SUPREME COURT OF OHIO

PUBLIC UTILITIES COMMISSION

As explanatory of the absence in this issue of the accustomed number of rulings and decisions of the Public Utilities Commission, it will suffice to state that the Commission has been devoting its entire time of late to hearings of the now famous "coal rate case." Upon application of all the parties the Commission recessed the hearing to November 22. This postponement will enable the Commissioners to take up the regular calendar, and dispose of the accumulated work. Subscribers to DEPARTMENT REPORTS can rest assured that this deferment does not imply omission-all the rulings of the Commission will appear each week as rendered.

November 8

CALENDAR.

1:30 p. m.-Application of Y. & O. R. R. Co., to issue $200,000 bonds. November 99:00 a. m.-Akron Gravel & Sand Company vs. Northern Ohio Railway Company.

November 10

9:00 a. m. -Whitaker-Glessner Company vs. N. & W. Ry. Co. November 12

10:00 a. m.- -Application of Springfield Light, Heat & Power Company to issue $181,000 bonds and $100,000 preferred stock.

ATTORNEY GENERAL

Under Banking Act of 1908 (99 O. L. 269, Sections 46, 54 and 66) Commercial Banks, Savings Banks and Trust Companies Are Limited to the Amount They May Invest in Real Estate and for the Construction of Buildings Thereon for the Transaction of Business to Sixty Per Cent of Their Paid-In Capital and Surplus (General Code, Sections 9753, 9762 and 9774). Under Section 65 of the Same Act (Section 9772, General Code) Safe Deposit Companies Are Limited in the Amount They May Invest For Such Purposes to Fifty Per Cent of Their Paid-Up Capital and Surplus.

No. 928-(Opinion Dated October 14, 1915). Honorable Harry T. Hall, Superintendent of Banks, Columbus, Ohio.

Dear Sir: I have your letter of September 28, 1915, in which you request my opinion relative to a situation presented in a letter to you from Mr. Walter English, cashier of The Citizens Trust and Savings Bank, of Columbus, Ohio, which letter you quote in full and is as follows:

"Dear Sir:

"September 16, 1915.

"In 1906 The Ohio Trust Company (now The Citizens Trust and Savings Bank) purchased a perpetual lease on the property at the southwest corner of High and Gay streets as a site for its permanent home. This leasehold stands on our books at $130,000, and we pay an annual ground rent of $11,000 with the privilege of purchase of the fee in 1932 for $230,000. In case the privilege of purchase is not exercised, the ground rent of $11,000 remains unchanged perpetually. The lease contains a clause as follows:

"Said party of the second part for himself, his personal representatives, heirs and assigns, covenants and agrees with the parties of the first part, to erect on said real estate, in place of the building now on said real estate, a fireproof building, the same to be not less than twelve stories high, and to keep same in good repair and to promptly restore same to its former condition in case of partial or complete destruction.'

"We now desire to erect a banking and office building on the property and have negotiations on with the trustees of the

estate of Mr. McCune (who executed the lease) for a waiver of the above referred to clause, which waiver will enable us to erect a building of five stories in height with foundations, steel work, etc., strong enough to carry seven additional stories in case we should decide at some future time to add them to the five-story building. Our counsel advises us that the trustees will agree to this modification. Will you therefore please give us a ruling as to the limit of investment we are allowed to make in a banking house? Are we permitted to invest sixty per cent of our capital and surplus of $850,000, of fifty per cent of our capital and surplus of $850,000, including, of course, the $130,000 at which the property now stands on our books? As we read the law, commercial banks, trust companies, and savings banks are restricted to sixty per cent and safe deposit companies to fifty per cent, and, as you are aware, we carry on all four classes of business. Will the fact that we purchased the lease containing the above weive-story clause before the passage of the banking act permit us to exceed the limitation of investment, provided in the act, on account of the fact that we purchased the lease subject to all of its terms and provisions before the law limiting the amount of banking house investment was passed?

"Very truly yours,

"(Signed) Walter English, Cashier."

Upon an examination of the records in the office of the secretary of state, I have secured the following supplemental information:

The Ohio Trust Company filed its original articles of incorporation November 30, 1900. Under date of October 30, 1909, The Ohio Trust Company filed its election to avail itself of the benefits and powers conferred by the act relating to the organization of banks and the inspection thereof, approved May 5, 1908. (99 0. L., 276, Section 36.)

Upon the same date, (October 30, 1909), The Ohio Trust Company filed a certificate amending its articles of incorporation, changing its name to "The Citizens Trust and Savings Bank"; availed itself of the privileges and powers conferred by "An act relating to the organization of banks and the inspection thereof," approved May 5, 1908; and in addition to the powers conferred by its original articles, it acquired authority "to establish and be a 'commercial bank, a savings bank, a safe deposit company, and a trust company, as defined and provided for in said act,' having departments for all of said classes of business."

The Citizens Trust and Savings Bank Company is, therefore, a corporation organized and authorized to carry on four classes of