The herald., 1898-03-06
OFFICE OF THE HERALD,
Los Angeles, March 5, 1898.

4 OFFICE OF THE HERALD.
Los Angeles, March s, 1898.
1.-THE attainment of our greatest desires
s often the source of our greatest sor-
ktows."
Among other investments, those made in
&the fine arts have been among the most re-
<munerative In proportion to the sum ex-
<pended. The sale of the late Charles A.
kDana's ceramics just concluded in New
4 York Is case In point. Mr.. Dana's hobby
was the collection of chinaware and porce-
lain and other curios. articles which he
acquired at his leisure and accumulated
till he had one of the finest collections IN
the country. The aggregate sum realized
at the auction of this result of rich col.
lector's industry was $194, 5000. A WELL
known collector said that 1t had been one
Of the most successful art sales of the
world. he thought. Notwithstanding the
fact that very many Of the objects went al
such prices that the buyers. even wher
they were dealers, considered themselves
fortunate. the sale as whole was general
ly regarded as satisfactory.
The sections of the national banking Law
regulating the rate of interest to be
charged by national banks were construed
by the supreme court of the United States
In decision rendered by it on February
21st In a case Grown VS.. Marion National
banl). which came before it on a writ OF
error to the Kentucky court of appeals
One of those sections provides that nation
al banks may charge on any loan or dis
count made, or upon any note, bill of ex-
change or other debt, interest at the rate
allowed by the laws of the state, territory
or district where the bank is located, ant
no more. except that where by the laws
OF any state different rate Is limited fol
banks of issue organized under state laws
the rate so limited shall be allowed for as
sociations organized or existing in any
such state. Another section provides that
the taking or charging rate of interest
greater than that allowed, when knowing
ly done, shall be deemed forfeiture of the
entire interest which the note. bill or other
evidence of debt carries with 1t, or which
has been agreed upon, and that In case the
greater rate of interest has been paid, the
person by whom 1t has been paid, or his
legal representatives may recover back
twice the amount of the interest thus pa id
from the bank taking the same.
In constituting these provisions. says
Bradstreets, the court said that interest
included In a renewal note or evidenced by
Z separate note does not cease thereby to
be interest and become principal so as 70
escape the forfeiture provided for know
angly taking or charging an illegal rate of
interest. IL. the court said, the bank sues
upon the note. bill or other evidence of debt
oeld by 1t. the debtor may insist that the
entire interest, legal and usurious, inclui-
ed In written obligations and agreed to be
paid. but which has not actually been paid
shall be either credited upon the note or
eliminated from 1t and judgment given only
FOR the original principal debt, with inter-
fhn laval a ha
mont OF the suit. The forfeiture declared
by the statute. the court held, is not waived
by giving renewal note In which is in
cluded the usurious interest, and no matter
how many renewals may be made. if the
bank has charged greater rate of inter
est than the law allows 1t must, If the for
teiture clause of the statute be relied on
and the matter is thus brought to the a,
tention of the court, lose the entire inter-
est which the note carries or which has
been agreed to be paid. BY no other con-
struction of the statute, the court says.
can effect be given to the clause forfeit!ug
the entire interest which the note, bill or
other evidence of debt carries. or which
was agreed to be paid but which has not
actually been paid.
Some attention was devoted by the court
to the contention that within the meanin (
of the statute interest is paid" when it $
Included in a renewal note, so that whe I,
Tor interest from its date only the interest
accruing on the apparent principal of that
note is subject to forfeiture. Judge Harlan,
who read the opinion, said, however that
the statute could not be so construed, for
II interest were paid by simply including it
IN a renewal note, 1t would follow that as
soon as the usurious interest agreed to be
paid" was included in a renewal note, fle
borrower or obligor could sue the lender
or obllgee and "recover back twice the
amount of the interest thus paid" when
he had not. in fact, paid the debt nor any
part OF the interest as such. This, Justice
Harlan said, could not be a sound inter-
probation of the statute; the words. sin
case the greater rate of interest has been
paid" refer to interest actually paid as
distinguished from interest included in the
note and agreed to be paid" If, for ex-
ample, one executes his note to national
bank for named sum as evidence of a
loan to him of that amount, to be paid in
one year at 10 per cent interest such a
rate of interest being illegal, and If re-
newal notes are executed each year for
hve years without any money being in fact
paid by the bOrrower-each renewal note
Including past interest, legal and usurious
the sum included in the last note in ex-
cess of the sum originally loaned would be
interest which that note carried or which
was agreed to be paid, and not as to any
part of it interest paid On the other hand,
II the note when sued on includes usurious
interest, or interest upon usurious inter-
est agreed to be paid, the holder may elect
u SUCH lHteTeSt, anu IL cdHIlOI tilen
be said that usurious interest was paid to
him. The construction Of the law given
In the decision is of a nature to render 1t
difficult to evade its provisions in SO far
as they are intended to prevent usury.
O O o
The report of the directors of the Bank
of British Columbia, submitted to the
meeting of shareholders in London on the
9th of February, states that the profits
for the past half year are G1S,351 IS 10d.
Out of this dividend was declared at the
rate of per cent per annum and bal
ance Of f3351 IS 1Od carried forward.
O o o
The syndicate on the 1st instant made
another allotment of $150000 in San Fran
cisco and San Joaquin Valley Railroad
San Francisco Bulletin, this is the sixth
installment placed, and the best price of
all, the total being s95O,0O0 of the $1,000, 900
authorized. The bonds are issued as the
money is required In construction account.
On account of heavy tunnel work to be
done. 1t Will be two years before all the
bonds are Is Med. This is long time to
wait for direct rail connection between
San Francisco and Bakersfield, in addition
to the year already consumed in building
the road from Stockton to a point near
Bakersfield, but there appears to be no
other alternative. The delay is in the ap-
prOach to the Contra Costa county line,
where a long and expensive tunnel has
been decided upon as the most direct way
OF reaching the waters of the bay.
Mortgages, $1,000 and Over
81 n hnlv ak II