The Bounty Tax
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THE BOUNTY TAX
Perhaps the most important event in connection with the history of this township was the effort on the part of some of the citizens to cause the burdens of the war for the suppression of the rebellion to be borne by the property owners of the township. This effort was the result of an excessive enrollment made in 1864 by John H. Moulton, enrollment officer, who, it was believed by many, was unnaturalized. Most of the citizens were Germans and on account of the excessive enrollment there was a disproportionate quota reported, only twenty-five or twenty-six persons being drafted. This proved a heavy burden on many who were poor, and in order to relieve such of the drafted ones as desired to be relieved from the necessity of going into the army public meetings were held for the purpose of raising by subscription a fund of twenty-re dollars for every person enrolled, to be used in furnishing substitutes for the conscripts. Difficulty again arose. Some of the healthier citizens failed to subscribe as liberally as others thought they should do and when the danger to the country from the Rebellion was over, quite a number failed to pay their subscriptions. This state of things was very bitter to the poorer citizens who had paid their pro rata shares toward the draft or substitute fund; hence several meetings were held to consider what should be done with those who refused to pay. It was finally decided to procure, possible, the enactment of a law authorizing Niles Township to levy a tax on all its taxable property to repay the money to those who had paid their subscriptions. Henry Harms died about 1913 - was selected as delegate to Springfield to lay the matter before the Legislature. He was successful in his mission. The necessary act was approved February 12, 1867. In accordance with the provisions of an act, a town meeting was held February 27, 1867, at which the electors expressed their opinion for and against the bounty tax of three per cent on all the taxable property of the Town of Niles, to be collected with the taxes for 1866. This step brought on a suit at law, wherein John H. Moulton and others were plaintiffs, and Henry Harms, Supervisor, John Wertes, Collector, and the Town of Niles were defendants, the suit being brought to test the question of the right of the board to levy and collect the tax.
On December 18th, 1867, a tax of three per cent was levied, which was to be collected with the taxes of 1867. It was ordered at this same meeting that persons holding town bounty against the Town of Niles might have endorsed on their orders to the amount forty per cent of the principal thereof, and have the amounts credited on the tax list. The attorney for the Town of Niles in this case was Ira W. Buell. On October 29th, 1868, a due bill in his favor was drawn for $400, to be paid within two years with interest at six per cent paid, and its payment provided for by a tax of $430. The outcome of the entire movement was that the amount required to refund the amounts paid by the subscribers to the draft fund was raised within about fifteen per cent, which deficit would have been collected had not the great fire of 1871 in Chicago destroyed the papers necessary to be used in its collection. Most of the subscribers to the fund received from the town, out of the tax, the amounts they had paid.