Kurzman

This ease is a companion case to that of Commercial Credit Co. v. Semon (No. 18000), 33 F.(2d) 356 , in which a demurrer to the cross-complaint has this day been sustained. This is a bill in equity, brought by Kurzman, Mattal, and Semon against the Commercial Credit Company, based upon the same alleged usurious transactions which are the subject of the cross-complaint in the law action.

The bill was filed April 3,1928. It alleges that Kurzman & Mattal entered into a contract with the Commercial Credit Company, April 17, 1925, whereby the latter agreed to loan up to 77 per cent, of the face value of certain assigned accounts receivable, charging 1 per cent, per month interest and certain unspecified amounts for collecting the assigned accounts.. It is alleged that the Credit Company made the latter charges without performing the services, and in addition retained a “customers’ reserve account” from the accounts collected in full, without reducing the interest charged Kurzman & Mattal proportionately. It is alleged that this contract was performed up to April 21, 1927.

*359 In April, 1927, Kurzman & Mattal made an assignment to the Board of Trade, followed by a composition of…