The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1899-05-31
B. & I. Association Usury.
Important Decision of the
Courts.


Building and Loan Association Va.
Finlayson, from snis county, 10 favor
of the defeodans, is another blow at
the us1rious charges aad cnfair
advantages taat these corporations try
to take Of those havieg transaction with
them. Ali manner of aatteriDg
Inducements are held out by the
solicitors for business Of these foreign
associations, but the big earnings they
promise to make do not matesialize,
and instead Of furnishing money at q
very low rate ae proposed. they
generally try to collect 10 the cod II TO
20 per cent. The courts Of the State
have put them to fight Of late. and
any that attempt to vietimise borrowers
hereafter ia South Carolina will have to
depend upon the ignorsace Of these
they deal with. for certainly they
cannot hope to have the courts assist
them to evsde the laws after the receot
utteranees of those tribunals Money
ct 6 per cent, and sometimes less. is
offered, the literature is en.iciog,
pic.uring big earnings. which are to be
shared in by the borrowers. bas the
associations usually come up with all
manner of excuses for falling to realize
sheir calculations or expectations; yet
they want the borrower to ''toe the
mark" The Supreme Cour. holds
that this literature is part OF the
contract. as much as the bylaws of the
association, and rightly, too, for it is 90
the representation that many borrow.
In the Fialayson case they admitted
their own failure financially, aud
inability to fulfill their part of the
contract. yet wanted him to ful6ll bis,
and they went evsn further. tried to
collect 80 per cent additional for losses
the association had met With. The
defendant offered to pay the principal
aud interest, and, rather than submit
to lawsuit, ons half the claim for
losses. This they declined. claiming
principal and interest. and on top OF
this 80 per cent additional, as stated i,
to make up the losses the association
claimed to have sustained, which would
have it very dear money 60 the
borrower. The Supreme Court holds
that borrower 10 building and loan
association is no longer member, tbat
it is not co partnership. aud that be
occupies only sbe place of borrower
jus. as if be obtained his money frcm a
bark or an individual and that when
the principal aud interest is paid the
bond is met sud the mortgage must be
marked satisfied.
The case referred to vas heard by
Judge Ernest Gary at Chesterfield and
Benni,tsviile last summer. apd has been
since then hard fought by the attorneys
on both sides, resulting 10 the recent
deeisien sustaining Judge Gary. The
defendant had repaid the principal, and
part of The interest, aud was willing to
gay The remainder of the interest,l aod
to avoid lawsuit, one-half the losses
claimed. This liberal offer was reject
Cd, and the receivers Of the defunct
concero insisted upon going toto Court
to ascertain how mucn was still due,
aud there was posbiog left for the
defendant but to let them 60 ahead,
aud as result they have $1,000 less
than they could have had but for the
greed Of the graspiDg concern. The
decision of the Supreme Court relieves
the property Of the mortgage and wipes
out the alleged debt entirely. Cousid.
.erable interest has been taken in this
and the Darlington cases of like nature,
as so many property-holders in the
State a.e involved with these foreign
associations News and Courier