Evening star. [volume] (Washington, D.C.) 1854-1972, 1884-11-15

- pay aaeaher dollar month when ne gets TIE
money. ana that Is TO 60 indefinitely. withou0
any limitation. Now. tie only thing 10 rcaeesn
ina tnat Transaction, IN my estimation. fro4 Woe %
II is an fnter pdrte system o, satnhiinr among
them, for, in distributing the mesey thcy eoIlccS
how much less than this Will YOU take this money
| Tor. ana how much more than this viii Won tale
this for; and they 60 through with ali that 10 a.
certain the relations between the borrower and the
| lender.
Now, Il may be all right However. I do not com
pfehend u. and that is sufficient % make me vote
against the transaction OF that plan IN the abstract
lAeIe Is too much learning Ia Il; there l. too much
o. that Eilid or metaphysics about n thai man
does not understand himself and cannot make anv-
DOoy else understand, 10 suit my digestion And II
me QUESTION was Presented 70 my mind whether
mysterious contract this contract OF false verbiage
which Is used TO clothe Il IN. IN which loanls
called '';in ADVANCE aGd borrower IL called ian
adN a1cee ana HE whole thlns is done up In gll
oerish OF uS ind 10 obscure that which OF Itself
Is obscure, should only say. IL do not understand
Il: mn ntnlec; Is aot equal 90 II: INV learning Is
lot eqel TO II, and have but one course 60 pIr-
sue when ind myself in that condIlon, and That
IS 10 Sii down on IL, and IL tins thns. stC5i there
should feel compelled 10 do IL
Bgt tals Ean comes Into court With bll In
chaRcery and asks iOr an account. al account OF
an interviewed relation tnfeI' parties WITH Others
where hp j. as much an integral element In IL AZ
they az, nrocSely participation IN it, getter up
or IT, a2i IS ar rs any T7Ordle s concerned ia
nectioA VITA the case, Just as deep n the mud "a
they are in The Elire, and ne asAs The court 10 st
aside concraCrs that he has made.
Now court o. equity MAY DO that IL The con-
tract Is vicious end il the party comlag into court
Oi equity for reureSs tenders equity. There Is not
three hundred JO.iar5 difference here between al
The parties ii al their estimates and We do hot
think Burns ought to DC granted n speculation
over his mYeter,Ous undertakings here, Judiciay,
~ the expense OF those who united with him in
this satire upon contracts Therefore, agree with
Brother James IN the opinion just announced
JUpGE MAC ARTHUR DEPENDS THE ASSOCIATIONS.
Judge Macarthur said: did not expect 20 say
anything In this case, but In view OF what has
fallen irom the chief Justice think it is my duty
10 do so.
believe concurred in both OF the decisions thpt
nave been made In this court holding that these
contracts were not uSurious, and II is simply VT "A
reference 20 that point OF the case that say any
l am inclined TO adhere to the views entertained
and EXPRESSED by this court In former cases upon
tnat point do x not because there is special
interest in this case, but on account OF the VERY
great importance which attaches TO this principle
generally, arising nom the fact that these aSsoca-
tons are numerous, that their constituency Is very
extended, and that the peciniary responsibilities
involved are Immense ! have supposed that the
question OF Usuy was. In this court, stars decisis
and was therefore perfectly willing 20 let the case
go II that decision had not been called IN question
oy the cIllel justice cannot however simply r.
Affirm the former reasoning OF this court without
expressing one or two Views upon that subject
which Justify my conclusions
!. This is transaction growing out OF one OF these
institutions which have at times received criticisms
quite as severe as that which has fallen from the
bench this morning. But believe that no court
has ever gone 50 rar 40 10 hold a may be mis-
| taken, and viii limit my expression TO my
upon the statutes in regard 10 usury. IL ~, n
cases exist OF course my remark is TO be qualified
TO that extent.
Another thing. I think these institutions have
laid themselves somewhat open to criticism, IN
THAT. fron time TO time, they have attempted 10
after ana Change their Technology, sometimes
calling IL ,oan sometimes calling II an advance
and using various phrases, as II they really
engaged in an attempt TO circumveut the law +
think If they would hold simply TO The ordinary eN-
preSSions which characterize business transactions
Ii would be FAR better, ana let these advances g5
| as ~ rail aAr lRn p
Ii they were really engaged In piece OF sharp
management | Shall chaTacterize the advances IA
loans, and have no objection TO characteriznp a
man who gets the aoy' nee Us borrower.
Now what $ the transaction that the borrower
enters into! He uoscribes to the stock OF an asso-
claIon. Inc association Is formed upon the basis
or satisfactory or voluntary compact between
those who Sign it, One or the provisions is that the
Stockholder IL not called upon to pay Tor the stock
In advance, as IN ordinary .nstiIutons but TO pay
so much periodically, usually dollar n month.
Now the whole object OF these INSTITUTIONS In the
first instance and that ought not 10 be overlooke
was 10 combine the small earnings Of poor people
into common fund TO enable such members as
wish 10 use tina fund for the purpose or building
honesteads, 10 DO so, so that the poor by combs
nation among themselves, especially laboring men
and wage-earners, could have some Organization by
which their superiority might be concentrated in
stead of being wasted ia dissipation or In other
ways resulting In no benefit TO themselves. These
institutions have usually been established by law.
In this District believe they are established alto
gether upon the voluntary principle
Therefore, when the borrower wants TO get an
advance out OF this fund. which he has contribu-
ted mere trifie IN comparison with the amount OF
money that he wishes advanced, lac says TO the as
ISOLATION: II VIII etke he present value VI my
stock whatever that is worth. Now foot IL up and
see who Will give the most for it." Well. that is
called discount | believe In this District the
usual term is an advance. And 50 the person who
offers the highest premium for this loan is the pre-
ferred borrower and gets The loan.
Now IL is quite reason bic that he should give
some security TO his brother associates when he has
thus taken the money which has been contributed
10y them Jointly. And so he undertakes instead OF
giving any other consideration TO give one addi-
tionai dollar per month on account OF the loan on
each share OF the stock and 10 secure that In this
way
Now that is the transaction ami that is about
the Whole OF It. But IL Is said fl is usurlous be-
cause the men who do hot take advances get more
than six per cent. SO lar as this man who has got
the money is concerned, he has done 10 more than
he has agreed 10 do. When any person lakes the
stock OF association he takes il al such sum OF
mon y as IL Is really or normally worth, and there
is no usury there. Ant w he takes this fund
out OF the common treas ry he does not prsnisa TO
pay any usury or interest whatever. but he pro-
misses TO pay one dollar per share ia order 10 make
up the amount, at the winding up or the lnstltu-
tion. that he has borrowed I-o.a &c, and these
shares, with all the pro1t that has been made In
the meanwhile, growing out OF the payments OF
other members or the association VINO have Dor
rowed money like himself, and 20 the man who has
taken no advances there is, OF course, a larger
those Who have. But any moment the borrower 1S e
can retire by paying UP what he has borrowed, and
he gets interest on the dues which he has paic.
Now the man who has not taken money out or
the fund, has made simply an investment In a cor
poration or In an association Ike man In any
other scheme or business and the earnings that he
makes on that money is no more usur1ous than are
the proflts made on any other business In my point
OF view. l therefore very clear that whatever
other objections may arise against these insiitu-
tionS is impossible I'm view OF the elements which
constitute Their constitution, 10 charge them as
being obnoxious TO that charge
/ therefore adhere TO the former decision OF this
court. / would not have announced these views
but think IL Is OF very great importance that these
great interests should understand where they
stand, and that they can rely upon the decisions OF
the court as they are made.
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