New-York tribune., 1900-03-10
MORTGAGE BILL CHANGED.
CORPORATIONS TO BENEFIT BY SENATE
AMENDMENTS.

ably by the unanimous vote Of the Senate Com
mittee on Taxation and Retrenchment. This
| committee has as its members Senators krum,
| Higgins Stranahan, Humphrey, Johnson and
| Sherwood, Republicans, and Senators Foley, Cul- |
| len and Boyce Democrats. 1t will be remem-
bered that this bill drawn up by COM
mttee of the Legislature which had its Sen
ate members Senators Stranahan Higgins and |
| Grady, and thus was formally adopted by the
leaders of both political machines in this State.
Since the bill introduced, however. va
rious corporations injuriously affected by the
measure have submitted briefs against it, and
in view of their protests some radical changes
have been made in the measure in the way of |
exempting mortgages heretofore made which |
pay less than per cent from the taxation i'm
posed by the bill The bill in its latest form"
said Senator Stranahan to-day nevertheless
will raise S13OO0OOO, which will pay the State |
taxes In all, I dc not think the State will lose |
over $35OOO0 the result of the changes we |
have made in the bill"
One feature of the bill which will excite |
general interest will be provision that William
J. Morgan. the State Controller. may issue |
bonds the amount of S6.O000O0 in anticpa- |
tion of the tax authorized to be levied by this
Mortgage Tax act. to pay the expenses of the !
State government.
Senator Stranahan further said in explana-
ton of the bill he submitted to-day:
Inc Dill does not change the tax of One-half |
or l per cent on regular mortgages hereafter |
made. or of / per cent on bank and trust COM
pany shares, but it does change the bill in the |
following particulars:
1t eXempts mortgages heretofore made bearing !
less than per cent interest, whether individual
or corporate. It eXempts mortgage secured |
bonds where there is agreement in the instru-
ment that the obligor will pay any tax imposed !
the mortgage This is to help out street rail- !
way companies in New York, Rochester and |
Buffalo, which in mortgages already in existence |
have agreed TO nav anv tax imposed We did
wa moi intp he n he
burden on the borrower. believe this feature (
of the bill applies some branches of the Brook
lyn Rapid Transit system.
The bill permits in it's form trustees and |
executors to invest in securities upon lands with
in the State in which savings banks per- |
Inltted to invest their money, the plea having |
been made that Disseminated against rail- |
way corporations in this State and against cor |
porations in other States We wished TO broaden |
the scope of investment and encourage the in !
Vestment in domestic rather than in foreign |
securities
The bill exempts building and loan assoca- |
tions from taxation on mortgages heretofore |
made of less than per cent, and also eXempts |
them from the bank stock tax.
One important new feature OF the bill says:
The words "moneyed capital and '.moneyed |
capital in the hands OF individual citizens OF this
State as used in this shall be understood TO
tion 5,219 Of the Revised Statutes of the United |
States, construed by the courts Of the United |
States.
Another important amendment says:
Unless otherwise expressly provided in the !
will or other instrument authorizing the invest |
ment Of trust funds. executors and trustees may |
invest such funds, and trust companies may In |
vest their capital in any debts or obligations |
secured by mortgage In trust upon real prom
erty In this State in which savings banks now |
are or hereafter may be expressiv autborIzad |
TO make investments. and II and long as said |
executors, trustees and trust companies respec- /
lively pay for the use OF the state regular an |
nual taxes OF five mills on each dollar of the /
principal Of said debts and obligations held by |
them under such rules and regulations as the |
at Ino 90 Erax
scribe they shall be exempt from taxation by |
counties, cities towns. villages school districts .
and other local subdivisions OF the State in
respect of such debts and obligations
BANK SHARES STILL TAXED
The act continues its provision imposing a
tax Of ! per cent of the actual value OF the
shares Of stock of all banks. banking associ-
atoms and trust companies having capital stock
and authorized to do business Within this State"
1t continues its statement:
The actual value of each share Of stock of each
bank. banking association and trust company
shalI be ascertained and fixed by the State Board |
OF Tax Commissioners OF the first Monday
of August in each year by adding together tba |
capital and surplus and Individual profits de-
Quoting therefrom the assessed value OF the real !
estate Of such bank banking association ~ go
company as shown by the last assessment roll.
The bill also says that there shall be deducted
from the assessed value of the real estate or
these corporations (this being new amend
ment, 'one-half Of the par value Of the mort
gage debts taxable for the use Of the State as
hereinafter provided in which any part of the
capital surplus undivided profits may be
invested, and which all accrued mortgage
debt taxes for the use Of the State shall have
been actually paid and by dividing the result
by the number of outstanding shares of such
bank banking association or trust company"
Still another amendment made to the bill
states:
There shall be exempt from the taxes for the
use OF the State imposed by this article obliga-
tions secured by mortgage the Commissioners
FOR loanlng certain moneys of the United States
OF the several counties of the State, mortgage
obligations owned by the United States by
this State, obligations of series secured by mort |
1900 where it appears upon the face of such |
mortgages, II the obligations thereby secured |
that the obligor has bound itself TO pay any
tax imposed which might be imposed upon
the debts obligations secured by such mort |
cages in the hands Of the owners holders /
thereof and mortgages recorded prior to Janu 5
ary !, 1900, and the obligations secured thereby
when it appears the face of such mort |
cages obligations that the rate of interest
at any time payable thereon was less than per |
cent per annum. Any right of exemption, how
ever must be claimed and established in pro- !
ceedings on appeal the State Board Of Tax | |
Commissioners. hereinafter provided. and any
right of exemption not so claimed shall be |
deemed to have been waived.
STATEMENT OF INDEBTEDNESS.
The act also contains the following important |
new provision:
Every mortgage made after the 10Th day
of June. 1900 shall contain at the end thereof |
a hove the signature of the mortgageor, Il state |
rent of the maximum amount OF principal IN |
debtedness obligation, not including interest |
taxes. assessments, water rates, insurance or |
other expenses made by the MORTGAGE to pre- !
serve the mortgage lien which is or under any