New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-04-06
AMENDMENT NECESSARY.
Governor Higgins Outlines His
Position on Tar Bills.
IBE TELEGRAPH no THE rRIBuNB.l


lBE TELEGRAPH TO THE TRIBUNBl
Albany, April BIN a clear and definite state
snent 70 the Republican members OF the Assem-
bly, who opposed the measures, Governor Hig-
gins to-day outlined his position on the Mort
gage and Stock Tax bills. sQuarely and plainly
disclaimed ell intention OF responsibility for
the alleged tanning through" OF these meas
ures in theslegislature. ana declared that the
two bills were not wholly satisfactory to him.
he explained his position and attitude through
out the session as merely one Of recommends
ton that more revenue must be raised without
return 70 direct taxation. and thereafter await
ing the action OF the legislature in providing
such revenue. Ne ended his speech with the
pledge 10 give the bills, now that they have
passed, most careful consideration before he act
ed upon them. Il IS understood that. as a result
OF an agreement reached with Speaker Nixon
before the bills were made party measures in
the Assembly caucus. bill win be introduced
as soon the Mortgage Tax bin is signed by
the Governor. z IL should be. exempting from
its provisions all mortgages OF duly incorporated
building loan associations.
Moreover. It Is also known that within a few
days a bin win be introduced providing for a
commission. not necessarily made up entirely Of
legislators. to investigate fully the whole sub
sect OF State taxation and report their findings
20 the next legislature.
The Governor said to-day that he did not ex-
pect to give any hearings on the two measures.
but would probably talk with some OF those
opposed to them.
Governor Higginss speech to the Republican
Assemblymen was follows:
The general property tax. as administered in
the State OF New-YOrk, is failure inequality
OF assessment failure TO reach personal prop
orty incentive 10 dishonesty, are among the
more glaring defects in the system. It was said
IN the first annual report OF the State assessors.
IN 1880 that more unequal. unjust and partial
system for taxation could not well be devised.
And in the assessors report for 1879 It was said
that the general property tax is a reproach to
the State an outrage upon the people, q disgrace
10 the civilization OF the nineteenth century, and
worthy only OF an age OF mental and moral
darkness and degradation. Any effort to inn
prove and perfect our system Of taxation by
distributing the burdens where they can best
be borne and by compelling the tax dOdger to
contribute his just share to the cost OF govern
Inent deserves approval and not censure-
The main opposition TO the Mortgage Tax Dill
proceeds from organizations OF leaders, men Of
large capital who are able to employ counsel to
come to Albany 10 oppose the adoption OF law
which in form, IL not in effect. is a law TO re-
duce taxation on mortgages The people who
the small farms the little homes, which
serve only a shelter and produce no revenue,
and the renters IN tenement houses must rely
upon the good sense and fairness OF their rep
resentatives in the legislature for their prOtec-
ton
Under present laws. If the assessors do their
duty, the mortgage is assessed at its full value
for State and local purposes. II Il escapes such
assessment 1t IS because assessors are slOthful
ment as TO public policy above the law, or be-
cause the owner Of the mortgage is non-resi-
dent or is willing 10 commit perjury in order to
swear on" his tax If no onset OF debts
against personal property assessments were per-
mitted temptation 10 fraud and perjury would
be removed and on the other hand, double
taxation OF the seVerest type would prevail
The ordinary colder OF mortgages is not in
debted in an amount greater than his mortgage
holdings He lends his money at the constant
risk Of taxation. He charges for this risk IN fix
Ing the rate OF interest II he escapes taxation
he receives higher rate Of interest, and if he
pays the tax the borrower bears the burden.
The pending bill substitutes a tax OF 3 to /
per cent for tbs general property tax on mort
cages, without deductions for debts or eXemp-
tons on account OF Don-residence. Its natural
result would be 10 reduce. rather than to IN
crease. the rate OF interest, by releasing vast
sums now deposited in savings banks or invest
ed outside the State In order 10 escape the heavy
burden OF general taxation. This fact may &C
count for some Of the opposition by the mOneyed
Interests 10 this legislation. Existing mort
cages are not taxed under the pending bill. IN
less the mortgage elects to avail himself Of its
provisions. It looks only to the future. The
Stock Transfer Tax bin imposes a tax upon
those who escape the burden OF direct taxation
ana who clamor for taxes that tall with great
est weight upon the poorer classes. As under the
teudal system the mobiles were largely exempted
4rom the land tax and the weather. classes
largely escaped the tax burdens. so at the pres
ent time the rich constantly demanding ex-
einption and special privileges.
Such a system breeds a righteous discomfort
among the people regret that there seems to
be difference Of opinion as TO these measures
are unwise. and know that those who favor
Them are equally sincere, and believe them to
be for the best interests OF the State. have
not attempted to dictate a 10 the manner Of
passing bills since 1 became Governor, nor as
10 what these bills shall contain. I know that I
am credited with forcing through" legislation
never knew Governor who did not force
through legislation. according TO the general
idea Bills are said TO be damned through
whether they have been considered three months
or three days. These measures have been con-
sidered for a long time-the Mortgage Tax bill
for i've years. I cannot say that they are wholly
satisfactory to me. It would be most pleasing
10 me IL there were no tax at all. But the ex-
penses OF the State for charities, education pub
lie works and the courts must be met.
cannot interfere with the procedure OF the
legislature; you were elected for the purpose Of
iegislating. / have no desire to avoid RESPONSE
bility for any legislation that meets with my
approval The only recommendation I have
made to legislation have made by message
10 the legislature. We need revenue. and am
not IN favor OF going back 10 direct taxation
The legislature must provide the ways and
means. There are two sides TO every question
And I am quite sure that there is as strong
sentiment IN favor OF these bills as against
them, and a still stronger sentiment against a
return 10 direct taxation for State purposes.
shall give the matter most careful considera-
fiOn before final action these bills. NY sole
desire IS TO be just 10 all the people OF the State
and 10 promote the greatest good OF the great
est uuu7heF