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The Grange advance. (Red Wing, Minn.) 1873-1877, August 01, 1877, Image 4

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WEDNESDAY, AlTC. 1,1877.
Taxing Mortgages.
These who content themselves with
a superficial examination of any inges
tion, although apt to conclude that
they know all that is to be known
about it, are often likely to betray
even greater ignorance than they are
justly chargeable with. Comment
ing recentlv on the taxation of mort
gages we made use of the follow ing
ThN iiuyinonkaion o.ir^t, j.^m-ipalU in
niormai^N unreuiiTOtl ly the hoi. lor*, "and
-oiuo per-niw are tolu-itiitm-! ilioinselves wu\\
the idea Unit the rich men who hold the mort
Uiistes Mill have the sulditioral taxes to
Nam dehiMim! They will make those \vlio
oorroM their money puv such taxes in everv
instance, and A\ ill not "tlieinM.lvos be made a,
Vemiy poorer. To lis this pl.m ol taxing mort
sraares looks hke injustice. The mortgages are
not propeu. They do not. like railroad, bank,
or manufacturing companies,' stock, represent
values, hid are simple evidences, of indebted
ness. The debts they secure are investments in
property .and »tu'h wopem ltselt is taxed.
Htnco. the taxinu or inorwaares is a double
taxation of the simo alue on iropeit.
We find that exceptions are taken
to these assertions, even to the extent
of denying their truthfulness and ac
cusing us of arraying ourself on the
side of the rich money loaners and
against the poorer people. The Ar
gus, oi this city, even proceeds to the
length of concluding its criticism of
our at tide in this wise
This cool proposition to discriminate in iavor
ot the rich and add to the burdens ot the poor,
marks a sad decline in a paper which but a
short time since opposed ail monopolies and
MM.S the especial champion oi the fanner, the
mechanic and the laborer.
The writer cf the Argus article
ought to have borne in mind that ac
cusations are not arguments, and that
his concluding paragraph, is not,
therefore, pertinent. We have spent
a lifetime in advocating the cause of
the people against all who would in
anywise oppress them, and are not
now disposed to turn traitor to our
principles, and when such charge is
brought against us it would be well
for him who brings it to support it
with better evidence than our neigh
bor advances. He says that it is not
true that money loaners "will make
those who borrow their money pay
such taxes." Does he mean to as
sert that men will loan money at
same rates of interest when they
ha vt to pay three or four per cent.
taxes, as when these mortgages are
not taxed
Oh! but the law, he tells us, wil
confine them to twelve per cent.
They dare not exceed that exaction
because, to do so, will endanger their
claim. But before that law was passed
and since, money has been obtainable
in this State at less than twelve per
cent. We know that, last fall, a
prominent money lender in St. Paul
gave notice that he would, after a
certain date and that he did, reduce
the rate of interest, and a gentleman
of this city had made arrangements
this spring to lend at ten per cent.
In both these instances the parties
have again raised the interest rate
because of this imposition of a tax on
mortgages. These parties would soon
have been followed by others, and
we have not a doubt that by this
time ten per cent, interest would have
been the prevailing rate on loans se
cured by mortgages on farms, but
for this taxation clause. So much,
then, for that argument.
But the idea that a usury law is or
can be made protective to the neces
sitous borrower is simply preposter
ous, for the reason that it is always
possible to evade its provisions,
and the borrower is equally interested
with the lender in profiting by such
evasion. Our neighbor ought to have
thought a moment longer upon this
point of his argument. Suppose for
instance, that a bonus has been paid
paid for a loan, is it not true that its
payment must be proved before the
penalty provided by the law can be
enforced against the receiver thereof?
And is it not, also, true that the per
son who pays such bonus is not a
sufficient witness to the fact of such
payment Here is a gap in the law
through which an ordinarily shrewd
money lender can drive any sized
load of bonuses.
But, admit that the law does pro
tect the lender against the imposition
of more than twelve per cent, interest.
If the capitalist is willing to lend his
money at this rate and pay four per
cent, taxes on his mortgages, it fol
lows that he is content to make but
eight per cent, net profit by usury»
does it not Well, if he is satisfied
with this percentage under the exist
isting circumstances, is it not presu
mable that he would willingly loan
his for eight per cent, if there
were no tax on his mortgages As
a rule, it is true that he will take all
the law will allow him, but competi
tion has a good deal to do with what
he can get, and low rates of interest
are uniformly due to the supply of
and demand for money, rather than
to usury laws. If the supply of mon
ey exceeds the demand, and if the
facilities for collecting such debts are
ready and easy, the interest rate
must depreciate. But if the supply
and demand are equal, or if the lat
tiir is excessive, the percentage must
appreciate. Of course, every burthen
imposed upon the lender, whether it
be in the shape of taxes on mortga
ges, or in such legislation as renders
the collection of mortgage debts dif
ficult, only tends to increase the rates
of interest obtainable.
For several years past the tenden
cy of legislation in.the western States
has been prejudicial to capital. The
object of the laws has seemed to be
protect the debtors. The conse
quence is that an excessively higfr
rate of interest has been obtained
from western borrowers. Associa
tions of professional money lenders
are organized throughout eastern
States these borrow from capitalists,
frequently at six or seven per cent.,
becoming personally responsible, and
loan the same money on western
mortgages at twelve per cent., or
even more. Many of these loan
brokers have become excessively
wealthy through the profits arising
from their business. Now, had it
not been for our prejudicial legisla
tion, the capitalists would have, in
many instances, negotiated these
loans personally, or through agents
paid from one half to one per cent.,
and the western borrowers would
have retained the excessive per cent
age which has gone to enrich the
loan associations. This mortgage
taxation law is only another hind
rance to obtaining money at low rates,
and, therefore, only an additional
burthen laid upon the shoulders of
The Argus writer denies our asser
tions that "mortgages are not proper
ty," that "they do not like railroad
bank, or manufacturing companies'
stock, represent values," and he
proves it untrue by this singular rea
Railroad and bank stock are valuable only to
the extent of the [securities upon v* hich they
arc based. Hence if the property of the rail
road be destroyed, its cars, buildings and
rolling stock burned, the tracks torn up, &c.,
the stock becomes worthless. The same princi
ple applies to bank stock, which is only valua»
ble to the extent of its security.
Why this proves our assertion, not
his! The stocks named are certifL
cates of ownership of the property
they specify, and if that property is
destroyed they are worthless. Our
n#ighbor may have a deed for a
house, and if the house burns down,
will he pray tell us how much his
deed is worth His printing office
may be destroyed, and, unless it is^
insured, his title to it would be of no
value, because the property would
have ceased to exist. Not so with a
mortgage. It is simply an agree
ment that, in case the mortgagor
does not pay a specifiic debt within
a certain time, the property therein
described shall pass into possession
of the mortgagee. The holder of the
mortgage has no title to the property,
by virtue of the mortgage, unless
certain obligations fail to be compli
ed with. Railroad-stock, etc., may
be sold, hypothecated for loans, or
transmitted by will, and those to
whom they are transferred thus be
comes owners of the property Of
which they are certificates of title.
Mortgages, too, may be assigned,
but such assignment can convey no
title in the property mortgaged.
Again, the Argus denies that tax
ing mortgages is double taxation.
Let us suppose a case: A., owns a
*arm worth $6,000 and B. has $2,
000 in money. Now, A. borrows
B.'s money, giving him a mortgage
on his farm, and with it pays for
building a house for himself. The
assessor, in making his rounds, finds
A. in possession of a new house
worth $2,000, and now assesses his
farm at $8,000 h£, also, finds the mort
gage In B.'s hands and he puts that
down for taxation at $2,000. Here
is $10,000 in place of the $8,000.
Now, will our neighbor please tell us
how it happens that A.'s act of build
ing a $2,000 house has created $4,
000 worth of property It is not
palpable that the system involves
double taxation
One word more. In our article
we asserted a principle of commerce,
that is, that money lenders will com
pel borrowers to pay the tax. Is it
true, that so far as existing mortgages
are concerned this may not be so.
The lenders, we suppose, will have to
pay this out of their own pockets.
But in making loans they will
be careful to provide against a like
future contingency, and will make
good this amount and much more in
a very little while. Instead, then, of
the law operating advantageously to
borrowers, is it not obvious that its
effects will be decidedly detrimental
to them. It will, however, be favor
able to unembarrassed property own
ers, in that it will create enormous
fictitious values for taxation and, by
largely increasing the aggregates on
the assessment rolls, reduce tfie ratio
of taxation very materially. In this
way, it will be decidedly beneficial to
those have no need to borrow, but
the benefits they reap will be at the
expense of necessitious mortgagors.
Hasty Conclusions.
One of the most injurious piactices
of the people of this age is their habit
of forming hasty conclusions. A the
ory is promulgated, a proposition
submitted, or a plan suggested, and
instantly, almost, the majority of
minds form opinions concerning the
matter and proceed to act upon them.
To read over the laws which have,
from time to time, been passed by
the legislatures of our States and by
Congress, and to study up the histo
ry of their enactments and their ef
fects upon the country is both inter
esting and instructive, we might al
most add amusing. We were on
the point of writing an article upon
this topic, when we were startled by
hearing a gentleman, who was dis
cussing the railroad strike, declare
that the rioters ought to be shot
down without hesitation or mercy.
This turned the channel of our
thoughts somewhat and we Avaited
to hear him out?
He declared, first, that a resort
to mob violence is never justifiable
under any possible combination of
circumstances. We supposed that
he had forgotten all that part of his
country's history which relates the
incidents of the inauguration of the
revolutionary war all about the "tea
party" in Boston harbor the battles
.... r,. of Lexington and Bunker Hill, etc.
In fact, we were forced to conclude
1 3 l-t
that he had read history to very lit
tle advantage, for there has hardty
ever been an instance*of people es
caping from the thrallaom of oppres
sion, whose efforts did not begin
with "mob violence." Mobism is
the usual, natural, and, except in
some extraordinary cases, the only
means which an oppressed people
can make available for asserting their
rights and regaining their liberties.
Nearly all the political revolutions
the world ever experienced originated
in mobs, and popular resort to deeds
of violence were far oftener justifiable
than otherwise.
He who denounces mobs unqual
ifiedly only demonstrates that it is
his habit to form opinions from a su
perficial examination of the subjects
demanding his attention. Mobs are
very often justifiable, and even the
destruction of property, which is apt
~r"-sf«ti BWBSULJ
to be incidental to mobism, is fre
quently excusable. Who would care
to say that the patriots of 1776 were
not entirely justifiable in their doings
yet they destroyed thousands of dol
lars worth of property. Oh, but
they were fighting for liberty, we are
told. Not so. They had at that
time no thought of striving to erect
an independent government, but were
simply rebelling against the imposi
tion of an unjust but not very op
pressive tax. They arose in mobs to
resist their mobs became an onmni
zation, and from this sprang a new
government but this latter conse
quence was not intended by them,
and, but for the foolish stubbornness
of the ldng, it would not have occur
There are on record many other
instances of justifiable revolt against
governmental authority, and, indeed,
it is oftener true that mobs are justi
fiable than that they are not. The
reason is clear. Men generally love
peace and will submit to wrongs
rather than incur the danger
ing to right them. It is only when
the outrage is too flagrant, the op
pression too severe, that revolt oc
curs, and when it does happen it is
not until every means of peaceful re
dress has proved to be ineffectual.
Quietude is the normal condition of
human society, and anarchy a con
sequent of some disturbance of the
social system, but it does not follow
that anarchy is, therefore, so odious
that it should never exist. Nay, we
can imagine circumstances when it
would be far preferable to peace and
The creator has furnished us with
examples in nature. Earthquakes,
lightnings and tempests are as essen
tial in the natural world as are sun
shine and gentle showers. They
serve to restore and preserve the
purity of the atmosphere. So, in the
social world, occasional disturbances
are as much needed as general peace
and order. They reinvigorate socie
ty, restore a healthful tone to popu
lar sentiment, and start humanity for
ward to the attainment of greater ex
cellence. Their occurrence is to be
regretted, their immediate results to
be deplored, just as the occurrence
and consequences of earthquakes and
tempests are deplorable but the ul
timate good arising from them is gen
erally greater than the temporary
evil. The Boston tea mob probably
gave the world this republican gov
ernment the Kansas riots lead to the
abolition of negro slavery, and we
may hope that the existing labor ie
volt will restore the legislation, com
merce and industrial enterprise of this
country to their proper channels, in
stead of allowing them to be con
trolled by. the greedy and unprinci
pled for their exclusive benefit.
Let us be more careful to look be
neath the surface of whatever ques
tions we are called upon to decide,
and qualify our opinions by circum
stances not readily apparent to the
casual observer. Let us refrain from
condemning immeasurably those
whose situations we do not under
stand, and with whose feelings we
cannot, therefore, sympathize. Above
all let us not forget that the meanest
and most violent of the mob are still
God's creatures, towards whom we
owe duties which Ave have not always
faithfully performed. When Ave glo
ry in the deeds of the men of 1776,
let us remember that they Avere pa
triots who revolted against unjust tax
es. When Ave think of the railroad
strikers of 1877, let us reflect that
they are men Avho refuse patiently to
submit to starvation. If Ave believe
that there is a better method for them
to pursue to obtain redress for their
grievances than a resort to violence,
let us be good enough to inform them
thoroughly all about our preferable
plans for, in all the six thousand
years of this Avorld's history, mankind
seems to have failed to attain such
knowledge, and for that reason only
revolts, rebellions and Avar, have been
resorted to as the means for escaping
frohi the tyranny of iron heeled op
—The excitement incident to the
strikes of the railroad employees and
the attendant riots, have afforded oc
casion for the turbulently disposed
to give utterance to many Avild and
reprehensible expressions, and the
large newspapers of the cities are
using these mad speeches to excite
popular sentiment against the work
ing men Avho originated the strikes.
Every sensible man understands that
this is an injustice, but the most fer
vid and frenzied of these speeches
are matched by the sweeping and
bitter denunciations and impractica
ble suggestions of those who have es
poused the other side of this question,
and when they come to compare
notes, neither party will find them
selves entitled to accuse their oppo
nents of foolishness.
—C. M. Start, Esq., of Rochester,
spoken of as a candidate for At
torney General this fall. Mr. Start
is an honorable gentleman and good
jawyer and we would be happy to
see him elected to this position. But
why not give Mr. Wilson another
term Has he not done his duty
Avisely and Avell One term in some
offices is enough, but Avhere an office
has no patronage attached it is folly
to make frequent changes. By the
time one incumbent become compe
tent to discharge the duty he is se
aside, under such a^ rule, to make
00m for another.
Goodhue, District Court. First Judicial
John Hamilton, Plaintiff,
Haas Eagebretson, and Syneva Engebret
SOD, his wife, Defendants.
Notice is hereby given that in pursuance
aad by virtue of a judgment and decree of
the Diitrict Court, of the county of Good
hue, in the First Judicial District of the
State of Minnesota, made and rendered in
the above entil led action on the seventeenth
day of July. A, D., 1877, and on that day
docketed in the office of the Clerk of said
Court in tae county of Goodhne, in said
district, a transcript of which judgment and
decree, duly certified by said Clerk was, on
the 23d day of July, A. D., 1877, delivered
to me as such Sheriff cf said Goodhue county,
I, the undersigned Sheriff, as such Sheriff,
wiil sell at public auction to the highest
bidder for cash, at the front door of the
Court House, in the city of Red Wing, in
said Goodhue county, on Saturday the 8th
day of September, A. D., eighteen hundred
and seventy«seven, at ten o'clocK in the
forenoon of said day, the land and premises
described in said decree, and hereinafter
described, or so much thtfeof as will be suf-.
ficient to satisfy the sum of one hundred and
ninety-six dollars and eighty-five cents, to
gether with interest, costs and disburse*
merits, .,s in said decree directed. Said
land and premises to be sold are situate in
Goodhue county, State of Minnesota and
are described as lollows, to-wit. The west
half of the northwest quarter of section
number twelve (12) it: township number
one hundred and nine (109) north of range
number seventeen (17) west.
Dated Red Wing, Minnesota, July 24th,
A. D., 187?.
Sheriff of Goodhue county Minn.
Att'y for Plaintiff 41w7
In Probate Court, Special term July 7l,h,
In the matter of the estate of Frederick
Boatman, deceased.
Whereas. An instrument in writing, pur
porting to be the last will and testament of
Frederick Boatman, deceased, late of said
county, has been delivered to this Court,
And whereas, Frederick Horn has filed
therewith his petition, representing among
other things thai said Frederick Boatman
died in said county on the 25th day of May.
1S77 testate, and that said petitioner i« the
sole executor named in said last will and
testament, and praying that the said in
strument may be admitted to probate, and
that letters testamentary be to him issued
It is ordered, That the proofs of said in
strument, and the said petition, be heard
before this Court, af the Probate Office in
said county, on the sixth day of August, A*.
D. 1877, at two o'clock in the afternoon,
when all concerned may appear and contest
the probate of said instrument.
And it is further ordered. That public no
tice of the time and place of said hearing be
sjiven to all persons interested, by publica*
tion of these orders for three weeks success
ively previous to said day of hearing, in the
Grange Advance, a newspaper primed and
published at Red Wing, in said county.
Judge of Probate.
G. H. & W. H. CRARY,
Doctors of Dental Surgery
Office in new Post Office Block.
Residence corner of Third and Franklin
tss., T. 13. Sheldon's former residence. Had
Wing, Minnesota.
Justice of the Peace
Will attend to conveyancing and collect
ing. Office in Lawther's Block, entrance on
Bush St., Red Wing, Minn.
TJIOR the speedy Cure of Seminal "Weak
riess, Lo»t Manhood, and all disorders
brought, on by Indiscretion or Excea*.
Au DruggiPi has the mpredients.
Think of making a purchase in
Watches, Clocks, Jewelry, or Spec
tacles, without first examining my
stock and prices.
You will find just now the finest
line of goods that have yet been
shown in the city, all new and fresh
"At lower prices than anybody's
advertised cost sales."
Bush street, next door to old Post
Office, Opposite the Hickman House.
Third Street, Red Wing, Minn.,
Packers and Stock Dealers,
Keep constantly on hand a large and
choice selection of fresh meats, Game and
Fish. The best of Oysters in their season.
Cor. Third st. and East ave.
Worker iu IRON, BRASS and other
Sewing Machines Repaired
And made as good as new machines
Steam Fittings, Brass Goods, and Fancy
and Machine Screws kept on hand.
Tools. Knives, Scissors, Stove CoTers,
Water Pipes, Ac., promptly repaired.
All work warranted to give satisfacti on
Apply to editor of this newspaper
for half membership (at discount) in
Baylies' Great Mercantile College,
Keokuk, Iowa, on the Mississippi.
Bookkeepers, Penmen, Reporters,
Operators and Teachers thoroughly
fitted. Don't fail to address Prof.
Miller, Keokuk, Iowa.
Wholesale and Ketail Dealers in
Paints, Oils, Glass,
And Paper Hangings,
Graining, Kalsomining,
and Stencil Cutting.
28tf BPSH ST., RED Wiso,MiHir.
Attorney at Law,
Office over Old Post Office building, Bod
Wing, Minn. 38tf

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