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on a public job. What with his.known personal independence
and the assistance of walking delegates and unions the workman
is surely already suffieien'tly protected in this matter.
1
ESTABUSHED^ttJ
"OEvfeiED TO RfA.L Estate . BuiLdiKg ^R,cKlTEeTUR,E ,Ho\JSErioili Demr^hot*.
BifsitfEss AfJo Themes or GEjto^^l Wterjs],;
PRICE PER YEAR IN ADVANCE SIX DOLLARS.
I'iiblinhtd ei-n-i/ Satvrifan.
TELEfiiONE, â– Cortlandt 1370,
Cominunications should be addressed to
C. W. SWEET, 14-16 Vesey Street.
J. T. LINDSEY, Bimness Manager.
'Eniei-cd at the I'osl-Office at New Tork, N. Y., as second-clciss matter."
Vol. XLV.
JANUARY 20, 1900,
No. 1662
The Index lo \'oliniie LXl V of the Record aud Guide, coi'ciing
the period l)etwecH July 1st and Deeember 31s/, IS\}9, will he
ready for delivery abmt the close of next weelc. Price, $1. This
Index in H.s enlarged form is now reeognized as indispensable to
everyone cngaged'or interested in real estate and bvildiny opera¬
tions. It covers all transactions—deeds, mortgages, leases, auction
sales, building 2>lans filed, etc. Orders for the Lidex should be sent
at once to the office of publication, 1-J and 16 Vesey Sired.
f N the security markets the most satisfactory feature at the
i. moment is the increasing demand for investment issues and
the larger business in railroad bonds of all grades, and conse¬
quent moderate advance in auoted values therefor. But, while
the easin'^ of money has encouraged these purchases, it has not
yet created a speculative demand for stocks. In that line tbe
business, after a spurt at the opening of -the week, became of a
very humdrum character, though as a rule the moderate gains
inade on the small spasm of activity were fairly well held. There
is nothing discouraging in the situation as thus portrayed. Money
is becoming cheap, and the drop in the Bank of England's rate
of discount to 4M;% shows that that centre can now take care of
Itself and we need not expect any further demands thence.
While a moderate buyer of our securities, London has naturally
heen made cautious by recent military history in South Africa,
and will not come into the market largely until the issue of the
war is determined or unless an upward movement engineered
on this side invites speculative buying. Doubtless operators here
.are deterred from going far by the fear that another casualty to
British arms may make London again a heavy seller, hut with
money cheap and business as encouraging as it is in every
direction, ciuotations for our securities can hardly fail to ad¬
vance soon, even though the extent of the advance may be modi-
fled by the conditions abroad. The two features of the week,
ease of money and bond buying, are the same as have usually
preceded an upward movement in stocks, and there is more
reason to believe that these things have their ordinary sig-
.nificance no-w than the contrary.
AMONG the bills introduced into the Legislature appear some
that have a distinctly familiar appearance and which con¬
tain provisions so bad that one may wonder at the regularity of
their revival each year as the Legislature meets. These
come from people mostly who prefer the individual—meaning
their own—ideas on architectural construction, or from labor
â– organizations which seem to- find some recreation and profit in
repeating their extreme demands. A glance over our letter from
Albany will show the presence of several very mischievous sug¬
gestions for legislation from these sources. As to the bills re¬
lating to the construction of buildings, wherever they propose
to apply changes in this city they ought to be promptly pigeon-
.holed or killed outright. The policy that would not allow any
amendment to the building laws of this city until a Code Com¬
mission had been appointed and had reported, ought to be now
extended to giving the Commission's work a fairly extended
practical trial before any attempt is made to improve upon it.
Assemblyman Eagan's bill to give liens for labor priority over any
mortgage oh real estate is also one of mischievous tendencies. It
is quite uncalled for by any loss that labor has to suffer through
the opecation of existing laws, aud would do much more harm
than good to the workman through disturbing the conditions
under which real estate improvements are made. Another labor
measure, that introduced by Assemblyman O'Connell, seeks to
make contractors on public works responsible for the enforce¬
ment of the eight hour law by making it a misdemeanor to allow
ihe dear workman to work more than eight hours in any one day
The Tax Bill.
"T" HE introduction of the Tax Bill into the Legislature this
• week i>lace the discussion of the principle involved and the
means proposed to give it effect on a practical basis, but aa
sufficient time for their study has not elapsed public opinion
thereon cannot yet be said to be formed. We think it will finally
crystallize into approval of the measure, generally at least. Upon
one point, that a reform of the tax laws is necessary with a view
cf making ether forms cf property share the burden that has
hitherto fallen almost wholly upon real estate, there is liardly
any dispute. That has resolved itself into an accepted principle,
so that really the only question to be decided is whether the bill
of the I_egislative Tax Committee provides the best expression of
that principle. To relieve the tax burden on realty the Com¬
mission prcpc'ses. and has so' expressed it in their bill, to tax
banking capital, whether of individuals or corporations, and debts
or obligations secured by mortgage on real estate without ex¬
ception as to individuals or corporations, residents or non-resi¬
dents. As to the tax on the flrst class of property we do not con¬
sider it necessary to say anything now. To the tax on realty
mortgages two main ohjeotions have found expression. One is
that, as this tax will eventually fall upon the borrower or mort¬
gagor, it is an additional tax on real estate instead of a relief; and
the other that the machinery proposed in the bill for ascertain¬
ing the property and assessing the tax will work endless mis¬
chief.
It is undoubtedly a fact that a tax on any article correspond¬
ingly heightens its cost; this rule will apply to money as well as
to goods. It may be taken for granted, too, that wherever the
terras of the mortgage give the mortgagee power to call upon
the mortgagor io refund him any moneys paid out in taxation
they will be enforced, except where such an act would imperil
the mortgagee's investment without accompanying opportunity
to make as good or a better one. If we take it that the tax will
undoubtedly fall upon the mortgagor he will then have the in¬
terest on his mortgage increased by a half of one per cent., to
offset which he will have a reduction of say about one-fourteenth
iu the taxes on his property, that being the proportion of the
taxes on realty of this year that goes to the State. According to
this, unincumbered and very lightly mortgaged real estate will
be benefited, while property mortgaged for say more than a third
of its tax valuation will lose by the change. So far this makes a
bad showing for the tax as a relief to real estate, but there still
has to be considered the indirect benefit, if any, that may re¬
sult from the improved position and consequently better demand
for mortgage investments, brought about hy a change in the law
which gives them a position of certainty for one of uncertainty.
Wherever and to what extent in a general way the tax falls
upon the mortgagee, whether through his inability to compel the
mortgagor to pay the tax or through a new loaner being willing
to take the loan if called in spite of the tax, the thing will adjust
itself distinctly to the benefit of the owner of the fee.
In reading over the provisions of the bill it must occur to the
reader that a simpler way of reaching mortgages for taxation
could have been found which would be less open to objection than,
that provided. Had it been required that the holder of any debt or
obligation secured by mortgage on real estate should make return
of his holding under penalty of possible sequestration for failure
to do so, and with reward to the mortgagor for information given
against defaulting mortgagees, every penny of live mortgage
debt could doubtless be reached. As is well known, the records
do not properly reflect the mortgage indebtedness of a com¬
munity^ because many mortgages that stand of record have been
wiped out by foreclosures or disposed of in other ways,
while the principal or interest of many others has been changed
by endorsement or other form of agreement not on the records.
There, therefore, exists the danger of the owner of a piece of
property being made a party to proceedings to collect taxes
in default upon mortgages of whose existence he had never pre¬
viously been aware. It will be seen by his statement in another
column that the Register of New York County meets this objec¬
tion so far as his office is concerned. Still ignorance of the ante¬
cedents of his property, which may he assumed to be general
among owners, may be the cause of much trouble and mischief
should the bill pass in its present form. Evidence of satisfied
or determined mortgages has to be given while the lists are
being prepared, while in numerous eases the owner cannot know
of them until they,have been included in the lists, and then only
if he makes it his duty to search the lists for that purpose. Pro¬
vision is made for appeals against assessments, but they must be