New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-02-01
SAVINGS BANKS AIMING.
SAVAGE ATTACK TO BE MADE ON THE BILL
TAXING MORTGAGES.

Albany, Jan. 81 (SpeclaD.-The members of the
Joint Committee Taxation of the Legislature
are preparing to defend their Taxation act taxing
mortgages and trust companies. foreseeing savage
attack the bill from the representatives of the
savings banks and the insurance companies OF the
State. They anticipate that the savings banks
especially viii protest against the taxation of
mortgages and contest that feature of the bill A
good many of the savings banks already appear TO
have taken steps TO offer opposition TO the bill
Senator Stranahan and Assembyman Aids who
are members Of the Joint Committee on Taxation.
united in making the following statement tonight
about the attitude of the savings banks and their
opinions on other objections which had been made
to the bill:
The Joint Committee on Taxation is satisfied that
the savings banks are by means unanimously
opposed TO the Taxation bill It's members have al
Of persons, including the officials of savings banks
urging the passage of the bill It is the belief of
the chairman of the committee Senator Stranahan)
that shouId the proposition TO tax mortgages fail,
ing savings bank deposits direct There is such
OH now before the Legislature, and it TO
duced by Mr. Treat, of Cayuga County, and he will
tee fail to pasg te ei PTepareo ny this commit
1t is fact that Network is the only State in
ne Union that does not tax savings banks, and
the exemption of such institutions has resulted in
Lhe "lthdrawaI from bond and mortgage invest
ton and TO their deposit in savings banks where
crease in danosite Ij,c 7 ~! iLIs enormous IN
We shall demonstrate before the Committee that
this tax Of one-half of per cent could be paid by
the savings banks without reducing the rate Of in
terest TO deposltors. This done from the
oIIlcIal reports Another significant fact that has
Impressed the committee while this discussion has
Deen going on is that the whole argument against
the Dill comes from the lender The anxiety for
the welfare or the borrower shown by the lenders
Is hardly reconcilable with the contention of the
lender that the borrower is bound to pay the tax.
IA considering the contention of REPRESENTATIVES
OF insurance companies and savings banks that the
borrower would pay the tax, and that hence
proposed law would increase the burdens of real
estate IL should be remembered that the mortgages
held by these institutions now exempt from all
taxation. and their interest in opposing the bill is
therefore apparent. Let take some man whose
mortgages are not now exempt. A fair example
would be Mr.. Kelsey, the president OF the Title
Guarantee and Trust Company, OF New-York,
which company Is probably the largest Ioaner on
bond and mortgage in this State, outside Of the
class above mentioned. Mr.. Kelsey has stated in q
public interview that the liability to local taxation
OF mortgages at the rate OF 212 per under the
present law results in raising the rate of
interest thereon than one-half l per cent,
and that therefore the law, levying only
half OF l per cent on mortgages would not in
crease the rate. On the other hand, the proposed
change in the taxation OF mortgages would relieve
real estate in all the counties the State of tax
for State purposes that now amounts TO SIS 000C COO
The first hearing on the mortgage taxation act
will be given by the Committees Taxation of the
Assembly and Senate ar joint hearing Feb
ruary I AT O'Clock in the afternoon The oppo-
nents of the bill will then have hearing.