New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-03-02
FAVOR RECORDING TAX.
REAL ESTATE MEN HEARD.
Strong Objections to Mortgage
LeUy Made at albany Hearing.

largest deieE1-
tions Of the session came TO Albany to-day "a
demand the repeal of the present Mortgage Tas
law and the substitution of a recording tax
They overwhelmed the joint Senate and Assem-
bly, committees on Taxation and Retrenchment.
which held the hearing. completely filling the
Senate chamber and overfowing into the cOrri-
doris. ABOUT six hundred representatives Of real
estate interests attended. two hundred from
New-York City.
Before the hearing a committee waited on ths
governor to present to him memorial as 20
the repeal Of the existing law and the substitu-
tion Of recording tax OF one-half Of l per cent
The governor received them in the Executivs
Chamber He assured them that IT was outside
his province to dictate any action to the Legis-
lature and said
last ne 1ortgage Tax bin came from the legislature
from except the general one that the sest %
b fbseTnIent should be provided for In my message
@ Hre a 1alr trial perfectng H. if necessary befors
and probably the chief OF these fndamental nyiT.
TP1s T IS tne uniform and effective taxation OF thas
property understand that the bin You favor Iss
vocate the general exemption oF rSortss as t f a1
txaton 20 Il Is conceded that the general property
be 5n us operations and that IT should not
stand on common ground. If any amendTcen1+ ~
mn oIT Tax law reaches me assure Won that ts
VIII nave my open and unprejudiced consideration
w e4'Ocdtes or the present law appeared bee
fore the joint committees. The delegates baa
the argument all their own way Thev declare,
that the mortgage tax a vicious form OF q
vicious system. Indirect taxation i'm it's WORST
shape The tax. nOminally to be paid by th.
lender really came they said from the borrower
IL aHected the poor man. even TO the man who
rented a small tenement. No influx OF roonex
for Investment had resulted from the law. and
It's opponents asserted that not as much beneht
mad raGT rIfo1@
tax system OF the state was declared to be in
need Of repairs.
william n. Cohan. OF New-York. urged that
commission be appointed to take up the entira
tax question and devise proper laws.
Lawrence WELLER, as vice. president OF the al
lied real estate interests told of their organiza-
ton Of real estate men. money lenders bor>
rowers and tenants all over the state. 1t was
no body of tax dodgers. as had been asserted
most of the members were property owners.
comparatively poor men, vitality affected by thu
existing laws. In New-York City. he said, senti@
ment was all for the repeal of the law. Tha
burden imposed by the tax had been found to-
fall on the borrower Building operations had
been checked. and the interest rate had gone I'D,
Eight months trial had shown that the measurs
accomplished most of what il should not DO said
he. He went
N While lie undoubtedly the he majority Of our members
are represented believe that there should be no
eessity which exists on the part Of the state OF
finding sources of revenue for the support OF gov
for finding this revenue rests The Legislature
urge the 'perfectiu of the present law as reconI-
nended py Governor Hlggtns IN his annual mes
of one-half Of per cent on all mortgages re-
local taxation We know that such a tax viii fur
nish all the revenue which the state needs-mora
than it needs at the present time we believe that
sHch a tax may be regarded not improperly. q
lee charged 9y the state for af1ordng 70 certai1-
interests special guarantee or protection with
gard TO their mortgages We know that the in
the present law will be satisfied with such a change
" We kn9W that p If such change els is made The Eats
one-haIL or per cent back TO the rate which pre-
change is made there Will be Increase in
Last year the state had not sufficient revenuei
this year II has sufficient revenue Last year II
what would be the effect OF the operation or an
59 annual mortgass tax law; This year We know ina
tended that the lender should pay this tax; this
which will accomplish this result and that in
evttably in every case the borrower must pay tho
Misunderstanding on this subject We don't urge 90
the repeal of the present law. We believe il a vast
and We appreciate the conditions which exist in
large taxes at high rate en- their personal prop
the present law.
Ex-Judge Cohen condemned the law as a law
yer and as citizen 1t had been comparatively
a failure. he asserted Not as much had been
derived from it was expected. The stock
tax, proper form OF taxation. had produced
much revenue but people in some way managed
TO dodge the mortgage tax II hampered growth
IN real estate transactions and so was detri-
ment 10 the state, especially the large cities.
He said in part:
Laying aside the question to whether the
tax there be question that the tax comes
out OF the land That more OF the expense or
government should be squeezed out OF the land
than is yielded Is pdlpably unjust. This
IS ineQuitable and breeds spirit OF discomfort IL
is shocking TO a sense OF fair play that a citizen
who Is conservative and puts his earnings IN real
estate already excessively taxed should be taxed
further. while the man who Is less cautious and
puts his savings into personality. often with
10 escaping taxation. should succeed IN that con-
temptible effort.
that IL is the duty OF every citizen TO paw
his ratable share OF the expense Of government, 50
long should IL be the aim OF the Legislature not to
make easier a means OF escape TO those ready
throw up its hands and cannot reach Ona
class OF property, and therefore add uniusty 10
the burdens OF another class that be reached.
Lawson Purdy, speaking for the New-Yor<
Tax Reform Association. said that from statfs-
tics collected by the association it was proved
that in Massachusetts in 1904 and 1905 the in
terest rate was SOB per cent. while in Nevv-Yors
il nearly per cent He produced statistics
70 prove that the mortgage tax increases the
interest rate by more than the amount OF the tax
over what II would be IL the mortgage We're ev-
empt