Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1911-03-09
AVERY DEFnNDs ms BIIIA.l
Makes Strong Argument and Rcasts
the Governor.

my bill for the registration fee tor
real estate mortgages and thereaf-
ter exempting them from taxation
is that 1t shows that the governor
is convert to the idea Of a regis
tration fee for real estate mort
cages. The principal objections to
the governors recommendation are
that 1t does not relieve the princi>
pal objection sought to remedy my
bill, viz, the double taxation Of pro-
perty, and leaves the same unfair
and unjust discrimination between
home and foreign capital that COM
pete In the same field for invest
ment. Home capital bearing the bur-
den OF taxation averaging $1.OO per
500 throughout the state, while
foreign capital pays none at all. Ev-
cry advocate Of reform in taxation
is striving to avoid double taxation.
Under the present law municipal
bonds, mortgages owned by banks
and corporations doing o loan busi-
ness are practically exempt from tax
alton while the individual who makes
the same kind of o loan on the same
terms 10 compelled to pay taxation
on the face value Of his mortgage
and the owner Of the land on which
the mortgage rests also pays taxa
ton on the full valuation Of the
land plainly double taxation. There
can be no question but the man who
is 50 unfortunate as to have mort
gage on his farm is less able to pay
the burdens Of taxation than the man
who has no mortgage, yet the law
makes no distinction between them.
"For reasons known to many 1t
is impracticabIe to deduct the amount
Of mortgage from the assessed value
Of the land for the purpose Of tax
: alton and the only relief that is safe
and practical is to relieve the mort
gage from taxation and rest on the
theory, which ! think is reasonable
that capital will invest more readily
and at lower rate Of interest in
mortgage except from taxation than
one that is not. The exemption Of
municipal bonds and the fact that
they are being negotiated at from
4 to 8 per cent is practical illus
tration Of the result Of what would
result were mortgages exempt from
taxation. At present the banks, loaT
corporations and the man who doei
not return his mortgage are the onl!
| ones who can afford to invest II
mortgages Why should not the or
4, binary individual who is never
large money lender and usually
moderate one but who resides Il
nearly every community in Kansas
enjoy the same privilege? Wh'
should not home money be intereste'
and encouraged to invest in HON
mortgagesg
"Why should not money left b
will and handled by trustees for tn
benefit OF minor heirs be encourage
to invest In a safe security Of thi
kind, exempt from taxation rathe
than enforcing the burden Of taxa
ltion from which there is no escap
\ (for them) and then the additions
burden of inheritance tax alsoY In
stead OF passing laws to prevent Kan
sas people from being victimized b
Wild Investment schemes in mimi
stock and fake corporations why no
encourage Kansas capital to inves
in Kansas real estate mortgages an
build up Kansas institutions; thi
would unquestionably lower the rat
Of interest in Kansas.
I'm addition to this, Kansas CAPT
tai would be loyal to Kansas an
would naturally prefer to remain 4
Kansas rather than seek investmen
in foreign field while foreign CAPT
tai as has been shown within tn
a -,