The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1889-01-16
TAX REFORM MUCH NEEDED.
The Law as to the Taxation of Mortgaged
Property in Indiana.

The Law as to the Taxation of Mortgaged
Property in Indiana.
To THE EDuoR-Sir: We are living in an
age of progress and reform in which the arts and
sciences marching forward with most won
derful strides. So, too, are we living in an age
in which mankind think and reason and have
a better discrimination of right and wrong
than in bygone ages. This is very evident to
every well-informed mind. Now inasmuch as
we have had any amount of fuss and froth on
the question of revenue reform, and as that
question has been settled, at least in part for
the present, let turn attention to a little
tax reform, which in my judgment. as we'll as
that of thousands of others, is much needed.
The reform | have reference to is the present
law in reference to assessing and taxing mort
gagged property in this state. ] refer you to
see. $500 OF the acts of 1881, which reads as =
follows:
In case of mortgaged real estate, the mortgageor
shall for the purposes OF taxation be deemed the
owner until the mortgage shall have taken posses
sion. After which the MORTGAGE shall be deemed the
owner.
Now according 10 the provisions of this sec
tiOn OF the statute man may be the owner of
real estate, say of the cash value OF 5000
and at the same time have a mortgage on the
same real estate for $1,000 and be compelled to
pay taxes on 5000, when in truth and in fact
his interest in the same is only of the cash
j
is also obliged TO pay taxes on $1,000 and thus
taxes are assessed on $1,000 instead of $1,000
the cash value OF the property. Now it does
seem to me that no sane man would say that
this is right and just II is simply nothing
more nor less than an imp position on the debtor
which ought not to be tolerated for an in
slant The mortgageor should pay taxes on the
interest he owns in the real estate and no more,
and the mortgageor should pay taxes on the in
terest he represents in the real estate and no
more.
But am told by some that it would not do
to make this change, as a great many mort
cages are held and owned by nonresident cap
ltallsts and foreign corporations who could not
be taxed. A very lame excuse in my judy
ment) can see no reason why nonresident
capitalists and foreign corporations cannot be
taxed on the mortgages they may hold against
our citizens as well as they can be and are
taxed for the real estate and other property
they may hold in this state, and just as well as
the resident mortSagee. The law, as it now
stands, seems so utterly at variance with every
principle of justice and good government that
| cannot imagine why il has not been changed
long ago, The old saying that legislators legis-
late to make the rich richer and the poor poorer
is at least verified IN the section quoted so far
as the debtor class is concerned.
do hope our present legislature will take
this matter up without delay, and erase this
blot of injustice from our statutes and give m-
mediate relief TO thousands OF our citizens who
have been and are now aroused in being COM
PEELED to pay taxes on that which they do not
own. Tax the debtor as well as the capitalist
on that which he owns and he viii pay it cheer
fully; but don't tax him on that which he does
not own. II is not right; il is unjust. The
poor debtor has burdens enough TO bear, and
the great state OF Indiana does not and ought
not to require this class of her citizens to pay
unjust taxes. 1t should be her pride TO see
that justice is done her debtor class of citizens
as well as capitalists and monopolsts.
This is a subject | have long thought of, but
refrained from bringing it to the notice of our
legislators in hopes that some one more able
than myself would take it up and ventilate it.
| also hope the newspapers, irrespective of
party, throughout the state, will take I'D this
subject and not sheath their swords till the
victory be won. They would do a great good
to a large number of our citizens. Let
your motto be- "Let justice be done, though
the heavens fall" XERXES.
Fort Wayne, July Is.