The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1900-11-19
MoRrGAGn rANAr1nN-

The Sunday Pioneer Press, in an article
on Taxing Mortgages takes the state
of Missouri to task for adopting a con-
stitutional amendment providing for the
taxation of real estate mortgages, and
characterizes it as Populistic movement
to Cypress the money Tender and help out
the debteraclass.as.4s-
The article. clearly proves. one thing,
and that scarcely needed proof. We re-
fer to Pope's aphorism, ga little knowl-
edge is a dangerous thing.
The ebjeete.of mortgage taxation has
always been first, to AVOID double taxa
ton on incumbered property; and, sec
ond, to compel nonresident holders Of
real estate mortgages to contribute their
share to the burden of carrying on the
local government.
Long before Populism was invented
economists were trying to devise means
to equalize the burden of taxation be-
tween the, debtor apd, the. creditor class,
and at the same time fix upon an equita-
BILE scheme which would rid encountered
property, especially real estate, OF
double assessment, SECURING also the
payment of taxes to the authorities
where the property is situated, and for
the protection of which the local au-
thorities are: charged
No one will deny the fact that man
owning a farm, valued at 5000, and
mortgaged for SO, 900, is possessed of only
4l,U00 worth Of farm. Should he be
compelled to. pay a tax on a valuation
based upon the $4,000 estimate? If the
party holding the mortgage, and living
in another state, is sufficiently honest to
turn the mortgage in as personal proper
ty, the farm becomes subject 10 double
taxation, so far as the mortgage goes.
The fact is that very few of the
mortgages are ever reported to the as,
SCISSOR, and the encountered property
bears the burden of taxation alone. The
theory of the law is that property as
well as individuals receiving the pro-
lection Of organized society must con-
tribute to the expense of that protec-
ton accordingly. A man holding mort
gage on real estate is bound, in theory,
to pay his taxes where the property IS
situated. A mortgage interest is an
estate, recognized by law. True, it is a
defeasable estate, which may terminate
under certain conditions, for con-
venience it is called a lien, but it is
sufficient to carry insurance and to give
the pessessor a, right. to. pay taxes to
save the property from tax sale.
The theory advanced by the Pioneer
Press, that a taxation of mortgages
where they aresrecorded,s would raise the
rate of interest just that much, and
that the burden would not be shifted
from the debtor class, is based upon the
assumption that the mortgage never re
ports his mortgages to the assessor for
taxation. This view may be right If
so, it is high time that the rest of the
states follow the lead of Missouri and
amend their constitutions or enact such
laws as will reach these mortgages,
wherever they may be held.
mo state can FAX mortgages owned by
citizens Of another state" says the
Press. This is, indeed, new doctrine.
Every state has the power to determine
the method of-taxatlon of property with
in its jurisdiction. This property may
be in the shape of lands, mortgages or
judgments. The owner may be beyond
the jurisdiction of the tax collector, but
he must look to the. state for power
to enforce his lien or collect his judg-
ment. The Press will find upon closer
investigation that old Missouri is not SO
far off. after all. .e.~-