New-York tribune., 1901-03-21
MORTGAGE TAX OPPOSED.
LAWSON PURDY SAYS IT WOULD MAKE
ANDREW CARNEGIE PAY S1,50n.000
ANNUALLY.

Albany. March 2o-There was largely attended
hearing before the Senate and Assembly Commit
tee Taxation to-day the new Stranahan
Mortgage Tax bill The principal argument was
made by Lawson Purdy. secretary OF the New-York
Tax Reform Association. He said:
The stranahan bill imposes tax of one-half Of
/ per cent on all mortgages not made ny corpora
insurance companies and loan associations. and
provides elaborate and burdensome machinery for
The census of 1880 indicates that the mortgage in
trust assregates 81 @ sbo9t 6oo 600 Certainly not
more than one-half of this mortgage debt Is owned
tax '6 96erefor a9STe GxfPt N Ted at ea Exclusive
of the revenue which may be derived under Section
any bonds secured by mortgage executed by any
local taxes S!' upon ro nas such SFiG5 bonds % pc
This entire tax viii undoubtedly be paid by. the
owners Of mortgaged real estate. By reason OF the
discrimination against individual lenders they will
the tax, while exempt institutions will reap an un-
Just profit just as they do now y, ,aas +,a+ +ba
act shaH take effect june Is, Mortgsges in the
1a6 @ w 0{k w nave bif 10 aa 70 the mi rate Of
The bill grossv discriminates against individuals
and in favor of corporations. individuals must
either borrow. of exempt institutions which are
higher rates of interest they must borrow of in
70 the nVe mill tax corporations can go nto i tiiT
markets Of the world Tor money and sell thelf
The bill as il stands discrminates against trust
companies unless the tru company bill Is passed.
companies MORTGAGES owned by these corporation
are nor taxable for the State but remain subject 10
In 1880 there we're nearly six hundred thousand
thousand now ' bGpcats @ s3s fS'9S Of all 18th these mort
Monday in October, whether they are exempt or
not. All right OF exemption must be claimed by
The first year appeal must be made in the case
OF every mortgage incurred by corporation, or the
who viii have sufficient interest perfect these
appeals and if perfected the mortgages will un-
doubtedly be SeQuestrated by the courts
The act imposes heavy burden on builders who
have given MORTGAGES TO secure building loans, and
Of Of which the MAXIMUM sum has not been advanced
- heE are Obliged to make statements IN dgplicate
proper officer. If there any mortgages Of this
cages as there must be many which have been
fbeGgdced BY ~ Partial I payments it Wi will II be s6ea5
make a journey 10 the county seat or engage an
attorney to represent them
pay ms tax and allows his mortgage to be sold he
has no right of redemption. During the process of
the proceedings for the assessment and collection
ton or cerorari, and they cannot in any way re-
forcement Of the act the courts have power to
issue special search warrants. and no mans house
The anomalies and injustices of the whole system
Andrew Carnegie It is reported thai MI Carnegie
IS about TO exchange his stock representing in
terest in certain property for bonds representing
the same interest, The, stock may pay large div!-
dends and is n-taXable, and the bonds furnish
BILE II is said that Mr.. Carnegie is to receive
it will cost him nearly $1,000 600 have his legal
residence in the city of NewYork. If you pass this
bill. he have his legal residence in the city of
NewYork for Sl500000 annually If he is not will
ing to pay so much for the honor. he can have a
legal residence in Pitsburg for H20oCA0 year. II
he is fond enough of the State of New-York TO
prefer to remain legal resident of State the
cheapest plan tor him pursue would be to ma Ike
his legal residence in the town OF Hope. in Hamil-
ton County, fine hunting country the Adiron-
dacks He can have his legal residence in Hope by
voting there and living there about much as
Mr. Platt lives in Owego and It will cost him not
exceed so, 1o3 40 for that is the total tax OF the
town of Hope ard the County Of Hamilton.
If Mr.. Carnegie objects to paying taxes on debts
a matter of principle remain an American
citizen and have his legal residence in Boise city
Idaho, without paying dollar for his bonds All
honor 10 Idaho which taxes the substance not the
shadow, which has abolished the attempt 10 tax