Journal of the Assembly of the State of New York

was $769,306,410. But it ought to be clearly understood, that this valuation for tax purposes does not represent any fair valuation of the property assessed, or even an approximation thereto, and in great part for the following reasons.

The taxation required to defray the expenditures of the State, as a whole, is apportioned to the several counties of the State according to their property valuation; and hence there has been for years, and is now, a strife between the different boards of county officials to run down the valuation of property to the very lowest practical figure, in order to divert as large a proportion of the State taxation as possible from themselves, and throw it upon the neighbors; and as some of the counties in the interior of the State have been so successful in doing this as to actually reduce their valuation to thirty, twenty, and even a smaller proportion of the real and true value of the property assessed, a similar course of procedure has been forced upon the tax officials of New York, as a matter of necessity and local protection. And thus it has come about that, instead of the returned assessment valuation of $769,306,410 for 1871-2, representing the true market value of the real estate of the city and county of New York, in private ownership, it does not, in all probability, represent more than forty per cent of such true value; an estimate which, instead of being a conjecture, is based on a large amount of evidence, recently collected by an expert for the board of commissioners for revising the laws of the State relative to taxation.

The conclusion, therefore, seems warranted that the value of the real estate of the city of New York-public and private-which may be fairly regarded as an available security for the liquidation of the city and county debts, cannot be less than two thousand million dollars on which the present debt, as above estimated, namely, $100,000,000 would be equivalent to a mortgage of five per cent.

In this estimate, it will be observed that no account has been taken of the valuation of the personal property owned or held by citizens of the city or county of New York. The amount of such property valued and assessed for the year 1871-2 was $306,947,223. The investigations of the State commissioners lead, however, to the conclusion that this amount does not represent so much as twenty per cent of the real value of this description of property concentrated in the city of New York; or, in other words, that the true value of the personal property of New York city cannot be estimated at less than fifteen hundred millions. Much of this property, it must be acknowledged, can never be reached for assessment purposes by any law which the ingenuity of man can devise; or which any civilized people would tolerate in respect to execution; but, whether returned for assessment or not, it nevertheless exists, and by increasing the ability to pay, operates to decrease the real burden of taxation imposed on other property of a more tangible and accessible character.

It is also to be noted, that if the new plan of assessing personal property recommended by the State board of commissioners, and which is to be presented this winter to the Legislature in the form of a definite code, is adopted, namely, doing away with the direct assessment of individuals for personal property, and substituting therefor, as an equivalent the assessment of individuals on a valuation of three times the rent or rental value of the premises by them occupied, the amount or equivalent of such property returned for assessment and taxation will be very greatly

increased; and the financial resources of the city be thereby correspondingly augmented.

INCREASE OF NEW YORK IN POPULATION AND WEALTH.

In estimating the prospective ability of the city of New York to sustain and liquidate indebtedness the recent and prospective increase of the city in population and wealth constitutes an element of not a little importance. Thus, from 1820 to the year preceding the outbreak of the civil war, 1860, the average rate of increase for each successive period of five years, was 28 per cent; a continuous rate of growth, probably without precedent, in any country. During the period of the war, or from 1860 to 1865, the population of the city decreased 93 per cent. Since 1865, or during the five years from 1865 to 1870 inclusive, the gain in the population was 263 per cent; thus indicating that the average rate of increase experienced prior to 1860, was again likely to be approximated.

The increase in the valuation of the property of the city and county for assessment purposes, during the ten years from 1860 to 1870, was 821 per cent.

The present increase in the value of the real estate of the whole city for assessment purposes, is estimated by experts to average about five per cent per annum.

RELATION OF TAXATION TO POPULATION AND PROPERTY.

It is also interesting to note the relation which taxation sustains to population and property in New York and some of the other leading cities of the country. The following data are derived from the most authentic sources.

City of New York.-Population, 1870, 952,292; aggregate State, city, county and school taxes, 1870, $25,403,859; special taxes as est:mated by officials, $2,000,000; total taxation, $27,403,859. Taxation per capita, $29.08.

Boston.-Population 1870, 250,526; aggregate of all taxation, 1870, $9,050,420; taxation per capita, $36.

Chicago. Population 1870, 298,977; total taxation, general and special, 1870, $9,256,333; taxation per capita, $30.

But as in the opinion of some experts, the burdens of taxation in any community are properly represented by the relation which the aggregate of the annual levy of taxes sustains to the value of property assessed, attention is further asked to the following comparisons:

In Boston and Philadelphia real estate is returned for assessment at nearly its full marketable value. On this basis, the relation of taxation to real estate valuation in these two cities would be as follows:

Boston. Real estate valuation, 1870, $365,593,100; aggregate taxation 1870, $9,050,420; ratio of taxation to real property valuation, 1

to 40.

Philadelphia. Real estate valuation, 1871, $491,844,096; aggregate taxation, 1871, $9,026,753; ratio of taxation to real property valuation, 1 to 54.

Cincinnati.-Real estate valuation as made anew for 1871, $123,427,888; aggregate taxation 1871, $4,004,035; ratio of taxation to real property valuation, 1 to 30.

In the city of New York on the other hand on valuation of real estate acknowledged to be only about 40 per cent of the real property, the

ratio of aggregate taxation to real property valuation would have been in 1870, as 1 to 27; but if the valuation of the real estate of New York were advanced in proportion to the value taken for assessment purposes in Boston and Philadelphia, the ratio instead of being as 1 to 27, would be much more favorable than in either of the cities above mentioned, or in the approximative ratio of at least 1 to 65.

It is therefore evident, that in comparison with the actual accumulated and tangible wealth of the city of New York, any liability, on account of indebtedness, which the city has yet incurred, or is prospectively likely to incur, is very insignificant; and, with a reasonably honest, efficient and economical government, such as public opinion and legislative authority, guided by recent experiences, seems certain to compel, there can be no good reason why the interest bearing debt obligations of the city should not be regarded as the most desirable of investments. I am, yours, most respectfully, DAVID A. WELLS, Chairman Board of Commissioners for revision of the laws of the State of New York, relating to the assessment and collection of taxes. To Hon. JOHN T. HOFFMAN,

Governor of the State of New York.

I have also received a letter, dated 29th December, 1871, from Hon. Andrew H. Greene, comptroller of the city of New York, in which he

says:

"Immediate legislation is essential for the maintenance of the credit of the city by the meeting of the obligations maturing early in January and to make provision for past claims which are due and which are of pressing importance. Equally important is prompt legislation to make provision for the maintenance of the government of 1872.

"As the law appears now (chap. 583, sec. 3 of 1871), no authority exists to make appropriations until May next, leaving the four first months of the year 1872 without any provision by which payments of necessary expenses for these months can be made."

I respectfully ask your immediate attention to those suggestions, and such early legislation with reference to them as may be necessary and proper.

JOHN T. HOFFMAN. Which was laid on the table and ordered printed, and referred to the committee on the affairs of cities, when appointed.

(See Doc. No. 6.)

On motion of Mr. Alvord, the House took a recess until 4 oclock P. M.

FOUR O'CLOCK P. M.

The House again met.

The Hon. David S. Paige appeared, and the oath of office was administered to him by the Speaker.

Mr. Houghton offered for the consideration of the House a preamble and resolution, in the words following, to wit:

Whereas, Hon. George West, member elect from the first Assembly district of Saratoga county, is detained from attendance in this House by ill health; therefore,

Resolved, That his son, George West, Jr., be permitted and authorized to take his seat upon this floor for the purpose of drawing his father's

seat.

Mr. Speaker put the question whether the House would agree to said resolution, and it was determined in the affirmative.

On motion of Mr. D. L. Babcock,

Resolved, That Mr. Springsted, of Albany, be allowed to select his seat, on account of deafness.

On motion of Mr. Prince,

Resolved, That Mr. Strahan, of Orange, being detained from the House by sickness, Mr. B. B. Bignall, of Tioga county, be allowed to select a seat for him.

On motion of Mr. Rose, Mr. Alvord was allowed to retain the seat formerly occupied by him.

Mr. Fort offered for the consideration of the House a resolution, in the words following, to wit:

Resolved, That C. S. Sage, of Oswego, be allowed to select his seat, on account of deafness.

Mr. Speaker put the question whether the House would agree to said resolution, and it was determined in the negative.

Mr. I. D. Brown moved to reconsider the vote upon said resolution. Mr. Speaker put the question whether the House would agree to said motion, and it was determined in the affirmative.

Mr. Speaker then put the question whether the House would agree to said resolution, and it was determined in the affirmative.

Mr. Alvord moved that the Hon. Mr. Osgood be allowed to select his seat, on account of his infirmity.

Mr. Speaker put the question whether the House would agree to said motion, and it was determined in the affirmative.

Mr. Prince, from the committee appointed to examine the ballots for drawing seats, reported that the committee found the ballots correct. The drawing was then proceeded with, and resulted as follows: