Evening star., 1934-11-20
M|LWAUKEE.TA
PLAN SUCCEEDS
Entire 1888 Assessments
Paid and Delinquency
Fund Reduced.

MILWAUKEE,, November 20 (NA.
A).-Cities throughout the country
will be interested in learning how
Milwaukee taxpayers have begun to
free themselves from the burden of
delinquent taxes that have accumu-
lated since the economic collapse of
1929.
In the present tax year Milwau-
keeans have not only paid the entire
amount Of the 1888 tax of nearly
1000, 900, but, when this tax year
ends in December, they also will have
paid more than s2.500,OO0 toward
clearing away their previous tax de-
linquency. This record includes pay
ment by the city, through the county
tax, of the municipalities share of re-
lief costs and a reduction of approx
mately $4,000,000 in the city debt.
Installment Payments.
Two acts of the city administra-
tion in 1882 prevented the financial
collapse predicted by critics three
years ago. One was the Inauguration
of an installment plan for tax pay
ments and the other was the drive to
collect taxes
In II other American cities. the
results of tax collection campaigns
are reported by the National Munich
pal League. In eight of these, city
officials were assisted by organizations
of citizens and taxpayers in planning
and conducting such campaigns. In
Milwaukee the work has been done
entirely by public officials and en-
ployes.
Beginning in June, 1882, the city
treasurer put into effect plan of
lnstallment payments for taxes. He
used the newspapers and sent out
notices with water bills to advertise
the plan.
The response came slowly at first,
but there are now $4,000 active &C
counts by which taxpayers are clear
ing up dehnquencies. Installments
range from ST to $4,000. Passbooks
are issued carrying details of the
account. Tax installment receipts are
now averaging S260,OO0 month.
Action was started in 1882 to en-
able the city to take tax deeds of
property for which three years of
taxes were unpaid. This involved
checking up the owners, mortgages
and others interested in property for
which taxes were unpaid. Lax meth
DDS of city tax collection were re-
vealed. Delinquencies for past years
unknown to the owners were shown
These owners and mortgages were
told that unless suitable arrangements
were made, the city would proceed
to take tax deeds. The cooperation
of the property owners and others
involved was gratifying Many i'm
nediately took steps to settle the
claims
Where notices were ignored. in the
case of income-producing property,
court action was taken for the appoint
ment of receivers. This brought more
settlements, and only one receiver has
actually been appointed. In other
cases where the owner or others inter-
ested showed no intention of paying
the taxes. the city took tax deeds.
There have been about 200 such cases.
Owners Rescue Homes.
Not one of these properties was
home, despite their often repeated
SLOIy LIldU OWllclS lldNC
lost their properties because they could
not pay the taxes. The properties the
city has taken for taxes have been
chiefly vacant lots. with a number of
abandoned industrial plants.
In addition to the installment-pay-
ment plan, the use of baby bonds has
helped tax collection. BY buying the
securities at discount and using them
to pay taxes, property owners have re-
couped a part of the penalty for nom
payment
Operations of the H. o. L. C. have
also helped, loans made requiring the
payment of all delinquent taxes. The
amount received from this source is
estimated at 81 800 900 for the year.
The financial plans adopted by the
city administration are proven sound
by their results, says City Controller
w. H. Wendt. He points out that
along with the reduction of the city
debt the city amortization fund has
been maintained and is now $500 900.
If the city refuses to issue any more
bonds, in five years Milwaukee will be
in the best financial condition Of any
city in this country and nearly free
of debt, Wendt says.
(Copyright 1934)