Rate of Interest Disputed j,, Whether the fate of interest 12 per cent. per annum is legitimate iwas the subject of considerable argument between Mr. N. F. Allman and Ins. Watson, of Franklin and Harington, in" the U.S. Court of [China before Judge BIN. J. Helmick fon Tuesday (June 19). Reserving his decision, Judge Helmick asked the two counsel to submit to him me-miranda embodying their arcus ments on Friday.
"The argument arose on Monday, when Mr. Allman, on behalf of stockholders and unsecured creditors, {intervened in a motion by the Finance [Banking Corporation, Ltd, a British Jcompany, for judgment by default for a sum of $45,90252 due on a mortgage on the assets of Luebbert's Pharmacy. Federal Inc, USA. /Mr. Allman stated that a' considerable sum representing interest at 12 per cent. per annum and calculated!
advance was included in the principal of the mortgage. He held. the rate to be illegal.
In support of his contention, Mr. allman stated that the code of the (District of Columbia, which was the law applicable ' to. American citizens in China, provided for maximum rate of interest at 8 per cent. After pointing out to the Sudge that the plaintiff? firm was a British concern and that it" was specified in the mortgage agreement, that British law should be applicable, (Mr. Watson contended that the rate of 12 per cent. per annum was Contract Without a Signature As there was no actual signature a Chinese chop on the document, the contract entered into by the General Neon Light Company with Lemeke's Motor Sales was declared invalid) by Commissioner Collins, in the U. S. Court for China fon Friday morning, when judgment and costs were given against the General Neon Light Ca. in its action against Mr. C. J. Lemcke for recovery of $646, representing rental ofa eon Ugh sgn erected th April, 1933.
Mr, Chao Van, manager of the plats' tim, elated that was customary in his firm's dealings with foreigners to rubber-stamp his name fon contracts, since he could not write English. He considered the rubber stamp would suffice. Defendant refused to pay the rental on the ground that the sign did not conform to the specifications agreed upon in the contract. awarding judgment to the defendant, Commissioner Collins stated that as far as he was aware, {t-was the custom of the Chinese firms to place a chop in Chinese on their documents. In the absence of proper signature and such a chop, he was, therefore, obliged to declare the contract invalid.
Text read from the printed page and cleaned; old type leaves the occasional error.