New-York tribune., 1902-01-03

Sherman, while among those who looked with
disfavor upon it were Clarence H. Kelsey. w.
E G. Gaillard, of the real estate firm of Nc
Vickar & Co. and John H. Deane.
The principal arguments Of the supporters of
the measure were that it would make the lend
ing of money on mortgages more attractive and
safer. and that not only would the mortgage
get a greater revenue than now for the money
lent, but the mortgageor. with more favorable
terms, would be able TO improve real estate
more In brief. it would loosen numerous purse
strings to persons seeking loans on real estate
that had never been united to them before. it
was declared. Arrayed against these argu-
ments for the passage of the bill were the ex-
pressions from opponents of it that the passage
of the bill would seriously affect the realty mar
ket, now too burdened and hampered by taxa
tion direct and indirect, and would mean not
cheaper mortgage loans, but fewer and dearer
ones
w. E. G. GAILLARD'S VIEWS.
w. E. g. Gaillard. who is not in favor of the
bill. was asked for his views on the subject yes
terday by Tribune reporter Mr.. Gaillard
said
not in favor Of placing any tax on mort
cages. Mortgages should be exempted from taxa
lion, Massachusetts, is far ahead Of New-York as
1t long ago carefully discussed the subject and it
passed a law exempting mortgages from taxation.
tanned tfdne Do on at 80 per cent such Sond
would if the State legislature said that mortgages
should not be taxed From the reports OF the pro-
present form am of the opinion that 1t does not
To the hSt ts TO- S now on record & are
they are recorded. The Stranahan tax measure is
borrows for one year will not be so @ fortunate as
es & Tso ds is able s H for for AL long Fs
have TO pay another tax his mortgage II he has
II recorded the following year, while the latter will
No, the bill will not make money easier 10 get
There is plenty of money invested in this city and
other places which would be loaned mortgages
here II mortgages were exempt from taxation.
SAYS THE BILL is SOUND.
Samuel Goldsticker said:
The stranahan bill is an excellent one. It's pro-
cally sound 1t is not discriminating It puts only
says there shall be no other. MORTGAGES are now
elassed as personal property and assessed.
But the leyying Of this personal assessment tax
large sums of money out mortgages aud whose
names are not in the personal assessment tax list
are not known 10 the Tax Commissioners. Then
from paying the tax because they swear that their
debts are greater than the sums loaned by them.
be surprised to money loaned al per cent on
b btoftsages ~ Money on @ @nortgages VIII undouotedly
interest on city bonds will have to be increased,
Why such an increase will have 10 be made is
readily seen. At present many executors and trus-
tees or estates prefer to invest in city bonds than
Ioah on moFteages' because they know Just
1 What & revenue they viii be able to obtain from
cages they do not know what extra tax levies will
be placed ed on IN the The. mGrtg%ages e3!1 % -., .
cages at the time they recorded, and the
taxation mortgages would not be assessed as per-
sonal property and estates and other persons would
cages than BY investing in city bonds Her Hence the
city would have to oner more aiurlng terms to
lower rates of interest and exempt from every
tration tax many persons who have unimproved
property would take steps 10 improve their hold
I think that few holders of mortgages. in com
parison with their numbers feel the effect Of the
personal property tax.
Herbert A Sherman said he was heartily in
favor of the measure and that he thought It
would be the means of making money easier.
number of men identified with trust COM
panies asked for their views regarding the
assertion of Governor OdeH that the difference
between actual and assessed valuation repre-
sented in most instances about the amount that
owners Of property could borrow a first mort
gage. They said that their knowledge of realty
conditions in this city did not lead them to agree
with the Governor that point
James Ross Curran, president OF the City Trust
Company, said mortgage loan averaging from
so to 20 per cent of the market value of i'm
proved property in any good part OF the city
could easily be obtained. He cited cases in
which conservative lenders had lent recently
even more than 20 rer cent when the security
appeared to be protected by satisfactory neigh
borhood conditions.
OPPOSED TO MORTGAGE TAXATION
Clarence H. Kelsey. president of the Title
Guarantee and Trust Company said he was
opposed to all mortgage taxation. He added
About So per cent of the taxes are paid by the
holders Of real estate.
That assessments are getting higher and higher
me, for relief rather than for increased burdens
This has been our position for some years bur
we have about come to the conclusion by this
meet with any favor at the hands Of the legislat-
ure. The legislature and the Governor evidently
taxing mortgages. think that they have an ex-
aggerated idea OF the amount they can raise this
them that they can do it; We have about become
reconciled to the fact, therefore, that MORTGAGES
have the burden made as light and distributed "a
equaoly as possible. That the Governors latest
enough. " pam
Mr.. Kelsey added that he thought II the
Stranahan bill went into effect the number Of
mortgages filed would fall off Immediately. In
stead of applying for new mortgages mortgagors
would simply renew old ones. and thus escape
the tax. From the point of view of justice the
new plan should be voted down
Frederick D. Tappen said:
, AZ the law stands. a trustee is virtually de-
because the moment the mortgage is recorded the |
authorities levy a tax for the full amount The |
on mortgage at Az per cent nets about per cent
such a small investment yield is prohbitory TO |
trustees. They cannot afford 10 do IL Nov r. |
Soyernor OdeIs scheme could be put into effect |
collected many people who now have their FINDS