The San Francisco call., 1895-12-18

trust company has not gone into the market
of buying up passbooks on speculation, and
the argument OF Mr.. Spelling, based upon that
assumption of fact, need not be answered.
Neither the trust company, nor any OF It's
officers or attorneys, has at any time pur.
chased a single passbook, although. If it had
been disposed to take advantage OF the m1sfor-
tune of the poor depositors, 1t could readily
have done so.
The 26O0 depositors who made their assign
ments, aggregating S120,0O0 or thereabouts,
did so with the object in view of enabling the
company to make the collections on their be-
halt. The assignments were assignments TOR
collection. We annex hereto form of
assignment, and also form of the receipt
given to every one OF the depositors making
the assignment showing clearly that the de-
positor is entitled TO receive the amount col
lected. less per cent of the sum or sums that
may be collected or received, whether by way
of dividends or otherwise, which amount shall
include all attorneys fees and other costs. 1t
is thus evident that no purchases were made
for speculative purposes.
A reasonable compensation was agreed upon
for services rendered in making the collec-
tions A banking corporation within the ex-
ercise OF its legitimate functions as banking
corporation certainly may take accounts for
collection, but these assignments were taken
in its capacity as trust company, and by the
power conferred upon it by its articles of in
corporation, which further provide that the
purpose for which said corporation is formed
is Ito accept and execute trusts of every de-
scription, may be committed to it by any
person, executor. administrator, guardian,
trustee, receiver or by any corporation, or by
any court OF this or any other State, or of the
United States, and in legal manner to
attend 10 the management and settling of es-
tates, guardiaaships, assignments. receiver
ships, or as trustees, agents or attorneys, and
to attend to any and all manner of trusts"
Having complied with every provision of the
law relating 10 trust companies it is clearly
apparent that 1t is empowered to execute a
trust OF this description-namely, to take an
assignment of these deposits and collect the
same, paying the amounts so collected to its
aSsignors, less unreasonable charge for services
The statement that the trust company dis
missed the action brought by it against Win
terburn and others because its power to take
those assignments was in issue has no founda-
ton in fact. Neither the company nor its at
torneyS at any time had any doubt as to the
ultimate success OF the action. After the Win
terburn suit was brought it will be remem-
bered that an application was made by the
sionerS requesting said board TO direct the
board of directors of the Peoples Home Saw
lngs Bank TO make an order calling in the
paid capital. The Bank Commissioners COM
piled with the request made and subsequently
a call was made by the board of directors of
the Peoples Home Savings Bank for the un-
paid capital. In order that no legal obstacle
should be placed i'll the way of the collection
of the call we dismissed the action. Knowing
that large amount of the stock of the Peoples
Home Savings Bank was held by non-residents,
we were OF the opinion that the collection of
their unpaid subscriptions would be facii-
tated by the making OF the call, and if neces-
sary, by bringing the suits in the jurisdiction
in which such stockholders might be found.
To thus expedite the collection of such unpaid
subscriptions, and for no other purpose, the
N1nterburn suit was dismissed, it being the
object OF the trust company 10 realize the
largest amount on the claims assigned to it in
the most expeditions and economical manner.
That the California Safe Deposit. and Trust
Company holds those assignments in its
capacity and function a trust company, is
evident from its report OF July l, 1895, to the
Board OF Bank Commissioners. In that report
these assigned claims do not appear as part
OF the assets of said company, but do appear
in the statement of the trust resources.
As is apparent from the form Of the agree
ment made, the trust company is invested
with a legal title to the deposits and to call
claims, demands, deposits and debts due and
payable from the Peoples Home Savings
Bank TO the depositors so making the assign
ments. Thus being vested with the legal title
OF the claims so assigned, the company is en-
titled to collect the same from the Peoples
Home Savings Bank and the assignors are
bound by the collections made by ii, while the
company is bound by its contract made with
the depositors. That assignments may be
made in this State for collection, vesting the
assignee with the legal title to the claim so as
signed, is elementary.
See Grant VS.. Heverin, decided by our
Supreme Court, reported " CAL page 263.
There it was said that "When the legal title
to anything in action is vested in an assignee,
the debtor is completely protected by the as
signment against the assignor, and such
whatever collateral agreements have been
made between him and the assignor respecting
the proceeds" Head notes)
See also Pomeroys Rights and Remedies, sec.
132, and authorities there cited. Respectfully
submitted,
GUNNIsoN, BOOTH & BARTNETT,
Attorneys for California Safe Deposit and
Trust Company.