New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-04-05
TEE MORTGAGE TAX BLUNDER.

Il should need only a little sober second
thought TO convince the Republicans in the legis-
lature that they cannot afford to pass under
the caucus spur q tax chiefly burdensOme upon
one section of the State, with the Republican
members from that section bitterly denOuncing
It. yet voting for it. acting not the representa-
tives Of their constituents, or even according to
their own independent convictions different
from those Of their constituents, but as the vic
tins OF q sudden caucus vote We say sudden
caucus vote, because the announcement that the
matter had been al settled and certain spe-
cifc bill determined upon as a binding party
measure came almost as a thunderclap out OF a
clear sky. Mortgage tax bills have been IN
every legislature for the last Eve years, and
whenever seriously pushed they have met such
opposition and been so completely rlddled
by sound argument that they have been laid
aside. Several mortgage tax bills were on the
calendars this year. They were not seriously
attacked by the newspapers or the citizens In.
terested, because Il was generally understood
that they were merely tentative propositions
and that conferences would probably result in
agreement upon a moderate measure, such, for
instance. as a mortgage recording tax, which
would be fairly acceptable even TO those who
disbelieved in the principle Of any tax on mort
cages
Everybody knows that a concentration OF
public discussion upon the caucus measure pre-
vious to the caucus would have made it impOs-
sible. Il went through only because there was
no chance for popular sentiment TO make itself
felt after It's passage was really apprehended
People thought OF it as the same old ghost
which they had laid so many times that there
was no need 20 worry. We do not believe that
one-tenth OF the men who voted in caucus really
knew the details Of the thirty-hve page bill TO
which they were being bound. We doubt il
I'M half no
provisions Of the bill were open to debate and
free amendment many even Of those who favor
the measure IN general would admit the injustice
and destructiveness to business OF some Of its
features
We realize the difficulty which faces the ad.
minisTatiOn in the matter Of revenue. Desiring
not 70 embarrsss its preliminary deliberations
and trusting TO free debate and reasonable ad-
justment Of plans when a consensus OF opinion
was reached, we refrained from agitation for
or against supposedly tentative tax schemes
We wish to see the needed revenue raised, and
are willing TO see 1t raised by indirect taxation
on property which, through the inequality Of our
personal tax law, does not bear its fair share
Of the public burden, though the largest part Of
it Is centred In this city. We are ready to re.
gard the caucus as fairly expressing the sentt.
ment Of the Republican party that a revenue
should be raised from mortgages. but we ear
lature 20 take second thought and not force
upon the people this particular measure, the
operation OF which we believe they have not
stopped TO think out, which would do great
harm TO the Republican party In this section Of
the State, greatly hamper business and restrict
real estate development, and place an added
burden on the class Of property already most
highly taxed
The mOneyed interests Of this city may prop
that win bring money here, not drive it away
The mortgage tax as passed by the Senate
would drive men 10 invest their money any
where but IN New-York real estate and make
borrowing, especially on farm lands, most diff
cult. Let Us catch our flies with molasses in
stead OF vinegar Impose a small recording tax
on New-YOrk mortgages. Then allow the holder
Of notes and bonds and mortgages on outside
property the option Of paying a similar tax or
running the risk Of the personally tax, which,
II 1t does hit him, amounts almost to conhsca.
ton. Then. instead Of the personal assessment
OF r1dtculously few persons, we shall see the
holders OF millions millions Of securities
coming up to pay this small impost, to be free
from the worry and possible failure to escaDe
from the personal tax, which most OF them do
succeed In escaping Then we shall also see
capital from other States making this its resi-
dence, enTichlng the community and filling the
treasury or the commonwealth which shows
such reAsonableness in taxing it moderately
and equally and freeing it from mere unproft-
able annoyance. 1t should not be too late even
now to reach this adjustment No caucus should
bind party to persistency in a mistake. The
party is not the instrument Of the caucus. but
the caucus Of the party, and when sober second
thought discovers that a misstep has been taken
wise leadership will see true consistency IN
adapting Its measures TO the newest light, not
in closing its eyes to that light