ATTORNEYS' FEES IN NOTES.
Mr. Smith's of Jay, bill [S. 41] to make void attorneys' fees in instruments of writing coming up on the second reading:
Mr. SMITH: The reason I introduced this bill is not because I have an antipathy to the payment of notes containing such an agreement, but because there is a growing abuse of the attorney fee law to such an extent that warrants legislative interference. And if this Legislature did nothing else than to prohibit the entering into such agreements it would do a wise and judicious thing. One continually growing abuse of the present provision is that persons will make an agreement with the holder of the note in many cases to pay back a portion of the attorney fee. It seems to me this bill was not fairly considered int he committee I do not wish to impugn the motives of the Judiciary Committee, but I would like to have an opportunity to appear before it and explain the reason why I introduced this bill. The practice under the present statute is carried to such an extent that it is bringing the legal profession into disgrace. It is said that it would be unwise and injudicious to enact this bill into a law, for the reason that the party who loan money should not be put to the expense of collecting the note and paying attorneys's. Where a party loans money, if he expects to have to sue for it he would never loan a dollar; and if a man loans money, expecting to bring a suit to enforce the collection of it, he is not a safe man to do business, and there should not be a law which would enable him to collect attorney's fees. Another objection urged against the bill is that it would drive capital out of the State. Men who have money to loan and foreign corporations who loan money in this State are more magnanimous than some of our own citizens. I undertake to say there is not a note executed in this State to a nonresident but what specifies in the note the amount of the attorneys' fee. Another objection to this bill may be that it is not constitutional. If any Senator is laboring under an impression of that kind, I want to say this bill was drawn up by as good a lawyer as there is in the State of Indiana. It seems to me it is within the power of the Legislature to say whether or not such a contract shall be illegal and void.
Mr. ADKISON: What effect would the bill have upon foreign corporations inserting five per cent. in their notes?
Mr. SMITH: I don't think it would drive a single cent out of the State. I believe it would put every person upon an equal footing. There should be a law enacted that every person loaning money should stipulate the attorney fee to be paid.
Mr. SELLERS: I rise to a point of order. I see upon examination of this bill which the Senator has introduced that it does not comply with one of the rules of the Senate - the one which requires all bills to refer to the section of the Revised Statues sought to be amended. I move that it be recommitted.
Mr. SMITH: I have not examined the bill carefully, and it was drawn by a person who is not acquainted with the rules of the Senate. I will consent to the motion to recommit so the Judiciary Committee.
It was so ordered by consent.
SEVERAL SENATORS - "Regular order."
Mr. WILLARD: I think we had better get on with the business we have been doing this morning, for the reason that there is no quorum present.
