Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1876-02-02
Mr. TALBOT from the Committee on the Judici.

son of his residing in said town as tender of a
bridge, owned by another town, and in toll house
also owned by another town. Printed under rule.
Mr.. ALEXANDER, from the Committee on State
Lands, order, reported resolve appropriating
$500 III aid Of road passing through Township F.
X /, Aroostook county. Printed under rule.
A communication was received from Hon. S. J y.
| Chadbourne, Secretary of State, transmitting the
report of the Warden, Inspectors, and other Off
GERS of the Maine State Prison for the year 1875,
: which was referred to the Committee on State
Prison.
READ AND ASSIGNED.
Act 10 incorporate the Franklin Central Agricul-
tural Society; an act to authorize {. NJ. Davis and
| W. A. jackson to navigate Damaiiscotta lake and
river by steam; an act TO amend and renew the
charter of the Sebec Lake Steamboat Company
an act to amend chap. 50, Sec l of the revised
statutes in relation to libraries, charitable societies
| aud public cemeteries; an act to extend the pow
ers OF school districts.
PASSED TO BE ENGRossED.
An act in relation to fiscal school returns Of
towns to be made to the State Superintendent of
common schools; an act to amend an act entitled
an act to amend sections G3 and GA of chap. 40 of
the revised statutes relating to foreign insurance
| companies; an act TO amend sec. 81. chap. 81 OF
the revised statutes relating to witnesses and evil
dence by adding fifth exception; an act author
| ling the Land Agent to sell the Islands belonging
TO the state; an act to incorporate the Cape Eliz
abeth Dyking Co.; an act to amend sec. Of chap.
20 OF the revised statutes in relation to the time in
which assgnees shall file an inventory in the pro-
! bate court.
Bill an act to amend sec. 60, chap. Is of the re-
! vised statutes relating to damages ways, as
amended by chap. 2l5 of the public laws of
1874, came up on its passage to be engrossed, and
was laid on the table on motion of Mr.. BASS.
Bill an act to incorporate the Aroostook River
Log Driving Co., on its passage TO be engrossed,
was tabled on motion of the same gentleman.
| Bill an act to amend an act entitled act to
I >, iDf, hnr 0Dy Il
statutes, relating to foreign insurance companies,
was amending by striking out the second section,
on motion of Mr.. PORTER, and passed to be en-
crossed.
| Biz an act to amend sec. of chap. 20 of the
revised statutes IN relation to the time in which
slgnees shall file an inventory in Probate court,
was amended in the same particular on motion OF
the same gentleman, and passed to be engrossed.
The bill to reduce the rate of interest came up
| at IL o'clock by special assignment the question
being on accepting the report of the Finance Com
nittee, reporting ought not to pass on the bill.
Mr.. HAYNES took the floor aud proceeded to
reply at some length to the arguments of the gem
tleman from Calais Mr.. Pike. He then went to
the merits OF the present law, and spoke an hour
in opposition to the bill before The House. Re-
mar ks hereafter.
Mr.. Powers then took the floor aud spoke half
an hour in opposition to the bill. He laid that our
| present law has been upon the statute book for
five years; II Affects every town and plantation 10
the State; all the people of Maine are more or less
Interested in the subject. The right of petition
also exists and yet, he was not aware, duuug the
five wears the present law had been III existence,
that single petition had been received. as king for
the restoration of the Old law This fact alone he
| contended should have serious weight, with MEM
bcrs of the House in casting their votes. The bur-
den of pi oof upon those who would restore the
usury laws, to show good reasons tor the restora
ton.
He then proceeded TO critcise the provisions of
the bill before the House. 1t fixes the rate at six
per cent. but makes some exceptions, among which
is that Of cattle. One farmer goes TO another to
borrow of him 500, and he cannot pay over six
| per cent. under the bill But if he gets of him q
woke of cattle worth 500, he can give him his OBJ
legation to return two hundred in four years.
There had been many such obligations given and
perfectly legal under the bill He also objected to
the provision which provde that if debtor comes
into court and makes oath to excessive interest,
such testimony shall be sufficient proof Thereof, un-
| less one of the creditors comes into court and
makes oath to the contrary.
| lie contended that it was utterly impossible by
any legislative act to fix any rate of interest which
shall govern the contracts of parties in the matter
Of lending and borrowing money. The rate of in
terest is dependent upon the necessities and the
laws of trade, and it will vary different days
and in different places. And he doubted the ex-
pediency of putting upon the statute book laws
that it is generally understood and will be
tinually violated. 1t has tendency to bring into
disrepute other laws. Again. he did not under
stand the rule by which gentlemen determined six
per cent. to be the legal rate Of interest," and not
four, eight or ten per cent. Six per cent. might
be all money was worth to day, four or ten per
cent year from to-day.
/ 1t had been argued that the money borrower is
the weak man, and the lender the strong man.
He took issue on that although in some instances
| it might be so. But so far that presented any
reason for interfering with the contracts between
tie borrower and the lender there was double the
reason for interfering between the landlord who
is wealthy, and rents his houses at rate that pro-
duces hun per cent. and the tenant who is poor
and has to pay this ten per cent. No law existed
| against it. What reason could there be that the
State should say to the people, "you are compe-
tent to make bargains or contracts, or to negoti-
ate loans of money, but you are not competent 10
negotiate contract as to the amount of interest
you shall pay for it." He contended that many
more men ruined by improvident loans and
bargains than by the rate Of interest they pay for
any sum of money
The gentleman from Calais [Pikel has felt the
force Of the fact that the last vestge of the
usury laws have been swept from the statutes of
Great Britain, and any body conversant with the
history of England, knows that she is slow and
cautious in repeating any of her laws. There is
! no limit there, the law being the same as it is
here to-day. 1t had been said that the rate of in.
terest under the national banking act, was estab-
lished at seven per cent. That was true where no
other rate is established by the State Territory
| in which the bank is located In short, the
tl0nal banking act mas In II all the provisions OF
our usury act before the act Of 1870, except that
the rate of interest is fixed at per cent. in
stead of six per cent, where other rate is pro-
vided by the law of the State or Territory in
which the bank is located. The march, he said,
is onward. One State after another constantly
wheel into line, and to-day twenty States and
Territories some of the largest and most wealthy,
have law similar to the State of Maine as to
the rate of interest, some going as high as ten
per cent. when no rate is agreed upon in writing.
lie next touched the matter of savings
banks, arguing that it is the money of the poor
man, mostly, that finds its way into those insttu-
tions. 1t is then loaned to farmers, sometimes to
poor men, and often to large corporations and in
dustries essential to the development and re-
sources of the State. Pass the bill before the
House, and would not this money be sent abroad
If gentlemen wished to prevent savings banks
from investing in worthless bonds. then retain the
present law. The trouble now is not that money
Is high ard money cannot be had, as it was in
1857 but the trouble is that business is depressed
all over the world, and no man wants to take
money and go into business, and consequently it
has accumulated in the banks. He did not con-
slider remedy for these ills would be the restora
ton of the usury laws.
lie next referred to his own county Aroostookl
and admitted that the rates of interest higher
there than in other parts of the State, which he
-. l..