Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1871-05-06
IMPORTANT DECISION,
4 Question Of ss4, ,ss2 So Interest Decided
Against Shelby Gguaty,
Coupons Kads PayabIs In New York are in
the Nature Of a G0stract.
UETrED STATES CIRCUIT COURT,
W WEsTERN DISTRICT OF TENNsss zE,
aurIT u TsT1

April, q, Is7L
H Amy & Co VS.. shelby County: Interest
runs during civil war. on demands made
within Tle lnEurreclionsry uiEtriCu, bat
payable In a loyal $ ate. Interest on cOu-
pOus payable in New YORK, though made
In Tennessee. carry interest from the time
VIII % due and demanded at the rate in
New York, and not the rate In Tennessee.
Withey, Judge.
The agreed facts are that Shelby county,
pursuant TO acts Of the Legislature Of Ten
nessee, passed in 1858 and 1854, Issued
three hundred thousand dollars Of thirty
year bonds 20 the Memphis and Ohio
Railroad Company. To each bond was
attached sixty coupons, representing the
interest at six per cent, and payable in
New York at the MsTChautile Bank, two
OF the coupons maturing each year-One
each half year.
Plaintiffs are holders of large amount
Of these coupons, falling due from 1861 20
1870, both inclusive They represent the
interest on the bonds at the rate in Ten
neases. Payment was demanded at the
place OF payment, but was not made.
plaintiffs, therefore, insist that they are
entitled TO interest on the coupons from
the date they respectively fall due, at
seUeH per cent, the rate in New York,
where payable. on the other hand,
defendant contends that no interest
is recoverable on the coupOns during
the wsr-and in no event can q greater
rate Of interest be Cisimed than six per
Csnt.-thst the tar tOci c0HtTGctUs must
control
The bonds, The intent of which is repre-
ssnJsd by The coupons, il is claimed, show
the intention Of the parties to the con-
tract that interest should be six per cent.
As they express that rate.
The citizens o. States in rebellion
against the National Government were
not accorded the position or rights of
ulGsr enemies during the late civil war;
and the court does not therefore apply
the rule CCntsnded for BY defendant. viz:
that interest is not recoverable on debts
between alien enemies during war of
their respective countries. It would be
holding out 3 reward in favor of those
who promote civil strife against their
government TO hold thst q state Of civil
war relieves such party from bis legal
obligations ia part or in whole. II these
coupons had been made in New York by
a resident there, payable in Memphis. a
place within the Confederate lines, the
court might well say as payment
here would have violated the law of Con-
grsss, interest would not run while the
war lasted. See, as bssring on the qUes-
ton, Wall, Ward vs. Smith; also, Wall,
81
On the Qustion Of the rate Of interest,
one place TO be performed ia another, the
place Of payment or performance is the
place OF the contract. This may not
always be the rule, and for all purposes,
but II is the general rule. q Par. on
contracts, 583, and note "g," Andrews VS.
Rond, Is Pet. r. 65 II there was any
thing Ind csling 3 different Intention by
the parties, that would control, but the
court is of opinion that the rate of interest
signi6ed on the face of the bonds, and evl-
denced by the coupons, is not indicative
of any intentian that if the coupons were
not paid, in New York, at maturity, the
rate Of interest on the interest coupons
should DO the Tennessee rate. The holders
Of the coupons were entitled TO them
money in New York as they mstured, and
III payment was not made, interest accrued
at tie rate demanded by the law of New
York.
The verdict Of the jury viii, therefore,
be entered for the amount Oft the coupons,
with Interest a. per cspt. from the time
they respectively came due to this day,
which amounts to S84, 632 So
Randolph, Hammond & Jordan, attCr-
neys for plaintiffs; W. ". Mcdowell, at
tOrney for defendant.