J REAL ESTATE RECORD AND BUILDERS' GUIDE. VOL. XXI. NEW YORK, SATUEDAY, APEIL 20, 1878. No. 627. Pitblts^ied Weekly by stantial relief which wholesome legislation would their abilities, with this pressing aud imperative alfoi-d, the very fii-st preseutmeut of the subject subject of real estate taxation. Bj- the best of taxation iu tho State Legislature is m the authorities, the taxation of mortgages is recog­ shape of crude, bungling aud ill-digested devices, nized as a double taxation of real estate, and this TERJIS. such as the lueiisures upou which we are animad­ proposition is too simple to require demon­ ONE YEAR, in advance....SIO.OO. verting. stration. It is the highest injustice aud the Communications should be addressed to It is not easj- to clearlj' define the real object exemplary evil of our preseut laws that real sought to be attained by the promotei-s of this estate, tho least able to bear oppressive taxation, C. AV. SWEET, suspicious legislation. Many objects maj' be im­ is reallj- subjected to a double tax. If there is an honest and sincere purpose ou the part of our law Nos. 'MS AND 347 BROADWAY. agined aud assigned, aud the evil effects of the proposed measures inaj' be readilj' traced bj' makei-s to mitigate the evils w-hich now oppress those accustomed to -watch the operation of .such our real estate interests, especiallj- iu the matter BUNGLING LEGISLATION. laws. The least insight iuto the subject w-ill fur­ of mortgages, the w-aj- is reallj' plaiu and clear. When we recall tho alile and lucid expositions The bungling and abortive elforts which have nish an assured conviction that if the present which have beeu made of this subject during the been recentlj- made iu the State Legislature to proposed law finds a place upon the statute book, past fifteen j'ears, w-e are siniplj- amazed at tho compass the subject of mortgage legislation, it will afford uo real i-elief to the ownei-s of prop­ lack of inforinatiou at present displaj-ed by the whether for exemption or taxation it is diflicult ertj' nor to the owners of mortgages, while it will legislature. to discern, certainlj- constitute the verj- enibodi- be sure to entail upon the w-hole commiuiitj' con­ inent of legislative incapacity. A fortnight ago fusion, distraction aud serious hardship. Assum­ To remove this double tax ou real estate and we called attention to the manifold evils of a bill ing that in these measures a double object is con­ to lift in the most direct and effectual manner the which had then passed the Senate. We are templated, that of relieving the property owner burden of oppression from both property owner agreeablj^ disappointed in being able to congrat­ aud the mortgage owuer, or of providing the aud mortgage owner, wc merelj- require to have ulate our readers upon the defeat of that bill in the means of equating taxation between the two, it is the tax entirelj' taken off mortgages. Assembljr. Along with these glad tidings comes safe to say that thej' flj- flat iu the face of both of Probablj' three-quartei-s of the amount of exist­ the information that another bill of kindred im- these propositions. It is proposed to allow a ing mortgages are exempt bj- previous enact­ Iiorfc has been incubated iu the Waj's and Means mortgage debtor to deduct the amount of his ments, aud J'et the fact that the remaining por­ Committee of the Lower House. The relation of mortgage from the assessed valuation of his prop­ tion is held for taxation, that mortgages owned these two bills appears to be that of father and erty for taxation, aud to impose upou hira the by individuals resident iu this State are subject sou. The text of the later oue will be found in obligation of giving the authorities a clew to the to taxation whenever found, introduces au ele­ our newscolumu. A superficial examiuatiou of it owuer of the mortgage, so that if he happens to ment of uncertainty and disadvantage in the will convince those who have taken anj"^ interest be a resident of this State, he maj' be made to negotiation of mortgage loans w-hich has a ten­ iu the subject that, while some of the intricacies respond to the full amount of the tax upon his dency to throw them into the hands of moneyeil of the earlier bill have beeu removed, its greater mortgage. As a majority, probablj', of mortgages corporations aud non-resident lendei-s. Were the evils and absurdities*have beeu intensified and are held by mouej-ed institutions, which are al­ taxation of mortgages ouce removed, large vol­ perpetuated iu the new measure. Our best infor- ready exempt by law from taxation ou their umes of resident personal capital w-ould at once uiatiou leads us to believe that these measures mortgage investments, and as another propor­ seek these investments, aud the rate of interest at have had their origin principally, if not exclus- tion, uot a small one, are held bj- lenders residing which good mortgages w-ould be easilj' negotiable ivelj', among countrj' members, aud that their out of the State, it is more than likely that in would correspond with the i-ate of interest paid object is to relieve the farmei-s, who happen to practice the mortgage debtor will be debarred on gov. rnment bonds or anj- other prime un­ own mortgaged farms, from some few dollai-s of from availing himself of the exemption which taxed securities. taxation ivhich they find it iuconvenieut to bear. this law professes to graut. In this light it is It is uot onlj- with reference to this single mat­ As the organic law requires such legislation to simply a discrimination against the private lender ter of taxation of mortgages that legislative ac­ partake of a geuei-al character, the relief demand­ ou mortgage who happens to be a citizen of this tion is required. Sooner or later the w-hole sub­ ed bj' this rural coustitueucj' is likelj^ to impose State, and will certainlj', if the law is strictly ject of State aud municipal taxation must forciblj- upou the owners of landed interests iu cities enforced iu the interests of borrowei-s, drive our present itself to the minds of our law-makers, aud a peculiar aud excruciating burden. It passes own capitalists out of the mortgage market. imperiouslj- demand broad, comprehensive and comprehension how such vicious, partial aud per­ There is another provision, how-ever, in this law i-ational treatment. There is no subject at the plexing legislation can escape the condemnation which resembles the Irishman's famous post­ present moment that is more profouudl j- agitating of keen lawyers and business men iu the commit­ script to his letter, in w-hich, after writing it, ho the minds of the people cf tho entire countrj-, tees of the respective Houses. Such euac'.meuts announces his decision to uot send it. This other aud especiallj- of this State aud citj-. The de- arouse just suspicion as to the amount of wisdom section provides that an agreement may be made maud is outspoken aud clamorous for thorough which presides in our legislative councils. between the borrower and lender as to which ono reform of the wietched system of tax administra­ tion with whicii we have struggled, and by which If the country at this moment is suffering from shall bear the tax, or w-hether it shall be divided we have beeu cursed aud oppressed for so many one evil more than another, it is from uuwi.se, in­ between them iu au agreed proportion. The J-ears. Partial, piecemeal, bungling legislation trusive aud disturbing legislation. Ai a time, privilege of making such au agreement certainly will uot afford the desired relieL The subject wheu of all others, its business interests need does not require the authority or mandate of any must be taken bj- the roots and dealt with intel­ repose and exemption from irritating causes, they statute. In effect this section will defeat} the ligently, decisivelj- aud promptlj'. seem more than ever to be menaced with radical, operation of the whole law, or rather will so far special and ill-advised legislation. For five bitter suspend its action that the capitalist w-ill either J'ears the best business interests of the country, decline altogether to lend on mortgage, or else THE TAX ROLLS. mercantile aud manufacturing, have writhed un­ will compel the borrower to pay the taxes as he It is the glorious privilege of Americau citizens der the agitation of the currency question iu is doing at present. To complete the farcical to be taxed. Foriuerlj- we rebelledlagamst tax­ Congress, aud now these same interests are shak­ character of this statute it would be only neces­ ation without representation, but now, having re­ en to their very centres by the prospect of a sary to add an additional section to the effect presentation, w-e are called U[K>U to bear content- complete over turning and reconstruction of the that this statute is intended for legislative pastime, edlj- the fullest measure of taxation. In what­ tariff laws. In our own State,'real estate inter­ and will probablj' have no application after all to ever respect our sj'stem of republican government ests, lying at the foundation of the whole social the relations of borrowers and lenders. may excel or fall short of European systems, it and mercantile fabric, have been burdened with a We are forced, however; to -welcome even such has certainlj' reached a point where it can chaL load of taxation piled mountain high; administer­ crude and bungling legislation as this, as the lenge comparison with the most absolute and ed under processes which are slowly strangling earnest of a desire on the part of our law makers despotic of the old governments in the matter of their very life.