New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-08-15
THE COURTS.
SHE ALLEGES THE LOAN WAS USURIOUS.
MRS DARRAH SECURES Az INJUNCTION RE-
STREAMING THE SALE OF SECURITIES

MRS DARRAH SECURES Az INJUNCTION RE-
STREAMING THE SALE OF SECURITIES
DEPOSITED TO SECURE 1T.
Judge lacombe In the United States Circuit
Court has handed down decision granting Stella
p Darrah an injunction against Alvah W. Brown.
of No. Is Cedar-st. an agent OF life insurance
company. restraining him from disposins Of a large
amount OF securities alleged by Mrs. Oarrah 10
have been deposited with him under usurious
loan IL appears, from the papers on file In the
Circuit Court that this action was originally
brought in the State Supreme Court of this city by
Mrs Darrah, who charged that Brown loaned her
1900 last November her note Tor that sum, with
legal interest payable in four months and secured
bv $4,000 of the capital stock and $4,000 in bonds
Of the Knickerbockcr Phosphate Company. of No.
az Broadway. and also note for 5000 secured by
morteage on lands in Florida, all of which securities
she alleges, were deposited collateral with
Brown 10 secure the loan of $1,000.
Mrs. Darrah also alleges that Brown eXacted OF
bcr as a condition for the making OF this loan, as
a bonus, In addition 10 legal interest $1,000 other
Than the $500 collateral of the capital stock
of the Knickerbocker Phosphate Company. ana
that he required her to enter into a written agree
,nent with him, by which he should have option
10 purchase any portion Of the SIS 900 stock OF the
company deposited with him as collateral, not ex-
cecdine the sum of $4,000 par value, at the rate
of twenty cents or the dollar Mrs Darrah as
sarts that this bonus OF $4,000, and the option 10
purchase this stock fixed price. regardless of its
rca, value constituted usury under the laws OF the
State and made the contract void. and that con-
s.nuenty forfeited his $4,000 and she Is en-
titled 10 the return Of all her securities without re-
payment OF the loan. She also alleges that Brown
has sold the $4,000 capital stock and $4,000 In
bonds at the Office OF Richard V. Harnett & Co.,
and claims to own them by virtue of such SALE and
that he has given her notice. in writing that he
would sell the $500 mortgage note. claiming to mold
the same as collateral. Because OF these alleged
actions Of Brown, she brought suit for an injunc-
ton which Brown had removed TO Federal court,
where 1t heard by Judge I.acombe Lawyer
Albert patSck Of The firm Of Leeds Pa o ars
Darrah and Stephen G. Clarke, OF No. 80 Wall-st.
conducted Browns case.
Brown denied the taking OF usury, and also de-
MED that the $1,000 In stock had been given to MIN
as a bonus Both sides admitted that part OF
the $1,000 loaned by Brown to Mrs Darrah mad not
been paid her IN cash. but had been used TO pay
an Indebtedness OF her husband TO Brown. and that
400 Of the remainder had been used by MIS-.
Darrah to purchase the 5000 mortgage note, with
accrued interest and that Mrs. Darrah had assigned
cllrity Brown admitted that he gave written no
tce TO Mrs. Darrah that he claimed this mortgage
note as cola tera her $4,000 note. but SAID ne
had extended the time of the sale at her request;
that his attorney had advised him that he could get
no better title by sale and that he had thereupon
abandoned his claim of holding the 5000 mortgage
note collateral and claimed the same as an In
vestment. ,,
Judge Lacombe granted the injunction restraining
Brown from dsposng Of the securities or remoV-
ing the final determination OF the suit.