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(The various schedules referred to in the report being in the common form of accounts, are omitted, except schedule I.)

Schedule, marked I.

Refered to in this report, containing a statement of what might be deemed a reasonable rent for the store and lot of ground, mentioned in the pleadings in this cause, since the exhibiton of the bill of complaint, which was on the 12th day of July, 1805, to the 1st day of January, 1815.

From the 12th day of July, 1805, to the 12th of July, 1806, $650

From do. 1806, to do. 1807, 650 From do. 1807, to do. 1808, 650 From do. 1808, to do. 1809, 550 From do. 1809, to do. 1810, 550 From do. 1810, to do. 1811, 550 From do. 1811, to do. 1812, 550 From do. 1812, to do. 1813, 550 From do. . 1813, to do. 1814, 550 From do. 1814, to 1st of January, 1815, 246 : Dated 1816.

I. H. Master in Chancery.

Form of objections to the master's report.

In Chancery.
C. D. Tefendant,
Between } and
A. B. Complainant.

Objections taken by the defendant, to the draft of the master's report in this cause, prepared by I. H. Esq. one of the master's of this honorable court, to whom this cause stands referred.

1st. Objection. For that it appears, in and by the said report, and the schedules thereto annexed, that the said master in taking and stating the said accounts contained in the said schedules, has charged the said defendant with compound interest upon the sums with

which he stands charged in the said accounts, whereas

the said defendant should have been charged simple interest only. 2d. Objection. For that the said master, in taking and stating the accounts contained in the schedule marked F. has debited and charged the defendant with the sum of $500, on the 10th day of November, 1805, and on the 5th day of July, 1807, with the sum of $1000, and with interest upon each of the said sums respectively, from the date of each charge, until the date of his said report; whereas, the said master, in taking and stating the accounts contained in the schedule last mentioned, ought not to have debited and charged the defendant with the said sums of money, nor with interest thereon, nor with either of them, nor any part thereof. 3d. Objection. For that the said master, in taking and stating the said accounts, has debited and charged the complainant on the 1st day of August, 1800, with the sum of $600, as the amount received by him from John Prior, whereas the said master ought to have debited and charged the complainant with a greater sum of money, to wit, the sum of $800. 4th. Objection. For that the said master has reported, that from an examination of the allegations of the parties, and the proofs thereon, he had ascertained that the complainant was not in the possession of the store-house, mentioned in the pleadings in the said cause, during any part of that period which had elapsed

N. since the issue in the said cause, whereas the said master should have reported, that he had ascertained, that during the period above mentioned, the complainant was in the possession of the said store-house, or that the defendant was not in the exclusive possession thereof, but that the same was in the possession of the complainant and defendant jointly. In all which particulars, the defendant submits that the draft of the said report ought to be varied and rectified. G. H. Sol’r. for Def’t. L. M. of Counsel.

Notice accompanying copy of oljections.

In Chancery.
C. D. Defendant,
Between } and
A. B. Complainant.
Sir,

Take notice, that the annexed are copies of the objections taken by the defendant, to the draft of the master's report in this cause, which objections were filed with the said master, on the day of inst.

Tlated, 1816.
Your's, &c.

- G. H. Sol’r. for Def't. To E. F. Sol’r. for Compl’t.

Calculation of interest.

Interest upon interest, or compound interest, is never when lim. allowed unless in special cases, as where there is a set-o...". tlement of accounts between the parties, after the in-jo"**

terest has become due, or an agreement is then made

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that the interest due shall carry interest, or the principal and interest are computed in the master's report, and the same is confirmed. But an original agreement at the time of the loan or contract, that if interest be not paid at the end of the year, it shall be deemed principal and carry interest, will not be recognized as valid.(a) If there be evidence of the subsequent agreement of the parties from time to time, that the interest then due should be converted into principal, the court will direct the master to make rests in his accounts, according to such agreements.(b) In settling accounts between partners, the period of the dissolution of the partnership is the proper time to make a rest and adjust the balance of the partnership account; and the partner against whom the balance is found, is chargeable with interest thereon.(c) A partner who draws money from the copartnership funds, is not chargeable with compound interest, but with simple interest only, on the sums drawn out; unless it appears that he has traded or speculated with the money, and made a profit on it, and refused on being called on for the purpose, to disclose the profits.(d) * If an executor, administrator, or trustee, negligently suffer the trust moneys to lie idle, he is chargeable with simple interest on them. If he convert the trust moneys to his own use, or employ them in his business or trade, he is chargeable with compound interest.(e) And where an administrator employed the moneys belonging to his intestate's estate in trade for his own benefit,

(a) State of Connecticut v. Jackson, 1 Rep. 209.

Johns. Chan. Rep. 13. (d) Same case, ib. (b) Barrow and others v. Rhinelander, (e) Schieffelin v. Stewart and others, 1 Johns. Chan. Rep. 350. 1 Johns. Chan. Rep. 620,

(c) Stoughton v. Lynch, 2 Johns. Chan.

and refused to give any account of the profits, the
master, in stating an account, after allowing a reason-
able time for the settlement of the estate, charged
compound interest, making annual rests in the ac-
counts for that purpose, and it was confirmed by the
court.(f)
Where an interest account was stated, and a balance
struck and carried to the debit of the party in a new
account, and interest charged on the balance, the Su-

preme Court of Appeals, in Virginia, held it to be

compound interest, and refused to allow it.(g)

The correct and legal mode of computing interest, "...”

- - - - W on an account between debtor and creditor, where par-oo:

interest, ere partial

tial payments are made, is first to carry the payment mode.

to the extinguishment of the interest due. If the payment exceeds the interest due, the surplus only must be deducted from the principal, and compute interest upon the balance of principal remaining due, to the next payment. If the payment be less than the interest, the surplus of interest must not be taken to aug

ment the principal ; but interest continues on the for

mer principal, until the period when the payments ta-
ken together exceed the interest due, and then the sur-
plus is to be applied towards discharging the principal;
and interest is to be computed on the balance of prin-
cipal as aforesaid.(h)
Whether the practice prevailing among merchants,
in settling their accounts to state an interest account, in
which interest is charged on each item of principal on
the debit side, and credited on each item on the credit

(f) Same case, ib. (h) State of Connecticut v. Jackson,

(g_) Lewis's executor v. Bacon's le- 1 Johns. Chan. Rep. 17. Stoughton wo gatee, 3 Hening & Mumford's Reports, Lynch, 2 Johns. Chan, Rep. 209. $9. 116.

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