1893 - State Library Information Center

442 STATISTICS OF LABOR AND INDUSTRIES.IN CHANCERY *That part of the contract which must be considered in decidingthe questions raised in this case is expressed substantially in thesewords: The obligors shall well and truly pay to the complainant$8,000, in the manner following: By the payment of dues oftwenty-five cents per week, on the first and third Tuesdays ofeach month, on each of the forty shares of the fifth series of thecapital stock of the association owned by the obligors, during theperiod of this loan, together with interest on §8,000, to be computedfrom the date hereof, at the rate of 0 per centum per annum,payable as follows :At the expiration of three months from the date hereof on thewhole principal sum, and at the expiration of each succeedingthree taonths, on the amount of the principal found to be due atthe beginning thereof, after deducting all previous paymentsmade on account of the principal, being the amount of dues paidon the forty shares during said three months, as provided for bythe constitution and by-laws of the association, which have beenduly assented to by the obligors, and made a part hereof.My conclusions on the questions raised are:1. The complainant has a right to collect reasonable fines fornon-payment of dues, Glarksville Loan Asso> v, Stephens, 11 0.E. G-r. 351. I doubt whether the fine originally imposed wasreasonable, but complainant has reduced it one-half. Such reduction,I think, makes it reasonable.2. The complainant has a right to recover fines for the nonpaymentof dues as part of the debt secured by its mortgage.The constitution and by-laws of the association are, by expresswords, made a part of the contract, so that the rights and obligationsof the parties, in this respect, stand, in point of law, preciselyas they would have stood if that part of the constitutiongiving power to impose fines had been incorporated in the bond.The bond in Union Building Loan Am, v. Masonic Hall, 2 Stew,389,391, provided that the obligor should pay interest, " togetherwith all fines that may have been incurred under the provisionsof the constitution," and Chancellor Ruuyon held that the fines•Van Fleet, V. 0., July 12th 1893.