organized in this state, to be arranged in tabular form, and prepare the same in a single document for printing, and submit the same to the legislature, as a portion of his regular report to that body.

SEC. 38. [Repealed. See sec. 38, chap. 77.]

SEC. 39. Mixed mutual and stock companies.]-It shall not be lawful for any company organized upon the mutual plan, to do business and take risks upon the stock plan, neither for a company organized as a stock company, to do business upon the plan of a mutual insurance company.

SEC. 40. [Unincorporated mutual companies.]-Nothing in this act shall be so construed as to prevent any number of persons, not exceeding two hundred, from making mutual pledges and giving valid obligations to each other for their own insurance from loss by fire or death; but such association of persons shall in no case insure any property not owned and occupied by one of their number, and no life, except that of their own number; nor shall the provisions of this act be applicable to such associations or companies; Provided, Such associations or companies shall in no case pay any salaries or compensations to officers, agents, or any other employees, and shall receive no premiums, nor make any dividends.

SEC. 41. [Acts repealed.]-That portion of chapter twenty-five, of the Revision of 1866, which relates to insurance companies, and all acts and parts of acts amendatory and supplementary thereto, are hereby repealed, except so far as the same relates to the business of life insurance companies; and the auditor of state is authorized to return the deposits made under section. twelve, chapter twenty-five, of the Revision of 1866, when the companies making the same have complied with this act; Provided, such deposits shall not be needed for the payment of losses due from the company having made the same.

CHAPTER 44.-INTEREST.*

SECTION 1. [Rate.]-Any rate of interest which may be agreed upon, not exceeding ten dollars per year upon one hundred dollars shall be valid upon any loan or forbearance of money, goods, or things in action; which rate of interest so agreed upon may be taken yearly, or for any shorter period, or in advance, it so expressly agreed. [1879 § 1, 113.]

SEC. 2. [Unagreed rates.]-Interest upon the loan or forbearance of money goods, or things in action, shall be at the rate of seven dollars per year upon one hundred dollars, unless a greater rate, not exceeding ten per cent. per annum, be contracted for by the parties.

SEC. 3. [Judgments Decrees.-Interest on all decrees and judgments for the payment of money, shall be from the date of the rendition thereof, at the rate of seven dollars upon each one hundred dollars annually, until the same shall be paid; Provided, That if said judgment or decree shall be founded upon any con tract, either verbal or written, by the terms of which a greater rate of interest, not exceeding the amount allowed by law, than seven per centum shall have been agreed upon, the rate of interest upon such judgment or decree shall be the same as provided for by the terms of the contract upon which the same was founded.

SEC. 4. [Other cases.]-On money due on any instrument in writing, or on settlement of the account from the day the balance shall be agreed upon, on money received to the use of another, and retained without the owner's consent express or implied, from the receipt thereof, and on money loaned or due, and withheld by unreasonable delay of payment, interest shall be allowed at the rate of seven per cent. per annum. Unsettled accounts between parties shall bear interest after six months from the date of the last item thereof.

SEC. 41. See chapter entitled "Corporations," ante, page 130.

*NOTE. "An act to amend Chap. 34, General Statutes (being chapter XXVIII of the Revised Statutes of 1866) entitled Interest . Laws 1879, 113. Took effect June 1, 1879. SEC. 1. Partial payments, how applied. 4 Neb. 193. 7. Id. 83.

SEC. 4. Interest on money refunded by creditor to purchaser at an execution sale, subsequently set aside, is not made as a statutory right but as dainages sustained by being deprived of use of the money. 10 Neb. 137.

SEC. 5. (Usury-Consequences-Agents.-If a greater rate of interest than is hereinbefore allowed shall be contracted for or received, or reserved, the contract shall not, therefore, be void; but if in any action on such contract, proof be made that illegal interest has been directly or indirectly contracted for, or taken, or reserved, the plaintiff shall only recover the principal, without interest, and the defendant shall recover costs; and if interest shall have been paid thereon, judgment shall be for the principal, deducting interest paid; Provided, The acts and dealings of an agent in loaning money shall bind the principal, and in all cases where there is illegal interest by the transaction of the agent, the principal will be held thereby as if he nad done the same in person. Where the same person acts as agent for the borrower who obtains the money from the lender, he shall be deemed to be the agent of the loaner also.

SEC. 6. [Usurers-Witnesses.]-Any person charged with taking illegal interest may be required to answer touching the same, on oath, in any civil proceeding.

SEC. 7. [Tender.]—Relief to a complain [an]t in case of an usurious loan, may be given without payment or tender by him of the principal sum.

SEC. 8. [Witnesses-Perjury.]-Any officer or agent of a person or a corporation, whether interested or not, may be summoned as witness in any action. for usury against such person or corporation, and required to disclose all the facts of the case, but the testimony of such witness, or the answer of a party as required in section 6, shall not be used against such witness or party in any criminal prosecution for perjury.

SEC. 9. [Yearly rates.]-When in any law, or in any instrument in writing specifying a rate of interest, no period of time is mentioned for which such rate is to be calculated, it shall be deemed to be by the year.

SEC. 10. [Warrants-Bonds.]-All warrants issued by the proper author. ities of the state, county, city, town, or other municipal subdivision less than a county, shall draw interest from and after the date of their presentation for payment, at the rate of seven per cent. per annum, and all bonds issued by any county, city, township, precinct, or school district, shall not draw interest at a rate exceeding eight per cent. per annum.

SEC. 11. [Educational lands-Delinquent taxes.]-The rate of interest fixed by this chapter shall not affect interest on purchase money of school, university, and agricultural college lands, or on lands delinquent or sold for the non-payment of taxes.

SEC. 12. [Repealed original chapter.]

SEC. 5. An agreement for a loan was made in New York, and money advanced there. Note was dated in Nebraska, payable in New York. It was void under New York usury laws, Held, there could be no recovery here. 1 Neb. 108. The lender of money at a lawful rate of interest cannot be charged with usury when without his knowledge or consent, the agent of the borrower applies for and negotiates a loan, and receives from the borrower a sum of money, which the borrower previously agreed to pay him, if he would secure the loan. 3 Neb. 259. But if a person employ another as his agent to loan money and puts funds in his hands for that purpose, if the agent charge unlawful interest, or receives a bonus for such loan, the transaction is usurious 5 Neb. 264. And if such agent takes from the borrower a note and mortgage for the payment of a bonus or commission the transaction is usurious, and there can be no recovery. 6 Neb. 154. Whether the proviso to the above section making the agent of the borrower the agent of the loaner, overrules these decisions, quære? A note drawing legal interest is not affected with usury by an indorsement or agreement of the maker, made after maturity, wherein he promises to pay a greater rate of interest than that allowed by law. In such case money paid in excess of lawful interest constitutes a payment pro tanto of the principal. 4 Neb. 205. 9 Neb 455. Where one is intrusted with the business of loaning money, and exacts for its use, either directly or indirectly by whatsoever shift or device, interest in excess of the rate allowed by law, such transaction 18 usur ious. 4 Neb. 206. 6 Neb. 154. 8 Neb. 426. 7 Neb. 58. A surety on a note may plead usury as a defense 7 Neb. 58. Upon the expiration of a stay of execution, extension of time was granted defendant upon payment to the plantiff's attorney with plaintiff's assent, of an attorney's fee in addition to interest. Held, usury. 8 Neb 50. A, being the owner on an undivided interest in real estate, conveyed his interest to F, for the agreed price of $350, for which he gave his note secured by a mortgage on the premises. In anticipation of this trade, A arranged with the plaintiff to sell him the note and security for $275. To save the trouble of transferring the note and security, A requested F to make them directly to the plaintiff, which was done. Held, not usurious, the evidence showing it to be a bona fide purchase of security, and not a contrivance to evade the usury laws. 9 Neb. 15. Under this section a bona fide purchaser before maturity and without notice, takes the note free from the defense of usury; and where usury in the original transaction is proved, the burden of proof is on the plaintiff, to show the bona fides of his holding; but it is not sufficient for him to show payment of value, he must show good faith. A statement that he did not know or have reason to believe there would be a contest over it, is not sufficient to show good faith. 9 Neb. 229. 10 Neb. 86. To constitute usury there must be a contract between the lender and borrower, by which the lender receives or reserves a greater rate of interest than the maximum allowed by law. 10 Neb. 543.

CHAPTER 45.-INTERNAL IMPROVEMENTS.

SECTION 1. [Bonds.]-That any county or city in the state of Nebraska is hereby authorized to issue bonds to aid in the construction of any railroad, or other work of internal improvement, to an amount to be determined by the county commissioners of such county or the city council of such city, not exceeding ten per centum of the assessed valuation of all taxable property in said county or city; Provided, The county commissioners, or city council, shall first submit the question of the issuing of such bonds, to a vote of the legal voters of said county or city, in the manner provided by chapter nine of the Revised Statutes of the state of Nebraska, for submitting to the people of a county, the question of borrowing money. [1869 § 1, 92. G. S. 448.]

SEC. 2. [Proposition to vote.]-The proposition of the question must be accompanied by a provision to levy a tax annually for the payment of the interest on said bonds as it becomes due; Provided, That an additional amount shall be levied and collected to pay the principal of said bonds, when it shall become due; and, Provided, further, That no tax shall be levied or collected to pay any of the principal of said bonds until after the year 1880. [Amended 1870, 15.]

SEC. 3. [Rate of interest.]—The proposition shall state the rate of interest such bond shall draw, and when the principal and interest shall be made payable. SEC. 4. [Result of vote.]-If two-thirds of the votes cast at any such election for the purposes herein set forth, be in favor of the propositions submitted, the county commissioners in the case of a county, and the city council, in the case of a city, shall cause the proposition and result of the vote to be entered upon the records of said county or city, and a notice of its adoption to be published for two successive weeks in any newspaper in said county or city, if there be one, and shall thereupon issue said bonds which shall be and continue a subsisting debt against such county or city, until they are paid and discharged. [Amended taking effect Dec. 1, 1875. Laws 1875, 87.]

SEC. 5. [Taxes.]-It shall be the duty of the proper officers of such county or city to cause to be annually levied, collected and paid to the holders of such bonds a special tax on all taxable property within said county or city, sufficient to pay the annual interest as the same becomes due; and when the principal of said bonds become due, such officers shall in like manner collect an additional amount sufficient to pay the same as it becomes due; Provided, That when any bonds have been heretofore issued, such officers shall not levy or collect any amount more than may be necessary to pay the amount annually falling due by the condition of such bonds until after the year 1880; Provided, That not more than 10 per centum of the principal of said bonds shall be collected in any one year, excepting where bonds have been heretofore issued, and by the conditions of such bonds are required to be paid in some other manner. [Amended 1870, 15.]

SEC. 6. [Estoppel.]-Any county or city which shall have issued its bonds,

NOTE. "An act to enable counties, cities, and precincts to borrow money on their bonds, or to issue bonds to aid in the construction or completion of works of internal improvement in this state, and to legalize bonds already issued for such purpose. Laws 1869, 92. G. S. 448. Took effect Feb. 15, 1869. NOTE, also, that "an act authorizing precincts, townships and towns to vote bonds to aid in works of internal improvement," printed on p. 116, laws of 1879 contains no enacting clause as required by sec. 10, Art. III, Const. and is omitted from this volume. Provisions concerning registration of bonds ante p. 69.

DECISIONS. The act is constitutional. 2 Neb. 377. 7 Id. 313. 10 Id. 279. The issuance of street bonds in cities of the second class is not governed by this act. 7 Neb. 273. A public bridge across the Platte river is a work of internal improvement for which bonds may be issued. 4 Neb. 456. 7 Id. 260. Where the question of issuing bonds to any railroad company was submitted to a vote without accompanying the same with a proposition to levy a tax to meet the liability incurred, held that bonds issued in pursuance of such vote were void. 6 Neb. 235. But the proposition need not contain provisions for levy of a tax to pay the principal, but only the interest. 6 Neb. 53. Where the vote authorized the commissioners to subscribe for stock in a railroad company, held, no authority for a donation of such bonds. 6 Neb. 235. The indebtedness authorized by this act cannot exceed ten per cent. of the assessed value of taxable property in the county, and this must be authorized by a two-thirds vote as provided in sec. 4. 7 Neb. 313. When a county votes aid in excess of the limit, the commissioners have no authority to issue bonds to any amount. Id. In an application for a mandamus to compel payment of bonds issued to aid in the construction of works of internal improvement, there should be a particular description of the works so the court can see by an inspection of the petition alone, that they are really of that character. 9 Neb. 459. The building of a county court house is not a work of internal improvement under these acts. 10 Neb. 280.

SEC. 4. The original section provided for the issuance of the bonds "upon a majority of the votes cast being in favor of the proposition submitted." G. S. 448.

in pursuance of this act, shall be estopped from pleading want of consideration therefor, and the proper officers of such county or city may be compelled, by mandamus, or otherwise, to levy the tax herein provided to pay the same.

SEC. 7. [Precincts may issue bonds.-Any precinct, in any organized county of this state, shall have the privilege of voting to aid works of internal improvement, and be entitled to all the privileges conferred upon counties and cities by provisions of this act; and in such case the precinct election shall be governed in the same manner as is provided in this act, so far as the same is applicable, and the county commissioners shall issue special bonds for such precinct, and the tax to pay the same shall be levied upon the property within the bounds of such precinct. Such precinct bonds shall be the same as other bonds, but shall contain a statement showing the special nature of such bonds.

SEC. 8. Bonds heretofore issued.-All bonds heretofore voted and issued by any county or city in this state, to aid in the construction of any railroad or other work of internal improvement, are hereby declared to be legal and valid, and a lien upon all of the taxable property in such county or city, notwithstanding any defect or irregularity in the submission of the question to a vote of the people, or in taking the vote, or in the execution of such bonds, and, notwithstanding the same may not have been voted upon, executed, or issued in conformity with law, and such bonds shall have the same legal validity, and binding force, as if they had been legally authorized, voted upon, and executed; Provided, That nothing in this section, nor in this act, shall be so construed as to legalize, or in any way sanction any vote of the people of Nemaha county, heretofore had, for the purpose of aiding in the construction of any railroad, nor anything done by the county commissioners of said county authorizing said vote, or anything done by them in consequence of such vote.

SEC. 9. Taxes to pay principal.-That after the year 1880, the officers of any county or city may levy and collect, not exceeding 10 per centum of the principal of said bonds; Provided, Said bonds are not payable in installments not exceeding 10 per centum; and whenever any county, city, or precinct shall have on hand an amount exceeding two thousand dollars, for the payment of the principal of said indebtedness, the corporate authorities of such county or city shall advertise for the surrender of any such indebtedness; and the person offering to surrender such indebtedness on the lowest and best terms, shall receive the money, and surrender such indebtedness; and if, at any time, there shall have accumulated a sum exceeding ten thousand dollars, the same may be invested in Nebraska state stocks, or in United States stocks. [1870 § 3, 15.]

SEC. 10. [Refunding taxes.]-All taxes which have been paid to raise a sinking fund to pay the principal of such indebtedness, and now on hand shall be returned to the person paying the same. [1870 § 4, 15.1

REFUNDING BONDS.

SEC. 11. In lieu of outstanding bonds.-That any county, precinct, or city in the state of Nebraska, which has heretofore voted and issued bonds to aid in the construction of any railroad or other work of internal improvement, and which bonds or any part thereof still remain unpaid, and remain and are a legal liability against such county, and bearing interest at ten per centum per annum is hereby authorized to issue coupon bonds at a rate of interest not exceeding eight per centum per annum to be substituted in place of, and exchanged for such bonds heretofore issued, whenever such county, precinct, or city can effect such substitution and exchange, which substitution and exchange shall be dollar for dollar. [1877 § 1, 224.]

SEC. 7. Precinct bonds voted to aid in building a bridge across Platte river held good. 6 Neb. 49. 7 Id. 260. Payment can only be made upon warrants issued by county board. 9 Neb. 462. Levy of taxes to pay bonds may be compelled by mandamus, but a judgment obtained on precinct bonds in the United States Circuit Court against the commissioners of the county, of which such precinct is a part, is a nullity and its collection cannot be enforced by mandamus. 10 Neb. 24.

SECS. 11-13. "An act to authorize the issue of county bonds in certain cases.” Laws 1877, 224. Took effect June 1, 1877

SEC. 12. Form of new bond.-The new bond so issued shall have recited therein the object of its issue, the whole of the act under which the issue is made, stating the issue to be in pursuance thereof, and shall also state the number date and amount of the bond or bonds for which it is substituted, and such new bond shall not be delivered until the surrender of the bond or bonds so designated. [Id. § 2.]

SEC. 13. No vote necessary.]-The new bonds so issued shall not require a vote of the people to authorize such issue, and they shall be paid, and the levy be made and tax collected for their payment in accordance with laws now governing the said bonds heretofore issued. [Id. § 3.]

CHAPTER 46.-JAILS.

SECTION 1. [Rules for government.]—The judges of the district courts of the several judicial districts of this state shall, from time to time, as they may deem necessary, prescribe, in writing, rules for the regulation and government of the jails in the several counties within their respective districts, upon the following subjects: First. The cleanliness of the prison and prisoners. Second. The classification of prisoners in regard to sex, age, and crime, and also persons insane, idiots and lunatics. Third. Beds and clothing. Fourth. Warming, lighting, and ventilation of the prison. Fifth. The employment of medical and surgical aid when necessary. Sixth. Employment, temperance, and instruction of the prisoners. Seventh. The supplying of each prisoner with a bible. Eighth. The intercourse between prisoners and their counsel and other persons. Ninth. The punishment of prisoners for violation of the rules of the prison. Tenth. Such other regulations as said judges may deem necessary to promote the welfare of said prisoners. Provided, That said rules shall not be contrary to the laws of this state. [R. S. 242. G. S. 451.]

SEC. 2. Publication of rules.]-The said judges shall, as soon as may be, cause a copy of said rules to be delivered to the county commissioners in the several counties in their respective judicial districts; and it shall be the duty of said commissioners forthwith to cause the same to be printed, and to furnish the sheriff of their county with a copy of said rules, for each and every room or cell of said jail, and also to forward a copy of said rules by mail to the state auditor, who shall carefully file away and preserve the same.

SEC. 3. [Posting rules.]—The said sheriff shall, immediately on the receipt of said rules, cause a copy thereof to be posted up and continued in some conspicuous place in each and every room or cell in said jail.

SEC. 4. [Revising rules.]-The said judges may from time to time, as they may deem necessary, revise, alter, or amend said rules, and such revised, altered, or amended rules, shall be printed and disposed of by said commissioners and sheriff in the same manner as is directed by the second and third sections of this chapter.

SEC. 5. [Sheriff in charge.]-The sheriff, or, in case of his death, removal or disability, the person by law appointed to supply his place, shall have charge of the county jail of his proper county, and of all persons by law confined therein, and such sheriff or other officer is hereby required to conform, in all respects, to the rules and directions of said district judge above specified, or which may, from time to time, by said judge be made, and communicated to him by said commissioners.

SEC. 6. [Register.]-The sheriff, or other officer performing the duties of sheriff, of each county of this state, shall procure, at the expense of the proper county, a suitable book to be called the jail register, in which the said sheriff, by himself or his jailer, shall enter-First. The name of each prisoner, with the date and cause of his or her commitment. Second. The date or manner of his or her discharge. Third. What sickness, if any, has prevailed in the jail during the

NOTE.-Chap. XXIX, R. S. 242. Chap. 36, G. S. 451.