The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1907-01-03
Judge Ludwig of Milwaukee De-
cides That Assessments
are Invalid
FAIL TO TAX MORTGAGE LOANS
Milwaukee Jurist Holds That Entire
Assessment of States Cities is
Invalid and Litigation is
Expected to Follow

One of the most important de-
cisions on taxation ever given in
the state was handed down by Judge
Ludwig of Milwaukee, on Satur-
day in the case of the ST. Fran
els Park company against the city of
Milwaukee. The effect of the decision
will not only extend to the city of Mil
yankee, but to every city in the state.
Under the decision handed down by
Judge Ludwig it was held that the
last four tax tevies made in the cities
of the state are void for the reason
that mortgages we're not assessed as
provided under the mortgage taxation
law. Following the argument in the
decision 1t is held that all cax certifi-
Gates issued since that time are void.
The important consideration of the
decision, however, is that the vex-
atious mortgage taxation law, which
has presented intricate problems to
every tax commissioner and tax asses
sor IN the state, is finally to be tested
before the Supreme court as to its
constitutionality. The case is to be
appealed to the Supreme court.
The case hinges around the consti-
tutionality Of the mortgage taxation
law. The ST. Francis Park company,
the owner Of large amount of real
estate in the Seventeenth ward in
Milwaukee, some of which was SUBJ
Ject to membranes, brought suit
Ia the Circuit court to set aside the
assessment Of 1904 on its property for
the reason that the assessor intention
ally omitted to assess mortgages.
This assessor, it seems, was following
the instructions he had received from
Tax Commissioner William George
Bruce, of Milwaukee, who had taken
this course uponathe advice of thirty
lone local lawyers who were of the
opinion that the law was unconstitu-
tional.
But another phase to the question is
presented even if the Supreme court
holds the law unconstitutional. IF
the law is held to be unconstitutional,
then the old law, which held mort
cages to be personal property and
which provided that they should be
taxed as such, must be reckoned with.
This law would also render invalid the
tax assessments since the adoption of
the mortgage taxation law, for the
reason. that the mortgages have not
been taxed, as personal property, it is
claimed.
AS question of dollars and cents
the decision, however, is not import
ant. Even if these assessment are
held to be invalid, the people cannot
recover money, for the reason that no
can be recovered. The powers of rer
assessment of the city must also be
considered.
Its effect on the present assessment
is one which will have to await the
decision Of the court. If the mortgage
taxation law is held to be constitu-.
tional, the assessment will in all
proba bility be declared void. 1t is
claimed that if the law is to be held
Unconstitutional that the old law has
been complied with in so far as the
mortgages have been taxed. Under
the present assessment it is claimed
that the mortgage is an interest in
the property, and has been assessed
as such.
"We now come to- the question
whether the assessment is void for
the reason that mortgages were not
taxed as personal property as they
had been prior to 1904, said one of
the leading lawyers of Milwaukee in
speaking Of the decision. "The tax
commissioner and assessor testified
that they did not assess mortgages as
personal property in 1904. This was
done under authority of chapter 378,
which expressly provides that mort
cages shall be considered for the pur-
poses of taxes as interest in real
estate. Since the enactment Of that
chapter mortgages are not taxable as
personal property in the state of
Wisconsin"