The age-herald., 1901-08-20

| and loan associations but of requiring them to come down to the same level of interest as others. They had been fav- ored by the Legislature instead of being controlled by them.
 Judge Walker of Madison said It would have been as foolish for the convention of 1875 to prohibit life insurance companies from doing business In the state because losses had been sustained from them, as for this convention to abolish building and loan associations because certain persons had lost money by them.
 Supreme Court Decisions.
 MT. Macdonald of Montgomery said the | opponents of the minority report had | overlooked the recent decision of the Su- preme Court, which held that those asso- citations are beyond the law; that the con tract is bad. but being authorized by law, any one who signs the contract must take the consequences. He illustrated how those corporations issued preferred stock and paid the profits in interest therein instead of placing 1t to the credit of the borrowers. The Supreme Court has held that u borrower from these cor porations Is practically at their mercy. 1 Talk of their beneficent operation, why the newspapers a few years ago were filled with the scandals of the English building and loan associations. There may be some we'll managed here, and if so they are entitled to all praise.
 Mir Proctor of Jefferson said the pro- posed section applied to all who were doing an usurious business besides the | building and loan associations. He spoke of the character of the literature sent out by the latter, which he said was fraudulent and deceptive. It promised that they would charge per cent or per cent, while in reality they were charg- ing 12 per cent or 16 per cent.
 Mr. Graham of Montgomery spoke against the minority report. He ex- plained the difference between local and foreign building and loan associations and said it was the borrowers in the latter who had lost money through their mis- management. He read some letters from borrowers in loan associations saying they were satisfied with the terms given them by the companies.
 This was a unique class of business There were no other corporations con ducted in the same manner and this business was authorized by the Legisla- ture and was not raseally. Some of the foreign corporations may have acted in rascally way, but that was no reason why the home companies which had been conducted honestly should be so charac- terized.
 He moved to table the minority report. An aye and nay vote was demanded on this and the report was tabled by vote of "A to 36.
 MT. Long of Walker offered a resolution to authorize the committee on harmony to change the article on executive so as to allow sheriffs to succeed themselves and to provide that the governor, pending imneachment proceedings, may suspend the sheriff.
 Railroads and Canals.
 Section IA was adopted as follows:
 Sec. IA All railroads and canals shall be public highways, and all railroad ana canal companies shall be common car riers. Any association or corporation or ganized for the purpose shall have the right to construct and operate railroao between any points in this state, and con. meet at the state line with railroads or other states Every railroad company shall have the right with its road to in- tersect. connect with, or cross any other railroad. arh shall receive and transport, each. the others freight, passengers ana cars loaded or empty, without delay or | discrimination,
 Section 15 was read as follows:
 Sec. 15. The power and authority Of reg ulating railroad freights and passenger | tariffs. the location and building Of pas senger and freight depots, correcting | ab,.ses and preventing unjust discrimina- lions and extortion and requiring reas- enable and just rates of freight ana pas l serger tariffs. are hereby conferred upon | the Legislatures whose duty 1t shall De to pass laws from time to time regulaf- Ing freight and passenger tarins to pro | hibft unjust charging other than just ana | reasonable rates and enforce the same l by adequate penalties.
 Amendment Offered.
 General Sanford moved to amend by striking out the words conferred upon | the Legislature' and insert 'conterreo upon the railroad commission" | He smoke in favor of his amendment and said If the section was adopted 1t would practically destroy the power or | the commission
 l General Harrison, chairman of the com l mittee. explained the operation or the | section, and said a part Of the Georgla 1 railroad commission law had been adoeo | to the section This latter had been add l ed in response to numerous tySewritten | netitions eminating from Birmingham. MT Espy of Henry said this was the | most meaningless section in the whole | constitution. It attempted to conrer a power upon the legislature which they al- | ready had The people of Alabama ex- pected this convention to con1er sucn power upon railroad commission and | if we adopt this we adopt something | that Is simply child's play This will re- | strict this power to the legislature and 1t | can never get to the commission unless l conferred on them by the legislature. He hoped the Sanford amendment would be adopted.
 | MT. Murphree of Pike said the commit l tee had reached this section as com | promise measure.
 Mr. Kyle of Etowah offered substi- | tute to General Sanford's amendment. | This instructed the next legislature and 1 others from time to time to authorize the railroad commission, whenever necessary, | to regulate freight and passenger tariffs.
 The Free Pass Question.
 The amendments were tabled and the section adopted as reported Section 16, relating to free passes was read as fol- | lows:
 | Sec. 16 No railroad or other transpor- tation company or corporation shall grant l free passes or sell tickets or passes at a | discount other than sold to the public l generally to any member of the Legisla- l ture, or to any officer exercising judicial l functions under the laws of this State, | and any such member or officer receiving | such pass or ticket for himself or pro- curing the same for another, shall be guilty of a misdemeanor, and upon con viction shall be fined not exceeding five | hundred dollars, and at the discretion of l the court trying the. case in addition to such fine may be imprisoned for a term l not exceeding six months; and upon con | viction shall be subject to impeachment, | and removal from office
 The courts having jurisdiction shall give l this law specially in charge to the grand fha axyfda ig CtrfH H-