The Republican journal., 1888-11-15
Proposed Legislation.
DOUBLE TAXATION-THE MORTGAGE TAXATI,
QUESTION.

DOUBLE TAXATIoN-THE MORTGAGE TAXATION
QUESTION.
The probability that the mortgage taxation
question will be brought before the Maine Legis-
lature at the coming session, and the general
interest manifested III the subject by the own
ers Of real property and the lenders of mon
cy upon the same, prompted the correspon
dent of the Portland Express to obtain the
views of several of Augustus representative
men on the subject. Col NJ. v. b. Chase, Presi-
dent of the Kenncbcc Savings Bank, thought there
might be a chance for Improvement but said if
the men who loan money on mortgages are com
PEELED to pay tax they would certainly be oblig-
ed to raise their rate of interest and he did
as the mortgage would gain anything. He said
further
With our bank and savings banks in general in
this State real estate mortgages are already very
unpopular, we actually declining nine out of 10 Of
all offered us within the past year; and if tax
were imposed such as is proposed in the Vermont
bill, the result would be that should not only
refuse them all, but would call in those have
outstanding. The bank is now compelled to pay a
tax of 2. of one per cent. on all loans, and if an
additional two per cent were added to that, why,
1t would virtually prohibit us doing business i'll
the real estate line. For my part, would soon
they would pass such law as not, as it would re
sult III our calling in all our mortgages real
tate which now cause us an Infinite amount Of
trouble and enable us TO put the money into bonds
Dr. j. Hill, one OF the trustees of the kennebec
| Savings Bank, said
| | can speak only as a trustee OF the bank, for
| personally would not loan money real estate
mortgages don't like them as claim tor security.
| The man who borrows the money is the one TO pay
| the taxes. The bank has less than 20 per cent. OF
Its money invested i'll real estate mortgages, and if
| obliged to pay a two per cent tax upon them must
raise it, rate of interest accordingly.
| Lendall Titconb Esq, one of Augustus promi-
nent lawyers. gentleman dealing largely in real
| estate and mortgages, and Of wide experience In
real property, gave his views as follows double
| taxation is unjust, and mortgages are frequently
so .raWn aS to oblisc the mortgage to pay the
| This is not unusual.' In reply to question as to
4 the probable result of law compelling the mort
| gage to pay tax on the amount of his mortgag
| he said: 1--WE must admit as a fact that If man
could put money into anything which would pay
/ the same rate of interest without being subject tc
/ etaN hc certainly Woud not invest it in real estate
mortgages to De taxed per cent on probably
more And if Il law should be passed to day levy
inga tax on all mortgages, they would be cancelled
as quickly rs possible and the money put into the
savings bank
Attorney Gen. Baker was of the opinion that
! such law a. proposed would make but little ,lif
ference To the mortgage. If he is obliged to pay
a tax he will certainly charge it back in some way
| to tie mortgagor and if man wishes to borrow
! money he must pay whatever the lender asks in
ortcr 10 get it. In the event of a per cent Ia \
The morgagee viii simply charge 5 percent for liz
money. He said that great difficulty is to get
| At personal property and make 1t bear its proper
tion OF the tax burden
The Express correspondent sums up the matter
| Is follows.
| The difficulty lies not much in framing a law
as IN its application. The Vermont statute would
now he practicable here but under this system re
curing tan payers to return lists of all taxable
| property We put the burden of discovering tax
| able property upon the assessors. They do no,
| examine the records to see who holds mort cages
for to do fun Justice they would have to examine
the records i'll every county. | fear that
suit would he to reduce the amount of assessed
property.
THE INSOLVENCY LAWS.
Severa ears experience has shown that changes
| are needed in the present insolvent laws of oul
state. According to the present law, debtor MAY
file his petition ana stop there, protected from any
suit by the fact that he has a petition for a dis
| charge from his Indebtedness pending in the In
| solvent Court, and his creditors may whistle 70,
their dividends. This fact has been taken adj
| vantage of by INSCRIPTIONS parties to such an eX
| tent that sometimes the same party files sevcra
ness incurred since the last petition was fled I'll,
new aW which will be called for this winter, vii
0blige the party praying for release from his
debt to take some steps toward the prosecution o
his cause before the court. and fixing limit of on,
year, in which time the petitioner may make gooo
his case and secure his discharge, or the case bt
dismissed from the docket. 1t Isl desirable change
| Maine Farmer.