Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1902-10-08

| again be a candidate for United States
| to little spell of honest taxpaying just
| like his neighbor and no back talk"
about it at all, either from him or from
anyone for him.
| 1t is the man who owns the mortgage
premises, who has been paying double
! taxes" through al the years that he has
/ carried the mortgage for whom | de-
mand. not sympathy, but justice. He
| has paid his interest at 10 per cent, then
| at 8, getting 1t down slowly-not when
| or because the owner of the mortgage
! lodged his tax-but getting it lowered
! because, and only because, the great COM
| mercial influences of the country, acting
| upon the money market from the worlds
! centers of trade, finally forced the rate
| down, securing to him, not as a conces-
sion. but too frequently as a somewhat
/ On top of all this interest throughout the
| long struggle this man has paid full taxes
on the moTtgaged premises just the same
1 as though he owned the entire interest
! in the land free and clear from all en-
| cumbrance.
| He should have been relieved of this
| before. He should bear this no longer.
| He demands a law that shall take off
! from his assessed valuation the amount
! of the mortgage and assess it against the
man who owns the mortgage. SUch a
| law would end double taxation" Such
o law | am in favor of and advocated
/ long before this campaign.
The California Rule Recommended In
Message to Legislature.
Snch a law would have been enacted
! and the man with a mortgage on his
| real estate would have been released
| from double taxation" if the last Legis-
! Iature had followed the recommendation
/ made in the first message which l had
| the honor as governor to submit to that
! body. In that message l called atten-
| ton to the fact that California had years
! before adopted a constitutional provision
! that real estate mortgages shall be as
| sesssed to the owner OF the mortgage and
| fine assessed value of the real estate re-
! gage: that Missouri after investigation
| had adopted q similar constitutional
! amendment; that the claim made that
! the California law had increased the in
| terest rate in that state was answered
| bv the census report, which shows that
| the interest rate in California is lower
| than In the adjoining states where they
| have no such law. ! said further to the
| Legislature:
'Whatever may be the exact fact as
| TO the effect on interest rate as between
| the borrower and lender, the principle Is
| to be commended, because it taxes each
| man il silly ON the record. The mort
! gaeor HIS, TO the extent of the mortgage,
| parted with an interest in the real es-
| tate. The mortgage has acquired that
| interest, and each is taxed only upon
| his propc rtionate share. There is an
| other aspect of the case worthy atten-
| tion. my law which secures q correct
! return of property by the assessor is
! to be commended. 1t is a distinct gain
for honesty, and lodges in the public
/ L. II. g.. -
| law. The individual possessor of wealth
and the corporation of large capital en-
! gagged in evading and violating the tax
| laws are doing much to beget a disre-
| gard and want of respect for all law,
| and to excuse violation of its letter and
| spirit with all classes"
Favors Reducing Assessment of Mort
gagged Real Estate.
l favored then and favor now the
! taxation of mortgages against the owner
OF the mortgage and an amendment to
| the law which shalt require the assessor
| to deduct from the assessed valuation Of
| the mortgaged real estate the amount of
| the mortgage, asset ing the owner of the
| real estate only for the remainder of Its
| value; that Is, for the value of his equity
| and no more. This seems to me to be Just
| to the owner Of the mortgage for he has
| acquired an interest in the real estate
| and should surely be taxed on the amount
| of his mortgage. 1t is just to the real
estate owner, for he Is no longer 'doubly
| taxed" but is taxed for his single indi-
vidual interest in the land and not for the
| interest which he has conveyed to the
| holder of the mortgage.
1t is a disputed question az 10 whether
| this would result in an increase In the
| rates Of interest and. If so, whether that
| increase would amount to enough to cover
| the tax unon the mortgage or not. In
| f1aliPaFnio piniro - ,ylada that n haE
| increased the interest rate. Another
clgim is made that it has not incr dsed
| the interest rate directly, but that a
| commission is charged the borrower
equal to the amount Of the tax upon the
| mortgage. Another claim is made that
neither commissions nor interest rates
have increased under this constitutional
amendment. And it is a fact that so
| well satisfied are the people with its OPP
Grafton that they twice voted down and
defeated a proposition to repeal this con-
| stitutional provision. But this question
| OF interest is one which should be left TO
adjust itself between the borrower and
lender without further interference from
| the state, other thsr TO designate max
| imum rate above which interest charges
would be deemed usurious and Illegal
IF, however. IL he conceded tHat the
| taxation of all mortgages-by the better
| enforcement of the law where only a
| portion Of them were taxed before
should operate to increase the interest
rate to the full amount Of the tax, the
borrower would then be in precisely the
same situation as he has been for the
past generation Of time and no worse.
| He has always been taxed, not only Tor
his own interest IN the land, but for the
| interest which the mortgage has in It.
| Il Is contended that this keeps his in
| terest rate lower because the mortgage
swner can afford to ''knOck Off some
interest, since he escapes paying the
/ taxes on his mortgage by c0neealing il
| when the assessor comes around. But il
/ the borrowers interest rate is lowered by
| this Juggling process az all-which Is
very unceFtain-it is more than taken out
| Of him when he pays the taxes on both
| his own and the mortgage owners inter
| est in his land.
One thing seems to me beyond cOntro-
versy even 10 this campaign. and that Is
| this; That the owner OF m0Ftgaged real
j estate should be asse ssed and taxed only