The San Francisco call., 1896-08-28
Associated Improvement Clubs
to Wage War Against
Its Adoption.
sCHwARTZs VIEWS
Declares That 1t FavorS the Money.
Lender and Double.Taxes the
Borrower.

Before the Associated Improvement
Clubs. which convene in regular monthly
session next Tuesday night, a resolution
will be introduced pledging the united
members to vote and work against the
adoption of amendment No. 1, article 13,
of the State constitution. If the measure
is passed, and those who have the matter
in hand have no doubt of this, an earnest
and systematic crusade will be instituted
against the proposed change in the State
law.
1t is contended by the opponents OF the
measure that the amendment, as 1t now
reads, places a double burden on the bor-
rover, because it requires him to pay not
only the interest on the mortgage, but all
the taxes on the property. Under the
present law the holder of the mortgage is
compelled to pay the taxes to the amount
of his claim, leaving the owner responsible
only for the difference between that sum
and the assessed value of the property.
The amendment to article l3 reads:
Section 1. All property in the State not ex-
EN- ut under the laws of the United States or
this onstitution shall be taxed in proportion
to its value. to be ascertained as provided by
law. The word property" as used IN this ar
ticle and section, is hereby declared to include
moneys, credits, bonds, stocks, dues, fran
chises and all other matters and things, real,
personal and Mixed capable OF private owner
ship; provided, that property used for free
growing crops, mortgages, trust deeds, prop
erty used exclusively for public schools, and
such as may belong to the United States, this
State or to any county or municipal corpora
ton within this State, shall be exempt from
taxation. The Legislature may provide for
reduction from credits of debts due bona-ide
residents OF this State.
"I do not think that one man in fifty
n rcfa nd m nf
posed amendment" said Secretary
Schwartz of the Associated Improve
ment Clubs yesterday. 1.-The change is so
slight-merely the insertion of three
words, namely, mortgages and trust
deeds'-as to hardly be noticeable at the
first blush. Every man whose property is
mortgaged should vote against this
amendment, because it will force him TO
pay all the taxes on his property, releas-
ing the holder of the mortgage from any
liability, and thus add the tax to the inter-
est he now pays.
"Some DAYS ago I addressed a commune
cation to Assessor Siebe, asking for GER
tain information concerning real estate
and the number and amount of outstand-
ing mortgages. The Questions and replies
to the same are as follows:
What is the total assessed valuation of the
reel property OF this City? Real estate $780,
927. $50, improvements $88,506,915; total
$275 334, ,295.
What is the amount of mortgages held
against this property? $50,926,6 ,692.
the real property of this City consist Of? About
$4,000.
How many of these parcels are mortgaged2
27,000.
at will be seen from the above" con-
tinued Mr.. Schwartz, "that over one
fourth of the real estate of San Francisco
is mortgaged. Naturally the moneyed
men and bankers will work solidly for the
proposed amendment, for it is money in
their pockets. The borrowers are the real
sufferers, and / am sure they do not APP
preciate the gravity of the situation.
Banks, of course, would not be particu-
iarly interested in reducing taxes, as they
would not be affected.
'There is another end to be considered
also, though | do not mean to say that
such course would be followed by all.
The proposed amendment, S view il, is
nothing short of a tacit encouragement to
capitalists not to invest, except in the
way OF loans. In other words it offers a
premium TO keep money out of business.
On the other hand the money-lender has
certain risk to run. 1t is possible to
'cinch' mortgagor by assigning the mort
gage to a resident of another State, thus
preventing reduction from credits OF debts
due bona-fide residents of this State.
81 am satisfied the Associated Improve
ments Clubs will oppose the amendment
as soon as they fully understand the
danger. Every borrower, not only here
but throughout the State, is directly inter-
ested. The measure means practically
double taxation for them, and am sure
they will not submit to it when there is
chance to kill it through the medium OF
the baliot-box."