Mexico weekly ledger., 1901-01-03
TIE THIRD AKExDKExr
Tbs 0utiook Knfiiles Il q yut Tax
Law and Goes Ints Dstzih

N4lfA ne fo4t0NlR interesting zrAe
On the Third C0ngritzthEzi Anau6-
zsnl jsst uss6 b The STATE.
The mzzf izprtzHf ueasgrs Etp
mittsd % the voters II any state AZ
ths FsoeBt esectiou Ezs the azeDd-
neut b. TIE C1usgitufkn q Nissugr
FrUdinz that tbe tzTx Epo1 m0rt-
zzsd property 21l hereafter BE-
diri1ed betEeen the h5iser q Tx.
VrFerrg and The bo3sF q the zort-
zgE At TIE pnessnt tine ia Ms
s0gn a 30 D1st other states The
hadsr q seh property has % pay
taTa upn It's entire zf1s, % natter
hgN snail his interest and there i a
prstsns q taxing also the boa3eg q
the mgrtzze-ttat 4 pf0rt5ed be
EsfuIBs Il for taKztIon For ezIpE
e a farm worth $500 zrda a Fort
gaze - s4610, The farmer Is tzIef
upou The enilre E7l8e-tb01gh his
interest "a TIE property Is OEly Egnl
-ald there Is a pretenS q TAXING
the m1ogI3n3er also Hpoa the 8.eol
represented W his moytgzze Were
this last FrzfeaS a reality-zs il il ln
s1Ene cz@s-it would Involve TIE IN
justice q Gouble tzKztI0n- Thel
zE1gunt . property i % greater Be-
cause tE9 men 0En the farm than III
Il bebngai t. only one. There 81
Just 5000 worth q property involved
u which TIE farmer SEns tEo-ffthz
and the m~o1eylender tbreeffthA
The Mhss0zn Constitutional Amend-
meat recognizes this fact. and pu+
uda thai each party should here
after Be taxed only upon ths value d
his interest 10 the property. The
total assessment IN the case given was
10 be f0r 5ls5 worth q property and
not for 5000 worth, the m0ney-
lender being taxed upon the value Of
his m0rEge ard The farmer upon
the value u the farm leS the mOr-I
gage As each vas Clearly taxed upon
the entire value q the property be
owned there Eas nothing t. be zd
against the justice Of the provision.
and as Il really required the lender 10
py his share Of the tar zithOut the
possibility q evasion the amendment
vas adopted ~ an overwhelmingly
r-aHrHrHm L. 81 wmu@zT lHrNna~am L
where lenders are relatively few, the
vote was almost solidly in its favor
There is some uncertainty as tO
whether the Constitutional Amend
meat viii require additional legisls
ton b. carry il into effect and
effort is being made In the
press 70 discredit the amend
meut and TO represent that il viii
not furnish the expected relief 20 the
owners u m9ftgaged farms and bones
but On the contrary. will iBcrease
their burdens. That IL may not fur
nlsh the expected relief is true. 80 far
as any enc expects that the rate Of
Interest upon future mortgages will
not be increased By reason 81 the tax
But the claim that the rate q inter
est will greatly increase Is invalid. The
same system that has Just been adopt !
ed for Missouri has been ia force In
since ISIS, and the rate Of (
Interest On mortgages in California Is Z
as low as IN any d the neighbonng
The census Of 1880 shows the
following as the average rates paid:
California $50 per cent
Colorado. ........ 9.2 "
Oregon. 9.e3 " I
In California the lender pays the !
On the mortgage; in the other
the borrower pays it. The
average nat 81 taxation in California !
sas a little oyer one per cent On the
true valuation. Yet the rate Of inter-
ST in California, instead Of being one ;
per cent. higher than in the neighbor- !
ing states, was actually lower. This !
sas doubtless chiefly due to the great
wealth Of the state; but there is no /
reason 10 think that il the tax On the |
Of mortgages in California were
again allowed to fall upon the owner l
4 the mortgaged property, the rzte 9
Interest would fan an equalamOUnt.
The system Of taxing m0rtgaged prop-l
srty once and only once, and dividing :
he tax equitably between lender and /.
borrower, does afford some relief To- !
he b0rr0Wer-thOugh its amount may :
sasily be exaggerated. Quite apart !
this gain, however, is the gain :
'Or public justice and the gain for :
honesty. 1t is a great gain foT !
justice to have each citizen ;
.axed only On the amount Of property /
possesses. II Is a still greaterl /
gain for public honesty to have a tax :
which does not put a premium :
lpOn dishonesty by taxing honest !
DoDey-lenders, while permitting dis-
lonest ones to evade their taxes byI
Under the California and
Missouri systems no one need be asked
. make any return Of the mortgages z
holds His property is taxed where :
{ is invested, and this is the only |
place IN which ii ought 70 be taxed. c
u this principle were everywhere ap- |
llied 10 the taxation Of mortgages {
10 the taxation Of corporate SCI
'urities, the evils Of tax : dOdgng !
sould practically be done away with. q
The reform IS one that should enlist 8
be support Of all who are concerned q
or the honor Of the business CON- :
nunity, az well az those concerned forI
he material relief Of the MORTGAGE
,urdened classes.