Strait v. Frary

Usury. — Acheson v. Chase, 28 Minn. 211, and Jordan v. Humphrey, 31 Minn. 495, followed on the question of usury.

Action upon a mortgage note, brought in the district court for Lyon county. The answer sets up usury as a defence. The action was tried without a jury before Webber, J., who found the following facts: The plaintiffs, bankers, had an agreement with Lewis & Kelley, of Minneapolis, by which the plaintiffs were to secure applications for loans, Lewis & Kelley were to procure the money, and . the plaintiffs and Lewis & Kelley were then to divide the commissions on the loans. Defendant applied to plaintiffs to obtain for him a loan . of $600, agreeing to pay interest at the rate of nine per cent, per an-num. The plaintiffs applied to Lewis & Kelley who had in their hands, to loan, funds belonging to Fannie A. Baker, and who from these . funds made the loan to defendant, taking the note in suit. The plaintiffs charged the defendant $60 commission, which was divided between plaintiffs and Lewis & Kelley, and which was deducted from the amount paid to the defendant. Subsequently Fannie A. Baker sold and transferred the note to the plaintiffs. Upon these facts, judg-ement was directed for plaintiff, from which the defendant appeals.