.
Georgists and Chicago's Growth,
1890-1930 |
| [Reprinted from GroundSwell,
May-June, 2006] |
The U.S. Census of Population tells us that a few cities grew much
faster than others from 1890-1930, a time of general urbanization. Most
of these cities had Georgist-oriented administrations during their
periods of fastest growth. Some of these are New York City (Governor Al
Smith and Assessment Commissioner Lawson Purdy), Cleveland (Mayors Tom
Johnson and Newton Baker), Detroit (Mayor and soon Governor Hazen
Pingree, and later Mayor James Couzens), Toledo (Mayors Samuel Jones and
Brand Whitlock), Milwaukee (Victor Berger and Mayor Daniel Hoan),
Vancouver (8-time Mayor Louis Denison "Single-tax" Taylor),
San Francisco (Mayor Edward Robeson Taylor), Houston (Assessor J.J.
Pastoriza), San Diego (Assessor Harris Moody), Edmonton, many smaller
cities, and doubtless other big cities yet to be researched, that chose
to tax buildings less and land more. It was the Golden Age of American
cities when they grew like fury, and also with grace: "The City
Beautiful" was the motif, expressed in parks and expositions like
Chicago's Columbian Exposition, 1892, and San Francisco's Panama-Pacific
Exposition, 1915.
Chicago grew by 54%, 1890-1900. This is inflated by annexations (Hoyt,
p. 153), but is still a notable spurt, even in that decade of urban
growth elsewhere. Chicago did not just spread out, it pioneered the
skyscraper, and centralized its transit system as few other cities ever
have. Surrounded by boundless prairies, it became a model of the
centralized city, with the highest land values in the USA in its central
"Loop".
From 1900-30 it continued to grow at higher percentage rates than most
other cities, and much higher absolute rates, reinforcing its status as
America's second largest city.
Owing to its perpetual drainage problem, Chicago faced higher property
tax rates than other cities (Ginger, p.24). The structure of the
property tax, important everywhere, was therefore even more so in
Chicago. High tax rates on buildings could have stopped its growth and
renewal, but many signs point to a single-tax trend in Chicago during
this period.
Who was Chicago's Tom Johnson? It was not one person, but a large and
shifting group. Chicago lawyer John Peter Altgeld, humanitarian and
reformer, was Governor of Illinois, 1892-96. His administration
contained several single-taxers, including young Brand Whitlock, future
Mayor of Toledo, whom Altgeld inspired (Bremner, pp.57-58). Altgeld
directly corresponded and worked with Henry George, and, according to
Whitlock, "understood" George's ideas like few others (Barker,
pp. 594,607,609).
In Chicago, unlike Detroit, rails paid property taxes. A tribute came
from the rival State of Michigan. "... -- if there could be an
illustration stronger than any other of prosperity built upon proper
rules ~ that example is Chicago." (Dickinson, 1891).
In 1892 Chicago won in Illinois Central R.R. v. Illinois (146 U.S.
387), still considered a leading and watershed decision, invoking the "public
trust doctrine" to revoke the corporation's claim to lands that now
comprise Chicago's lake front park system. One battler for this cause
was lawyer Alexander Stuart Bradley, later the (reluctant) father-in-law
of Thorstein Veblen. This legal victory was nicely synchronized with its
Columbian Exposition, an impressive display of civic spirit, new
architecture, and a springboard for the career of Daniel Burnham,
Chicago planner.
It was under Governor Altgeld that the Illinois Bureau of Labor
Statistics, under George Schilling, published its famous 8th Biennial
Report, 1894, including comprehensive Lorenz-Curve data on the
concentration of landownership in what is now The Loop of Chicago.
Schilling engaged Louis F. Post, leading Chicago Georgist and
editor/publisher of The Public, to research the Report (Barnard, p.382).
There is no comparable study, to my knowledge, of another American city.
Such Georgism in Springfield had its effect locally in Chicago.
Schilling was a Chicago labor leader who helped elect Altgeld. The
current cohort of economists at the University of Chicago take on faith
that unions obstruct economic growth, but one could not illustrate it
from the City of Chicago, a major center of union activity during its
period of rapid growth. These unions supported Altgeld, and Georgist
ideas.
Rather, Chicago was a national center of anti-monopoly and single-tax
thought and activity in this age of Mayor Edward F. Dunne, John Peter
Altgeld, Ida Tarbell (History of Standard Oil), Henry Demarest Lloyd
(Wealth against Commonwealth), Clarence Darrow (Georgist City
Councilman, noted defense attorney and humanitarian), Edgar Lee Masters
(Altgeld's law partner and author of Spoon River Anthology), Jane Addams
(founder and head of Hull House, a leading settlement house, later a
Nobel Laureate), Julia Lathrop (founder of the Children's Bureau, U.S.
Department of Labor, where she, a Taft appointee, soon collaborated with
Louis F. Post, Ass't. Sec. of Labor under Wilson), Louis Sullivan and
Frank Lloyd Wright (pioneer creative architects), Daniel Bum-ham
(outstanding city and park planner), Alexander Stuart Bradley, Kenesaw
Mountain Landis (future baseball commissioner who cleaned up the sport
after the "Black Sox" scandal), Gutzon Bor-glum (sculptor of
J.P. Altgeld in Chicago and Mt. Rushmore in SD), Eugene Field (lawyer
and poet), John Dewey (educational philosopher), Margaret Haley (union
leader and gadfly of assessments), Thorstein Veblen (pioneer critic of
the mores of greed), Edward Bemis (expert on utility and transit rates,
representing consumers), Louis F. Post and his Georgist journal (The
Public), Gene Debs (labor leader and Socialist candidate for President),
Emil Jorgensen (prolix but effective exposer of R.T. Ely), Warren Worth
Bailey (later Georgist editor in Johnstown, PA, and then Congressman who
led in framing the pioneering income tax act of 1916), Vachel Lindsay
(poet who idolized Altgeld), Carl Sandburg (liberal poet), Florence
Kelley (outstanding social worker), George C. Olcott (publisher of
annual land values blue book), et al. Two or more generations of
Midwesterners fleeing from small town Babbittry flocked to Chicago.
Chicago in the 1890s pioneered the skyscraper. Such substitution of
capital for land suggests a de facto policy of targeting property tax
assessments more on land, less on buildings. Chicago became the nation's
school of architects. Many, like Louis Sullivan and Frank Lloyd Wright,
favored downtaxing buildings, if only from self-interest. At the same
time, Chicago did not develop its highly centralized mass transit system
without taxing real estate to permit of low fares, as did Tom Johnson in
Cleveland. Indeed, Mayor Edward F. Dunne sought guidance specifically
from Tom Johnson, and from his Assessor, W.A. Somers. A city that taxes
real estate without overtaxing buildings must be taxing land values;
Somers specialized in that aspect of assessing.
Chicago's consciousness of land values is shown by its being the only
city to have anything like George C. Olcott's annual Blue Book of Land
Values. Olcott used Somers' methods to appraise a whole city, and later
a whole county, every year, using only a very small staff (including
modest Robert King, long-time supporter of the Henry George School in
Chicago). Olcott also supported the Chicago Single Tax Club, and wrote "Chicago's
Amazing Growth" for Land and Freedom, an activist Georgist journal
based in New York. Chicago inspired and supplied data for Homer Hoyt's
classic One Hundred Years of Land Values in Chicago - many of Hoyt's
values being credited to Olcott's annual Blue Book. Chicagoan Frederick
M. Babcock's classic Valuation of Real Estate shows Somers' influence,
separating land from building Values.
Mayor Dunne brought in Tom Johnson's Cleveland assessor, W.A. Somers,
to coach Chicago assessors on using the important "building-residual"
method of separating the value of land and buildings. Somers also worked
with Lawson Purdy to apply this method in New York.
What Lawson Purdy was for New York, Margaret Haley was for Chicago.
Haley was not an assessor. She was the head of The Chicago Teachers'
Federation, an independent union. She was a constant and effective
gadfly and battler for honest assessments. She correctly saw them as a
more attainable means of raising revenues than trying to adjust the
nominal tax rates. An avowed Georgist, she also saw them as a means of
shifting the burden off buildings onto land. The baleful influence of
Richard T. Ely came to bear in 1927 when his employee, Herbert D.
Simpson, published Tax Racket and Reform in Chicago, denying that Loop
lands were underassessed. Meantime, Margaret Haley's prompting had
achieved good results raising land assessments, and lease rates on grant
lands owned by the Chicago School Board in downtown Chicago.
John Peter Altgeld lost as Governor after pardoning three of the
Haymarket Riot "anarchists" for having been unfairly tried.
Unbowed by the hysteria, he returned to Chicago after 1896 and became
active in both national and Chicago city politics. The 1896 Chicago
Platform of the national Democratic Party was an Altgeld platform with
strong populist and labor elements, repudiating conservative Grover
Cleveland, fusing the silver issue with social issues. Ray Ginger
believes Altgeld might have been nominated for President, except for his
foreign birth. The power elite saw Bryan as a harmless child, and
Altgeld as the brains. Altgeld also supported Henry George for Mayor of
New York, 1897 (Barnard, pp. 418-20).
Altgeld died in 1902; Lloyd in 1903. Mayor Edward F. Dunne, an old
Altgeld ally, took over the leadership in Chicago. He was Mayor,
1905-07, and later Governor of Illinois. "... as Mayor he
functioned as the disciple of Cleveland's Mayor Tom L. Johnson, who had
earlier counted Mayor Hazen Pingree of Detroit as his mentor ... "
(Morton, p. ix). Dunne appointed Louis F. Post to the School Board, and
supported Post above all others. Post's news organ, The Public, was
subsidized in turn by Georgist angels Tom Johnson, John Moody, and
Joseph Fels. Besides Post, Dunne's allies included Clarence Darrow, Jane
Addams, Judge Murray Tuley, Raymond Robins, many union leaders, liberal
judges, some middle-class activists, and others.
"... they were very conscious of being part of a national
movement, and they were in close contact with Cleveland's Mayor Tom L.
Johnson, Toledo's Mayor Samuel M. Jones, and others." (Morton, p.8)
It has been alleged that Lloyd clashed with Henry George as being too
pushy. Perhaps, but Eugene Staley calls Lloyd "the prominent
single-taxer" (Staley, p. 118). Ray Ginger refers to Lloyd as a "single-taxer",
and when Lloyd died in 1903, four Georgists shared the memorial service:
Clarence Darrow, Edward Dunne, Cleveland Mayor Tom Johnson, and Toledo
Mayor Samuel Jones (Morton, pi2).
Other Dunne supporters in 1905 included Wm. Jennings Bryan, Wm.
Randolph Hearst, and Joseph Medill Patterson. Each did so for his own
reasons: self-promotion for Hearst, politics for Bryan, family rebellion
for Patterson. Dunne was, at any rate, a national figure in his times.
Later Mayor William Dever, 1923-27, was Dunne's protege. His biographer
touts him as "the mayor who cleaned up Chicago". Even the
corrupt William Thornpson predecessor, nemesis, and successor, was
growth-oriented and "open to suggestion." Dunne, however,
reports that assessments became corrupt after 1927. This is about when
Ely's man Simpson published his "tax racket" whitewash, and
Chicago's growth rate finally fell behind New York's.
Dunne was active through 40 years. Before being Mayor, 1905-07, he was
an elected Circuit Judge of Cook County since 1892. After being Mayor he
became Governor, 1913-17. He was still active in national Democratic
politics at the Convention of 1932. Then, however, the single-tax
linkage failed to join him in common cause with Al Smith and Newton
Baker, both considered presidential timber. Unlike Altgeld in 1896 and
1900 they did not cross the bridge from local to national unity.
Georgism has been the poorer for it ever since.
There is no one individual or organization that symbolizes single-tax
in Chicago. There was rather a large group of like-minded people,
obstreperously individualistic, loosely linked, many of them famous in
other ways, pushing for cheaper mass transit and better schools and
social work and higher taxes on land over a long period. The evidence of
population growth tells us they got results, 1890-1930. After that the
Kelly-Nash machine took power, and Chicago stopped growing. Yes, it was
the depression and most cities stopped growing - except New York City
and California cities, where Georgists remained active for another 20
years.
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