Fifth. The total amount of indebtedness, except that for current expenses. Sixth. The assessed valuation of all tangible property.

Such statements are scheduled by the local assessor and returned to the county clerk, by him forwarded to the State auditor, and by him laid before the State board of equalization, which values and assesses such capital stock.

Every person owning or using a franchise granted by any law of the State is required to list same as personal property, giving the total value thereof.

STATE AND NATIONAL BANKS.

The stockholders in every bank, State and National, located within the State, are assessed and taxed on the value of their shares of stock therein in the place where the bank is located and not elsewhere. Such shares are listed and assessed subject to the restriction that taxation of such shares shall not be at a greater rate than of any other moneyed capital in the hands of individual citizens of the State of the place where such bank is located.

In each bank is kept a full and correct list of names and residences of its stockholders and number of shares held by each, which list is subject to inspection of assessors. And it is the duty of the assessor to ascertain and report to the county clerk a correct list of the names and residences of all stockholders, with the number and assessed value of all such shares held by each.

The county clerk to whom such returns are made enters the valuations of such shares on the tax list, and the names of the respective owners of the same, and computes and extends taxes thereon the same as against the valuation of other property in the same locality.

For the purpose of collecting such taxes it is the duty of every such bank to retain so much of every dividend belonging to the stockholders as may be necessary to pay any taxes levied upon their shares, or until it is made to appear to such bank that such taxes have been paid; and if said taxes shall not be paid the collector of taxes where such bank is located is empowered to sell said shares to pay the same like other personal property.

RAILROADS.

Every person, company, or corporation owning, operating, or constructing a railroad in this State is required in the month of May in each year to make out and file with the county clerks in the respective counties in which the railroad may be located a statement or schedule, under oath, showing the property held for right of way and the length of the main and all side and second tracks and turnouts in such county and in each city, town, or village through or into which the railroad may run, describing each tract of land in manner provided by the law and stating the value of improvements located on the right of way.

Such right of way, including the superstructure of main, side, or second track and turnouts and the stations and improvements of such company on such right of way, is held to be real estate for the purposes of taxation, and denominated "railroad track," and is so listed and valued.

The value of such "railroad track" is listed and taxed in the several counties, towns, villages, districts, and cities in the proportion that the length of main track in such place bears to the whole length of the road in the State, except that the value of the side or second track, and of all station houses, depots, machine shops, or other buildings belonging to the road, is assessed in the county, town, village, district, or city in which they are located.

The movable property belonging to a railroad company is held to be personal property, and denominated, for the purpose of taxation, “rolling stock." Each railroad is required to return a list or schedule each year, containing a correct detailed inventory of all its rolling stock, which must distinctly set forth the number of locomotives of all classes, passenger cars of all classes, sleeping and dining cars. express cars, baggage cars, horse cars, and all other kinds of cars.

This "rolling stock" is listed and taxed in the several counties, towns, villages, districts, and cities in the proportion that the length of the main track used or operated in the county, town, village, district, or city bears to the whole length of the line used or operated.

The tools and materials for repairs, and all other personal property of any railroad, except "rolling stock," is listed and assessed in the county, town, village, district, or city where the same may be on the 1st day of May. All real estate, including the stations and other buildings and structures thereon, other than that denominated "railroad track," is listed as lands or lots, as the case may be, where the same is located.

The county clerk returns to the assessor of the town or district a copy of the schedule or list of the real estate other than "railroad track," and such real and personal property is assessed by the assessor. Such property is treated in all respects in regard to assessment and equalization the same as other similar property belonging to individnals, except that it is treated as property belonging to railroads, under the terms, "lands," "lots," and personal property.

At the same time that the lists or schedules above referred to are returned to the county clerks, each railroad is required to return to the auditor of public accounts sworn statements or schedules as follows:

First. Of the property denominated "railroad track," giving the length of the main and side or second tracks and turnouts, and showing the proportion in each county, and the total in the State.

Second. The "rolling stock," giving the length of the main track in each county, the total in this State, and the entire length of the road.

Third. Showing the number of ties in track per mile; the weight of iron or steel per yard used in main or side tracks; what joints or chairs are used in track; the ballasting of road, whether gravel or dirt; the number and quality of buildings and other structures on "railroad track;" length of time iron in track has been used, and the length of time road has been built.

Fourth. A statement or schedule showing

(1) The amount of capital authorized and the number of shares into which such capital stock is divided."

(2) The amount of capital stock paid up.

(3) The market value, or if no market value, then the actual value of the shares of stock.

(4) The total amount of indebtedness, except for current expenses for operating the road.

Fifth. The total listed valuation of all its tangible property in this State. A penalty for failure to make the list or schedule required is imposed. The auditor lays the statements and schedules required to be returned to him before the State board of equalization, which assesses the property in manner above described.

The county clerk enters in books provided for the purpose, under proper headings, the property of all railroads listed for taxation, and enters the valuations as assessed, corrected, and equalized, and against such valuation extends all taxes for which said property is liable, and delivers said book to the county collector, who collects the taxes therein charged against railroad property and pays over and accounts for the same as in other cases.

The State board of equalization assesses railroad property denominated as "railroad track" and "rolling stock," and is given power of authority to examine persons and papers. The amount so determined and assessed is certified by the auditor to the county clerk of each county, who in like manner distributes the values so certified by the auditor to the several towns, districts, villages, and cities in the county entitled to a proportionate value of such "railroad track" and "rolling stock." The clerk extends taxes against said values the same as against other property in such towns, districts, villages, and cities.

The aggregate amount of capital stock of railroad companies assessed by said board is distributed proportionately to the several counties in like manner as the property denominated "railroad tracks" is distributed, the amount being certified by the auditor to the county clerks of the proper counties, and by them extended and distributed as above set forth.

A tabular statement of the amount of taxes charged for collection against the equalized assessed valuation of railroad property in the State for the year 1898, taken from reports made to the auditor of public accounts by the county clerks of the several counties, shows:

Total value of all property, real and personal, assessed by State

board of equalization..

Total assessed by local assessors

Total assessment of railroad property....

Total amount of State tax

Total amount of county and all other local taxes

Total railroad tax for the year....

Aggregate of tax per mile of railroad

$76, 554, 845.00

2,069, 191.00

78,624, 036.00

439, 177.87 3,453,978.72

3,893, 156.09

392.16

This assessment of railroad property for 1899 was divided into classes as follows:

The total assessment per mile of road is $7,652. To the foregoing taxes must be added those of the Illinois Central taxed under special charter provisions.

ILLINOIS CENTRAL RAILROAD.

In consideration of the grants, privileges, and franchises conferred upon this company, it is by its charter required on the first Monday of December and June of each year to pay into the treasury of the State of Illinois 5 per cent of the gross or total proceeds, receipts, or income derived from the 6 months then next preceding, and for the purpose of ascertaining the proceeds an accurate account must be kept by said company and a copy thereof shall be furnished to the governor of the State; the truth of which account must be verified by the affidavits of the treasurer and secretary for the purpose of verifying and ascertaining the accuracy of such account, power being given for the examining of the books and papers, and for the examining under oath of officers, employers, employees of said company, or other persons.

The stock, property, and assets belonging to said company are required to be listed by an officer of the company with the auditor of State, and an annual tax for State purposes is assessed by the auditor upon all the property and assests of every kind belonging to said corporation. Whenever the taxes so levied for State purposes exceed three-fourths of 1 per cent, such excess is deducted from the percentage of gross receipts or income required to be paid by said corporation to the State, and it is exempted from all other taxation of every kind. The revenue arising from said taxes and the said 5 per cent of the gross receipts is paid into the State treasury in money and applied to the payment of the interest-paying State indebtedness; and it is further provided that in case the 5 per cent on gross receipts and the State taxes paid by this corporation do not amount to 7 per cent of the gross receipts, said company shall pay into the treasury of the State the difference, so as to make the whole amount paid equal at least to 7 per cent of its gross receipts. Under this law this railroad company pays 7 per cent of its gross income, and the amounts paid are as follows:

For six months ending

October 31, 1897
April 30, 1898.

TELEGRAPH COMPANIES.

$326, 577.69 322,505.80

649,083.49

Each telegraph company is required to return to the auditor of public accounts an annual schedule or statement showing:

1. The amount of capital stock authorized and the number of shares.

2. The amount of capital stock paid up.

3. The market value, or if no market value, then the actual value of the shares. 4. The total amount of all indebtedness, except current expenses for operating the line.

5. The length of line operated in each county and the total in the State. 6. The total assessed valuation of all its tangible property in the State. These statements are laid before the State board of equalization, which assesses the capital stock of each stock company, deducting the assessed value of property locally taxed. The tax charged on the capital stock is placed in the hands of

county collectors, in a book provided for that purpose, the same as is required for railroad property.

The office furniture and other personal property of such companies is listed and assessed in the county, town, district, village, or city where the same is used or kept.

The aggregate amount of capital stock of telephone companies assessed by said board is distributed proportionately among the several counties entitled to a proportionate value of such stock and the tax extended and distributed by the county clerks to the several towns, etc.

INSURANCE COMPANIES.

Every agent of any insurance company is required to return to the proper officer of the county, town, or municipality in which the agency is established annually the amount of net receipts of such agency for the preceding year, which is entered on the tax list, and is subject to the same rate of taxation that other personal property is subject to at the place where located, said tax being in lieu of all town and municipal taxes.

INHERITANCE TAX.

A tax is imposed upon legacies and inheritances passing to husband or wife or lineal descendants, of $1 on every $100 of the clear market value of such property received by each person, providing that any estate valued at a less sum than $20,000 shall not be subject to any such taxes, and the tax is levied only upon the excess of $20,000 received by each person. In case of the property passing to nearly related collateral heirs, the tax is $2 on every $100 of the clear market value of property received by such persons in excess of $2,000.

In all other cases the rate is as follows: On each and every $100 of the clear market value of property on all estates of $10,000 and less, $3; on all estates of over $10,000 and not exceeding $20,000, $4; on all estates over $20,000 and not exceeding $50,000, $5, and on all estates over $50,000, $6—no tax being imposed on an estate valued at less than $500.

ASSESSMENT OF PROPERTY.

In counties not under township organization the county treasurer is ex-officio county assessor, and with the advice and consent of the county board divides his county into convenient districts and appoints a deputy assessor for each.

In counties under township organization of less than 125,000 inhabitants the county treasurer is ex-officio supervisor of assessments in his county; he must have a suitable office, in which the assessment books returned to him are kept, subject to inspection of all persons, and with the advice and consent of the county board he appoints necessary deputies and clerks, whose compensation is fixed by the county board and paid by the county. In such counties where a town assessor is unable alone to perform all the duties of his office, he may, by the advice and consent of the town board of auditors, appoint suitable persons to act as deputies. The compensation of the township assessors is fixed by law as follows:

In townships of not less than 5,000 inhabitants, not less than $5 nor more than $10 per day, provided that in townships containing more than 15,000 inhabitants additional compensation can be allowed, the entire compensation not to exceed $1,000. In townships of less than 5,000 inhabitants they receive not less than $2.50 nor more than $5 per day.

In counties containing 125,000 or more inhabitants there is a board of assessors consisting of 5 persons elected, each of whom receives a salary of $3,600 per annum, which board has power to employ a chief clerk and such other clerical help as may be necessary, such chief clerk receiving compensation fixed by the board not exceeding $10 per day. This board has power to appoint as many suitable persons as in its judgment is necessary to act as deputies, whose compensation shall not exceed $5 per day.

The law provides that personal property shall be valued at its fair cash value, less such deduction as is allowed by law to be made from credits, which value is set down in one column to be headed "full value," and one-fifth part shall be set down in another column headed " assessed value."

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Real property is valued at its fair cash value, estimated at the price it would bring at a voluntary sale in the due course of trade, and one-fifth of this is placed in another column which is headed "assessed value."

The State board of equalization follows the same method of valuation and division.

The one-fifth value of all property so ascertained and set down is the assessed value for all purposes of taxation, limitation of taxation, and limitation of ind edness prescribed in the constitution or any statute.

This method of valuation and division is presumably to curb borrowing propensities of municipalities, and we are informed that it was a political suggestion for the purpose of obtaining popular support by allaying suspicion of increased taxation.

The county clerks in the several counties are required to estimate and determine the rate per cent upon the proper valuation of the property in the respective towns, townships, districts, cities, and villages in their counties that will produce not less than the net amount of the several sums required.

INEQUALITIES AND INIQUITIES IN ASSESSMENT.

If laws would in and of themselves secure full and uniform assessment of property, and equality and justice in taxation under the general property tax, it will be seen that these results should obtain in Illinois. The fact is, however, that no State in the Union exhibits greater inequality, discrimination, and injustice in taxation than Illinois under this system.

The laws are not enforced, each assessor being regarded as "a law unto himself." There appears to be the greatest discrimination in the assessment of both individual and corporate property, while enormous masses of both classes escape taxation entirely. If there is any uniformity in the assessment of property it is that of inequality, discrimination, and concealment. Charges not only of laxity and unfairness, but of venality, against assessors, especially in Chicago and Cook County, are so general and widespread as to make their truthfulness a matter of general assumption.

The practice in assessment of property discloses not only competitive undervaluation, escape, and disregard of all laws and standards by assessors generally throughout the State, but a continual strife for advantage between those of Chicago and Cook County, where a large proportion of the wealth of the State is centered, and those in the "other counties of the State," with the result up to date greatly in favor of the former.

The evils and absurdities to which this system of gross undervaluation and inequality inevitably leads, are especially well illustrated in Chicago, where it is said assessed valuations often fall as low as one hundredth of the true value and bear no apparent relation to any fixed basis.

It is shown that equalized assessed valuation of real estate in Cook County in 1873 was $228,399,663, and in 1893, $210,048,322, a decrease of 8.91 per cent; that of personal property in 1873 was $55,076,340, and in 1893, $39,879,887, a decrease of 27.59. During the period from 1870 to 1890, the population of Cook County increased 240.58 per cent, and it is fair to assume that the increase in wealth more than kept pace with the growth of population.

During the same period the decrease in the assessed valuation of real estate outside of Cook County was 39.78 per cent, and that of personalty 54.59 per cent, although the increase in population was but 24.86 per cent.

It is stated that fifty Chicago concerns, each rated from one to several millions, were assessed in 1897 at a total of less than $100,000.

Ex-Senator Charles B. Farwell is quoted as saying with respect to the personalproperty assessment of a well-known north-side man, who, from his age and experience, had to a great extent assumed charge and direction of municipal and public morals, that he had personally signed and verified a return of $2,600 of personalty, while his financial agent had invested for him more than $600,000 in mortgages alone; and of another neighbor that he was connected with a business enterprise paying at the rate of 6 per cent on an investment of $5,000,000, yet his property appeared upon the rolls at a valuation of $18,000. "It is such cases as this," Mr. Farwell said, "that shows the utter futility of the present system."

An ex-corporation attorney of Chicago stated in a public address: "Equal taxation is now impossible. The evil of venality has become a rank scandal in our municipal governments. The power to assess at one-tenth or one-hundredth of the cash value is used by assessors to touch' property owners.' A member of the firm of Siegel, Cooper & Co. is quoted as saying "There is one day in the year when we respectable business men all commit perjury—that is the day when we make returns to the assessor respecting the amount of our property."

From statements of 27 Chicago State banks in 1893 it is shown that the net taxable credits amounted to $1,058,105.25, while the net credits listed amounted