Brownlow's Knoxville Whig. [volume] (Knoxville, Tenn.) 1866-1869, 1866-08-01

three usoaths pay per month
the sum OF sioee ghen ne cs ss 20 pay pay and the
the further sum Of $3.50 ~
On the 10Th of January 1852 complainant bought
Of by paying the previously paid BY
said stockhoder 20 other shares which he borrowed
sioee at premium of p per cent in
stated pay the sist Of ar 1850 four
.m aaa a ed claims to 0 due the
advertised 90 be sold under the deed The com
deed and assignments were made to secure the money arT
part Of which uuryhs the monies still claimed are Of
snjOned ascertain tbs amount Of
usuy hsrstofore paid BY him. and the claimed
defendants be snoined from collecting the sameha
the amount he now be sserransd and declared Thk
bin charges that the stocks assigned said
loans has been sold by the association and that the h
credited debt The defendants admit Incorporation
for their power authority and particularly loan money
to their They admit that the association sold
the stock of the complainant and brought $40
oI se We ras TO the monthly insfsiI1snf,
gwen the assocalon was ia III r.i,,,i t L1s
laws and regulations made partof the bill This mort
Martin has This day executed his land by which be
firmly bound to Nashville Building Association in the
ner following that to say before the day
each month succeeding the date ct these presents until the
Chancellor opinion that the contract usuT
Gus and that the constitution bylaws and opera
TED lnJuriousiy ana oppressveiy upon ihe oe,s anu ~
borrowers of its and that the effect was 70 exscF usuy
ordered from which defendants have appeal
| ed to this court.
The principal question presented for our consideration is
" was this usurious eOntract? Usury Illegal and
corrupt agreement whereby legal interest taken
for the loan of mOney"-5th Hump R. 407 in
Of law but question of intention to be made out by
arrive conclusions this
to examine the act Of Incorporation Of the defendants and
constitution adopted by their government
the transaction of business and if the powers by
law of the land and particularly the law of The
object and of said creating the association
incorporate mutual benefit and stock companyhavng
its object assist the members thereof become their
being powers rights privileges
and immun which incident to corporation granted
to them They were authorized 10 adept rules
bylaws and regulations that TO have the force Of legal
By section capital stock the
corporation divided into shares of dollar month
and close and the capital stock shall not be less than
the shall be loaned out to the on such
terms and conditions and under such regulations IS the
pOraon may prescribe by constitution and bylaw pOvi
ded the by and any monies
wanted by the stockholders be loaned to others at SIX
cent secured by real estate Section 9TH gives them power TO
and hold real estate by mortgage conveyed in trust to
the funds loaned Section provides when each stock
ST loL anu e'eLy snare OF seC s nun
shall be entitled to receive the of 5000 distribution OF
Under article s. section one Of the constitution each stock
association shall be entitled purchase advance Of stock
of $780, and Sec I'd Of h provides, the
paid into the treasury each month shall the monthly meeting
of the director, be sold 10 the highest bidder bidders
provided the be sold under and be secured by
ce 5h provides that any stockhoider taking an advance
shall allow to be deducted the pemium offered by him her
mortgage and policy OF insurance renewed annually at his
expense he she shall all costs that may for
aiming titles, drawings acknoedgug recording pre-
pairing all papers in connection with said scurity Section
18th provides for $500 advance made stakeholder
of stock shall be assigned collateral security Section 9th
provides that stockholdr taking shall pay
the treasurer In addition TO his her dues for shares
dollar month for each share which such advance
amount; including premium Section provides should
sockhoder having received portion Of stock in sd
neglect all Of his dues
compel payment OF principal and interest by nsuting pro
bond,
shall take place Of the property morgage TO the Association
tbs Directors shall have retain and apply much If
the purchase mone would be required to redeem The
property according to the provisions contained IN the sixth
payments monies expenses Association shall
Article referred to- in the last Section provides thai
should stakeholder desire have his bor property dis
regularly Terminated he she shall Be allowed TO do by
paying into the hands Of the such Of
premium funds then selling produce
the monthly Of interested that which the
provided sucb shall than
amount received by him her, provided further that
release shall be given until he money paid for such release
shall have been sold and the security offered the Be
duly khoders paying all costs connected
with the redemption of the mortgge property Section 4h
and desires have buildings upou d
he submit his said directors and they If they
amount adequate to complete the i'm
Provemen shall apply it, but the by this
ration shall lose interest Article provides that the
nd tal stock shall not be than i've thousand shares The
the principle Articles Constitution
adopted by the Association the Cd August 1854
which insisted they had the right adopt and when
ant being member having voluntarily subscribe
thereto is bound by the Constitution and By Laws of the
~ citation. 1t is we'll settled principle
fe corporation Is duly created, the law tacy
- to it the making private
nd government and support Ames corporations
81 but the bylaws of aeorporaon must not be incon-
sstent with its charter for this instrument creates it
artificial being mparts to its poerlesignaes its objects
and usually prescribs its mode of operatonr h in short The
fundamental law of the corporation spr
as constitution to the petty legislation Of the tsy acting b.
and under it. Hence all by laws
void Angel Ames on corporations, 4o The powe
delegated in the charter of this Association which
| Q
legal enactment upon its members greater than
charters 1t further provided in the charter defendant
that the constitution and bylaws
Law governing corporations in adoption
en- with their charter? Did the Legislature intend
invest this association with such rights and
tempted to be exercised in the constitution m
we must look to the charter for it this that gives life tn
artificial being mpaTts TO its and desgnate its %
ects The language of the charter is IAN
shall be mutual benefit and company having
object to assist members thereof become their land
There can be doubt of the intention Of the Lege
ns Tor themselves comfortable homes such being the mani
fest intention Of the Legislature the constitution and bylaw
are merely void
far does the constitution adopted by this association
conform to the Fprt and intention the charter
inferred By the most liberal construction Of the constitution
adopted by this Association the object and purpose
working in procuring houses The rules and regulation
ess show how persons may stockholders
dollar per month share paid TO the treasurer the work
ing how he well spare from his har
and earnings he continues member for twels
months paying his regular dues; he wishes procure
house the money offered and he becomes bidder
tnnated at the fictitious yaIaa OF 500 Twenty shares
O. truck of him. valued s. 600 He receives the
1850, and executes his bond 600 conditioned
with interest. He the b
of paid Previous the execution Of the mortgage the titles
tho examined by the attorneys the preparation the deeds
acknowledging and registration paid the
eager He thus places himself within the the
ill citation Month after month his calls of $40 each
met-there is no escape He is within tolls Of this ingeI
ous spread by the cunning association
ey-lenders fails 10 r
cured by the he Is fined
month for default, the end stipulated
gage, bis home is sold from him without equity
ton the of money
O but raise sufficient pay monthly dues of s
of month. His hard earnings
1at monthly nstamen5 is or applied 80 as TO
VS. monthly dues OF $40, which continued to with
nv cumulaed burden Of interest the ruin Of
estate to De member Of the Association CUi haze bee
OF enlightened Legislature Such
and does the Constitution Association utterly
traverse the obvious the
Of this Association and their operations defined he
money at usury and attempt evade the laws thereof
Can 1t be anything than a borrowing lending
money strpt gifts complications it is simply 0Tdinar
transaction Of loaning The complainant
bond for $4,000 payable indefinite tm, when the
citation shall wind up mortgage his land condition
ed month which
the thing the
of usuTy well has Lord Coke said th that lend money
my that neither directly indirectly D.
ming invention they about the hundred
deceive
Il R. has referred authority
validity this assertion. Upon examination II
will be found that the Legislature had granted
corporation the right change the II
association had been Incorporated under the laws peculiar
State where the had graz
charters after organization and the adoption Of