New-York tribune., 1903-01-08

disfribution of the tax and thus bring about g.
lowering of the tax with the nat9ral seaueilce t,5
lowering of the interest rate. Whatever tenos
to correct an abuse in part is IN the direction
of equity and justice while not 1uily sausIAyHns A
TO secure some such equitable form of mortgage
taxation through the opposition OF those VINO
felt that their local assessment roiis wou!o pe
creased and g. greater burden or local taxatloil
placed upon real estate, we shouio not atteInp.
to correct the evil entirely because fallure Wouio
again result Whatever of in1ustlee mas peen
done or whatever of inequality is apparent can
be we'll considered when the subject OF lnolrect
revenue is under consideration ana In IraIiilils
new laws we can avoid errors which proouce
hardship by eyaeting unjust tribute, IL appears
to me- therefore, that in providing new revenues
advantage should be taken OF a more nperat
raorteage tax and the reassumption OF privileges
which were surrendered to localities under the
so-called Franchise Tax law
REDUCED RATE RECOMMENDED
recommend therefore, that the rate OF taxa
tion upon mortgages shall not exceed four naliis
annually. and be in lieu of all othef taxes; lne
mortgages TO be assessed localy; 80. tsa
uries and one-third to the State excepting only
from the operation of this law mortgages aho
bon6s held bv savings banks fraternal ORDERS
local building and loan associations, LIE ihsur-
ance companies and charitable, reilglous anu
educational bodies, This LAW W9uio 81 pGoo006
annually two-thirds Of which, amounting "
about $3.50 900, would go to the localieiss,
and 80 6.5 600 TO the State. The local machinery
for tho collection of the tax will be much SIM
pier than State bureau because 1t VIII De tt sa
local Registers and County CLERKS omces , ina
viii furnish the desired information TO each
locality to determine its assessment, ieaVlng "
them the corrections and deductiohS WhlCh
should be made The constant Lssf IN v .rIine M,
cages will be subject TO eAcesslye W a Nai S snS
rates of taxation will be thus eunaina.eu . , aiu
borrowers and lenders can negotiate thelf loans
with a sure knowledge OF the TAX oplisa t.oLi-
Bonde of CORPORATIONS, owing to the difficulty
of reaching them for taxing purposes, can ,, pe
Ief, for assessment under existing law; the
cho
That 7ax could be assessed upon gross earn
ings at double the present state tax. lhe rev
enue to be paid direct to the State, renewing
n,,bI;c ,,+i1itv companies from local taxation
EXCEPT upon tangible property IN thg stIeen3 !I7
and other real and personal esta.e dnas iias @ba
operate much more equitably than ooes slie s
present law and will not be an unjust pnroeh
iInon the corporations that are aHecteo- esu-
mate that from the mortgage tax ana tne
,ended Franchise Tax law the increased rev.
ennes viii amount to Sc, ,530, ,000 Whatever may
be lost in the total of the assessments unaeE ot
Franchise Tax law can be more fhan repiaceu
nv the listing Of mortgages, and WouiQ tnefetoIe
increase rather than decrease the dent limit ol
municipalities for bond issues e
For further revenues j recommend lax ,,i Ui
10 cents on each notary certificate, Whlch WIN
produce ST5o000 and a tax OF lo cents PEI
hundred dollars for the recording or all transfers
oF DroT,erfv real or personal to be known as
recording tax which from the pest aSdAdpie
data hand will produce sac;O S6;1WUo9o 900 ~! , ay
enue These recommendations, IL enacted Llto
law will produce enough funds Tor the plesen.,
and he
operation will be sufficient to care lor Ia Lii AZ
creased expenditures of the state outslue oa
canal Improvement ana VIII ts,. onts reIief from
pledge that has been made Tor eflure ieiiei ti'4
direct taxation for State purposes
The enactment of these laws would taKs aSss oSSs
FROM the localities franchise revenues OF S1'o-o'
oo0 Tnasuuch as of the total assessed VaIua-
80 of the personal property Of the State, from
the hest estimates obtainable, there Is o'i1y
S135 100000 in the hands OF 1nolVlouaIs, any
assuming that all this represents InoTtgages ai
+bot the tax were per cent. the localities wouid
lose So COO by the abolition OF the preseliI
mortgage tax so that tne tolaI loss 49,. %
rage tax would be S5 3500 000 In other WORDS.
the localities would benefit by the enactment OF
+bese laws TO the extent Of S1,ooO,OoO, ana II
,,,o,I5 stiu leave bonds and securities other than
real estate mortgages held py lhoiVlooais " NC
taxed locally. .,,5,,o
arsirst the changes thus recommended, put we
should not for that reason be deferred IRON
according rights ana proseculng al not he I'M
nosed 7 believe when the subject Is fully under
stood that the legislature viii reach' the cohciu-
nd aesinst public policy. Stockholders are but
individuals and they should have the same
rights as owners of real estate or other forms
Of personal property.
NEED OF CANAL IMPROVEMENT.
The desire to maintain the commerce at the
norris of New-York and Buffalo and the fahure
Of canal transportation TO aaeauately % -, eivnn
consideration to this subject to suggest a very
material increase or enlargement OF canal Iacill-
ties There is perhaps no subject Whlcn you
viii he called upon to consider that IS fraught
with so many difficulties. and the failure OF
every attempt in recent years TO make cahai
traffic more effective should be a warning, and
should preclude hasty conclusions as 10 'he
y1roper remedy to be applied.
That the Erie Canal has performed an I'M
portant work in the development OF our state
is not questioned. That il is the desire OF ali
of the people that it should remain as factor
in the adjustment of freight rates is equally true
Brrt as 10 the extent to which the State should
go in the direction of Improvement there is
wide divergence of opinion. There mas peen
unfortunately, no policy in this matter Wnlch
had the character of permanence. Neither the
lowering nor the abolition OF tolls upon the
canals brought as was hoped, an increase of
traffic On the contrary, there has been grad
ual but certain decrease both IN tonnage ana IN
the number Of boats engaged IN canal tra1nc.
Under the present system, aisregardlhs Ior the
time being the factor of cost which the state in
the nature of a subsidy grants, the fact is ap-
parent although the per ton mile cost or canal
transport ton is but nineteen one-hunereoths oil
a cent while upon the railroads hfty-nlne one
hundredths of a cent, that the railroads are in
creasing their traffic while the canal is gradually
losing it Why shippers willing to pay this
increased cost becomes therefore a proper sub
feet for inquiry. Is ii because OF greater facll-
ties and more prompt shipment at other outports
that this decline in canal traff1c is dueF AND
will an enlarged canal win back the commerce
which we have lost? 1t can be taken to be a
certain and fixed conclusion that commerce VIII
follow the line OF least resistance Were the cost
is lowest and where facilities for releading
freight for export best The inability TO
use the canal for at least five months or the
wear To my mind is first Of eli a serious conSid-
eration in competition with railroad transports
ton. which in addition to the terminal charges
at New York and breaking Of bulk at Buffalo
seem to give TO the railroads advantage
which should be thoroughly considered before
an enlargement OF the canal is authorized. Still
lower freights seem to be the remedy which it