Opinion ID: 1473033
Heading Depth: 1
Heading Rank: 2

Heading: Charge of the Court to the Jury.

Text: On the question whether unearned premiums had been paid, the court charged as follows: You are advised that stock premiums, when received, became a part of the surplus account of the bank, and that they might properly have been used to fill the reserve account of the bank, or to pay the expense of securing new business, thereby releasing considerable amounts of net earnings for the payment of dividends, but that such stock premiums could not properly have been used for the direct payment of such dividends. In determining, then, whether the dividends were warranted and were paid out of the proper funds, you may take into account these several rules applicable to the various funds of the bank. This being the law of the case, there was no issue of fact for the jury to decide relative to payment of unearned dividends. For, on the theory of the law as stated, the uncontradicted evidence was that the dividends in question had been paid out of earnings. It was error, therefore, to submit to the jury the question whether the dividends paid had been earned. C., St. P., M. & O. Ry. Co. v. Kroloff, 217 F. 525 (C. C. A. 8), and cases cited. We think it unnecessary to discuss the other numerous matters covered by the assignments of error. For the reasons which we have stated, the judgment as to each of the defendants is reversed.