Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1903-03-25

tuted for the majority report. IRE
ferred to the committee on appropria
tons ana financial affairs under tn
joint rules0
j Taxation of Mortgages.
4 Report of the committee on taxa
ton. reported Ought to pass" in new
draft under same title, bill relating t.
the taxation OF mortgages.
Mr.. PUTNAM of Houlton: MI
Speaker, l move that the House non
concur with the Senate in acceptins
the report of the committee on taxa
ton, and I further move that whe1
the vote is taken it be taken by thu
yeas and nays. .......-
Mr.. DAVIDSON of Hammond Plan.
tation: Mr.. Speaker, is an amendment
in order?
The SPEAKER: No, it is not Until
something is done with the report.
Mr.. HOWE of Canton: Mr.. Speaker:
Before this vote is taken 1 wish to say
that this bill came down to as from
the last Legislature providing for the
! taxation of the holder of mortgages
of his proportional part of the prop
erty. A hearing was advertised, and
Lit was well attended, and the matter
was heard and discussed. The com
mittee after due consideration of the
subject, were unanimous in their opin-
ION that the bill was not wise, and this
bill was reported in it's place. Now,
the committee on taxation are COM
posed of business men,. AS to my own
position in. the matter 1 can illustra. e
| it by referring to a man in my county
| who was arrested for selling LIQUOR
| illegally. He was asked if he was
guilty, and he said mo, 1 am always a
| buyer and never q seller" In my
own case I am always a borrower and
| not a lender. We believe if the liza
bility of money to be taxed when it is
loaned is taken away, that the laws
of supply and demand which regulate
the price of all commodities will regu-
late the price of money in the market.
In no instance is there money loaned
on mortgages where the lender does
not say. Il am liable to be taxed for
this If this board of assessors does
not catch me. the next board may,
and I am going to charge you a suf-
|
get caught l am bound to have a good
rate of interest left" The conse-
quence is that the borrower of
money not only pays this man a good
fair rate of interest, but in addition to
that he assesses the municipal tax,
collects it and puts it into his own
pocket.
The valuation of the State in the last
10 years has increased $43, All, 900. The
money in the national banks has in
creased within five years $7,7a2,274
The increase in assets of all banks in
two years is $13,633, 72S. Money at in
terest in 1892 was 81 ,005,S 1862, and in
1902, 10 years later, the money at in
terest was 81, 1907, Titan increase of
money at interest in the State of Maine
in 10 years of 1901 ,915. The increase of
the total valuation in 10 years for the
State of Maine is about Il per cent.
The increase of money at interest is
2.74 per cent.
Now, do you believe that that is a
state of affairs? Do you believe that
the valuation of the State has in
creased II per cent. and that the
money loaned on mortgages has only
increased 2.74 per cent? 1 do not be-
lieve it. The loans on mortgages of
real estate by savings banks has In
creased in 10 years $1,014,991.
The opponents of this bill claim that
it will not reduce the rate of interest,
that if the liability to be taxed Is re-
moved from the ender of money. he
will still continue to charge his exor-
bitant rates of interest. I hold in my
hand a copy of the Review of Re-
views for February, in which is an
article by John r. Commons, secretary
of the taxation department of the Ma
tional Civic Federation. He says, on
the question of taxing mortgages,
Another lesson in tax reform is on
the taxation of mortgages. Here
Michigan and Wisconsin have been
more spectacular, but not more in
structive, than Indiana. Indiana ap-
proaches the subject gradually and
gave the tax dodgers notice. Michigan
and Wisconsin came down suddenly
and hard. and the adjustment is not
yet complete. The Michigan state COM
mission secures from every recorder of
deeds in the state list of all unsatis-
iItu lclu ny VI tItc
state, with the address of the mort
gagee These are classified at head
quarters and sent out to every assessor.
In Indiana and Wisconsin the county
assessors exchanged their lists direct
ly. In one year in Michigan the total
assessment Of mortgages was raised
from some 5000, 900 to $55,000,000. Wis
consin in four years raised the assess
ment of intangible property from about
$16,OO0,0OO to 100000, nearly all Of the
increase being in mortgages. Other
classes of credits escaped because they
are not of public record. In both
states the results are interesting. Mort
cages are renewed or new ones made
at an advance of per cent. or III per
cent. in the rate of interest. This has
aroused the farmers to a lively inter
est in the economies of tax laws, fol-
lowing their earlier interests in the
reform OF tax administration. But the
adjustment is taking place, and in In
diana it is already made. with interest
on average mortgage security at 5
per cent, against 6k per cent. and z
per cent. in the other states"
The general policy of the State
think is to relieve the poor man Of any
unjust and additional burdens, and