Evening star., 1900-10-16
REDUCTION OF INTEREST
BUSINESS MEMS ASSOCIATION con-
FER WITH C0MMIssIONERS.
Rates ON Delinquent Taxpayers De-
on Special Assessments.

The committee on taxation of the Bust
ness Mems Association was given a hearing
today by the District Commissioners upon
the subject of delinquent taxes. the COM
mittee, through its chairman. Mr.. Thomas
G. Hensey, requesting the Commissioners
to ask Congress to reduce the rate OF In
terest which is now imposed upon all de-
linquent taxpayers to such rate as will
be fair and just, and in harmony with the
rate which prevails generally throughout
the country. Those present. in addition to
Mr.. Hensey, were Mr.. Barry Bulkley, Sec
retary of the organization. and Messrs. v.
Baldwin Johnson, E. H. Tucker. i. NJ
Saunders, Mitchell Dyrenforth. Conrad H
Syme Donald Mcpherson and w. ]. Friz-
zeII.
In opening the discussion Mr. Hensey
said that he is aware that there are two
sides Of the question. one from the stand
point Of the taxpayer and the other from
that Of the municipality, and he also ap-
preciates the difficulties which attend the
collection of taxes. He added. however,
that he fails to appreciate the facilition. as
1t Is termed, OF such collection by the Inn
position of a rate Of interest which would. In
private business affairs be nothing less than
usurious. He referred to the fact that
some years ago delinquent general taxpay-
ers were required to pay a penalty Of "a
per cent per annum, remarking that while
II II
fully twice high rate as should in all
fairness and justice be imposed.
Reduction of Rates.
The Business Mems Association. stated
Mr.. Hensey, wish the Commissioners to
ask Congress to reduce the prevailing rate
of interest on delinquent taxes here to
per cent per annum, and in making such a
request he explained, the association was
only asking for a rate which prevails in
most other jurisdictions. He expressed the
conviction that since Congress reduced the
penalty from "a to II per cent per annum
better results in the collection Of taxes
have been obtained, and he is as firmly
vinced that reduction by one-half Of the
prevailing rate will obtain still better re-
suits. Not per cent of delinquent tax
payers, he asserted, are delinquent because
of desire purpose to use the money in
speculation. Most of them, he feels GER
tain. people unable to pay their taxes,
and the imposition upon such people makes
it all the harder for them to pay them. He
referred to the penalties imposed for Spe
cial assessments, some of them being as
high as 10 per cent. whereas the average
business man is satisfied to secure per
cent interest on his investments.
Mr.. HenSey also referred to what he as
serted is an excessive charge for advertis-
ing delinquent taxes, and while he desires
that the District receive in return all it has
expended for such a purpose. he urged the
Commissioners to hereafter charge only the
actual cost of such advertising. In closing,
Mr.. Hensey invited the attention of the
Commissioners to the following recon-
mendation, made by the assessor of the
District. Mr.. II. II. Darneile, in his last an
uual report:
I'm the course of a year a great many
cases presented to this office for the
mission of penalties and interest, where the
equities are so strong as to warrant relief.
Some of these cases are occasioned by the
lack of education on the part Of poor. ig-
norant persons. and are really pitiable. but
from the lack Of authority at law to adjust
them have to be acted upon adversely.
Il would suggest that some provision of
law. be enacted vestng the Commissioners
with power to remit penalties and interest
and even cancel taxes where the equities
are strong enough to warrant 1t. and thus
save the property owner the expense ~
court proceeding"
Mr.. Saunders Views.
Mr. L. NJ. Saunders also addressed the
Commissioners. referring more particularly
to penalties in the matter of special assess
Eents. In these cases. he stated. the per-
sons assessed are permitted certain time in
which to pay the assessment without inter-
est. and then one, two, three and even four
years in some instances in which to pay
installments of it. Yet, he pointed out. al
though the law grants them the privilege
of paying the installmentS in from one to
four years, interest is charged such
balances at from to 10 per cent per
mum, rates not only i'll excess OF the lawful
rate of interest prevailing, except by spe-
ciai contract, in business matters. but also
rates which, he declared amount to coer-
cion punishment. Why this Is DONE Mr..
Saunders remarked, no one has yet satis-
fac.orily explained to him. The average
citizen, he was satisfied, always pays his
taxes when able to do SO, and IL he does
not, then it Is simply because he has not
the money at hand. Therefore the impos1-
fO
nothing less than a hardship.
Mr. w. j. FrizZell spoke in a similar
strain. remark.ng that instead of imposing
penalties upon people unable to pay their
taxes there should be a reduction or rebate
allowed all those who pay their taxes
promptly. In that way. he thinks mucn
better results would be obtained by the
District. He also advocated only such
charge for advertising would amount to
the actual cost thereof.
Objects to Penalties.
Mr. Donald Mcpherson objected to the
penalties imposed upon delinquent taxpay-
ers as being against civilized methods and
as being brutal. He also objected to the
invitation which is extended to outsiders to
come here and buy the property of the un-
fortunate citizens at the annual tax sale by
granting such purchasers an interest of Is
per cent per annum on their purchases.
Mr.. Conrad Syme remarked that 1t Is the
poor people who suffer the most because of
the penalties imposed. and he asserted that
the District Is at little. II any. real expense
in the collection of taxes, and that it is at
all times fully secured. The penalty of 1
per cent per month does not, in his opinion,
compel the payment Of taxes, and If it
does not, then it Is his belief that only q
rate of interest not in excess of that al
lowed in business affairs should be i'm
posed, per cent per annum.
The Commissioners stated upon the con-
clusion of the hearing that they will give
very careful consideration to the subject
and trust that whatever action they decide
upon will be satisfactory not only to the
Business Mems Association, but also to the
people of the whole District