New-York tribune., 1901-03-03
MORTGAGE TAXATION.
BAILEY. OF THE TITLE GUARANTEE AMI
TRUST COMPANY. ADVOCATES THE PAS
SAGE OF THE SLATER BILL.


- discussing the question of the exemption Of
.Hsres from taxation. which has been advo-
Nv Tie Tribune. Frank Bailey. vice-2resident
= .be Title Guarantee and Trust Company. said
Yesterday
%. annual loss 10 the borrowers Of this State
IN Ih,se of the existing tax laws in far these
beau erect mortgage Indebtedness. and the
RNss cain 10 this deserving class which would re-
t1si t1, from mortgage exemption. as proposed in the
ss.or bill be shown. In the report Of the
t2eIa -eS Will be found this statement: We have
h! ~ reason 10 believe that the estimate of the
to.nsi+ Of 1898 that no more than 3 per OF
a Deersona property of the State is assessed un-
ils ss existing law Is substantially correct.
oer oerrr The purpose OF this estimate. per cent or
= t% Lt%mortgage debt is assumed 10 be the amount
now oMs4SS nv the State Controller. on Page this
goes on 20 say: 1T stated TO US by j. Har-
ssn ssnea~tngs Banks that IL mortgage. were entirely
gs1npted o from taxation the result would be a re
ehe.taar AZ the average rate of interest paid 10y
olsavrers Of al least One-half of / per cent. MI
sSssSses was confirmed in this opinion by the
Ees.york city. This means that although mort
Yes generally escape taxation the liability 10 tax
w extent Of at least one-half Of per cent II
,Ssn. we exempt mortgages from al taNauon ezo &
@ s naturally be no substantial change in the aver
We W. rate OF interest
res No 10 be and undoubtedly is correct on Page
report says er Sent Sent IN the stae and
VII Az T7ore In the city of New-York the rate
s year is 2S and IN some l9Gaies M per cena
ts NJ taxation in the State is assumed TO ee %
nsr cent which is about me euieen. rae ~
% loA Anade after most careful Investigation ana the
scncluslons therein are e,s@a e, 10 s being the
IsS5ifionai rate Of interest now paid by me DOT DOT
overs of interest would fall at least the same
me.rrt me n mortgages were exempted lot nol OH.
es the present lender accept less interest ont
volu SjlIioDs ~ dollars would then seek mortgage
tnvestuent where now they seek pioleiG & 0t ne ne
be sss le ~ 50 per cent of the assessed valuation
ess heen assumed the mortsase indeoteuless
~ s.ss state This percentage is believed 10 ne
o. tnneasTeetfrnste tne rather than an overestimate,
81 Sy of tables made up on the above basis fur
nshes TFet the total assessed valuation of real
,srate IN the State is SaO'oeoVogs; q, the
sss is RAJ Ne extra interest now paid by the
In-ars III "a lenders is Sl2. 1000
oqo~TbIs oqTnoTrbT6at the mortgages now taxed amount
s.S A2sTgs T,o, the tax collected on these mort
cages al the rate Of % per cent per a"huiH
ssToInts 10 SSl4I5 SEQ. - -, ba,.;r, the
.,s ~ interest kept up onehalf Of per cent, a.
srsinst paying the entire tax now colie'Ne" i0--'
mortgage, y sun, OF So 44e 800 would be gained by
.be borrowers in case they were coIni'e a,,eed bv
al Of the increased burden on fsat raased bur-
he exemption of mortgages rs S6e onlI the
den shown above 10 amount 20 Si,b nc oN;ners
horrowers would share, however wiz WIZ -, ,Sa Gun
- tSe free and clear property ana the oNh7
"a ne other personal proper Ae-NNN
Sc. the borrowers in this State wouIa ealI ne
o,Iv his sd 600 but also by this cohurlDuIlon o.
o.bsrs a portion Of the amount now collecteu Oh
vsorfea ces The gain, therefore 70 the ooLl1M
a-s in this state through mortgage eAenpTrlpn
cs,,o, he less than sl0.000,oN per annum' me
orao,,nt ~ Tax now collected on mortgages, now
srer vroIIld be at once recovered from lilcrfAkeu
vsluation Of real estate which would result n.sI
frorr increased valuations because OF reduced Tat @
of Interest and second from increased bu!igIns M i
and developing caused by the drift OF money mo
rortrares made free Of tax ] beheNe tnat IN
three years time the assessed NaInauois "a IN "
state would increase hv more than three times Il
snoT,. ~ the assessed valuation Of mortgages
On which The tax is collected. J. e. the State
m uruId pair I'm the real property tax HIST three
times what II has dropped from the personal prop
ertv list l., 80, an
mortgages Is tax on the lenders IS diThcult 10
nonceiye and impossible Of proof. When ever!
economist recognizes that the total exemption or
mortgages is economically right, when every ntel-
Fnt legislator knows that IL Is morally right, wnen
he greatest injustice in economic history IS helng
inflicted upon the holders Of mortgages whlch are
81 The present time taxed when the present policy
Is driving from the State every resident with
money who can move. when an attempt 10 collect
one half per cent or any tax would be confessedly
further imposition on over burdened real estate.
why should this condition continue? Why should
we not he entitled 10 intelligent legislation. so
yusnifestly for the good Of the whole state No
compromise based on wrong principles can be ac-
cepted The way to relieve the borrower is TO
relieve him, not 10 tax him more or even the same
amount In another way.