New-York tribune., 1906-04-20
the function of vendor and common carrier, 50
far as that separation is legal and practicable.
THE RECORDING TAX VETO.

The reasons given by Governor Higgins for
returning the bill for recording tax mort
cages TO the Assembly without his approval are
such as will probably commend themselves to
the judgment of the great body of the friends
of the measure. They might not. indeed, con-
slider the defects which he points out so serious
but that If they had been in his place they
would have signed the bill. and left what they
would consider mistakes of detail to be cor
rected later or endured. Yet they must con-
cede that they are defects and should gladly
accept the Governors suggestions in drafting
a new bill. The antiquities pointed out by the
Governor might involve great uncertainty, in
convenience and injustice in the enforcement
OF the law. Loopholes which would permit the
recording of mortgages for enormous sums
without payment of either the annual the
recording tax are certainly serious enough TO
be corrected. On the large question of policy
presented by the provision for the optional pay
ment of a recording tax on old mortgages and
bond issues we are inclined to think that the
Governor is right. The fight on the present tax
has been based on the fact that it burdened the
borrower and did not succeed in reaching as
intended the accumulations of untaxed person
atty. AS the Governor SAYS:
There is a vast difference between securing
exemption from taxation on prior mortgages by
paying annually a tax of half of l per cent.
which may continue for q lifetime. and SeCur-
ing such exemption by paying a single record
ing tax of half of l per cent. When mortgages
are exempted from taxation it should be done
with regard to the rights of borrowers to whom
the rate of interest has been fixed by the rate
of taxation prevailing when their mortgages
were given, and lenders values should not be
unwarrantably enhanced by legislative act.
The veto, of course, is great disappointment
10 those who have been so earnestly striving to
secure substantial reform in our methods of
taxation AT tho iS
prise. The bill was pushed to passage with
the frank avOwal that some OF its provisions
might not meet with Executive approval, even
though the main principle of the bill were to
be accepted, and that new bill might have
to be passed. Though the Governor has re-
Trained from declaring his views on the gen.
eral subject. it is commonly believed that he
personally preferred to have the annual tax
continued. Yet his veto is one of suggestion;
he has said that he would consider any i'm
provements on the present law with an open
mind, and there is reason TO believe that a
bill corrected to comply with his expressed sug-
gestions would receive his approval.
There ought not to be any doubt OF the pos
sibility Of passing such a bill. The measure
originally had a good majority In both houses,
which was able to defeat ali attempts at de-
lay on the plea of learning the Governors
possible objections and meeting them. Proba-
bly, the majority in the Senate make its
will effective with reasonable speed In the
Assembly the Committee on Rules is now in
control, and that fact complexities the situation
1t happens that three of the four Republican
members the Speaker, MIR. Moreland and Mr..
Hooker, voted against the bill, while Mr.. Prem
tice favored it At least one of the three would
have to be converted to report the new bill
with the aid of the two Democrats
Gov 10
more likely TO come from an agreement Of the
Republicans in the committee They are all in
sympathy with reform and responsive to public
sentiment, and it Is to be hoped and expected
that even if personally uncOnvinced of the wis
dom of the measure, they will not use their
extraordinary power arbitrarily to prevent the
Assembly from voting for the perfection, In
accordance with the Governors suggestions, of
a measure which majority of the members
of both houses unquestiOnably favor. new
bill should at once be drawn and pressed to a
vote in both houses.