The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-02-22
THE u0RTGAGE TAN Law.
some OF Its Pecuiiarlties. It's Unequal.
tiles ami Its Expressions.

70 THE EDITOR or TIE SCS SIR First
The fact that mortgages are taxed Of all. as
they represent the paper values of the real
values. which are already taxed ssreal estate.
Thus both the imaginary value on paper
and the real value. the real estate. are taxed
at the same rate. which was last year $500
81 57e96 per stoO on capital, or more than 10
per cent. OF a persons income Nho has his
money invested in origages.
For example the existing value OF n piece
of real property is s20.O 900 and the mort gage
Is SO. 600. thereby making. under the present
mortgage tax law. q taxable value OF $50, 900
when only $50 900 really exists
Second: All real estate. on the average.
value in the city OF New York has Increased
in It's assessed valuation since 1908 By s2bo.-
Oia o59
Third: The amount or tho assessed real
values IN New York was s5,0l5. 4eS. 10 in the
yenr 1904.
in dollars and cents, the wholesale in justice
that is asked to be done by this our pres
ent mort gage. tax law, Halt OF the above
amount, which Is certainly fair representa-
ton OF the values OF mortgages in New York,
Is 81. 500. 7al $50 80. which at laet years mort
sSa' t4s. 6ie.s2 should have been collected as a
tax on mort IA ges ia The city New York alone
Another popularity shows that only about
per cent or less o! these mort 90 geS can be
collected on. and those that are collected on
are owned principally by widows and orphans
after the death OF the hreadwinner. thus
making it an easy proposition for the tax
sixth. More peculiarites are the methods
OF avoiding this tax. Some OF them are sim
PLY TO buy stocks on margin. thereby incur
ring sufficient indebtedness 10 onstand all
personal possessions (which include mort
gages) or by temporary transfers Others
are buying free aud clear real estate and
mort ga ging the same going on the mort gage
bond selling. but still remaining on the bond
repeating this operation until enough in
debit dness has been acquired TO cover the
personal possessions.
sonal property valuations have decreased
SIS. Isl. "a In ono year since oo2. People must
be getting to understand this law.
Eighth Another odd feature. 10 saw the
least Is that 81 per cent OF the people being
able al present 10 escape paying any tax on
mort "a ges. viii not listen 10 the making OF
modified form. rs In all probability they are
all afraid that they could not escape a new
law. Their cry is that there should be no
tax on mortgages. and everything goes TO
show that they are right. but what will the
other per cent. do
ninth, Then there ia our state Govern
ment which needs revenue and must have IL
but seems unable 10 frame an equitable law
Tenth Now. here between these two power
ful interests the 81 per cent OF mort ga 90
holders on one side and the LEGISLATURE on
the other. are placed tho poor little 3 per
cent Of mort gage holders. which is COMPOSED
principally OF widows and orphans and estates
What chance do they. the per cent. stand
Eleventh Most peculiar 1t Is that law
that was made to protect the widow and
them into the hands Of ne assessors, and In
such a manner that there is no escape for
Just law. Generous people Of The o. Der cen,
majority Down with the minority. no mat
ter II they are the mothers. wives. sisters and
WILLIAM II. &. LEyERICH.
BRooKLYN. Feb. q