Show TELEGRAPHIC NEWS If Important Decision Washington 7A decision of some importance to banks insurance insur-ance companies and all corporations yhick employ agents was rendered in the Supreme Court teday in the case of Dillon money collector for and belonging to insurance com jpanies He drew checks against two agency accounts for his otfn personal use as well as for remittances remit-tances which he made to those whose agent he was In lb74 the bank discounted for Dillon and his wife a personal note of 810000 the I proceeds of which Dillon used in certain business speculations When this note fell due it was not paid and the bank on the 1st of June 1874 charged it to Dillons agency account The insurance company maintained that I there was an undrawn balance in the agsxcy atuta3 of about 311000 belonging to them Bad that the bank had no right to pay it out of their funds A note was given by Dillon to raise the money for 11is own personal use The company therefore brought suit to recover from the bank the amount of its withdrawn balance in the Dillon agency account On the 10th of June 1878 the court below decided to decree that the bank should pay to the complainant the Connecticut Mutual Life Insurance Company the amount of the fund claimed with interest The bank thereupon appealed I ap-pealed this and now the court holds that when an agent of a bank whose account designated asonekept by a depositor in a fiduciary capacity and the bank seeks to assert its lien as a banker for a personal obligation and the deponent is known to have contracted con-tracted for his private benefit the bank must beheld as having notice that the fund represented by the account is not the individual property prop-erty of the depositor if it is shown to consist in the whole or in part of funds held by him in trust The court further holds quoting the recent decision of the court of appeal ap-peal in England in the case of Knatchbull vs Hallettthat money held by a person in a fiduciary capacity cap-acity though not a trustee has been paid to him in his account at his bankers the person for whom beholds be-holds the money can follow it and have charge of the balance in the bankers hands even although it is mixed with the depositors own money also that the bank cannot be permitted to assert its own claim to the balance of the agency account as against the equity of the beneficial benefi-cial owner when the bank has notice either actual or constructive of such equity The decree of the court below is therefore affirmed The opinion was delivered by Justice Jus-tice Matthews A decision also rendered today in the insurance case Caroline Kline against the New York Life Insurance Company in which is presented a question whether the penalty for failure or nonpayment of premiums expressed in the policy of the insurance can be enforced in all cases regardless of excuses or reasons which may be assigned for default The court holds that it can |