The Princeton union. [volume] (Princeton, Minn.) 1876-1976, 1891-03-26
Taxing Mortgages.

Under the head of ''Taxation
Iniquities," by John Lathrop, he
says there is no shadow of excuse
for exempting mortgages from
taxation. I have had considerable
experience on both sides of that
question, have studied it for many
years, and have failed as yet to
find any practical way of taxing
mortgages without the tax coming
back on the borrower. That sub
ject was wrestled with for years in
my native state, and finally dropped
by mutual consent.
Of course, the object of taxing
of mortgages must be to save to
the borrower, for double taxation
cannot be the object; if it u.s. it
comes back on the borrower again,
either in increased interest. or
clauses in the mortgage covering
all taxes, and making the lender
secure in a certain net amount of
interest. A person cannot be COM
PEELED to loan his money if the
terms are not satisfactory, and the
is insufficient. .,y<,.--.es~
Now, look at the workings of
the present law: The register of
deeds certifies the MORTGAGES on
record to the assessor for taxation;
they are personal property, but he
finds the owners are residents of
some other county, the tax cannot
be collected. A man would hardly
loan money in his own county and
lay himself liable to all kinds of
tax, amounting in some instances
to nearly seven per cent, and in
many instances the mortgage on
piece of property is double the
assessed value of the property it.
self, and the mortgageis assessed at
face value. The present law forces
a person to do that which is de-
moralizing, as matter of self-pro-
lection.
Our present legislature is trying
to devise some way to compel own
ers of mortgages to pay taxes on
them, and at the same time cut
down the rate of interest, and for
bid premiums and bonuses. It
would practically be saying this to
our down east money-lenders:
eve will give you seven or eight
per cent. straight for your money,
but you must be assessed in
county, town and school district on
your money loaned there, and pay
all taxes voted for any purpose,
and we will reach you in some way
SO you cannot dodge it; and then
any, person having his premises
mortgaged shall have that de-
Quoted from his assessment, be-
cause double taxation is not right"
Wouldn't it be fun for US fellows
that are mortgaged? We would
have our roads fixed up, new
school houses, and all kinds of i'm
provements. But the assessor
would have to look out and assess
higher than he does now, or he
would find himself in debt to many
of us when he came to deduct our
mortgages from his valuation of
our property.
But if any such laws can be
passed and enforced land such laws
are certainly demoralizing if they
cannot be enforced), what wonld
result? Just think of it for a
moment. Men with money to
loan are not fools; I have always
found them ''too cute for any
thing" Even now, anticipating
silver coinage legislation, some Of
them are making their notes and
mortgages payable on a gold basis;
that's taking time by the forelock.
| want to see everything possible
done for the debtor class, and
something must be done, but when
we have our heads in the lions
mouth we don't want some other
fellow prodding him behind to