Vilas County news. [volume] (Eagle River, Vilas County, Wis.) 1896-1927, 1903-01-19
AID VALOREM
Continued from first page.

LOIQl OIL JOLCS, JULIUS, HUI ISdSCS, anu
other credits. Whatever difference of
opinion may prevail with respect to the
possibility Of placing all intangible
property upon the assessment ron and
Of continuing it upon the roll to be
taxed against the individual owner it
cannot be disputed that mucn at least
has been accomplished for the time
being.
With the rapid accumulation of
wealth, the increase in the amount and
value Of intangible property but
strengthens year by year the reason
and justice Of it's taxation in some
form. That vast accumulations Of
wealth may be invested in interest
bearing securities, insuring large in
comes to the holders who throw their
share Of the expense Of maintaining
streets and schools and public institu-
tons, and all the burdens of municipal
and state government upon the owners
Of factories and shops and stores and
farms and homes, violates every prInci-
pie of equal rights and equal RESPONSE
bilities guaranteed to each American
citizen.
With respect to mortgage taxation,
which it is to be remembered repre-
sents only a part of the vast amount
Of intangible property subject to taxa
ton, it is not so difficult to discover
and secure the assessment OF the prop
erty interest represented by the mort
gage. This may easily be done by as
sessing the mortgage as an interest in
realty, and providing that if the tax
levied thereon be not paid by the
owner of the mortgage interest, it may
be paid by the owner of the mOrtgaged
property and deducted from the
amount Of the mortgage debt. AS no
piece of taxable property should be
taxed twice, wherever this plan is pro-
posed it is agreed that the owner of
the mOrtgaged real estate should have
the valuation Of the assessment upon
his mo- tagged premises reduced at
the time Of the assessment, by deduct
ing from the value thereof the amount
Of the mortgage theron.
But it is COntended that by agree
ment or understanding between the
maker of the mortgage and the holder,
this plan of mortgage taxation is sub
ject,to evasion and notification by the
borrower agreeing to pay the tax as
sessed against the mortgage owners
interest in the same Or if such
agreement be not made, it is asserted
that the interest rate is raised by an
nn1Io7 n OF loo To
offset the taxes assessed against the
mortgage owner, and that in the end
the money lender escapes taxation
upon his property and makes the Dor
rover bear the whole burden.
Since the power exists to prohibit
the making of such contract as a
part of the mortgage contract, it GER
tainly can forbid and make invalid
such contract, made at any time
under any circumstances. If the
power exists to render invalid the
making of a contract directly, the
same power can be exercised to forbid
it's being indirectly made, or can pre-
vent any subterfuge or evasion in
reference to the subject acted upon.
A provision of the constitution can be
so framed as to prohibit the making
of any such contract at any time,
either directly or indirectly. It would
seem that the legislature ITSELF in the
absence Of any constitutional provision
to the contrary, could lawfully enact
a statute so framed as to prohibit the
making Of a contract for the payment
of a tax on a mortgage by the mort
gagOr, made at any time, and prohibit
his making it Indirectly, or in evasion
of the law.
Concerning the second objection, If
it be true that the interest rate is in
creased-which is disputed-it is a
matte between the borrower and the
lender. The amount Of increase which
can be exacted, if any, will be regu-
lated by the law of supply and de-
mand. Money rates, like the rates
upon any other commodity, are con-
trOlled by the market price. The
lenders ability to name the interest
ate is not absolute. It will depend
wholly upon the supply Of money seek
ing investment. II it be true that tax
ing mortgages as an interest in the
mortgaged premises under a statute
would, in some measure, increase the
interest rate, nevertheless such law
rests upon sound principles and cor
rect morals. 1t is unjust to the great
body of taxpayers, VINO are neither
lenders nor borrowers, that the hun
dreds of millions invested in interest
bearing securities should be exempted
from taxation in order to establish the
lowest possible interest rate. If that
is desirable above all things in legis-
lation, it can be attained directly by
a law prohibiting the making of con-
tract for the payment of interest above
the desired rate point. One thing is
beyond dispute. The business OF loan
ing money is not entitled to be made
more profitable by imposing an added
tax burden upon other classes of prop
erty and other kinds of business.