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129 Nat'l Corp. Rep. 1 (1954)

handle is hein.journals/natcorprep129 and id is 1 raw text is: Published at 1307, 8 S. Dearborn St. Chicago, Ill. Telephone RAndolph 6-0661 ESTABLISHED June 23, 1890. rume 129. Number I. CHICAGO, JUNE 25, 1954 Subscription $2 a Year. Ten Cents a Copy AECENT ILLINOIS APPELLATE COUIT DECISIONS FIRST DISTRICT First Division Presiding Justice Grover C. Nie- ver, Justice Joseph Burke, Justice go M. Friend. Second Division Presiding Justice Ulysses S. Schwartz, Justice John M. Tuohy, Justice Edwin A. Robson. Third Division Presiding Justice Michael Feinberg, Jrstice Roger J. Kiley, Justice John arles Lewe. lerk, James M. Whalen. E ested for THE NATIONAL CORPORA- Toi( REPORTER by Frederick A. Rowe, Jr. 46291. May 19, 1954. Pre- t:ision Scientific Company, a corporation, appellee, vs. In- ternational Union of Mine, Mill and Smelter Workers et al., appellants. Interlocutory ppeal from Circuit Court * ook County. A'fmf . tnd reversed in part and-re- anded f or further proceed- ings in accordance with the 'iews herein expressed. .Feinberg, P. J.) Injunction -Federal agency to have ex- clusive jurisdiction in labor dispute - National Labor Re- lations Board not ceding its jurisdiction to any state agency. This interlocutory ap- peal by defendant brings up for review an order for a emporary injunction in a bor dispute, accompanied by strike called by defendants .t plaintiff's plant. The in- nction order in substance mmands the defendants to Vpase the strike in progress id to desist and refrain from ducing or permitting any rther strike or work stop- ge. The court held that iintiff is engaged in inter- ,ite commerce business. Sec- n 10 of the National Labor ations Act provides for filing of charges with the trd of unfair labor prac- resulting from a refusal the employer to bargain h the certified bargaining -nt. It is then that plaintiff the instant case is given opportunity to answer the trges of unfair labor prac- and in the hearing of such arges may question the pro- ety of the certification in stion and prove, if it can, matters complained of in instant complaint. The aring under this section is resently pending before the labor Board. From an ad- erse ruling plaintiff could 'en appeal to the United ates Court of Appeals as -ovided in said section. The ramount question upon this appeal, which must govern the reviewing court's ultimate conclusion. is whether, upon this record, the federal agency, which has assumed jurisdic- tion and has conducted a hear- ing upon the subject matter of the instant complaint, has jurisdiction to the exclusion of any state court exercising jurisdiction through the me- dium of injunction proceed- ings. That Congress intended that the federal agency'should have exclusive jurisdiction is apparent in Section 160, Title 29, United States Code, Sup- plement IV. Nothing appears in the record to indicate that the Board ceded to any agency of the state its jurisdiction, as provided in that section. $88~. ~i ,1 People of the State of Illinois ex rel. Aldred, appellant, vs. Kurtz et al., appellees. Appeal from Circuit Court of Cook County. Order reversed and cause remanded with direc- tions. (Robson, J.) Habeas icorpus-Sole surviving par- ent seeking custody of his son -.Father never surren- dering custody - Father not to be deprived of custody. Plaintiff, relator, filed his verified petition for writ of habeas corpus as the sole sur- viving parent for the custody of his son against son's ma- ternal grandmother and ma- ternal aunt, as respondents and defendants. The trial court entered an order deny- ing the writ and granting custody of the child to the grandmother and aunt. Plain- tiff appealed from this order. The court held that a parent has a right to the custody of his child against all the world unless he has forfeited that right or the welfare of the child demands that he should be deprived of it. Unless the unfitness of the parent is established by clear evidence, fitness will be presumed and the custody of the child will be awarded to the parent. It is apparent that the father did everything in a material way to make the boy's life a pleasant one. The father nev- er surrendered the custody of his child to anyone. The cus- tody the defendants had at one time was entirely vicari- ous. At the time they refused to return the child to the plaintiff, the child was with them solely as a visitor and there was not the slightest (Continued on page 9) INJUNCTION - USE OF SAV- INGS IN NATIONAL BANK ADVERTISING. In the case of Franklin Na- tional Bank of Franklin. Square vs. People (United States Su- preme Court, April 5, 1954), 74 Sup. Ct. 550, Jackson, Jus- tice, delivered the opinion of the court: This appeal from the Court of Appeals of New York pre- sents the narrow question whether federal statutes which. authorize national banks to receive savings de- posits conflict with New York. legislation which prohibits them from using the word 'saving or savings in their advertising or business. We think the federal and state statutes are incompatible, and in such circumstances the pol- icy of the State must yield. It is the policy of New Yorly to.chartercand festefthe nmu-1 tual savil.g3 bank, a nonp._6 ure to the benefit of depositors rather than to stockholders. These institutions have a long history as relatively stable and safe depositaries for the accumulations of thrifty New Yorkers and as a source of credit for limited uses. They have grown to be an important part of New York's banking and economic structure. That State also charters the sav- ings and loan association, an institution of a different type, intended to serve somewhat similar ends. The Legislature was concerned lest commercial banks, in seeking to induce deposits of the same charac-- ter, so use the word savings as to lead uninformed and in- discriminating persons to be- lieve that they were dealing with the chartered savings in- stitutions. Hence, by its Bank- ing Law, New York has forbidden use of the word savings, or its variants, by any banks other than its own chartered savings banks and savings and loan associations. However, the Federal Gov- ernment is a rival chartering authority for banks. Since McCulloch vs. State of Mary- land, 4 Wheat. 316, 4 L. Ed. 579, it has not been open to question that the Federal Gov- ernment may constitutionally create and govern such insti- tutions within the states. The United States has set up a sys- tem of national banks as fed- eral instrumentalities to perform various functions such as providing circulating medium and government credit, as well as financing commerce and acting aq:pr vate depositaries. Sddy..;df their functions, especially as a source for federal credit, depend upon their success in attracting private deposits. That these federal institutions may be at no disadvantage in competition with state-created institutions, the Federal Gov- ernment has frequently ex- panded their functions and authority. Of such nature are the measures now before us. The Federal Reserve Act provides that a national bank ''may continue hereafter as heretofore to receive time and savings deposits and to pay interest on the same, but the rate of interest which such association may pay upon such time deposits or upon savings or other deposits shall not ex- ceed the maximum rate au- thorized by law to be paid upon such deposits by State banks or trust companies or- ganized under the laws of the State in which such associa- tion -is located. The Act authorizes the Federal Re- serve Board of Governors to make necessary rules and regulations, which the Board has done by defining such terms as time deposits and savings deposits. The Na- tional Bank Act authorizes national banks to receive de- posits without qualification or limitation, and it provides that they shall possess all such incidental powers as shall be necessary to carry on the business of banking; by dis- counting and negotiating promissory notes, drafts, bills of exchange, and other evi- dences of debt; by receiving deposits; by buying and sell- ing exchange, coin, and bul- lion; by loaning money on personal security; and by ob- taining, issuing, and circu- lating notes according to the provisions of the chapter. Appellant, believing it was authorized by the Federal Government to do so, used the word saving and savings in advertising, in signs dis- played in the bank, on its de- posit and withdrawal slips, and in its annual reports. It is beyond question that ap- pellant violated the State's prohibition if it is a valid one. The 'Attorney General of the State initiated this case by a complaint alleging such violations, seeking a broad in- junction. The trial accumu- lated a large record devoted mainly to the merits and de- merits of the New York legislation and its conse- quences upon banks and de- positors. The trial court found 116-*I4ie il d'ption of the utrblic.* * *Ir h'd that the ad- yertisi4 fid:6ther u':oY the Orbidaden: lerims* wr- in :pur- quit f .ipnplied nd incidental Digitized from Best Copy Available DEVOTED TO GENERAL NEWS, LAW, COMMERCE AND FINANCE 1oN1 0 DPUBLISHED WEEtLY In Two Parts-Part I Entered as Second Class Matter, October 18, 1890, at the Post Office at Chicago, III., under Act of March 3, 1879. . powers conferred upon na- tional banks by the Acts of Congress and that the New York statute in conflict with them must yield. The Appel- late Division disagreed and di- rected a permanent injunction prohibiting the use of the term. The Court of Appeals affirmed, and we noted prob- able jurisdiction of an appeal. We are unable to support the contention that the au- thorization for national banks to receive savings deposits is limited or qualified because of the expression that they may continue hereafter as hereto- fore to do so. It appears that previous to the enactment, ac- ceptance of such accounts by national banks had been usual but was not expressly author- ized. We do not think the Federal Reserve Act should be construed to freeze indi- vidual banks or those located within any state to the cus- toms and practices preceding the statute. We read the Act as decla-ratf~y of the right of a national bank to enter into or remain in that type of busi- ness. That has been the ad- ministrative construction, and we think it is correct. Nor can we construe the two Federal Acts as permit- ting only a passive acceptance of deposits thrust upon them. Modern competition for busi- ness finds advertising one of the most usual and useful of weapons. We cannot believe that the incidental powers granted to national banks should be construed so nar- rowly as to preclude the use of advertising in any branch of their authorized business. It would require some affirma- tive indication to justify an interpretation that would per- mit a national bank to engage in a business but gave no right to let the public know about it. Appellee does not object to national banks taking savings deposits or even .to their ad- vertising that fact so long as they do not use the word sav- ings. It takes the position that this word is a misnomer in New York because deposi- tors there, as a result of the State statute, have come to think of savings accounts as something entirely different from those to which the Fed- eral Act is referring. Regard- less of whether New Yorkers are really misled by the de- scription, the fact is that Con- gress has given a particular label to this type of account. Whatever peculiar meaning the word may have in New York, it is a word which aptly describes, in a national sense, (Continued on page 13)

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