New-York tribune., 1901-02-14
there never a more resolute maintainer of
them than Queen Victoria.
II DISGRAcEFUL INJUSTICE"


Governor Odell pointed the way 10 one of the
most imperativeIy needed Of tax reforms when.
! in answer 10 one of the remarks of the trust
company representatives he said: ut is dis
I graceful injustice TO every defenceless child
/ that the present Mortgage Tax law should be
lin force" and added that he hoped the present
session of the Legislature would abolish that
tax. We believe that Mr. Seymour in the As
/ sembly and Mr. Slater in the Senate have in
troduced bills in line with the Governors view.
| They are not less important than the bills i'm
posing taxes for State purposes. Laws
might be passed providing State revenues and
leaving the general property tax entirely for
| local purposes without doing anything effec-
tive to secure equitable taxation. That can
| only be secured by abolition of taxes, like that
on mortgages, which operate oppressively and
unequally.
in theory to-day every mortgage is taxed at
the local rate, in the neghbOrhOod of from 2 TO
| Z per cent. In reality only a few mortgages
are taxed in the hands of trust companies or
| other trustees for estates. This is obvious from
the fact that in this State mortgages are plenti
full bearing from 4 10 per cent interest. II
they were generally taxed half of the income
would he eaten up and the investments would
net from 10 per cent. a rate which would
make mortgages impossible of negotiation when
eludllA safe ana more convenient ana more
negotiable investments yielding a larger return
are 10 be found. As for the greater number of
mortgages the law is dead letter That fact
makes it an iniquity in the isolated instances
where il is enforced. 4 business man or a rich
farmer may hold dozen mortgages and pay
taxes on none of them. But let a widow have
few thousand dollars secured to enable
her 10 live comfortably in her old age. and the
assessors will hunt her up. ask where her money
is and cut her income in two. If trust COM
pany has the property Of some children in Gus
tody that will he taxed, while larger properties
similarly invested in other hands go free year
after year. Mr.. Bailey at the Trust Company
Tax bill hearing on Tuesday told of typical
tax of this sort:
We have one estate of $4,000 that was as
sessed on January last at 212 per cent, and.
as II is invested in mortgages at 4l2 per cent II
leaves only $500 to take care of the children.
There are two alternatives left 10 us-calling in
the mortgages and investing the money in per
cent bonds or rcsiening trustees and have
some one in New-Jersey appointed to act for
the estate which we are prepared to do And
for every cent taxed on mortgages New-Jersey
is ready TO take off cent 10 get just such
people TO move over TO her shores. The very life
Of the cities s being sapped out by this tax, and
real estate is being ruined 1t is vitality affect
ing the whole State. II this tax is going he
put on trust companies, as believe IT should be.
this bll should be accompanied by legislation 70
this inquity. amended that trust fund
mortgages may be exempt from taxation.
Some of the Assemblymen did not seem 10
he aware that such conditions existed, and
were surprised NJ this statement. We have no
doubt il is literally true and can he matched by
trustees in every part Of the State. The tax is
iniuring the people Under pretence Of relieving
real estate It makes borrowing on real estate
less easy and more expensive, for while few
mortgages are taxed the certainty that some
are and the possibility that all may he keeps
the interest rate on all higher than it would he
If such loans were exempt.