The New York herald., 1879-11-25
taxes on property which is also burdened by
ments levied 10 pay for local improvements"
"Can you explain it!


IL will try. in this way Suppose am the owner
of piece of unimproved property the line of the
sackett street boulevard Improvement. or we will
take a case which actually exists Mr.. William NJ.
Eyarts the United States Secretary state seeking
an Investment for money he had to spare. bouglk
several lots auction on the limo of this improve
ment several years ago. and when. under the inAu-
ence of a deprecated currency property cd to
be Q, grea. value. he & paa we will say $1,000 lot
ment is, say, $500 lot. and this is more than the
property would now sell for. Mr. Evarts regards
his property lost; he has. am assured virtually
Abandoned 1t. OF he has not paid
and does not pay the taxes on it. The city
property and. Of course the taxes are never paid.
nor are they indeed collectabe tor the property is
bankrup-that Is, the and taxes together
come to more than the property would sell for. How
much Of the tax arrearages is represented by of
this kind. which never can be collected eau never
be determined until the city makes resolute effort
to collect both the taxes and due. When
the city determines. by all the power the law
give. how much of ITS debts it collect them and
not before viii And out how much of the city's
outstanding claims must be borne by the city at
large. When this is DONE and not before, Brooklyn
will be able to tell just how she does stand fnan-
cially. part Of the tax in and consider
able portion Of the assessments now outstanding
will have to be aided to the present debt OF the city
and Will have to be paid by the city at large"
THE REMEDIES PROPOSED.
"What remedy do you suggestY
"The old one. sale of property. when possible.
The restoration OF tho former penalties in default OF
unpaid. city must pay the obligations 1t incurs
or the SherH seizes it's property. city must col
iect the claims It has on property owners. or it
"what is the amount Of temporary local improve
ment bonds outstandingY
"Between nine and ten millions of dollars; nearer
ten than nine."
What are the improvements for which these
"Openng. grading and paving streets construct
ting sewers making improvements under the dircc-
ton Of the Legislature. &c. Se These obligations
egactes OF the dush times Of inflated currency
was !: large spscalatiye demand for for unimproved @
Evxpu l.ostx xxl.~
seemed at time to boz With panic
lest he could not put 1t narl.t soon
severed and lighted lons an advance of
any possible necessity for them through an iu-
crease Of population or actual settlement. These
improvements were eagerly solicited. There no
existing necessity for them. The improvements
were mado. Wild speculation in real estate ceased.
The owners OF vacant lots arc not able not
willing to pay for improvements which will be
needed only when the streets are built upon. At
the direct instance Of property owners. specu-
lators and contractors a score or more of costly
local improvements were forced upon Brooklyn by
the Legislature. The city had no option but to
issue its bonds to pay for such improvements and
it has to look to the collection of for
the return Of its money. The speculations these
improvements were intended to forward failed in
most cases and the property liable is worth
the amount OF the with the taxes water
rates. &c, which have since accumulated. The local
improvements. tor the most part, initiated in
the Legislature and were carried out not by the
local authorities but by agents selected by the
SUGGESTIVE ILLUSTRATIONS.
eve will take. Tor instance. the Sackett street bou
levard scheme already referred to- The city has paid
out, presume, million dollars for that improve
ment 1t was ciamored for by the property owners.
who relied to psy for it. 1t was assumed
that it would bring their property into the market
and make it very valuable. With difficulty the
grand scheme devised by the property owners on
Sacket street was kept within the scope on
which 1t was finally carried out. The improvement
was authorized by on act OF the Legislaure The
owners desired that it should be carried out under
the direction Of the Park Commissioners, who were,
at that time, virtually State agents. The bottom
provement completed. The property assessed
for its payment is not able to respond.
upon 0it its bonds aud it Cannot est it Sask
and to add to the trouble, as have said, this class
OF property. which is virtually bankrupt is included
in the tax levy year after year and taxes paid
upon The history OF the Sackett street boulevard s
tho history OF the Firth avenue improvement. the
Third street and Union street improvements and
half dozen others could name, all carried out
under the direction of that devilish Legislative de-
vice known the special commission system.''
HAS any remedy been suggested for this state Of
things?"
the old time penalties aud ascertain just how much
of our outstanding claims we collect. New York
city had, or hass " coutrvlit the same sort Of df
culties. In that city, il mistake not board made
up of its chief officials was created by the Legisla
ture with power to compromise with property
CLAIMS the city held against it. Mayor Howell.
of this city, favors compromise scheme
what may be utermed general princples'-
that is nothing is left to the discretion or
OF her officials IN ctfecting the compromise. Under
Mr.. Howells scheme. piece Of property on which
the liens held by the city found to be in
OF its assessed value would be held to be bankrupt
property. III such cases. and only in such cases.
the owner was given the option of paying the full
assessed value, which s ordinarily much less than
the real value. and in return the city released such
property the liens held upon it. In case the
owner desired to take the option of paying three
fourths of the total lien that option given. A
bill providing for this scheme Of compromise was
before the last Legislature, but as there
politics in it. 1t was found impossible to
much attention tor it. Some such scheme will have
to be resorted to. or course 1t embraces only unm-
proved property. for Iassume there no case where
improved property is not good. as an asset. for
ment Of the full claim can be enforced
and this must be done. continuance Of
the present policy, which leaves the taxpayer tho
option Of paying his taxes or not and in not enforcing
their payment would very soon bankrupt inn
proved property il total collapse Of tho local pub
lie credit did not anticipate the consummation Of
such folly"
BRooKLYN's PROBLEM.
'What il the total debt of the city of Brooklyn?"
"Tho total debt Of this city. including temporary
bonds, tax certificates and everything else, is
s42 257. .oVO Against this we have in our sinking
fuud-our own bonds nainly--S4 7S1, 1913; so that
the net Indebtedness Of the city, according the
last official statement. is $37, ,475.53I. Brooklyn is
which would bItng up the net indebtedness OF the
city to nearly $40 oooUoo. Ia other words il we
not able to collect dollar of what is due the city
would then owe $40. O0J.0c0."
'.Then OF tax certificates and of temporary bonds
there are outstanding about sl4.0oO.oOu. How much
of this amount do you think can be collec;ed?''
This Is not an easy question to answer. Opin-
ious differ about it. and until resolve try
we can collect and what We must compromise the
question cannot be settled. IL can collect two
thirds of the taxes in and one-haf the as
sessnents this would reduce our aggregate debt to
S33OO0 900. aud this brooklyn coula carry provid-
ing new enterprises were undertaken"
"Is your local debt increasingY
rhe local debt proper is not, nor has 1t been for
some years. Our subscription to the East River
Bridge. however. Is made permanent addition To
cur debt Tho local Improvement business has been
stoppod by change In the law which com PEELED
the city to issue its bonds to pay for such improve
ments.'
''Can you tell me. in general terms, what your
local deDt has been contracted for?"
prospect PARK has cost us. in round numbers,
$l0.UU0,UOO; our water works 81 ,OO0,V ,VUO wo
vanced toward the constr bridge
about x7.UOOUOO. These three items make up about
all permanent debt, aud together foot up
S28.Oo00OO. Add the temporary debt. so called. We
have been considering. aud tho 900 OF tax
rearage certificates anu our local indebtedness is
nbou all accounted for"
Arc you Obliged to raise by direct taxes interest
on about Si0.0OO.Up0 of debtY