New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-01-21
The COURTS.


UNDER THE STATE LAWS NOT ALLOWED.
Section of the act of the Legislature of
the state of NewYor passed April 10. 1853, provides
that if shall be lawful for any savings bank OF lnsu
ton for savings in the City aud County of Newfork'
then chartered, which NAV thereafter I've chartered
"to make temporary deposits IN any bank or BANKING
association TO amount equal to ten per cent OF the
actual cash capital stock paid in OF such banking asSoc
alton and to receive interest thereon at such rates not
exceeding that allowed by law, may be agreed upon
provided that all the deposits in aEy one bank
or banking association shall not exceed III
amount % per cent of all the deposits ue
longing to such savings bank or association oi savings
and that contract agreement III relation TO sau ue
nosts shall be for n longer period than one year Sec
ton of that act provides that III shall nor De aWlu
for any of such savings bank or association for saw
ines TO make any loans bank banking associa
-ion exceeding the limits above prescribed unless such
savings bank institution for savings shall require ana
receive Of such bank, for all sums deposited exceed
ing the limits above prescribed such securities theIeIo
and equal in amount, ae the Controller or superihehi
en of the Banking Department is now lawfully author
lied 10 receive exchange for bills or notes for crch
ton Section of that act provides that all the assets
Of anv bank or banking association now or hereafter 10
be created that shall become msoyen, snail AFTER pro
vidng for the payment of its circulating notes. DC aP
piled by the directors thereof i'll the first place 10 the
payment OF any deficiency that arise on the sales
sums of money deposited with such bank or bahHn& as
socatop by any savings bank institution for savings
within the range 20 per cent, as provided III seeuoh2
of the act.
Section one of the act Of the Legislature of The state OF
New-York passed April TO- $780, provides tpat The ten
porary deposits which any savings bank or INSTITUTION
for savings in the City and County Of New-York
il authorized 10 make by" section Of chap. 25 of the
laws 1885, shall not exceed III amount - per cet OF
all the deposits belonging TO any such BANK "i lnSut
/ alttnf
or institution savings in any bank OF issue exceed III
the aggre gate. at one time, The sun OF $4,000
Tine Sxpenny Savings Bank OF The C1'y OF NeN-fork
proved against the estate OF the Sjuyyeaut Bank,
ia,trt din in, for ~ 26l CO. with interest at per
cent from lo51 In ITS proof of deht II claimed
that under the acts referred had ydd ana nrsi
lien on the Of the estate OF the bankrupt anu
was entitled, the distribution and division OF such
estate to preference or priority OF pay NOM over any
! creditor oi The bankrupt other than the New York
savings Bank, on the ground that the said moneys
were deposited and loaned under the express
agreement that the siXpenny savings BANK shCud p9
entitled 10 such priority under the said twOaelS ANA
that they entered into and formed part Oh tle con
under which the deposit or loan was maze 10 the
The NfyYork savings Bank proved against the estate
OF the bduSrdpt claim loI S1VULo H. VIVA lNtvleS, ~
per cent from oct ISL In its proof Of debt; II Gained
that under the SAID Two acts ana agreement win the
bankrupt hcreunder ana IA pursuance tneiGoi, pion
to the insolvency of thc Oankupi, or any SUSPENSION
thereof 1t was entitled 20 have its claim paid in idil
of the assets OF tue BANKRUPT p,i9f9 any pa! mon.
was made to other creditors not entitled by Law 10
Assuming that all, or some parts Of the amounts OF
the inns TALL within the terms Of the provisions OF
:,
District Count before Judge BatchiOrd, whether the
priority on preference claimed under section OF TIE act
OF 1858 could be allowed III tue ulslouoh Vi 'nc "9So'
Il Was eontGndcd on the part Of the savings banks
that, by virtue OF the agreements nude ny mem WIN
the bankrupt under and within the provisions OF me
State acts they acquired lien on all The assets Of Tie
tIiDu0n of Its assets entitled 10 the same preference
aud priority OF payment over ITS general cedltOrs 10
S9 GGy TS%q na a Se s S a%s
4G aS o. s a 4S S5 Dls ISys ad r az Of @
bank; THAT al liens are made IN contemplation OF IN
s0yency in tAe sense 10 Tie hen created by said
sectiof 81 That The Bankruptcy act preserves az eD'
with legal and equitable and an Gharses OF lnGun-
brances and except in Of fraud on The acl gives
to the ass snee III bankruptcy only such rights and
interests in The estate OF the bankrupt as tile bankrupt
had or could assert" and that the rights acquired b.
the savings banks under the State act were rights OF
property IN form OF contracts consisting Of equta-
Die liens which be enforced against the estate OF
the bankrupt in The hands Of the assignee in bankruptcy
10 the same extent to which they could have been en-
forced against the estate Of tho bankrupt III the AandS
Of the bankrupt in Of insolvency, IL there lad
been no proceedings in bankruptcy
In decision gwen III thls case Yesterday, JudSe
Batchford have given much consideration to
the question involved especially III view of the fact that
opinion in support of the claims the savings banks.
when the question was submitted to me ON written
briefs. But an oral argument ana run consideration
provisions Of the bankruptcy act have led me To-
the conclusion that those claims cannot be allowed. l
do not tmnk That they cam under me stat acl DC prop
erly considered rights OF property nheIng III OF ad
banks IL is true made contracts with the bankrupt Dut
those contracts merely for the purpose OF making
deuDSits and the interest No part
The State act gives any lien for such deposits on any OF
the assets OF the bankrupt. Those assets, con
ssting in part Of the moneys so deposited,
could be dealt with and disposed OF by
the bankrupt, free from any lien, charge, or ineum-
brance thereon, arising out of such contracts NO pro-
vision of the State act purors to interfere WIN the
disposition OF the assets Of the bankrupt aud then.
rule application OF such assets III the dlsrlDu
lion OF the OF the bankrupt the estate OF an i'll
solvent debtor is created by section OF the Stale act OF
1859 But that rule establishes in favor Of the savings
banks no interest in the property OF the bankrupt
that such property passes under the Bankrupt act INTO
.t flaa In
section OF the Bankrupt act OF Aug 49, lSl PROVIDES
that nothing in this act contained shall De construed
to annul, destroy, or impair ny, ,rIs rnD
which may be valid by the lsws le o,Ses iespegt
iyeiy, and which are hot ln9o.sleh VIII tas gr9yIa
ions Of sections and OF this act" ,,,.
After citing numerous authorities IN support OF us pr
stion Judge Blatchford closes by saying the claims
Of priority on The part Of the savings banks must he dis
allowed" f. Hughson for the New-fork savings BANG
d. Noble Rowan for the SiXpenDy Savings BdDhj and l.
" Bangs Tor the assignee In BANKRUPTCY
| RECOVERY OF INSURANCE on MARINE FREIGHT.
An insurance case involving S3,3Sj 10, has
just tried before Judge Van Worst tie Superior
Court, Part /, aud decided in favor OF the plaintiff
Henry A. Gadsden sued the Commercial Mutual Insur-
Company this amount OF insurance for
the loss of earnings freight which had injured
the voyage from West Indian harbor this city.
The plaintiff showed that the ship prepared start
with the freight aud the next morning whe,a anchor
| in the open roadsead, the wind veered around and
forced heavy into the open harbOr, which rocked
the vessel 20 violently as TO shift her cargo and
her yards. leak was sprung, and during the
the the hold had gained feet. and de
stroyed barrels Of As discovered
pumping was begun, ana the captain went ashore,
entered protest with the Consul aud asked for
! yey OF the vessel. THIS done, AMI II found
NECESSARY 10 take ont repairs Subsequently
.ta rffN mt