Clearfield Republican. [volume] (Clearfield, Pa.) 1851-1937, 1877-08-15
TAXING UsURIoUS INTEREST
WIN. DUNCAN a BROTHER VS.. THE FIRST
NATL BANK OF MOUNT PLEASANT.


TAXING USURIOUS INTEREST
WIN. DUNCAN a BROTHER VS.. THE FIRST
NATL BANK OF MOUNT PLEASANT.
In an action under the sOth section Of the National
Bank Law Of June ., 1854, to recover from q
bank the penalty for taking usurious interest
Held
l. Special Acts Of Assembly, authorizing certain
banks to charge higher rate Of interest III au
six per cent. apply only to such banks as wer,
created by them.
2. That Congress deals with general rules regulat
ing banki and the rate Of interest to be charged
The rate Of interest In Pennsy ylvania being six
per cent the taking more than this amount Ii
usury, and is sprohibited by the National Bank
ing Law.
3. Where more than six per cent. has been paid
the borrower, or his legal representative, may
. recover back from said bank, in an action for
/, debt, double the amount Of interest thus paid
or retained Provided, suit Is commenced with
In two years from the time the usurious trans 10
action occurred.
In the United States District Court
of the Western District of Pennsylva-
MIA.
Action to recover the penalty for
taking usurious interest.
DEFENDANTS OFFER.
The counsel for the Defendant now
offer to show that since the year 1863,
the following State Banks of issue have
been organized in the State of Penn.
sylvania under the laws of said State :
The Manayunk Bank, the Bank of
America, the Peoples Bank, the Unit
ed States Banking Company, the
Shackamaxson Bank, the 22d Ward
Bank, the West Philadelphia Bank,
the Iron Bank of Philadelphia, the
Iron Bank Of PhpnixviIle, the State
National Bank, the Tenth Ward Bank
of Pittsburgh, the Penn Bank of Pitts
bnrgh, the City Bank Of Scranton, the
State Bank of Delaware, the Butchers
and Drovers' Bank, the Market Bank,
the Quaker Bank, the Franklin Bank,
the West End Bank, of Philadelphia,
the Southwark Banking Company
That each one Of said banks was or
ganized prior TO January lst, 1873, and
carried on business under said organiza-
tions and laws until January lst, 1876
and with the exception of tho Tenth
Ward Bank, the Butchers and Drovers'
Bank and Market Bank, still carry on
said business
That the rate OF interest by the laws
of the State of Pennsylvania limited to
these several banks at the time Of, and
even since their organization, was such
an amount of interest as should be
agreed upon between the bank and the
borrower or customer.
This in connection with the evidence
already in and hereafter to be offered,
showing that the First National Bank
of Mt. Pleasant, the Defendant, is
located in Pennsylvania and that all
the interest charged the Plaintiffs, for
which this action is brought, was at a
rate agreed upon between the said
plaintiffs and the said Defendant bank.
Objected to -
1st Because evidence as to the pow
ers Of particular banks Incorporated
under special acts of incorporation is
irrelevant.
3D. Becauseitisincompetenttoaff affect
the construction OF the Act of Congress
in question by evidence of particular
laws.
3d. Because there is no offer to show
that the particular charters referred to
belong to any general class, or are
other than private acts OF limited ap-
plication.
4th. Because where no rate OF inter
est is limited as in the charters offered,
the Act Of Congress itself fixes the rate
of interest
9th. Because generally incompetent
and irrelevant.
Objections sustained.
Exceptions by Defendant.
March 12, 1877.
WIN. DUNCAN & Bro. VS.. The FIRST
NATL BANK or Mt. PLEASANT.
No. II May Term, 1876
BENJAMIN MELLINoER VS.. SAME.
No. 13 May Term, 1876.
Charge of the Court by Ketcbam, J.
March 10, 1877.
Gentlemen Of the jury.
These are cases brought by the Plain
tifis to recover from the Defendant the
penalty for taking usurious interest,
under the thirtieth section Of the Ma
tional Bank Law Of June 3, 1864.
By agreement of counsel both these
cases. William Duncan x Brother. and
Benjamin Mellnger, are tried by you
together.
The Plaintiffs, as you have seen in
the course of the testimony, at differ
ent times borrowed money of the De-
fendant.
duncan & Brother at three different
tines: $500 on January 30, 1873 s4,-
900 on July 8, 1873, and $500 July IS,
1873. Benjamin Mellinger borrowed |
$3.50 January q, 1873, and s27L35
January 10, 1875.
At the time of the loan in each case
the bank retained nine per cent. as
discount, and credited the Plaintiffs |
with the balance, taking their notes
respectively for the full amount of the
proceeds and discount The notes of
Duncan e Brother were not paid at
maturity, but were renewed from time
to time The first note OF $500, of
January 30, 1873, was renewed till the
fall of 1874. 1t had been reduced by
payments TO the sum of $3.50. The
note of July 0, 1873, for $4,000, was
renewed till October, 1874. The note
of July IS, 1873, for $500, was renewed
until November 1874.
AT each renewal nine per cent. inter
est was charged, and was paid by the
Plaintiffs.
These notes were all sued and judg.
ment obtained upon them for the face
of the notes, or principal before the
bringing Of this suit.
The Mellingcr notes were renewed
The note of January q, 1873, for $3.50,
from time to time, till March, 1874,
when it was paid IN full.
The note Of January 10, 1875, for
s27I35, was renewed at the end Of
three months for two months, and then
for one month, and remained unpaid
till suit was brought upon it. Judgment
was obtained upon it for the full
amount and interest from maturity till
judgment. Interest was charged at
each renewal at nine per cent. No
credit was given on the principal, Of
any payment Of interest, by way Of re.