Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1913-03-07

tax and he might not. | trust that the
law will not be changed; at least at
this time. Give it another try. If at
the end Of another two years it is de-
cided that the law is wrong then it
can be readily changed.
Mr.. DRESSER of South Portland:
Mr.. Speaker. in the year 1907, bill
was drawn and presented to the Lcgis-
lature of Maine to free real estate
mortgages from taxation, and to re-
Iieve mortgaged property from double
taxation. This bill was defeated by Il
small majority in the House.
Again in 1909 this same bill was de-
feated In 1911 it was again presented
to the Legislature and that bin was
passed and it became Il law and for
the first time in the history of Maine
we had law relieving real estate
mortgaged. from double taxation. The
law was subject to referendum. and did
not become operative until july, 1911.
Since that time people have loaned
their money readily from ) to 6 per
cent. on good first mortgages, and
many mortgages paying ! to per cent.
were paid by procuring the money at .
and per cent, thereby reducing the
rate Of interest on farm and suburban
mortgages about per cent.
When this law was passed and the
great seal Of the State of Maine was
placed upon it the people rolled upon
il, and loaned their money readily at
or per cent for / - years. only to
find that an order was presented to the
committee on taxation to investigate
the loanns of money on real estate
mortgages, and to report by bill to
repeal or otherwise. This committee
after investigation and consideration
for four weeks reported eight ought
not to pass" and two for repeal. The
minority report contains the names of
two men recommending the repeal OF
this law
Notwithstanding the fact that eight
men out of 10 say ought not to pass"
law to repeal. Notwithstanding the
fact that a special committee on tax
alton had been appointed three able
men by the Governor, in 1907, To thor
oughly investigate the taxation Of
mortgages and other property. and said
committee had hearings in every large
town in the State and, in 1909. made a
very exhaustive report and recon-
mended that a similar law be passed
freeing mortgages from taxation; not
withstanding that the State assessors
do not oppose the law.
No borrower of money on mortgages
was ever known to oppose it. The only
opposition it ever had was from money
lenders, but money lenders do not pay
the interest or the taxes. The bor-
,Ixsrsa
commission, title. and papers The Dor
rover always pays the bills.
The people of Aroostook county were
averaging to pay 8 per cent. for farm
mortgages, in what is called the Car
den of Maine
In Cumberland county many farmers
have been obliged to pay : or per
cent. for farm and suburban mortgages
for the last 10 years until the law of
1911 made it possible for them to get
it for and per cent. You viii ask
why.
The reason is this; We have two
Savings Banks in the city of Portland
with deposits and surplus amounting to
S33 .000, 600. We have several millions i'm
savings departments of National
Banks. None of these funds can be
used to take country or suburban
mortgages. They only loan in Port
land, not even in South Portland or
Westbrook.
The Savings Banks of Portland do
a great deal of good in Portland. They
loan money for 90 per cent. of the val
ne at per cent, and pay depositors 4
per cent, and pay a tax of IS of one
per cent. but over one-half of their
money is invested out Of the State.
From Investigations made since the
passage of the 1911 law we are thor
oughly satisfied that the money which
has been placed in circulation in the
business centers of our State has more
than douhly and trebly paid any little
advantage which may accrue from tax
ing money invested in mortgages
throughout the State,
In one instance alone We can point toI
a loan of s20oo00 which is carrying on an
industry in our State and the mortgage
is upon the records in one of the coun-
ties where it is loaned for five per cent
DO you representatives of the people
imagine for moment that such loan
can be effected through any source what
SOfNtl IL y ob tlt " lclA A''t I''''F ''P'A'
which the mortgage is given and the
money invested by the mortgagor? III
cannot be done it is an inducement to
the people who have money in stocks
and bonds that never see the light of day
and are never taxed. to take their bonds
which pay them and 4 per cent. from
their vaults, to sell them in the market
and to invest them in mortgages at 81
and per cent This is enhancing the
business and increasing the value OF
money in circulation
TO place tax upon money invested In
is a double burden upon the
borrower but it also allows money lend
ers who do not place upon the records
tine money loaned. the right to demand
eXorbitant rates of interest. For to give
q concrete llustration-if today in "A Ger
tain town or city, money can be obtained
for to per cent and you tax that
money, the loaner will ask the borrower
to include in the interest the amount OF
the tax We know of a loan where a
party has applied within the last three
weeks TO obtain $4,000 upon unqGeston-
able security. The attorney for the leh"-
er was instructed to inform the borrow
er that if the 1911 law was not repealed
he could have the money on his security