Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1913-03-12
MAINE LEGISLATURE.
CONTINUED IRON page -


anyone will offer for that money.
| asked the register of deeds of our
county if IL was true that there was
any reduction since this law went into
effect, and ! have his reply in which
he states:
Pennington, Me. March 8, 1913.
Honorable II. :. Wing.
Kingficld, Maine.
Dear Sir
The rate of interest on mortgages
recorded in this office ranges from
three to eight per cent, but about all
are at six per cent. | do not see any
particular change in the rates for the
past few years.
(Signed GEO. d. CLARK,
Register"
Representative Putnam, this morn
ing, called the register of deeds on the
phone from Cumberland county, and
he says: NO particular change III
rate of interest on mortgages in last
Two years.
No change in Cumberland county.
In Penobscot county the register says
he can see no change in the rate OF
interest of the last two Years The
same thing is true in Aroostook county.
The proposition resolves itself into
this: We have made an exemption
10 a class of rich men in this State.
They have not lowered their rate of
interest. They have escaped taxation
TO the amount of S27f 100000. Shall
that loss stand? Shall that burden
he placed upon the other taxpayers of
this state? That l. the question
Senators, for Nou Ia decide here, to-
da..
Mr.. COLBY of Somerset; Mr. Presi-
dent, / was II member of the taxation
committee ! voted against the eNemp-
ton of mortgages. Two years ago
was also "a member of that committee.
J voted in favor of the exemption. / g..
il with some hesitation. but did not care
10 put i'm minority report. During the
past years 1 have had the question in
my mind. which was right? After look
ing into the matter somewhat at this ses
sion and hearing the able explanation of
the senator from Franklin county.
claim the right TO vote with the senator
from Franklin county.
Mr. WALKER of Somerset: Mr. Pres
ident ! wish To second the motion maze
by the senator from Franklin county
When | was member Of the House. |
introduced bin into that body which
DTONlltf IItsit nlolINHSfS SHpuld ne ttN-
ed, and that the real estate should be
taxed only what was left after taking
ont the tax on the mortgage. If real es-
tate was taxed at $4,000 and there WAS
mortpage on that real estate of 5000
the mortgage should be taxed for s6en
and the real estate for 5000.
Tho hin was copied after an act
which had been passed in California,
-. a vol q
progressive state.
/ hope the motion of the senator
from Franklin viii prevail
Mr.. RICHARDSON of Pcnobscot:
would say just word on this matter
as it is one in which ! feel very
strongly. My opinion. as member
of the committee. and from my con-
versation with Senator Wing, who has
made SO able an argument before YOU,
today, to me there is question of
fairness without regard To legal tech
nicality
Let us. suppose that in a village of
81 say trsenty FIVE hundred people there
Eiiappens To fise.a man with 100000 in
Evestel ia real estate mortgages Sup
fpuse those mortgages average $1,000
teach. RI follows that the man would
held so mortgages aggregating $780,
G0Q Let us assume that the rate of
siayation in that little village is 90
IL Every man whose property is
4, <<aged to this money lender would
5l4p<1trihuting to his town, county
m State on the amount of his loan
ri is tn sum of $40 The aggregate
s nd nv xhose so individuals would be
400 Aud as compared with this we
0},la have a magnificent contribution
{53 tbesmoney. lender of 81 or pos
a n SO III the form of poll tax. That
y Noes notsseem fair to me-
Mr., BAILEY of Penobseot: Nj.
President. if You look at the scien-
tifie and technical side of this ques
"A ton, yeu cannot help going along with
i the able argument of the senator from
I zEEankhn. But it seems to me that
e. fhcft rs a broader, wider question.
s md awish to say few words upon
\ a6Eat Side of the proposition.
FS$yfsln the State of Maine we have saw
iliss banks and the money of the peo-
pie is put into those savings banks. \
large part of ii is invested in stocks
and bonds Of companies and corpora
tons who are doing business outside Of
the state Of Maine. That is. the peo-
pie of the state of Maine get no BEN
eft from that money which is Deposit
ed in savings banks, as il is invested
outside of the State.
The people of our State, the eiti-
Zens of the State Of Maine, are de-
posting money in our savings banks
which is used to develop and build up
industries in other states and other
parts of this country AS understand
it. this law is not primarily to lowe
the rate of interest, but 1t is to keep
the money of the State of Maine in the
State for the benefit of the people of
the State.
For instance. here is a man who has a
couple of thousand dollars. He can put
in a savings bank and get 8, or per cent
interest or he can loan it to his neigh
Dor, His neghbor perhaps would build
sawmill or help build ii. or perhaps
build a house. That money does not es-
cape taxation. Whatever improvements
he borrowS money to improve his proper