New-York tribune., 1908-03-04
WILL HELP REALTY.
S4XE BILL NOT "UNFfIR. y
Lascson Purdy Analyses Objections
to the Measure.

Lawson Purdy, president of the Board OF Tax
Commissioners of this city. replied last night to
the. statements recently made by the opponents OF
| the SAKE bill In address Taxation before
| the real estate school OF the West Side Young
| Mems Christian Association at No. 800 West 57th
street. The Sake bill provides that every deed or
conveyance of title to real estate recorded in the
| counties of New York. Kings Queens and Rich
nlond and after July shall contain affidavit
by the srantor setting forth the true money consd-
Grafton therefor and the estimat.1 1 value of any
| property given in exchange. II lieu OF such an
affidavit in the conveyance an affidavit of sub
stantially the form shall be filed in the Office
| OF the Department of Taxes and Assessments, and
that affidavit shall be for the of that depart
ment only and shall not be. open the public for
inspection The principal argument so far ad-
vaneed by those persons who have decided to try
10 prevent the bill becoming law is that it ur-
far to realty interests everybody could quickly
KNOW the sum at which any particular parcel Of
real estate was sold. and such knowledge might
Ietdrd realty progress Some objectors to the meas
ure have dropped the word might and are ex-
claiming that the bill If it becomes law will seri-
opsiY affect trading In property by essening the
number of brokerage sales
AS the real estate school includes many persons
VINO are successful brokers, a large number Of
persons present at the session of the school last
hlght learned some days ago about the aim of the
SAKE bill, which Is, briefly expressed, to provide
the Department of Taxes and Assessments with
more evidence about values. that assessments
can be more equitably determined. And the
Jorty OF them have apparently Joined the ranks Of
the opponents of the measure. At time it
seemed as If the address would resolve Itself into
lengthy debate, not only to the effect the
SAKE bill will have real estate. but also to
the merits of the lien bill which Mr.. Purdy
instrumental In having framed and introduced in
the Legislature and the methods used by the de-
partment of which the speaker is head. in arriv-
ing at assessments 1t is the custom at the school
for members of the class TO ask the speaker ques-
tions relevant to the subject of the address. and
certain members eagerly aVailed themselves of that
privilege last night One quesioner, in his effort
to win Mr.. Purdy to his way of seeing an alleged
flaw in the Sake bill, drew a mental picture of
Queens builder who had erected too many houses
and, being unable market quickly his sold
of the houses at sacrifice 1t a picture
that would have made young lawyer weep.
Now. under the SAKE bill, the whole realty world
would know that the builder In such dilemma had
only been able to get figure much less than what
the property cost him. and under such crcum-
stances he assuredy would have to sacrifice the
entire parcel" said the questioner.
why should he?' exclaimed Mr.. Purdy.
Because he sacrificed one house to hold more
firmly the other houses" said the questoner-
Everybody wouldn't know he had sold the house
at less than it cost him." said Mr.. Purdy. He
would tell the Tax Department what he got for
the house, and that fact would be held sacred"
Quickly the cuestioner retorted: THE fact.
however. would likely leak from the Tax Depart
Now. wouldn't it?'
M Purdy answered him with the statement that
the employees OF the Tax Department a whole
men of sterling character and he certain
that there had been few leaks" in the depart
rlent
\ leading Fifth ave. broker teM Mr.. Purdy he
thought the bill would hurt small operators. and
therefore be a blow to the brokerage bust
ness, such operators usually most active. To
this broker Mp. Purdy said: In rising market
buyers more numerous than in other times. 1t
DC in e,.cI
widespread and buyers are ready to pay higher
prices than what they could have got the same
properties for in dull times in declining mar
ket. For it is in q brisk market that they, too.
can sell at a greater than they paid Then
Mr. Purdy expressed opinion about certain oper-
ators- The big operator who buys a large tract
Of land and holds it until conditions are most fs-
vorabe for marketing it and at boom prices is truly
a retarder of realty progress, because he holds
vacant lands for a long time until something
happens by which he can make huge profits
from the sale of the land and the
persons to whom he sells are usually COMPELLED to
hold some years before they, too, can get a little
profit from the sale of their lots plots. Now
operator or investor who discovers that the earn
ing power oil district is not appreciated and goes
there and takes advantage of that fact and
awakens realty interest in the section helps realty
progress
Mr.. Purdy was interrupted by member of the
class, who wanted TO know if it was true that as
SCISSORS had assessed every vacant pIot in The
Bronx at the it similar parcels had been
sold for i'll the Vesey street saIesrooms. He g-
piled that such idea ridiculous, Another
member of the class said he thought the lien bill
could be improved by providing that if such \ lien
proposed placed property which the
taxes had not been paid 1t would not terminate
restrictions property and thus protect the char
aCter of various sections. Mr. Purdy said that as
the city must be protected fully. the suggestion
could be acted He felt positive however.
that wise restrictions property would be
lifted by the collector OF arrears The restrictions
would likely be held intact when the lien was
placed.
The lien bill provides new means for the city
collecting back taxes. Il person is in for
three years the sum Of arrearage is to he sold as
first lien on the property. The buyer of the lien
is be the person who agrees to take II at the
lowest rate interest. For instance. If the
due TO the city taxes is 500 and person says
he will pay the taxes against the property and be
content with per a year that for
three years payable semi annually, and that is the
favorable bid to the owner, that person be-
comes the owner of the lien. At the expiration OF
three more years if tho owner cannot redeem the
lien and has not paid interest on the lien and
taxes, the property will be sold in the
tlon rooms. Mr.. Purdy further said there fifty
one assessment districts in this city, and that
SCISSORS used the unit system Of valuation in plac
ing assessments. He also said his department
was responsible the collection of special
franchise taxes.