Daily capital journal. (Salem, Oregon) 1903-1919, 1916-02-08
LOAN SHARK LAW
HELD CONSTITUTIONAL
BY SUPREME COURT
City Charters Must Specify
Tax Powers Before Excess
Can Be Collected

The supreme court today held that
the supervision of the loan sharks
should fall unde.' the duties of the state
bank examiner in the case of the state
of Oregon against E. f. Ware and 9th
ers. 1t was charged in the indictment
that Ware loaned money at a greater
interest than 10 per cent per annum
without first having taken out state
| license to operate under the state bank
| ing laws. Ware was tried in the circuit
court before Judge Henry F. MeGinn
in Multnomah county and convicted.
He appealed to the supreme court and
Justice Benson wrote the opinion af-
| firming the rulings of the lower court
on the constitutiOnality of the law.
In an opnion written by Justice Nc
| Bride the writ of mandamus was sus-
tanned in the case of Jessie M. Carson
and others against H. j. Schulderman,
as corporation commissioner Of the
state of Oregon. This was writ
brought to compel tine corporation com
missioner to file articles of incorpora-
tion for the "E. Henry Wemme En-
dowment Fund" as a charitable insti-
tuition. The articles prescribed a cap
italization of $350,000 to erect and
maintain a maternity hospital and the
supreme court sitting en- banc held that
the hospital was a charitable institu-
tion and that the articles should be
filed as SUCH The corporation was
formed pursuant to the will of E. Hen
ry Wemme, deceased, who bequeathed
certain property to the plaintiffs in
trust for the purpose of erecting and
maintaining maternity home for un-
fortunate and wayward girls in Port
| land.
Judge G. F. Skipworth was upheld in
his rulings in the Springfield tax ease,
appealed from Lane county in which
Welby Ctevens and others brought suit
against S. w. Taylor, county treasurer
and j. c. Parker, sheriff, to enjOin
them from collecting taxes in excess of
five mills prescribed by the original
cnarter of Springfield The city at
tempted to levy a tax of Is mills and
passed an amendment to the charter
authorizing this action to further GER
taing Improvements in Springfield.
Some of the taxpayers sought an in
junction against the collection of the
taxes and the decree was rendered IN
the circuit court in favor of the tax
payers and against the tax collectors.
in his opinion Chief Justice Moore af-
firms the lower court on tne grounds
that the rights Of the city council to
increase the tax in excess of five mills
are not clearly outlined and quotes
Justice Bean in former case as fol-
| lows:
"The principal is universal that
whenever a municipality or other gov
ernment agency of the state seeks to
impose the burden of taxation upon a
citizen or upon his property it must be
able to show the grant of such power
| by express words or necessary implica-
tion. No doubtful inference from oth-
er powers granted or from obscure pro-
visions of the law, nor mere matters of
convenience, or even necessity, will
answer the purpose. The grant relied
upon must be evidnt and unmistakable
and all doubts will be resolved against
! its exercise and in favor of the taXpay-
/ er.
The other opinions follow:
r. L. Sabin, appel ant, VS.. Levi Chris
man, sheriff of Wasco county, appeal
ed from Wasco county, action of
replvin, opinion by Justice Mcbride,
Circuit Judge Bradshaw S judgment for
defendant reversed.
Anna Humphrey VS.. city of Portland,
appellant, appealed from Multnomah
county, action to recover damages for
personal injuries, opinion by Chief JUS
tice Moore, former Circuit Judge Ben
son S judgment for plaintiff reversed.
Florence Johnson, appellant, VS.. j,
II. Mckenzie, appealed from Multno-
nah county from a decree dismissing
Justice Moore, Circuit Judge Davis >
suit for accounting, opinion by Chief
Judgment for defendant affirmed.
}. w. Leslie, appellant, VS.. j. D. Nc
Neil ct al, appealed from Coos county,
action for recovery of money, opinion
by Justice Benson, Circuit Judge
Coke's Judgment for defendant af-
firmed.
A. NJ. Mowrey, appellant VS.. F.. f.
Bouton ct al, appealed from MultnO-
nah county, action for damages for al
legged fraudulent representations, opin-
ion by Justice Benson, Circuit Judge
Davis judgment for defendant af-
firmed
Petition for renearing in Portland VS.
Portland Gas x Coke company was
granted.