Case ID: wis_156/html/0277-01.html
Source: Caselaw Access Project
Author: {"author": "Winslow, C. J.", "license": "Public Domain", "url": "https://static.case.law/"}
Date Created: 2024-08-24T03:29:51.129683

In re Citizens Savings & Trust Company.
    
      February 7
    
    February 24, 1914.
    
    
      Corporations: Who may inspect books: Pledgee of stock: Insolvent trust company in hands of banking commissioner.
    
    Where an insolvent trust company, organized under the laws of Wisconsin, is in the hands of the commissioner of hanking for the purpose of liquidation, the circuit court may properly provide hy order for the examination of the hooks, business documents, accounts, and securities of the company hy a person who holds stock therein which has been transferred to him hy indorsement in blank as collateral security, although such stock has not been transferred on the hooks of the company.
    Appeal from an order of the circuit court for Milwaukee county: E. 0. Eschweilee, Circuit Judge.
    
      Affirmed.
    
    The appeal is hy A. B. Kuolt, Commissioner of Banking, from an order requiring him to permit, in hehalf of the Mil-ivaulcee National Bank of Wisconsin, an examination of the hooks and accounts of the Citizens Savings & Trust Company, and of the securities and property belonging to said company and the documents relating thereto, in the hands of said commissioner of hanking.
    Eor the appellant' there was a brief hy Flanders, Bottum, Fawsett & Bottum, attorneys, and James Q. Flanders, of counsel, and oral argument by Charles B. Monroe.
    
    Eor the respondent, Milwaukee National Bank of Wisconsin, there was a brief by Miller, Mack & Fairchild, and oral argument by J. Q. Hardgrove.
    
   Winslow, C. J.

In this case it is held that where an insolvent trust company, organized under the statutes of Wisconsin (secs. 2024 — 11i to 2024 — 77q, Stats. 1911), is in the hands of the commissioner of hanking for the purpose of liquidation, it is eminently proper for the circuit court to provide hy order for the examination of the hooks, business documents, accounts, and securities of the institution (at such convenient times as may not unreasonably interfere with the process of liquidation) by a person who bolds stock in the corporation transferred to him by indorsement in blank as collateral security, although such stock has not' been transferred on the books of the corporation. Secs. 1751, 1757, 2022, Stats. 1911; State ex rel. Bergenthal v. Bergenthal, 72 Wis. 314, 39 N. W. 566.

By the Court. — Order affirmed.