State ex rel. Post v. Benton

47 N.W. 477, 31 Neb. 44, 1890 Neb. LEXIS 187
CourtNebraska Supreme Court
DecidedDecember 23, 1890
StatusPublished
Cited by1 cases

This text of 47 N.W. 477 (State ex rel. Post v. Benton) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State ex rel. Post v. Benton, 47 N.W. 477, 31 Neb. 44, 1890 Neb. LEXIS 187 (Neb. 1890).

Opinion

Cobb, Ch. J.

The relator presented his information December 4,1889, applying for a peremptory writ of mandamus to compel the auditor of public accounts, the treasurer of state, and the attorney general, as a board of bank supervisors, for the appointment of bank examiners under an act of the Iegisture of the state entitled “An act to require corporations, firms, and individuals transacting a banking business to make reports of their resources and liabilities to the auditor of public accounts, and to provide for the examination of the affairs of such banking institutions, • and to fix a minimum capital for the transaction of a banking business, punish the receiving of deposits by insolvent banking institutions, and to provide for winding up their affairs, and to repeal sections one, two, and three of chapter eight of [45]*45the Compiled Statutes of 1887,” approved Mar.ch 29,1889, to revise and rescind the rate of compensation to be paid for the service of bank examiners.

The relator sets up that he is a stockholder in the Tamora State Bank, and of other banks organized under the laws of this state at various places.

II. That the legislature of this state at its twenty-first session passed the act referred to.

III. That by its provisions the auditor, treasurer, and attorney general are constituted a quasi board to appoint the bank examiners therein provided, to exercise a general oversight of the operations of the act, and the examination of the banks of the state.

IY. That said board met and organized on July 1, 1889, and appointed A. P. Brink, J. C. McNaughton, and Thomas E: Sanders bank examiners, who qualified and entered upon their duties.

Y. That section 8 of the act provides that "every person appointed to examine the affairs of any bank, corporation, arm, or individual transacting a banking business shall receive compensation for such examination at the rate of $10 for each day by him employed in such examination, which shall be' paid by the bank, corporation, firm, or individual whose affairs are examined; Provided, that the fees paid by any such corporation, firm, or individual for any such single examination shall not-be less than $10 nor more than $20.”

YI. That said board, on July 1, 1889, made an order authorizing and requiring said bank examiners to charge $20 each in all cases as the fees of'examiners without reference to the time employed, which order was without authority of law, and said board is not vested with judicial discretion to fix the amount to be charged for such examinations, which is fixed by the act, and said examiners refuse to examine banks unless the3 are to be paid the sum of $20 regardless of the time spent in making the same.

[46]*46YIT. That on October 31, 1889, the defendant, T. E. Sanders, one of the examiners, examined the Tamora State Bank, spending only the fraction of one day, and also examined the other bank in the village of Tamora on the same day, and required each to pay therefor the fee of $20, which sum was so paid.

The relator prays that a peremptory writ of mandamus may issue to said state officers, acting as such board, commanding them to rescind said order authorizing the charge of $20, and that said examiners be required to perform the duty of bank examination in the manner specially provided by law, and for the fees provided in the 8th section of the act.

The respondents answered, admitting the allegations of paragraphs two, three, four, and five of the relator’s information.

II. In answer to paragraph YI, they set up that under the provisions of the banking act of March 29,1889, the examiners are allowed $10 for each day employed in any examination, to be paid by the bank, and at no time has either of them ever received any compensation in excess of $10 for each day employed.

III. They further say that section 8 of said act provides that the fees paid by' any bank for any single examination shall not be less than $10 nor more than $20, and that no bank is required to pay for more than one examination in any one year; that in pursuance of said provision the three respondents first mentioned made the order charging each bank examined the sum of $20 as a fee only after a full investigation of the time actually employed in éxamining the affairs of any bank, and upon finding that more time than one day was actually required in completing an examination, that the sum so charged is reasonable and just, and that if the time actually spent in a bank building was only charged for, many banks that require three days’ time to examine their affairs would only be required to pay the sum of $10.

[47]*47The affidavits of Examiners Sanders, McNaughton, and Brink are hereto attached, marked A, B, and C, and made a part of'respondents’ answer.

Respondents deny that the examiners, or either of them, ever refused to examine a bank unless a fee of $20 was paid, but alleged the fact that no bank has refused to pay that fee, and that in every instance an examination of the bank’s books is first made before any fee is asked or compensation received.

IY. Respondents in answer to paragraph YII allege that on October 31, 1889, Sanders, the examiner, did examine the Tamora State Bank; leaving Utica he reached Tamora about 11 o’clock A. M., and immediately after dinner commenced his examination and continued it until 6 o’clock P. M., discovering irregularities which required additional time for examination: I. The articles of incorporation were not signed. II. The records were not signed. III. The book of certificates showed that all of the certificates of stock were issued to J. T. Jones, the cashier. IY. That the name of the relator did not appear on said book as a stockholder. Y. It was found to be necessary to open a correspondence with the bank’s correspondents in order to verify the statement as shown by the books of the bank. YI. And further, that the names of the shareholders should be made to appear on the bank books, or, the individual liabilities should be made to appear, showing that the bank had property of the cash value as required by law above incumbrances and in excess of liabilities; that after making the examination, it occupied the examiner more than one-half the day’s time to verify the accounts on the bank’s books, to make out and send to the auditor of public accounts a report of said bank; that he did, on the evening of October 31, examine the bank of A. J. Williams & Co., from 6:80 P. M. until after 10 P. M.; that during A. M. of November 1, the examination was continued and it was found necessary to visit its correspondent at Seward to verify its statement.

[48]*48Y. The time actually employed in completing the examination of the Tamora State Bank was more than one and one-half days, and is yet incomplete, and will probably necessitate another visit to the bank.

VI. The time actually employed in completing the examination of A. J. Williams & Co.’s bank was more than two days, and each paid the examiner $ 20.

VII. Respondents further say that an examination cannot be properly made and completed of any bank in this state in less than two days, and they deny each and every other allegation in the relator’s information contained.

No brief is filed in the case by the relator, nor is there any evidence submitted in support of the information. From this fact, we are not informed upon what principle the court is asked to enforce, by mandamus,

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Related

Miles v. Holt County
125 N.W. 527 (Nebraska Supreme Court, 1910)

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Bluebook (online)
47 N.W. 477, 31 Neb. 44, 1890 Neb. LEXIS 187, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-post-v-benton-neb-1890.