New-York tribune., 1909-06-06
BIG SALE FOR TAXES
ARREARS NOW S65,1S9,17S.
Negc Lac GiOes Buyer Valid Title
after Three Years.

in the history OF the city will begin in the old
Council Chamber in the City Hall tomorrow fore
noon at 10 o'clock. and continue indefinitely.
On account of law, which gives the pur-
chaser OF real estate sold for tax arrears a valid
title at the end of three years, delinquent taxes TO
the amount Of more than sSO00,00O have beer
turned into the Controllers Office since January 1.
1909.
Daniel Moynahan Collector of Assessments and
Arrears says that the total arrearages as Of Ianu-
any 1909 are as follows: Real estate, sSS.1ss.-
7T5 5S; special franchise taxes S3O.3b1 41S 30 real
estate OF corporations, S16S7,SS4 IL; total 500
1918 05. This total is for all the boroughs. Inc
sale which begins tomorrow is for Manhattan ar
rears alone These aggregate about s13 oO0 900 for
real estate, and much more for special franchise
arrears.
The most significant development in the situation
is the formation Of various syndcates, backed by
some OF the large financial institutions In Wall
Street to bid extensively the sale which begins
tomorrow. The fact that the tax lien disposed OF
at public auction constitutes lien prior even 10
first mortgage is what has interested the bankers
in this the newest opportunity to specu~
late in land and title values In explaining the sys-
TEN under which the sale will take place beginning
Tomorrow Mr. Moynahan said last night:
The former provisions OF law for the sale OF
real property In the city of New York for the col
lection of arrears Of taxes, water rents and assess
mentE whereby the purchaser obtained the right 20
a lease the shortest term Of years for which a
purchaser would bid in consideration OF payment
q
property. have been radically changed by the laws
Of 1908.
Under the system the lien Of the city Is
purchasers for the lowest rate of interest
not exceeding II per cent, at which any purchaser
will agree pay the city the amount OF It's lie
with interest to date of and advertising charges
The bidding downward, rather than upward, is for
the protection OF the OF the property against
whom the arrears charged UP. 1t amounts. in
other words to obtaining by public bidding the low
r-x-frer char0
the owner within three years. to lquidate the tax
against him, plus the lowest carrying charge
obtainable by public bidding
Under the former system taxes and assessments
had to be In arrears three years and water rents
for four years becoming subject TO sale and
when sold only arrears that had run for at least
those periods, respectively, were Included In the
charges for which the property was sold. Under
the new system tho peIiod required to run before
the property is subject 20 sale Is unchanged out
there is tfis important difference: Not only IS the
property solo for such arrears, but there is also
included all subsequent liens to the date named
n the advertisement OF the sale For example: If
the tsxns for the years 1905 1896 and 1907, and
assessment confirmed and entered in 1917 against
given parcel, are urpaid-having been unpaid Tor
three years as TO the 1905 taxit Is subject to SALE
and not only will the sale be for the tax OF 1SOO,
h,,. u will include also the for the 1906
and 1887 and assessment confirmed and entered in
1907.
The instrument evidencing the sale by the city
"a called a transfer OF tax lien. The interest due
under this new lien is payable semi-annually, on
January and July 1 in each year. In the event
that the owner OF the property fails to pay me IN
terest on the said lien OH the due day. or fals 10
nav taxes rents or assessments that are suo-
.aouentv charged against the property, the holder
Of the transfer lien may foreclose the same
as in the case of first mortgage The owner OF
the rronerty has three years from the date OF sale
On which 10 redeem, at the expiration OF ~hicn
time the lien becomes due and payable and may
ha foreclosed. The purchaser OF transfer TAX
lien would seem to be protecteu Amply ~ '0 P''
visions of the new law"
[-.rniar Metz savs that the Finance Depart
n, ba. no intention Of unduly harassing delin-
quents. ., ia .bo
We've got to get in these arrears. salo the
C.ontroIler Yesterday. ''Of course 1t is q money
,nsk,n1 practice for TO borrow money at per
a,+ 20 cover these arrears and charge up Z per
90. ,n.arest against the property. We have mace
lot OF money that way. But we dont want 10
,,.ka money that way. The arrears nave Bro"h
"a such enormous proportions that the ci.y' aS
xnattar OF sound business practice, efhnot aHoro
q. Il. the arrears accumulate, AS bookkeeping
" - - .ha cItv has made enough profit in this
ste,arn,tsl TO defray the entire cost Of running
tha FINANCE Department from year TO year
.onasnita the per cent penalty, the arrears nave
constantly grown, until now we must get 'lleni ii
-r,a new law enables us TO sell tAe laid' anu W W
- a.. purchaser is not reimbursed In three years
" -. ,-sIid title to the land by foreclosure we
- ali evervthing on the list-special franchise
orraars and everything. Revenue nohos nave n
t.sued TO cover these arrears, so .h@t as s ~ %
ISSUE a, .ha arrears we shall retire the revenue
bonSs We shall not have any ihoIe M. 80
ana ont of hand account or the arrears saes'
speNu hor get the Indebtedness in each instance
~ ,s rr the books and not be UNDER the heces-
80 - ceiling SO many revenue bonds II Is sooo
hurness policy to clear up the arrears II "
-. 80 onr financial housekeeping