Evening star., 1932-08-07
ACTS
|. TO SEIZE PROPERTY
SeuueStrator Prepares to
Take Over and Operate
Delinquent Holdings.
Special Dispatch to The Star

Special Dispatch to The star
PHILADELPHIA, August (N-AN-A).
In this city the SequeStrator Will get
the delinquent real estate taxpayer
should persuasive and other forclole
steps fail.
Forced collection Of delinquent real
estate taxes is being prosecuted more
vigorously than ever before. The drive
to collect the whereWithal to make the
municipal machinery effective in per-
formance permits not an iota OF aoate-
ment or mitigation.
Although the most recent method 10
be invoked in that regard has barely
had more than a trial, it is considered
by city officials to be more nearly in
fallible in attaining results than any
other means which legally can be en-
ployed by the municipality.
On January l last 81 q per cent OF
Philadelphias taxable properties zap
proximately 100000 parcels Of real
estate) were in TIE tax delinquent class
for varying amounts and periods. There
are approximately 492, 900 individual
properties in the city and the total
number Of delinquents at the end OF
1881 was the largest in the history OF
the city.
After mature consideration of all tbs
factors entering into this unprecedented
situation, including business conditions
generally, City Solicitor Smyth ana
Assistant City Solicitor Longstreth, the
latter a recognized authority on real
estate and real estate tax law, finally
decided on an unrelenting procedure.
Can Operate Property.
Accordingly, they invoked the State
lien act, which authorizes Philadelphia
ano certain other cities to petition the
court for appointment of sequestrator.
Such an application can be made by the
citv 20 days after judgment has been
obtained on a tax lien. If the owner
occupies the property in issue he can
have three months stay. II the owner
is not the tenant, then the city can get
possession within Is days. The sequeS-
traitor is then legally empowered TO col
lect the rent as any landlord would, or
to rent the property to any desirable
tenant. exactly as ordinarily would be
done by the owner of record. the
seuuestrator also IS authorized to make
repairs. the cost of which comes out OF
the rent, which he continues to Collect
until the total amount Of tax arrearageS
and such expenses as may be incurred
have been met.
THE court. of course. exercises its dis
cretion in appointing a sequestrator, put
at the law department offices 1t was Sald
it is considered highly desirable Tor the
court to appoint a practical real estate
operator or an assistant city solicitor
who has knowledge of real estate and
real estate law.
Both Mr.. Smyth and Mr.. Longstreth
point out that public sequeStration OF
private property is by no means a new
matter, but is an old remedy which has
| lust recently been applied in Philadel-
phia to tenantable properties IN the tax
| delinquent class. Obviously, this method
of forced tax collection will not be used
where the cost of making property
| tenantable would more than offset the
anticipated income from rent.
collection of rents by sequestrator
and applying them toward payment OF
delinquent real estate taxes until the
full amount of the delinquency has been
recovered by the city will be done
wherever and whenever practicable"
said Mr.. Smyth. This method enables
the city to collect in inStallments tax
money to which the municipality IS
legally entitled as current revenue.
Should Yield Results.
There are other methods open TO the
city in its endeavors to collect delin-
| quent taxes, including the old-fashloned
suit against the owner and which mas
| not been followed in Philadelphia for
more than 100 years, but we deem the
seouestrator method to be the most
practicable ard one which ought 10
| yield the quickest results.
Few landlords are willing to lose
control Of q tenantable property, buSi-
ness or residential, during an indefinite
lperiod-especially in instances where
| we might assume that taxes were not
| paid because rents or a portion OF them
were being applied toward mortgage
interest.
"Oddly or not, depending on the point
| of view, some of the biggest properties
| in Philadelphia will be affected by this
procedure, and We intend to follow IT
without fear or favor during the re-
manning three and one-half years of the
administration of Mayor Moore. the
municipal government is required to
provide for the safety and general well
fare of the citizens and, therefore, the
financial needs of government must be
met"
In connection with Philadelphia's tax
collection problems, it is interesting to
note that there has been introduced in
the State Legislature bill to amend
section of the lien act so as to provide
that when a property on which the
city has obtained a tax lien is offered
at Sheriff's sale the first time all mort
cages and ground rents shall be dis
charged In other words, city tax
lien would antedate lien of mortgage.
The lack Of such law is the stumbling
block at present when the city attempts
- oil NJ ch VlTnE1nFfiaE IN
which there are encumbrances. In
yariably there are no bidders because
of the difficulty encountered in getting
clear title.
Won't Overload City.
Also, the city frequently has found
that first and second mortgages often
exceed the market price of the prop
Longstreth emphatically say. the city
will not indiScriminately acquire prop
erty and enter the real estate business,
thus loading the municipality with
holdings for which there seems no early
prospect of a market.
incidentally, it is reported that the
bill to amend the lien act is being held
up in committee because of opposition
by some trust companies and fiduciary
estates. But many other States have
practically the same legislation this bill
would provide
I'VE believe that seizing rents under
authority of the court is a more effective
means of collecting delinquent taxes
than any other method permitted under
existing law" say Mr.. Smyth and Mr..
Longstreth. "And we will continue to
use it to the best of our ability"
Copyright, 1892. bv North American News
paper Alliance. Inc)
nj AINC DILL uIICDANN