1893 - State Library Information Center

444 STATISTICS OF LABOR AND INDUSTRIES.the $1,000 agreed to as a premium. I understand the law ofthis State to be firmly settled the other way. The statuteexpressly authorizes all corporations like the complainant to takea premium for priority of loan, and declares that no premium sotaken shall be deemed to be usurious. Jtev. Sup. 70. I nMechanics Loan Asso. v. Conover, 1 McCar. 219, it appeared thata loan of $2,000 was sold for a premium of ten per centum.$1,800 was advanced in cash, and a mortgage given for $2,000.Chancellor Green held the transaction to be valid, and gave thecomplainant a decree for $2,000 with all arrearages of interest.This case, on this point, was approved, on appeal, by the Courtof Errors and Appeals in Herbert v. Mechanics 7 Loin Asso. y 2 0.E. Gr. 497, 504, and was followed by this Court in People's LoanAsso. v, Furey, 2 Dick. 410. Mortgages given for the premium,as well as the money actually advanced, were held to be valid byChancellor Williamson in Savings Asso. v. Vandervere, 8 Stock.382, and by Chancellor Runyon in Freehold Loan Asso. v. Jtrown,2 Stew, 121. These cases settle the question, attempted to beraised, finally, so far as this court is concerned. The $1,000agreed to be paid as a premium constitutes a part of the debtsecured by the complainants' mortgage, and carries interest fromthe date of the mortgage.6. The remaining question is, Is the complainant entitled torecover interest on such part of the money aecured by the mortgageas was not passed over to the mortgagors at or before thedelivery of the mortgage, and as was not retained by the mortgageein hand idle ? To illustrate: The mortgage was deliveredSeptember 3d, 1891; $1,015 of the $8,000 was not passed over tothe mortgagors until January 5th, 1892, more than four monthsafter the delivery of the mortgage; in the meantime, the $1,015was not in the treasury of the complainant, nor anywhere else.As between the parties during this interval, it had no existence,Neither had it. I know of no principle of law or of justicewhich will allow interest to be recovered under such a state oifacts. To allow it to be recovered we would have to treat a thingas a fact which we know to be a fiction and not a fact. On the$7,000, interest will only be allowed from the time it was actuallypassed over.