Blackfoot news. (Blackfoot, Idaho) 1891-1902, 1899-11-11
IMPORTANT DECISION.
HANDED Down BY Judge Rich In Case, O,
s'"sAa", cssssr aad frsment couatiss
Asalast G. E. Thum, Receiver. ete.

~
County, Petitioners. opiNloN
{. =. Thum, Receiver, COUNT.
Defendant.
While separate petitions have been
Fled by the above petitioners the issues
are practically the same and the prin.
eiples Of law which In Que case controls
VIII control 10 all, and for the purpose
OF the opinion, they will all he consid.
cred together.
The petitioners allege. generally
speaking, that during certain times
la said petitions named, the several
county treasurers OF the several counties
deposited large sums OF public moneys
with Z. Bunting q Co., Bankers. Tha,
thereafter {. Bunting & Co. failed aud
a receiver WAS appointed to take charge
OF the assets OF said bank. Tha, the
receiver Is proceeding to pay out and
distribute said public moneys, which il
Is claimed he has no rigb To do. and An
order IL asked for directing him Ia pay
said several sums over TO the petition
-rs.
The receiver has answered denying
SPECIALLY the material allegations In
The petitions aud pleading an cstopp.l
~ reason OF certain dividends having
been paid by the receiver aud accepted
as IL Is alleged by the petitioners.
The hrrt question whlch presents itself
for consideration in all these eases IL,
what WAS the status uf ihc-.. funds In
the bank rs deposited there hy the sew
eral ir-asnrerr. This question is no
longer an open question Ia the state. as
IL has BEEN settled by the laws OF the
state aud the decision 81 our Supreme
court. In the case referred 10 below.
the Supreme cour, has held, that public
money deposited by = public of GET Ia a
bank becomes u trust fund and not a
part OF the assets Of the bank. 1t ID
further held TINT no act upon the PR,
Of the treasurer. or party depositine
said public money or the officers OF the
hank can 10 any wsy change the siatu.
Of the fund 4, Is trust fund by virtue
81 the status uf the state, aud no public
. officer has power To make IL otherwise.
Ia other words the treasurer cnnnoi be-
GENE general creditor Of the bank a.
Individuals do when making deposits
......l.s.. q. s...1t satsf..G ,l...z.f .,... =,
we'll settled that Ii is not matter opet
foe discussion Ia this court, that uh.r
thes. public moneys were deposited IL
the bank 81 G. Bunting & Co.. they be
came trns, fund and did not and coul,
no; pass into the general arsei- Of thu
bank and that they must be treated sns
considered bs the receiver AS irus
funds aud not Hs part OF the hank
assets. STATE ". Thum, 81 Fac. ~
Revised Statutes OF Idaho. Section
BHI5 and 6aT5.
Counsel for receiver contend Will
much zeal tina, IL Is minus, to the gen
.rsl creditors IN treat these funds n
trust funds. that upon the other ham
they should bc permitted 10 pass int
I the general assets of the bank and b
/. distributed as general assets of tn
bsgk. tina, the county should simpl
pro rat. with the creditors OF the bank
hut this question has been fully me
!, and answered by the decision OF ih
court In the ease above referred to. !
fact Ii must necessarily follow that
: ,bi- fund Is a trus, fund the creditor
4 could not share In IL. The court In III
y above case smong other things sale
"The respondent. rs receiver OF sal
4 bank, can ss.ert no claim to said none
> which the bank could not itsclf asset
. II Il was still doing business. The cree
ltors Of the bank have no Interest
claim upon said money. The join
y wrong aud criminal act OF the agent
" the stat.. aud the officers vi the ban
does not rebound to the financial int
Is, OF the creditors of the bank. III
&c bank received the money In trust IL
n the true owner. the state. II must !
" regarded as n trustee" This cops'
,u,c- the law for this court. The Gre
i,o,s never could acquire any intere
in said money. 1t was simply tru
fund. and could not become part
the assets of the bank out OF which u
creditors OF the bank could share.
e. consider the matter positively SETTLE
~ by the decision OF our Supreme cou'
D. and by that decision II is needless
r. say this court Is bound.
Another point strennously urged
=. counsel for the receiver WAS that y
;, counties are stopped from claiming u
va money In question as trust 'uhu
i, re,,.on Of the fact that claims were III
by tho several treasurers, di'iuen
Maid and those dividends accepted up
rs the part Of the petitioners. II won
It's Is, "A sufficient answer to this con'ent'
's- To raw, IN tho first instance, that !
ne ,t ,ko ociitioners herein new