Gellert v. Baldwin Locomotive Works

DICKINSON, District Judge.

New conditions introduce new practices. When loan transactions were small, there was a borrower and a lender. If the loan was secured by a mortgage or other pledge, the lender in case of default could take care of himself. When very large loans came to be made, no one lender could take the whole loan. It was necessary to divide it among a large number of lenders. This in turn necessitated that a representative be chosen to act as a trustee for all. The individual lenders thus lost the power to each act for himself. Out of this grew the practice of the borrower…