The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-07-18
HE WALL STREET USuRERS.

The Law Under Which They Were Indicted.
The indictments against number of prominent
brokers OF this city on the charge of exactng
usurious interest from their patrons has excited
general interest and comment. The trials OF the
OFFENDING parties win tend to expose the inside
machinery Of Wall street and develop the system
how fortunes are rapidly accumulated 1t will be
observed from the suboined law against that
the statute is Q new one, but that, like many
other laws, IL has not been enforced
The act which went into effect on the LIST Of
January, 1880, contains the following provisions
SECTION ]. The rate Of interest upon the loan or
.forbearance Of any money goods or things in action
shall continue to be dollars upon 800 for one
year. and after that rate for greater less sum-
for a longer or shorter time.
SEC. 2. No person or corporation SHALL directly
or Indirectly, take or receive in money, goods or
other things In action or in any other way any
greater greater value for the loan or forDear
ance of any money, goods things in action than is
above prescribed.
SEC. 8. Every person who, for such loan or for
bearance. shall pay or deliver any greater sum or
value than Is above allowed to be received and his
personal representatives, may recover in an action
against the person who shall have taken received
the same ana ms personal representatives. the
above the rate aforesaid If such action be brought
within one year after such payment or delivery.
one year and prosecuted with effect, then the said
sum may be sued tor and recovered with costs, at
by any Of the poor OF the town where such
payments may have been made, or by any county
superintendent OF the poor Of the county IN which
the payment may have been made.
On the 18th of May, 1887, the following act TO pre-
vent usury was passed.
SEcTIoN1 The nth section OF title three OF chapter
four, part two OF the Revised Statutes, Is hereby
amended so as To read as f0llows:-
4 bond ali
other securities whatsoever Except boomry
goods other things Whatsoever whereupon whereby
there shall be reserved or taken secured agreed to be
loan forbearance Of goods other things
ferred previous to the time il shall take effect
SEC. 2. Whenever In an action at law the defend
ant snail plead give notice OF the defence of usury
and shall verify the truth OF his plea notice by
affidavit, he may for the purpose of moving the
usury cali and examine the plaintiff AZ witness In
the same manner a. other witnesses may be called
and examined.
SEC. Q. Every person offending against the pro.
visions Of the said title or OF tins act may be com
PEELED to answer on oath any bill that shall be
hbited az ainst MIN In the Court OF Chancery Tor re-
lief or discovery, or both.
SEC I. Whenever any borrower OF money, goods
or things in action shall file bill In cnancery for re-
lief or discovery, or both, against any violation OF
the provisions of the said title OF this act 1t shall
not be necessary for him to pay or offer TO pay any
nor shall any Court OF Chancery require or compel
the payment deposit Of the principal SUN IN
granting relief compelling or discovering to the
borrower any case usurious loans forbidden Ivy
said title or by this act.
SEC. Whenever IL shall satisfactorily appear By
the admissions of the defendant, or by proof that
any bond, bill note, assurance, pledge, conveyance,
contract, security or any evidence OF deDt has been
taken received In violation OF the provisions
the said title OF this act the Couri VI Chancery
shall declare the same TO be void, anu enoin any
prosecution thereon and order the same be sur
rendered aud cancelled.
SEC d. Any person who shall directly or Indirectly
receive any greater interest discount or considera-
ton than prescribed IN the SAID title, aud viola
ton the provisions OF said title vi tnis act shall
be deemed guilty of msdemeanor, and ON convic- 1
ton thereof the person offending snail be punish
ed by fino not exceeding $1,000, or Imprisonment |
not exceeding six months, or both.
SEC. L. IL snail he the duty o all courts OF justice
10 charge the Grand Jury especially 10 inquire INTO
any VIOLATIONS or the PROVISIONS Of The said ute VI
this act.
SIC. s. Every plaintiff examined as o witness pun
suant 10 the provisions OF THIS act any defendant
un0er the provisions Of this act VINO snail swear
falsely, snail, upon conviction thereof suffer the
pains and penalties OF wiliuI anu corrupt perjury
hut the testimony given by any plann, the an-
swer or any detendant made pursuant ~ the said 1
title or OF this act, snail not be- used against such
person be ore amy grand Jury, the trIat ol any
indictment against such person.