New-York tribune., 1896-11-22
TRUST FUNDS IN SAYINGS BANKS.
HOW STRICTLY THEY ARE GUARDED BY
THE LAW FOR THE BENEF1C1-
ARY'S BENEFIT

The trust funds placed in savings banks cause
greet deal Of trouble sometimes. Inc case Oh
Charles W. Palmer. the late contractor, OF Ionkers'
brings this subject up anew. Mr Palmer III lo'V
placed in the Peoples Savings Bank OF fonkers
the sum Of $1,000 in for his wife; also certain
amounts for two of his children. From time to
timn as he needed money, he drew from these
trust funds without the consent or the DeneHclaries
I-non the death OF Mr.. Palmer the benehciares Of
these trust funds brought an action against the
executors Of the estate to recover the full amount
OF money deposited by Mr. Palmer in trust for
them Last week Justice Martin +. Keogh OF tho
Supreme Court handed down a decision holding
that tn, several deposits vested in the beneiciarieS
the money so deposited, and that the executors
must turn over the original trust money. notwith-
standing the fact that Palmer used 1t during his
life.
lain = Townsend president of the Bowcry Saw
ups Bank OF this city. In speaking of this case tod
n Tribune reporter that he considered the decision
good law lie said that In the Bowery Savings
Bank which had at the present time about llS~'
open accounts there were at least loO paccd 'here
in trust. In dealing with these accounts the bank
knew cnly the trustee Thu beneficiary could not
draw tho money during the life of the trustee Mr.
Townsend said that the trust accounts were usually
restricted to members Of the same family The
bank did not encourage promiscuous or miscellane-
Gus trust deposits and 1t would accept such only IN
exceptional cases. The motive for creating trust
deposits differed with the orcumstd noes governing
the case Sometimes a father at the birth or enid
would start n trust accour. for the baby, so that
when il grew to its mnjority 1, would have little
sum OF money 10 help II in getting married or start
ing I'm business a case mentioned where
fond mother Mt the birth OF her first baby GIRL had
started making a deposit each year OF $40 TO the
bahy's credit so that when tie time came Tor her
to &c, married she would have something 10 buy
her trotIsseau with When the girl was well in her
teens she found out in way that this money
had been deposited for her. one day she stole the
bank book and went TO the bank 10 craw the money
but was chagrred to find that the bank refused TO
pay 10 any one except her mother
Sometimes. Mr. Townsend said, husband
who was making money would deposit a sum In
trus, for his wife without her knowledge. so that
at his death she would be of that amount out
side Of any thing that his estate might be worth
when he died At his death this money would at
once be paid TO her by the bank. without waiting
ror ,gal scttomo ut OF the estate. ana there was
saving Of Surroglte's fees. The amount OF money
dorositoa in trust ran all the way from SO up 70
Z, DO The limit fixed by law regulating tho
amount 4 savings bank may accept from any one
dcp0sitor. -, ,, ~ ,,
t'uon the death OF trustee the bank pays the
money ni once the beneficiary unless 1t has been
notified OF some lrLal transfer OF the same INTO
.otre other channel When there IS litigation over
such accounts, the bank has only 10 make state
men, 81 the account and then ask the court what
shall hc done wiki il. This let's the bank out OF the
affair and leaves the beneficiary and trustee or MS
,x.etfor % fight IL out between them.