Twice-a-week plain dealer. (Cresco, Howard County, Iowa) 1895-1913, 1897-10-15
DEMANDED 10 PER CENT.
Shaw's Cashier Announces Le-
gal Interest Is Not Enough.
A SAMPLE COUPON AND LETTER.
Delinquent Interest Payment, Mr.. voss
Demanded 10 Per Cent, Rate
That Is Illegal and Usurious.
lDes Moines Leader. Oct. 1o.0

(Des Moines Leader, Oct. 1O)
Frank y. Stuart, i'll his speech at Col
chester place Thursday evening, opened
up some new state issues. He INDUCED
in plainness of statement that rather
shocked some people. Mr.. Stuart is the
manager of the literary bureau of the
Democratic state committee, and has
been devoting a great deal of time to
informing himself on state issues.
Among other things he discussed the
mortgage record of l.. M. Shaw in Wig
orous style. He declared that Mr.. Shaw
had been guilty of charging usurious
rates of interest, and said he was ready
to prove it if Mr.. Shaw or anybody else
wanted to call his statement in cues
ton. Yesterday he made public his in
formation on the point.
Copy of Shaw Coupon.
The following is verbatim COPY of
an interest coupon such as Mr. Shaw
uses Ill his loaning business. 1t repre-
sents an interest installment on moro
gage bond taken by him 1t will be
noted that in the coupon itself it is
stated that the coupon shall draw in
terest at per cent after maturity; 8
per cent being the highest legal rate in
this state. The coupon is as follows:
REAL ESTATE MORTGAGE BOND
COUPON.
$1,000 DENIsoN, Ia, July 5. 1898.
On the LIST day of Fcby 1897 for value
received p, promise to pay to the order of
Burlington Trust Company thirty five dol
lars at Chemical National Bank, New York
City, Ny, for interest due on that day ac-
cording to the tenorof Il principal bond of
100000 dated 7-16-ss. This coupon to
draw eight per cent interest after matur-
1ty and attorney fees if suit is instituted
hereon. Said bond having been given to
L. NJ. Shaw by j. F. VIM. Schultz.
(Signcd)
JAMES BELLANGEE.
The original of this coupon is to be
seen at the Office Of the state committee.
Across one end of it is printed the firm
name of ''Shaw & Kuehnle,' and the
word paid is stamped in large letters
on the face of the instrument.
The mortgage was given to Shaw by
j. +. William Schultz. Later Bellangee
bought the property and assumed the
mortgage. When the mortgage expired
Bellangee had it extended in the ordin-
airy form and gave new notes, signed
with his own name. The coupon is one
that was attached to the new bond.
Eight Per Cent Not Enough,
About the coupon as given there is
nothing questionable. The charging of
interest on delinquent payments of in
terest is regular enough. All bonds of
the kind have a like provision. But now
comes the rest of the evidence. The fol
lowing letter was received by Mr.. Bel
langee in acknowledgement of the pay
ment of this coupon. The original of
the letter is also on file at Democratic
committee headquarters:
l.. Nj. SHAW, c. F. KUEHNLE
Preslt. Vice Pres't.
BANK OF DENISON.
Responsibility sl5O,0OO.GO.
DENIsoN, Ia, July %, 1897.
James Bellangee, Esq, Des Moines, La.
DEAR S1R-Yours of the 9th inst, with
draft for $780, is received and applied
upon your interest due February 1st, 1897.
You are 40c short on your remittance due
upon said interest. We carry all past due
interest at 10 per cent. Please remit above
shortage and oblige, Yours truly,
c. l.. Noss, Cashr.
Charged 1t Good and Strong.
A little mathematics will assist in
clearing away any uncertainty as to the
calculations of the firm of Shaw 81
kuehnle. The coupon had been over
due five months and twenty eight DAYS
when the remittance was received by
Shaw q Kuehnle. But as ii was PAYABLE
at the Chemical National bank in New
York a full six months delinquency
may fairly be charged. Six months
interest on the S35 at s per cent would
be Sl.4O. AT 10 per cent it would be
S1.75. The difference is 30 cents; but
Mr.. Voss, to be on the safe side, made
it 40 cents, and wrote Mr.. Bellangee
without delay for the amount.
But the gratuitous charge of the extra
cents is not the point Mr.. Voss
might have made an error in his cal
culation of interest, The real point is
i'll the broad announcement in his let
ter, that eve carry all past due interest
at 10 per cent
The laws of Iowa makes 6 Der cent
the legal rate except by written contract
by such contract the limit may be in
creased to not exceeding per cent.
But Mr.. Voss writes that eve carry all
past due interest at 10 per cent" and
demands that Mr. Bellangee at once re-
nit the extra and illegal per cent.
1t will be noted that the bond itself
does not charge an usurious rate. 1t
confines itself to the legal rate, Bur
when the legal rate was rendered, Mr..
Noss demanded the extra 2 per cent adj
dltional not only to the legal allowance.
put to the stipulation of the contract as
we'll, and announced that 1--WE carry all
past due interest at 10 per cent