Norwich Bulletin Newspaper, April 30, 1914, Page 7

MoHICAN COMPANY 24c - 20c -~.13c _ MONEY-SAVERS FOR THURSDAY AND FRIDAY 11b. LIVER. .. 5 o macon:: [ 15¢| FRIESEL FISE, ROUND STEAK 166 | Steak SALMON, Ib. . . 15¢ [BEr At Steak BLUEFISH, b, . 10¢ LAMB CHOPS, Ib 1. | Steak COD, Ib.. ..... 12¢c Shoulder 12 (C | Fresh HADDOCK, Ib. 3c POT ROAST, Ib. . +&2% | £/0} HERRING, Ib... 7e Fresh SHOULDERS 131 BUTTER FISH, bb... . 10c Ib. . 2C | Large MACKEREL, ea. 25¢ € Process Table BUTTER Fresh EGGS R AR dozen ............. 23¢c Mild White CHEESE Fine Apple BUTTER Fresh Picked Yellow ONIONS Fine CUCUMBERS STRING BEANS ek <. - o e 10 i ST L Ui e A5G Head LETTUCE RHUBARB Alaska SALMON Soda - Milk - Oyster CRACKERS, Ib..... 7%c RICE FLAKES package ..... 5c¢ PEA BEANS, 3 gts... 25¢ Salt MACKEREL Gfor .. s 250 Can CORN, PEAS and PUMPKIN ...... 23c 10c Worcestershire SAUCE | PR e {5 1b. pail JELLY..... 25c Mustard SARDINES RAISIN DAY APRIL 30th is Take home a Loaf RAISIN BREAD Paul Revnolds a bookkeeper in Plain- field has been confined to his home in Hamburg for the past week by ill- ness. Dead Easy Then. Some people can’t tell the differ ence between mushrooms and peison- ous toads stools until the day after eating them. DIED. BROWN—In Sprague, April 29, at her late home, Pautipaug Hill, Harriet J. Smith, wife of Leander Brown. Notice of funeral hereafter. Bachelor girls outnumber marriage- able men in San Jose, Cal, three to one. twelve months ahead From the Manchester, England, Dispatch:— T is only after mature reflection that one is able to grasp the importance (19 I of the enormous improvements em- bodied in the Cadillac chassis. We have been so long accustomed to believing and being told that the English car is indisputably ahead of any other construction in the world that it comes ds something of a shock when we are faced with a car successfully embodying features which are as yet in the merely ex- perimental stage in British car builders’ work- shops. On the Cadillac car will be found an inter- esting example of a two-speed back axle, and we may here remark that the construction has been thoroughly tested and found serviceable and reliable, both in the United States and in Europe. Tkere is no element of experiment about the work; it has proved itself. The pressing of a button throws the low or the high-gear on the axle into operation as re- quired, and that is all about it. They tell me that, as a test, the car was driven from Lon- don to inburgh with a full load without handling the gear-change lever at all. Press- ing the button was all that was required. Having admired the axles to our heart’s content, we are at liberty to examine the many other features of the Cadillac chassis, which galls for close examination. There is the self- starter, which will start the engine a thousand times without a miss. There is the neat little mechanical tyre pump. This is one of the finest chassis, taking all things into consider- ation, that ever left the United States just as an ordinary proposition. All her improve- ments are practically thrown in. I should term her the push-the-button car. So far as ordinary practice is concerned, she is equal to any. Her unique improvements have placed her twelve months ahead.” The A. C. Swan Co. } s DISTRIBUTORS FOR New London and Windham Counties | aside ‘for { the other | court of equity | creditors upon an equality. NORWICH BULLETIN, THURSDAY, APRIL 30, 1914 The supreme court of errors, sitting here for the trial of other matters, handed down its decision on Wednes- day afternoon in the case entitled Nor- ris S. Lippitt and others, bank com- missioners, vs. the Thames Loan and Trust company, thereby giving answer to numerous vital questions concern- ing the receivership and the winding up of the affairs of the bank, which were asked by Receiver Charles F. Thayer and hoters. The bank was put under a restrain- ing order on April 16th, 1913, and on June 27th the court appointed Charles F. Thayer as receiver, and he qualified on July 34, 1913. Opinion by Judge Wheeler. The opinion is written by Judge George W. Wheeler. As preliminary to the opinion given in the decision, Judge Wheeler makes these statements regarding the trust company: The Thames company was chartered in Connecticut in 1869, and since 1903 has done in Norwich a general bank- ing and trust company business, tak- ing general and special deposits, and has also conducted a savings depart- ment in which it had three classes of savings dopositors, called a savings department, a home department, and a school savings system. Its comn:ercial deposits were evi- cdenced by passbooks and certificates of Geposit, and its savings department deposits by passbooks. All of the business was conducted in the same rooms, and by the same persons, and all moneys were paid in and out over the same counter, and by the same clerks, and when paid In moneys were mingled in the same till or drawer. Moneys received in the commercial department were entered In separate books and so far as the bookkeeping was concerned kept separate from the savings deposits. Moneys received from tha depositors in the three classes of the savings department were entered in separate books and an account kept with each depositor. Money Shown en Books. On April 16, 1913, the credit balance in the savings department was $589,- 53659, and the company had set aside for the savings depositors assets ag- gregating $508, .93. The balanc $81,035.66, was uninvested and in the general fund. The appraisal value of these Is $399,225.43. The appraisal value of all other assets is $32 7 The total liabilities are $884,185.35 The Decision, The following is the decision: The questions on which a ice is asked, together with the special facts relating to them, are sufficiently stated in the opinion, which follows in part: The application of the receive joined in by &-number of the parties in Interest, asks the advice of the court upon many questions arising in the course of the receivership. Those which we will discuss first, concern the relation of the Thames company to its various classes of de- positors and the relation of these classes of depositors to each other. Two Questions Asked. ! Among the questions upon which our advice 1S sought are these: Are the savings department depositors en- titled to be paid out of the assets it savings deposito: and if these prove insufficient are they en- titled as to the balance to share in assets? And js the said sum of $81,035.66 to be included in the vestments set aside for savings depositors? Upon insolvency of a corporation, a will, unless the rules of law, or statute law, forbid, place all Certain priorities are generally recognized in | the distribution of the avails of the in- solvent estate. The expenses of ad- ministration are first paid, and all taxes have priority of payment. Fre- quently the order of payment of cred- itors is prescribed by statute in whole or in part. Our statute so prescribes in thé case of a bank or trust company in the hands of a receiver. Statute That Applies. G, S. Section 3482, provides: “The avalils of the property of any bank or trust company in the hands of a re- ceiver or recelvers shall be appropri- ated ratably to the payment of (1) the charges and expenses of settling its affairs: (2) the circulating notes, if any; (3) all deposit: (4) all sums which have been subscribed and paid in for its stock by the state or the school fund; ;(5) all other liabilities; and the surpius shall be distributed among the stockholders. This statute has been in force since 1837, long prior to the granting of the charter to the Thames company. Under it all deposits of a trust com- pany, whether in a savings or a com- mercial department, are to be treated alike and payable from the avails af- ter payment of the charges and ex- penses of settling the receivership (in- cluding taxes) and of any outstanding circulating notes. Savings deposits and commercial de- posits are referred to as deposits in the .statutes in force at and prior to the granting of its charter to the Thames Co, Our statute In treating all depositors alike, whether savings or commercial appears to have followed the general rule of the law. People vs. Mechanics & T. S. Inst, 92 N. Y., T; First Nat. Bank vs. Armstrong, 39 F., 231; Receivers of Corporations, Ghuerick & Baaker, (2nd Ed.) 339, 340. Thames Co. Charter. Unless repealed or modified by the charter of the Thames company or by subsequent statute, sec. 3482 provides the method of distribution of the avails of the company in the hands of the re- celver. | The charter authorizes the company to accept and execute all trusts and receive money on commercial or sav- ings deposits, Section 5 provides: “All the capital stock, property and estate of every kind belonging to said com- pany shall be and stand charged with the fulillment of said trusts, and the payment of sald deposits, trusts and other funds, as the first, and prior lien thereon, in case of the faflure of said corporation.”” In terms the section impresses a prior lien upon all the assets of the company for the payment of all trusts aid deposits with it. The relation of debtor and creditor entered into between the depositors and the company was additionally protected by the preference accorded deposits in the assets, In the event of failure, their prior llenu was to be satisfied ahead of the general liabil- ities of the company. G. 8. Section 34 sheuld be con- strued in connection with Section 5 of the charter, Both egect the same purpese, to give all deposits and funds entrusted to it priority of payment over all gen- 'i THAMES LOAN AND TRUST DECISION mh‘ip—Uninw Balance of Savings wmt!‘leln Have Filled and Use at Home Amounting to $81,035.66 Must be Included With Com-' mercial Deposits—Deposits in Either Department Can- not be Set Off Against Loans from Savings Department. depositors, we’ need not determine which would be entitled to priority as against this company. Certain it is there is no suggestion in the charter | that other parts of this statute are . time, affected by the charter; so that claims against the estate must be mar- shalled in accordance with its terms. So far as concerns the questions sub- mitted to us, there is no inconsistency between the charter and Section 34 Both may and should be given com- blete effect. All classes of deposits in the dis tribution of the avails in the hands of the receiver would have shared ratably had not the distributions been affected by P. A. 1907, Chapter X5, Section 1, which provides: “All banks and trust. companies maintaining a savings department, or soliciting or recelving.deposits as savings, shall in- vest all such deposits hereafter so re- ceived according to the requirements of the statute laws of this state con- cerning the investment of deposits in savings banks; and said investments shall be for the exclusive protection of the depositors in said savings de- partment and shall not liable for or used to pay any other obligation or liability of said bank or trust com- pany until after the payment of all of the deposits in said savings depart- ment.” Safeguard for Savings, Obviously this provision was in- tended to safeguard the savings de- partment deposits of a bank or trust company by requiring, (1) that the Investment of all such deposits shall be in the investments by law permit- ted deposits in savings banks; (2) that the investments of such deposits shall be for the exclusive protection of the depositors in the savings de- partment, and (3) that these invest- ments shall be used to pay the sav- ings department deposits before they can be used to pay any other liability of the bank or trust compan The purpose of the statute was to add to the protection of the savings department depositor and not to di- minish that which he already had, He had by the ‘charter a prior lien tupon all of the assets of the company. He had the right to share ratably in the avails in the hands of the receiver in a certain order. Neither privilege was taken from him by this statute. Another protectory privilege was add- ed to these. If the investments in the savings department should not suffice to pay the savings department de- positor in full the unpaid balance of his deposit was placed on a parity with all other depositors and entitled on distribution to share ratably in the order prescribed by Sectlon 3482. The certificate of deposit creates the re- lation of debtor and creditor between it and the Thames company. It stood in precisely the position of other de- posits in its right to share in the dis- tribution of the avails, All Savings Depositors on a Pari It follows from what we have sald that: All depositors in the several sav- ings departments are on a parity; that the said assets “set aside for sav- ings depositors” are to be applied to the payment ratably of all deposits in the several savings departments af- ter paying the expenses of adminis- tration and taxes: that the avails re- maining in the hands of the receiver are to be appropriated ratably to the payment of the balance of the savings depa ts after paying the expenses of administration ang taxes: that the | avails remaining in the hands of the recelver are to be appropriated ratably to the payment of the galance of the savings department deposits and all other deposits; that the balance, if any is to be distributed in accordance with Section 3482; that the $81,035.66 is to be included with the commercial deposits and s not to be treated as included in “investments set aside for savings depositors,” and that the Doane certificates of deposit are to be included among the commercial de- posits. Relating to Setoffs. Lot us now take up the many ques- tions relating to setoffs The Thames company in its savings department was in reality operating a savings bank. H The depositors in this department were the equitable owners of the sav- ings assets set apart in this depart- ment and had made the company their agents to receive, care for and invest their moneys. Each depositor had an equal right to his proportional share of all the funds of this department. Any debt he owed to the department | was owed to all of its depositors. Upon dissolution or insolvency he was en- titled to share in its assets ratably with other depositors, If a depositor who was a borrower could set off his deposit af its face value against his debt. he might se- cure full payment of his deposit and a greater share of the assets than his fellow depositors. This would destroy the rule of equality and give a great- er share of the assets to the borrow- ing than to the non-borrowling depos- or. For these reasons we have held that the depositor in a savings bank on the insolvency of the bank cannot set off_his deposit against his debt. Osborne v. Byrne, 42 Conn. 168.9. As to Borrowers frem Savings Dept. The same rule must hold In the case of borrowers from the savings depart- ment of the Thames company. The deposits of Case and of Mrs. Turner in the savings department cannot be set off against their loans from it. Nor is the situation changed and the rule of equality to be departed from because the horrower in the savings department holds a deposit in the commercial department. If the commerclal depositor may set off his deposit against his loan from the savings department, this may diminish the assets of that depart- ment and give this borrower a larger share than other depositors. The com- merctal deposit of Gordon and of Mrs. Turner cannot be set off against thelr loans from the savings department. The deposit of Mrs. Turner as guar- dian of her minor son in the home de- and said | partment is a savings department de- posit and it cannot be sct off against her own loan from that department because set off is not applicable to savings deposits and further, the debt owed Dy Mrs, Turner is owed in a different relation from that owed by the savings department to her as guardian, She could not, for the reasons stated, set off the deposits now belonging to her husband’s estate in the commer- cial or savings department against her debt due the savings department. I And further her husband’s estate has not yet been administered, and 80 far as appears she does not own elther these deposits. Commercial Department Borrower. The commerelal department borrow- er, unlike the savings department bor- eral liabilities. One Class Ahead of Depositors. The expenses of administration are in any event a first charge. So that ounly one class of creditors, holders of circulating notes, are placed by the statute ahead of depesitors whe, if the charter stood alene, might pe haps be held subordinate to depositers. As there is no contest in this case b rower, may set off his clalm against the commereial department, whether it be in the form of a deposit or other- wise. This follows frem the relationship of the receiver to tha company. The receiver is & mere trustee for the creditors and takes the property subject lnlnlhl claims and defenses that were available against the compan: before its insolveney. ek | the Throw Awa"y Your Eye-Glasses! A Free Prescription Do you wear glasses? Are you a victim of eye-strain or other eye- weaknesses? If so, you will be glad to know that there is real hope for you. Many whose eyes were ling, say they have had their eyes restored through the principle of this wonder- ful free prescription. One man says, after trying it: “I was almost blin could not see to read at all. Now I can read everything without any glasses and my eyes do not water any more. At night they would pain dreadfully; now they feel fine all the It was like a miracle to me. A lady who used it says. “The at- mosphere seemed hazy with or with: out glasses, but after using this pre scription for fifteen days everything seems clear. 1 can even read fine print without glasses.” It is believed that thousands who wear glasses can now discard them in a reasonable time and multitudes more will be able to strengthen their eves so as to be spared the trouble and expense of ever getting glasses. Eye troubles of many descriptions may pe wonder- fully benefited by following the simple rules. Here is the prescription: Go to Lee and Osgood or any active drug store and get a bottle of Optona. Fill a two ounce bottle with warm water, drop in one Optona tablet and allow to dissolve. With this liquid, bathe the eyes two to four times dally. You should notice your eyes clear up per- ceptibly right from the start and in- flammation will quickly disappear. If your eyes are bothering you, even & little, take steps to save them now before it is too late. Many hopelessly blind might have been saved if thoy had cared for their eyes in time. Clears Complexion—Removes Skin Blemishes. Why go through life embarrassed and disfigured with pimples, eruptions, blackheads, red rough skin, or suffer- ing the tortures of eczema, itch, tetter, salt rheum. Just ask your druggist for Dr. Hobson's Eczema Ointment. Follow the simple suggestions and your skin worries are over. Mild, soothing, effective. Excellent for bables and delicate, tender skin. Stops c! ping. Always helps. Rellef or money back. B0c. at yeur druggist. — e course of business before the insol vency may be set off. The balance oniy is an asset of the insolvent. To this general rule there are cer- tain limitations which do not con- cern us in this case. One of these is that set off cannot be allowed when it will destroy the order or equality of distribution of the insclvent estate provided by statute. Ruling on Notes. Against the nine notes, upon some or ail of which Norwich Overall and hirt Co., Davidson, Rosenberg, Jacob | Gordon and David Gordon are mak- in the commercial department of Nor- wich Overall and Shirt company. deposit in the commercial department against his loans of $700 and $300. | The estate of Turner may set off the deposit of Turner in the commercial department against his loan of $2,000 | from ft. We are also asked whether the bor- rower from the commercial depart- ment may set off against his loan his| deposit In the savings department. At the beginning of the opinion we adopt- | ed the view that the savings depositor is a creditor of the company for the whole of his deposit, and that he is additionally protected by the statute which provides that the investments of the savings department shall be first used to pay savings depositors. These conclusions might suggest a re- sult that the depositor in the savings department should first exhaust his deposit and then set off merely the balance remaining due him against his debt in the commercial depart- Only Practicable Rule. But the only practicable and work- able rule compels the set off of from savings deposit against the loan from the commercial department. Such a rule may benefit the savings depositor ment. by Increasing his proportion in the savings assets although diminishing his dividend from the assets of the commercial department. Likewise it mway benefit this borrower and deplcte the assets of the commercial Gepart- ment. But this resuit to the borrow- er and to the commercial department ie what will happen where the de- posit of a borrower in the commercial | department is set off against his loan. If the rule should be adopted that the set off allowed should only be the amount of the balance due after re- ceipt of the dividend from the savings | dcpartment, the company could not! collect such loans until all the savitgs ‘nvestments were liquidaled and pail over. This would prejudice the bor- rower as the interest upon his loan vculd continue. And it would de.ay the settlement of the estate udd to the administration, and accounting bur- Gens of the receiver, and by deferring payment of dividends to the de- jositors in all likelihood lose the gain to them from the adoption of this rule | ace of that adopted by us. ers, may be set off pro rata the deposit | | Gordon has the right to set off his cottage. Lacet Arabian Curtains Our Regular $6.50 reduced to ... Our Regular $5.50 v. reduced to Our Regular $4.50 value— reduced to Irish Point Curtains Our Regular $6.00 value— reduced to =Rkt whiire suib Our Regular $5.00 value— reduced to ........ value— Seamless W trous ¢ regular price $47.50—8pecial price.. effective Oriental design: Body Brussels Rugs greens, browns, Burma Rugs of heavy and mission designs, 1 regular price $13.95—Special price. A SPECIAL SALE OF LACE CURTAINS Hundre&ofp-inofhuCufl:im are included in this sale, so that a prospective purchaser has a wide range of selection as well as an opportunity for sure and substan- tial savings. And better still—every Curtain offered in this sale is in the newest of this season’s designs, not an old pat- tern in the lot. ON SALE BEGINNING TODAY. This offering should interest every woman in Norwich, or near Norwich, who has Curtains to buy for home or $5.40 $4.60 $3.75 $5.20 $4.25 $UES o the Finer Sort At Reduced Prices Tllue Rugs include some of the finest Rugs in our store —and the reductions are from our own low selling prices, which should make them especially attractive. Note these special offerings. ON SALE BEGINNING TODAY. ton Rugs of the very best make, extra heavy, lus- size nd silky finish. in all the best colorings, Heavy Royal Wilton Rugs, strictly all beautiful, harmonious colorings—at these prices: Size 9 x 12 fee—Special price $32.40, value $37.50 Size 8 feet 8 inches x 10 feet 6 inches—$30.95, value $35.00 in all-over designs and medailion effects, colors are tans and oid Tose— Size 9 x 12 feet—Special price $21.40, value $25.00 Size § feet 8 inches x 10 feet 6 inches—at $19.95, value $22.50 Bigelow's Arlington Rugs, extra large size—11 feet 8 inches x 12337 50 feet, regular price $50.00—Special price sereaceans - Scotch art weave, suitable for any Marquisette Curtains Our Regular $5.00 value— L BE T SRR Ao e Our Regular 3475 reduced to . - Our Regular $3.75 reduced to .. Our Regular $3.50 reduced to Our Regular $2.25 value— reduced to 9x12 figures and worsted, small, neat rich arts and crafts .size e 3 12' fee:-,sll.45 in room, THE PORTEQOUS & MITCHELL CO. teiences appear. Teh trusices and nit tke depositors control & munaige the savings department fund. We have seen that under the char- ter the savings depositors may, if the assets set apart in the savings de- partment are not sufficient to pay their deposit, share as to the balance with the commercial depositora. If these departments constituted three sepa- rate institutions, the savings deposit- ors would be confined to the assets of their own department. Departments Not Separate Institutions We do not think the charter creates, or the law providing for the setting apart of savings funds and investing them in savings bank investments, in- tended to make of these departments independent institutions. The savinazs deposits of Case, Gardner and Mrs. Turner can be set off against their loans in the commercial department. e are unable to discover any reason for denying this set off to Case in the fact that with his savings book he de- posited wto orders as collateral securi- ty at the time of his loa McKinnon v. Armstrong Bros. Co. 2 App. Cases, 5, 31; Randolph On Commercial Paper, Sec. 1883; nor in the fact that he is of financial responsibility apart from the value of this collateral. The savings deposit of Mrs. Turner cannot be set off against the loan of Mr. Turner in the commercial depart- ment; they are in different relation. Mrs. Turner is not as yet in legal pos- sessinn of any part of the estate of Mr. Turner. The conveyance of Mr. Turner to her “subject to sald mert- gage” carried no personal lability. Hubbard v. Ensign, 46 Conn., 576. Specific Cases. There are two deposits in the com- mercial department, one of Rosenberz and one of Davidson, and a depesit of Rosenberg in the savings department. We are asked whether any or all of these deposits may be set off against demands upon negotiable notes mado to “ourselves” by Norwich Overall and Shirt Co., a partnership composed of said Rosenberg and Davidson, and by said Rosenbers and Davidson. Roth classes of deposits, commer- cial and savings, as we have pointed | out, may be set off against a debt due the commeroial department provided the debts are mutual. 5 Our inquiry narrows to this. In an action by the receiver of an insolvent corporation against & partnership up- on its negotiable note, can ons of the partners set off his individual debt l\a from the insolvent against the debt the partnership due %o the imsolvent? The weight of aatherity su the conclusion that as a general rul in such actlon the individual debt du one partner cannot be set off again a debt due from the partnership. Th decisions are controlled by the of their purisdiction. (Continued on P o Eight) Simple and Easy Way. The rule we adopt is far simpler snd better adapted to the purposes of business. The simpler the rules of low affecting business relatiuns ¢an be made the better for bus ness We can see no adequale rogaon for | creating out of this situation an ex- ception to the ordinarv rals peemii- | tir g the set off unless .t be he:d that | the savings department =rd the com- | reercial department were in faer, sup- araie and independent ingti-utiine, | Tn some respects thy relation be- | tacen these depositors 's not unlike tha: of depositors in s=uiza'e institu. tions. The law required the funds from the savings department ;o be| Lept separate, and invested in invest- | ments required by law for savin:s| tank deposits, and required the com- | pary to pay the same tax as paid by suavings banks but did not requirc it to malintain the same statutory reserve | as they were required t | In other features ‘uadariental At & E50 QuETNR WA SRR a2 B : Overwork--Worry Excitement-- all meet their most patent counteracting force this palatable, wholesome ! remedy. If It Swims, We Have It Choice SHAD, FINE BLUES, Fresh Caught MACK- EREL, COD, NATIVE SMELTS, SALMON, FLOUND- ERS, BUTTERFISH, LIVE LOBSTERS, LONG and LITTLE NECK CLAMS, Choice OYSTERS, ETC. 114—Telephones—777 POWERS BROS., 10 Rose Place Berlin Kettles (with covers) T ASK ANY DRUGGIST d Duefi’p’;fw Booklet KINGS PUREMALT DEPARTMENT A ; 3638 Hawley St Boston tween holders of circulating netes amd = Mutual debts contracted in ordinary i GENENENED @ Double Roasters . Bulletin Building Buy Aluminum Ware WILL WEAR FOR TWENTY YEARS ., Sauce Pans (specials 15¢c, 25¢c) 75c, $1.00 and $125 Preserve Kettles . . . . . 65¢, 98¢, $1.15, $1.25 and $1.50 $1.00, $1.25, $1.50, $1.85 and $2.15 Tea Pots e o i o crmeemenein $1.85 and $2.15 Coffee Pots . vecv e v . $1.50, $2.00 and $2.25 Coffee Percolators (special) wvoaanmw.cconie. .. $2.00 Rice Boilers . .. .w ... $1.50, $1.75 and $2.00 e e e et . $1.50 at... THE HOUSEHOLD 74 Franklin Street