The Nashville daily union. [volume] (Nashville, Tenn.) 1862-1866, 1866-02-20

1 ly dues for shares, one dollar per month 70
= each share on which such advance is mad
1 or at the rate Of six per cent. per annun
I on the whole amount, including the pre-
. mium. Sec. 7th provides, should any stock
] holder, having received any portion Of stocl
a in advance, neglect to pay any or all Of hi
or her dues, 10 the Association for three sue
cessive months, then the Directors may com
2 pei payment OF principal and interest bl
instltDting proceedings on the bond accord
ing 70 law, and when any sale shall TAKE
+ place Of the property mortgsged TO the As
sOeiat ION the Directors shall have power K
retain and apply so much OF the purchase
money SIS would be required 10 redeem ths
property according to the provisions con
tained in the 9th Article OF the Constitu-
ton, together with all other payments,
moneys and expenses, due the Association
and shall pay the surplus thereof to the
mortgager. Section Sd in the 9th Arti-
Gle referred TO, in the last Section, provides.
that should any stOckholder desire to have
his or her property discharged from the
mortgage, before the association shall have
regularly :niusted, be or she shall be al
lowed 81 10 do, by paying into the hands oI
the treasurer such a sum of money as shall
at the rate Of premium the funds then sell
ing produce, the said monthly payment of
interested as that which the said stakeholder
had previously been paying in his or her
advance; provided such sums shall in no
case be less than the net amount received
by him OF her, and provided further that
no release shall be given until the moueypaid
for such release shall have been sold and the
security offered tor the same be approved bv
thedirectOrs and the papers connected there
with duly executed such stakeholder pay
ing all costs connected with the redemption
Of the mortgaged property. Section 4th of
this article provides that when any member
has obtained loans and desires to have build
lngs erected upon said property, he may
submit his contract to said directors, and
they, if they are satisfied that the amount
Is adequate to complete the improvements
shall so apply it, but the association by this
operation shall lose no interest. Article .
provides that the capital stock shall not be
more than five thousand shares. These are
the principle Articles and Sections in the
Constitution adopted by the Association on
the ID of August, 1854, and which it is in
sisted they had the right to adopt, and when
adopted are obiigatoryupon its members, that
the complainant beng a member having
Voluntarily became a subscriber thereto, Is
| bound by the Constitution and Bylaws Of
the Association. It is q well settled principle
OF law that when a corporation is duly
| created, the law tscitly annexes to it the
power of making bylaws Or private statutes
Tor its government and support. Angel &
Ames, on corporations, three hundred AID
leighty-four, but the bylaws Of a corpora
tion must not be inconsistent with its char-
ter, for this instrument creates it an artif-
cial being, imparts to its power-designates
its objects, and usually prescribes its mode.
af operatioR-it IS in short, the fundamsntal
law OF the corporation; and in its terms and
spirit as a constitution TO the petty legisla-
uon Of the body acting by and under IL.
| Hence all bylaws IN cOntravention Of il are
| void. Angel x Ames on corporations, page
4Ol. The power delegated in the charter
of this Association which says the Consti,u
tiOn and By Laws shall ha re the force and
effect Of legal enactment upon It's members
is Of no greater force than the incidental
powers usually given 10 corporations in
their charters. II is further provided in
the charter Of defendants that the con-
stituti0n and bylaws shall not conflict with
Ihe laws OF the land These principles be
ing recognized as the law governing COZ
poystions in the adoption Of their constitu-
tion and by Jaws, for their government, is
the constitution consistent with their char
ter2 Did the Legislature intend 10 invest
this association with such rights aud powers
as are attempted to be exercised in the con
stitutiOn2 To ascertain this, we must look
10 the charter, for it is thIs tnat gives life to
the artificial being, imparts to It's powers,
and designates lis objects. The language
OF the charter is: "An association which
lshal be a mutual benefit and stock Com
pany having Tor its object to assist members
thereof 10 become their own landlords f"
There can be no doubt the intention of the
Legislature was for the lagdable object Of
aiding the poor in providing for themselves
tsa.ar1 rfah.l u. ,h
fest intention Of the Legislature, the cunsti-
tuition and bylaws must not be incousist-
ent with that intention, otherwise they are
merely void.
How far does the constitution adopted bv
this association conform to the spirit and in
tentiOn Of the charter2 Can IL be inferred
by the most liberal construction OF the con
stitutOn adopted by this Association, the
object and purpose was to aid working men
in procuring houses? The rules and regula-
tons show now persons may become stock
holders. The small sum of one dollar per
month on share Is paid TO the treasurer
t0e working man sees how he can well spare
that sum from his hard and meagre earnings
he continues a member for twelve months
, lpGying his regular dues; he wishes to pro
cure a house the money is offered, and he
} becomes bidder at, we viii say, the price
Of 37E per cent premium, the shares being
estimated at the fictitious value OF S2oO
Z Twenty shares are struck of 10 him, vaiuei
at 4,O00. He receives the sum OF 81, 800
ana executes his bond for $4,000, condition
{ ed TO pay $4,000 with the interest. He ther
r executes mortgage on his home, condition
, ed 10 pay $40 per month until the $1,000 IL
paid. Previous 10 the execution of the mort
gage tie titles are examined hy the attorney
4 the preparation OF the deeds, the acknow
Hedging and registration are ali to De pal,
3 by the mortgager. He thus places himsel
e within the p0wer Of the Association. Montl
d after month his calls orS4O each are 70 b.
e aiet--there is no escape. He is within th
z tolls Of this ingenious net spread by tn
1 cunning hand OF an association Of money
r lenders who know no mercy. If he fails o
e pay the $40, secured by the mortgage he !
e nned ten cents on the dollar each month to
d deiault, and al the end Of the time stipulale
}. IN the mortgage, his home is sold from hin
e without the equity Ct redemption, not TO ps,
r the amount OF money borrowed and the IN
terest, bus TO raise sum sufficient TO pa
r. she monthly dues OF $40 per month. hi
d hard earnings that had been paid in, d
- monthly iuslallments is lost, or applied s
as 70 raise the monthly dues Of $40, whic
= lcontinue 10 fall due with its accumulate
burden OF interest. He ceases Wit
r the ruin Of his estate, 20 b
: a member OF the Association Could
II have been the inRntion Of an enlig ghtene
: Legislature 70 give such powers; and dos
y the Constitution Of the Association utterl
n Icontraverse the obvious intent Of the chal
y ter-strip the action Of this Association an
, their operstions-a as defined IN their Coust
= tuition, is II not f0T th0 aim and purposes
u loaning money IS usury, and an attempt
= eys3e the laws thereof Can it be anytnin
~ more than q borrowing or lending Of monel
Z stript OF its complications, il Is simply a
p ordInsry transaction Of loaning Of Rnone
g. at usurg. The complainant IN this cas
NJ borr0ws of the Association 81 500, executs
y his bond for $4,000, payable at Al indefni
.r time, when the Association shall wind a
n | gives mortgage on has land, conditioned
- nav $40 q month by way Of interest, ,
=. which amounts % the same thing, FOX n
of use OF 3, 500. This Association iugen iousl
of / guarded, and il Is but 2 aseviee % avo
:. The laws Of uSury, well has Lord Coke Sal
re to those that lenG money, my cqr5af is, th
10 neither directly nor Indirectly, BY art
= icunning invention, they take abou, six
as the hundred, for they seek by slight
4 creep out Of these statutes vii egces,
m Themselves and repent in the eud-Coi
ofi upon Eyt sth v. The Csc N y Ga. X.
,p 20 has been referred 20 as authority % 80
er sain the validity o. this assertion. Upon 1
BE- examination ~ she ease. it viii Be four
al that the leg isiature had granted to the 30
%. p5ration the right 10 ehanee the intera.
y i appears thu Association had bean tn-n
an p rated under the laws peculiar u the Sta
Cd who're the power had heol given 20 the coui
u b grant charters aud after eTguu ization s,
bv the adoption o. constitution and by-la-
hs simiisT b those now under o5-ai.iefatio
nv they Obtained a charter from the Leeisi
av ture embodying theiy consultation ana b
"a laws, thereby tEe Legislature re.ogniz
W. the r;gAt u charging interest. NJ so
ge. right icing giveu BY ibe Legislature in n
~ charter, il tis an authority against tie Ier.
X ity Of the acts q this Assoc ation.
bv The case Of 10, Mary. 4. D sss. in q
re similas in principle % the one undsr e.
he si3eration, under Che statutes Of that sta
an lhe Court held the iranszctsons q ths s.,
ciatioa not usurioas, bur liked q period
M which the rights Of the paries Should
nd determined, gave interest on the sum :
90 cured and rebaied thg -atercst isr TO yea
aR aad gave decree i9r the yalas q he 80