New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-03-28
REPLIES TO MR. WADE.
Real Estate Nan Disputes accuracy
Of Statements.
To the Editor Of The Tribune.

To the Editor Of The Tribune
Sir' IN view Of the statements made yesterday
by Assemhlyman WADE. chairman OF the Assembly
Committee on Taxation. while The amendments 10
the Mortgage Tax bill. imposing a recording tax
instead Of an annual tax on mortgages. were under
discussion by the Assembly. I deem It proper 10
point out publicly the Inaccuracies Of most Of these
statements.
am Informed by telephone from Albany that his
statements are correctly reported by the papers
Mr.. Wade is quoted as saying that the money
lenders are taking mortgages on demand and not
paying the tax, waiting until June 30 next to see
II It is necessary 20 pay such taxes but expecting
that the Bowling bill will 60 through. and they
viii escape payment"
The so-called Page-Dowling bill, which has the
general support Of the real estate people and which
was the bill under discussion. contains these pro-
visions:
Section e All taxes imposed by or which become
OF June 1905, pursuant 10 Chapter "a Of the laws
o. 1910; shan be imposes. become due. he payable
uted n the same manner and With the same force
S u fIlect as II this act had not been enacted
utirg and enforcing any such taxes chapter 729 of
thing in this act 10 the contrary notvTitnsTarSng
Sec q This act shall take effect July l. 1906.
The effect of these sections is to keep the pres
ent law in force as to all mortgages made between
July 1905, and July l. 1906. until the taxes i'm
posed by that law paid. This will prevent the
Tor a short time from escaping the payment OF the
annual taxes, and will put the holders Of such
mortgages upon the same basis as the holders OF
those which the taxes were paid Up 10 july l
1906. al the time the mortgages We're recorded.
Mr.. Wade has called attention to the fact that
the balance Of the tax on instalment or building
loan mortgages. on which the tax Is paid only fer
the amount advanced at the time OF recording does
not become payable until July 30 This was evil
oenty an error in the final copy Of the bill. as all
the other items Of tax not paid ct the time OF
record are payable June 30, and there vas no
reason for this distinction. On this point Mr. Wade
mas proposed an amendment which is proper and is
satisfactory 10 the real estate people.
II this bill thus amended is passed the state
will collect the taxes upon all mortgages made be-
tween July !, 1905 and July !. 1906. the rate Of
one-half per cent per annum from the date Of the
advances Of the principal on such mortgages up 10
July l. 1905 IN other words, the taxes which have
heretofore been held back will all become payable.
IN the OF the short time mortgages on July l.
and Of the instaluent, or building loan mortgages
on July 80.
Mr.. Wade is also quoted as saying:
LAST year, We had finally placed a provision IN
being compelled 10 pay the tax. The opposition I'M
would have to hear the additional burden OF the
represenaTe of the Allied Reai Estate 6R6 5ls
Association said: Take out that provision and we
will support the bill.
Edward Van Ingen since deceased, was at
that time president of the Allied Real Estate In
terests. and be Is undoubtedly the person to whom
Mr.. WADE refers. I quite tished either that
Mr.. Van Ingen never made this statement
that Mr. Wade misunderstood him. Mr.. Van Ingen.
on behalf Of the real estate people srenuOusly OPP
posed the annual tax measure and consistently ad-
vocated a recording tax. He did 50 until the end
Of the session and until the Governor had finally
signed the present bill He had no authority from
the persons whom he represented 10 take any
other position. his letters and public statements
fully verify this assertion and the persons who
were associated with him in this movement can all
testify the same effect
Mr. Wade has also offered amendment to the
proposed Recording Tax bill providing that no
agreement should he made whereby the mOrtgageOr
should pay that tax under penalty of forfeiture Of
the PRINCIPAL This, in my Judgment Is a very
uuwise provision, II IS likely TO have the same
effect as the present law and 10 increase. in many
cases the rate Of interest the amount Of the
tax II will also have the tendency TO throw a
doubt upon the validity Of each mortgage and 10
deter investors from entering the mortgage mar
ket
have talked with a large number Of borrowers
on mortgage. and they ali agree With me that II
Is 70 their interest that this so-callec usury pro-
vision should be omitted rom the amended law.
3. AYMAR SANDS,
President Allied Real Estate Interests.
New York March 1895