INTERPRETATION
OF USURY LAW
Principal and Legal Interest Must
Be Paid Before Collections
Become Usurious.
Section 257, chapter 27, of the Alaska
Civil Code provides that “if usurious
interest.shall hereafter be re
ceived or collected, the person or per
sons paying the same or their legal rep
resentatives may, by action brought in
any court of competent jurisdiction,
within two years after such payment,
recover from the person, firm or corpora
tion receiving the same double the
amount of the interest socolUcted.” In
section 255 it is laid down that the rate
of interest in the District of Ala ka
shall be 8 per cent, per annum and no
more, on all moneys after the same be
come due. But it is also laid down that
by express agreement between the par
ties the rate of interest may he 12 per
cent. i>er annum and no mere. Conse
quently interest at a greater rate than
12 percent, per annum is usurious and
its collection or receipt prohibited under
the penalty provided for in section 257.
In an action before the district court
at Fairbanks recently Julia Werner and
W. < t. Mogeau sought to recover from
Anna C Lorentzen under section 257
above named. In brief, the plaintiffs’
alleged that they had made a promisso
ry note for $2,500, with interest after
maturity at the rate of 36 per cent. [ er
annum; that the sum of $t525 had been
paid in seven equal monthly install
ments on a year’s interest at the
rate of 36 per cent, as stated ; wherefore
judgment was prayed in the sum of
$1,050, which is twice the amount of the
interest so paid.
Defendant entered a demurrer on the
ground that the complaint had failed to
state facts sufficient to constitute a cause
of action, and urged that since plaintiffs
had failed to set up payment or tender
of the principal sum and interest, it
must be presumed that there had lieen
no such payment or tender, and that
until payment in excess of the principal
sum with legal interest has been made
there can l>c no usury, and that while
there remains unpaid any balance upon
either principal or legal inteiest the
doctrine of locus penitentiae may be in
voked so that any or all payments may
be appropriated to the principal sum
and legal interest, thereby purging the
transaction of usury.
The demurrer was sustained. Citing
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Miners Store
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= GENERAL MERCHANDISE ==—
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F. C. MANLEY, PROPRIETOR
numerous authorities and decisions bear
ing out thedefendant'seontention, Judge
Gunnison said: “Not only does such
interpretation of "section 257 appear to
ho the correct one from the authorities,
but the dictates oi common sense and
public policy as well approve it. For
surely congress could not have intended
that a person might borrow money,
readily agreeing, nay even, without so
licitation offering, to pay therefor usuri
ous interest; then, having paid usuiious
interest equal to half or even the whole
loan obtained, refuse further payment of
any character and bring suit for this
penalty, recovering twice the amount so
paid. By enforcing against the lender a
judgment so obtained, the borrower
might profit by an amount equal to the
original loan. Truly, if such were the
construction placed upon this section,
its possibilities for gain would surpass
any of the so-called ‘get-rich-quick’ con
cerns which have so long preyed upon
the public.”
Teller on Guggenheim.
Bent with age, yet vigorous as the
oak, ex-Senator Teller early in April
maile a speech in w hich he wept, says a
press report, and so sincere were the
words he spoke that the entire audience
was in tears before he concluded his
remarks.
“I have spent the greater portion of
my life in this commonwealth of the
west,” he declared. ‘‘I have seen great
men fall and great men spring from ob
scurity into prominence, hut it was on
their-t md as men that they fell or rog ■.
Now t’oli nnlo stands disgraced. She
has sent to the senate of the United
States a man who purchased his seat.
She is known to have among her legis
1 itors men wl o sold themselves for
office, for prestige. No crime that the
aeotimhvl can commit in the dark is to
be compared to this wholesale offer to
the almighty dollar. Colorado w dl stand
for years Is fore the |s- pie of the I'nioit
as having men who Iradu.I their fel
low eitixens by putting t.iiggenheim in
power; an indication that they sold
themselves like eattle."
People eliecred and eried in turn as
the aged n an |s>urisl forth his bitter
denuiiei.itioii of tin* manner in whieli
S ii.;tor tiugai nlieim gained Ids seat.
It is a *|»'ccb tlmt will go down in the
history of Colorado. Men fairly worked
themselves into a frenzy to grasp the
band of Mr. Teller as be *tep|sd from
the stand. The epcceh was a big sensa
tion in l>‘liver.
"Johnny, hi t Vottr Inm,' an air that
took the country by storm a ntimls-r of
years ago, ai-eina to is still reioemlwrnl
In Kentucky.
Local and General Notes
Sunrise this morning, '! o'clock.
Frank Stevens and James Lawrence
are prospecting at 7b Eureka. .
A barber lias come up from Hot
Springs to open a shop at Eureka.
Deputy Marshal Drake, w ho returned
from Fairbanks Sunday, reported a hard
trip.
James Drummond, a chef well known
in this district, is establishing a restau
rant at Eureka.
M. It. Downing came in yesterday,
after having rested up across the divide
before completing the hard mush from
Fairbanks.
The X. (.'. Co.’s store building has
just received a thorough spring renova
tion, followed by a coat of new paint
with John Neussbaum at the brush.
The Miners Store has erected a fence
front and rear enclosing the vacant lots
on either side of its building. The side
lots will be planted and the appearance
of the premises greatlv enhanced there
by.
Sid Williams has just finished wash
ing up the little dump at 40 Minook
creek. The dirt was merely the result
of work commenced in order to satisfy
the demand for representation work,
and the best of it w as washed up as it
was taken out; yet the remainder gave
an average of nearly 10 cents a pan, and
Mr. Williams says the ground has en
hanced wonderfully in his estimation
with the excellent showing made.
KROEHLE ACTED
FOR HIMSELF ALONE
Men now in Itampart who talked
with Otto Kroehle in I'airhanka say tli«“
latter was emphatic in the atntement
that lie anted for himself alone when he
secured the option on the Skooknm
property in this diatriet.
Mr. Kroehle said if Mr. Manley or
any one else wanted to make any prop
ositions he was ready to hear them; hut
he evidently intended to convey the im
pression that lie felt amply aide to take
eure of the deal without any particular
permNi'a aaaiatanee.
Perhaps the Doctor Oot It Himself.
The non-np|»'arunee of an advertise
ment hy I»r \ I: Hopkins, of South
land, llid., who has tseii iu<|oirih|(
throitnh \! isk.i |*i|»r- for an op|>>rtn
nifv to inrest IIu.iki, iwlimtf'i that a
ripe hllekh la-try has been w ithered hy
sntuelssly .
G. L. HAWKES
GONE INSANE
Deputy Marshal Drake received tele
grams from Hot Springs Monday saying
that C. L. Hawkes lias become insane
and should he restrained.
Hawkes has lived on the Tatiana at
the mouth of Baker creek for the past
four years. He has had the reputation
j of being more or less eccentric.
The deputy marshal will go over in a
couple of days and bring the afflicted
man to Rampart for examination befoie
Commissioner Ballon.
Just now the condition of the trail is
such that it is almost impossible to
make the trip. Improvement is expected
to be rapid, however, and the trip will
soon be undertaken.
THE PROBLEM
OF FIRE INSURANCE
Circular letters have recently been
received by llampart business men from
agencies in cities of the I'nited States
soliciting orders for fire insurance. So
far as we are aware no company has
complied with the law authorizing it to
do business—to sue and be sued and to
assume a legal status in the territory;
therefore such policies as are taken out
are subject only to the laws of the stab s
under which the companies are oper
ating. Under these conditions there
seems to have lieen much trouble in ad
; justing losses sustained by Alaskan
| policy holders, it living a costly ojiera
, tion to go to New York, for instance, and
| institute and prosecute a suit for re
covery.
No way suggests itself for getting
I around the difficult) ; but business men
had lietter bear their own risks than !»■
burdened by insurance which docs not
insure.
Mike Engels
(Sourdough Mikei
FREIGHTING
and PACKING
To all the Creeks