New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-08-01

A DECISION ny THE SUPREME COURT OF THE
UNITED STATES.
WASHINGTON, July 31.-The following are
the main points OF the decision ~ the United States
suprefhc Court in case No. 2iI Fanny A. Huntington,
adsinistrnrix and Frank II. Gassaway, administrator
OF W. s. Huntington, deceased. AGAINST the National
Savings Bank Of the District Of Columbia, the decision
being definition Of the legal character Of savings
bank:
TIC bill OF the comuainnuts assumes that as personal
representatives Of william =. Huntington. deceased,
ney have equitable ownership OF 0nesi xieenih part
OF the Franchises property and privileges OF tue defend
dant corporation and that as such representatives they
entitled 10 call for aB account Of the profits made
and to demand payment 10 them OF Oneslxecuh part OF
the value OF tie franchises andproper as wen rs prof
whether tie estate OF the ntstate has amy pecunnry
interest Ia the corporate franchise anu hopery-eAn be
determined only after a careful examination Of tue
defendants charter.
The corporation was created by an set OF cOngrpss
approved May ~ 1870, entitled Al act To incorporate
the National Union Savings Bank OF the District Of
Columbia" By nat act George N. Plants, william =
Huntington and fourteen other pers0ns named and
thelr successors were declared be body pOl1 and
corporate under the corporate nano mentioned, having
sneeesion captnle OF su aud being sued OF having
common seal, and generally OF doing and performing all
things relative - he object OF the Institution, lawful Tor
any individual body polite or corporate 90 do
The charter does not authorize the creation Of any cor
purnte stock capital nor docs IL contemplate the cN
isippce OF ANY other thar the deposits which may
made. corpOrators not required 20 contribute
anything. There are OF consequence no shareholders
Not word IN said in the instrument respecting any
dividends OF capital even OF profits TO others than
depOstOrs. Certainly no express authority ~ gwen
make dividends 10 the eorporators, aud We discover
nothing from which such authority can be inferred. Toe
dividends OF which return 10 required by the eighth
10 be made Ia Congress, are evidently those
spoken of in the fourth made 10 the depostors The
rules 10 Do applied tho construction OF corporate
grants well known. corporation created by stat
exercise no powers ana has NO rights except
such expressly given or necessarily implied 10
this case, FROM there being implication VI
pecunlagy interest In the cOrpOrdtOrs or any due TO
them from the corporation tne contrary Is expressly de-
carsd The institution having no capital stOck, what
ever liability, n any there may be to the corporatOrs
Dc satisfied out Of the profits made from the depos
lie. The charter further declares that tue income
OF all deposits shall be divided among the de
posOrs or their legal Representatives, not among the
depOstOrs and the cOrpofatOrs There is nothing IN the
that indicates that the excess for the benefit
of the corporators 10 IS to provide Tor the necessary
expenses OF the Institution authorized To be paid and
perhaps 20 raIse contingent tuna 20 meet possible
losses
We think the complainants have mistaken the nature
OF the corporation It is not commercial partnership
nOr Is 1t an artificial being the members OF which have
property interests In n. Nor Is strictly eleemOsyuary
lbs purpose rather to uInsh safe depository Tor the
money of tbose members o' the community disposed to
nrust their properly to its Keeping IL IL somewhat OF
the nature or such corporaODs as church wardens for
the conservation OF the goo OF the parish College
of surgeons Tor the promotion OF medical science or the
Society OF Anquafes Tor the advancement OF the stuy
OF Antiquities. Its purpose Is pablo advantage With
out any interest IN lis members The title OF ho act In
cooperating II Indicates It's purpose namely an act 10
incorporate national savings bank. aud the only pow
efs gwen 10 IL were those we nave mentioned, powers
necessary 10 carry Uu the only ayOwed purpose, which
10 enable 10 10 receive deposits fOr tine and Dene
t OF depositors. dividing the income or interest OF all
deposits amo9g Its dcpostOrs or their legal representa-
lives IL L. IKE many Othcr savings
poated In England and In this country during the last
sixty years, INTENDED only for prOvidcnt investment In
which the management aud supervision are entirely out
OF tho hands OF persons whose money stake aud
wnich are qnasbeneyoleut and most useful, because
they hold Out no encourage nent TO speculative deahE
commercial trading This the original idea oI
savings banks. Seratcheys Treatise on Savings Hanks
pass Grants Law OF Bankers, 07l, w1ere, In defining
savings banks. IL IL said the BANK derives no benefit
Whatever from any deposit or tho produce lhefeoIl
Such savings bAnKs England. under the statutes
Of George w e 82 and 20 aud "a Victoria. en- 81
Very many exist this country, and until recently
primary Idea OF savings Daak has been that IL an
Institution In the hands OF disintcrosted persons the
profits which, afer deductfug the necessary expenses
Of the business wholly 60 the benefit OF deposos,
In yldeuds I'm reserved surplus for their greater
security such Is corporation IN thls case aE re
garded by the Court Affirmed.
Mr. Justice etrong delivered the opinion