Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1877-03-24
SAVINGS BANKS,
Important Opinion of Attorney General
Emery.
ATTORNEY GENERAL OFFICE,
Ellsworth, March Z, 1877.

ATTORNEY GENERALS OFFICE, !
Ellsworth, March I, 1877.
Hon. ". ". Bolster, Bank Examiner,
DEAR SIR Il am in receipt Of your letter ask
| ing for my opinion upon the power of Saving:
Banks, under the act of February 9th, 1917, lin
| case of deposits other than those by "widows or.
phans, administrators executors, guardians char
table institutions and trust funds, to pay tc
any one depositor interest or dividend on the ex-
cess Of his deposit over s., 900, such deposit having
been made prior to said act going into effect.
The construction of new statute IS usually diff
fcult, 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 prohibitions
very plainly expressed. First, "thc corporation
shall not receive from any one depositor directly
| or indirectly, over 81 900" with the exceptions
before named). Second, "and no interest shall be
paid to any one depositor for any amount of de-
post over said sum-" with the same exceptions
This second prohibition cannot apply to depos-
its since the act there cannot be such depos
| its. The corporation cannot receive such depos-
its. The first prohibition keeps them out. The
second prohibition can then only apply to the de-
posts made at or before the time of the new act.
The intent Of the legislature was evidently 10
reduce existing deposits down to 81, 900. No
withdrawal of the excess is commanded, but the
interest on the excess is made to cease.
Section ~ is to be construed in connection with
the whole act, and is not to nulhfy any clause,
less the language of the section is susceptible Of
no other construction. The section expressly,
and in terms limits the operation of section 10, in
relation to the rate of interest. No express refer
ence is made, however. TO the payment OF interest
on the excess Of deposits over S. 600. The only
words that can affect the prohibition in section Q.
are transactions heretofore had" These words
may perhaps cover dividends heretofore made,
anything done and completed. They do not
necessarily refer 10 executory matters. They GER
tainly 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. 10 any event, who depos its in Savings
Banks does it with the understanding that the
rate of interest, payment of any interests sub
lect to legislative control.
| The legislature having by section g. (as | con-
strue III prohibited in express terms the payment
| OF any dividend on the excess over 81 ,000 of a
deposit made prior to the act and not having any
where, modified or repealed this prohibition in
express terms should be slow to believe that the
leg slature meant the words, transactions here
tofore had" to nulfy its former plain prohibition.
| give the law the benefit of any doubt, and give
the opinion that the 42d section does not nulify
the 9th section and accordingly that deposits made
prior to the act Of February 9th, 1877, with the
| exceptions before named) not entitled to any
dividend on the excess over $1,000. The interest
on such excess ceased when the new act went in
to effect.
Yours very respectfully,
ICCILIUs A. EMERY, Attorney General.