The National Register.
London, England, 1821-04-15 00:00:00

SOMERTSE C.

IDOE ON DEMISE OP EMERY, V. STUCKEY AND OTHERS.
This was an action brought be assigneeA, to reenter
from defendants certain premises held by them, by virtue
of a mortgage grained by Gibbs, a bankrupt, to secure
to defendants (who are bankers) a balance of 35001.
due to them on a banking account, on the plea that
there were usurious charges in the said banking account,
which rendered the mortgage 111111 and void, under
the statute of 12th Anne, cap. 16.—The banking ac-
count' between Gibbs and the defendants, the balance
of which is the consideration of the mortgage give', by
the bank riipt to them, commenced in October, 1808,
and continued clown to the date of the mortgage in
May, 1817.
The animal balances were struck agreeably to the
usage of bankers, but the balance of each year's account
was carried on to the succeeding year, so that the banking
business between Gibbs and defendants, during • the
whole of this period, (bans only one account. The
charge of usury was attempted to be proved by the defen-
dants having charged ss. per cent. on all sums paid or
received by them u,AUCCOIIIII of Gibbs, besides an interest
of 5 per cent. on the balances against Gibbs, whose
account was always overdrawn.
Gibbs proved the terms, objected to the commission,
but continued the account, and agreed to the balance
when the mortgage was given.
Cross-examined.—Did not know what his estate
would pay as a dividend, none being made. What
would be paid depended on the establishing this cause.
Mr. Willis, accountant, allow'', proved that he had
made up the account, and that the excess of interest
charged on advances was equal, on the whole of the
payments, in the year 1814, to 7s. 9d. per cent.; in 1815,
to 12s. Oild. per cent.; in 1816 (after allowing bi. on
London and Bristol payments) to 178. 1031. per cent.;
in 1817 (after ss. allowed as before), to .3s. and 61J.
per cent. That drafts on London at 35 days, 40 days,
and 75 days after date, were charged as cash in the pass- •
book ; three of inch drafts amounted together to 33001.
and no rebate of interest was allowed its the interest
account. That on the returned bills there was a specific i
charge fur interest, commissloo, and postage.
Judge—what does your calculation comprehend ?
Answer.—lnterest on sums advanced, explained runt
the pass-lrook. •
Judge.—He is not keeping that account as a banket's
account ought to be kept, it is not made up as is usual
with bankers, therefore all Willis says goes fur nothing;
the pass-hooknot beir proof enough.
Mr. Serjeant Pell, forr the defendants, contended that
the charges were justified by the nature of the account,
and that bankers were fairly entitled to be remunerated
for their risk, trouble, and expense. kle held himself
responsible for the course of defence he should adopt,
01111 he would go on the merits of the case.
Mr. J. Manningford, banker, Bristol, proved h usual
for a! l country bankers to charge a commission; he
knew of no exception, unless a cash balance is lett as a
compensation; and if the mouth agreed to be left is
lessened, it is usual to pay, interest on the sun: reduced, as
on a loan. Some bankers charge a specific sum for
commission. Ha,' examined Gibbs's account; the
charges were insidficieta for the trouble. The defend-
ants were fairly entitled to one ball per cent. ott the
whole account, amounting to 5271. 9s. 2d. they had
charged only 5101. 10s.
Mr. Biggs, late clerk to the firm of Tuflin and Co.
hankers, Bitstol, had examined Gibbs's account.—
Tutfin and Co. would have charged 6701. and it is a
fair charge, according to their mode of doing business
They charge a commision equal to sixty days,'for the
trouble of sending home local notes and remote bills,
and thirty days on any other bills. •
Mr- Serjeant Pell.—The Chancellor has lately de-
cided that 15s. per cent, is not objectionable,• and be
allowed it.
Judge.—The deed has a retrospective operation, and
aflects the previous t.ansaction. In this case there is
not a title of colour for usury. There was nothing to
affect the character of so honourable a honse.—Praintiff
nonsuited.