New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-02-07
PLAN FOR PAYING TAXES
Controller Tells City CLUB ne
Wants to Advance Date.
SUGGESTS TWO PAYMENTS
Scheme Well Received and Bor-
ough President McAneny ana
L. w. Purdy Indorse IT,

Controller Prendergast at the Oi'y Oiuo
last night sprung his scheme Tot "i' '"o
ing the date for paying taxes ana so'
away with several rounds Of applause ne
had the satisfaction. also. OF ha'ins hoi
ough President McAneny and Lawson W.
Purdy. president Of the Tax Boaio' IN
dorse his plan.
The idea was not a lew ore. hrt VI was
the first time Mr. Prendergast had orousn'
II I'D. Controller Grout proposed " III
1902 his plan being TO have the taxes pau
on January 1 in advance Mr.. PrennersaSt
divided the payment In two parts one on
MAY I and the other on November l. MI
Purdy said that Mr.. CIRCUITS plan "ouiu
not have worked. and that any one IA
miliar with the work Of the lax boaru
would know that, but that |ontioier
Prendergast's plan was practical anu ai'el
the necessary legisla ton was enacted j.
could be put in effect within a couple OF
years Of reimbursement
Mr. Prendergast said after the meeting
that he had been working on the plan since
June, during which period he had had
great deal Of correspondence with ofnc'a!S
Of other American cities and had inquired
as well into the tax collection methods Oh
several European cities He said he ex-
pected the cooperation Of the members OF
the Board Of Estimate and the heads OF
the city departments, and that he would
have a bill prepared and presented to the
legislature at Albany during the present
session.
The Controllers plan vas launched IN the
course Of a speech on the 1911 budget. He
had been talking OF the lack OF wisdom OF
much Of the city's financing. the high rate
Of interest frequently paid because OF the
system used 10 get money for the city
needs. and the unfavorable comments ne
had heard made by European fnanciers on
New Yorks methods. He continued as FOL
lows:
1T is unwise 10 borrow money for ten
months each year in anticipation OF the
collection of the taxes. Many other cities
collect their taxes every four months and
still others twice year. London collects
It's taxes half yearly IN advance.
The proposal has been made that we ad-
vance the time for the collection Of our
taxes a month year until they are payable
on January l. My Investigations show that
the method of semi-annual payment has
worked most satisfa ctorily in many Ameri-
can cities. and believe that under that sys-
TEN we would have so per cent less OF de
linquencies in tax payments than We do
under the present system.
at present our taxes are payable on Oc-
tober J. Ny suggestion is 70 have ser1i-an-
nual payments the first on May l. with a
penalty for delinquency after May Is, and
the second on November ], with penalty
for delinquency after November IL. / be
lieve that this system would save the city
one-half Of its present annual interest
charge. It would relieve the strain on the
banks at a critical period, and II would
save the taxpayer money by distributing
the time in which he would have to raise
the money for his taxes and by the saving
in the tax rate by reason Of lowered inter
est charges that the city would have TO
meet"
Mr.. Prendergast and Mr. McAneny were
the stated speakers at the meeting and
Mr. Purdy was an extra on the bill. He
took up statement OF Mr.. McAneny in
regard to the cost OF the Water Depart
ment, and said he had hoped for many
years that the Board of Estimate would
show in it's budget report Just what the
city's water cost. He thought IL was not
right that the people should pay more for
water than the water cost. They did pay
more. because the returns from the de-
partment went into the general fund. This
was not right, and he hoped the next bud
get report would show the relation OF the
cost OF running the department and the re-
turn il made to the city, so that the water
rate might be reduced.
He added the information that his depart
ment expected this year 10 collect 80 per
cent of the personal tax assessment. in
stead Of the 50 per cent that had been col
lected in previous years. The small collec-
tons of other years, he said, had been due
10 the miserable system of ordering the
Tax Board TO levy taxes without providing
any means for collecting them, the result
being that taxes were levied that had 10 be
paid only If the people felt like paying
them.