New-York tribune., 1901-04-06
T3YING EDTCiTTOE

The proposed measure to levy n State tax
upon mortgages is not less remarkable for the
class Of mortgages which il does levy upon
than for the enormous exemptions which ii per-
mits. Much attention has already been be
slowed on the exemptions, which aggregate pos
sibly three-fourths of the total Of mortgage Sc
curtieS in the State. including they do all
bonded debts Of corporati tions and all mortgages
held by any bank. savings bank. trust com
pany. title guarantee company, insurance COM
pany. fidelity and casualty company or building
and loan association. These exemptions have
been widely denounced even by those who do
not seriously object to a mortgage tax in itself.
as unjust. diScrmna ting against individual IN
favor OF corporate borrowers. and calculated
TO give monopoly If loaning to moneyed in
stitutiOns. Less notice has been taken Of fail
ures 10 exempt which are likely 10 work So
rious injury to public interests.
The bill is drawn as 10 tax the endOw-
ments Of colleges. hospitals and other charitable
institutions, far as they may be invested in
mortgages on New York real estate These in
stitutions are doing public work. and the States
policy has ever been TO free them from burdens.
New York maintains State university like
those Michigan and Wisconsin spend large
sums for annually, but has left to private en-
terprise and philanthropy the work of higher
education. Having done this. it owes a moral
obligation to those who have undertaken this
duty not TO put obstacles in their way or de
plete the funds which private generosity has de-
voted TO public work. A tax on the mortgages
of the colleges. however. is nothing less than
diversion 10 the State of the capitalization of
the tax A tax of 81 600 on the mortgages of
an institution is like cutting off 100000 from
its permanent endOwments thereby decreasing
by so much its ability 10 employ teachers or
give free scholarships.
Detailed Information from two institutions in
this State shows that such a tax would be n
real hardship. st. Lawrence University has
about 100000 invested in New York mort
cages. and would he taxed by the Stranahan
hin nearly $1,000 n year. The University Of
Rochester has S410.S95 so invested. and would
nav 50 O54. Some institutions, notably Cornell,
have their funds largely invested in the West,
but all OF them to a greater or less degree
would be crippled. Two thousand dollars may
seem small amount. 1t is TO the State, which.
while levying n tax college endowments. is
able TO exempt a billion dollars Of mortgages
issued by money making corporations, and
probably another half billion held by banks and
other corporate money lenders. 1t is not how
ever. small 10 the colleges, hospitals and SINH
lar institutions They need every cent Of their
incomes. They are not run for profit, and they
extend their benefcent activities 10 the limit of
their resources A tax cutting off n few
thousands from their incomes means not merely
a check on progress. but positive retrogression
and curtailment of work begun on the basis Of
unimpaired endowments.
In the end doubtless. the borrower pays the
tax. and after n time the colleges would be
able 10 call in their mortgages and refnvest If
they could not do this. then the tax on them
would be permanent bun1en on education. So
far as they can do 1t speedily, the tax merely