Johnson County, Missouri - Chapter 8: Finances, 1881

Chapter 8: Finances

Introductory - The Assessment of 1835 - Orders of the Court - Delinquent Tax List of 1836 - The County Treasurer's Reports - The Panic of 1873 - Expenditure of 1855 - Township Bonds - Railroads - Tax Levy of 1881 - The Annual Report of the County Clerk.

In earlier days its financial policy was certain, and there was no trouble with bonds or county debt. Then every thing was kept square, every official performed the functions of his office to the best of his ability, and but few had the bitter epithet of dishonesty thrown upon them.

In the earliest reports on the finances, the business covered so little ground that it took but little effort to keep the books in a condition easily understood.

In 1835, when the population was scattered over the county, it was no small task to be a county collector. This officer not only had headquar¬ ters at the county seat, but was obliged to call upon all tax-payers at their residences in order to collect their assessments.

But few sought office for the salary, in those days, since the remunera¬ tion was by no means adequate to the toils. It was reserved for a later day and another generation to seek office for its spoils, in which Johnson county has had her share. In former years, political contests, while excited. so far as regards state or national issues, had nothing in common with them when matters of local nature came up for suffrage. Personal vituperation and insidious attacks upon character were not then so preva¬ lent as now. Then persons were sought to fill offices. Of late years the temptation to use funds belonging to the public for private ends has been too strong for all of our officials to withstand, and it is said that the countytreasury contributed more often to the funds of private individuals, after the close of the war, than to its legitimate use.

We herewith append some useful statistics of the county finances. By these may be seen how, from a small assessment in the year 1835, the county finances have grown to an enormous business, one which troubles the people of the county more than all others beside.

Ordered by the county court of Johnson county, that one hundred per centum be assessed on the amount of the state taxes, for the use of the county.

At a special term of court, in September, 1835, the county treasurer was ordered to pay John H. Townsend, clerk of court, the sum of thirtytwo dollars and eighty-eight cents, for his services, being the first salary received. -

The first county assessor did his work in thirty-two days, at one dollar and fifty cents per diem, amounting to forty-eight dollars. His name was James Carmichael.

The first collector, Richard Hancock, for the year 1835, had the follow¬ ing delinquent list of taxes presented to the .county court, Tuesday, November 3, 1835:

At his final settlement of the same year, he paid over to the county, three hundred and seventy-six dollars and eighty-five cents, in full of all taxes collected by him, merchants' and grocers' licenses included. He was allowed as commission for his services, thirty-two dollars and eightyone cents.

P. L. Hudgins, first treasurer, received ten dollars as his salary for the year 1835, and twenty dollars as commissioner of school lands; six dollars as expenses of printing, in Clay county papers.

Collections made for state, $55.00; county, $53.00; duty, $72.00; road, $5'. 30; a balance not reported at previous term. The following order in the final settle¬ ment:

Be it remembered that Richard Hancock, collector of Johnson county, made a settlement, and being allowed by the court the sum of $23.04, commission on $334.46, at 7 per cent; and the sum of $3.23, commission on merchants' license,, and grocers $1.51; and on the amount of $25.91 as a road commission, on the same 11 per cent; leaving a balance in the hands of the collector of $487.49, which is ordered to be certified to the county treasurer.

During the early history of the county, revenues were light, although the rate of taxation was very little, if any, less than at present. During the first four or five years the county expenses ranged from three hundred and fifty to one thousand dollars. The books were not kept in a very systematic manner, and it is difficult now, even as it must have been then, to so far understand the system of book-keeping as to be able to determine accurately the exact condition of the county finances. This much we know, that with the very limited resources at their command, the persons whose duty it was to manage county affairs, kept the machinery in opera¬ tion, and no large debts were contracted. The heavy burden of county debt has been created of comparatively recent years. Prior to the war, no one felt heavily taxed, to pay interest on bonds. The bonds that the county now has out will soon become due, and the people will, no doubt, feel relieved when the payment has been made.

A complete history of the finances of the county would, of itself, make a large volume, and the facts necessary for such an authentic account are not at hand, even if we desired to record them. There are to be found certain records in the county, from which we have been enabled to form some idea of the financial affairs from the organization of the county to the psesent time. In this treatise, it is our object, to give a brief, clear, and concise report of the financial operations of the county, before and after the war, so that the reader may have an insight into some of the more salient features of the Johnson county finances. To many of the older settlers these reports will appear homelike, while to the immigrant it will be interesting because of its novelty.

We see that the county, during the first twenty years of its history, had but little need of revenue except for public building and the pay of its officers. For more than a score of years, prior to the war, the county affairs were economically managed, and the taxes, though not every year very light, were somewhat less than at present, while the valuation was many times smaller than now.

But from 1873 to the present time the financial interests of the county have been in a precarious condition. During the early part of 1874, Mell Foster was indicted by the grand jury of Johnson county, for attempting to defraud the county out of large sums of money under the role of "Hugh Boulder." He was confined for a while in the county jail, and finally sent to the penitentiary, but now has his liberty. It was thought by many that Mell Foster had plenty of company in the steal, and that there are some other "Boulders" lying around loose in Warrensburg that ought to bear Mell Foster company.

Through the successful management of the Missouri Pacific railroad scheme, the county secured the desired road, which was completed through the county during the summer of 1865, and at present the county has paid every cent of the $100,000 they provided. At first it appeared that the taxes of the time prior to the war were sufficiently high for all purposes, but of these late years the burden has been increased many times. High tax-bonded indebtedness, and the mismanagement of the county finances have all had a bearing in making the people more careful in the future.

Internal Improvement Fund

The salaries of county officers have been retrenched some during the last few sessions of the state legislature. The present officers' fees and salaries are by no means as great as a few years ago.

During the year 1875, on account of the grasshopper pest, the tax col¬ lector withheld his work till the time of collecting was extended; how¬ ever, a small per cent, was added and collected.

As the panic of 1873 continued, one by one mortgaged farms were sold, and by the middle of th'e "centennial year" no less than one hundred farms had been wrenched from the owners by the iron grasp of hard times.

The failure of the First National Bank of Warrensburg, Oct. 17, 1878, created no little excitement throughout the county. This bank appeared to be a permanent institution, and many citizens had deposited here their last dollar for safe keeping. When the news reached the depositors' ears the county soon became fired and frantic with indignation. The stock¬ holders of this institution succeeded, by the first of 1881, in paying off all the deposits, very unexpectedly to the people.

The railroad interest of the county has always paid. The following facts for the year 1873, show the business at that time for the Holden station: Stock shipped, 385 cars. The rate of charges for stock to St. Louis, is $43 per car, amounting on the above to $16,555. During the months of October, November and December, 1,966 tickets were sold, of which 749 were for passage over the Missouri, Kansas & Texas road; the balance to the Pacific road, making a total amount of sales, $4,087.10. Freights during this year, were as follows to St. Louis: First class, 65 cents per 100 lbs.; second class, 55 cents per 100 lbs.; third class, 45 cents per 100 pounds. Rates to Kansas City, first class, 30 cents per 100 lbs.; second class, 25 cents per 100 lbs. ; third class, 20 cents per 100 lbs. The stock shipped over the M. K. T. road, from this point, was 125 cars.

The railroad agent did not furnish us >with any statistics of the business of W arrensburg at that time, but it is, no doubt, much greater than that of Holden.

During the past year the county court refused to issue license to dram¬ shops, but with the beginning of 1881, the license system was again resumed, and bids fair to run up to $1,000 before the close of the present year. The subject of license and anti license has been discussed consid¬ erably in the county, and although the county court refused for the interim of twelve months to grant liquor license, yet the law was evaded and intoxicating liquors were often smuggled and sold in defiance of the law.

The citizens of this county had suffered so much from legalized plunder under the old county system from 1865 to 1872, that they hailed with joy the dawn of the township system, which became a law during the session of the legislature of 1872.

When the new officers were elected of that year, they made it a part of their duty to investigate the proceedings of the old court, and especially all of its financial transactions, in order to verify whether or not the people had been wronged.

In 1873, this county had $304,500 indebtedness; on the eve of the panic it was no easy burden to bear, but with strict economy and vigilant watchcare over the treasury, the county finances have been in good shape, and as the county is just entering a new era of prosperity, she will not forget the trying days that she had in opening up the dens of the financial frauds.

Each of the one hundred and twenty-nine school districts made their own levy in excess of four months of school. The levy on all property appears to be growing astonishingly high as the county becomes better settled, notwithstanding the cry of retrenchment and reform.

When the panic broke out in 1873, Warrensburg had three flourishing banks, with capital and available assets of half a million dollars. The Johnson county savings bank, conducted by Geo. W. Colburn, is the only one of these institutions that bore the shock of the panic and is now in existence. The First National bank, with A. W. Ridings, president, and the Warrensburg Saving bank with E. A. Nickerson, president, both went down, but after the panic year. The First Nation bank of War¬ rensburg failed, October 17, 1878. At first it created considerable anxiety among those interested, but the assets with an assessment of 50 per cent on the stockholders, paid, by the first of the year 1881, all creditors in full, with six per cent on the debts from time of failure, leaving enough assets to pay the stockholders from two-thirds to three-fourths of the assess¬ ment they had paid in. This was expected business to many, who per¬ haps, by this time, are ready to congratulate the honest stockholders and Mr. J. H. Kinsel, receiver.

An Aggregate Abstract

of the taxable property and its valuation, in the county of Johnson, state of Mis¬ souri, on first day of August, 1880, as set out in the assessor's book for the year 1881:

Valuation

I, R. B. Harwood, clerk of the county court of Johnson county, state of Mis¬ souri, do hereby certify that the foregoing is a true, complete, and correct abstract of the taxable property in the said county; taken from the assessor's book for 1881.

In witness whereof, I have hereunto set my hand and affixed the seal of the county court of Johnson county. Done at office in Warrensburg, this 18th day of February, A. D. 1881.

It must be remembered that this property is not assessed at one-half of its value. The land, after the board of equalization met, was raised to $8.58 per acre. This is not more than one-half the real value of lands. Good lands sell at present at from $20 to $35 per acre in the county. The personal property is assessed very low, while stock of all kinds bear a good market price.

The taxes for the ensuing year are 5 per cent higher than last year. The present tax rate is 40 cents on the $100 for all county purposes, and 25 cents for county interest. The average school tax is 43 cents on the $100, a trifle higher than last year.