The Federal Reporter with Key-Number Annotations, Volume 250: Cases Argued and Determined in the Circuit Courts of Appeals and District Courts of the United States, August-October, 1918. Page: 56
The following text was automatically extracted from the image on this page using optical character recognition software:
250 FEDERAL REPORTER
making of the contract, the circumstances are such as to make the
place at which it might be said to have been consummated an unimpor-
tant and almost immaterial matter.
With reference to the place of the consideration, almost the same
difficulties appear. If the illegality of the contract may be referred to
the consideration, the same character of difficulty arises as in deter-
mining the place where the contract was made. The charge of usury
is based upon changes in contracts theretofore existing between the
parties, which had been entered into, and which were to be performed
in Mississippi. The changes were negotiated by wire and letters pass-
ing between Meridian and Philadelphia, and by personal negotiations
in Mississippi. So far as the actual payment of money is concerned,
a part of it was already in possession of the maker of the notes in
Mississippi when the contract was consummated; the payment of the
balance was through the banks and through the mail, the actual pro-
cess of payment involving action in Mississippi and Pennsylvania and
in all of the states between. As to the original source from which
the money came, the record is silent-whether New York, the legal res-
idence of the Smith Company, or Philadelphia, from which point the
correspondence with Crawford was carried on, does not appear. If the
consideration was affected with usury by the demand of the Smith
Company for interest in excess of that allowed by law, the same ques-
tions arise as in determining where the contract was made, for the
demand was made in both states and by mail and wire. It may or not
be important that the propositions for the payment of money in excess
of that permitted by law were primarily made by Crawford in Missis-
sippi, and his final agreement with reference to them was there ex-
pressed, and, so far as actually executed, executed there.
The elements which are definitely fixed in Mississippi are: (1) The
place of performance-that is, the place where the notes were to be
paid; and also the place where the deductions in price on contracts
constituting usury were to be made was Mississippi. (2) The prop-
erty upon which a lien was given to secure the payment of the principal
and 6 per cent. of the interest was situate in Mississippi. (3) The
money borrowed was borrowed for use in Mississippi, and it was ex-
pected that it would be repaid out of the conduct of the business es-
tablished there, into which the money was put. (4) It was contem-
plated that, in case of nonperformance of the contract by the promisor,
the remedy of the promisee would be in Mississippi. The deed of trust
could not be made effective elsewhere than in that state; no personal
judgment against Crawford could be secured except in that state; if
procedure in the courts, rather than by the trustee, was found neces-
sary, this procedure would necessarily be in Mississippi.
While, as heretofore suggested, the mortgage is, in a sense, an in-
cident to the debt, yet it sometimes, as in the present case, becomes the
incident of paramount importance. The debt may be entirely valid,
and yet entirely worthless without the security of the mortgage. That
is the condition in this case. Except so far as the land secures it,
the debt is without value. The contract would not have been made
without the mortgage. Entirely regardless of any other principle
Here’s what’s next.
This document can be searched. Note: Results may vary based on the legibility of text within the document.
Tools / Downloads
Get a copy of this page or view the extracted text.
Citing and Sharing
Basic information for referencing this web page. We also provide extended guidance on usage rights, references, copying or embedding.
Reference the current page of this Legislative Document.
The Federal Reporter with Key-Number Annotations, Volume 250: Cases Argued and Determined in the Circuit Courts of Appeals and District Courts of the United States, August-October, 1918., legislative document, 1918; Saint Paul, Minnesota. (digital.library.unt.edu/ark:/67531/metadc38821/m1/71/: accessed December 11, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.