The New York herald., 1876-03-25

CoMPTRoLLERs OFFICE
NEW YORK, March 23, 1915
To THE HONORABLE, THE LEGISLATURE STATE
To meet municipal obligations for current expen-
dltures with Promptncss money 10 hand is necessary
These expenditures are contracted with reference
system of payment which is dependent upon the col
lection OF the taxes. II the taxes not promptly
paid the city must borrow money and pay interest for
IT, This outlay for interest must be either by
Imposing like amount on delinquent taxpayers by
charging It upon the whole body of taxpayers alike
those that prompt and those that datory
is the highest form OF debt. Ii is due like any
pthcr debt a specified time Those who pay at that
lime exempt from either interest penalty
Those who do not pay as promptly ought IN some
iorm to make up the amount Of interest which
has been incurred on account OF their delinquency.
II the interest which is paid by the city is not imposed
upon delinquents II must be upon the whole aXpaying
body, and II is very unusual economy that tells one
who pays his tax debt promptly that he IS also to DO
charged with the cost OF the delinquency OF those who
do II must come TO this II the pcaalty OF deln-
quency Is not borne by the delinquent himself Ihere
is mysterious place 10 get money rom to meet the
outlay of interest by the city Is II Just to charge
upon those who dilgcnt and prompt the cost in
Cured for those who thrtless and datoryy II is
universal practice cities aud other municipalities
10 offer Inducements the form of deduction of IN
OF tho bill Tor prompt payment Of
lakes. Those who not induced to pay by such
allowance must be compelled do so by the imposi-
ton OF penalty il not paid within the period fixed by
Law.
assessments in vogue in the city OF New York are.
as to taxes those provided by laws of lS43 and tho
amendments thereto and, as TO assessments those
and the revised ordinances 1852 and respectively
follows
TAXES
Every person who pays his before tho 1st day
OF November OF the ycar in which they due is
allowed deduction at the rate OF per cent per
annum between the day of such payment and the LIST
day OF the following December. Taxes paid during
The month of November received at their face,
Interest being allowed charged. Those remaining
unpaid on December are charged with penalty of
per cent and those in the condition on De-
cember Is with an additional penalty of one per cent
interest charged at the rate OF twelve per cent per
hnnum from the date at which they become due; and
finally, If unpaid the end of three years. the law
authorizes the sale OF the property
ASSESSMENTS.
All persons liable TO pay assessments allowed
sixty days from tho time they reach the collectors
hands in which to pay without interest Ii not paid
within that time, whole year from the daio OF con-
hrmaton is allowed with interest at the rate OF seven
per cent per annum only. II alter all this indulgence
the assessment remains unpaid, the law authorizes as
in the Of taxes increase OF the of interest
90 twelve per cent from the date the assessment
due and sale of the property after the lapse OF three
years.
1t will be from the above protracted delay in
payment involves Increase OF the OF interest,
and that the rates of very moderate and
gradual 1t is apparent that any remedy which
moves the penalty delay destroys OF the vital
features of the system benefits the datory and puts
= corresponding burden upon the prompt taxpayer.
During the panic OF 1873, when the city had TO pay
millions OF dollars OF It's Obligations the payment Of
hc taxes of one who possessed abundant ready means
delayed solely and avowedly the ground that ho
sould the money greatly increase the profits of
before the penalty could attach This course delayed
the payment of 500 600 until three days
before the date fixed for the penalty Had there boen
no penalty, would not have been paid then.
This shows how impossible 1t would he TO carry tho
finances of the city II the laws now in force TO compel
payments were yemoved IL rs plausible but an er-
supposition that tho increase the rate OF
interest is source Of profit 10 the city
and that IL be dealt with accordingly
On the contrary. 1t Is doubtful whether the
city, the Increased rate OF interest Is ren
bursed Tor its outlay There is a large amount OF
lorc AM pald
to deficiencies created by tho neglect OF those
who taxes and assessments to pay them when due
Out OF this also To the annual expense of NAM
tnining the officers clerks &c OF the bureau devoted
eolcIy TO the conducting OF this business.
The assessment bonds outstanding, which represent
the advances made by the city, and on which II is pay
ing about 81 225 900 annually ms interest," amounted 10
on January l, 1876, s2l, ,s22, 200
Tho purposes TO which this sum has been applied
lollows:-
Advances made works still in prog
rcss and ior which no assessment has
Yet been made....... %lZ 3zl, 2oo 3l
Balance OF advances on works now com
plcied, and for which assessments
have been made, represented by un-
paid assessments. S6S4, S66 GO
Total .s2l OO6, ,lo2 o.
The interest on Inc above which iho city had paid
Tor which II Obligated aud which under present
laws, be paid by the entire body Of taxpayers on
january |, 1876, had reached the sum oi about
t2, 5O0, 900. The amount OF remaining unpaid
january 4, 1875. iOllows;--
On personal estate January L. lS75. $40 Gal 377 2S
On real estate To January |, lS7j..... 5OO2 Cos 80
On real and for the year 1870 o9Zo eVO w
Total S2l 559, ell ~
rhe amount oil real in arrears repre-
senIs substantially the accumuations of the past iivc
years OF the amount OF taxes personal property IN
arrears onchali has accumulated in the same period
Of time owing, among other things, to the defective
mode oi The accrued interest on above to
January /, 1876, is
On personal estate about 49,. BIC, 600 900
On real estate about lOOOOo0 $ll OO0 900
Inc amount OF assessments remaining
unpaid January l, 1876, SS, 740 060 25
About one-hali OF this sum was at that
time drawing interest al seven per cent
The accrued interest to that date was
nearly. 2,OOOOOO OO
A QUESTION or EQUITY.
Large the principal sums appear, the most cur
sorry examination Ui the lacts VIII show that they
form but small percentage OF the entire sums cviel
taxes ami assessments, and any measures that
might be taken to rceve persons who default
could only be the untcnablc ground that the small
delinquent minority have the established require
n,cnts OF Jaw which have been complied with BY tho
largo majority, changed TO their proht, when by neg
ieol they have Incurred their penalties An ilustra.
ton occurred last month large landowner delayed
paym ol his assessments on broadway lots Tor
years, while proceedings were being taken 10 throw
tne entire amount that largely benefited his properly
upon has laxpayiug fellow citizens at mrge lie in-
teudcd escape rs nayment Those procccdlngs hay
ing tailed o thcr object he at last his check Tor
,he AN amount due, sbcu. $1,000 o. which sum about
The pending bulls at Albany OF on some frivolous pre-
text
srorPED PAYMENT or mrs CHECK
before II could be presented, and now apparently
awaiting lcEis action which shall donate
hIm, NJ the expense oi the city, the amount OF tho
penalty, about S., O00 He would Otherwise have 10
pay partial compensation ior the consequences OF
has in,entional ana aggravated dciaulb winch took
place not because ho unable 10 pay but tho
unjust expectation of throwing Tho whole burden upon
Others. Sot only woala & be garingy unJust 70 allow
such persons 10 transfer the Just penay OF their adj
action the Ciiy interests from themselves 10
those who, forming iho great maiorty hive hereto
lore Their obligations ~ iGl 1ut az w"ui aisd be
mantIcsty and grossly incquitabic To enable them
thereby gain advantage the actual cost of their
lots over tho owners Of adjacent property ~ho have
OnS since paid the assessments due ny them with the
penalty attached.
now TRE WOULD LOSE
SLouii any aw be passed removing ,he extra rate
nxeJ by law aii amounts IN arrears NJ the be-
gianng of tbis year would, even on acacnaton that
leaves out the threcourhs OF the amount ol
personal estate as being wholly un-
cOcctabe result direct loss TO The city OF over
81 SOC, 600 have been led 10 make these statements
OF principles and iacis respecting the pay
Of nd tlc