New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-05-23
TEE REcoRpIxG TAX LAW.

Governor Higgins's acceptance of the record
| ing tax bill will bring great qualification to a
large number of citizens There cannot be the
! slightest doubt of the popularity of this meas
ure The Governor himself says that he has
had no other bill before him "Gn which apparent
public opinion has been so emphatically and
"insistently expressed That public opinion has
been ably directed by the organization known as
the Allied Real Estate Interests which deserves
great credit for it's intelligent and persistent
work for the reform of mortgage taxation. But
it cannot be said that it created the sentiment.
IL sent ont few agents. and those not men Of
the influence or power to meet opponents and
convert them 1t simply organized and made
effective the public opinion which was created
by events and ready TO manifest itself at a
favorable opportunity.
a campaign in which The Tribune took a
leading part was carried on for years to show
the people the iniquity of the taxation of mort
cages as personal property. That tax actually
fell on only a small portion of the mortgages
held by those least able to pay the tax. and
amounted TO a 30 per cent income tax on them
Everybody was pretty well convinced of the
folly and wickedness of that antiquated scheme
when the annual mortgage tax law was passed
last year. That was a measure far more just
than the one which it replaced. but it was
practical demonstration of the truth which the
opponents of mortgage taxation had long been
preaching-that the borrower paid the tax. In
terest rates went up One-half of one per cent,
and the great army of borrowers were converted.
They had thought of the annual tax an i'm
post on the mOneyed men, They found it was
an impOst on themselves. So when the move
ment for the new law started even from
rural districts. as well from New York, Buff
falO and Rochester. came the demand for it
which has now met it's complete response
The Governors attitude on this question is
highly honorable and must endear him to the
people as a sincere and conscientious exponent
of their interests. He frankly preferred the
annual tax. But he recognized his position as
the Governor of the whole people, bound to make
their will effective when ii Enthusiastically
expressed in behalf of measures which he could
cOnscientiOusly approve. He vetoed the bill once
for technical defects. 1t came to him in its
present form backed by twO-thirds majority in
both houses, and he feels that such a vote should
he conclusive on his judgment. The new law is
q near approach to- and on the whole reasOna-
bly, satisfactory substitute for. the complete eX
emptiOn of mortgages which theory demands.
AS lands are not practically taxed to their full
value. the small recording tax, even if consid-
cred a tax on property. rather than an mpOst
on a transaction. does not really amount to dOu-
BILE taxation. The operation Of the law is likely
to prove a great boon to the real estate business
and to invite large investments in loans, to the
easing of the market, and ultimately to a sub
stantia lowering of rates. We believe the Re
publican party hereafter will have reason to
take pride in this achievement