The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-04-04
S12,OOO,OOO DIRECT
TAX MAY BE ENOUGH
Senate Leader Brown Says Sc
cured Debt Levy Will Net
City Millions.
TO SAVE on ia RGE CANAL

N,pNNY. April S.--The annual tax on
secured debts and mortgages, which will
be made law this session. VIII bc so
framed that New York city will derive
several millions Of dollars from the tax.
said Elon X. Brown, majority leader of
the senate to-day.
lie declared that with the proposed
economies which will bc put through by
he Appropriation Committees. and the
Increases in the Indirect revenues. he
believes the administration can get
through the year with direct tax Of
about one and a quarter mills, or enough
to raise something over si2ooo.0o0 in
stead Of the 100000 which IL was "A;
frs, thought would have to he raised.
The secured debts legislation will he
introduced next week. II will provide
,or an annual tax of two mills on a
dollar on the market value of the bonds.
as well as tho registration tax of one
MALT of per cent. or five mills. Secured
debts not now exempted from pro-
Visions of tho law will he included under
Inc new tax.
A companion bill will levy tax Of
Two mills on dollar on mortgages
hereafter filed. in addition to the one
calf OF l per cent registration tax
share for the city.
"one-hslf Of the annual tax collected
OF the secured debts and one-half OF the
annual tax collected on mortgages will
70 10 the localities whore the tax Is
collected" said Senator Brown. I'VE
believe this plan will aid New York city
in the grave financial situation. As New
York city will pay about IS per cent.
~ the direct tax to be levied. 1t seemed
o US that the city should share in the
secured debt and mortgage tax. as most
u this tax will be collected in New York
cy.
We believe that an additional in
direct revenue of about $4,000. 600 and
perhaps even more than that will be
derived from the secured debt law. but
I Il impossible to say what will he
'ealized on the mortgage tax. Probably
ne increase in Income will not be no.
tgesbie until the second year the law
put in effect.
In addition to these new tax laws
Senator Brown continued. the major
iiy plans to increase the automobile
TX a little more than half. This will
bring another million dollars to the
state Treasury. There will also be a
TAX OF Ave cents on a dollar for cham
rssne sold retail. II has been de-
60 led tina; no taxes will be delivered
on beer because OF the big tax already
imposed by the Federal Government on
account of the war
TRx n Light Ono.
Senator Brown was asked IL he
t-ought secured debts would he filed
unier the new law and whether or not
here might be an effort to eyade the
AK
You can say for me tina, | believe
80 have so framed the bill that +, will
e too exp. nsivc for owners uf secured
ocb's not TO register them We nave
Nsde the taN = lgh: one. \ TAX Of two
mills = year during the life of a bonn
edu. practically q tax of eight and
u e-haif cents in forty years. the aver
- lie OF bond. This is to bs
sr,ed on the market value Of the bonds
2 believe the provisions OF the law will
induce all owners TO register thelr
0onds J."
The Republican leader said that after
hlnerops conferences with the state
Engineer it had been decided that the
hiree canal work can he progressed
10 year with an appropriation OF
'l7oo,ooo instead OF the t.l50. GOO. al
'rst nrovidei i'm the special appropria
ton hill some OF the payments which
VIII come due on contracts now in force
r'1 not hc called for until after Jauu.
" ,. lais, aud senator brown said
no legislature would rely on tho nsXt
'r..'ainr" to make an emergency ap,
'prria'lon. For the completion Of the
anal. however, there viii hs = RI Ter,
mum IN rhe peopl" NJ the state for a
honi issue Of probably $4,000. ooo This
amount viii cover claims against tbs
STATE It is thought
People 20 Decide.
'"e are advised by tho state Enci,
'sfr that tho state would incur a
I''s Of sn.0oo,000 by abrogating barge
'lrs' contracts nov IN force de-
AIRED the ma jority leader. "otnerUise
"e would not make direct appropria
Ton Of the 100000 for these con.
racr II will be up to the people
however, To say whether or not the
"tne; s20,ooo,000 for completing the
anal shall he spent
While the Republican leaders have
'e"n hoping that the session might
10. adjourned by Apr, -, Senator
orn dec'sr rod to-day that Senator
'i'1r'' " Sage and Assemhlymar Alex
-h1"r Mcdonald, chairman Of tho FL
naNce and WAYS and Means committees
~ 'he Senate and Assembly have in
''rWed him the money bills will not M
cad 'or final passage before the mid
. ~ me week aftor next. which means
"dlou'nment "f tho Legislature or
'prN -
NsN' week viii 500 tho passage Of :
tN requiring tho Public Service Com
mission 80 determine the necessity n
no extra man on e.gh' and passen
GER train. as required hv the "ful
'''r' law This Is mot exactly re-
real NJ the full crew law. Senator
Brown explains, hut am cunts almost to