New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-03-31
MAY REDUCE STOCK TAX.
AN AMENDMENT LIKELY.
Dollar on Each 100 Shares Urged
Measure To Be Passed.
[Br TELEGRAPH TO THE TR1BUxE.l


EBr TELEGRAPH TO THE rRrBUNEl
Albany, March 30.-The legislature to-day in
dicated its readiness TO accept stock and mort
gage taxes as accomplished facts as a result
OF last nights caucus. with single change
namely, in the amount OF the former. The sug-
gestion made by Governor Higgins at the con-
ference yesterday that the tax be reduced to 81
on each hundred shares transferred, in
stead OF 81, is still possbty-!n fact, strong
possibility.
When the suggestion was made yesterday the
Senate leaders promptly and effectually dis
posed of it by insisting that the Republicans on
their side had with more less difficulty been
bound to both mortgage tax and stock tax
measures in the shape in which they were given
TO the Assembly. For the Assembly TO modify
them would necessitate a new caucus in the
Senate IL was said. and this caucus might
prove q failure. Then the legislature would be
left in q worse place than ever. SO they in
sisted on the Assembly taking the bills as ac-
cepted by the Senate and putting them through
and in this programme the Governor acquiesced.
In this shape the Senate may pass the bills
next Tuesday; it probably viii. Then the AS
sembly might pass them, and they would be-
come law; but at this stage it would be possible
10 amend them and amendment might be
put in Immediately reducing the rate from 81 to
81 without in any manner jeopardizing the
safety OF either BILL since all opposition now ex-
listing TO a stock tax might become eager cham
Flonship of a measure cutting the in two
MORTGAGE TAX THE WEAK SISTER
Whether the Governor himself might when
the bills reached him for signature, do the same,
is open question. The fact not to be lost
sight of IS that in the legislature the mortgage
tax and not the stock tax has been the weak
sister and the Senate has insisted all the time
81 he He'd ing hst
the mortgage tax might easily be lost by the
wayside Now both bills will be passed. Sub
sequentIy one Of them might be modified, just
how no one preten6s TO say. but talk Of such
a modification furnished the main feature Of the
days comment. All such discussions, however,
were predicated on the assUmp tion that such
reduction would not impair actual revenue.
The argument that has made the greatest i'm
preston here is that the tax is large enough TO
furnish a motive for evading it. In his talk
yesterday Governor Higgins told the leaders that
there was 10 little sentiment along this line.
The object OF a tax would naturally be to raise
revenue. and If it were apparent that the size
Of the tax would drive brokers across the river
in such numbers as TO diminish the receipts of
the tax q lower rate might seem on the whole
the more rer.2unerative. II is doubtless on this
THAI the talk OF the 81 rate to-day was based.
AS far as present indications furnish any
ground Tor craving COUGlUSlOlAS, lllAS lCNNOtAOAi
is about all the financial interests can expect
from the present legislature. At the outset of
the session q deficit OF upward Of So,Ooooto.
largely in the shape Of a continuing deficit
caused by what seemed TO be a certain discrep-
ancy between receipts and expenditures, was
faced. To meet this the legislature set to work
TO find new sources OF indirect taxation, and Its
three months work has resulted in these two
measures
c-snr
The mortgage tax is in the shape of 3 mill
annual tax all new mortgages and all old
ones that were brought under the exemption
provided for in the measure. Half of this Is
TO go to the locality and half TO the State, and
the trainers estimate that. exclusive of the
revenue that may be drawn from old mort
cages the State will receive about Sl5Ooooo
the first year and 100000 in succeeding years
The stock tax is thought by Senator Raines
and other legislators TO be calculated TO yield
between 100000 and 100000, the figures
being based On the returns from the old federal
tax during the Spanish-American war Inc
insurance tax. re-passed this year, with the
necessary corrections to meet the decision Of
the Court Of Appeals. will add about $75oOo0.
and this is the answer Of the present session TO
the financial difficulties which it confronted at
the outset.
It is clear. therefore. if calculations made here
are correct. that sum between 100000 and
100000 has been permanently added to the
revenue of the State derived from Indirect
sources That there would have been a return
10 direct taxation except for the nrm position
assumed and maintained by Governor Higgins
IS certain He has taken the position that II
was the duty of the legislature TO provide new
sources of duty, but he has held his blue pencil
poised in readiness TO answer any legislative at
tempt TO return TO direct taxation with a mas
sacre Of appropriation bills. But with definite
assurance that the financial difficulties have
been solved, and that the real receipt from a
stock tax would not he impaired by a reduction
10 81 it IS not q rash prediction that before it
gets through the legislature will modify the
measure that has created such widespread crfti-
cism in New York City.
A fight against the passage of the bills after
last nights caucus is hardly to be taken seri-
ousIy. for the vote Of the majority, showing 6I
TO 10 indicates the overwhelming sentiment.
The caucus action is binding on all members Of
the party, and those who lead the fight against
the bill are concentrating their energies on
the reduction. The passage Of these bills next
week VIII end the serious work OF the session, a
joint resolution to adjourn April p is said TO
be in preparation, and nothing but undue pro-
longation OF the gas investigation and the Hook
er trial carry the session into May.