The Roanoke daily times. (Roanoke, Va.) 1895-1897, 1896-05-15
IMPORTANT DECISIONS.
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imtOH U HN OGSt0tStHSs
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stances. which. In connection with the existence
OF local board, tend TO throw light upon what
wss tho real Intention OF the pssii,s.
In the several cases under consideration, we will
huu tcat the relation which this local collector
eustains towards the borrower and towards the
association varies very materially in different
cases In some cases he is admitted to be the
agent o. the association. with power to collect
and bind the association by hi. collections. In
other cases, IL Is contenaed that he IL in no
scnss the az 1t OF the association but that ofthe
local borrower. and can IL no scnec bind the AZ
ISOLATION. 1. como cases 1t seems to have been
contcm, l ncd, that all Of tho payments should be
citation In o her cases Iuet the reverse seems TO
be the fact. 80 tn n, each case muet stand upon
its wa fsc;s a nd circumstances.
desire 10 make u further remark OF general
natnte before taking up the several cases
eeriatim
1t w4s contended. in argument, that all OF these
contracts In question, muet be, In COZ temptation
or law, solva6le in Virginia.; because the debt,
secured by liens upon real estate In Virginia,
and since the creditor would have to invoke the
he muet submit himself to the laws OF ViIgi1is
az rewards questions OF usury:
Many decisions were ei,ed IN support OF this
many decisions, however, can be produced hold
ing The contrary. The very recent c,se OF the
dec .ded by the United states Court of Appeals
for the Fifth Circuit Is CAGE directly in point,
OF texas and the debt secured by deed OF trust
on real estate in texas. yet the contract was, on
tts free, to be performed In Dakota This court
kota contract, and this WAS not affected by the
fact that real eetste security had been taken for
the debt In tbs statc OF Texas
think this point hae been virtually adjudicated
in Virginia In the recent case OF Ashwor, h the
National Mutual Building Loan As.oei .tion.
New York, but the debt was occurred by real &C.
ia W yraa ir-
ginia contract or New York contract Although
the court did comment upon the fact that tie
stood out boldly In the record; and had they
deemed 1t a controlling fact in case. they would
the view now urged by counsel TOR plaintin,
their decision would have been just the reverse
shall, therefore, hold that taking a lien upon
real estate in Virginia does not prevent the con-
tract from being contracs made in reference to
the laws of foreign state when there is pro-
vision in the contract that 1t shall thus be per
formed in q foreign state.
coming now to the several cases in the order
above slated, we will fret dispose OF the case OF
JOIN h. DAVIS
BALTIMORE BUILDING u LOAN ASSOCIATION.
In this case, the contract between the parties
doc hot state where II ie to be performed,
although there is bylaw OF the company stat
ing that these Contracts are to be performed in
the state OF m aryland, at the homo ONCE OF the
com 2any. The evidence OF the plaiutir is TO the
effect that the contract was actually entered into
in the city or koanok c, and that he no. aware
OF q contention OF the defendant that he had en-.
terrd into contract TO be performed in the State
OF Maryland.
This company had established its branch office
In lhis city, with the usual corps or officers,
stance Of & sssti@ony is sn he
piaintin, Davis, approached him for loan OF
money out Of his bank, and that then he directed
Davies attention TO this building as .oc'alion
THAI Ii. old Davis al hi. p.,m-nts To this
cistio4, IN the even. he b rOwed money O. H.,
woJIu LIN c in hoanuke. Ehgebt st1tcs D.,
lie WAS the agent OF the bU1pnIy, knd ma al
such agent lie received all these garments Viii n
have been made, ana tina, he. deducted u commits.
eion OF two per cent. "a per cent from ais colicc
ttons fOE mis- SERVERS as collector. That he re-
ceived this money for the company, and that he
receipted To the parties for II.
have Just stated that, whereas, the contract on
its face, is silent as TO where II shall be per
ing that such contracts were to be performed in
Maryland; but there is yet another bylaw OF the
oompany has e.tsbssed local board, ali pave
local board.
1t would seem, therefore. that this special by
law applicable to the particular caee where there
are 10 al treasurers. was intended to override
the general law applicable to all other cases, and
this view OF the matter seems to be entertained
by the company itself; because In the testimony
OF Mr. elingun the general counsel for the COM
panv, he states in substance that, where there
local Eeasurers, 1t is not only the right OF the
6orrowes eut it is his duty to make payments to
practically impossible for the company to con-
due. Its busixess.
Will 1urtner remark tnat the local DORrQ seems
not to have had meeting for the past three
years yet, Mr. Engleby, the treasurer, has con-
tinued to &C, az collector of all the payments due
the association by parties In thir city.
1t Is contended by the association that this
local treasurer lie not their agent, but the ~ OF
the local stockholders, and that he Is placed here
as matter OF convenience for such stockholders
1t docs seem to me that, where the bylaw of a
Company expressly provides that the payments
shall be made TO the local treasurer, IL there be
one, and where the borrower. not only has the
right, but II is his positive duty 70 to pay him,
there could be no question as To wnere this con-
trac. is to be performed. 1t Is clear to my mind
that tnie ie Virginia contract; II wae one which
the paintin, DAVIS. under the bylaw OF the com.
pany, was bound TO perform In VirCinia; and 1t
Is one which must be enforced in accordance with
the lava OF Virginia sc regards usury.
Under this view of this case II becomes M
necessary for me to discuss the further Question
raised at bar as to whether this association il
titled to the provision OF the Maryland law, al.
lowing 1t to large interest in excess OF the law
ful rate-it being my opinion that thie IL not q
Maryland contract, but a Virginia contract.