East Oregonian : E.O. (Pendleton, OR) 1888-current, 1910-12-09
Business Men Favor Exemp-
ton OF Mortgages Under
Amendment.
PRESENT PLAN WORKS
DOUBLE TAXATION
Assessor Strain, Who Inforces Pres
ent Law, Admits Injustice But
Makes No Recommendation-Co
ty Judge-elect Will Investigate
County's Powers Under Recently
Enacted Amendments.

Would it be possible for the peo-
pie of Umatilla county to enact a
measure providing that mortgages be
exempted from taxation within this
county? Would the people of this
county like to enact such a provi-
sion?
These are questions that are made
germane by the fact that at the cleo
ton on November the people Of the
state adopted a constitutional amend
ment which was generally known az
the county tax measure. The follow
ing is the exact word of the
amendment adopted:
Tax Amendment.
Article TX of the constitution Of
the state of Oregon shall be, and
hereby is, amended by inserting the
following section in said Article TX,
after section l and before section 2
and it shall be designated as Section
la Of Article TX.
Section la. No poll or head tax
shall be levied or collected in Oregon;
nc bill regulating taxation or ex-
shall become a law until approved by
the people of the state at a regular
general election; none of the restric-
tions of the constitution shall apply
to measures approved by the people
declaring what shall be subject to
taxation or exemption and how it
shall be taxed or exempted whether
proposed by the legislative assembly
or by initiative petition; but the peo-
pie of the several counties are hereby
empowered and authorized to regu-
late taxation and exemptions within
their several counties, subject to any
general law which may be hereinaf-
ter enacted"
Regarding Mortgages.
Asked as to whether in his opin-
ion this county should exempt mort
cages from taxation, Assessor c. p.
Strain today said:
81 do not wish to be quoted as
making any recommendation in this
matter. But as to the facts under the
present system l will say that the
present plan of taxing mortgages. as
is required under the state law, means
double taxation. The lender and the
borrower are both taxed for the same
wealth. Furthermore, it places a To-
cal money lender under a handicap
as compared with an outside man. For
instance, a man from Walla WallA
may loan money here and have his
mortgages exempt from taxation. A
local mans mortgages are taxed and
at the present time that means two
per cent to the money lender living
in Pendleton. AS far as the assessors
office is concerned it would save u
practically a months work each year
If mortgages were exempt"
Some Other Views.
That the present system Of taxing
mortgages causes injustice through
providing double taxation and also
tends to drive local money from this
county is the opinion Of G. NJ Rice.
cashier of the First National bank.
You may quote me as saying that
the present system has resulted in
making the interest rate on mortgages
the same as the bank rate" said Mr..
Rice. This is not right, for the mort
gage rate should be at least one per
cent lower than the bank rate.''
Another man with decided views
upon this subject is James n. Gwinn
Of the Pendleton Abstract company.
According to Mr.. Gwinn, Umatil,a
county's practice Of taxing mortgages
has driven at least q quarter Of a mil
lion dollars out of this county"
j. w. Maloney.
II have always claimed that the
practice OF taxing mortgages means
double taxation and is wrong" said
County Judge-elect J. w. Maloney.
II am in favor Of exempting mort
cages. AS to our powers under the
amendments passed, am not famil-
lar, but 1 am going to investigate the
matter. may write the attorney
general for an Interpretation of the
amendments and ask him TO indicate
what may be done in this matter"
t. G. Montgomery.
That the present plan of making
both mortgagor and mortgage pay
taxes upon the same property is
wrong is held by T. C. Montgomery,
cashier of the American National
bank In the view OF Mr. Montgom-
cry the exemption of mortgages from
taxation would work for a lower rate
of interest and would in the end aid
borrowers as well as lenders. But the
greatest benefit would be that the ex-
emption would tend to keep local cap
ital at home and would not force It
to offer its usefulness elsewhere,