Brandon v. Miller

• Decision Date: 19 August 1902
• Citation: 118 F. 361
• Parties: BRANDON et al. v. MILLER et al.
• Court: U.S. District Court — Southern District of Georgia

118 F. 361

BRANDON et al. v. MILLER et al.

United States Circuit Court, S.D. Georgia, Eastern Division.

August 19, 1902

John R. L. Smith and W. C. Snodgrass, for creditors.

J. H Merrill and Washington Dessau, for Thomasville Real Estate &amp Improvement Co.

SPEER District Judge.

This is a matter largely within state control. The state may or may not permit its people to be subjected to usurious charges. This being true, it is, as stated, a question of state polity, and, if no general question of commercial law is involved, the ruling of the supreme appellate court of the state must control. Since the state courts uphold this act their conclusions are apparently binding on the United States courts. It is further said that the building and loan association laws of Georgia are obnoxious to the last clause of section 1 of the fourteenth amendment to the constitution of the United States, which provides that 'no state shall deny to any person within its jurisdiction the equal protection of the laws. ' It is difficult to perceive, however, how an act creating institutions of this general character, and authorizing them to make usurious charges upon citizens of the state who voluntarily enter into the contracts contemplated, is such a violation of this clause of the constitution as will justify a judgment of the national courts annulling such legislation. Certainly it may be said that there is at least fair doubt about the constitutionality of these enactments, and cases of doubt on such topics should always be resolved in favor of the constitutionality of the law. Besides, in this case, Brandon, a principal complainant assailing this law, has been from the beginning, and is now, a director and one of the principal stockholders in the building and loan association involved. Since he has for years taken benefits under this legislation, the court will not give a ready acquiescence to his complaint that the law itself is null and void, when the arguments advanced in his behalf to show unconstitutionality are at least of doubtful validity.

The legislation is not injurious. The classification of persons with whom these building and loan associations can deal are not indicated in a capricious or arbitrary manner. The law itself is intended to enable citizens of urban and suburban communities to build and own their homes. Surely, this is a meritorious purpose; one which the state may and ought to promote. The...