Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1913-03-06

ton gave a public hearing on this
matter, and there appeared at that
hearing in favor of the present law
several bankers and real estate brok-
ers from the city of Portland, and a
gentleman from Bangor, an eminent
gentleman who is worth his hundreds
of thousands. They appeared there,
as they said. representing the cause
of the poor man, the widow and the
orphan. In fact. so persistent We're
they in referring to the widows and
orphans that it struck me that the
Act was misnamed and that it should
have been named IAN Act for the
benefit of widows and orphans
Now, the chief argument which has
been urged every time this question
has been discussed is that to tax
mortgages and also tax the property
described in the mortgage is double
taxation. AS | understand it, double
taxation is when you tax the same
piece of property twice when it ought
only to be taxed once. In this parti-
cular instance we have two distinct
classes of property. personal property
on the one hand and real estate on
the other. The fact that a mortgage
is personal property is well estab-
lished; it is evidenced by the fact that
upon the death of a man his mort
gage goes to the administrator or the
personal representative rather than to
the heirs direct; and when a mort
gage was taxed it was always taxed
| where the mortgagee resides, regard
less of the description of the property
in the mortgage.
And il you will bear with me fer a
| moment, | will read an expression
from an opinion of one of the courts
of this country, in discussing d mort
gage in this way:
Being thus species of property
distinct from other property. its own
er or holder, when residing within the
State. is assessed and taxed as the
owner of money in use, and not upon
an interest in the land, which is mere
| ly pledged as security for the return
of the money loaned Land is useful
, and productive, and its value is esti-
mated, for the purposes of taxation,
in accordance with its income and use
| fulness. So a mortgage represents Il
! debt which has value and produces an
| income, and its value should be esti-
| mated accordingly. for like purposes.
| The products of the soil constitute the
| income of the owner The interest OH
| the money loaned constitutes the in
come of the holder of the mortgage.
| The two species of property are en-
tirely separate, represent different val
ues and, on principle. it would seem.
each should contribute just share of
| the burdens of government, however
difficult it may be in practice to have
, each owner do So
Now. in regard to the question OF
| double taxation-and so far as I can
| find, there is nothing Illegal about
double taxation. | find in Lawyer :
Reports Annotated where the question
| was summed up as follows:
The great weight of authority holds
as legal proposition. that the taxa =
ton of the mortgage to the MORTGAGE
and of the real estate at its full value
TO the mortgagor or owner does not
constitute double taxation.
1t seems to me that poor man ha.
just about enough to do to pay his bills
he has his tax to pay and he has to Dor
row money to pay interest, and ii woult
seem in all equity and justice that tn,
money lender or the rich man. which
eyer you may term him. should pay hi:
Just proportion of the tax.
Another argument which has been ad
vaneed in favor of the present law wal
that if you exempted the mortgages from
taxation you would necessarily lower tn,
Irate of interest. | talked with the reg
lister of deeds of Aroostook county thu
| other day and he told me that the rate o
interest at the present time was greater
+ than it was two years ago, before thi!
law was enacted This law gives grea
opportunity to a man to dodge his take!
| If he wants to. For instance. for tn,
purposes of Illustration. | might borrow
$4,000 from our honorable Speaker
might give him back a mortgage covering
| a plot of land worth s.. Now that none!
which lie loaned me. and for which he l.
receiving per cent. or per cent. inter
| est is entirely exempt under that.
| would like to give you a practical illus
| tration of the working of this law. II
| the year 1911 in the town of Houltor
| there was the sum of s314,500 of none.
at interest which was taxed. This new
| law entirely eliminated that property
and there was just one of two things TO
| the town to do either to raise the Valu
alton or its rate of taxation. 1t wa'
necessary on the same basis to raise thu
| rate of taxation five mills.
| Now. gentlemen, it seems to me thai
| the members of this House will not re
| turn to their constituents and tell then
| that they voted in favor of law whicl
| took from the shoulders of the rich maj
his Just share of taxation and placed al
additional burden on the shoulders or th'
poor man: and, Mr.. Speaker, / move
| that when IA vote is taken on this ques
| ton that it be taken by the yeas ant
nays.
Mr.. ROLFE of Portland: Mr..
Speaker. | won't be very long IN what
| have to say. You will remember that
| the Good Book says that Every way
of man seemeth right in his own
| eyes" Now, looking at this question
from my standpoint look at II III
| this way, that no law in the State o,
| Maine has ever been enacted That ma
done so little hurt and so much Sooo
| to the poorer classes of people IN the
State of Maine as has the present law