E bS2L Book ^'^ RUTHERFORD B. HAYES As Governor of Ohio. Tax Rates Reduced, Public Debt Diminished, Public Institutions Iniproyed, Refdrm in Elections Secured, Democratic Testimonial. A RECORD THE PEOPLE ARE PROUD OF. General Hayes took his seat as Goveraor of Oliio for the first time in Jan- nary, 1868 ; for the second in January, 1870 ; and for the third in January, 1876. During his administrations, and in accordance with his recommenda- tions, the State debt was largely diminished, tax rates were reduced, public charities promoted, education advanced, the authority of the State over-con- solidated and powerful corporations asserted and established, obnoxious laws swept away, important reforms instituted, the power to impose municipal in- debtedness and taxes restricted, the resources of the State developed, the fifteenth amendment to the Constitution of the United States ratified, etc. All these things have been accomplished with such utter (but characteristic) absence of ostentation and self-assertion as to leave the general public ignorant of the important part he bore in them, and to remit the inquirer to the tomes of executive documents as the only source from which to obtain information on this point. Nothing short of a rigid cross-examination under compulsory process would be effectual to extort such information from the Governor himself. These are matters of local concern. But as they may serve to give some idea of what may be expected of RuTiiERFonu B. Hayes, called to a larger theater of action, some of them and his relation thereto are given from official sources more in detail. STATE DEBT AND FINANCES. The amount of taxes collected yearly for State purposes in Ohio is nearly five million dollars. These arc expended in support and on account of the Judiciary, the Executive, and Legislative Departments, the administration of the criminal laws, the various State penal, reformatory, and charitable insti- tutions — numbering twelve in all, with about five thousand inmates — common schools, and the State debt. The Governor is charged with responsibility in the disbursement of the public revenues in that he is required by the Constitu- tion " to see that the laws are faithfully executed." At the beginning of Governor Haybb's service the State debt amounted to $11,931,341.56. In the four and a half years of his service it has been reduced by $2,773,406.05, or about twenty per cent, of the principal. • I ^ / The average yearly reduction during his administrations has exceeded that of other administrations since 1860 by $40,701.19, and that of the only- Democratic administration in the period, Governor Allen's (1874-1875), by $a08,541.87 ! In January, 18G8, he found the aggregate State levy on the dollar at 3.5 mills. When he retired, in 1873, it stood at 2.9 mills. This reduction of sixth-tenths of a mill affected a saving annually in State taxes of $914,593.86. True, the grand duplicate had been meantime increased, but the extra- ordinary demands upon the State Treasury had increased in larger proportion. The Central Lunatic Asylum at Columbus was burned Nov. 18, 1868, causing the death of six patients, and leaving without shelter 400 more. Its immediate rebuilding was a public necessity. The disaster made apparent the duty of protecting other asylum buildings from a similar fate. The Reform School for Girls, and the Soldiers' and Sailors' Orphans' Home having been established, necessary buildings were to be erected. The extraordinary expenses thus ren- dered imperative for public buildings (to say nothing of current expenses of the new institutions) amounted to over four hundred thousand dollars during his two terms. After his retirement in 1872, the State rates were increased. In 1875 they aggregated 3.1 mills to the dollar. During his present term the aggregate has been again fixed at 2.9 mills. The saving by this reduc- tion amounts to $319,715.16. LOCAL TAXATION AND DEBT. Over four-fifths of the taxes in Ohio (and this is generally true in all the States) are imposed by local authorities for local purposes, in pursuance of general laws. It is the burden of local taxation that is '?lt and causes com- plaint among tax-payers. To this subject Gov. Hayes has given particular attention. He has constantly sought, in all proper ways and on every occasion, to have the powers of local ofiicers to levy taxes and incur indebtedness restricted and confined within the limits of the public needs. His efforts in this direction constitute one of the marked features of his administrations. Despite his endeavors, the sixty-eighth General Assembly (Democratic), at its last session (1869), enlarged the taxing powers of local authorities, and for some purposes authorized taxes and debts in unlimited amounts. He was not vested with the veto power, and the only resort was an appeal to the people. The question was made an issue by the Governor in the State political campaign of 18G9, and he took the stump in favor of restricted local taxation. In his opening speech, after referring to the course of the recent legisla- tion on this subject and the depression in business matters, he said : "In this condition of the financial affairs of the State, and in the embarrassed and de- pressed condition of the business of the country, the duty of the Legislature was plain. They were to see that no unnecessary additional burdens were imposed upon the people ; that-all wholesome restraints and limitations upon the power of local authorities to incur debts and levy taxes should be preserved and enforced, and especially that no increase of liabilities should be authorized except in cases of pressing necessity. * * * The acts of the last Legislature in relation to local debts and local taxes are of the most extraor- dinary character. These acts relate to raising money for county purposes, for township purposes, for city and village purposes, and for special purposes. These taxes or debts are levied or incurred under the direction of County Commissioners, Township Trustees, or of city or village councils, who derive their authority exclusively from State legislation. The State Legislature has therefore the control of the whole matter. * * * A candid investigation ^vill show that the larger part of these enormous burdens of expenditure, debt, and taxation could aad ought to 'lave been avoided. The last Legislature afforded examples of the worst evils to which legislative bodies are liable — long Bessions, excessive legislation, unnecessary expenditures, and recklessness in authorizing local debts and local taxes. These evils ' have increased, are increasing, and ought to be diminished." Xiet there bo reform as to all of them." This subject was pressed by him with great power and effect in all hia speeches throughout the State. And the election resulted in returning a Leg- islature in favor of reform in these particulars. In his next annual Jlessage to the Legislature he said : "The Constitution makes it the duty of the Legislature to restrict the powers of tax- ation, borrowing money, and the like, so as to prevent their abuse. I respectfully sug- gest that the present laws, conferring these powers on local authorities, require extensive modification in order to comply with this constitutional provision. Two modes of limit- ing these powers have the sanction of experience. All large expenditures should meet the approval of all thosowhoare to bear their burden. Let all extraordinary expendi- tures, therefore, be submitted to a vote of the people, and no tax be levied unless ap- proved by a majority of all the voters of the locality to be affected by the tax, at a special election, the number of voters to be ascertained by reference to the votes cast at the State election next preceding such special election. Another mode is to limit the rate of taxation which may be levied, and the amount of deb'' which may be incurred. It has been said that, with such restrictions upon the powers of local authorities, the Legisla- ture will be importuned and its time wasted in hearing applications for special legisla- tion. The ready answer to all such applications by local authorities will be to refer them to their own citizens for a decision of the question." The Sixty-ninth General Assembly, at its first session, (1870), made great advances in the direction pointed out. The power of municipal taxation was largely curtailed. Still, the evil had not been fully remedied. The Governor was dissatisfied. In his Message to the Legislature, at its second session, he used this strong language : " The increase of local taxation has been far greater than the growth of the State in business, population, and wealth. It is not to be doubted that this burden has grown to dimensions which seriously threaten the prosperity of the State. In respect to these evils it is undoubtedly easier to find fault than to provide a remedy. No single measure will remove them. Probably no measures which the General Assembly can adopt will of ■themselves accomplish what is desired. " A complete reform is impossible, unless the city, county, and other officers are dis- posed and thoroughly competent to do the work of cutting off every unnecessary expendi- ture. Much, however, can be accomplished by legislation. * * * Let the General Assembly firmly adhere to the policy of the Constitution, and refuse to enact special laws, granting powers to tax or make assessments. Let such powers be exercised only in pursuance of general laws. Local authorities should be empowered to levy no higher rate of taxation than is absolutely required for practical efficiency under ordinary circumstances. In extraordinary cases general laws should provide for the submission of the proposed tax or assessment to the people to be aifected by it, under such regulations that it cannot be levied unless at least two-thirds of the tax-paj'ers approve the measure. One of the most valuable articles of the present State Constitution is that which prohibits the State, save in a few exceptional cases, from creating any debt, and which provides for the payment at an early day of the debt already contracted. I am convinced that it would be wise to extend the same policy to the creation of public debts, by county, city, and other local authorities. The rule ' pat as you go ' loads to economy in pubUc as well as in private affairs ; while the power to contract debts open the door to wastefulness, extrav- agance, and corruption." The Legislature at that session greatly reduced the local rates and re- stricted expenditures. The grand duplicate had increased, it is true, in four jears a little less than thirty per cent., making a reduction of rates necessary. But such reduction, recommended without reference to the increase of duplicate, was made out of proportion to it, as will be seen by the following statement : CITIES AND VILLAGES. Before reduction, tlie aggregate rates upon tlie dollar authorized by law for all municipal purposes, except school, amounted to — in villages, 31.75 mills; in cities, second class, 35.7.5 mills; in cities, first-class, 36.7.5 mills. After the reduction, to— in villages from 8 to lO mills, according to grade; in ■cities, second class, 9 to I'Z mills, according to grade ; in cities, first class, 12 to 16 mills, according to grade — reduction of rates icing more than sixty per cent. COUNTIES. The aggregate of rates of levy upon the dollar for ordinary county pur- poses in 1869, ranged from 3.5 to 18 mills, according to amounts of county duplicates. After the reduction it ranged from 1 to 13 mills—