Northern Wisconsin advertiser. [volume] (Wabeno, Wis.) 1898-1925, 1903-01-22

| bea.lng securities, 1nSur1ng large in
| comes to the holders who throw their
share of the expense of maintaining
/ streets and schools and public institu-
tions, and all the burdens of municipal
and state government upon the owners
of factories and shops and stores and
farms and homes, violates every prlnci-
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 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
ldAtu lWlCt, WntltNtl lIiS pan Is UIO-
posed it is agreed that the owner of
the mortgaged real estate should have
the valuation of the assessment upon
his mortgaged premises reduced or
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
mont nnHnrct q N no "a
maker of the mortgage and the holder.
this plan of mortgage taxation is SUBJ
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
amount equal to- at least, enough 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 a contract, made at any time
under any circumstances. If the
power exists to render invalid the
making of contract directly, the
same power can be exercised to forbid
its 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. 1t would
seem that the Legislature itself, in the
absence of any constitutional provision
to the contrary, could lawfully enact
statute so framed as to prohibit the
making of 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
matter 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
rate is not absolute 1t will depend
wholly upon the supply of money seek
ing investment. If 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
d.eds of millions invested in interest
bearing securities should be exempted
from taxation In order to establish the
lowest possible interest rate. II that
Is desirable above all things in legis-
lation, 1t 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
l1oIs pioHLdDie ny iInpoSlHR all duueu
tax burden upon other classes of prop
erty and other kinds of business.
The Mill Tax.
The governor recommends that
limiting the amount which can be col
lected under the mill tax law to $780,
900 be enacted into law.
The inheri, ance tax law, enacted in
1899, having been unconstitutional,
upon the ground that certain of it's
provisions established unjust and un-
lawful determinations between per-
sons in the same class, the governor
announces that the tax inheritance
bill is to be prepared and submitted by
the commission. The wisdom of this
Legislation is no longer open to ques-
ton, and the bill will, he has no doubt,
receive favorable consideration.
Coal Inquiry.
The so-called antitrust law of Wis
consin is an act without force or
effect under existing conditions. Ii