Indian chieftain. [volume] (Vinita, Indian Territory [Okla.]) 1882-1902, 1897-06-24
rauar Eunos N sAMNos eANks



rhey are Guarded By he law for ths
Bcnenciary's Beneht.
The trust funds placed in savings
benks cause a great deal Of trouble
sometimes. The case Of Charles w.
Palmer, the late contractor Of Yonkerss
brings this subject up anew. Mr.. Palm
er in 1890 placed In the Peoples savings
bank OF Yonkers the sum Of $1,000. in
trust for his wife; also certain amounts
for two Of his children. From time TO
time as he needed money he drew from
these trust funds without the consent
Of the beneiicinries. Upon the death OF
Mr.. Palmer the benefciarics 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. Justice
Martin +. Keogh, of the supreme court,
] handed down n decision holding that
the several deposits vested in the bene-
ficiaries the money so deposited, and
that the executors must turn over the
original trust money, Notwithstanding
the fact that Palmer used II during his
life.
John p. Townsend. president Of the
Bowery savings bank Of this city, in
speaking OF this case told a Tribune re-
porter that he considered the decision
good law. He said that in the Bowery
savings bank, which had at the present
time about 10000 open accounts, there
were at least 900 placed there in trust.
lndealng ngwith these accounts the banks
4. - A.
could not draw the money during the
life of the trustee. Mr.. Townsend
said that the trust accounts were usu-
ally restricted TO members Of the same
family. The bank did not encourage
promiscuous or miscellaneous trust de-
posits, and IL would accept such only in
exceptional cases. The motive for cre-
nting trust deposits differed with the
circumstances governing the case.
Sometimes a father az the birth OF a
child would start q trust account for
the baby, so that when IL grew TO its
majority II would have little sum Of
money 70 help It in getting married or
starting in business. A case was mem
toned where fond mother, at the birth
Of her first baby girl, had started max
ing a deposit each year OF ten dcllars
to the baby's credit, so that when the
time came for her 10 get married she
would have something to buy her
trousseau with. When the girl was
well in her teens she found out in some
way that this money had been deposit
ed for her. One day she stole the bank
book and went to the bank 20 draw the
money, but was chagrined TO find that
the bank refused to pay 10 any one ex-
cept her mother.
Sometimes, Mr.. Townsend said,
husband who was making money would
deposit sum In trust for his wife, with
cut her knowledge, 30 that at his death
she would be sure OF that amount out
side Of anything that his estate might
be worth when he died. At his death
this money would at once be paid 10
her by the bank, without waiting for
legal settlement of the estate, and there
was a saving of surrogate's fees. The
amount Of money deposited In trust ran
all the way from ten dollars up 10 ST..
900, the limit fixed by law regulating
the amount a savings bank may accept
from any one depositor.
Upon the death Of trustee the bank
pays the money at once TO the benef.
ciary unless IL has been notified Of some
legal transfer of the same into some
other channel. When there Is litiga-.
tion over such accounts, the hank has
only TO make a statement OF the ac-
count and theRSsk the court what shall
be qq8e with t. This lets the bank
~edt OF the affair and leaves the benefi-
ciary and trustee or his executor TO
fight II out between them.-N. Y. TriS-
une.