineubns which rested heavily upon the financial affairs of the country, and with its removal marking a new starting point where "specie payments" became the rule in every transaction. In anticipation of the time when resump- tion was to take place the United States treasury accumulated a store of gold amounting to $135,000,000. Meantime the preminm on gold had been gradually growing less until at the date that resumption was to become effective green- backs stood at par. On the day set a salute of guns was ordered in honor of the event, and a special display of flags was made in the banking district in New York of which the Government treasury was the center. Specie was piled up in the form of gold and silver coins on the counters of the treasury in anticipation of the expected rush for the redemption of the paper currency. The . banks cooperated with the treasury by making similar preparations for the expected demands. But as it turned out there was no excitement and nothing like a rush either at the treasury or at the banks. The demand for specie was so small that at the end of the day it was found that more specie had been received over the counters than had been paid ont. The money market, instead of becoming "close" as had been predieted by many, grew easy, and the country whose sonnd financial system had been thus established, entered upon a period of unprecedented growth and prosperity.
Upward Tendency of City Expenses. While the Legislature had placed a limit on the amount of taxes that could be levied by the City of Milwaukee in any one year (for example, in 1857, the limit had been placed at $235,000), yet the Legislature was often appealed to for "amendments to the charter" for certain unavoidable outlays. Thus the total expense of running the city government often far exceeded the limit thus named. Bridge-building and repairs were imperative requirements. So also was the work on streets and sidewalks. The police and fire departments had to be maintained in a state of efficiency, the schools were constantly increasing their demands, and the new departments of public works and health had to be provided for. Special taxes under the authority of the Legislature were levied by which the in- ereased expenditures were met.
Still the decade ending in 1870, considering the great heritage of debt and difficulties left to it by the preceding administrations, was a period of progress. The city debt was less than half that of ten years before (it now stood at $1,388,222), the bonds of the city in 1865 were "firmly held at 90 and 95 cents on the dollar" in spite of the low rate of interest they bore. The popula- tion of Milwaukee in 1870 was 71.440, an increase of 58 per cent during the decade.
Mayor Kirby's Inaugural Address .- The message delivered by Mayor Abner Kirby on April 20, 1864, is interesting because it pictures the problems of government which confronted the city at that time and the intense partisan- ship which found expression in a demmciation of Abraham Lincoln. The message is addressed to the common council and reads as follows:
"In entering upon my duties as chief magistrate of our good eity, it is expected of me, in accordance with custom, to ask you to consider in candor such suggestions and recommendations as in my judgment may seem proper
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THE OLD CITY HALL Photo taken January, 1892
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THE MUNICIPAL GOVERNMENT
and just in the management of our municipal affairs. With you I can do much ; without you, nothing. The trust reposed in the members of the city government is one of a high order and of grave responsibility. We are pledged in the most solemn manner to discharge our duties honestly and to the best of our ability. I have the utmost confidenee in the council. You will favor all measures necessary to the prosperity of the people, to the public convenience. and to the lasting good of our eity. You will be bound down with iron chains to strict economy in all expenditures.
In this, Councilmen, I shall act with you. Death and expenses, however, are unavoidable, but the latter may be restricted and in times like the present they should not exceed aetnal necessity. The most rigid economy must pre- vail in the administration of our municipal affairs. This is your disposition and it is mine. So far as our influence and jurisdiction extends, our great and good country in its mournful state of blood and financial trial, also must and shall receive the support of our ever ready hearts and hands. We must help and foster every effort to re-establish an honorable peace. Under present eirenmstances that can best be done by sending to the field our best men.
"The City of Milwaukee differs from the administration now in power, as to its policy. We believe our rulers are not taking the right course to suppress this aceursed rebellion. The present Constitutional Chief of our nation, is, in my humble opinion, not fitted for the place, the occasion, or the times. He is the weakest man on the whole list of presidents. Ilis honesty I never question. A weak and vaseillating president, is quite as fatal to our prosperity in these times, as a dishonest president. He is in dishonest hands. His predecessor ran away with the nigger, and Abraham runs the nigger away. Which of the two has shown the greater weakness, and brought the larger amount of trouble upon us? I leave you to judge. A few fanaties have dragged the country into this bloody and unholy strife. These fanaties do not all abide in the South ; neither do they all live in the North.
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