The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1855-02-23
VOL. Xxx.


ment In such terms thought the very great inpor.
lance Of the subject required upon The effect Of our
road Company and other corporations. All the papers
With copy Of the law Of New York and Of Illinois upon
prsfacs awe have been requested to publsh the follow
Ing law Of the States Of New York and Illinois, which
win be seen settles the mattsr-and the rost INDUCED
followng ain the Of these bonds there v suck
thing usury. The law both Of nlinoi. and York
exempts them from the regulations wnicn pfonio tne
making Of contracts for more than certac prescribed
rate of INTEREST,"
Your remarks Of Wednesday, a. you said yesterday
laws and again revert to the subject BY reason Of Id
vast Importance and the necessity OF correct under
standing Of the effect and operation Of The law prohbi
ing corporations from interposng the defence OF usuy
Az the law is Short for convenience Oh reverence
l No corporation shall hereafter inssrposs tho defence 4
used in this , e.. 'h a.n.i = CON
panies having Of the and privileges Of
ss. ri P s: :.
Now in the nrs place. 1t will be seen that the second
proyson to
cd in the first section IL has been argued that the leg
lative intent was to limit the prohibition 70 such corpo
Of the law requires this limit and that NO othsr thai
banking corp oratons strictly speaking possess power
and privileges xhsh may mot b e Sy
It. This view Of the legislative intent TO limit the pr
aGen By IL. s.1nss eounss Of the Illinois Central
New YORK ana New Haven Railroad Company, s.s]
ing to repudate the liabilities Of that corpor
ton by the Interpolation Of the defence OF usuri
But let me, for the fate Of the argument, admit N
RsohiDtion to es applicable to railroad
feet the usurious contract itseit simply declares tn
the corporation shall not ntepose the defence Of uslr
It Is the remedy not the contract which the law undo
takes to deal with. Now. what the about d
contractG quote the statute - a. 8
All Ss & 81 ::suss
tomry and respondentia bonds and eontracts and all
ssss e e1s;
taken greater or s.sss e, ysrs for
action than !: above Pis;Griesa tsvsn dollars upon
Now, repeat what you said on Wednesday, that
bonds of the Illinois Central Railroad Company bel
tainted with usu5y under this act are void IN;
manner expressly or by implication exemps the bon
from the operations of the general statute.
p.si.na T .sss tSe ni'n law $50 o1s
road companies to borrow. money at usurio
rates Of interest or exempts the parties to such GO
fine of 81 900 imprisonment for six months, or bot
at the discretion Of the court for each offence or In
does anything more than prohibit the corporation fr
it may be to defeat the collection enforcement Of
gsurious contracts at perfect liberty to do So
quote Sec. S Of Chapter $50, Laws Of 1857
Whenever Il shall satisfactorily appear BY the sdmis
AN piasss, sSav:ysnss eonsr.o .ssuI.y
dsnce Of has been taken received in violation Of
e. Go
be snsn s AMI
By no ders Of the last Of ss Of bonds Of
Illinois Central Railroad Company. This, take II,
not very violent superstition for how the holders
ever expect payment out Of the security mortgag
s to shs properly
its road and franchses to satisfy that Judgment.
It IL for the interest of every stockholder and ev
ing; ard how Is 1t accomplished The corporation
not interpose the defence Of usury. The bonds
ns'tItnelss. absolutely void and Al that nsc e
either by the admissions Of the defendant or by q
petent proof, that more than seven per cent per
mum was taken or received, or reserved, or agreet
be taken or received or reserved, upon the \
Tor which the bonds were giveni and 1t then becol
the duty Of the court ito declare the bonds void-to
SURRENDERED and cancelled"
Now, in the struggle which must hereafter be ha
or betwes one and another set of bondhollsrs-w
the time comes, as 1t soon must come for the ope1
Of the eyes Of all parties to the extraordinary hauc
ton unter which they have heretofore regarded the
securities Of the company and the contest 10 to de
mine who shall have the itself and its equipme
and the corporation franchise-then under our exits
companied BY the requisite proof which can alv
he had, these usurous bends must all be declared BY
SouIt1, No snoy now ueclhIoQ Dy tue AW, 8Oeotu
void njunctians must be isrued BY the Courts,
ing prosecutions upon them, and orders must BE- is
BY the Courts directingtheir surrender and cancea
feel the most entire confidence In the soundne
this view Of the law. The question Is one Of the 81
est NEUTRALITY-SUSPICIOUS. In connection with railroat
So,ss Gs TO- + be TIA.
tnue to declare that the bonds Of this company
In law, not capable Of being enforced by suit 10
defence Of usury by the corporation itself to the con
~ notwithstanding. h.