The New York herald., 1879-07-29
SAVINGS BANK TRUSTEES.

THEIR PERSONAL RESPONSIBILITY FOR ANY USE
OF THE CORPORATION FUNDS EXCEPT SUCH
AS ARE EXPRESSLY AUTHORIZED BY LAW
ALBANY. July 2s. 1879.
Early in the present month Acting Superintendent
Lamb. of the Bank Department asked the opinion of
Attorney General Schoonmaker upon the laws
regulating the duties and powers of trustees of
savings banks. He stated that in the of the
examination of their books certain abuses had been
developed in the of the funds Of certain
banks, and specially asked the law officer of the
State if such Of the money of the depositors
authorized. and If not. whether tho improper
payments could be recovered from the trustees. To
these inquiries Mr.. Schoonmaker has replied at
some length. He says,-
Trustees acquire interest in or authority in re-
spect to the trust property personal to themselves
nor any power over it beyond the charter or
statutes under which they act The courts have
been rigid in enforcing these principles and in hold
ing trustees to personal accountability for abuses of
their trust. in assuming the exercise of powers not
funds property and in restraining corporations
to authorized acts. The trust. defined by law. is
to receive deposits to invest them only in the man.
prescribed and to return the principal and in
terest to the depostor. The whole fund IL pro-
tected by careful provisions Of law.
POWERS OF TRUSTEES.
For the purpose OF executing this trust every bank
is required to have board or trustees OF not less
than thirteen, who must elect from their number
president and two vice presidents, and also elect
appoint from their number or otherwise such other
officers they may fit (section 16 and the trus
tees acting officers OF the corporation. whose
duties require aud receive their regular and faithful
attendance at the institution authorized to
ceive such compensation as in the opinion of ma
jority of the board OF trustees shall be just and
reasonable. such majority to be exclusive of any
trustee to whom such compens alton shall be
given. And trustees prohibited from
ceivng pay trustees for their attendance ut
meetings of the Board. In addition to the compen-
sation of officers. clerks and attorneys expenditures
may be lawfully made from the income for the Incl
dental and necessary expenses OF the institution.
such furniture. rents ixes, fuel. light, station
ery watchmen and whatever may be requisite for
the proper management OF the trust property and
its protection Expenditures for these purposes fall
within the legitimate duties of the trust but neither
the deposits nor their income can be lawfully used
expended for other purposes.
WHAT THEY CANNOT
They cannot be used ''to pay trustees compensa-
tion tor services upon committees" nor "the chair
man OF regular standing committee for services
as trustee in acting rs such chairman nor "to pay
for annual supper entertainment for the trus-
tees "to pay for O service of plate donated to
local organizer of railroad enterprise:" "to
make contributions for charitable, benevolent
sanitary objects; nor to make ''gratuitous appro-
priations to the widows OF deceased oficers" nor
Legislature to pay interest" on illegal loans;
to make gratuities officers for past services who
had been paid regular salares; to lobby agents
"to procure general legislation relative to savings
banks" Payments from the money of depositors
for al such purposes clearly Illegal and render
the trustees who authorize or consent to them per-
sOnally liable for the diversion of the funds.