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 course of the
examination of their books certain abuses had been
developed in the management 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 II not. whether the 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
any power it beyond the charter
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 of powers not
conferred in the waste illegal application of trust
funds property and in restraining corporationn
to authorized acts The trust defined by law. is
to receive deposits to invest them only in the man
ner prescribed and to return the principal and in
terest to the depositor. The whole fund Is pro-
tected by careful provisions of law.
POWERS TRUSTEES.
For the purpose OF executing this trust every bank
is required to have board trustees OF not less
than thirteen, who must elect from their number o
president and two presidents and also elect or
appoint from their number or otherwise such other
officers as they may fit (secton ICY, and the trus
tees, acting officers OF the corporation, whose
duties require and 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 compensatio shall be
given. And trustees are prohibited from
ceiving pay trustees for their attendance at
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
such as furniture rents. tixes, fuel light station
cry. watchmen and whatever may be requisite for
the proper management OF the trust property and
it's protection. Expenditures for these purposes fall
within the legitimate duties of the trust, but neither
the deposits nor their income be lawfully used
expended for other purposes
WHAT THEY CANNOT
They cannot be used 'to pay trustees compensa-
tion for services upon committees" "the chair
man of regular standing committee for services
as trustee in acting as such chairman;" 'to pay
for annual supper entertainment for the trus-
tees; nor "to pay for 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
to pay costs and expenses to get bills through the
Legislature to pay interest illegal loans; nor
had been paid regular salaries to lobby agents
to procure general legislation relative to savings
banks" Payments from the money of depostors
for AL such purposes are clearly illegal, and render
the trustees who authorize consent to them per-
sOnally liable for the diversion OF the funds.