New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-01-08
MnRTGAGE T1EES AGAN


The appeal Of the Chamber of CommIi>c yes
terday for the total abandonment of mortgage
taxation might wisely he needed by the legis-
latre But we fear It viii not be- This is a
reform which has been sought for many years,
but without success. Governor Odell has sew
cral times declared himself believer in mort
gage exemption. Failing to secure that, he has
recommended various plans of modified mort
gage taxation which he believed would secure
equality among holders of mortgages and do
away with the monstrous discrimination and
excessive levies. amounting almost to confisca-
lion, under the present law. Popular sentiment
in certain parts of the State, however is so
swayed by prejudice and immediate local in
terest that il has SO far been impossible To per
slIade the legislature either 20 exempt mort
cages or subject them 10 a small uniform i'm
post. Undoubtedly they ought TO he entirely
exempt, as the Chamber of Commerce declares.
The property which they represent is already
taxed q real estate, and the tax upon them IS
merely added burden upon the real estate.
But the average farmer who pays taxes on his
land cannot be reconciled TO the idea that the
man who holds a mortgage on the farm should
not likewise be directly taxed. So we have
little expectation of the establishment OF any
thing Ike correct principles of taxation at the
-
Nevertheless the subject OF mortgage taxa
ton is likely TO be revived this winter. Gov
ernor Odell is anxious for more indirect reye-
nue. to meet part OF the cost of the canal I'M
proyement. He puts the amount needed al
S..5OOOOO, without yet indicating how he pur-
poses to raise such sum. In view of his rec
ommendation last year, II is probable that he
hopes 10 see mortgages yield all or part Of this
sum. His plan at that time was for an annual
tax on all mortgages, which it was believed
would produce S6,OO0000. Possibly that is CON
templated but It would undoubtedly meet with
great opposition not only the part of the few
localities where mortgages are an important
source Of town and county revenue, but also on
the part of the opponents Of mortgage taxation
who would rather a few mortgages endure
the ills they do than see all mortgages taxed
even al a lower rate. 4 stamp tax levied once
on the recording Of each mortgage would, of
course encounter the opposition of those who
stubbornly cling to the present law, but it of
fcrs n working compromise that might be ac-
ceptable to believers in the principle of
emption. while it would furnish a goody reve-
nue., probably almost half OF the S5,500,00O
which the Governor desires.
1t is estimated that there are S2OO0O00000
Of mortgages property situated i'll this State.
Three years Is their conventional term. Proba-
bly, the longer term mortgages and the tenn
porary builders loan mortgages. which are made
in vast sums, about balance. II four years IS
the average life OF a mortgage, then a stamp
tax Of five mills on the dollar would bring in
50. 100000. A stamp tax would practically col
lect itself. Nobody would be seriously annoyed
by il, as il would be paid along with the other
fees incident to executing a mortgage. In few
counties would any great loss occur to the local
revenues. Such loss as did occur would be in
the cause OF equality and Justice, for the COIN
paratively few mortgage holders now taxed are
the victims of indefensble discrimination If
the Governor can find other sources Of revenue
70 produce from 100000 to 100000, such a
recording tax on mortgages might enable him
to pay for good part Of the canal improve
ment without recourse to long term bonds.
Such payment IS not necessarily tied up to the
plan for levies on the counties. Any available
revenue which the State can secure may easily,
without any departure from the spirit Of the
popular mandate, be by law applied as far as
il goes, toward the canal Improvement, leaving
the rest of the cost to be met by bonds issued
for such periods not longer than eighteen years
as may be dictated by the States prospective
ability TO retire them.