Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1905-06-15
NO CHANGE POSSIBLE BY PRES
EMIT LEGISLATURE,
SENATE TAKES NO ACTION
Refuses to Consent to Low.rate Tax
on Mortgages and Then Declines
to Pass Bird Bill to Exempt all
Credit Property From Assessment
A Long Debate.


improving the present unsatisfactory
situation with reference 10 the taxa
ton Of mortgages and other credit
forms OF property. The senate yesIer-
day defeated the Merton amendment
TO the Bird bill and then killed the
bill Itself. The votes Of Senators
Froemmlng AMI Stevens were cast Ill
opposltlon to any Legislation on the
subject, and al the senate otherwise
lined up close, these senators deter
mined the final peculiar result. SEN
ator Bird proposed 10 abolish all TAX
alton Of property known as credits,
including mortgages and similar EVIL
dences OF wealth. Senator Merton
proposed an amendment to tax such
property at the rate OF one-half OF one
Der cent. He made an extensive
argument In favor Of his measure. de-
elarInp that the original bill proposed
to exempt from taxation just That
property which IL best able TO bear
It's share of the burdens OF the OK
Oense OF government. He offered an
amendment, no said substantially the
same as that recently enacted In New
York tho result Of u careful and ex-
tensiye investigation and study OF
the problem by n commission during
two years. He calculated that real
property and such AZ is generally list
ed on the assessment rolls Is taxed up
on IN assessment Of perhaps not moro
than half or two-thirds OF It's real and
true value and that therefore 1t would
not no equitable to tax mortgages on
their full value mt the average rate
paid by all the general property OF the
state. 10 concluded that his proposed
rate Of one.half Of one per cent. was
the best ana most equitable rate to
be contrlved.
senator IIatten agreed with Senator
Merton that the right principle OF tax
alion was to collect for the burdens OF
government In accordance with abil-
ity to pay. Ho declared that the ex-
ponses Of maintaining the government
should be distributed among men in
proportion to their ability to contrib
ute. He agreed with Senator Merton
that credit property received the same
benefits from government that real
estate docs; 1t receives police protec'
tion, ii has tho benefit of tho courts
60 protect its rights and 1t ought to
he willing to pay It's just share OF the
bill He sald he would prefer to
make the rate the average rate for all
property In the state, but would sup
port the amendment as the best thing
to he gained under the circumstances.
Thla was substantially the position
as stated by Senator lIudnall, lie
said that the rate proposed was so
small that credit property would pay
Il and would not seek by mdlrectlon
and suhterfuge to shift the burden up
on the owner of the property upon
which the money was loaned,
Senator Whitehead vigorously op-
posed the amendment. edcIaring that
he wondered that senator could pro-
pose. In an argument for equal taxa
tion, that certain property be taxed at
the rate of one-half of one per cent,
when the average rate of the general
proprty of the state was II mills on
the dollar and local rates arc some
times ma high rs three per cent. He
opposed the proposition as one cal
Culated to increase interest rates and
drive money out of the state and inter
fere with the flow of capital into this
commonwealth for the Improvement
and development Of sections In great
need of capital, Senator McGllllyray
spoke In favor Of the amendment and
Senators Bird and Kreut2or In oppo.
sltOn, Senator Bird made tho argu.
ment that 1t is the settled and inoyi-
table rule that money commands a net
rate on income and II the process OF
loaning money Is subjected to any
expenses by reason of taxes or other
wise II Ia inevitable and must DO 80.
that the rate charged for the loan will
be increased The borrower must pay
In the end all charges and taxes
whatsoever on the loan, or he will not
be able to borrow the money he
needs.
The vote by which the amendment
failed OF adoption was as follows
For the amendment Hatten,
Hudnall. Martin, McGillivray, Merton,
Munson Noble, North, Stonial, Stout,
Wilcox, Wylie--lS.
Against the amendmeGC--Sena
Beach, Bird, Burns. Froemming, John,
son, Kreutaer, Rogers, Roehr, Rum.
mel, Sanborn Smith, Stevens, white
head. Wipperman, Wolf. WrIght--l6,
On the vote on the final passage Of
the unamended Bird bill the vote was
lined UP the same with the cxcptions
of Snators Stevens and Froemming.
Those who opposed the amendment
with these two exceptions, voting for
the bill, and those who favored the