Ehle v. . the Chittenango Bank
New York Court of Appeals
Appeal from the Supreme Court. The plaintiff sued, as a stockholder of the bank, to recover fifty-six dollars due him for a dividend. Upon the trial it appeared that the defendant was a banking association organizéd under the genferal law of 1838. The directors declared a dividend of four pér cent,'.payable, by the terms of their resolution,'“in New.
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Appeal from the Supreme Court. The plaintiff sued, as a stockholder of the bank, to recover fifty-six dollars due him for a dividend. Upon the trial it appeared that the defendant was a banking association organizéd under the genferal law of 1838. The directors declared a dividend of four pér cent,'.payable, by the terms of their resolution,'“in New. York State currency.” - The referee, under exception, allowed the'cashier ■ to testify that,- by the térms “New York State• currency," he understood .'bills that :are quoted at a quarter of one per cent below par in the city of New York. The…
1Opinion of the CourtWeight, J.
I am for reversal, for the foEowing reasons:
1st. The dividend declared and demanded was, not of cur rent or úncurrent bills or' property possessed by the bank, (which might be specifically divided amongst the stockholders), but was a portion of the surplus or net earnings of the association. It was a dividend of $6,000 of cash profits realized, and set apart as due to the stockholders. So much of the cash earnings of the association were withdrawn from its business and divided pro rata amongst the stockholders as the earnings of their capital invested in the stock. The bank became the debtor…
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