New-York tribune., 1908-01-08
Plan TO COLLECT TAXES.
Proposed Bill Makes Liens for Ar-
reors q Good Investment.

President Purdv of the Department of Taxes
and Assessments, assisted by Walter Idndner' So
licitor of the Title Guarantee and Trust Company
has prepared bill aimed to remedy paipaoie oe
fects in the collection OF arrears Of taxes and as
sessments and 1t will be introduced IN Iiie
Legislature. The bill has the backing c1 Mayor
McClellan's advisory commission on taxauoh anu
retrenchment This commission includes: Edgar >.
Iar.v chairman. Lawson Purdy. Edwin r. A.
SeIgman Francis Lynde Stetson Edward M shep-
ard John L. Cadwalader, Frederick A CleVeiaho'
Herman Ridder Morris K. Jesup. joseph Haas'
Edward L. Heydecker, Francis Key fenole'on'
Frank J. Goodnow, Julian ID. Falrcho' JUN Siaiio
John c. Hertle.
The bill prepared by Messrs. Purdy and Lnoher
will result in the city being able to insure per
fectly good title to the purchaser OF feal prop
erty when ultimately sold for taxes The Dill also
aims at making the tax liens an attractive invest
nosnt The experience of the old city of New YORK
with its method of enforcing payment OF arrears
has been that small percentage OF the piopei'S
put I'D for sale has been bid for by inol'iouaiS
the bulk of the property being bid In by the rep
resentatives of the city, and the amount reahzeo
from actual sales is inconsderable- AS the sole
object of the sale is to realize the amount que .
city, the whole object of the plan is defeated. ne
proposed remedy to meet the defects IN 'ne oio
law briefly described is follows:
AS soon taxes, assessments and water o fenos
are laid lien attaches to the p[oPe&Tty & III Wben
OF the city wneh is prior to baae m YEARS in
or water rents four years. the lien OF all arrears 5
advertisement of sale will be sold at auction 10
the person who shall bid the lowest rate OF inter-
est not exceeding u per cent. Upon payment +s OF
the purchase money a conveyance OF the TAX
lien, payable in three years, will be executed oy
the city TO the purchaser. The city Will guarantee
the validity the lien, that the only risk taken
by the purchaser will be the sufficient value OF the
property affected by the lien and the possible
trouble of collection. - -,
Transfers of liens will be registered IN the
office of the Collector of Assessments and Arrears
and will recordable in the office of the Register
The procedure for collection will be the as for
the collection of mortgage A transfer OF tax
lien will provide that the whole of the principal
sum which the transfer of tax lien is given TO
secure shall become due at the option of the owner
thereof after default in the payment of interest
thirty days after default in the payment of
any subsequently accrung tax, assessment or wa
for six months. This provision Will nearly
insure the continuous future payment OF taxes and
assessments subsequent to the sale of a tax lien,
as the owner of the property must pay or suffer
the foreclosure of the tax lien.
Any person having interest in property af-
fected by tax lien may discharge the same be-
fore maturity giving thirty days notice to the
holder of the transfer thereof upon payment of
the principal with interest to date three months
subsequent to the date Of payment named In the
notice. Tax liens will be exempt from taxation
and will be made legal investnents for savings
banks in they do not exceed half the assessed
value of the property affected.