McConihe v. Exchange Bank

49 How. Pr. 422
CourtNew York Supreme Court
DecidedMarch 15, 1875
StatusPublished

This text of 49 How. Pr. 422 (McConihe v. Exchange Bank) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McConihe v. Exchange Bank, 49 How. Pr. 422 (N.Y. Super. Ct. 1875).

Opinion

Westbrook, J.

By section 199, page 561, of volume 2 oí the fifth edition of the Revised Statutes, it is declared: “Upon the application of creditors or shareholders of any such association, whose debts or shares shall amount to $1,000, and stating facts, verified by affidavit, the supreme court may, [423]*423in its discretion, order a strict examination to be made by a referee of all the affair’s of such association, for the purpose of ascertaining the' safety of its investments, and the prudence of its management; and the result of every such examination, together with the opinion of the referee and of the court thereon, shall be published in such manner as the court shall direct, who shall make such order in respect to the expenses of such examination and publication as they may deem proper.”

It is apparent that if the revisers and publishers of the fifth edition of our statutes have, in the section just quoted, given the true status of the legislation of this state, then this order, in its general scope at least, even though objectionable in some of its details, was a proper one to be made. It is claimed, however, by the moving party that the section as given does not contain the law as it is, because, first, the original act of 1838 (chap. 260, sec. 25) conferred the power to order the examination, not upon the late court of chancery, but upon the chancellor as an officer, and that the judiciary act of 1847 did not vest the powers which the late chancellor possessed in the supreme court or in its judges; second, that the original act before referred to required the examination to be made by a master of the late court of chancery, and that whilst the office of master has been abolished, no provision has been made by the law to cause the examination which the statute contemplates to be made by a referee; and, third, that the various statutes which have since been passed, providing for an examination into the affairs of a banking association by other officers, practically repeal the provision of the statute which authorized the examination by a master in chancery, upon the order of the chancellor.

By reference to the' original statute before mentioned (chap. 260, Lems of 1838, sec. 25), it will be seen that it is identical in language with that quoted from the fifth edition of the statutes, except that where the words “ supreme court” or “court” occur in the latter, the word “ chancellor” [424]*424is used in the former, and also that the latter has substituted the word “ referee ” for “ one of the masters of his court,” and for “ master,” wherever the latter words occur in the old statute. The old statute, in short, authorized “ the chancellor ” to “ order a strict examination to be made by one of the masters of his court,” and directed the publication of the result of such examination, with the opinion of the master and of the chancellor thereon,” in “ such manner as the chancellor shall direct.”

It will be observed that the action pointed out by this statute was to be under the order of the chancellor, and not of the court of chancery. It is true that the former was the judge who presided over the latter, and that the application would be granted or denied by the same individual, if made to either; but yet the distinction between an application to a court or to an officer is one well recognized and understood. The application, then, was to the chancellor as an officer, and not to the court.

By the sixteenth section of chapter 280 of the Laws of 1847, entitled “An act in relation to the judiciary,” the powers and jurisdiction of the court of chancery were transferred to the supreme court; and it was further declared that “ the justices ■ of said court shall possess the powers and exercise the jurisdiction now possessed and exercised by the justices of the present supreme court, chancellor, vice-chancellors' and circuit judges, so far as the powers and jurisdiction of said courts and officers shall be consistent with the constitution and provisions of this act.” Language cannot more clearly express any thought than this statute does, in conferring the powers and jurisdiction of the court of chancery upon the supreme court and those enjoyed and exercised by the chancellor upon the justices of the supreme court (See Wilcox agt. Wilson, 14 N, Y, 575; the prevailing opinion of Mitchell, J., page 579, and dissenting opinion of Weight, J., both of whom concur in owr construction of the judiciary act in this respect). If, however, the section of the judiciary act we have referred [425]*425to went no farther than to clothe the present supreme court with the powers and jurisdiction of the court of chancery, and its justices with those of the chancellor, this order would fail for two reasons : First, it was made by the court and not by one of its justices as such ; and, second, section 77 of the judiciary act authorizes courts and not officers to order references “ in any suit or proceeding to suitable person or persons,” where a reference had formerly been to any clerk, master in chancery or referee.” In other words, it must be shown that the judiciary act authorized this court, as a court, to order the investigation, which the chancellor could direct, before it could order the examination, which the master formerly made to be conducted by a referee. Has the statute conferred the power upon the court ?

Upon the argument of the motion át special term, from the hasty reading of section 16 of the judiciary act before referred to, I was of the impression that the powers of the late chancellor were only lodged in the justice of this court, and that, consequently, the order must fail for the reason that it was granted by the court; and that, even when granted by a judge as such it must fail, because, the court alone could appoint a referee instead of a master. A more careful reading of the section, however, induces me to think that the revisers of the fifth edition are right in the interpretation and reading of the section quoted in the beginning of this opinion, by which the supreme court and referee take the place of the chancellor and the master in ordering and making the examination into the affairs of a moneyed corporation authorized by the act of 1838.

Section 16 of the judiciary act not only contains the clauses before referred to transferring the powers and jurisdiction of the late court of chancery to the supreme court, and those of the chancellor to its justices, but also this: And all laws relating to the present supreme court and court of chancery, or any court held by any vice-chancellor, and the jurisdiction, powers and duties of said courts, the proceedings therein [426]*426and the officers thereof their powers and duties, shall be applicable to the supreme court organized by this act, the powers and duties thereof the proceedings therein and the officers thereof, their powers and duties, so far as the same can be so applied and are consistent with the constitution and the provisions of this act.”

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Bluebook (online)
49 How. Pr. 422, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcconihe-v-exchange-bank-nysupct-1875.