The Elk County advocate. [volume] (Ridgway, Pa.) 1868-1883, 1877-06-28
Negotiable Paper.
AN IMPORTANT OPINION BY THE su-
PREME COURT.

Following is the opinion of the SUI
preme court Judge Sharswood) in the
case of Woods VS.. North-error to the
court of common pleas of Hunting
don county:
1t is necessary quality of negotia-
bic paper that il should be simple, GER
tain, unconditional, not subject to any
contingency. 1t would be mere af-
fectation of learning to cite the ele-
mentary treatises and the decided
cases which have established this
principle. 1t is very important to the
commercial community that it should
be maintained in all its vigor.
Applying it to the note sued upon
in this case, we are of the opinion that
it violates this rule. If it had been
payable at sixty days, with five per
per cent. it would have been obiec-
tionable as usurious on its face. 1t
would not, however on that account
have invalidated the note or destroyed
its negotiability. A negotiable note
may be made payable with interest
from its date, and if more than lawful
interest is stipulated for, it does not,
in Pennsylvania, make the contract
void, but only the usury. Hence such
q note is sufficiently certain. 1t is
payable at maturity with lawful in
terest. But in the paper now in ques-
ton there enters, as to the amount,
an undoubted element of uncertainty.
1t is mistake to suppose that if the
note was unpaid at maturity the five
per cent. would be payable to the
holder by the parties. 1t must go
into the hands of an attorney for col
lection. 1t is not sum necessarily
payable. The phrase collection fee''
necessarily implies this Not only so.
but this amount of per centage cannot
be arbitrarily determined by the
parties. 1t must be only what would
be a reasonable compensation to an at
torney for collection. This, in reason,
and the usuage of the legal profession
depends upon the amount of the note
Five per cent. would probably be con-
sidered by a jury as reasonable com.
pensation upon the collection of a note
of three hundred and seventy-seven
dollars. But if it were three thousand
dollars they would probably think
otherwise, and certainly SO if it were
thirty thousand dollars. Now, then
can this note be said to be certain as
to its amount, or that amount un.
affected by any contingency?
Interest and costs of protest, after
noppayment at maturity, are neces
/ sary legal incidents ofthe contract, ant
the insertion IF them in the body O
the note would not affect its negotia
bility. Neither does u clause waving
exemption, for that in no way touches
the simplicity and certainty of the
paper. But collateral agreement Il:
here depending too, as it does upon it
reasonableness to be determined by
the verdict of II jury, is entirely
different. 1t may be well character
lied, like an agreement to confess ,
judgment was by Chief Justice Glib
son ,--sss Luggage" which negotiable
paper, riding as it does, on the wing
of the wind, is not courier able t.
carry.
If this collateral agreement may b,
introduced with impunity, what ma,
not be? 1t is the first step in tn,
wrong direction which costs.
These instruments may come to b
numbered up with all costs of stipula
tions, and all sorts of difficulties, con
tentions and legation results. 1t i
the best rule o6Std principles. Judg
mcnt reversed.
The effect of the above opinion b,
the supreme court will be to reliev
endorsers of notes on which there il
the printed stipulation that five pc
cent. collection fee shall be allowed
The supreme court holds that thi
clause destroys the negotiability O
the paper so far as the indorser is con
.cerned. The incorporation of tn
clause in mortgage and bonds ha
been held to be legal, and in view q
this fact it has been supposed by bank
ers and others that negotiable note
would not be impaired by having
introduced into them. Thousands G
these notes have been given the pas
few months, and the decision of tn
supreme court reversing the judg
ment of the Huntington county coul
in case raising the question of tn
negotiability of such paper will, il
numerous instances seriously affeC
the interests of those who have loane
money on these notes. 1t is said tha
several millions of this kind of pape
are held by bankers and other bus
ness men.
''IT WON'T Go. ."-Such was the +,
mark that we heard repeatedly la'
Thursday week, made by eightee
and twenty .five-year-old pilots, whil
standing on the river bank surveyin
the prospects of a flood. These m;
ture navigators surrendered at cnce-
| HItIs no Oh. thn wafer iS foo low