The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-03-03
KANSAS CITY HAS TO DO IT.
A. w. Stubbs Writes Interesting Letter
on Its Fight for Life.

Thomas of Wyandotte has received
a letter from A. w. Stubs of Kansas
City. Kan, commencing his stand on
mortgage legislation. Mr.. Stubs
makes the following plea for the
Wyandotte metropolis in his letter adj
dressed to the State Journal:
''To the Editor of the State Journal:
"I am well aware of the fact that
Kansas City, Kan, has made many de-
mands upon the legislature of the state
for the enactment of laws for which
there may be no demands in other To-
calities, even in other cities of the first
class.
that is in close proximity to another
CITY in another state. On this account
we are compelled to fight for every
inch of progress made. We have to
compete for every new resident as well
as every business enterprise with the
Missouri city. We are even denied the
privilege of press dispatches for a daily
newspaper and bear the unique dis
tinction of being the only large city
in the world thus handicapped.
''In spite of difficulties, We have
made a steady growth, but nothing
like we should and would have made,
but for the unfortunate laws that drive
surplus capital from the state.
tOur security for loans is just as
ample as that of Kansas City, Mo,
clause in Kansas mortgages frightens
capital, and the lender takes his money
to Missouri, where, under a deed OF
trust, if foreclosure becomes necessary,
he can obtain possession of the prop
ertv within sixty days. He can form
a fair estimate of the safety of loan
under such conditions, whereas he
knows little about what property will
be worth in two or three years from
the time he begins foreclosure pro-
ceedings.
In Missouri, property is taxed far
below it's actual value. in fact, at about
40 per cent. In Wyandotte county
thousands of properties would not sell
for as much as the assessed valuation.
A party owning a home worth $4,000
on which there is mortgage of $780,
pays $50 tax on his property In order
to realize per cent on his money, the
lender charges 8 per cent on the $500,
because he must list his mortgage for
taxation at its face value, and pay
S144O taxes IF he charges per cent
he realizes only 1-5 per cent interest
after paying the tax of 80 per 500.
On a f1ve-year loan the borrower has
to pay $72 more tax than he would if
the mortgage were not taxed, and he
actually pays tax on $4,000 the value
of the property plus the face of the
mortgage.
would it not be better for a bor-
rover to pay 81 once as a filing fee
under the proposed new law than to
pay S1440 or SIG year in higher
rate of interest for five years?
"Can the rich state of Kansas af-
ford to collect half a million in reve-
nue. per annum from people strug-
Cling, under the weight of mortgages,
to pay for their homes? OF course,
there are mortgages given on other
classes of property that pay share
of this revenue, possibly a large share,
but would it not be better for the state
to make a slight raise in its levy to Sc
cure needed revenue, and thereby levy
on all property, unincumbered as well
as incumbered, than to raise even
100000 from those who, of all, are
least able to pay?
TN order to successfully compete
with Kansas City, Mo-, it is imperative
that Kansas laws be so amended as
to conform as nearly as possible to
those of Missouri Make it easy to
collect a debt as well as to borrow on
low rate of interest and the increase
in investments of every description
will soon make up for losses of reve-
nue. now obtained by taxing mort
cages.
suggested can not be given, it would
relieve the situation greatly if the
property owner were only required to
pay taxes on what he actually owns
after he has mortgaged his property,
viz: The remaining equity. That is so
in California and some other states.
"If the borrower was required to pay
taxes on mortgage note also, he would
at least get off with one full valuation,
instead of one and one-half, or what
ever the mortgage amounts to, in adj
dition to the value of the property. If
conditions in other parts of the state
are the same as in Wyandotte county
the legislature will certainly enact
some law for the relief of borrowers
before adjourning So long as other
states offer better conditions for lend
ing money, Kansas can not hope to
secure capital at a low rate of interest,
which is very desirable in communi-
ties where capital is needed for build
ing and development purposes.
"a. w. STUBBS.