Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1902-06-26
Whitehead.
Veto of Frost Bill Relating to Mortgages.

From Voters Hand Book.
''The Boilers League has two fatty
contradictory statements which 1T
makes respecting this veto:
First: TO bankers, brokers, and
mOney-lOanerS they declare that the
governor vetoed bill which would
have exempted mortgages from taxa
tiOn altogether.
Second: TO those who borrow
money or who are in sympathy with
the borrower, they say that the COVER
nor vetoed a bill which would have
taxed all mortgages.
The best answer to these falSehOodS
is the message itself, which we print
entire:
"State Of Wisconsin, Executive Office,
Madison, Wis, May 13, 1901.
To the Honorable, the Assembly:
Il herewith return without approval
Bill No. 2S4, originating in the AS
Sembly, entitled, An Act relating to
the taxation Of mortgages and mort
gagged real estate
in my judgment this bill is in
conflict with the provisions OF Section
|, Article s. of the Constitution OF the
State, which preScribeS that The
rule Of taxation shall be uniform
''The bill provides that the interest
of the mortgage shall for the purpose
Of taxation be deemed an interest III
real estate; that in case valid agree
ment shall be made by the mOrtgagOr
to pay all taxes on the land then the
interests of both the mOrtgagee and
mOrtgagor shall be assessed and taxed
together against the mOrtgagOr
"NO other rule than that now pro-
vided by law is prescribed for the
valuation OF real estate. A just and
true valuation is to be put upon it,
the same as if it were unInCumbered.
The effect af%his ) Juld be TO assess
real estate as it has been heretofore
assessed, and to exempt the mortgage
from taxation. The form of mortgage
always used contains an agreement on
the part of the mOrtgagOr to pay ali
taxes on the mOrtgaged property. 1t
may be safely assumed that this form
would not be changed in this respect
if the bill were to become q law.
Although the bill contains the prOVi-
sion for separate assessment OF the
interest Of the mOrtgagOr, when
agreement to pay the taxes is not
made by the mOrtgagOr. this clause
apparently would be wholly inOpera-
tive because the mortgage will always
have the power and the interest to
exact such an agreement from the
mOrtgagOr,
"Another section Of the bill declares
that its provisions shall not apply to
affect mortgages executed prior TO the
time this act Shall take effect which
time is fixed in the bill as January lSt,
1902. 1t follows, if the agreement to
pay the taxes is made by the mort
gagOr, that mortgages executed prior
TO January LIST. 1902, are to be taxed
as personal property according to the
existing rules of law, while those
made subsequent to that date are
wholly exempt from taxation, because
the real estate to be taxed at its true
value both before and after that date,
and after that date the mortgage
executed is made a part of the real
estate for assessment purposes. On
the other hand, If mortgage should
be given after January 1St, 1902, and
agreement to pay all taxes on real
estate is not made by the mortgagOr,
then the real estate is to be assessed
at its true value less the true value OF
the mortgage, but if a mortgage Shall
have been executed prior to that date
and none since, upon the same parcel
Of real estate it is to be assessed at It's
true value without any reduction
whatever on account of the mortgage
which also is to be assessed at its true
value.
In my Judgment it is not permits
Sible, under the constitutional pro-
vision quoted, either to tax mortgages
executed prior to a certain date and
to exempt those executed after that
date or TO tax real estate upon which
mortgage has been executed prior tC
certain date without any reduction
on account of the mortgage debt and
to deduct from the true value OF
similar property similarly situated
the value of d mortgage executed
subsequently to such date in making
assessments for taxation purposes
Respectfully submitted,
ROBERT N. LAEOLLETTE,
Governor
How conclusive the Governors OBJ
jections to the bill appeared to the
members Of the legislature was showr
by the fact that upon the question O
the passage Of the bill over the Cove +
nor's veto, ASstmblyman Barker, ar
insurance broker, and ASsemblymar
Orton, q banker, were the onl,
assemblymen who voted forits passage
The only sweet morSel of news til,
Sentinel has had to publish for weel
has been that WaShburn county haC
elected "Whitehead' delegates. |
has published this morning afte
morning. making much of it. Well
as usual, it appears that the repor
had nothing in it." and that Wash
burn county, with it's three votes, j
in the La Toilette column, where i
belongs. This is our latest advic
from Shell Lake. Milwaukee Ere