The Holt County sentinel., 1900-11-02
Taxation of Mortgages.

16XAtlOn OF mortgages.
EDITORS SENTINEL: have bern
asked frequently for my views concern
ing the effect of the proposed constitu-
tional amendment, relative to making
Mortgages or Trust Deeds taxable as a
part of the real estate securing the loan,
and will ask you to allow me to express
the same through the columns of your
paper, and by so doing save me the time
of making a personal reply to each in
dividual enquiry. shall vote against
this proposition for the following rea-
sons:.
FIRST. The object sought, to tax loans,
can be reached directly, by simple
statutory enactment.
Second. The statute of this state rela-
tive to the assessment Of personal prop
erty is that it is taxable in the domicile
of the owner, (R S, 1899, Sec. 9l2l) and
this proposed amendment making it
taxable where situate, and not in the
domicile will create endless confusion.
For example A, living in this county
makes loan on the farm of ''B" in
Atchison county, the tax on the loan
would be paid in Atchison county to this
county's loss.
Third. by this constitutional amend
ment it is sought to equalize taxes on
lands morlgaged, and in this way to
ber eft the farmer. This result will not
be obtained, but on the contrary direct
ly the opposite, the farmer will be com
PEELED to pay an interest rate above the
now current rate, equal to the tax. This
is not mere guess work, as l have it
authoril atively from representatives of
loan companies, and as further evil
dence of this fact, an examination of the
record of loans made in this county will
show that one money loaner of this
county has Incorporated into, and made
part Of all his mortgages contract,
binding the borrower to pay all taxes
contemplated by this amendment, in all
loans made by him since the passage of
the resolution proposing its submission
to the people. At this time, any farmer
in this county having desirable land
can get all the money he wants at 51a
per cent interest, or at 3 per cent upon
payment of a small cash commission.
The immediate result of the adoption of
this amendment would he that the in
terest rate would be advanced from so
to 81 or seven per cent, on all outside
money.
Another result might be that all for
eign or outside capital might be with
drawn, in which case, the rate would be
at once advanced by home capitalists to
the legal limit of eight per cent, and this
rate would have to be paid, for while
may be enacted fixing rates of
interest. none cap bs enacted compelling
any individual or corporation to loan
at an unsatisfactory rate, or under any
not satisfactory to the lender.
Fourth. In towns, for example, like
Oregon or Mound City, which have voted
bonds for waterworks, electric lights, |
erection of school houses or other pub |
lie improvement, the taxing of the money |
without the corporation, that is by max |
ing all farm loans taxable at the location |
Of the farm, instead of in the domicile |
p hn hnt
city, would so decrease the taxable
wealth of such city that it would be i'm
possible to meet the obligations and in
other towns. as well as those having a
bonded debt, it would be found that |
schools of the present grade could not be
with rate of taxation with
in the present constitutional limit.
The taxation of all home capital, and
all capital over which the State of Mis-
souri, by its laws, has jurisdiction, can
De accomplished by reasonable statutory
properly enforced, and in
ny judgement any attempt to acquire
or unreasonable jurisdiction
over the money sent here for investment
1t low rates of interest, by corporations
,r individuals, will result in it's with
travail, or the raising of the rate suifi-
:ient for its protection, either Of which
;auses, would result disastrously to the
armer, or other borrower or user of such
,apital. W. ii. RICHARDS.