Wilson v. Edmonds/Opinion of the Court

We are of opinion that, upon the same grounds, the decree must be affirmed. In addition, it may be said that the evidence sustains the matters set up in the answer; that it is not shown that the defendant ever represented himself to be a member of the firm of Squier & Co., nor does it appear that any creditor of that firm was ever informed or supposed that the defendant was such member, or gave credit to the firm, or had dealings with the firm, on the understanding or belief that he was a partner. The dealings between the parties appear always to have been of the character mentioned in the written paper of August 1, 1883. In every case of an advance or loan of money by the defendant to Squier & Co., a note was given to the defendant for the amount, bearing 10 per cent. interest, and pay vouchers for the same amount were placed in the hands of the defendant. The money lent by the defendant to Squier & Co., for which the notes were given, was to be invested in vouchers, which were to be bought at a rate to net in the way of discount the profit designated in the agreement; but that profit was not intended to be a profit to the defendant, in addition to the 10 per cent. interest, for it was expressly provided that all moneys which might be collected by the defendant on the vouchers, or received by him, should be credited to Squier & Co. on the notes. This compelled a credit to Squier & Co. on the principal of the notes of all the monthly sums paid by Squier & Co. to the defendant, and called 'profits,' over and above the amount necessary to pay to him 10 per cent. interest on the aggregate amount of his loans; and the practical construction of the agreement by the parties was to the same effect, because the testimony of Edmonds shows that he had various settlements from time to time with Squier, in which prior notes that he had received from Squier for loans were surrendered to Squier, on the ground that they had been extinguished by the surplus of the monthly payments by Squier over and above the amount necessary to pay to the defendant interest at 10 per cent. on the moneys which he had lent to Squier. It was lawful to stipulate in writing for interest at 10 per cent. Rev. St. D. C. § 714. Decree affirmed.