Chicago Daily Tribune Newspaper, December 3, 1872, Page 2

THE CHICAGO DAJLY TRIBUNE: TUESDAY, DECEMBER 3, i872. CHICAGO. First Meeting of the ew © Common Council. Second Aunual Hessage of Mayor Hedill, A Year of Settlement, Liguida- iicn, Retrenchment, and Eestoration. Public Affairs Conducted with Care, Fidelity, and Economy, Financial Condition of the City---Special Assessments. The New Water Works and Tunnel—Safeguards Against Fire, Communication from Corpor- ation Counsel Tuley. A regular moeting of the Council was held yesterday evening, the Mayor in the chair. Present, Aldermen Bowen, Richardson, Dixon, Warren, McGenniss, Coey, MecAvoy, Sidwell, Stone, Pickering, Tracey, Schmitz, Clowry, Bailey, Powell, O'Brien, Bond, Clark, Bweet, Kehoe, Heath, Miner, Sherwood, Moore, Cleve- land, Quirk, McGrath, Eckbard, Stout, Mehr, Lengacher, Camey, Cannon, Ogden, Brandt, ‘Woodman, Corcoran. . The Mayor then read the following message: THE MAYOR'S ANNUAL MESSAGE. GENTLEMEN oF THE CosrvoN CoUNCIL: A year has intervened since I met the Common Council to deliver my first Meesago. It has been a year crowded with importart municipal events, ~ Its commencement was gloomy in the extreme. Our beloved city was in 2 deplorable condition, Fif- teen thousand familics, swept from their com- Tfortable homes by the billows of flame, were sub- sisting on the charities of the world, huddled into school-houses, churches, halls, or shivering in improvised shanties. or quartered on less un- fortunate neighbors and friends. And almost an equal number, not actually burnt out of house and home, found themselves suddenly de- prived of business, employment, and means of Eubeistence at the beginning of a long and dreary winter. Nearly 200,000 gouls wero thus cut short, withoat an hour's warning, of income, and half this multitude of homes. furniture, clothing, fuel, food, I look back to that dark &nd dismal time with a shudder, and I confess to you, gentlemen, that I enterad upon the dis- charge of the Mayorally with many misgivings as to my strength of body and mind to meet the roquirements of ~the office and the reasonsble demsnds of the people, and would most gladly have = foregons the honors of the position to have escaped the perile and perplexities of the situation. = But I ‘wes most fortunate in having the assistance and. support of en excellent Common Conncil, who have labored throughout the year faithfully and unselfishly with an eye singleto the public wel~ fare. To the members of the outgoing Council I tender my sincerest thanks and scknowleda- ments for the cordial and invaluable support 1they have given my Administration_throughout this trying year. And to the able Finance Com- mittes and its clear-headed Chairman I feel es- pecially indebted for tireless aid in_helping to unravel and extricate the fiscal affairs of the city from the sore confusion in which tho great fire left them. I part official relations with the ontgomg members of the old Council with deep Tegret, but trust I shall find in their succcessors elect gentlemen acinated by as high a public epirit, and possessing as much legislative ability and integrity. The new Administration entered mpon its du- ties_with @ depleted Treasury, with & muititude of claims pressing for payment, & large floating debt,—the collection of taxes being out of the question,—surrounded by the wrecks and embers of destroyed public property, with its books and papers, maps and records, vouchers and warrents 1n ashes. Appropriations based on prosperons times and ngm.\ ted resources, had been made, in anticipation of revenue not collected. These appropriations had been expended for all kinds of works and purposes, and paid for, in large part, out of borrowed moneys and speciel funds that must be replaced, and tho residue was left in the shape of unpaid_vouchers, unsettled ac- counts, claims for draw-backs, certificates of in- debtedness, bills for damages, and balances due contractors. And everybody who had claims against the city wanted his money. The previous Council had inconsiderately re- scinded $1,449,790 of the next taxes; and the General Assembly for the relief of losers by fire, had ordered rebatestobe made of municipsl tax- s on destroyed property, which together left the new Administration hardly half enough means with which to discharge the obligation incurred by the previons one. To this lezacy of debts and abbrievated resources were to be added the cost of replacement of the burnt bridges and vi~ aducts, school houses, engine houses, and fire apparatus, police stations, city hall, sidewalks, fire hydrants, lamp posts, farniture, stationery, “books, maps, etc., and the repairing of tho wa- ter works, service pipes, catch basins, sewers, 2nd meny other things too numerous to men- tion, and all this work to'be done when labor and materials had greatly advanced in conse- quence of the unusual demand caused by the fire. Tomeetall these requirements, we had an empty Treasury on which to draw, and half a million of semi-annual interest on the city bond- ed debt to provide for within three weeks, and the credit of a city eeemingly ruined on which to negotiate temporary loans. INAUGURATION OF RETRENCHMENT. The first thing that was dono to meet these strokes of misfortune, improvidence, and unwisdom, was to inangurate a system of se- vere retrenchment in every department and branch of the municipal service. I pressed the obvious necessity of this course upon the Com- mon Conncil in my inaugural message, and upon all the Boards and hesds of departmentsat every conference; and I am glad to say that they all appreciated the necessity therefor, and Lave gone in that dircction as far as practicable. 1t would be dificult to specify in what branch of municipal service much groater economy could bave been practised without causing an injury to the public greater than the value of the money that might have been saved, for there is such thing s _carrying economy to a degreo where it acts on the bady-politic as- insuficient food on the animal system. But, had it not been for ihe timely assistance received from the State in the-pert payment of the city’s mortgage on the canal, it is dificult to conceive how the City Government could have met_its obligations, supported her Fire and Po- lice Departments, paid the interest on its debt, ond preserved its credit. With the money received from that qusrter and the revenue from the unrepealed taxes, by rigid economy and careful husbanding of re- sources, together with temporary loane, we have got flu’o\lih the year far better than was antici- pated at the outéet. The credit of the city has been maintained without blemish; the employes have been punciually paid; all the depart- menta kept in good working condition ; con- tractors’ cstimates have been met as they ac- crued, and thousands of old claims in the shape of rebates on epecial ascessments end balances due on previous year's contracts, and unsettled accounts of various kinds, have been adjusted and liquidated. The accounts of the city as awhole, are in bet- ter condition now than before ihe fire. Thero are fewer persons by thousands who havo_just claims against the city at present than in 1871, It bas been 2 year of settlement, liquidation, Te- trenchment, and restoration. The public affairs of the city have been for the past year conducted with as much care, fidelity, and économy es officers of well-managed privaio corporations bestow thereon, or citizens having large and complicated business employ in their own affsirs. And this is as high & standard of management as tax-payers can ressonably expect in the municipal sdminis- tration of a great city, handling millions of money, employing thousands of men, and touch- ing the {:nbhe at’ 23 many points in their daily Iife as the very atmosphecre they breathe. FINANCIAL CONDITION OF THE CITY. Iwasunableto present the Common Council lzst year with more than a brief and imperfect statement of the fiscel affairs of the city, but I am prepared now to go into details, and furnish & more comprehensive resunie : Amount of existing bonded debt. ... .......$13,546,000 Floating debt and certificztes of indebtedness 1,875,406 Estimated expenses for November, unpaid, 210,000 Estimato of geeral expenses for balance of fiscal year, Dec. 1, 1872, to April 1, 1574... 1,561,000 Of the certificates otstariding there will ma- ture on or prior to April 1, 1873. 341167 Intercst o1 bonded debt, due Jan, 1, 1873... 408,307 Tomeet these obligations as they fall due, are the general taxes of 1372, amounting 1o 15 mlils on §283,473,220 of taxable prop- L O T - seesennes. 4,233,098 Amount expecied 10 bo received from Stato in 1873, about, ... . 1,100,000 Rents, licenses, fince, efc,, estimate - 500,000 There were reccived during the year ending Dec. 1,1872, from various sources of Tevenue the following sums : Trom general taxes of 1871.... From the State since Dec, 1, 187 Rentsof all kinds. . 53 Licenses of all kinds, Fines of all kinds Reform School Pounds, From sal Special nssessments col 16Th e evaeerennne. Interest received on city deposits. General taxes of 1871 not yet paid on personal property, mainly bank taxes enjoined.. Real estate (appeas) Certificates of taxes bought in znd Beld by 16 Cit.eveeeneersaraesens Specisl assessments, appealed. Ditto technical objections sust by Court. . 25,20 There hove been 10,253 applications for ro- ‘bate of taxes on burnt property represent- ing taxable property to amount of., . 41,013,630 Amount of rebate granted on same. . 2TLESS ‘This sum has been allowed and deducted {from the general taxes of 1671 It is estimated that £50.000 will cover all fu- ture applications for rebate by reason of the fira. There have been paid out since Dec. 1, '71, re- bates on special assessments for street improve- ments, collected by the previous Administration, 2nd expended for other purposes, the sum of 190,905, Thera is a considerable balance yet to be paid on these old claims. There has been paid to contractors for street improvements, and to claimants for land dam- ages, for patent foes on Nicholson pavement, to contractors on water-service pipe and privats dreing, etc., the sum of $269,690, the larger part ‘being money collected previous to Dec. 1, 1871, and expended for other {mrpoaem As there hava been scarcely any specinl sssessments made this year, there has been no excess of assessments to counter-balance the foregoing outlay, spent by the previous Administration, and the settle- ment of these rebate claims help to swell our certificates of indebtedness by nearly half & million of dollers for money borrowed to pay them. Thero was standing to the credit of the varions special funds on Dec. 1, 1871, tho sum of $1,556,- 833. But the nccessities of thai Administra- tion obliged it to borrow therefrom $1,144,- 152, which the proseut Administration has re- placed. It will be mnecessary to draw on _this fund between now and April 1, 1573, to redeem maturing_certificates of indebtedness. Bat the money will bespeedily refunded from the re- ceipts of taxes. . There stood to the credit of the various spec- iel funds Dec, 1, 1872, the following amounts : Water Fund—Balance for tunnel extension, .$2,309 /30 1,273,308 92,603 $212,823 301,966 Dew pUmMping WOTkS, etC..veerens®* " ... $ 920,858 School Building Fund—From sals of bonds, balance........ . Gity Brideweil Fund, Jonathan Burr Fund, including interest. Cash on hand Dee. 1, 187 51,103,270 T0AZD OF PLBLIC NDITURES. The espenditures of the Board of Public Works from April 1, 1872, to Dec. 1, 1872, being cight months of the present_fiscal year, and for which vouchers have been isened, wero as fol- lows: §1,794,586. This includes all that has been expénded for the restoration and repair of burnt_public property of all kinds, including school houses, = bridges, visducts, polico stations, engine houses, Water Works, City Hall, Pnblic Library, and sidewalks, a8 well as sew- erage and wafer extensions. It also inclndesthe large deficit for deepening the canal in excess of tho 9,000,000 authorized by law, amounting to $976,025, for which certificatos of indebtodness wero issued. Thore hua been expended since the firoin Te- ‘building burnt bridges and visducts thesum 8T of... o .. For rebuilding school houses, including ture and heating apparatus, &c..... . Building engine houses. ... L. B, There have been laid in the_city since Dec. 1, 1871, twenty-one and half miles of water pipe, making the total length laid up to this date, 80034 miles. There have been built eight an one-tenth miles of sewers since Dec. 1, 1871, which will drain 294 acres. The totallength of gewers now in this cit{lis 169 1-10 miles, and the total area drained thereby is 4,872 acres, or o little less than seven square miles, or double the spaco burned over by the great fire. The total cost of constructing these sewers to date Las been $3,196,336. The total cost of the Water Works, including a1l expenditures, amounts to aboat five and quarter millions. There have been constructed since the fire 1003¢ miles of sidewalk, of which 25,000 feet is of ‘stono fiaggivg, being someihing loss than five miles. Theso lengths include all that was constructed outeido of the burnt district. The total length of sidewalks destroyed by firo was xn:fiim;\ted by the Board of Public Works at 122 es. SPECIAL ASSESSMENTS. I devoted_considerable space in my inaugural message to the_subject of special assessments for sireet openings and merovem&;?ta, and the wuncomfortable position in which certain extraor- dinary decisions of the Teconstructed Supreme Court had placed the city; and I strongly urged the Common Council to make no_more special asgessments under the existing laws and late rulings of the Court; but, in view of these un- looked for decisions which overthrew all the pre- vious doctrines of that tribunal on the subject, to stop all proceedings, revoke all lettings where the same was postible to be dome, and to repeal all new special assessment ordinances, contemplating street paving or street exten- sions, and to require property-owners who de- gired to improve their streets to bargain directly with the contractors therefor, as it was unsafe for the city to tonch astreetunless it intended to foot the bills, as it was simply impossible for it to make an assessment which could be collected by legal means, This course has been strictly pursued during tho year, and the Board of Public Works have not been caught in the legal trap to the amount of adollar. Itistrue that street improvements Dave nearly come to a standstill, but better that than incur liabilities for which no appropriations have been made. The General Assembly, at its last scssion, en- acted en amendment to the charters of cities, Xnown_gs Article IX., which provides a new method of conduciing special assessment pro- ceedings, which, it is believed, will meet with better favor before the Supreme Court. large number of proceedings have been be- gun under it for street improvements and extensions, The process is somewhat tedious and expensive, but it is the only mode yet de- vised safe to pursue, under the peculiar circum= stances. ‘Whether the city will be eventually mulcted for the uncollected balances due contractors on Epecial assessments, is not yet determined. The Court has modified some of its previous rulings, and the ?m erty-owners who have appealed may eventually be compelled to pay for the streets graded and paved for their benmefit. But the city has lost its suit against the Horse Railway Com&:nnien for street paving. The Court Las decided that, under their charters and contracts with the city, they are not liable to assessment for grading and paving strests along which their tracts may run, but are only bound to keep in good repair a stipulated width of street. There is due contractors for this class of work the sum of £13,860, which it will become neces- sary for your honorable body to provide for by appropriation and tex in the next fiscal year, a8 the Court has decided that neither the property~ owners nor the Horse Railway Companics can be compelled to pay it, but the ity must, ‘There is due contractors for work done under street assessments £210,130, which the persons whose property was benefited by the improve- ments refuse (o pay, but have taken appeals to tle Supreme Court. " These claims are in ad- ditionto those involved in thehorse railroad dispute. Themodified rulings of the Supreme Court seem o hold out a prospect that new assessments may be made in a manner pointed out in the decision, which will enable the city to collect the balances due and pay off the con- tractors. : . There are nineteen street-opening proceed- ings incomplete by reason of resistance of property-owners in paying their assessments for benefits received. The total amount assessed damages for those street openings is $770,040 ; the amouni collected for benefits, $577,089. ‘which has been paid over to the parties entitled thereto. The uncollected balauce amounts to $193,581, which those who should pay it are try- ing to throw on the city. Iam unable to form any definite opinion a3 to the result of the litigation. For the Dearborn street extension there remains unpnid $17,036 ; for that of Mich- igan avenue, $18,186; for that of Franklin street, $36,911; for widening State street to Monrde, $52,815, and, besides various smaller amounts, there is uncollected, for extending Milwankes avenus, $41,802. 5 Inregard to this Inst named extension, it is of very questionable utility, and the opinion begins to prevail that it had better be abandoned, and an effort be made to sell back tho condemned property to those from whom it was taken, and return the proceeds to those who have paid their assessments. The proposed extension, if com- pleted, will be of very little value to the general public, and it will cost them a very heavy sum of money to build and maintain long viaducts over the several railroads which will cross it diagon- olly. Nearly the whole length of the extension will require to be protected with viaducts, and, when '}.\fiy are erected, there will be very little travel over them, on account of the impedi- ment. People will still prefer the Lake and Halsted routs to Milwaukee avenuo. The diagonal route of the opening cuts all the lots into triangles, which ruins them for most uges; henco the beavy claims for damages, and heavy assessments for questionnble benefits, and the persistont resistance of thoso rssessed to pay for an improvement which they deem of nognanefin to their property. THE NEW WATER WORKS AND TUNNEL. The long controversy in regard to the location of the new Water Works is at last settled by the purchase of o block of ground on Ashland aye- nue, near Twenty-sccond street; which containg about 136,000 square feet, or three scres and & half, with 200 feet of dock on the west side thereof, and a railroad track on the mnorth front, The purchase price is $63,000; the city, by pre- ‘vious agreoment with the seller, deducted about $98,000° of disputed and nfpeafefl general and special taxes therefrom. regard the prico as fair and reasonable, and ithe lot well located for the purposes contem&l‘;tud. The new tunnel, extending under the city from the old to the new works, will be four miles in length, and soyen feet diameter. It will be cap- able of conveying from the lake 100,000,000 of ons of water per twenty-four hours. The ard of Public Works intend to have it com- pleted at an carly day, as it can be constructed in sections by sinking shatts at sev- eral points, and therofore it may be pushed ra) idly. The cost may be roughly estimated at b a million of dollars. 4 1t is the design, I understand, to tapit ab numerous places Whero i passes under streets with an artesian tube. The water will rise in these wells within & 3w feet of the surface. To each tubo a fire-hydrant can be attachod, from which two engines may draw water. Thus through thevery heart of the city there will always be & sure supply of water with which to_combat fire, independent of that furnished by the pumps and water-mains. The cost of this tunnel and that under the lake, together with the new works to be erected on the Ashland avenuo lot, will considerably es- ceed the upexpended procecds of the waier- bonds, and the doficit must be made good by taxation. 5, BAFEGUARDS AGAINST FIRE. In this connection I desire to repeaf the rec- ommendations in regerd to the necessity of ad- ditional preventions snd safeguards against the danger of fires, contained in my special message to the Common Council of Nov. 11, 1872, ‘The Finsnce Committee reported an ordinance carrying into effect these recommenda- tions, in a slightly modified form ; but the last Council hed not sufficient time to act thereon. I trust it will be teken up by the present Coun- cil, and carried into effect without delay. The best time to combat a fire 'is before it gains un- controllablo headway. Thero is always o time during which a fire 16 manageabls if extinguish- ers can be bronght to bear upon it. A few min- utes’ time, more or less, often determines the question whether a fire can be quenched or not, A chemical extinguisher quickly brought to beat will put out a fire which with ten minutes’ longer headway may defy tho whole Fire Department. The great fire in Boston broke out in a five-story building with s Mansard fire-trap roof, and burn- ed unmolested forty minutes. It was then too late to conquer it untilit had done its terrible work. Our Chicago conflagration had nearly ‘’half an hour's start in the midst of pine rook- eries and aided by & _strong, dry wind, befors it was_seriously molested by the steamers. By that time it laughed to scorn the puny efforts of the firemen, and swept onward until half the city was destroyed. If ever we have snother destructive conflagration, it will be from the same cause, viz. : delay in getting the extin~ guishers at work. The most reliable of &ll insuranceis preven- tion of fires ; the exercise of such care and pre- cautions as will prevent them from breaking out. Nextbest thing to_do, is_to adopt such remedial measures 25 will bring an extin- guisher to play on it in less than five minntes from its commencement, or at the earliest possi~ ‘ble moment after its discovery. Let mo recapitulato the suggestions embraced in'the special message, and incorporated in the proposed ordinance: 1, The purchase and distribution, among the ‘police stations, of chemical fire extinguishers. 2. The erection of a bell tower to give alarms of fire. 8. Accessto the river at the street-ends, for the fire-engines, by clearing away obstruc- tions. 4. More fire members. 5. An incrense of the police force, in order that outbreaks of fire may be quickly sent to hesdquarters, as well 25 for the better protection of lifo and property, the present force being quite inadequate fora proper discharge of duty. Insurance has Become eo costly and precarious that our chief relianoe for safety against fire ‘must be in precautionary and preventive mens- ures. ‘The average cost of insurance in this city now exceeds the taxes on the same property. From this fact some idea can be gained of the Cxpenso of insurance and the necessity for the adoption of such safeguards as will reduce the chances of destructive conflagrations. BRIDGEPORT BRENDERING ESTABLISHMENTS. A vigorous effort has been made by the Health Department during the snsh season to suppress and abato tho nosions odors. atising. rom tho rendering, soap-boiling, and other establish- ments which menipulate patrid flesh in the southwestern scctions of the’tity. Onlymod- erate success has attended these efforts. The owners, from long contact with the offensive gases their business generates, seom to becomo unconscious thereof, and utterly indifferent to the suffering of the public thereby, and it is very difficult to make thom appreciate that t,he{ are creating intolerable nuisances. Eachstoutly as- serts his innocence, 2nd denies theimpeachment. They have been numerously prosecuted, indicted, and fined, and repressed to certain extent. Bl 8o long a8 enormous and ever-increasing quan- tities of decaying animal matter is permitted to be rendered and manufactured wif the city limits, in the summer season, just so long will the noxious effluvia be generated therefrom, and be spread over the city by the westerly winds to suffocate and poison the people.” This class of business should all be carried on at a consider- ablo distance beyond the corporate limits, ‘Whatever methods science may devise for neu- tralizing those offensive gases, by means of fire or disinfectants, there will nlways remain, in vicious setivity, the pecuniary intorests of the proprietors to avoid expense and trouble, and the slothful carelessness of employes in using the preventive appliances. OGDEN SLIP AND HEALEY SLOUGH. Great complaints wero mado to me last sum- mer concerning tho filthy coirdition of the “Og- den Blip,” I first resorted to dredging, but dis- covered little improvement therefrom. After careful examination, I became convinced, in the face of all denials to the contrary, that the slip was befouled by the washings of blood and other animal matter into it from the'neighboring rendering and slaughtering es- tablishments. Steps were then taken to cause the guilty firms to construct = sewer that would convey these weshings into the South Branch where there is considerable current. The bene- ficial effect was immediate. The water in the ulig has become comparatively pure and clear, and is no longer offensive to the public. The condition of Healey Slough is also greatly improved since the rendering houses have been forced to disconnect with it, and find other out- lets for their fiuid, £lth, and putrid matter. THE NORTH BBANCH, The deepening of the canal from Bridgeport to Lockport, permitting lako water to flow through it, has for eighteen months purified the Chicago River, the South Branch, and other slips con- necting therewith. Bub it has made compara~ tively littlo impression on the North Branch ex- cept for a short distance from its mouth. The condition of this bayou in warm weather is very bad and dotrimental to health, as well 83 injuri- ous to the value of property along its banks and for some distance away from it. It will grow worse from the increasing sewage thrown intoit. The Engineering Bureau of the Board of Pubiic Works bave Erepared plans for its purification, to be_carried into effect whenever the tax-payers, throngh the Common Council, are willing to be taxed half tos quarterof a million for the cost of the work. Themost I am prepared to recommend at present is, that this important improvementshould be commenced at the earliest moment the fiscal condition of the city will permit. STREET VIADUCIS. The ontgoing Common Council granted right of way into the city for twelve now railroads, on four peparate routes—three roandsto use the tracks of each route. In granting these privi- leges, ordinances in the nature of contracts were drawn with great care, guarding the city’s rights and interests. The cu‘:fnm'es are required to build and maintain viaducts and_spproaches at all tho strects they may cross, and save the city ‘harmless agoinst all damages growing out of the passage of the ordinance. "They must permit con- nections with other roads, and allow side-tracks to warehouses, conl and lumber yards, snd manufactories within 1,000 feet thereof, to con- nect with them, and to keep in good repair 80 much of the streets and crossings as may be oc~ cupied by them. 5 ‘Previous Councils granting right of way to railways neglected to insert these clauses in or- dinances. Hence they refase to erect and main- tain viaducts oyer their:tracks except in cortain cases where it is their special interest to do so. But the time hes come when the City Govera- ment must assert its police powers, and compel the railroad con;finme! to build and maintain vinducts over all the streets thoy obstruct.. They have no right to endanger life and impede travel, and incumber street-crossings with trains, and inflict enormous damage on the citi- zens, In order to_escape the cost of providing the people 2 mode of unobstructed transit, fres from peril to person and_ property. I know of nomore important subject which can engage your attention than_devising regulations ~and ordinances which will force the railway com- panies to cease their aggressions at the Btreet-crossings on the long-suffering people. It is entirely out of the question for the Ci Government to assume the cost of building o the viaducts and appronches at street-crossings, and maintain the same. The railronds should not expect it, and the Tressury will not be able to bearit. The peopls havo tho first and best right to the use of their streets and highways; and where & railway cannot cross a street on grade without doing damage and injury to them, it becomes the duty of the company to carry their tracks either Bo far below or above the highway as to leave the free use thereof to the ‘public to whom it belongs. The simplest solu- tion of the antagonism of interests is for the companies to build viaducts with easy ap- proaches thereto. The_public would be willing to gecept this compromise; anything less they will nng should not. There are various other matters upon which T should like to remark, but the length of this communication precludes them. On the question of the collection of munic- ipol taxes and special assessments, I have consulted with ~the Law Department, and herewith present the viows of the Corpora~ tion Counsel thereon, together with his state- ment of the present status of various suits be- fora tho Supreme Court, involving special asses3- | ments for streot openiugs and improvements. All that I predicted in my insugural mess: f.fi, concerning the rapidity of the recovery of this: city from its fearful losses inflicted by the fire of! October, 1871, has more than come to pass. We: can look around on & city almost restored in the brief period of & year; with taxable proporty equal to that before tho fire ; with o trade and. commerce largely increased; with tens of thou- sands of new-comers added to our population ; with goneral good healih; with hopes and pros- pécts of continucd growth and progress in the future as in the past; and, is it too much to adc il a zealous and pradent municipal adminis: tration to protect and mromote the rights and in— terests of the people ? JosepH MEDILL, Mayor. TAXES AND ASSESSMENTS. The communication from the Corporation Counsel, roferred to by the Mayor, is as follows ¢ Hon, Joseph Medill, Mayor I am informed that the tctal amount of asscssments, priorto 1872, uncollected rom property-holders, is $543,808.85, of which $193,851,80 are for strest openings and other condemnations, New acsessments have been made to the amount of $216,308.39, warrants for tho collection of which are now in the hands or_the City I\Cnuectar. The remainder of the amount isin litiga- tion, about 300,000 of which is pending on_appeals from the County Court on Collector’s return made in June last. There is due to_contractors, for work done under assessments, $253,98048, Tho decision of tho Supreme Court in tho caso of Norton va. City, re- ferred to in your last annual message, in my opifion makes the city lisble for $43,860.05, 'this being tho smount of assessment on horse rajlroad companies uucollected, for which the city is liable, The city, ‘having no right to asscss such railrozd companies, i3 liable to pay tho Tespective contractors who did ‘the ‘work under those assessments, The case of Rich ra, City, upon which, s stated in Jour st message tho Sureme Conrt'of this Stato ad granted the city o rehearing, bas been decided, The former opfnion is much modified by the opinion delivered upon the rehearing, and, while the city, by the last opinion is relieved from any troubloas to strect condemnations which have been comploted, et the Court adheres to 5o much of the opinion as its any defence to be made upon the application for judgment, which tends to show that the nsscss ‘ment ought ot to be collected. The Legislaturo having provided o new gystem for ‘making condemnations of property for opening streets, the decision is not of much practical importanco to the city, except 80 far 28 the collection of the asscss- menta for streets slready” opened. Tho amount of which uncollected assessments, as before stated, is $193,851.80, Z Tnasmuch ss tho new law whicl has been adopted by the city makes provision for notice by publication and Dy mail to property owners, and_gives them a right to ojury trial Defors any wirmant can lssuo upon an adsessment, it ia believed that sssessments hereatter mode can be more_casily collected than under the old system or mode, and that the ralings of the Conrt will e more favorable to municipal corporations seeking to improve their citics, A rehearing was also granted the ity the' Beygeh case, referred fo in your . lsst messsge, in ~ which the Supreme Coturt held, in effect, that no moro assess- ments conld be made upon thoso who had suceessfully Tesisted the first nsessment. The Supreme Court sustained its former decision against the city, but not on the amo grounds, snd in tho caso of tho Union Building Association zs. the City of Chicago,decided at sbout theame timeas the rehear- ing upon the Beygeh case, tho Supremo Court have de- cided that under the charter provisions such new as- sesaments may bo made in 4 manner pointed out in the decision, All the asscssments for improvements of the strcets in'the year 1669, prior to December of that year, wero ‘made ipon 3 form of ordinance which has been held 10 boinvalid, 28 was the original ordinance, in the case of The Union Building Association ts, The City, above referred to; yet the Court held, in that case, that a Talidy new, oF easscssment; could be made uader the arter, ‘There is believed to be no difficulty sn making these new assessments in_the manner required by _the cona giruction given the Charter by the Supremo Court, and that those who have congratulated themselves lipon. Daving escaped their just sharo of the cost of improv- ing tho streets can be forced to pay. The city, ua to the collection of its taxes and special assessments, hos met with many difficulties resulting from the destruction by the great fire of October, 1871, of the warrants issued for the collection of the esme, and although every effort was msde to obain the legisistion decmed ecessary, but little was sccomplished in that direo- tion, Legislation was a tedius process under the pro- “visions of tho new Constitution, and the great amount of general legislation made necessary by that instru- ment, together with the great diversity of views upon resente matters, all tended to render it difficult to ob- | - tain the legislation nocessary for our city. 1t is probablo that, ot the coming session, when the | . rostrictions of the new Constitution will be better un- derstood, and the work of legialating therounder will | have become easicr, mot only the legislation for our own city, but also that for the entire State, so Under the legislation of last winter, applications for judgment must be made to the County Court, sn appeal is allowed to the Circuit Court, and from fhat Courtto the Bupreme Court. This gives one year certain, and probably two, to the party cone testing. This appeal is granted upon a bond sufficient fo secure the costa merely. The appeal should bo to tho Supreme Court from the County Court, and the ‘bond required should be double the smount of the tax or assessment appealed from, The law should nlso provide that the County Judge should have power in cases in which the object of tho defence appeared to be only to gain time, to requirs the payment of the tax contested into the Court to abide by the result of the appeal. It should be also provided that 3 suit could be in- stituted in tho name of, or for thobenefit of the Munic- ipal Corporation against the person owning or claim- ing the property assessed, and that the burden of ‘proving that the tax was not properly assessed, that it wasnot due, and the defendant not liable therefor, should be cast upon the person resisting the tax. The law shoula make the appearance of, the owner or party climing interest in the property a waiver of all questions a8 to jurisdiction, 80 far ns ‘s _ titlo to the property is concerned, and if any mistakes have - been made, or errors committed which do not affect the substantial justice of the tax, tho mistake or error should bo pérmitted to be corrected in open court by the officer Who is in fault. ~All amendments which aro ‘practicable, and which are allowed in other civil cases, should be allowed in all proceedings for the collection of taxes or assessments! T belleve that the city, county, and State will find it impracticable under the present general revenue laws to collect their revenues in this county. There should bo sppointed in fhis, mad, I believe, ~in every “county = of ’ the State, 3 Tax Commissioner, with duties and powers like thoso conferred upon fhe Tax Commissioner of Chicago by our Charfer, Iasm satisfied, by the ex- perience I have had, that, unless tho wbols county ‘machinery for the collection of revenueis under tho sole supervision and control of one officer, who has no other duties {0 perform, much confusion and loss of reveouo will ensue, particularly in this county, When to the State and town taxes there is added tho assessment and collection of tho large revenuo of the city, the errors nnd mistakes of the county snd town ofticers will, unless some chango is made, be certainly incressed in magnitude and number, It is o foct not genmerally kmown that tho city and county havolost hundreds of thousands of dollars within the past fiva years by the fallure to colleot taxes that should bave been paid, The expense atfending s Tax Commissioner’s office in each county could be well paid from the State Treasury, and many thousands of dollars saved every year by having such ofticers, Respectfully, F. Torev, . Corporation Counsel. The Mayor's Message was referred to the ap- propriate committees, when appointed. Adjourned. have failed, and ninety-six gone into voluntary liquidation, by 2 vote of two-thirds of the share- holdlors, under Section 42 of the act, leaving nincieen lundred and forty-four banks in exist- ence on Nov. 1, 1372. Loans and discounts. Due from banks and bankers. however, distributed in accordance with the ac 1664) was passed, pational bsnEmg association, State Bank, or State bunking association shall gu centnm on the amount of notes of any State them after the first day of July, 1866.” Buta subsequentsectionalso provided that State Banks come following, should receive such autbority in pref- erence o new associations applying for the same. whose circalation had been tazed out of exis- tence, generally applied for anthority to reor- faras the mode for enforcing the collcction of Tev- 52 enue_4s concerned, will ter mat was = 23 possibleat the last session. States and Zerritor & ing capital of the country or sufficient data npon 'which an estimate can be made of the business merce of every State of the Union were at hand, it would be necessary to estimate the proportion to which each branch of industry would be en- titled. .No satisfactory basis for this purpose can be obtained, and, after consultation With the Secretary of the Treasury, it was decided that the distribution of the circulation, one-half upon population and one-half fl{mn the resources or wealth of the country, woul o o aey masionat » hag b sama_ ammount iiho taxation “ not natio: W8 annuslly for the decade, the total taxation collected ‘wonld be §6,138, 147,947, THE NATIGNAL BANKS. Tenth Annual Report of the Comptroller of the Currency. His Statemént for thae Year 1872. Resonrees and Liabilities of the Baaks -Distribution. of the Currency. Tazation, Earnings, and Dividends-- Reserve--The Chicago Fire--Osury, Savings Banks--Locking Up of Greenbacks--Tnsol- vent Banks--Surplus and Specie--Shin- plasters-..Mutilated Carrency. TREASURY DEPARTMENT, OFFICE OF THE COMPTROLLER 0F THE CURRENCY, ‘WasmrvaToN, Nov. 20, 1872, _Bm: I have the Lionor to submit for the don- sideration of Congress the following report: The National Currency act provides that it shall be the duty of the Comptroller of the Currency fo report snnuslly to Congross o sum- mary of ‘the state and condition of all the Na- tional Banks, exhibiting their resources and lia- bilities, 08 returned in different reports during the prdceding vear; that ho shall suggest amend: ments to the act by which the system may be improved, and present such other information with referenco to the affairs of the National Banks as may, in his judzment, be useful. The act also provides that the circalation shall be apportioned to associations in the States and erritories upon the busis of population, re- sources, business, and bank capital, and that a new apportionment of circulation not issued shall be made as soon as practicable, based upon the census of 1870. The National Currency act became s law on tho 25th of Fobruary, 1863, and nearly ten years have therefore elapsed since the organization of the system. Daring this period the agrioultural products, the manufactures, and the internal commerce of the country have increased beyond any former precedent; and notwithstanding the enormous waste of a protracted war, the reduc- tion of nearly two thousand millions of dollars in the valuation of property by the sbolition of slavery (more than compensated, it is trne, by the conversion of slaves to freemen), and the collection of five thousand millions of dollars of taxes* imposed by the National and State Governments, the census returns of 1870 show 2n increase of population for the ten years pre- vious of more than seven millions of persons, and an increese in the total wealth of the Union ot nesrly fourtcen thousand millions of dollars. Since the organization of the National Bank- ing system, two thousand and sixty-one National Bartks have been organized ; tweniy-one of these The following table will oxhibit the resources aud ] inbilities of the banks inthe month of Oc- tobor, 1872 : mEsoURCES, United: States bonds. Bills oZ Natienal Banks were 479,699,144 110,257,516 303,495,027 625,703,307 143,836,431 The act of June 3, 1864, limited the issue of. notes of circulation to three hundred millions of dcllars. The act of March 8, 1865, provided that one-half of this amount shall be apportion- ed according to “ therepresentative population,” and the remainder among nssociations formed in the different States, Districtof Columbis, and Territories, * having due regard to the existin banking capital resources and business of ea State, District, and Territory.” The threo hun- dred millions of circulation authorized wero not, of March 3, 1865, already quoted. At the date of the passage of that act, only about ninety- nina millions of dollars had been issued, but contemporary with its passage, an' amendment to the internal revenue-law (act of June 30, providing “that every pay a tax of ten ank, or State banking association, paid out by already organized, applying for authority to be- ational Banks hoors the 1t day of Joky Under this provision the State associations, ganizo as National Banks, and the result was that the banks in the Eastern and Middle States obtained a large excess of the amount to which they wer entitled in the apportionment. To remedy this inequality, the act of July 12, 1870, was passed, providing for an additional is- sue of circulating notes, amounting to fifty-four milliors of dollars, to be distributed among those States having loss than their proportion, and requiring the cancellation monthly of 8 per cent certificates,t not less then the amount of circulation isgued, and a new apportionment of the increased circulation as soon as practicable, ‘based upon the census of 1870. This idditional circulation has been distrib- uted to associations zlready orfimized, or in pro- cess of arganization, in the following Statesand ‘Territories : B o 04 uy’ wyung o) onp uinonisy | “panesy fipooa 10 uoHIDAY Kontucky Tenucssce g o - 140,993, 4701 7,451,%00! 5,462,100.53, 817, 70 The census of 1870 does not furnish the bank- of each State or Territory. If the statistics of the agriculture, the manufactures, and the com- the United States in 1860 and 1870 : i estimato for Great Britain and Fysnn g fiilar Wealth (census of e Specie, 1862 B Lo Bank circulat 4 6T a1 671,218 $438,671,218 Ratio of circulation to wealth, Circulation por capita. TUNITED KINGDOM—] LAXD, ‘Population (estimated, 186 : Wealth (1863)..... ) mn%%’% Specie (August, 1563 100,000,000 Bank notes, 1853, 196,000,000 Eatlo of circulation to wealth. . Circulation per capitd......... ONITED STATES, 1870, ‘Population (census of 1870)-, % Wealth (census of 1870).. Zegal-tenders authorized, National bank notes suthorized. .. Fractional currency. Bpecio in circulation. Ratlo of circulation to wealth Circulation per capita... FRANCE. ‘Population (185 Wealth (1853) Specte (Oct. 1, ‘Bank-notes, 1868. Ratio of circulation to weslth. . Circulation per capita. The following tab] of circulation outstandin, issued to each State, nns e: and authorized to be the amount to which New Mexico.... 2 300,000.00 180,000.00 Total ...... 1,080 $182,530,598.57 $340,993,470.30 GOLD BANKS. Massachusetts.. 1 200,00000 12000000 Clifornia ...... ~ § 28000000 1,480,000.00 Total .. 1 $3,100,000.00 $1,600,000.00 The following comparative tables will exhibit the amount of circulation issued under the State laws, previons to the establishment of the national banking system, and the amoun au- thorized by Congress ; the ratio of bank circula- tion issueg in 1862 and now issued, to capital snd to deposits ; the per capita of circalation in 1862 ; and the per capits of circulation author- ized by Congress : 1862, 1870, $03,67,718 33,917,470 81,443,321 38,553,371 16,155,515.163 smoss.sxggsfi Eatio of cissalation 0T 1T wealtho. Site - x 15 15 Ratio of circulation to deposits, per cent.... 61 &0 TAATION, EARNINGS, ASD DIVIDENDS. The National Banks pay the following taxes ta the Treasurer of the United States: One per cent annually on ‘circulation outstanding ; one- half of 1 per cent annually upon deposits ; and one-half of 1 per cent annually on capital not in- vested in United States bonds. These taxes are . payable se:ni-annnally. The amount of taxes collected by the Treasurer from Jan. 1, 1864, to Jan. 1, 1873, wero as follows The National Banks, prio ¥ 1, 1871, also paid to the Commissioner of Internal Revenus 8 license or special tax of $2 on each $1,000 of capital, and an_income tax on met earnings to Dec. 1, 1871. The special or license tax from Muy 1, 1864, to May 1, 1871, amounted to 5,329,598.43; the income tax from March1, 1868, to Sept. 1, 1871, amounted to $5,539,239.17. The following table will exhibit the amount of taxes collected from these sources during the years 1870-71: d- comply with both the letter and the spirit of the act more nearly than any estimate not derived from official data. The following tablo'tontains anestimate of the | ratio of circulation to population and wealth in * Tho amodnt of national taxatic from 1863 to 1872, inclusive, is shown by the official Teturns to be as follows : From customs, $1,573,460,608 ; from in- temal xevenus, §1,740,184,621; direct taxes, $12,009,- The taxati ional, for the year 1870, is stated o cenens Foturns bt SHB1.180,310. Asmning that +The amount o 3 _per cent _certificates outstanding on July 1, 1870, was $15,545,000. each State is entitled npon the baais of popula- tion and wealth : 5 bow! A A a5 [~ =3 a3 53 | §5% satsanarer| £5 | 3 | 33 | P33 ritorics., g3 o4 1S 73 ia L is ] i3 fER | 82,677,818 $2, 053, 200 51,551, 015 57, 615, i Ao R TR LET 3| 120,600 o078 66110 S TR BEn Mae 71| 17 o7 DACTISY 41665,8001 7,033,753) 17,335, 85 SLEN| BT AN 130081 8530 007 905800 7300 1307900 1,577,998 friinia. BENDE 240120 86130 NS SI West Virginia, | 2029'041| 1151000 3140141| 2595007 North Carolina| £,918,c3) 159900 6457, 157,420 SoathCaolina) Txsoll Ll ficasil i 4‘2?2‘12‘43 1,185,50 é?&-j@ e EEnCRl TR B = 336,88 1,88,%0] 5T, S8t 'SBI00| 45, 236%| 90,400| 3)141,335| g: 'm _3‘.551.&0’3 v.m,gg 12,234,726! 13,151,100 85 771871 7,469,400 271 11,630,230] 121456, 300| 34,155,430 435,357 4,230,200 9, 68 67| ,811,403) 4,141,800 8,98 ong| 5481081l 420,00| 9,711,381 20848 136.900| 33696151 7,901,509 7,857,900| 15,459, 409 Lemas| 1,115 100] 3,787,854 550,59 4on 100 Sie% 1,08 177,00 30,050) 4nam| soiew| 7l 2,571,733| 8,752,100 6,324, 183! Tanex) Cimmel a0 smesl Eaol asien [ 55 T 94,510| 83,500| 123, 040 485 0| e 421,742 184,700] 616,413 109,958 88500 193¢ Fractional to- dom’t'agaddod]... 8 1177, 000, 000 177, 070, 000 354,000, 000 333,917,470 The final distribution of (he ffty-fonr millions will still leave a deficiency of forty omillions in different States of the Union, which will require to be filled before the S;uporfiun among the several States will be equalized upon the basis of wealth and population. This deficiency arises from the fact that while fifty-four millions of new circa- lation were authorized, there, at the time of the passage of the act, a deficiency esisting of ninety-four millions of dollars; Saction 6 of the act of July 12, 1870, provides that, after the whole fifty-four millions of circu- Iation shall have been distributed, twenty-five millions additional shall be withdrawn from ‘banking associations organized in States having an excess, and distributed among_States having less than their proportion, first, by reducing, in such States, the circalation of all banks having more than-one million of dollars, to that amonnt ; and, secondly, by withdrawing from other banks having a circulation exceeding $300,~ 000 their circulation prorale in excess of that smount. Under this act it will be the daty of the Comptroller, as soon a8 the amount of cir- culation authorized shall have been issued, to make requisition upon‘the banks indicated as pre- scribed. ~ The twenty-five millions of circulation would be withdrawn_ from the following cities and States : From four banks in the City of New Yorlk, 85,018,000 ; from thirty-six banks in the City of Boston, §11,403,000; from fifty-thres _count benks of Massa- chusetts, $2,894,000; from fifteen banks ;in Connecticut, = $2,097,000; from six- teen b in the Cityof Providence, $2,688,000. “This wonld reduce the circalation of all the banks of Massachusetts, of Rhode Island, and of Connecticut to $300,000, without reference to the business of each. 1t the banks do not respond to these requisitions—and, as theirnotes are gcattered throughont the whole country, it will be impracticable for them to do so—the Comaitrol.ler is required at the end of one year 1o sell a sufficient amount of bonds and redeem their notes as they come into the Treasury, un- til the whole smount required+shall have been returned, The notes will not come to the Treas- ury for redemption unless first assorted by the brokers and resold by them to new National Banks about to be organized. This will encour- agethe objectionabls practice of authorizing new National Banks with circnlation' npon the condition that currency shall be purchased of brokers in the muieb at from 4 to 6 per cent premium—a practice which should not be encouraged or authorized by law. The Comp- troller, therefore, recommends the rapesl of this section, and the authorization of the issue of 5,000,000 of sdditional circulation annuaily for the next five years, to_be distributed among the States which are deficient. This, with the fifty-four millions of circula~ tion recently suthorized, will probably furnish all the additional curre cy required durmg the next five years for thd establishment of new National Banks in the States which are deficient, :nd virtually inaugurate a free banking sys- om. The Comptroller also recommends that the law be 80 amended that National Banks may be organized in accordance with 1ts provisions, without circulation, npon the deposit of ten thousand dollars of United States bonds with the Treasurer, instead of the deposit of one-third of the capmai peid up, as now required. Three National Gold Banks ~have been organ- ized in Californis, under the act of July 12, 1870, with an aggregate capital of 28,300,000, and cir- culation of 31,480,000 based upon United States bonds at the rate of 80 cents on the dollar, This currency is redeemable in coin, is more conyen- ient than the coin ite~'¢in the transaction of bus- iness, and circulates .. ely at par upon_the Pa- cific coast. Other applications have been re- ceived for the organization of similar institu- tions, and it is probable that this kind of circu- lation will be: considerably increased during the coming year. S The following table will exhibit the numbor of banks in operation, with their capital and circu- lation, in each State and Territory, on the lst day of November, 1872 : . States and Ter- Inoper- Capilal ritories, ation._ paid in, Notes in actual eirculation. Massachus Rhode Island, Connecticut New York. On circulation.. T Y On deposits, 18,611,945.73 On capital. 9,453,035.17 Total... $40,242,705.43 = NI 5| & ol s HEN RN I;EI 8 5 > s 8 B 57 ] HIE H 5| 3 i .': b 2 RN D EEIR s '_g.g;:I o - (3 55“%[ 3 EI N B 2 4 BEEHEN . HEHHE A\ HRk BB S §§§g r??izl el 5| § EEINEEY N E : EEHE 25| * The Comptroller, in his report for the yesr 1867, made carofal statements of the ta: National Banks for the year 1866, from which iv appears that the banks, during that year, naid. over sixteen millions of United States and S:ate taxes, as follows : 'To the United States Govérnment. ),938- To the States. ..., 7,923,451 The amount of taxes P £8,069,933- T aid to the several States was derived from specisic retnms of about foar- teen hundred bants, the minimum rate in each. State being calculated for those bazks vhich made no returns. A similar statement for the year ending Dec 31, 1367, exhibits the following Tesults : Amount of taxes paid to the Taited States, vhs faovsiitesses SOELEOTEE paid'to the State anthoric 6,813,123.% Or 43¢ per cent upon a capital of 3:22,874,065. The sggregate Stato tax was belicved o bo considerably below the actual smount paid. As- suming the amount of State taxes-paid by the Netional Banks to be the same 2s that paid to the United States Government (which is a mod- erate estimate), wo shall have the toial taxes paid by the National Banks during these forr years : 1866 $16,019,359.C0 1867 338, 11 18,3387 19,150,463 The ect of March 3, 1 epectic e act of Mar 869, required specific re- furns to be made of the dividonds and wet osn. ings of the National Banks after the declaration * of each dividend. From these returns the fol- Iowing table has been prepared, exhibiting the aggregate capital and surplus ; total dividends and total earnings of the National Banks, with the ratio of dividends to capital ; dividends ta . capital and surplus ; and earnings to capital end aurgl\m. for each half year, commencing March 1, 1869, and ended Sept. 1, 1872. 1t *8ny s SeSoean Sienes 2 BEREEEE - = o9sma 2% aSssses ] ERESERS £3 BERSA g EEEsS: B By 5 e £8 E g g8 B E] & - 2 RN N 3 B ER - EEEG N §| -+ -1ondna a2, | o spwpag Rt d 3| cemidana By o S | PUD 07000 ES Do |02 spuapng a . |zE2RERas E 5 emdana amoomant |puntonde | @ SESIRR|Y Mupmg The_following table will exhibit, in & conci form, the ratiosof dividends to capital; divi- dends to capital and surplus ; and earnings to capital ‘and surplus, of the National Bunks i in every State of the Union, and in the redemption cities, semi-annually, from March 1, 1869, to Bept. 1, 1872: [The table shows that the sverage ratio of dividends to capital is 10.24 per cent per annum ; the average ratio of dividends to capital acd surplus, 8.34 pet cont per annum; and the aver- age ratio of earningsto capital aud surplus, 10.72 New Jersey Pennsylvania. Maryland Dist., Columbia. West Virginia. North Carolin: gar cent per annum. The average ratio of divi- lends to capital among the banks of Chicago is 12.42 per cent per annum.] Complete statistics, in detai' of tlie capital, smrplus, earaings, sud dividenws by States and cities, will be found on pages 3344 of the ap- ondix. b ‘The National Banks are required to furnish to this office not less than five statements during eachyear of their assetsandliabilities, andalsoto make specific returns to the Treasurer, semi- ann\u.lly, of their circulation, deposits, and the average amount of capital not invested in Uni- ted Btates bonds. The officers of the United States, and of the diferent States, whose duty itis to collect taxes, have, thsrefors, at all times at their command the data ¢ >m which to ascertain the amount of taxes to be collected; and it ia believed that there i no other speci of capital upon wtich the tax can be so deg nitely assessed anl 80 certainly eollected as the tax upon the Natbnal Banks of the country. Thers is no ‘doibt that in some instaaces, owing to ‘the lrge deposits in - proportion to capif high rates of inter- est in e nw Btates, large dividends have been declard] ; but it will be seen from the table that the aveisge earnings of the National Banks, atter makdg 8 preper allowance for bad S~