Where Home Legisiation Limiting Interest Rates Does Not Apply his reserved judgment delivered at the U.S. Court on Thursday jin 2 moneylending case, Judge Purdy over-ruled a plea by defend-Jants that the rate of interest was usurious under the District of Cotumbia Code! His Honour found for plaintiffs, the International] Banking Corporation, who brought fan action against It-Col. Joseph Barnes, Usa, and Gertrude M. Barnes to recover $2,700, advanced defendants on a promissory note Jdated January 19, 1925. Interest was at the rate of 12 per cent. per igation sued upon was! usurious, in that it provided for interest "in excess of that allowed: lby the Code, the Judge pointed out. that the sections concerned, when' tread and construed in connexion' with section 1186 of the Code, monstrated that it was not the tention of Congress to extend such' flaws to American nationals residing lor doing business in China.
This where the rate of interest was in Jexcess of 8 per cent. It also re-Jcognized the validity of contracts Jmae outside the District in which ithe rate was in excess of 8 per cent.
Text read from the printed page and cleaned; old type leaves the occasional error.