Smith v. New Hampshire Trust Co.
Supreme Court of New Hampshire
Bill in Equity, praying for advice in the execution of a trust. Eacts agreed. March 14, 1894, the New Hampshire Trust Company and the plaintiffs made an agreement which, after stating that the company proposed to issue its obligations and secure the payment of them by a deposit of certain property with the plaintiffs in trust, contained the following, in substance, among other provisions : 1. The obligations to be issued shall become due January 1,1904, and bear interest at…
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Bill in Equity, praying for advice in the execution of a trust. Eacts agreed. March 14, 1894, the New Hampshire Trust Company and the plaintiffs made an agreement which, after stating that the company proposed to issue its obligations and secure the payment of them by a deposit of certain property with the plaintiffs in trust, contained the following, in substance, among other provisions : 1. The obligations to be issued shall become due January 1,1904, and bear interest at the rate of four per cent per annum until October 1, 1897, and at the rate of five per cent per annum after that date,…
1Opinion of the CourtChase, J.
Prior to March 14, 1894, the New Hampshire Trust Company had issued and sold debentures to the amount of $8,594,800, which were then outstanding; and had deposited with trustees notes ■ secured by mortgages of western real estate amounting to a sum slightly larger, to be held as security for their payment. In this way they had borrowed money at one rate of interest and loaned it at a higher rate, pledging the loans as security for the payment of the money borrowed. The object was to make a profit from an excess in the money received for interest over that paid for interest and expenses. The…
2Cited by1 opinion
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