New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-02-28
THE STRANAHAN BILL AND RURAL TAXES.

/ y.
Some of the members of the legislature who
| oppose Senator Stranahan's mortgage tax BILL
which has been advanced to third reading in
the Senate are much concerned lest the amount
| of personal taxes collected in their localities
should be seriously decreased and larger bur-
den OF real estate taxation thrown upon the
! farmers. When, however, they stop to con-
slider the character of personal taxation in this
! State, they will, think, change their opin-
| ion and conclude that Mr.. Stranahan's measure
! while equaliZing taxes and doing an act of long
! delayed justice, will not cut off local revenues
! Indirectly 1t would relieve the rural taxpayers
| by tending to reduce their interest charges.
| They the chief sufferers from mortgage
taxation under the present method. A larger
proportion of rural than city mortgages are
taxed. OF course, only a small proportion of
the former ever get on the assessment book
but enough of them are hit to make private
lenders wary Of farm mortgages in their own
neighborhoods. Instead, they put their money
into savings banks and securities not easily
found by the taxgatherer, and the farmer finds
difficulty in getting accommodation. The saw
ings banks so strictly limited by law as to
the amount of their loans that many farmers
with perfectly good security have difficulty in
getting what they need. When they do they
have to pay per cent for accommodation that
would cost owners of city real estate
from to 5 per cent. What they save in taxes
by having a few mortgages taxed, they more
than lose in the high rate they pay money lend
ers, who thus insure themselves on all mort
cages against having a few taxed at an exces-
siye rate.
Most taxpayers, however, are slow TO see in
direct benefits. What appears to them is the
direct result of the proposed measure on their
taxes, and it is that direct result that we wish
to consider The great body OF mortgages
country as well as city, now escape taxation
In fact. only two classes of mortgages are
taxed-those held by widows and orphans and
those owned by comparatively wealthy men,
who are almost invariably taxed for only n
small proportion Of the personally which they
really own. Not even the most selfish of men
would wish TO continue taxing the small in
Festments or the former class when the SINH
lar holdings Of the great majority of their
neighbors escape. Even If the assessment roll
was reduced somewhat by the act of Justice.
their burdens should be equalized As TO the
other class, the Stranahan bill would not re-
duce their personal assessment to any appreci
able extent To assessors who had any zeal and
Intelligence whatever they would almost with
out exception, be compelled 10 confess that. in
spite of the mortgages exempted from local as
sessment, they were worth In taxable personal
ty as much as they were assessed for before.
The persons now subjected 10 personal tax who
could plead that they had not in household
furniture, farm stock, notes, foreign bonds and
money In bank as much property as they had
before confessed to the assessors would be few
indeed. The Stranahan bill would probably
leave as much personally on the rural tax