The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1906-03-05
MONDAY. MARCH S. 1905.
They say best men are moulded out
Of faults. Measure for Measure.
rhe Mortgage Tax.

The Mortgage Tax.
rsrh, months ago, the mortgage tax
law went into effect In New YORK, ana
the Sun has collected number OF ex-
pressions MS TO the practical operation
Of the law. The first witness is II. s.
Donaldson, Of Buffalo, secretary OF the
Erie County Savings Bank. and ne tes-
tines that:
Since July 1, 1906 our bank has taken
forty-one new mortgages; business
were in its normal condition we ousht
to have put out that number IN one
month. The total amount OF these mort
cages is t51i.o0o and four OF TINS NUM-
Der amount in themselves to SS2l.5e'.
since July 1. 1905, our bank has been
oslEed to add one-half OF per cent.
Increase to the rate of interest on mort
gnge loans. think that you must ad-
NIT that UP to this time this hll has
not produced the revenue expected,
Next comes ex-Judge Watson T. Dun-
more. OF Utica, who relates this piece
OF history:
ION July l.. when the law took effect,
the Savings Bank, of Utica, the Utica
Trust and Deposit Company and the
(
Immediately advanced their rates of in
,erest one-half OF one per cent. and, II
am correctly informed by those con-
Quoting those institutions. there has not
been loan made which prior to July
l. 1905, would not have been made at
rate Of interest at least one-hait of
per cent. lower than the rate exacted."
From Rochester John S. Bronx con-
tributes this interesting information:
Since the mortgage tax law went into
effect have personally drawn at least
twenty renl estate mortgages on which
the rate of interest was 5l-c per cent.
Had ii not been for the mortgage tax
law the rate OF interest on all OF these
loans would | am certain, have been
per cent. In this county many real
estate mortgages are being recorded with
the rate of interest 5 Ia per cent, but
until the mortgage tax law went into
effect that was seldom the rate OF in
terest."
This is the experience of the Oneida
County Savings Bank, as told by John
r. Edwards, its president:
Prior 10 July 1. 1905, we made all loans
from $500 TO $500 at 5 per cent. but
since have made all loans at Sic per
cent, feeling obliged to do so in order
that our earnings should be sufficient to
continue to pay 31-a per cent. to our
depositors and have little surplus for
protection. having only accumulated
about $4,000 OF surplus In the past ten
years on nearly 100000 deposits so 1t
cannot be charged that we are piling
up large surplus with the rate of In
terest charged The borrower with us
is person owning farm or a building
or buying moderate priced house, and
as long as there is any kind OF tax on
mortgages, the borrower will be obliged
to pay 1t In interest, or some other
way"
: Now for word from Herkimer,
through, the lips OF w. C. Prescott:
THE current rate OF interest on mort
gage loans at this place. has been
per cent, for. some time hut ] have
not drawn aIy. mortgages since July I,
1895, for aliess ratio OF interest than 51-2
per cent. In nearly every case the bor-
rover has to pay the increased rate of
one-halt per cent"
Let the borrowers side by told by
Bishop Cotton. of Buffalo, who SAYS:
In regard to the matter of the tax
on mortgages, l consider the tax very
burdenspme and shall be glad il the
law be repealed Our Struggling congre-
cations must needs raise mortgages on
their churches to help them establish
them, and they have all they can do to
meet the interest. With this half per
cent Increase the burden heretofore so
heavy becomes unbearatae. Everywhere
so through the diocese. which covers
sixth part OF this State, ] find the
dissatisfaction OF pastors and people with
this tax. and the wish and hope are ex-
pressed for It's repeal"
This is proof upon proof But is any
proof really needed? The consumer al.
ways pays the tax, We may talk al,
we please about taxing the money lem
der, Blu, the borrower is the man who
pays the lenders tax. II Is an Injustice
1t Is a hardship; 1t retards progress; ant
after all the money lender sometime.
lodges, even after he has saddled tn,
tax on the borrower.
We hope to see the whole wretchec
system reformed in Virginia. We wan
to see system under which all propcrt,
will be assessed and taxed at Its fai
market value and tho tax on debt
abolished.
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