Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1878-02-02
LETTER FROM JUDGE EMMETT.

danny or MUSIC on wednesday evening. Ills
honor reprimanded and discharged them.
LETTER FROM JUDGE EMMETT.
lie Faro,.s the Present La,v for Fo,'eclosing
M0ytOaOes---4nothcr Tie,U.
Editor Of the Daily GLOBE.
observe that the question of restoring the
old law concerning the foreclosure of mort
cages is being agitated in the Legislature,
and am glad to find number of prominent
Senators opposing the movement. That a
foreclosure in Chancery, where all the equi-
ties can be interposed, is really the best for
all parties, will hardly be questioned, especi-
ally as it settles all disputes, and results in a
title which neither can afterwards disturb
The staple objection to the change made last
winter seems to be the additional cost to the
mortgagor, but it is somewhat singular that
this objection comes from the money lend
ers rather than from those who have
this extra cost to pay. Mortgagors
as rule, are IN favor of the law as it now
exists, because, as before said, whenever an
action Of foreclosure is commenced, they can
interpose by way of answer, any defense they
may have, whereas foreclosure by adver-
tisement puts them to the expense of COM
mencing and prosecuting separate action
for that purpose-or forces them to abandon
their defense.
The expense of foreclosure in chancery
is in fact not SO much greater than that by
advertisement, as to make much difference,
and when the costs in such actions are cut
down, as is proposed, this objection will van
ish. But do not intend in this communi-
cation to trouble you about the mere mode
of foreclosure. There are other just causes
of complaint which the Legislature may re-
move, and to which desire to call attention.
Prominent among these is the attorney or
solicitors fee provided for in almost every
mortgage made during the past ten years OF
more. This idea of making the mortgagor
pay the mortgagee's attorneys fees, though
first resorted to by the meaner and more
of late been adopted by nearly all who lend
money on mortgage security. It furnishes an
easy way for grasping avarice to extort espe
terest; but whether that is the real object or
enough at any time, for the debtors property
W 10 CLdlS cu WILL LuS pay ulcuU VI LIS
debt and interest? And should it hap
pen through misfortune or hard times that
he cannot pay promptly, must he be saddled
with an additional burden-forced, as it
were, to purchase club and pay to have it
skilfully welded in breaking his own head?
Ordinarily the borrower and lender agree
upon the rate of interest and the security,
and there the actual negotiation ends. Moth
ing is said about an attorneys or solicitors
fee, and the first knowledge the borrower
has of it's existence, is when be finds it
printed in the mortgage. Perhaps he does
not notice it all; but if he does, he is gener-
orally informed that the mortgage is in the
usual form, and he at last reluctantly sub
mits, hoping, and perhaps be-
lieving, that he will be able
to avoid it by prompt payment.
Now, if we take into consideration the fact
that at least tnree-fourths of the mortgages
given are for less than one thousand dollars
and that for more than one-half of these are
for less than five hundred dollars each, and
the further fact that of those given OF ma
turing since the revulsion of 1873, large
majority have not been paid at maturity and
have been OF will be foreclosed, we can form
some estimate of the grievous hardships it
imposes on small borrowers especially, and
of the aggregate sum thus wrested from the
poor and unfortunate by authority of law,
AS the average length of time which mort
cages of one thousand dollars or less run, is
certainly not more than one year. Let us
see how this attorneys fee affects those who
for any reason are unable to pay.
The statute, if it is SO specified in the
the mortgage, allows an attorney or solicit
or's fee to be collected of the mortgage.
varying in amount according to the amount
of mortgage. If the mortgage does not ex-
coed $500, this fee may be 1926. If it is for
more than $500, and not in excess of S. 900
the fee may be $50, and so on according to
the amount of the mortgage until a fee of
5000 is reached and you may rest assured
that the highest fee allowed is always pro-
vided for. Now, when the mortgage is just
$500 OF $1,000 this fee is per cent on the
sum borrowed, which, added to the interest
on II per cent. mortgage running one year
amounts to II per cent. on the sum borrowed.
You will also observe that if the mortgage is
for 5000 only, the attorneys fee of $50
is more than 81 per cent. additional, that it
is more than per cent. on $500, more than
per cent. on $500, and more than per
cent. on 5000; and that the 1875 fee on a
mortgage of $4OO is over 6 per cent, on
$500 over per cent, on 5000 is 1919 per
cent, and on a mortgage of 800 for one
year is IS per cent. Could anything be
more apprehensive? And yet the worst fea-
ture is that it bears hardest on those who are
the least able to stand the pressure, to-wit,
those who give small mortgages.
I do not intend to indulge in any sweeping
denunciation of money lenders. AS a rule,
they are good citizens, and not disposed to
Cypress; but the best of them will secure all
the advantages which the laws permit; and
will enforce the collection of this attorney
and solicitors fee, as unsparingly as the
meanest Shylock in their ranks. While
there was nothing to control them, money
lenders provided for an attorneys fee so ex-
horbitant, that it was financial ruin in many
cases, to meet it. Yet never have heard OF
any one remitting it when foreclosure was
resorted to. This practice became SO OPP
pressiye that the Legislature in 1873, was
forced to interfere. but fell far short Of rem.
edying the evil, as l have endeavored to