New-York tribune., 1903-03-31
CAN'T BE TRUST COMP-INY.
I'm portant Decision That Sarings
Bank Nust Stay Such.

decision affecting the organization of trust
companies by officers of savings banks vas 1eI
Newark yesterday by Eice-t 'haH'ei!"T Pltney-
1t continues an injunction restraining William H.
White and Joseph H. Dodd officers Of the Bloom
field Savings Institution, from completing an Of
ganization of the Bloomfield Trust Company- The
temporary injunction was granite by Tho c':Tt ~
January behalf of Mrs. Mary g. Hdrr"i'- -
Bloomfield who alleges that in tn" summer W
1902 the defendants officers and managers 20 80
Bloomfield Savings Institution organized rher-"ive'
into trust company. Of which they b".rT"- 0l-
rectors and officers; that they opened banking
office in the roo n of the defendant corporation AMI
conducted its business as d trust company. and
that in December they took proceedings uudST tEs
act of April g. 1892 to wind up III. savings cor
poration and distribute its assets. not nS!ud!HS
its goodwill among Its depOsitoTs- Inc NIcc-1A
ceOr says in mis- opinion:
have said the question is Of great Importance,
r n0f SO uGa g 20 ' Ind t TSciIT 10 thrs ri,lzers
who believe the savings bank y of this state
and. indeed. of most other States %. tn .-',.,',
it tends to promote industry. thrift aud ,'If.Hi-
ment among what are known ~ l, ,-r,',r, -,,t.
repress disposition to ne LHL away 1k,IIa 1k ,Ia
fallacies OF socialism ara a@l,aL'i~ @ ~ -. a ~
GIsIC az anu b y, pIIIs+i,, i rfgIlr here t1r II
is quite certain the project of the a"ts1Gft- -
convert the Bloomfield Savings ln~utUiign H'o a
trust company cannot be arrested oy LEGAL Tr0.e>S
either at the suit oI the AttGrhsE zen, ~
citizen. then it follows Intt y T. Nun 9 T67
IN tn StatC wind up their several uISti' ,&i.S. rs
viz
assets not including IHA goodwill. ana Iy fhi5
simple process of the organization tm"1S mem
selves OF a trust company. to p' I"'a'-l ~ u
very building and managed by TN" very sE1S ON
GERS as those of expiring savings inst r'IIloE
appropriate themselves the goodwill thereof
amounting in vaue in the aEer"R.'t" t' many
n1iIIions Of dollars. and al tho Pragt-
caIly destroy the whole system.
The court points out that the savings I.r.I= are
virtually provident corporations for t' p'"-. and
that the safeguards and r"str~ti"ns iiRi' tho IN
yestmentz of such deposits that almost ah-'!u-
safety exists He agrees with tn" complainant thar
tn convert such deposits trust COMPANY Hnd"-
the act of 1902 would j,oIssrIizs tH.n- Alter dis
,,r1ssfng the contention 10y the d"fend4Nts fhaf Il
breach of trust not involved IN the conversion
plan the Vice Chancellor says
l am unable to assume i'm 'h" "a" ~ i.r s!mi.-
ted facts in thu, ease that rh' ftndar'- "rNLt.
INT Thav Intended 10 wind w rEN savings '~'l.i-
tiou wheu company plan We l.t'I&
was absolutely ! should Hk' g. D. H-..tls
al time in the same ,''t'' +i'''
Same officers Taking all TIN, allegations am f'.-
tentfon Of the defendants that th" wIntIrE i' p.
the savings institution not in their n1iH~ al
from the start
The Yiee-ChanccIIor SAYS in sndr- his "i'' '.''
Tho result reach Is thar th"~c t.t ADAMS
Of a benevolent and charitable nature ~1l'tt' 20
held hy trustees OF IN" h''~ll'.' e.. IS
their nIin and imperative, duty i~ r' Vf'S'T.' Pr
mote and foster. with reasonable E't t"' '....' '
tho trust and u avoid aSSrImHE any f'l -
- destructive thereof IN'' d''~.'t
the corporate entity "a hrS t'h W }THS -i.. ~
sppTOpriationS themselves 81 ~ S''riN
an6ther unless Justified by leeIslIc"'. Tn " TO-
transaction therefore urn'H Wtl ~"ffl'd prov, F-.
must he held 10 he prin1t fdtfF N"ll 'l ' ''''7'
and therefore subject 10 rNFirw iu Tho '.'3.'-