The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1877-03-24
SAVINGS BANKS.
Important Opinion of Attorney General
Emery.
ATTORNEY GENERALS OFFICE,
E1lc,uorth Mnroh = 1917

ATTORNEY GENERALS OFFICE,
Ellsworth, March Z, 1877.
Hon. W. W Bolster, Bank Examiner:
DEAR SIR,-I am in receipt of your letter
asking for my opinion upon the power of Saw
ings Banks, under the act of February 9th,
1877, lin case of deposits other than those by
"wdows, orphans, administrators, executors,
guardians, charitable institutions and as trust
funds to pay to any one depositor interest or
dividend on the excess of his deposit over ST.
said act going into effect.
The construction of new statute is usually
difficult and. not having any help of argument
and discussion, cannot assure you that my
opinion will be sustained by the Court.
Section 9, of the act, contains two prohibi-
tons very plainly expressed. First, "the cor
itor, directly or indirectly, over $2,0O0,' with
the exceptions before namely Second, land
no interest shall be paid to any one depositor
for any amount of deposit over said sum-
with the same exceptions).
This second prohibition cannot apply to de-
posits since the new act, for there can be such
deposits. The corporation cannot receive such
deposits. The first prohibition keeps them out.
The second prohibition can then only apply to
the deposits made at or before the time of the
new act,
The intent of the legislature was evidently to
reduce existing deposits down to $4,000. No
withdrawal of the excess is commanded, but
the interest on the excess is made to cease.
Section AZ is to be construed in connection
with the whole act and is not to nullify any
clause, unless the language of the section is
susceptible of no other construction. The sec
ton expressly, and in terms, limits the opera
ton of section 10, in relation to the rate of in
terest No express reference is made, how
ever, to the payment OF interest on the
excess of deposits over $4,000. The only
words that can affect the prohibition in section
9, are transactions heretofore had" These
words may perhaps cover dividends heretofore
made, anything done, and completed. They do
not necessarily refer to executory matters.
They certainly do not necessarily include in
their meaning an engagement to pay interest.
The bank don't engage to pay any interest. 1t
only divides the profits. In any event, who
deposits in savings banks does it with the
understanding that the rate of interest, or pay
ment of any interest is subject to legislative
control.
The Legislature having by section9 las I
construe it) prohibited in express terms the
payment of any dividend on the excess over
$4,000, of deposit made prior to the act, and
hot having anywhere modified or repealed this
prohibition in express terms, should be slow
to believe that the Legislature meant the words
transactions heretofore had" to nullify its
former plain prohibition.
give the law the benefit of any doubt, and
give the opinion that the ADD section does not
nullify the 9th section, and accordingly that
deposits made prior to the act of February 9th,
1877, with the exceptions before named) are
rot entitled to any dividend on the excess over
$4,000. The interest on such excess ceased when
the new act went into effect.
Yours very respectfully,
LUCILIUS A. EMERY, Attorney General.