The toll bridges reported for New York are the Brooklyn and Williamsburg bridges, which yield nearly $400,000 in tolls as shown in the text for Table 17. The items shown in the column "miscellaneous" were for the following purposes: Chicago, Ill., general real estate; Boston, Mass., ferries with the exception of $18,012 in the column "all other," which was for rapid transit subways and tunnel; Cincinnati, Ohio, leasehold rents; New Orleans, La., Public Belt Railroad with the exception of $5,160 in the column "salaries and wages," which was for sugar sheds; Portland, Oreg., dredges; Wilmington, Del., paving plant for which a detailed report could not be secured, and which possibly should be classified as a municipal service enterprise and included in Table 6; Charleston, S. C., powder magazine; Portland, Me., liquor agency; Dallas, Tex., fair park; Augusta, Ga., canal; Racine, Wis., artesian well.

TABLE 8.

Payments for interest on debt obligations. The payments for interest included in Table 8 are limited to those charged to expenses. Payments for interest charged in the city accounts to outlays are included in Table 9, and are reported separately in the text for that table. Included in this table are certain payments of counties containing cities of Group I, for which counties no similar payments have been shown in previous Census reports. Payments referred to were as follows: Chicago, Ill., $344,092; Pittsburg, Pa., $212,128; Cleveland, Ohio, $68,863; Buffalo, N. Y., $32,302; Detroit, Mich., $73,936; Cincinnati, Ohio, $103,496; and Milwaukee, Wis., $20,901.

Of the total amount of interest payments, 94.4 per cent was borne by the city corporations, 2.4 per cent by school districts, and 3.2 per cent by other independent divisions.

The aggregate of all interest payments charged to expenses was $71,256,717. Of this amount, $10,790,175 represents mere transfers, or amounts of money paid by the various divisions of the government of the city as interest upon city securities held by the city sinking, investment, and public trust funds; the money remains in city funds devoted to municipal purposes and constitutes municipal assets. The total amount paid to the public was $60,466,542. There was received during the year as accrued interest on city bonds sold and in correction of payments in error $404,840, leaving $60,061,702 as the net expenses for interest, all paid to outside holders of city securities, and free from duplication of payments and receipts. The payments in error later corrected by refunds aggregated $13,362, as follows: Newark, N. J., $35; Minneapolis, Minn., $7,183; Kansas City, Mo., $800; Bridgeport, Conn., $14; Somerville, Mass., $2,112; Harrisburg, Pa., $70; Holyoke, Mass., $20; Mobile, Ala., $1,940; Atlantic City, N. J., $561; and Elmira, N. Y., $627.

In the classification of interest according to loans on which paid, 70.2 per cent of the total gross payments was interest on loans for general purposes; 4.6 per cent on special assessment loans; and 25.2 per cent on loans for public service enterprises. As a rule the interest upon special assessment loans constitutes a burden not upon the entire municipality, but only upon the property affected by such loans; it is impracticable, however, to make a segregation showing the amount of such interest collected by the city from the owners of such property and paid to the holders of the bonds. In the case of loans for public service enterprises, the interest on the debt is often charged against revenues from the enterprises on account of which the debt was incurred.

In addition to the classes of data presented in the table of interest payments for 1906, Table 8 for 1907 shows per capita payments for interest, the average rates of interest paid on the different classes of loans, and the highest and lowest rates on all loans. The annual interest charge for the 158 cities increased during the year by $6,680,225, or 10.3 per cent; for the cities of Group I the per cent of increase was 12.4; for Group II it was 4.3; for Group III, 7.3; and for Group IV, 7.3.

The highest average interest rates in each group of cities were as follows: Group I, 4.1 per cent in Chicago, Ill., Cleveland, Ohio, Milwaukee, Wis., and New Orleans, La.; Group II, 5.4 per cent in Denver, Colo.; Group III, 5.5 per cent in Tacoma, Wash.; and Group IV, 5.6 per cent in Birmingham, Ala. The lowest average rates were found in Washington, D. C., of Group I, 3.2 per cent; Providence, R. I., of Group II, 3.6 per cent; Hartford, Conn., of Group III, 3.6 per cent; and Binghamton and Elmira, N. Y., of Group IV, 3.6 per cent.

A study of the table shows that interest rates vary more or less in different parts of the country. Three ranges in the average rates are found to correspond approximately with three continuous belts of territory, as shown below:

(a) Average interest rates 3.2 to 4 per cent. The territory north of the Potomac river and east of the state of Ohio contains 71 cities of over 30,000 population; of these 46 report rates within the range stated, and 25 report higher rates as follows: 7 cities, 4.1 per cent; 2 cities, 4.2 per cent; 9 cities, 4.3 per cent; 2 cities, 4.4 per cent; 2 cities, 4.5 per cent; 2 cities, 4.6 per cent; and 1 city, 4.7 per cent.

(b) Average interest rates 4.1 to 4.7 per cent. The territory including Ohio, Virginia, North and South Carolina, Georgia, Kentucky, Missouri, Nebraska, Montana, and all states within these limits and northward to the Canadian border contains 57 cities of over 30,000 population; of these 43 report average rates ranging from 4.1 to 4.7 per cent, while 8 report average rates ranging from 3.2 to 4 per cent, and 6 report average rates above 4.7 per cent.

(c) Average interest rates 4.8 to 5.6 per cent. The territory including Florida, Alabama, Tennessee, Arkansas, Kansas, Colorado, Washington, and all states south contains 30 cities of over 30,000 population; of these 22 report average rates within the range indicated, while 3 report rates falling within range (a), and 5, rates falling within range (b).

It may be noted that the cities of New Jersey and New Hampshire, which geographically are situated in the territory in which the rates of range (a) prevail, report for the most part rates which fall within range (b); and that the cities of Louisiana and Utah, situated in the territory in which the rates of range (c) prevail, report rates falling within range (b), while the cities of California, which is situated in the same belt of territory, report rates falling within range (a). Little space can be spared for the discussion of these anomalous cases, but it appears probable that the lower interest rate in California cities is connected with their limited debt. The gross indebtedness of San Francisco is less than half as great as that of the city of Group I reporting the next smallest indebtedness; and comparison of the statistics for the 4 California cities with those for the 4 other Pacific slope cities after allowing for the uncertainty of per capita figures for 6 out of these 8 cities-shows that the highest per capita indebtedness, gross or net, for a California city is lower than the lowest for a northern Pacific city. The Massachusetts cities showing high average interest rates, together with Woonsocket, Yonkers, Schenectady, Jersey City, and Paterson, report at the same time large revenue loans outstanding, and Table 8 shows that interest rates are generally higher on loans of this character. The same explanation can not be put forward, however, in the case of other New Jersey cities with high interest rates, nor of any Pennsylvania city. Finally, a number of the cities which are situated in the territory where the rates of range (b) prevail, but which report rates within range (a), are cities of large population.

TABLE 9.

Payments for outlays.-Under "outlays" the Bureau of the Census includes all costs, paid or payable, incurred by cities in the purchase of land and in the purchase or construction of buildings and other structures, equipments, improvements, and additions that are more or less permanent in character. Table 9 presents in greater detail information such as was shown in Table 8 of the special report for 1906, and presents also a classification of outlays by division of government by which such payments were made. This table includes certain outlays of counties containing cities of Group I, for which payments of a similar character have not heretofore been shown in Census reports, as follows: Chicago, Ill., $2,449,463; Pittsburg, Pa., $853,176; Cleveland, Ohio, $383,840;

Buffalo, N. Y., $251,672; Detroit, Mich., $34,958; Cincinnati, Ohio, $163,512; and Milwaukee, Wis., $54,249. Payments reported in the column "other divisions of the government of the city" for Chicago, Ill., were made by park districts, $2,668,064; sanitary district, $1,449,324; Cook county, $2,449,463. Payments shown in this column for other cities were made by the following divisions of government: Pittsburg, Pa., by Allegheny county; Cleveland, Ohio, by Cuyahoga county; Buffalo, N. Y., by Erie county; Detroit, Mich., by Wayne county; Cincinnati, Ohio, by Hamilton county; Milwaukee, Wis., by Milwaukee county; Portland, Oreg., by Port of Portland; Peoria, Ill., by pleasure, driveway, and park district; Tacoma, Wash., by Metropolitan Park Board; Portland, Me., by Portland Bridge district; and Springfield, Ill., by pleasure, driveway, and park district.

The purposes of outlays reported in the column "for all other purposes" under "paid or payable from special assessments," are shown in Table XI. In 1904, 25.2 per cent of the total outlays were paid or payable from special assessments; in 1905, 21.4 per cent; in 1906, 23.5 per cent; and in 1907, 24.5 per cent.

TABLE XI.—Payments for outlays, paid or payable from special assessments included in column for all other purposes,' Table 9.

The classification of payments to the public by object is designed to show, approximately, to what extent outlays for permanent improvements and additions are made by contract work, and to what extent by day labor under the direction of city officials.

Payments reported in the column "all other" under "protection of life and property" were made for combined police and fire alarm systems, electrical departments or bureaus, levees, subways and conduits for wires, department of public safety, recorder of deeds, register of deeds, retaining walls, piling and planking river banks, together with other measures for guarding against damage by lake or river, and life boats.

Those reported in the column "all other" under "health conservation and sanitation" were for the following purposes: Public comfort stations, drainage of low lying lands, and construction of creek walls as sanitary measures.

Those reported in the column "all other" under "highways" were made for the improvement of bays, rivers, and harbors, boulevard, viaduct, steps to hill tops, and stone crusher.

The payments reported in the column "miscellaneous" " under the heading "groups of departments, offices, and accounts" were for the following purposes: Pittsburg, Pa., soldiers' memorial hall, $96,616, and real estate, $2,287; Cincinnati, Ohio, memorial, $55,340, and fair ground building, $842; Washington, D. C., property yard; Seattle, Wash., land for stables and shops; Portland, Oreg., interest charged to outlay for which the purpose was not reported; Richmond, Va., Jamestown Exposition building, $10,000, and miscel

neous real estate, $5,000; Saginaw, Mich., deep wells for drinking water; and Superior, Wis., wells.

Municipal service enterprises reported in column "all other" were as follows: New York, N. Y., asphalt repair plant, $21,346, and high pressure water system, $2,148,628; Chicago, Ill., municipal waterworks shops, $15,108; St. Louis, Mo., industrial school bakery; Pittsburg, Pa., Columbus, Ohio, and Topeka, Kans., asphalt repair plants; Auburn, N. Y., quarry and stone crusher; and Fort Worth, Tex., paving plant.

A classification of the amounts reported in the column "all other" under the heading "public service enterprises" is presented in Table XII:

The outlays shown in the above table in the column "miscellaneous" were for the following purposes: New Orleans, La., Public Belt Railroad; Rochester, N. Y., school lunch rooms; Portland, Oreg., dredges; Dallas, Tex., fair park; Augusta, Ga., canal.

Where payments for interest on debts incurred for construction work are made before the completion of the work, they are classified as "outlays," if so charged on the city books. Table 9 includes interest payments charged to outlays for the following cities: New York city, $162,299; Boston, Mass., $184,402; Baltimore, Md., $73; Detroit, Mich., $2,285; Los Angeles, Cal., $275; Seattle, Wash., $4,204; Portland, Oreg., $889; South Omaha, Nebr., $120; and Rockford, Ill., $48. In some of these instances it is doubtful if the interest should have been charged to outlays.

TABLE 10.

Payments and receipts on account of debt. Of the payments and receipts shown for the cities of Group I, certain amounts were on account of debt of

counties containing those cities. Such payments and receipts are shown for 1907 for the first time in Census reports. The amounts thus included are as follows: Chicago, Ill., payments, $1,835,292, and receipts, $3,401,865; Pittsburg, Pa., payments, $18,282, and receipts, $718,407; Cleveland, Ohio, payments, $161,239, and receipts, $109,224; Buffalo, N. Y., payments, $147,827, and receipts, $427,733; Cincinnati, Ohio, payments, $171,770; and Milwaukee, Wis., payments, $80,350.

Of the total payments for the redemption or cancellation of debt, $9,606,373 was paid by independent school districts, $7,037,814 being paid by cities of Group I, $964,831 by those of Group II, $685,179 by those of Group III, and $918,549 by those of Group IV. The receipts of independent school districts on account of debt obligations issued aggregated $11,770,521, of which $7,373,628 was reported by cities. of Group I, $1,785,548 by those of Group II, $1,257,891 by those of Group III, and $1,353,454 by those of Group IV.

Buffalo, N. Y., $982,662; Detroit, Mich., $737,874; Cincinnati, Ohio, $1,630,849; and Milwaukee, Wis., $736,668. In Table 11 the receipts from general revenues of the various cities are classified by the division of the government of the city receiving, by character, and by source.

The column "to public" includes payments by Massachusetts cities to the state on account of sinking funds for redeeming metropolitan sewer, park, and water loans, armory loans, and grade crossing loans.

Of the 158 cities, 128 increased and 30 decreased their indebtedness during the fiscal year 1907. The amount received from the issue of debt obligations was greater than the amount expended in their redemption and cancellation by $137,396,847, this amount representing the net increase of debt for the cities reported in 1907.

In Table 9 it is shown that in 1907 the expenditures of the cities for outlays, exclusive of payments in error, aggregated $243,980,964. This amount exceeds by $106,584,117 the increase of debt for the 158 cities taken as a whole; in other words,' of the aggregate expenditures made for improvements and additions of a more or less permanent character, 43.7 per cent was paid out of current revenues, or out of those nonrevenue receipts-as from the sale of real property and from insurance--which are especially applicable to meeting outlays. A comparison of the details of Table 10 with those of Table 9 makes possible a division of the cities into three classes: (1) Those which paid for all their public improvements out of current revenues; (2) those which incurred debt to meet a part or all of the cost of public improvements; and (3) those which incurred debt in order to meet even ordinary expenses. It is probable, however, that in some cities of the third class a part of the debt was incurred in order to make improvements in the succeeding year. This comparison discloses the fact that it is not the fixed policy of American cities, taken as a whole, to finance all permanent improvements by loans. In this respect the American cities offer a marked contrast to the cities of Great Britain.

TABLE 11.

Receipts from general revenues.-General revenues consist of those compulsory or voluntary contributions of private individuals or corporations which are levied or collected to defray the general costs of government, but which are not conditioned upon the performance of any specific service to the individual contributor. In the report for 1907 the Census includes, for the first time, certain receipts of counties containing cities of Group I, as follows: Chicago, Ill., $3,284,160; Pitts

The greater portion of the general revenue receipts of cities was received by the "city corporations," 86.4 per cent being received by city corporations, 9.7 per cent by school districts, and 3.9 per cent by "other divisions of the government of the city." The receipts from local governments reported under the last-named head are from the following sources: Chicago, Ill., park districts $3,353,184, sanitary district $2,098,160, and Cook county $3,284,160; Philadelphia, Pa., poor districts; Pittsburg, Pa., Allegheny county; Cleveland, Ohio, Cuyahoga county; Buffalo, N. Y., Erie county; Detroit, Mich., Wayne county; Cincinnati, Ohio, Hamilton county; Milwaukee, Wis., Milwaukee county; Denver, Colo., Denver county; Portland, Oreg., Port of Portland; Oakland, Cal., sanitary districts; Peoria and Springfield, Ill., pleasure, driveway, and park districts; Tacoma, Wash., Metropolitan Park Board; and Portland, Me., Portland Bridge district.

Column 6 shows the amount of general revenue receipts that were later refunded because erroneously collected. For two cities, however, there are included with these receipts service transfer receipts by one division of the government of the city from another, the amounts of these transfers being shown separately in footnotes.

Classified by source. The proportion of revenue derived from the different sources varies widely. In most cities the greater part of the annual revenue is derived from general property taxes. Business licenses constitute a much larger proportion of the total revenue of southern cities than of the northern. Table XIII shows the per cent distribution of receipts from general revenues for the cities reported in 5 Northern states, 4 Southern states, and 1 Western state, as follows:

TABLE XIII. Per cent distribution of receipts from general revenues in cities of specified states: 1907.

To illustrate the variation in the per cent distribution of receipts from these sources as shown by the individual cities of the ten states given in Table XIII,

the highest and lowest percentages for the cities of those states are presented in Table XIV, as follows:

General property taxes.-Receipts from general property taxes are reported in the table under the two heads "original levies" and "penalties and collectors' fees." Receipts from specific levies of general property taxes are not presented separately in this table, but the levies therefor are shown in the discussion of Table 29. In the column "penalties and collectors' fees" are included receipts from so-called penalties and from interest in excess of the legal rate on deferred taxes.

Special property and business taxes.-Under this designation the Bureau of the Census includes all revenue receipts from taxes other than general property and poll taxes. Special property taxes are those for which the method of assessing the property or collecting the tax differs from the methods employed in the taxation of the property of the average individual. Business taxes are taxes upon business transactions, and not upon the property employed in the business; they include taxes on the gross earnings of public service corporations when the tax levies are fixed and imposed by general statute. Similar payments made in accordance with the terms of the franchise of the corporation (thus representing a contractual relation between the parties) are tabulated in Table 15 as receipts from public service privileges.

The cities of New York collected the largest proportion of the special property and business taxes, and the cities of Massachusetts the next largest proportion. The following is a brief statement of the character of the tax receipts reported under this head; the states are arranged alphabetically, and the cities in each state are in the descending order of their size.

Connecticut.-In Connecticut cities, special property and business taxes are represented by the receipts from the tax known as the "corporation and bank stock tax." This is a tax of 1 per cent levied

on the market value of the stock of every bank, trust, insurance, investment, and bridge company whose stock is not exempt by law. The amount of taxes paid by the corporation on its real estate in Connecticut is deducted from the computed 1 per cent tax, and the remainder is collected from the corporation by the state treasurer and is distributed among the taxing districts according to the amount of stock held in each. The amounts received in the cities reported were as follows: New Haven, $44,088; Hartford, $297,732; Bridgeport, $19,060; Waterbury, $7,221; New Britain, $8,125.

Delaware.-Wilmington levies a special property tax of $1 on each horse and each mule in the city, the amount received being $933. District of Columbia.—In the city of Washington there was collected as business taxes the sum of $577,266, as follows: From 4 per cent taxes on gross earnings of street railway companies, $156,363; of savings banks, $5,041; of telephone companies, $39,809; and of electric light companies, $43,030; from a 5 per cent tax on gross earnings of gas companies, $94,150; from a 2 per cent tax on gross earnings of building and loan associations, $16,201, from a 6 per cent tax on gross earnings of national banks, $96,920, on the gross earnings of trust companies, $65, 160, and from a 14 per cent tax on net premiums of life insurance companies, $60,592.

Georgia.-Business taxes on net premiums of insurance companies were received by Georgia cities as follows: Atlanta, $26,952 at 1 per cent, except for health insurance, which was at the rate of one-fourth of 1 per cent, Augusta, $9,720 at 11 per cent; Macon, $5,170 at 11 per cent.

Illinois. A 2 per cent tax on gross premium receipts of foreign insurance companies yielded $197,562 in Chicago, $7,278 in Peoria, $3,978 in East St. Louis, $2,529 in Springfield, $2,833 in Rockford, and $1,920 in Joliet.

Kansas. This state collects a 2 per cent tax on the premium receipts of foreign insurance companies. Three per cent of the amount collected is retained by the state, the remainder being paid over to the cities in which collected. From this source Kansas City received $5,930, Topeka, $2,801; and Wichita, $2,631.

Maine.-Portland received through the state $58,479 as its share of the state excise tax upon the gross receipts of railroad, telegraph, and telephone companies. This is a graduated tax, ranging for railroads from one-half to 4 per cent and for telegraph and telephone companies from 14 to 4 per cent; of this tax the city receives an amount equal to 1 per cent of the assessed valuation of the stock of such corporations owned by its residents.