Court Opinion

ID: 9763924
Source: CourtListenerOpinion
Date Created: 2023-08-29 03:01:22.928577+00
Date Added: 2024-06-11T07:29:51.247208
License: Public Domain

Mr. Justice Smith,
joined by Mr. Justice Hamilton, dissenting.
I respectfully dissent from the majority holding that the State Banking Commissioner has the power under Article 881a-(1) through 881a-(69), Vernon’s Annotated Statutes of Texas, to approve or disapprove the opening of branch offices by a state chartered building and loan association. The branch offices involved in this suit were designated by Southwestern in a written notice and delivered to the Commissioner on January 7, 1954, and the Commissioner declined to approve the six branch offices at specified locations within Harris County, Texas, the domicile of Southwestern. For several years prior to January 7, 1954, the State Banking Commissioner was of the opinion and had taken the position that he did not have authority to approve or disapprove the opening of branch offices, and such was the reasoning behind the Commissioner’s declination. The Commissioner declined to grant his approval, because, as he said, “approval of this office was not necessary.” I do not agree with the Commissioner that Southwestern was under a duty to secure his approval for the opening of such public branch offices. There is no statutory enactment authorizing the rules and regulations promulgated by the State Banking- Commissioner and Loan Section of the State Finance Commission on January 29, 1958, which have for their purpose the requirement of such approval before a duly state chartered building and loan association may open branch offices. The majority holds that statutory power to approve or disapprove branch offices is to be read into the statute, and, therefore, the State Banking Commissioner by implication has such authority. With this I do not agree. Where án administrative official is seeking power, that power is not to be implied, but rather must appear in clear language in the statutes. See Scanlari v. Home Ins. Co., Texas Civ. App., 79 S.W. 2d 186, er. ref.; Commercial Standard Ins. Co. v. Board of Insurance Commissioners, Texas Civ. App., 34 S.W. 2d 343, er. ref.; Board of Insurance Commissioners v. Texas Employers’ Insurance Association, 144 Texas 543, 192 S.W. 2d 149; Law*427yers Title Insurance Corporation v. Board of Insurance Commissioners, Texas Civ. App., 207 S.W. 2d 972, wr. ref. n.r.e.; Board of Insurance Commissioners v. Guardian Life Ins. Co. of Texas, 142 Texas 630, 180 S.W. 2d 906; Opinions of Attorney General: 1940 No. 2049, dated March 27, 1940; No. 0-5926, dated March 17, 1944.
There is nothing in Article 881a (1), supra, that even intimates that the Legislature intended to grant the State Banking Commissioner the power and authority to approve or disapprove the opening of branch offices by duly chartered building and loan associations. The State Banking Commissioner does not affirmatively claim statutory authority to require his approval prior to the opening of branch offices, but, on the contrary, he alleged as a defense that his authority was created and established by the promulgation of certain rules and regulations on January 29, 1958. If the Legislature had so desired, it could have easily provided for such approval, but it did not. The majority opinion is, through its opinion, enacting legislation which the Legislature, the only law-making body, has refused to enact. The Legislature has not seen fit to enact legislation requiring approval or disapproval of the opening of branch offices of building and loan associations. Our statutes prohibit the opening- of branch banks, but no such prohibition exists by statute with reference to building and loan associations. The State Banking Commissioner exercised his statutory authority when he granted the charter to Southwestern to conduct its business in Harris County, Texas, and to maintain its principal office in Houston, Texas. The objective of the Legislature in passing the building and loan statute was to enable associations to obtain a charter to conduct business in the neighborhood (in this case Harris County). We do not have a question as to whether or not petitioner has a right to do business in Harris County. The position of the Commissioner, and approved by the Court of Civil Anpeals, and the majority obviously seeks to limit the area in which an association has the right under its charter to operate. At the time Southwestern made application for its original charter or articles of incorporation, it submitted facts, data, and statistics relating to all Harris County and the Greater Houston area. Therefore, if the Commissioner performed his duties, and I necessarily assume that he did, the investigation made before granting the charter was of a “neighborhood” that included such area. The granting and issuance of Southwestern’s charter, assuming that the Commissioner properly performed his duties in connection with granting charters to building and loan associations, was in any event the result of a determination *428that Harris County could adequately support a building and loan association in addition to those already chartered and located in Harris County. It is argued that the Commissioner necessarily by implication has the power he here seeks and that to deny him such power would enable a loan association to locate branch offices in a particular locality in competition with an association chartered to maintain its principal place of business, in the same particular locality. I cannot agree that the location of branch offices in the manner sought by Southwestern will bring about chaos in the building and loan industry, and will result in unwholesome competition. Charters have been granted and branch offices established for some twenty years. The branch offices were granted without the approval of the Banking Commissioner. The limited character and operation of these branch offices is described in the pleading filed in this case by Southwestern. A branch office may not become a principal office. If the Commissioner properly performed his duties no other building and loan association operating in Harris County will suffer financial injury. I assume that he will not grant original charters to more building and loan associations to be located in Harris County than necessity and good business warrants. I contend that when the charters have once been granted, it was the intention of the Legislature to leave the matter of establishing branch offices to the good business judgment of the officers and directors of the building and loan association. The Commissioner has already approved the financial structure of the association, and by granting the original charter has placed his stamp of approval upon the character, ability, and integrity of its then officers and directors. Since the granting of the charter no disapproval of Southwestern or its personnel has been registered by the Commissioner. If in the opinion of the officers and directors of Southwestern, the opening of branch offices will afford a service to its customers and members and will be an overall improvement in its operational techniques, then why should the Commissioner have the power to limit the authority originally granted? For some years Southwestern has been doing-business in the six areas where the branch offices are located. It has share customers in each of these areas. It has men working in each of these areas, daily, weekly, and monthly. It advertises in each of these areas. The opening of branch offices does not need'the supervision of the Commissioner. The branch offices are of special convenience to the customers. Branch offices are necessary to adequately carry out the purposes for which the association was chartered. The purpose of a branch office is to serve the customers and improve the economic and operational practices and policies' of an association in its business. The offi*429cérs and directors determine the question of whether or not a branch" office is making money. If it does not make money, that fact will be ascertained first by the association’s officers and directors. The exercise of sound business judgment would lead to the closing of the branch office.
The trial court found that the Commissioner has no power under Article 881a, supra, to require his prior approval for the opening of branch offices. I would affirm the judgment of the trial court, and reverse that of the Court of Civil Appeals.
Opinion delivered January 13, 1960.
Rehearing overruled March 2, 1960.