New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-01-28


call in their MORTGAGES and only renew them upon
per cent It is the consumer who always pays the
tax Ths S edS t aP a the Pfs
passed 1t will depress real estate not only in this
are already making demand that a clause shall
DE Zee making the m9rtgsgeGT ma aoie he Icr tne
and l do not believe it will be. There is nothing
benefit to the borrower for he will surely have to
an indirect taxa tax that you don't feel. 1t al
ways comes back the general public, and it GER
tainly will once more in this instance.
SAYS IT MEANS DOUBLE TAXATION.
Richard V. Harne:t member of the Legislation
and Taxation Committee OF the Real Estate Board
of Brokers, said
I unqualifedly opposed to the bill 1t simply
means double taxation, and real estate is already
What we need most is an Equalization of the taxes
ON o' the oh D aSd hO will 3 hos eady m
posed upon the owners Of realty The suggestion
things against it. We need those men. They have
terprse and energy have been factor our prog
that there are not Black sheep in the flock Of
builders, but there not enough Of those men to
a large number who are honest and whose efforts
result in direct good to the city. The Stranahan
bill ought to be Swamped.
Mr.. Phillips of L. J. Phillips G. Co.. said:
1t is simply an attempt to impose additional
penalty on property holders-in other words. double
veiopeG among TRUST and savings institutions is
think due the fact that they realize that 1t will
the borrower viii undoubtedly have to pay the ad-
money will be borrowed in consequence OF the
higher rate.
H De Seldng said:
have already. seen some of the effects of the
eral cases where money was wanted the lenders
nave insisted that the borrower agree TO pay the ad-
| do not see just how thi theory of indirect
enough to say that the amount that goes to the
State viii be deducted from the municipal tax, but
through we viii have to pay that additional tax
Tnents 70 make up for it The Tammany people
know their business, and with more money to draw
spondingy heavier expenditure to be met in the
[ don't think the bill will pass, and 1 don't think
there is any reason why it should.
SAYS EQUALIZATION IS NEEDED.
John F. Doyle, president of the Board of Brokers,
said:
:! do not care to express any decided opinion upon
I am. of course, seriously interested In 1t, as |
equalization. That is what we need. In one respect
this might prove benefit 1t would tend to dis
the money is coming from. The number Of fore
5ect VIII probably be taken up TOT serloYs GonsoeTa era
Gn by the Real Estate Board OF BrokeT Ts ana
Bryan N. Kennedy said:
A tax mortgages, such is outlined In the
present bill, will discourage building and that is
thing that we do want to do It will result in
double taxation the of real property, and
cannot see any good that would come from 1T. It;
payment of this tax will reduce the amount de-
n6e @ fGn to name vae m
had although it has deprecated materially in value
the f b S5 for will a wo
y sueR pangb thng tn it naturally invites
attention when any sort OF tax Is IN IT,
in that kind of attention.
Alfred E Marling, of Horace S. Ely & Co, said
ers of property for the mortgageor win have to pay
the tax. 1 cannot favor such bill. naturally 1t
duced eorrespondingly I have some doubts about
we know to one that we know nothing of.
ROBERT E. BOWLING WRITES A LETTER
In letter on the subject Robert E. Bowling has
expressed the following views:
1t has been stated that this BILL if enacted into
law, would be great benefit to the owners OF real
estate in this city. believe it would be great
injury to the majority Of them.
1t is proposed to place tax Of one-half OF per
exempt the owners of the same from any other tax
thereon by the State or any subdivision of It, The
holders Of mortgages do not now pay, except in
few cases, any tax on them as personal property,
In the county of New-York at least 70 per cent
OF the real al property Is mortgaged 1t Is safe to
quite equal to the assessed valuations of the real
Mortgages other than those securing payment of
bonds of corporations usually written for from
year to five years, and probably 10 per cent of
those now in force overdue or nearly due and
may be called by the holders before June Is, 1900
Many written with conditions that II specific
tax be placed mortgages the principal and
crued interest snail become due Immediately upon
the passage of an act creating such tax as this Dill
does.
If this bill becomes law the holders Of mort
cages due or past due will Immediately call for
payment, and the owners of the mortgaged prop
arrange for extensions of payment by paying the
one-half of cent per annum additional for the
terms of the extension.
The humorous feature of the bill is that It pur-
ports to provide "a more equitable distribution OF
the burdens of taxation" Now. 1t is quite clear
that, very few present holders OF mortgages pay
them, the exemption in the bill will not relieve
many holders of mortgages from personal taxes
/ 1t Is claimed to be the purpose to do away with
any direct tax real estate by the State and to
! shift that part of the burden to the holders Of
/ mortgages The real result will be that the
on TO the State, and the owners of mortgaged real
estate will through the mortgages one-half OF
/ / per cent per annum the amount of their mort
gage Indebtedness. which the average in New
York County will be found to be about the assessed
value Of the real estate mortgaged. This to
me to be very inequitabe distribution of the
! burdens OF taxation
/ have no doubt the advocates of the bill will say
/ 1t serves man right for having mortgage HIS
I property.
AS this tax will have to be paid by real estate in
the end, why not put it there direct as it is now
/ exempt mortgages real estate already taxed
! from taxation as personal property by the cities
and let the owners of the mortgaged and unmort-
( gagged realty stand the same footing so far as
/ taxation is concerned.
/ Then we win all pay alike and the whole market
/ will not he disturbed by the calling OF a hundred
millions of mortgage loans as 1t will be II this bin
| becomes law.