The New York herald., 1874-01-21
THE sTUYvEsANTy BANK.
Contracts for The Waking Of Beposits- lmpor'
tani Decision by Judge Blafehiord.
BUSINESS I'M TINE OTHER COURTS.
Continuation of the Benoni Howard Ooun-
terfsit Gase-ImpOrtant Suit and Rul-
ing as to Claims for Costs in Action.
THE STUYvESANr BANK.


sixpenny Savings Bank-Contrncts for
the Making OF Dcposits-What Consti-
tuaes . Lien On the Assets OF a Bank
rupt-Importan Decision by Judge
Blatehf0rd.
Yesterday in the matter of the stuyTesaIft Bank
bankrupt Judge Blachford rendered long, elaborate
and important decision He says the second section o
the Of the Legislature OF the state of New York.
passed April IL 1853 Laws Of sa3 chapter 2S, provides
that shall for any avings bank or institution
fer savings in the city and county OF Ne" YORK 'nen
chartered, that might be thereafter chartered TO
make temporary deposits in any bank or banking asso
citation 10 an amount equal to ten per cent OF the
actual cash capital stock PAID IN Of such
hank or banking association, and to receive
interest thereon at such rates, not exceeding that
allowed by law, may be agreed upon, PROVIDED mat
all the de posits any bank barking association
shall exceed in amount twenty per cent OF all the
depos longing such savings bank Institution tor
savngs contract or agreement In relation to
sad deposits shall be longer period The third sec
zion OF said aet provides ha, M shall not be lawn ~ Se ioe
any bank or banking association exeeedins
institution savings shall require and receive OF such
bank Tor al sums SO @ a%a ss IN aon
as the COMPTROLLER or superintendent Of me banKins
exchange Tor bills notes, tor circulation The
nx bank or BANKING association now or hereafter to be
created that shall become insoyen shall after proyid
by the nsrsS IN e rS place s to .as the pay S
nrifies Aforesaid and thereafter of any sum
De osi.sd with such bank or banking ass2eia
within the range OF twenty per cent a. provided In N The
s he s oi M April
l 1855 Laws oi 1883 chap is provdes mat the tempo
IN cy Saw YORK
1853 shall exceed in amount twenty OF all
as nor s e S @ or
tuion savings IN any bank q issue exceed il the ag
TiE sixPENSY SAVINGS RANK
county unit coy n the Of M New Yoe
as corporation has proved agnlnst The estate OF he
on az the rate s OF N ye per cent per r the
nnaer 81 he aid two acts it has valid and aS lien o
the estate e Of The bankrupt and IS In The distribution and
OF payment to any greditor OF the 6anaraP other
said moneys were deposited and loaned under the
agreement that the sXpenny savngs Bank should
that the said two acts entered into and formed part Of
the contract under which said deposit or loan was made
THE NEW YORK SAVINGS BANK
savings bank in the city and county OF New York,
chartered ey The state Of New York as corporation,
for the ,s sum q 5000 il Win interest The
rate q seven per sen per from me th Of oeo
said two acts, and its agreement with the bankrupt
soivsSsg q saherap5 q any saspension .hsfeef
other creditors not entitled by law to preference AS
M IL OF e ns Of
3ne state acts e arises rise nh the or
Stae act OF be allowed in the distribution Of the
s sf s' It. M he Rat
noSo on Of hs s S Ie @ acaaed m ON ali
ihe the bankrupt in case Of insolvency and
:. the S Rnd priority Of 1T s its
ea Is had &
laws thai the provision Of the fourth e section = of the tate
hen the present and future assets Of the bank that
same sense Sy the said fourth seeon
That the BasaTlptey act ar mems both
cnmbrances, and except in cases Of fraud on
and Of The Sankrupt as the
E the a s fh as we're as
rights property in the form OF contracts constituting
of The bankrupt in the hands Of The banETup Of
nacs the
zion involved especially in view Of the fact that at
g sanport o the claims the SAVINGS banks when the
oral reargament and full saerSon Of the provis.
sn 81 m shss G aee lea s 70 the not link
that claims Under r. the ,s5a, Of Of the act
herring in or adhering to the property Of the i
sankfapt The :ayinss banks; S, Tas, made
merely contracts tor the making deposits and the pay
amy for such deposits snss
5p Those s s. cnss'ns % & part t. Of the
nsnkrup tree from - any lien charge or
The q the Of
iSe e e o. for hs n e in b
button the estate OF the bankrupt the estate OF
that rule establishes favor of the
savings banks such interests in the property the
bankrupt that such property passes under the Bank
act o inc hands % p the ass,snse sueec, to
the present provides that certain claims shall
be entitled TO priority preference and be paid
full in the following order" Then follow five clauses
The fifth AL debts due TO any persons who by
laws the United States, entitled to
priority preference in like If this act had
not been passed. This is limited TO priorIties prefer
created by the laws OF the United States 1t does
extend prores preferences created by the laws
OF State Under il the state could have priority
for debts due TO 1t which rot liens securities and
but for the provision in the third class OF priortes
such debts due to the state there could be priority
such debts But such priorities preferences
ated by State laws in the distribution OF nsovents
tates are not liens securities rights in
property. III they not saved by the
Of the Bankruptcy act and hey recognized py
the twenty eighth section The claims to priority The
part Of the savings banks must be disallowed.
I. Hughscn Tor the New York Savings Bank: D. Noble
Rowan for the sixpenny Savings Bank; F. n Bangs tor