New-York tribune., 1900-01-25
MAY FIGHT MORTGAGE TAX
SAVINGS BANKS REPRESENTATIVES, TO
HAVE A CONFERENCE.


Committee on Taxation and Retrenchment lHPo9'i's
q tax of one-half of l per cent on mortgages ."
real nropertv The meeting vii be under the au-
spices of the Executive Committee OF the oa'iie9
BANKS Association of the State of New-York
President John Harsen Rhoades OF the Greenwich
Savings Rank sent out notices to all the savings
hanks OF the State, inviting them to be rePlese"l
at the meeting. The impression prevails 'ia' -"
majority of those present to-day Will favor oPpo'
ing the passage of any bill imposing tax OF nVe
mills on mortgages. as suggested 1t IS repof'e1
that some Of the savings banks presidents are III
favor of the measure. Under the present law sas
ings banks and insurance companies are taAeu "y
ON their real estate. the exemption being desis"Sd
in the interest of depositors and pohcy holueiS
PRESIDENT JAMES MMAHoN
James Mcmahon. president Of the Emigrant In
dustrial Savings Bank. in Chambers-st' wheh seei'
yesterday afternoon, said: II,
have been opposed this bill from the oestbh sbo
ming and there is no doubt that majority oi bint &
savings bank officials of this city ana otate ,a in
ferests of the thrifty There has not been sesSn
of the legislature for the last twenty years ytic to
the savings banks. When one comes to eonstIot Ios
rather small business for the Empire State to TAX
the thrifty poor people who; By y harH wbat this
pm amounts TO- or If the securities @ b5@s we f6 come nSS OF
taxed just about so much VIII nave opposed 20 ali
efforts of this character. sympathzs WIN u ra
TaSed %hI k or na 9f Peesnse ff It IS largely
letter It affects only the " OF rewd nS guar
dams Of large feel d hat It nar6 a 8uf the inter
ests of the deposltors and this bin looks 10 me
like an injury to them.
CONTROLLER T. D. JORDAN.
Controller Thomas D. Jordan. of the Equitable
Life Assurance Society, said
This proposed tax bill is now in the hands OF fGT fn
company's counsel and it will be impossiple ioI
me to say whether this company VIII @ IeeI cal'Tu ca g.
The MORTGAGES negotiated by the Equitable have
clause enabling the company 10 can lnsln ILL., e. e.
case there should be tax imposed on them them 6o Ho
1t will be seen a glance that we canh99u L;9 pT
largely affected by the passage OF igeh IKE te % one
Dr0PSs9d & was 9ead m has law embodyng
some of it's features.
PRESIDENT CHARLES E. sPRAGUE.
Colonel Charles E. sprague, president OF the
Union Dime Savings Bank. when asked yesterday
for his opinion the proposed measure said 10
a Tribune reporter:
I think 1t is a grossly unfair bill because 1t Sc
gage upon it for State taxation, and exempts from
al taxation for State purposes such 4or illus
trations sake, 1 show you two houses side by slde
ere a akf ofg on h He Is nRered It from
father and Of course has not had & 70
to a comparatively poor man, who had NOT &c Sasn IN
borrow from the savings bank. the building loan
association life insurance company. Which OF
heS the state Of New9ork should desire to exempt
from taxation-the one which is already 3Hrden@6 a
incredible that the burden is to be lifted from
already burdened with mortgage. But this is the
effect of the bill which has been introd9ced 1T
mortgagee Well, never mind who pays az I'll. them MT II
9as got ere 12 n no out oher OF 9s T
ing. Paper documents or ccS DIS expressing tine the
relations of persons TO properly never dd ana never
sn @ cent tie for ta Pne 6fTa prPeF
is the and the only earning source for earn
ing the income which win pay this tax
THE BORROWER MUST PAY IT.
It is absolutely certain that the borrower win
a short time the landlord may do So But as fast
as mortgages become due the IaiIer VII Ire TeIusS iS 20
per cent for the future. Senator stranahan says
that in the rural counties the tax cannot be shifted
10 the borrower because the loaner viii run up
against the qsury law. He says the farmer s rs Us
State He gives away the borrowers case how
difficuty at that rate" Does not the Senator see
that the lender who is reluctant now to loan at
under the new measure? Does he not see that
he is going to make; it impossible for his rural
friends borrow at al, unless by agreement with
the lender they agree TO pay the tax?
EFFECT oNt SAVINGS BANKS.
Asked what effect the bill would have on the
savings banks, Colonel Sprague replied:
Well, first as I have explained. their profits will
be largely reduced and consequently the rate they
@ correPspSSndngiy reduced This bni seems designed
to punish thrift either in the person OF the one
irving to clear his home from debt and l don't
believe that the Legislature will ever pass law
of this kind.
] want to speak of one feature of the BILL which
imposes a useless burden, and which, far |
can see will benefit only the lawyers If there had
been any partial payments on the mortgage II
will, nevertheless. be assessed al the full face
value unless the mortgage files during the month
9bstraet of tte Many morgagee do not possess is M
abstract of title, holding the title of policy
panies instead. These people Will be compelled TO
further expense of having a copy of ii made each
year, submit to paying the tax on the original
amount.
The only argument in favor of this bill seems to
be that it will remove from the counties temp
tation to undervalue their property to avoid State
tax l can suggest method by which this can be
done and the result aimed at by Senator Stranahan
be reached much more simply. Let ii be enacted
that hereafter much of the tax raised upon real
State Controller for State purposes shall equal
one-half of / per cent of the amount of mortgages
let the raising of taxes in each county be made
independently of any other county and let a GER
tain proportion, fixed according to the wants OF
the State. of such tax be devoted TO State pur-
poses. Then there would be no temptation to under
value property in the county, but direct incentive
20 economy in internal Affairs
JOHN HARsEN RHOADES.
When John Harsen Rhoades, president of the
Greenwich Savings Bank, asked what he
thought of the bill. he said he in favor of ex-
empting real estate from taxation for State pur-
poses but he did think bill should be passed
to disturb existing mortgages on real estate dis
turb real estate values. II the savings banks
should have to pay the tax without being able to
arrange with the mortgagers to repay them by an
advance in the rate of interest charged 1t would
result in reduction in the rate of dividends de-
posttors
CALLS 1T PIPE DREAM"