New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-12-24
MUNICIPAL TAX BONDS.
THROUGH TRUST COMPANIES TAX GER
TIFICATEs ARE BEING MADE AVAIL
ABLE FOR BOND ISSUES.
THE CURIOUS TAX LAWS IN THE DIFFERENT
srArEs-rHE SYNTHETIC FUNCTION OF
CORPORATE TRUSTEES IN GREAT

STATES-TEE S1NIHEllN f1+>N4lDN VI
CORPORATE TRUSTEES IN GREAT
ING NEGOTIABLE SECURITIES.
Tn. usefulness Of Trust Companies in giving Ger
tanty and continuity 10 the conduct OF business IS
daily receiving fresh illustration. with the priceless
advantage OF precision with regard 70 matters ol
record There are many new lines OF business
being prohtably conducted upon large sca'''
which would never be conducted at all were II no.
,o- The ,ssis,arce afforded by responsible Trust
Connantes The certificate Of the Trust COMPANY
uh.ra the securities involved are understood ana
their value known. bringing into focus nrS' an'
LAST The results OF much we-calcusted enort N
the field of business and finance
In The successive evolution of what may he called
Trust Company securities. the Municipal Tax Bona
,s the latest and in a sense the most Interesting
There is nothing essentially new in the purchase
and resale Of Tax Certificates. which has been
hitherto done locally by individuals the trust
C-ounanv here again steps IN and virtually creates
:, sound continuous security out OF innumerapie
and separate co-efflcents II value.
The atoms. 50 TO speak. ere everywhere. ou' inc
,ornor,+a whole is in the Trust Company. where
,ba investor can get at il and the financial woro
racoqn,za and deal in H. The whole question OF
Tax Titles Ia an interesting one. ootn from so'.o
logical and financial point Of view The laws OF 'he
various States regulating the collection OF laAeS'
imposing penalties and providing for equity Oh 'e
iemption. although Olll"llHS dNSV'"'"H W.
conditions have one end In view; The payment
cover or later by the fee holder 70 the implacahe
rax Collscto- Indeed this principle has tho sane
tion OF universal law and has passed into
nroverb As the saying goes, Nothing Is certain
sxcent Death and Taxes" An analysis OF the iacts
- mis- country certainly vlndcates the provorb.
The average rate Of taxation in CITES or
,bs United States 4. between Dr. and 81 OF tho
assessed valuation which is VIGOROUSLY lower than
~. -rue valuation Now then. as Tax CertlhcateS
are frst lien on Real Estate. even when SUBJECT
N Mortgage or Judgment and in case OF H'esa'
issue become In many States County warrant II
is undoubtedly the most fundamental security Know"
% finance Tax Certificate although IN every way
rorA desirable is virtually Mortgage on Real rs
,a.A .or 1-50 Of its value On basis OF 5Te OF the
vain. ~ nropertv the rate OF interest or BOND ana
Mortgage in New York City rules at 47e per an
nun and in other Cities throughout the Union
the rate is not so very much higher Ano yst III
the State Of Michigan the rate OF interest o" i
-ar,,eca,e. based upon 80 the value OF City
nronertv Is SCI for the first year and ioTs atter
me first wear which is usury with vengeance
How Is the paradox 10 be explained 1t cannot
he said that all fee-holders pay their IaNes
nromptly on valuable property. even In the large
C,es There Is that inevitable element OF chreIcss-
mass p-ocrastination and implied borrowing from
the Tax collecting authorities. which creates the
cron ~ Tax Certificates all over the land and opens
IN under proper conditions. field OF business
hitherto unsuspected by the careful and discrim-
,na,,nr investor The eubjoined table OF the laws
~ the variou. States. fixing the rate OF interest
and penalty accruing 10 Tax Certncates, Is IN
struc.ive when the absolute safety OF the invest
rnent s considered
THE TAX LAWS OF VARIOUS STATES.