Newspaper Page Text
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JpM and 3(dtn;rtistjr.
Newnan, Ga., Friday, August 26th, 1887.
WEEKLY CIRCULATION, 1,760.
JA8. E. BROWN. Editor.
Judge Speer and the Foreign Loan
Companies.
Iir our issue of the 12th inst. we made
mention of an important decision ren
dered by Judge Speer in the case of
Sherwood us. Rountree, which came up
for a hearing in the United States Cir
cuit Court at Macon four or five weeks
ago. The case, briefly stated, is about
as follows:
The plaintiff (who was shown to be
the authorized agent of the Corbin
Banking Company,) negotiated a loan
for the defendant amounting to $2,500.
The conditions stipulated in the con
tract were—
1- The payment to plaintiff, as
agent of the Corbin Banking Company,
of a commission of 20 per cent., (which,
in this case, amounted to $500. )
2. To pay interest on tire gross
amount of the loansit the rate of 8 per
cent, per annum.
:T. Loan to be secured by a mortgage
on 607 acres of laud, or by an abso
lute deed of conveyance.
At the expiration of five years (the
term specified in the contract,) defend
ant was unable to liquidate the obliga
tion, and plaintiff brought an action
/il the United States Circuit Court to
recover the full amount of the loan,
with accrued interest. Defendant re
sisted action by pleading usury on the
contract. In his charge to the jury
Judge Speer not only sustained this
plea, but amplified the grounds upon
which such a defense might be based-
holding “that -the practice of these
loan companies of withholding from 15
to 2<T per cent, of the amount loaned,
under the device of commissions for ne
gotiating the loan, .was usurious and il
legal, and that where the moneylender
who dealt through companies was
shown to have carried on a settled bus-
. . mess, where these exorbitant and ex
travagant rates in addition to the reg
ular interest were charged, he was pre
sumed to understand the nature of the
contracts loan companies were making,
and that in the absence of satisfactory
proof to rebut this presumption he
could recover only the amount received
by the borrower and legal interest.”
The jury found for plaintiff, but in
making up their verdict allowed only
tire net amount of the loan, ($2,000,) with
interest at 8 per cent, per annum on
said. sum. The verdict was made the
judgment of the Court; whereupon
plaintiff excepted and carried the case
by appeal to the Supreme Court of the
United States. The points at issue
, were reviewed by this tribunal and,
two weeks ago, a decision was ren-
bered affirming the judgment of the
Circuit Court.
fn his charge to the jury in the case
recited above, Judge Speer plainly elu
cidated the principle of law involved,
xnd was equally clear in showing what
constituted usury under the laws of
Georgia. As the case is one of unusual
interest- and importance, we append
hereto extracts from Judge Speer’s
charge to the jury:
s - “From this evidence it is apparent,
gentlemen, that a sum largely in excess
; if the legal rate of interest was held
hack by the lender, or liis agent, from
■- the borrower. Now, where the agent
who is authorized by his principal to
fend monev for a lawful rate of interest
v exacts for liis own benefit more than
; the lawful rate of interest, and does so
without the authority of the principal
lender or without his knowledge, the
loan is not thereby rendered usurious.
?. Where, however, tlie agent is author
ized to loan the money for usurious in
i'' forest, or where the lender—that is, the
* principal—had knowledge that the loan
was usurious, then the contract is in vio-
’ , lation of the law, and in a suit on an
instrument like this, the plaintiff
' can only recover the legal rate of inter
est.. This loan would unquestionably
- have been usurious if made by tlie
principal lender. It is usurious if made
f>v his agent with his consent, knowl
edge or acquiescence. I charge you
further, that if the circumstances are
such, either from the number of the
Transactions, the importance • of the
■ amounts involved, or the continuous
nature of. the business carried on
through t-lie same agency, from one, or
all of these reasons, it is reasonably in-
. ferable that the principal lender knew
the character of the contracts his agents
were making, he would be chargeable
with knowledge of usurious interest
and the usurious character of the con
tract, the law presuming that lie would
not carry on a business of a continuous
and important character without un
derstanding the nature of tlie contracts
made by liis agents. To summarize
what I have said upon this subject : If
these usurious commissions were re
tained by the agents for their own ben
efit without the knowledge, consent or
acquiescence of the principal, the prin
cipal lender would not be affected by
r iie usurious nature of the transaction,
and he would be entitled to recover
without deducting on account of usu
ry. If, on the other hand, these con
tracts were made and these commis
sions were withheld with his consent,
knowledge or acquiescence, lie would
be chargeable with tlie usurious charac
ter of the transaction, and he could not
recover any sum in excess of the legal
rate of interest, which in this State is
eight pet cent. And furthermore, if,
from the nature of the business, its ex
tent, the importance of. the amounts
involved, the continuous character of
the transactions, it would be reasona
bly inferable that a man of business, of
- ordinary intelligence, carrying on such
a business, would understand the na
ture of..the contracts that his agents
were making, he would be presumed to
understand the nature of the contracts,
and, therefore, the presumption that
he is chargeable with the usurious in
terest.. arid, with its consequences, in
lessening the amount of liis demands,
would obtain; and, in the absence of
proof on his part to rebut such knowl
edge, acquiescence or consent, the jury
would he obliged by their verdict to de
duct all sums of tlie plaintiff’s demands
over and above the amount due on the
face of the note with the legal rate of
interest calculated thereon.
“From the evidence contained in
that portion of the charge of the Court,
it is plain that there is an extensive
business carried on in the State of
Georgia, to which the plaintiff was a
party, by which it is the unvarying cus
tom to charge inordinate and extrava
gant rates of interest. In this case the
note sued on bore 8 per cent, per an
num, the highest legal interest permis
sible. The plaintiffs agents withheld
20per cent. Thus 28 percent, is im
posed on the necessities of the borrow
er, and, in addition, 10 per cent, attor
ney’s fees are charged. It is superflu
ous to say that no business, howsoever
prosperous, can survive the exactions of
these fearful and unconscionable in
terest charges. To correctly appre
ciate the enormous extent of these
transactions, we have but to turn to the
docket of this Court alone, where we
find that there are pending and have
been disposed of fifty-one cases upon
contracts of this precise character, in
volving $211,062,13, and mortgaging six
ty-six thousand nine hundred and elev
en acres of land.
“Now, the agreement by which Mrs.
Rountree • promised to pay 20 per
cent., in addition to the 8 per cent, per
annum interest, is part of the plaintiff’s
case; it is an essential part of the con
tract, and was put in evidence by the
plaintiff. Unquestionably, it is the
rankest usury. It is not disputed that
one who negotiates a loan may be al
lowed reasonable compensation for
liis expenses and trouble, in addition to
interest. But where there is no ex
pense and no trouble, there cannot
properly be charged any such remu
neration. But no decision can be fouud
where a court of justice has sustained
a charge of twenty per cent, wliete any
such charge was traceable to the mon
ey-lender. But here is twenty per
cent, in addition to eight per cent, per
annum. * * * The truth is, the
enormous commissions charged are
merely intended as a mask thrown over
the transaction. The statute of Geor
gia, quoted above, is intended to defeat
schemes of this character, and a fraud
upon a statute is a violation of the
statute. The sendees rendered in the
negotiations of this loan, had they been
rendered the defendant, when in fact
they w r ere not, would not have been
worth at the most more than a tenth of
the sum charged. Nor is this, under
the circumstances, a question for the
jury. It is usurious on its face, and in
the absence of explanatory proof, it
was the duty of the court to say so.
"It would be difficult to devise contracts
which, in their operation and effect,
would more completely defeat the ob
ject of the usury laws than the contract
now before this Court. In its inception
20 per cent, of the entire capital was
withdrawn. No amount of industry in
ordinary and legitimate business can
compensate the borrower for so great a
deduction. In addition to this, he
must pay 8 per cent, as lawful interest
—in itself in excess of the interest
charges of many States. This is espe
cially true of those engaged in the pur
suits of agriculture. The Courts ordi-
narily have nothing to do with the re
sults of the contracts which people
make, but the direful effects of such
contracts, as that upon which the
plaintiff has brought his action, well il
lustrates the wisdom of tlie laws of
Georgia upon this subject. Many fami
lies, who otherwise would have en
joyed all the comforts of home and ad
equate support, have been turned out
homeless and landless. The head of
the family has been induced by the
hope of speculative gain to enter into
contracts to pay these exorbitant and
extravagant rates of interest for the
use of money. Not only does he find
that the product of his farm is insuffi
cient to pay the principal, but lie can
not support liis family and pay the in
terest coupons as they fall due. It is
then optional, with the creditor to fore
close his mortgage or sue his notes for
the entire amount. The judgment of
foreclosure is obtained, the sheriff or
the marshal brings the land of the
debtor to the block, and a family, with
all its productive capacity to the State,
and all of its contentment and happi
ness within its own circle, is destroyed
and scattered. The money lender is
compelled to purchase the farm, which
he obtains for a moiety of its value.
Unacquainted with the conditions of
our climate, the character of our soil
and the methods of our agriculture,
lie is unable to cultivate his acquisition
in a manner profitable to himself or
beneficial to the State. In every possi
ble view, therefore, the system is abso
lutely ruinous. * * * In this case
the plaintiff must be content, so far as
the action of this Court is concerned,
with liis principal and 8 per cent, in
terest. Tlie verdict by which he has
been deprived of tlie 20 per cent, so-
called commissions included in the face
of the note but never received by him, is
sustained, and the motion for a new
trial is overruled.”
The Old “Know-Nothing” Party Re
vived.
the political well-being of the country.
What is most needed now are reforms
in those we have.
A Timely Measure.
One of the most timely measures in
troduced during the present session of
the Legislature was that proposed a
few weeks ago by Hon. W. Y. Atkin
son. The bill requires that all fees de
rived from the inspection of oils be cov
ered into the State Treasury and cred
ited to the public school fund. The
total amount derived from this source
amounts annually to about $15,000; but
under the admirable management of
the Commissioner of Agriculture,
this sum has heretofore been divided
out among the four or five oil in
spectors appointed by Commissioner
Henderson and the State has received
no benefit whatever.
A substitute for Mr. Atkinson’s
bill was reported by the commit
tee, which provides- for the appoint
ment of inspectors in the cities of
Atlanta, Savannah, Augusta, Macon,
Columbus, Rome and Athens, the in
spectors to be paid one-half the fees
collected by them for making the in
spection. The bill as amended will cer
tainly become a law, and hereafter the
State will receive about $7,500 per an
num. more than she has been getting
heretofore, (and from a source that,
until now, has strangely enough been
overlooked)—or, a sum considerably in
excess of the apportionment annually
made for the support of public schools in
Coweta county.
The further we delve into the mys
teries of the Agricultural Department
the more interesting it becomes.
The joint Legislative committee ap
pointed several days ago to consider
the question of the lease or sale of the
State Road and recommend the manner
of its disposition, presented their r^-.
port last Wednesday. It recommends
that the Governor, Comptroller-Gener
al and Attomey-General be authorized
^0 advertise in London, New York and
other places offering the road for sale
and inviting bids for the same—which
bids shall be considered by the next
Legislature. The bids are to be sealed
and opened by the Legislating in joint
session.
C. C. Bingham, a whipping boss in
charge of the convict gang now at
work on the Georgia Midland and Gulf
Railroad, has been dismissed by Gov
ernor Gordon for brutal and inhuman
treatment of the convicts, four of
wliom have been examined by the As
sistant Keeper of the Penitentiary and
found to bear marks of brutality piti
ful to see. Some lively developments
are expected, and may result in a gen
eral cleaning out of the Augean sta
bles.
The political prognosticator of the
Augusta News prophesies that the fol
lowing members of the present House
of Representatives are Congressional
probabilities of the near future—the
next election,.for instance: E. G. Sim
mons, in the Third District ; W. Y. At
kinson and W. A. Little, in the Fourth
District; W. A. Huff, in the Sixth Dis
trict; W. C. Glenn, in the Seventh Dis
trict; R, B. Russell, in tlie Ninth Dis
trict. Well, why not?
Judge Sam Hale, of the Supreme
Court, suffered a second stroke of par
alysis last week and is now lying in a
critical condition. He is at Ashville,
N. C., but if his condition improves
sufficiently to permit it lie will be con
veyed to Mt. Airy to-day or to-morrow.
It is believed that the change will re
sult beneficially.
The executive committee of a new
political party recently organized in
Philadelphia under tlie name of tlie
| “American party,” has issued a call for
j a national convention, to meet in that
! city on the 16th and 17th of September.
I The objects of the new party are set
I forth in the following platform of prin-
: ciples:
First, to perpetuate the sentiment of
America for Americans,
i Second, the restriction of immigra-
' tion.
Third, a thorough revision of the
naturalization laws.
Fourth, reserving American lands for
American citizens only.
Fifth, the protection of Americans in
all their rights on land or sea, in all
parts of the world.
Sixth, to restrict and guard the right
of elective franchise.
Seventh, to abolish polygamy in the
United States immediately and entirely.
♦ Eighth, to enact and enforce such
laws as will tend to eradicate intemper
ance.
Ninth, to develop the resources of
the country by a wise system of inter
nal improvements.
Tenth, to. protect and promote the
American system ojE free common
schools.
Eleventh, to adjust the relations be
tween labor and capital on a permanent
basis of equity and justice.
There doesn’t seem to be any special
demand at this time for a new party.
There are too many parties already for
A detachment of the Salvation Ar
my is now quartered in Rome, and that
goodly city is being treated to the nov
elty of an open-air revival—such as it is.
From certain gallant remarks in Mon
day’s issue of the Bulletin we greatly
fear that Editor Lowrey is “mashed”
on the tambourine girl. Have a care,
Colonel!
Tiie proposed amendment to the pro
hibition law now in effect in Coweta
county, (the full text of which was pub
lished in The Herald and Adverti
er last week,) was introduced in the
House last Monday by Hon. J. C. Mix
on. There is no question as to its pa
sage.
MRS. J. S. WILLIAMS
Item dbuertisements.
RESIDENCE FOR RENT!
The McKinley House and Lot. fronting: the
Baptist Church, is for rent. Possession given
immediately. T. G. BURPEB.
To Rent, from ist of October
Next!
The house and lot now occupied by Mr.
“Cit” Brown, known as the “Posy Place.”
House newly covered. Elevated, healthy lo
cation. Rich garden ground, facing east
ward. Good water. Several acres Bermuda
thickly set for pasture. Convenient to the
square. Apply to J. J. GOODRDM.
Homestead For Sale.
I will sell to the highest bidder, before the
Court-house door in Newnan, Ga., on the
first Tuesday in October next, within the le
gal hours of sale, unless previously sold pri
vately. the following described land:
Lot of land No. 132. in the original First,
now Turin district, of Coweta countv. con
taining 202J4 acres, more or less, and bounded
on the north by lands of R. B. Perkins and
W. B. Harris, on the east by 'ands of R. B.
Perkins and A. C. Russell, on the,south bv
landsot A. C. Russell, and on the west by
lands of C. J. Harris. A good two-horse farm
is cow being cultivated oh the place. Terms
easy. Aug. 25, 1S-S7. .
MRS.'MARY M. HARRIS.-
Will have in her Fall Stock
of Millinery, Fancy Goods and
Notions early this season.
Her stock will be large and
handsome, with prices to suit
everyone. She understands
the wants of the people in
this line equally as she under
stands her business, and can
not fail to suit those who fa
vor her with a trial.
€bucational.
1887. 1888.
PALMETTO HIGH SCHOOL,
(FOR MALES AND FEMALES,)
PALMETTO, GA.
JOHN E. PENDER GBA S T, Prin.
FALL TERM WILL OPEN WEDNESDAY,
SEPTEMBER 7, 1887.
Healthy climate, pure water, good society,
cheap board and tuitk^j, experienced teach
ers, and special care to pupils.
Tuition, per month - •
Music, per month • -
Board per, mouth - -
11.60 to $4.00
3.00
8.00 to 10.00
Send for Catalogue.-
THE
36th SCHOLASTIC YEAR
COLLEGE TEMPLE
WILL BEGIN
Monday, August 29th, 1887.
Having recorded our most successful year,
we present the claims of able instructors,
high scholarship, moderate rates .and health
ful locality. For particulars, address,
M. P. KELLOGG, President,
Newnan ,Ga.
NEWNAN
MALE SEMINARY!
The Fall Session will begin
Monday, August 29th, 1887.
The school will be under
the supervision of Prof. A. S.
Jones, as Principal.
Board, $10' to $12 per
month. Tuition, $2 to $4.50
per month.
The patronage of the public
is solicited.
Chas. L. Moses, Proprietor.
THE GEORGIA
SCHOOL OF LANGUAGE,
SCIENCE AND ART.
One of the best Business and Normal Schools
South, and only one having a separate Female
Department, offers a select, unsectarian,Chris
tian home to young men and young ladies,
providing Tuition and Board, including
Washing, Fuel, Lights, etc., for only ?12 per
month each! Penmanship, Book-keeping,
Shorthand, Type-writing and Music thor
oughly taught. Full Business, Normal, Col
legiate and Irregular courses of study. Su
perior Preparatory Department. Healthful-
ness unsurpassed. Over 200 students the past
year. 16th year begins in Sept. Early appli
cation is necessary to secure a place- For cat
alogue addrsss at once,
TERRILL E. SIMMONS, Pres’t,
Norcross, Ga.
SOUTHERN
FEMALE COLLEGE.
College of Letters, Science and Art.
FACULTY OF SEVENTEEN;
SCHOLARSHIP HIGH.
$41500
Over a thousand bills and resolutions
have been introduced in the House
since. the Legislature convened, and
the end is not yet. Georgia- is a
great State.
Library, reading room, museum, mounted
telescope, apparatus, twenty-one pianos, com
plete appliances. Elocution and Fine Art at
tractions. In Music the Misses cox direc
tors, vocalists from Paris and Berlin, distin
guished pianist, and ladies’ orchestra. Board
and tuition, $207. School begins Sept. 2*411.
MRS. I. F. COX. President,
LaGrange, Ga.
Worth of MENS' AND BOYS’ CLOTHING just
for the Fall and Winter trade, comprising the larg
carefully selected stock of Ready-Made Clothing in
ket, which we propose to sell at prices that canno P ,
ted this side of Atlanta. We’ve got ’em—all sizes, qualities,
and styles—and they must be sold.
100 BOXES TOBACCO
Were bought by us just a short while before the recent ad
vance, by which we can save to our customers from 15 3®
per cent., on this lot alone. It is a prime lot of Tobacco, and
would be a bargain even at the prices that now rule.
ft
CAR-LOAD BAGGING AND TIES
Received this week, and more on the road. Best grades of
both constantly in stock during the season.
y
r
$
CLEARING OUT SALE!
We have a large lot of Boots, Shoes and Hats, brought over
from last season, which we are selling at half price and less, in
order to make room for our good, which are coming in every
day. When you call be sure to see our “half-price” goods.
It will interest you to know how good and how cheap they are,
even if you do not wish to buy.
GEORGIA RAISED BARLEY AND RYE,
New crop, and in quantities to suit purchasers. Now is the
time to plant.
Remember, we are headquarters for anything and every
thing in the Dry Goods, Clothing and Grocery line, and our
“headquarters” are not “in the saddle,” either. We are here
to stay.
ARNALL & FARMER.
WE ARE NOW
CLOSING OUT OUR STOCK OF SPRING AND SUMMER
CLOTHING
Not exactly at cost, but at such greatly reduced prices as wi r
astonish you. We have between fifty and seventy-five suits
all sizes and qualities, yet on hand that must be sold before the
season closes. Call and examine our stock.
A LARGE LOT OF
HATS!
R:
>rl
r,
RECEIVED THIS WEEK.
• s,
A, i
SEVERAL SETS OF 3-ROLLER
CANE MILLS AND EVAPORATORS,
4 t
fMANUFACTURED BY THE CHATTANOOGA PLOW CO.
WHERE
Do You Intend to Educate Your Daughter?
ON HAND AND FOR SALE AT FOUNDRY PRICES.
Lagrange female college,
A LARGE ASSORTMENT OF
Lagrange, ga.
Forty-first Annual Session begins Septem
ber 21, 1687. Thorough Teachers, Approved
Methods, Practical Instruction. Full Litera
ry Curriculum. Superior advantages in In
strumental Music, Voice Culture, and Art.
Singing by note taught daily by a teacher of
acknowledged ability. Book-keeping, Elo
cution, Calisthenics, and Vocal Music taught
in regular course, free of charge. Ten thou
sand dollars now being spent in improve
ments. Write for catalogue before deciding
where to send. RfFb'S W. SMITH,
Euler B. Smith, Sec’y. ! President.
COLGATE'S TOILET SOAPS! 1
WALKER HIGH SCHOOL,
1887.
Tlie Fall Session Begins Augnst 301B.
NORMAL FEATURE.
In addition to other advantages offered by
the school we mention that of Normal in
struction. Having prepared a great many for
teaching, this school offers special induce
ments to inexperienced teachers, and those
i expecting to follow that vocation.-
DANIEL WALKER, Principal.
MRS. M J. NIMMOXS, Assistant.
Nc-wnan Ga., Aug. 5tii-tf
JUST ARRIVED !
The purest, the best, the most economical Soap made. Try it
once and you will buy again !
TWENTY-FIVE BUSHELS
GEORGIA RAISED RYE, AT $150 PER BUSHEL!
JUST RECEIVED.
HARDAWAY & HUNTER.