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: 66
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250 FEDERAL REPORTER
same. If the facts are as appellees' counsel insist, the evidence has
been unhappily placed before the court.
Applying the rules with reference to the attitude of courts towards
usurious contracts, it should be held that the allowance of the claim
of $225 was upon the merits of the claim, and had no relation to com-
pensation for the use of the money. In making the proposal to re-
duce the price of the linters to fulfill the 'Dupont contract, Crawford
included as the reason for making the concession, not alone the making
of the new loan, but compensation for the delay in filling the Dupont
contract. There is no way of determining how much of this is ref-
erable to the one and how much to the other; and, applying again the
rules just referred to, the whole of the item should be rejected as
compensation for the use of the money. The concession on the Amer-
ican Products Company contract had no relation to anything except
the new loan. The amount of linters to be furnished under this con-
tract was definite, and the time within which it was to be furnished
was definite, and the amount which was to be paid by the Smith Com-
pany under the contract as it had been and as it was, as the result of
negotiations for the loan, was susceptible of definite determination.
This amount, $1,200, should be regarded in determining the extent to
which: usury entered into the contract. The items to be considered,
then, would be the 6 per cent. interest provided for in terms by the
written contract, and the amount of $1,200, agreed to be deducted on
this contract. The circumstance that the contract was not carried out,
and that no deduction in fact was made, is entirely immaterial, as usury
is predicated, not upon payments of excessive interest, but upon the
contracts to pay.
Counsel for the parties have disagreed as to the manner in which
the calculation should be made in determining whether or not usury
was paid or contracted to be paid. There should be no difficulty about
this. The contract provides for the payment of $2,000 in two months,
$2,000 in three months, and $3,000 each month thereafter to the tenth
month. In addition, interest was actually paid on the money advanced
prior to the execution of the notes and deed of trust. By adding to
the interest payable on the notes from date until maturity the interest
actually paid and the $1,200 promised to be paid on the American
Products Company contract, the total amount chargeable as interest
may be ascertained. If, calculating at the rate of 20 per cent. per an-
num from the same dates to the same maturities (including the period
covered by the advances as to the amount of the advances), the amount
ascertained is in excess of the interest stipulated in the note, plus the
interest paid on advances, and plus the $1,200, the interest provided
by the contract will be less than the 20 per cent. necessary to avoid
the contract. If, calculating interest at 10 per cent. from the same
dates to the same maturities, the amount ascertained is less than the
stipulated rate, plus interest paid on advances, and plus the $1,200,
then the legal rate will be exceeded, and no interest will be recoverable
under the law. The interest as stipulated amounted to $785. The
only interest paid on advances which the record disclosed is $85. The
interest stipulated, the interest paid on advances, and the $1,200 amount
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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/m1/81/: accessed August 18, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.