The Montgomery advertiser., 1901-08-20

.--nunn,lnunnu.unuur. 1 twenty years. What are we here for. but to limit the Legislature In their grants of power; what are we here TOT, put to say you shall not grant to any corporation any immunity or privi- lege' beyond that which another man getst What ,sanctity attaches to these particular corporations that they are aHorded the right to charge rom lZ 10 i4 per cent, and the limit is hazy, IT anybody knows how far it goes, that they should have the right to charge l E or l4 per cent, and absolutely say when the debtor shall cease payment. when no other corporation or individual In the State of Alabama Is granted such monstrous and extraordinary DOW len! sWhy.r there are men in this Con- | yention who would revolt if the sug- l gestfon was made that a bank should have this power. and yet it is said be- cause this is an agency, an aggrega- Ltlon Of poor people wanting to build Ihouses. gathered together to help each other, that we should grant this power. when 1t is known, and the Supreme Court asserts 1t, that it is power to go into the money markets of the coun- try and borrow money at per cent, and turn around and lend it at IA. stop ping large quantity as 1t goes through | loT tne managers and OHlcerS or the | corporation.
 MT. Pillans-Is not the evil you have discovered in this well known co-opera- tive system, the evil that grows out of their being allowed to issue preferred stock and borrow money?
 MT. Macdonald think to grea extent that Is one, but under the law in force they can do it.
 l MT. Pillans-Then what we want to stop is not taking the interest and part | of the principle monthly, but to stop them from borrowing money to lend to ftheir stockholders?
 MT. Macdonald-No, sir; if they are limited in the amount of interest they can charge other people they will not be willing to borrow money at per cent, because they cannot make this immense profit out of it.
 | MT. Proctor-Mr. President-
 MT. Pillans-I suggest that the en- tire debate almost has been conducted from that side of the house. The gen. tleman from Jackson has already spoken upon the proposition.
 MT. Howze-I raise the point of order that the gentleman has made one speech upon the question.
 The President-The point of order is well taken.
 MT. Proctor-I would like the gentle man to withdraw that. This is the sec ond speech that I have made upon this floor. and I am willing afterwards to yield to the gentleman from Mobile.
 The President-The gentleman from Jackson asks unanimous consent to make a few remarks. The Chair hears no objection.
 l MT. Proctor-Now, the entire argu- ment on the part of the building and loan people in this case seems to indi- cate that this minority report is strik- ing solely at building and loans. There is not a word said in the ordinance about building and loans. If building and loans are the only corporations that are doing this business, why, then of course, they are the only ones that come under the ban of this section. If there are other corporations that are charging more than that, they, likewise, come under this section, but no corpo- ration that is not doing the business at a usurious rate of interest is af- fected by it. Now, the contention of the minority Committee is that build ing and loans. or any other corporation, ought to be put down like the plain people, charged the same rate that any other individual In the State has to abide by. Now. the gentleman from Madison said something about that it would hurt the bank. MT. President, under the law as it stands now, and \ the gentleman from Madison will bear me out, the banks are allowed to charge but per cent.
 MT. Walker-I beg the gentleman's pardon; I said nothing about banks that I remember.
 MT. Proctor-I understood the gen tleman, or was informed, but some gen tlen1an on that side intimated that prl- vate banks cfarged possibly more than per cent interest. If he went to the bank and borrowed one hundred dol lars and the bank told him IL "ouIo charge per cent per month, II that statement was made to me, and l make the contract, 1t Is my duty to walk up and pay that per cent interest. II the building and loan associations were uo- ing the same character of business with their clients, and not gettins tneill in bv delusive literature and cnarshhs them from fifteen to twenty.nVe pel cent. representing in their literature that thev were not charging but per cent. then would say to stand to the trough and take their medicine, but where the literature goes out and tells the poorer class of people, many or them not able to investigate for them- selves, that they are getting the money at 6 per cent, and women, too, l dare say. because the case I quoted from this morning was a woman. It is wrong.
 It Is not right and just. and if the Convention takes time to study the literature of these associations, and think the home cCmpa nies as well as the national ones, they are all doing business under the same law, they have the same privileges and powers, ana they can practice their rascallty Just as we'll Possibly there may be one or two Building and Loan Associations in | Alabama who are doing fair, legiti- mate business, but 1t is because of the honesty of the men at the head of them, and not because they have not the power under the law to act the ras- cal with the borrower. Another thing lend money at 6 per cent. to be paid back in monthly installments. Who is the beneficiary of the money being paid back by the month? It is not the bor- rower, because he pays on the princi- pal from the first day to the end, and does not get any credit for the pay ment, he don't get credit for the par tial payments, the beneficiary is the Building and Loan Association. Then how can they come up and argue to us because of the fact that they receive these slow payments by the month that 1t is helping the poor man and not the Building and Loan Association. tn their literature they say they are do- ing a great business. 1 would like to see any corporation or association that
 Is making this unlawful charge that would not be in a healthy condition of | fn hn rnlr 1,1