The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-01-05
new FIGHT BEGUN ON
SECURED DEBTS LAW
State Would Gain SO, 900, 900
q Year. but Bankers OPP
pose Any Change.
ASSESS ON S12.27i.l1l.4O2

July A81tIteN ulTllE INC oSN N''' ~
the Legislature. is recommended In a
report OF the state Tax Commission
Last year It was decided to defer lcgis-
latiOn which would nullify or minimize
the effect of this law until a ommit
tee Of New York bankers had devised a
plan under which satisfactory legisla-
ton could he passed. To date this COM
mittes has not made public Its findings.
but II ID believed that the recommended
ton of the tax commission for repeal of
this statute anticipates the drafting of
q report which will meet the situation.
II 10 estimated that the revenue &C.
oguing TO the State from taxes on Sc
cured debts with this statute nulliied
would approximate about $4,000. 900 a
year. but bankers and investors who
have registered their securities under
the law claim that any attempt to gain
this additional revenue by repeating the
law would be a eriou breach of faith.
Many millions OF dollars are repre-
rented in the secured debts registered
under the law. and the registration was
made and the original tax paid by the
holders upon the assumption that the
securities would be exempt In the fu-
ture. The law was enacted In 1911, os-
tenstbly to increase revenues during the
irst yea of the Dix administration.
Since that time its repeal a been asi-
tatsd more or less violently.
NNA> vtatyta pr,1.idaa tb,x nuy,or. ~
bonds may register them at the office of
the state Comptroller and have the Sc
cuStties declared exempt from taxation
for . certain period by the payment Of
n registration fee. Until last year the
law provided that upon the payment of a
fee Of 5 mills zach $1,000 bond was
exempt from taxation during the life of
the issue. senator Mills introduced a
dill which later became a law, providing
that The fee be raised from 5 to "a
mills and that the period of exemption
be made five years.
Just before the present law e into
effect millions of dollars worth of bonds
were registered at the New York office
At the State Comptroller for the purpose
Of obtaining the life exemption.
BANKERS Agree ON q mprOiniAe.
Powerful bankers in New York city
have ~strenuously opposed interference
with the law for the past few years. but
At ono time during the last session agi-
tat1on for its repeal seemed 40 certain
OF success that a compromise practi-
cally was agreed upon This compro-
mioA. which undoubtedly will be the
nucleus of the repOrt OF the bankers
COMMITTEES provides Tor the repeal of
tho law without affecting securities reg
istered up to the time of repeal.
An increase Of f2o3, 6e3,5l5 IN taxa
ton valuations over 1914 il Indicated
by the report. The valuation for the
yes 10 the largest in the history OF the
State. The total amount of real and
personal property assessed is sl2.274,-
llt,l02. Al increase in real property of
more than $3.50, 600. 900. and in per-
ooaal property of more thar $4,000. 900.
Tit total assessed value of property
exempt from taxation for the year 1915
10 &2.517.s03,1 6j, while for the year OF
1914 II was s2,37I,l56, 232, making an
increase in exempt property of more
than $40. 900, 900.
Increase in franchise valuations in
New York city alone for the year is
363.386. 900. Tn increase in Buffalo is
$6.t46,91O. This gives to these two cities
4 total increase In taxes received of
approximately $1,000. 900.
The more important changes suggested
% the Legislature by the state Tax
Commission are these;
Prevention of the use OF savings banks
Tor the purpose OF evadinE taxation
providing that all real property shall
DO taxed in the district where 1t is
located whether divided by a town or
lax district advancing dates covering
the work of assessors providing that
tho field work of assessors may begin
on January l each year: combining into
one the separate hearings on full valus
tion and equalization of special franchise
property giving the right of appeal 10
the Mayor OF "A city In the matter OF
eQualixation by boards of supervisors
rewriting in the interest OF revision and
c~leArness the law governing the fran
eAise tax on corporations.
Big Mortgage Tax.
Tho report shows that during the
year ended June 80, 1915. l06,lS2 mort
cages have been recorded in the counties
OF the State. The total mortgage tax
collected for the year SO ended amounts
to 50, zoo. 496.
The work OF local assessing boards In
determining the amount at which stock
Of State and national banks shall be
assessed has been Investigated. the re-
port says, by the bureau OF assess
ments. equalization and statistics,
This investigation disclosed that in al
least one county not a single bank was
properly assessed, a condition that has
been corrected. For the first time since
1907 the assessed value of stock in state
and national banks was included as a
part Of the personal property of the
comfy, with the result that for tbs
\ present year. through the efforts Of this
commission. there has been added to The
value Of the property on which the gen,
eral State tax was apportioned II com
puted $4s5.s9S 500. The State will re.
celve 1926 900 moro than IT would hav,
received under the method OF previous
years,
The law division has disposed OF many
oaees which were pending at the be.
gtnntng OF last year. These included
1897 certiorari proceedings to review
special franchise valuations. This mum,
bG advanced during the year to l,s1O
Through the combined efforts OF IN,
commission and Acknowledgement Wool
bury. who was former chairman OF thu
tax commission litigation has been re
ducsd to 1,2s4 cases. OF these approx
mately 100 will he disposed OF within
the next few weeks.