Durango semi-weekly herald., 1901-02-14
EASTERN CAPITAL READY
TO WITHDRAW
Brokers Notified to Make No New
Loans and to Extend No More
Mortgages.
Denver Republican, }

Denver Republican,
If the Montgomery revenue bill
now pending in the legislature should
become law it will have disastrous
effect upon realty investments in Den
yer. Last week copies of the pro-
posed measure were sent to eastern
capitalists who carry loans on Denver
real estate and as a result Denver
brokers have been notified to make
no more loans and not to renew mort
cages when they are due.
The provision which has led to this
summary action by eastern money
lenders is in respect to the listing OF
loans for the purpose of taxation. The
bill provides that all loans shall be
listed by the holders and that in case
of failure, the state may take steps
to confiscate the property on which
the loans are made. In bringing to
light mortgages and loans of various
character the bill provides that any
person may be summoned and requir.
ed to testify regarding the transac-
tion. This is considered by invest
ors as ieoparding their interests al
lloSl " lht ldSl utSltt. dS II Wouie
place investments practically at the
mercy of the state.
Taxes Objected To.
Another feature of the bill which
capitalists oppose is the high rate OF
taxation fixed and the charges on
transactions incident to loaning
money. Under the bill a state fee
nf 10 10 hD oh for.
at law filed in the state. excepting
those within the jurisdiction of the
magistrates courts, and fee of so
cents in addition to the regular re-
cording charges, for every document
filed for record These extra state
chages would fall upon the investor
as it could not be expected that they
would be borne either by the borrower
or the agent
The provisions for taxing bank
loans also is opposed by real estate
agents. The proposed law provides
that instead of taking the amount on
deposit in bank upon given date
that the average amount of deposits
for the year be taken as a mean, upon
which to fix the taxes. The clause
also provides for the taxation of all
mounts standing to the credit of the
bank depositor whether the funds be
held for others for Investment or
merely in trust. Under this clause
4 broker would have to pay taxes on
his clients money received from the
sale of property or in his hands to
be invested. While the tax would
be chargeable to the broker, it
would ultimately fall upon the inves-
tor and tend to make the fixed charges
upon capital in this state so high as
to practically make the loaning OF
eastern money in Colorado out of the
question.
Eastern Money Needed.
Large amounts of eastern money are
invested in Denver realty, much of it
In mortgages, and the calling in OF
these would have depressing effect
en- business. The withdrawal of the
eastern money would practically re-
suit in stringency which could not be
overcome, at least by the small mort
cages whose failure to renew loans
upon their homes would result in the
'oss of their property.
The seriousness of the situation
from the real estate mems point of
view probably would not have been
realized in time to do any good had
i not been for the recent reorganiza-
tion of the local exchange. At one
of the very first meetings the revenue
bill was brought to the attention of
the brokers, and a copy obtained for
each member. During the last two
weeks the bill has been carefully read
and the impending passage of the
measure has aroused the brokers to
the protection of their inteests.
A public meeting of the exchange has
been called for this evening, at which
the obnoxious provisions of the bill
VIII be discussed and an organized eff.
Tort made to secure its defeat.