Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1908-04-13
uathods of lndirection by Which
They Accomplish Collection
OF Usurious Rates.
sERG'S NOTE AS A SAMPLE.
:, was Made out in His Own Favor,
And for Sum So 40 Larger
Than He Received.
THE usuRY LAW.

c,.rtlon Interest Hatc-Thc le-
80, rate of interest upon the loan of
a.. money shall he s per centum per
arnuDi.
Section 2--Exceptions--The parties
90 any contract may agree in writing
Cor tho payment of interest for the
loan OF sny money not 10 exceed the
,um of 12 per centum per annum;
,,rovided That on loans of money only
the amount of 500 or less IL may
Nv, agreed In writing To take or receive
~ interest on said loan not to exceed
q, for the first month, only of said
i,an. but thereafter no greater interest
.I,nIl be contracted for, taken or re-
ecived than Is allowed In this section.
This mOylso shall not he construed
81, ms ia allow or permit the splitting
nm of transactions for the loan of
morcy into small amounts for the
i1rpos,, of eyading the provisions of
this act.
section 3--No person shall directly
mr. Indirectly take or receive in money,
poods or things in action, any greater
sum or greater value for the loan of
my money, goods, or things In actin,
than Is prescribed in section ? of this
ati.
section 4-Rccovery-Ever person
who fer any such loan shall pay ar
deliver any sum or value other
,han is above allowed TO be re-
cciyed may recover in an ac-
lion nsainst the person who shall
lave taken or received the same, II
such action he bro :sht within one
,car after such payment. II such ac-
lion b. not brought within ono year,
then the said sum OF money may BE-
sued for and recovered with costs at
my time within three years after the
said one wear by any county snperin-
tendent of schools where such pay
ment may have been made for the use
and benefit of The county school fund,
ana when collected shall be forthwith
maid into said fund.
Section 5--Bonds yold--Au bonds,
bills notes and assurances whereupon
there shall DC taken any greater valne
for the loan of any money than IS
above prescribed, shall be void.
Above Is a copy of the Utah usury
law, passed Mt the last Legislative ses-
SIGN t. put the game out OF business IN
salt Lake. Just how money sharks
have avoided It and are sim able to
levy their heavy toll against the most
rruel necessities OF those hopelessly
poor, Is illustrated in the sample note,
the text OF which IS given below.
An inquiry today among lawyers re-
suited in a number of opinions that
while many clever devices have been
brought in TO get by indirection what
the law fOrblds, still the loan sharks
are working in violation of the law and
ould be called to AN accounting. State
Senator Bonner X. Smith, who intro
dnced the law, will probably make n
special study of the methods now in
vogue 10 beat IL with the purpose or
making its provisions broader during
TIE next Session. State Senator Law
renee thinks action by the legal ma
rbnery of the state could stop the
business under the present code,
NOTES PRINTED HERE.
Tho note now in possession OF the
"News" is printed by Salt Lake print
Ing office. Yet II purports to be pay
,hle at Room 307 Mining Exchange
building, Denver, Colorado" A Salt
Lake date line is printed in the body
Of tho text.
The place for payment Is fixed at
Denver, so that IL the arm of the law
reached out for the Salt Lake office
II would gither In only resident
clerk and a foreign corporation would
into court, Another popularity about
the note Is that 1t evades the first and
second section of the law, by incorpor-
aung the usurorious interest into tho
lace of the note, making IL read for
RCiO. while the borrower only secured
llS when he applied for the loan which
|; represented,
ENDORSED ON BACK,
cinched harder than by this 10 per
rent interest rate a month, the bor-
nwer's note Is given for ~ per cent
Ler annum from date OF maturity"
Section of the law, regarding re-
toYery through suit is cleVerly avoided
by the form OF the note, for II is made
.ui foi Carl Berg 10 no company, in
niyiduel, or corporation that could be
sued. II is made TO Carl Berg himself,
erd his Endorsement is entered on the
rack. thus confessing his receipt IF
The money,
Underneath this Endorsement is an
oher: Returned for collection, stand
sra Credit Co., Denver, Colo" Such
Leles, Endorsed in this manner are por-
leclly negotiable and In the hands of
an Innocent purchaser leave the signer
without tho recourse the law intended
Ion him
ANOTHER METHOD.
sim another clever method of eva
Nn SLOWS in the system OF the COM