The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-08-01

chises and property. as well profits Whetner
this assumption 10 well founded or not-whether Tue
estate OF their nesae has any pecuniary interest
the corporate franchise and propery-can DO deter
mined only alter careful examination oil the oeieno-
Of Congress approved May a. 1870 entitled act to
Incorporate the National Union Savings BANK OF .hs
District OF Columbia" By that act George d. Plants,
William s. Huntington and fourteen othef persons
named, aud their successors. were declared 10 oe
BODY polite and corporate, under the corporate name
mentioned, having succession, capable Of SUNG anu
beng sued, Of having . common seal. aud generally
Of doing and performing all things relative 70 tue
uccy pol,tic or coTpora,e to DO Tue objec. OF tho
institution was declared In the fourth section by
that 1t was enacted that the corporation may re-
ceivs on depost for The use and benea. OF the de-
posters, all sums OF money offered Tor that purpose
aud invest the same IN the manner therein desoroed
The section then added, The income interest OF all
deposits shall be divided among the depositors or
their legal according 10 the terms OF
TERMS OF THE CHARTER.
The eighth section required AN annual report 70
posiIors tho total number OF deposits. amount In
vested In bank stock and deposited In BANK on IN
terost amount sesared by bank stock. amount az an
esate personal securities amount OF cash on
hand total divioends OF the year and annual
the institution all OF which 10 DO certned ana sworn
70 by the treasurer and five managers or more.
Section required the books OF The corporation
during their hours OF business 10 be kept
open Tor the ms pect0n aud examination OF the Comp
troer of the Currency or depostors.
The eleventh section enacted that tho corporation
should ME with the Clerk OF the Supreme Court Of
the District bond with security In the penal sum OF
$4,000, approved BY ono o. the juagss o! .ne court
titled such sum as the party may be entitled 10,
within thirty days after such deposit shall DO &c.
manded. winch bond might be sued by any depositor
person entitled alter such demand ana refusal 10
pay.
the give security and take an oath Tor
the faithful discharge of their duties and forbd any
officer director or COMMITTEES cnatgsa win sn~ , uu
thereof the same, except IL paying the ex-
peIses Of the corporation.
These are all the provisions that have any relation
the question considering. 10 to be noticed
that the does not authorize the creation OF
any corporate stock capital, nor does 1t conem-
plate the existence oil any other than the deposits
which may DO made The corporators are not re-
au.nse no Shsrsnoasr N. word is said in the
Instrument respecting any dividends OF capital or
OF profits to others than the depostors. Ger
tAinly NO express authority Is gwen 10 make divi-
dends tho .corporators, and we discover nothing
from which such authority can be Inferred
The dividends OF which return II required by tho
eighth section to be made TO Congress evidently
those spoken In the fourth made to the deposi
tors The rules to be applied 10 the CONSTRUCTION or
corporate grants are well known. A corporation
created by exercise no powers and has
sariIy implied. In this case iar from there being
mpicaton OF any pecuniary interest In the cor
porators any duty due to them from the corpora
tion the contrary expressly declared. The nsttu-
ton having capital Stock whatever liability II any
there may be the corporators must be sats1ed out
of tho profits made from the deposits. But the char
ter when comforting the power 70 receive money
deposit limits It 10 receiving Tor she use ana
benefit of the depositors" and directs now may be
invested II further declares that 1.-The income or
terest OF all deposits shall be divided among the de-
posors their legal Representatives. not among the
depost0rs and the corporat0rs IL Ia true the income
or interest rs be DIVIDED among the depositors,
according to the terms oil interest stipulated" im-
plying perhaps that the DIVIDEND may be less than
the inierssl received by the corporaon but thore IS
nothing charter that indicates the excess ID for
the benefit OIL the cofpora0a 70 ,os
paid. aud perhaps 10 iase contingent iund to
moet possible losses
NATURE OF SAVINGS BANKS.
After saying the bobd filed cannot be regarded
as u contribution by the corporators 70 the capital
stock, the Court proceeds thus
We think the csmpIaiuants have mistaken tho
nature OF the corporation. II ts not commercial
partnership nor Is II aracial being, the members
0i winch have properly Interests In IT, Nor Is II
strictly eeemosynary It's purpose IL rather to tur-
nish safe cepositary for the money OF those mem-
bers community disposed 10 intrust their prop
erty to It's keeping IL ~ somewhat OF The nature
Of such corporations church wardens Tor tho con-
servation OF goods oil the parish the College OF
Surgeons for the promotion medical tho
Society OF AntiQuaries Tor the advancement OF the
study Of antiquities us purpose u pooNc aavan 1
oil the act incorporating II indicates It's purpose
namely, act TO incorporate national say ngs bank
and The only powers given TO II were those we have
nt,oned, powers necessary TO carry out tie only
avowed pur pose, which was TO enable u TO receive
deposits Tor the and benefit OF deposiors.
dividing the income interest oil all deposits among
its depositors or their legal representatives. II ~
ike many other savings institutions incorporated IN
England and In this country during the last sixty
years intended only for provident Investment, IN
which the management and Supervision are entirely
out vi the hands 81 the parties whose money
is ut stake, and which quasi benevo-
lent and most useful because they hold
out no encouragement to speculative dealing or CON-
mercial trading. This was The original idea OF saw
iuRs banks (scratcney's Treatise Savings Banks,
passin. GRANTS Law oi Bankers, 57l, where. III do
inning savings banks, IL ~ said the bunk derives
bouoht Whatever from any deposit or the produce
thereby such are savings oanKs IN England under
the statutes OF George w., chap. 81 secs and 20.
and 27 Victoria. cnap. 81. Very many such exist in
this country, aoa until recently the PRIMARY idea
OF savings bank oecn that it Is an institution IN
the hands Of dsln terestea persons, the pronts OF
which, alter tho necessary expenses oil the
business in ure wholly the benefit OF deposltors IN
diviaends or IN reserved surplus, Tor their greater
security such the corporation In this CASE as ro-
parded by the Court. Affirmed.