New-York tribune., 1908-03-03
TO OPPOSE SAKE BILL.
"IT Is UNFAIR" THE CRY.
SO Allied Real Estate Interests Is
against the Measure.

The directors of the Allied Real Estate Inter-
ests of this state have unanimously voted to
oppose the SAKE bill requiring the consideration
of real estate transfers to be stated. This bill
provides that every deed or conveyance re-
corded in the counties of New York. Kings,
Queens and Richmond on and after July i, 1908,
shall contain an affidavit by the grantor set
ting forth the true money consideration therefor
and the estimated value of any property given
in exchange" There is a further provision
that in lieu of such an affidavit in the convey
ance affidavit of substantially the same form
shall be filed in the office of the Department of
Taxes and Assessments, and such affidavit shall
be for the of the Department of Taxes and
Assessments only and shall not be open to pub
lie inspection" penalty not exceeding 500
is imposed for failure TO observe the provisions
of this law.
The purpose of this bill is to afford tax
SCISSORS basis for a proper assessment of real
estate in this city. The Allied Real Estate In
terests favors any method which will result in
proper assessment of real property, particularly
in view of the fact that assessments in some
parts of the city are altogether low at pres
ent. An increase in real estate assessments
will go far toward giving New York the addi-
tional debt margin which is necessary for the
construction CT subways.
As to it's reason for opposing the SAKE bill the
association says:
There three objections to the SAKE bill which
may be mentioned "a 1t is bad in principle; ~ If
real estate business in his cfty and 90 it cannot
accomplish the object for which it has been pre-
pared.
% If the consideration of real estate transfers
pIc OF 9e person }e m or b
diE,GI9sed and not only should consumers be COM
for clothes. household necessaries and the like but
the dealer who sold them such articles should be
disclose yyba no Daid for 10
The logical result of such system of disclosure
TO Investigate the profits q ali business carried
on, in the community; The association does not
want to stand for any such principle as that
q II the law could be enforced the assessed
value Of real estate would suffer a decrease In
stead Of an increase, for with public or semi
would languish, and with diminished activity values
80 The consideration of real estate transfer as
required by this bill TO be stated is not the nroper
This may seem paradoxicaI. but a consideration
of the following statement of b; AymaE Sands.
tate Record and Guide" will convince the fair
minded that such is the fact
The insertion in the deeds Of the actual
consideraton paid in each case will often be mis-
taug di ana ] "9[h an 1n5usIge 10 re , oW.tt oi no. %
Tic basis of such sales. A number of classes Of
sideratons which would be expressed in the deeds
under this law do not represent the true value OF
the property. will. for convenience, divide these
''Ffrst-Cases where builder assemblies a par
Gel of lots or several buildings for the purpose
of large Improvement; the purchaser in such
will buy several of the lots houses at
low reasonable figure. and then to complete his
pot he will buy the remaining piece from re-
luctant vender at an excessive price; The con
sideraton expressed in the last deed might be
construed by the tax assessors the controlling
consideration. and all values of similar property
in that locality might be assessed on that basis,
which would be unreasonaby high.
''Second-The plaintiffs at foreclosure sales pur-
chase property at much below its actual value; the
public, knowing from the advertised notice Of caIe
that the property is encumbered up to or above
real value. and that the plaintiffs will protect
their interests up to the amount due, do not en-
ter the bidding I have in mind a case where he
property in question sold year ago for $22U0
and recently bid in by the plaintiff IN fore
closure for $500 the amount due being about
Sl4,00O There competition at that sale. and
il s. 600 had been bid by the plaintiff for the prop
erty it would probably have been knocked down
to him at that figure. .
''rl Ird-TradeS exchanges. In these cases both
parties likely TO have enhanced ideas of the
values their respective properties and the deeds
following such contracts of exchange contain con-
siderations in excess of the real value
''Fourth-PurChases made for special reasons by
corporations individuals who require special
sites special plots, paying for such reasons ex-
cessive considerations. We may also place in the
class purchases by persons who are ignorant
C-i iOdi as 10 q