New-York tribune., 1902-01-02
GOTERNOR ODELHS MESSAGE.

INO SuDJeclS Qcalt WITH ny Governor Odoll IN
his annual message to the legislature are likely
above all the others to attract public attention
and awaken controversy. The one relates to
the taxation Of mortgages; the other TO the con-
troll of State institutions
For two years a persistent effort has been
made by the majority leaders in the legs-
lature TO impose annual tax of five mills
on mortgages. This measure has been yigor-
ously opposed for several reasons. 1t meant
double taxation. 1t would impose on the
landholder who was in debt a larger
burden than the one who was able to
pay the full purchase price of his home or farm.
In its original form the measure proposed to
tax all mortgages, but to SurmOunt opposition it
was changed 10 favor corporate as against in
dividual lending. and to exempt the bonds and
mortgages issued by railroads. thereby giving
them a better chance 10 borrow than private
persons enjoy. This eXaggeration of the origi.
nal injustice of the plan was enough to kill it if
nothing else could. and it was hoped that after
two defeats attempt would be made to re-
vive it. The pressure for the increase of State
revenues by Indirect means. however, continues
The notorious inequality of the existing tax law
as it affects personal property in mortgages
passing by many and halving the income from
few, likewise prompts legislation on the sub
exemption of mortgages entirely. thereby at
tracing money for investment here and lower
ing the rate of interest TO the people But so
strong is the prejudice. especially among rural
landowners who would be most benefited by
the change, that there is no immediate prospect
of such relief. Therefore the Governors pro-
posal of a compromise is most interesting
He suggests the imposition of a 'reCistration'
tax of mills once for all on the recording of
a mortgage, instead of the imposition of an an
nual tax at the same rate. Each mortgage
would pay only one tax during its life and be
free from all the local taxes TO which ii is now
subject in law, but which 1t rarely pays in fact
The Governor estimates that there 5000
100000 Of mortgages recorded annually in the
State, and that S3.000000 could be raised from
Them which, with contemplated economies.
would bring the revenues from indirect taxation
up TO the requirements of the State. The wis
dom of entirely freeing the State administra-
tiOn from accountability TO the people through
the general tax levy Is not wholly clear
Even if it is wise the continued adequacy of
this registration tax is problematic. If the eSti-
mate of the Joint Tax Commission of two
years ago that there were $4,000, 600 900 of
mortgages In the State, including corporate
mortgages for the issue of bonds was correct,
the Governors figures mean that 80 per cent of
the mortgages are made new every year. Then
only One-tenth of them run more than three
years. which would be remarkable in view of the
number of long term bonds known to be in exist
ence. Moreover, even if this estimate is accu-
rate. there may be reason to think that the OK
pected revenue might be progressively reduced
by lengthening the terms of mortgages Never
theless, the Governors plan is certainly the best
yet brought forward for the taxation of mort
cages in any form, provided 1t is made TO in
clude all mortgages, whether issued TO saw
ings banks or individuals. and whether made
as security for private loans or corporate bonds.
With regard to the State reformatories chari-
table institutions and hospitals, the Governor
makes the radical recommendation that the
various boards Of managers be abolished and
that their control be centralized under the State
Commission in Lunacy and the State Board of
Charities, subject to inspection by annually ap-
pointed boards of visitors This is a step in the
direction of simplicity and economy which
invites favorable consideration. Several States,
notably Iowa, under the leadership of Gov
ernOr Shaw, have achieved excellent results
along this line. Local boards of managers too
frequently pay small attention to their duties
when they active their power to ad-
vance local interests without regard to the gen
/
has large executive powers, and is fitted by it's
organization for even more active management
of the institutions under its supervision In the
case of the State Board of Charities the stua-
tion is somewhat different. 1t is a larger body
of unsalaried persons, who are accustomed to
inspect and even take hand in the manage
ment of Institutions without assuming direct
and continuous responsibility for results 1t is
in a sense an amateur body. and the necessity
for doing professional executive work every day
and all day would probably result in a change
OF its character, the men who afford to give
some time for nothing 10 the State making way
for those who would work all the time for a
salary Such a change involves important ques-
tions of State policy which will doubtless be
fully considered when the subject is discussed
in the legislature There can he no doubt, how
ever, that the end sought by the Governor is
most desirable
Other recommendations also challenge at
tention. The Governor rightly thinks that
the canal policy should be settled that
scientific forestry should he introduced in
the Adirondacks; that local expenditures
shoHld be regulated; that criminal appeals
should be expedited: that New-York corpora
tions should he encouraged and foreign corpora
tions taxed for the privileges they enjoy here
All these subjects are treated with an original
force, directness and buslnesslike tone which
must he highly satisfactory TO the people. The
Governors advice is uniformly in the direction
of economy and improved system of a,lministra-
tion. For the most part il will meet with mi
versal agreement Even those who NAV dis
agree with him on particular measures will adj
mire the straightforward frankness of his dis
cussions. accompanied as they are by the char