The Plymouth tribune. (Plymouth, Ind.) 1901-1911, 1901-12-26
MORTGAGE DEDUCTION LAW
Argument in its Support by Attorney
General Taylor.


The brief fled in the supreme court
by Attorney General Taylor in defense
of the Indiana law for the deduction
Of mortgages from the tax assessment
is scholarly and powerful argument
in behalf of mortgagors. He demon
StrateS that the deduction provided
for in the law is in no sense an exemp-
ton: and, further, that the state may
tax the value of a mortgage, or any
part thereof, to the mortgage and
the remaining interest in the land to
the mOrtgagor. He contends that a
tax law is not unconstitutional merely
because it lacks somewhat of uniform
Iity in operation, because perfect
equality of taxation is an unattain-
able thing and to insist upon it woul d
defeat all taxation. The brief Is con-
cluded as follows:
For fifty years in Indiana, pursuant
to statute, ten of millions of dollars
of credit have, pursuant to law,
escaped taxation, because the owners
thereof were burdened with debts.
The chief of the bureau of statistics
has furnished us with the total of de-
auctions obtained for the year 1900
throughout the state on account Of
Indebtedness, and all from personal
credits. These deductions cover the
entire state, except six counties, and
aggregate S37 .665, 1882. With the
additional counties to be heard from.
we may assume that forty millions of
dollars of deductions will be claimed
and allowed from credits alone for
1901 in Indiana.
The deductions on account of mort
gage Indebtedness for the year 1900
aggregated over thirty-five million
dollars. The amount claimed for the
year 1901 will approximate forty mil
lion dollars. So that the total of de-
auctions on account of credits practi-
cally equals the total OF deductions
that will be claimed on account Of
mortgage Indebtedness. Here are
eighty millions of dollars Of deductions
that we assert must rise or fall togeth-
er. We can conceive Of no principle
of law that will relieve one dollar of
credits on account of Indebtedness
that will not at the same time relieve
the assessed value of the real estate
on account of the mortgage indebted
ness.
1t is partial abatement of double
taxation. The deduction on account
of mortgage Indebtedness does not re-
lieve the property from taxation; on
the contrary it relieves the tax payers
from double taxation.
We have locked in vain for single
this country that declares different
doctrine Whenever the value of the
mortgage security is taxed, just
valuation woull relieve the mortgaged
property to the extent of the assess
ment on said mortgage security.
This is the positive statue of some of
the states, as above quoted.
On what principle of law can the
holder of mortgage on lots or lands
be entitled to deduction from such
mortgage security. because the holder
thereof is indebted to some third per-
son, while he who owns the lot or
land upon which such mortgage secur-
ity is based is denied the right to de-
duct his Indebtedness from the very
lot or land that furnishes the basis of
such mortgage security? Why should
the lot owner be denied the right of
deduction from his lot, when the note
owner who holds mortgage upon such
lot is granted the privilege of deduct
ing all of his Indebtedness from the
value of such note? No substantial
reason can be given.
If the Indiana mortgage deduction
law is stricken down the mandate of
the constitution will not be complied
with which commands that 'sjuSt
valuation of all property shall be had. -
Nor will such mandate be obeved if
the los owner is denied the right that
is granted to the note owner. As
long as governments are maintained
and civil liberty prevails among men
taxes will be imposed. We cannot
expect these tax laws to be be perfect.
the legislature and the Legislature
alone can correct the evils that expert
ence make manifest.
The tax system is the most perfect
! which most nearly casts upon every
( citizen of the state his fair share OF
, the public burdens.
Rural Route Growth.
The last official report concerning
e the growth of rural free mail delivery
0 is most encouraging. This method oil