The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-04-08
RIDDLE MORTGAGE TAX BILL.
MEASURE DENOUNCED At BIG
MASS MEETING.

acnublIcan speakers Score the Action Of
Their Party Leaders at Albany-An-
drew Wills says the BiII u Merely an
outbreak Of the Old POpulistle wave.
An cmphatic protest against the mortgage
tax bill was voiced at a largely attended
mss meeting in the Murray Hill Lyceum
last evening. The meeting was under the
auspices Of the Real Estate Board Of Brokers'
but among those present we're smany prop
ertv owners. tenants, depositors in savings
banks. stockholders in loan associations
and tenement house workers az there were
real estate dealers. Opposition TO the tax
was accordingly expressed from many
different standpoints.
Additional significance was given TO the
meeting by the fact that every speaker
was a Republican opposing a Republican
Marty measure From those OF them promi-
ncnt in party politics the denunciation was
the most drastic. Congressman j. Van
vechten Olcott in particular scored his
party severely for forcing the bill through
the Legislature.
All Of the speakers considered the bill an
effort on the part Of the country legislators
to force the city 20 pay more than its pro-
portionate share of the expenses OF the
State government, and expressions to the
effect that the city was willing TO pay a
reasonable share Of the country's debts
but objected 20 paying all Of them were
frequent. Apart from this, particular stress
wa. laid upon the well known principle
that in the final analysis it Is the borrower
the tenant and the land owner who pay
the tax rather than the lender,
The meeting was called to order by Joel
S. DeS5lding president Of the Real Estate
Board Of Brokers. He said:
This bin affects the city OF New York
in a way that very few bills have ever
affected us II affects a vast number of
people Borrowers small builders, opera
tors and tenants will feel the increase in a
way they do not now expect Principally.
the tax will hurt the man Of moderate means
who is not content to pay rent, but en-
deavoTs to build a house Of his OVID. Ger
tainly he will be forced to pay the tax. and
II my judgment Is not wrong every tenant
viii psy itin like degree
Lawson Purdy, secretary OF the New
York Tax Reform Association, dwelt upon
the crudeness Of the bill from legal stand
point. As especially unjustiied by any
legal precedent, Mr.. Purdy called attention
10 the clause providing that a tax once
paid cannot be recovered, to the fact that
there will be no way of satisfying mort
gage Of record il there Is default in pay
ment Of the tax and to the opportunity
Afforded the inscriptions borrower to
evade payment OF the principal provided
the mort gagor for some reason negleCts
The effect Of the hill on savings banks
and their depositors was explained by
Andrew Mills, president Of the Dry Dock
Savings Institution and treasurer Of the
Union League Club
sLeRislate as YOU will. said Mr.. Mills,
'the borrower pays the tax. The Legis-
lature thinks the lender pays the tax, but
It Is not So II a man borTows money 10
build a house, he will be forced to pay the
tax and must recompense himself from
his tenant. In my. opinion, as concerns
the borrower, the bill will raise the rate Of
interest half Of one per cent.
Ninety per cent. Of the real estate -
mortgaged and the tenants Of that real es-
tate, whether they pay so cents week
for a room in the e nc ments or $50 Tor apart
ments, will be the persons to pay the mort
gage tax. III.
conception. II Is no new thing. 1t Is an
outbreak OF the old Populistic wave. A
similar bill raised rents and interest rates
in California and was repealed Its effect
on the savings banks, the largest loaners
Of money, is sure to he pernicous They
hold over 500 600 600 in mortgages in New
York city and lean millions annually. II
the loane RI must ray the tax, they must
reduce the rate Of interest 10 depositors.
1T Is double taxation. There is no doubt
Of it. Real estate Is Assessed at its fun
value for city purposes and ninety per
cent Of this real estate must pay the mort
gage tax.
Charles F. Bostwick, who last year intro
duced the bill eXempung mortgages from
taxation. was the next speaker he stated
that the expenses Of the State government
an o IntCd to S25, 900, GOO, and that present
sources f ravenue left a deficit Of 81 500, 900,
portion Of which the Mortgage Tax bill was
designed 10 supply
Examined by all tests, he said, the bill
wa- vicious measure and would cause
depression which could not be overcome,
even IL il were repealed by the next lRRis- |
lature. The people Of the cities, he thought
neglected 10 take that interest in public |
affGrs taken by people Of the country, |
and for that reason had less right to com
plain Of their treatment at the hands OF
the LEGISLATURE.
J. Clarence Davies. president OF The |
Bronx real estate brokers, said that the |
hill was an effort to raise money from the |
people who can least afford to pay. II a |
man has his property unincumbered, said |
Mr.. Davies, he escapes taxation. The |
poorer ne il, the more money be owes on |
his property, the more tax he has TO pay
Eighty per cent Of the houses in The Bronx, |
he said were built to accommodate eight |
families The average mortgage on such |
houses was $50 900 and on this the law .
would impose an annual tax Of $50. On /
the other hand. he said IL the owners do |
not increase rents there will be a deprecia-
ton Of 500 600 900 in the value Of New York |
real estate
Congressuqn Olcott said the meeting was !
sort of forlom hope, hut that forlorn |
hopes generally accomplished something.
They rot there in the last ditch.
Frank DcMuth, president Of the West |
Side Tax Association, led a delegation into /
the hall while the meeting was in progress
and responded to a request 10 speak AT
the conclusion OF the speaking reso utions
reciting reasons for opposition TO the ball
were passed They will be forwarded to
Gov Higgins.
THEWHY or THE MORTGAGE TAN.