Spirit of Jefferson. [volume] (Charles Town, Va. [W. Va.]) 1844-1948, 1867-09-24
Bank Of the Valley Case.

AT the special term of the Circuit Court of
Frederick held few weeks since, in Win,
chester, the case. Of the Valley Bank was dis
posed Of. The following is the decisiOBin the
case, just made known:
LIST. That the deed of trust which was exc
cuted on behalf Of said bank, dated March
10Th, 1860, aud made with the bill, shall be
construed as made in obedience to the act Of
Assembly passed February II, 1866, entitled
IAN act requiring the banks Of the Common
wealth to go into liquidation, and that the
provisions of the said deed which attempts to
give any preference between the creditUrs OF
the bank shall be disregarded, aud that the
assets Of the bank shall be divided amongst
all its creditors according to the rule laid down
III the said act; that is to say, ratabIy. ac-
cording to their legal rights and priOrities,
at the time said deed was executed.
I'd. That the holders of the notes of the
bank are not, in the distribution of the assets
Of the bank to be preferred to it's general de.
positOrs the bank being equally indebted to
each of those classes, and each of them must
be treated as having an equal right Of pay
ment."
sd. When general deposits were made with
the bank in Confederate States notes, or in
Virginia treasury notes, the depOsitOrs are en-
titled to be regarded as creditors of the bank,
for so much us such notes were worth when
they were received by the bank and credit
was given for them on its books to the deposi-
tors"
''4th. Where special deposits were made
with the bank, it shall be considered as the
mere custodian of the money for the deposit
tors who are entitled now to demand and re-
ceive the same money or kind OF money which
they so deposited or left with the bank for
safe keeping-therefore, where these special
deposits were made in gold or silver, they
have the present. right To demand the gold
and silver; for the money thus deposited
never ceased to be theiE money, and at no
time was the property the bank-but when.
ever, without fault on its part, and in the ex
ercise of a reasonable care in keeping such
special deposits, safely, the bank has incurred
any necessary expense abOut them; or, when.
ever, without fault on Its part, loss which
affected in common the coin Of the bank and
the coin of such special depOsitOrs. has occur,
ed such expense shall be reimbursed to the
bank, and such loss be prOpOrtionally borne,
by the bank aud such depositors"
18th. That where dividends have been de-
elared by the bank, the stockholders who did
not draw their dividends. can only claim their
shares in the same sort of money in which the
dividends were payabIe-these dividends
when made, were much taken out of the
bank and divided amongst the stockholders as
profits they then ceased to be any part of the
property OF the bank and if the sfOckho
omitted to draw then. they remained in the
bank as their property aud not the property
Ofthe bank-the bank did not thereby become
their debtor, but was only bound to keep them
safely until called for Therefore where these
dividends were payable in Confederate State
treasury notes. the unpaid stockholders, could
at any time only have demanded. and can only
now demand. that the bank. as its assignee,
shall pay to them, in Confederate States notes,
their proper shares of such dividends"
Tho case was kept on the docket for further
consideration and adjustment of new claims.