Case ID: ohio_9/html/0297-01.html
Source: Caselaw Access Project
Author: {"author": "Lane, C. J.", "license": "Public Domain", "url": "https://static.case.law/"}
Date Created: 2024-08-24T03:29:51.129683

In the Matter of the Ohio Life Insurance and Trust Company.
    The seventh item of section 2 of the act incorporating the Ohio Life Insurance and Trust Company, “to buy and sell drafts and bills of exchange,” confers no power to issue evidences of debt designed to circulate as money.
    The only power of such company to issue bills and notes for circulation is con-. tained in section 23 of the act of incorporation, which does not authorize the issue of bills or notes 'for circulation, payable otherwise than on demand.
    The special master, Goddard, appointed to examine into and report upon the affairs of the Ohio Life Insurance and Trust Company, reported at the last term that the company had issued notes or bills calculated to circulate as money, and payable on time, which were not authorized by their charter.
    *V. Worthington, solicitor for the company,
    took exceptions to the report in that particular, and insisted upon the right to issue under the power in the seventh item of section 2 of the act of incorporation, “ to buy and sell drafts, and bills of exchange.”
   By the Court,

Lane, C. J.

The authority “ to buy and sell drafts and bills of exchange,” contained in the seventh item of section 2 of the act incorporating the Trust Company, confers no power to issue evidences of debt designed to be used as money. The power of the company to issue bills and notes, designed to be used in circulation as money, depends upon section 23 only, under which, in the opinion of the court, the issue of bills and notes designed for circulation as money, and payable otherwise than on demand, is unwarranted and inexpedient.

This court, therefore, executing the authority conferred by section 21 of the act of incorporation, do recommend to said company to suppress all notes and bills designed to circulate as money, and not payable on demand, and to issue such notes and bills no more; and court do order that the clerk forthwith transmit by mail to said company this act of the court, and that said company make return of their doings in this behalf to the next term of the Supreme Court in Hamilton county.