New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-11-26
THE COURTS.

| PALMRR AND NOT THE BANKS HELD ACOouNi-
ABLE FOR WHAT HAS BEEN RECEIvED-MR'
PALMER SAYS THAT He HAS RECEIVED NOTHING
| The recent arguments in the suit OF John
| Foley against ex-Chamberlan Palmer and the city
deposit banks during his term Of oice, before Judge
Van Brupt in the Special Term Of the Supreme Court
were made for the purpose Of securing construction OF
the law bearing the The decision given IN
| full below holds Mr.. Palmer accountable iof
| the moneys which he may have received a'
| interest mon deposit In those banks, tne
Broadway National Bank and the Tenth Nauona'
Bank but clears the banks Of any liability for such IN
| terest Mr. Palmer In conversation yesterday OK
pressed his readiness to pay over any moneys when
might have received but also added that he had
nothing owing to the action OF Controller Green 10 re-
| questing the banks to pay him no interest upon
receiving Mr. Green's letter. the banks had even re-
fused TO nav the Office and clerk hire as provided
1 by law The decision renders II necessary Tor Mr..
Palmer to submit to the suit and this ne VIII
do Immediately full text Of the decision Is as ioi-
| lowst
The complaint In this action shows that the pantin Is
citizen OF the United States and resident OF the City
OF NewYork and has been and still s assessed ior anes
the defendant Palmer, since Jan g. 1879, has been
Chamberlain Of said city That since me deienaans
County 81 NewYork, have BY virtue Of his office been
sssaed S5 the sse credit @s'
OF New York in various banks Of the city. That 6y
lain Of the CITY Of NewYOrk required in substance
to designate by notice in writing to the Controller n not
Mayor Aldermen, and Commonalty Of the City OF New.
hS S % ana nns
and also by Section OF that act IL was Ssd pro
s ySsH s BE- made sSS .Soa Si pay
monthly balance In each the office rent OF SAID Chan
SenntV chamSerain, ali OF whom the said Chamberlain
was thereby authorized TO appoint aud dismiss Ihat
lain Of the City Of NewYork year designated
as repositories of the money referred to IN the nrs sec
on Of act certain banks which have ever since tnat
time received deposit all moneys OF the CITY anu
County Of That after the passage OF the act
time being until the agreement hereinafter mentioned
was made received and applied TO- his own use interest
upon the moneys deposited as aforesaid at he rae o
four per cent per annnD except that lie paid salaries
referred to the second section Of the act OF 1886 afore
said That on about November 1867 1t was agreed
between the then Chamberlain OF the City Of New York.
upon his taxing Office aud the said banks that In lieu OF
Tie payment by OF the rent and salaries referred
TO in the second Of said they should
interest OF per cent per annum upon the daily balance
C,tv and County of New York That thereafter aud up
to Dec l. 1871 the said banks accordingly paid interest
BALANCES to the Chamberlain of the City OF New-York
who paid out Of the same the rent ana sa Is
res specified in the second section Of the Act Of 1860
the balance OF said interest to the crealt
Of the CITY County of NewYork That since said de-
PENDANT Palmer has been Chamberlain OF the City OF
New the said interest moneys have been Kept Dy
the said banks in separate account IN the name OF sad
Palmer as Chamberlain, and subject entirely 10 bs con-
troll Tat the SAID Palmer pretends to have paid In lieu
OF said interest that the said banks nave PAID the
office rents and salaries referred to iu the second sec
lion of the act OF 1906 aforesaid That the said
Palmer ever since he has been said SanRs
were not any legal duty or obligation to pay any
interest whatever upon the moneys deposited ana that
whatever other compensation they may nave
paid for the Of said moneys so deposited over and
a be ey were OF Wa
their part entirely, and that the said Palmer was not
under legal duty to @ aS any anpyss
interest for the benefit of the City apd County
NewYork was an act OF pmer nay DE- or
INJURED to this complaint upon the ground that the
does not state facts sufficient to constitute cause
There is no principle better settled than that trustee
must account for all prohts which he may make OUT Oh
the City of New,York has by virtue Of his Office the
and County of New.Yofk, and for the per
Torrance OF which duty he receives a salary
ses y c *
berain and the City and County OF i9rk aud that
Being officer of the corporation having III his Gus
a profit he can be made TO account for the same
precisely as any other trustee trustee, IL Inay De
could not compel the Chamberlain to make an
agreement by which interest should be allowed upon
hss made the City and county Of have the
right TO demand that the Chamberlain sba pay 10 them
such interest after deductng therefrom the salaries
referred to in the act OF 1896. 1t would be
doctrine to hold. and whch Is contrary to all prin
cipes of equity the Chamberlain should be allowed
TO- make bargains respect to the funds In his hands as
trustee, which should inure solely to Ills own personal
The act of 1866 provides that the banks which shall be
designated repositories shall pay the rent OF the
Office of the Chamberlain and the salaries OF such clerks
a. he shall employ 1t appears fom the complaint that
on Dec. 9, 1851 the Chamberlain OF the CITY OF New
made agreement with the banks 10 pay Tour per
cent interest upon daily baauces that the Chamberlain
said Interests and after paying out OF the same
the said and salaries, redeposited the bal
ance TO credit of the City and County OF New-fork
This arrangement it would appear was decidedly
more geOus TO the City OF NewYork than that
banks should have paid the said rentnd salaries De-
the interest upon The daily balances from N0ve'
ber 1867 December, 1871 amounted TO over $5OOO,
whereas the amount paid 0r rent ana salaries dd not
| exceed the sum OF $oO,0O0
As there Is by which the rent and salaries
of clerks of the chamberlain can be PAID except by
said banks, from the MONEYS derived thereirom n the
CITY and County OF NewYork desire TO have the benefit
Of the contract of the Chamberlain with the banks u
must necessarily take IL subject to the right Of the
the payment Of said rent and salaries the CITY
and County of NewYork have the undOubted right TO
claim that balance Of said interest moneys shall be
paid TO them. As 1t appears from the complaint
| that the defendant Palmer denies any obligation
on his part to pay any such interest money and
claims that they are his individual property the CITY
County of New York had the right TO maintain an
action against him TO have 1t determined that such
| moneys belong 10 them.
securing the payment OF interest upon deposits As
have suggested, such omission IN the law might DO
to interest deposits but there is nothing
in the act which gives the Chamberlain a%Itd
BY the OF 1872 every person residing In the City OF
Newly ork and assessed 10 pay taxes therein aud who
| shall taxes an action W
injury to property estate Of the cor
poration. Tnis act would seem to give TO tax payer
the right ITO maintain AN action as the Mayor,
Alderman, aud Commonalty VI 1.-THE CITY of New-YOrk
would have 10 prevent the loss OF any prop
| erty belonging to said city. As has been
| already seen, the Chamberlain Of the CITY
| OF NewYOrk claims to hold property as his own for
which he was bound account u the CITY OF New York.
and this brought to enforce such obligation.
would. therefore, seem " be clearly Within the pro-
| vision Of the act OF 1872
There many claims for relief made by the plaintiff
and Controller Of the City Of NewYork, which
cannot sustained owing W the fact that the Cham
has right out Of such interest
the rent of his Office and salaries OF his clerks,
entirely independently o. any conuoi by the
the I'm ~ IN