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'*C' 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.