Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1913-09-08
FIRST OF ITS KIND.
AssoCiatoJusticeS
ciides Interesting Question
In Connection with Affairs Of
The PiiIsfieId Trust Co.
First Interpretation by any Court
OF Law Point Involved.

An interesting question has just
been decided by Associate Justice Al
bert NJ. Spear in connection with the
affairs OF the Pittsfield Trust Co,
which went into the hands of re-
ceiVer, III May last.
Judge Spears ruling is the first in
depreciation by any court of the law
passed, in 1911. requiring trust COM
panios to set apart portion Of their
assets as security for the payment Of
their savings deposits.
Several persons whose note were
held hy the bank were also deposit
tors. sahe in the time and some in
the check department. Some of the
notes held were among the assets set
apart for tie benefit Of time deposit
4 rs and it was cls timed that deposit
tors had the right 10 offset their de-
pasits against their notes, as HIS been
tie practice in similar eases previous
70 the passa &c OF the law IN question.
Judge spear ruhd however, that
such allowances might lessen the
amount of security held by the time
denaSitors who had no notes in the
bank, and disallowed all such claims.
In order that depositors indebted to
the bank be ipccnVenienced as little
as possible the Receiver Was ordered
To postpone collection Of a portion of
said notes equal To - per cent. Of such
DEPOSITS until further order Of court.
provided such postpoRement was re-
questeG By the latter ruling deposit
tors desiring it will have the practi-
cal benefit of an immediate offset of
- per cent. of their deposits without
endangering the rights of time depcs-
TORS.
At the hearing William L. Pushor,
the receiver was represented Ey Will
Hanson. Burleigh & Mclean, and va
rious depositors who sought offsets
were represented by Manson & Cool
idge of Pittstield, F. e. Harrington,
Esq. of this city, and Judge Harrie
L. Weber of Auburn.
Tire fun text of Judge Spears de-
cree IS as follows
STATE OF MAINE.
Somerset. IS. If the Supreme Judi
ciai Court: In Equity. Robert F.
burton. Bank Examiner. vs.. Pitts
field Trust Co. Interfocutory decree
rs To Offsets Claimed.
hearing was had upon the first
prayer in the petition of William l..
Pusher, receiver, dated July %. 1913
at the court house in Augusta, on the
25th day of August, 1918. at 10 o'clock
A. NJ, and by adjournment on the
29th Gay of August. 1918. at 10 o'clock
A. NJ, and it appeared that notice had
been given to all parties Interested as
ordered.
After hearing the parties and their
witnesses il was ordered, adjudged
and decreed that no deposits, either
savings deposits, SO called, or demand
deposits. be offset against any notes.
whether the same be included in the
segregated assets or not.
II is further ordered that when any
maker or surety upon promisory
note payable to said company, who at
the time Of the appointment of such
receiver mad deposit in said Trust
Co, requests in writing that the diVi-
dends on such deposit when declared
he arDlied on said note, and pays
SIM equal to the amount due on said
note. less Is per cent. of such depos-
it. the receiver IS instructed To post
pone the collection of the balance of
said note until further order of court,
and to apply all dividends when de-
clared thereon.
\. NJ. SPEAR,
Justice Supreme Judicial Court.