In re City-Commercial Sav. Bank's Receivership

• Decision Date: 23 June 1930
• Docket Number: 40216
• Parties: IN RE RECEIVERSHIP CITY-COMMERCIAL SAVINGS BANK OF MASON CITY. F. M. ORR, Appellee, v. L. A. ANDREW, State Superintendent of Banking, Appellant
• Court: Iowa Supreme Court

231 N.W. 342

210 Iowa 581

IN RE RECEIVERSHIP CITY-COMMERCIAL SAVINGS BANK OF MASON CITY. F. M. ORR, Appellee, v. L. A. ANDREW, State Superintendent of Banking, Appellant

No. 40216

Supreme Court of Iowa, Des Moines

June 23, 1930

Appeal from Cerro Gordo District Court.--M. H. KEPLER, Judge.

Claim of F. M. Orr against L. A. Andrew, as receiver of the City-Commercial Savings Bank of Mason City, on alleged oral agreement to pay $ 125 per month for living expenses, in addition to agreed salary of examiner in charge of the City-Commercial Savings Bank. Claim allowed. Receiver appeals.

Reversed.

R. F Clough, for appellant.

Senneff Bliss, Witwer & Senneff, for appellee.

MORLING C. J. EVANS, STEVENS, FAVILLE, DE GRAFF, KINDIG, and GRIMM, JJ., concur.

OPINION

MORLING, C. J.

Robert L. Leach, while superintendent of banking, employed claimant, F. M. Orr, as examiner in charge of the Central Trust Company of Mason City, Iowa, at $ 250 per month, and $ 100 allowance for living expenses. Claimant later was employed by Superintendent Leach to take concurrent charge of the United State Bank of Des Moines, and his compensation for the two institutions was agreed upon at $ 500 per month, and an allowance of $ 125 for living expenses. In February, 1925, claimant was relieved of the Des Moines bank, but retained in charge of the Central Trust Company at $ 250 per month and $ 100 per month for living expenses. He was given concurrent charge of the Cartersville Savings Bank, with no additional salary. In May, 1925, the City-Commercial Savings Bank closed. Claimant was placed in charge, and his salary fixed at $ 500 per month, and $ 125 living expenses, prorated between the City-Commercial Savings Bank and the Central Trust Company. On July 1, 1925, L. A. Andrew became superintendent of banking, in place of Mr. Leach. Claimant was paid the $ 500 and the $ 125 per month to August 1, 1925. In August, 1925, Mr. Andrew notified claimant that the salary of $ 500 per month could not be paid. A salary of $ 4,400 per year was thereupon agreed upon. Nothing was then said about the $ 125 per month for living expenses. Later, Mr. Andrew told claimant that he, Andrew, had learned that claimant was being paid $ 125 per month for living or personal expenses, but that there would be no allowance for personal expenses after August 1st. The reason given was that the executive council would not allow it. Claimant said that, if he was not paid the $ 125 a month, he would not stay. Plaintiff was concededly efficient. An effort was made among various state officers and others interested, to adjust the matter of additional allowance. The executive council apparently consented to the salary of $ 4,400, and it was paid. Neither the superintendent of banking nor the executive council agreed to pay the $ 125 per month, nor was it paid after August 1, 1925. Claimant continued as examiner in charge until January 1, 1927. On July 20, 1927, he filed claim in the receivership proceedings of the City-Commercial Savings Bank for the $ 125 per month. The claim, as amended, alleged "an oral agreement with L. A. Andrew by which he [claimant] was to be paid $ 4,400 per year as salary and $ 125 per month living expenses, $ 80 to be paid by the City-Commercial Savings Bank and $ 45 by the Central Trust Company, and that such salary and expenses should continue as long as petitioner remained in charge." The alleged oral agreement is not proved.

The superintendent of banking is a state officer, appointed by the governor, with the approval of the Senate. Section 9130, 9131, Code, 1924. Section 9136, Code, 1924, provides:

"The superintendent of banking may appoint examiners, to hold office for a term of two years, but not to exceed one examiner for each one hundred banks, * * * and may also appoint a deputy superintendent of banking, * * * and may also appoint such clerks * * * as he may need * * *. Provided that, whenever the proper conduct of the affairs of the office demands, he may, with the approval of the executive council, appoint for a term not to exceed one year such additional bank examiners and employees as may be necessary * * *. Such additional examiners or employees shall be paid out of current or accumulated earnings of the banking department, their salaries to be not greater than those of other similar employees authorized by law. All such appointees shall be removable at the pleasure of the said superintendent."

Section 9137 provides:

"The deputy superintendent of banking and all bank examiners shall receive a salary to be fixed by the superintendent of banking, which salaries shall be commensurate with the work done. In no case shall the salary of anyone exceed the sum of $ 3,800 per annum, except that the salaries of the deputy superintendent and of not more than three examiners may be increased by the executive council in an amount in each instance not in excess of $ 600 in any one year upon the request of the superintendent of banking and a showing by him of the need of such action, but under this provision no salary shall exceed a maximum of $ 4,800."

By Section 9140:

"The superintendent of banking shall be the head of the banking department of Iowa and shall have general control, supervision, and direction of all banks and trust companies incorporated under the laws of Iowa, and shall be charged with the execution of the laws of this state relating to banks and banking. * * *"

Section 9144 reads:

"The superintendent of banking and examiners shall be entitled to actual and necessary expenses incurred in the examination of banks and trust companies, and the actual and necessary expenses within the state of special assistants and other employees who may be designated by the superintendent to aid in the official work of this department, shall be allowed."

Section 9145 provides:

"No payments of any kind shall be made by the treasurer of state to cover expenses and salaries of the banking department or any part thereof unless there shall be on hand in the office of the treasurer of state sufficient funds received as income from said department to pay the same, and such salaries and expenses shall be paid from such funds. The superintendent shall furnish to the auditor of state from...