Hammond v. Dugan

Sloan, J., delivered the opinion of the Court. This appeal is from a decree holding certain bearer bonds to have been held by the Safe Deposit & Trust Company of Baltimore as agent of Daniel I. Broderick and Fannie Oliver Broderick, his wife, for them as tenants by the entireties. The wife predeceased the husband, who, after the wife’s death, had been adjudicated a lunatic. The bill was filed by the wife’s administrator c. t. a., appellant, against the husband’s committee in lunacy and, after the death of Mr. Broderick, his administrator c. t. a. was brought in as a defendant.

There is no controversy as to the facts, the case having been presented to the chancellor, and coming here, on an -agreed statement. In the agreed statement it appears that the transactions began with a letter, dated June 12th, 1930, to the Safe Deposit & Trust Company, signed by Daniel I. Broderick and Fannie O. Broderick, as follows: “June 12, 1930. “To the Safe Deposit & Trust Company of Baltimore: “I, the undersigned, Daniel I. Broderick, am the owner of the following bonds and stocks: (then were listed a number of bearer bonds and two stocks registered in the name of Daniel I. Broderick, one being 30 shares of Commonwealth Bank of Baltimore — total value of all being approximately $70,000) and I and my wife Fannie Oliver Broderick, own the following stocks which are in our joint names: (Then were listed a number of stocks and certificates of deposit registered in joint names with right of survivorship, but no bonds. Included were a certificate of deposit for $4,000 Indianapolis Northern Traction Company bonds, fifty ⁴⁰⁴ shares Western Maryland Dairy prior preferred stock, and other stocks — value of the whole" being $22,000.) “And the undersigned, Dannie O. Broderick, owns the following bonds: “$2,000.00 — U. S. of America Treasury 4%% bonds, 1952. (Bearer Bonds.) “We have today delivered to you all of the above securities and we wish you to hold them as our agent and tO' collect the income therefrom and out of the income to pay the State of Maryland and Baltimore County taxes assessed against us for securities, and your 5% commissions on the collections of income, and to deposit all of the net income to the credit of the account in our joint names at the Mercantile Trust Company.

Please deposit the net income in hand each month and notify us of each deposit, sending us a statement showing the amount of same. “Daniel I. Broderick, “Dannie O. Broderick.” The Safe Deposit & Trust Company, upon receipt of said letter and securities, opened the agency account requested, maintaining on its books three separate ledger entries corresponding with the three separate groups of securities, as designated in the letter of June 12th, 1930, supra. These three separate ledger entries read as follows: (1) “Daniel I. Broderick and Dannie Oliver Broderick under power of Attorney.” This entry was numbered 6872, and in it were included all the securities mentioned in the July 12th, 1930, letter as belonging to Daniel I. Broderick and Dannie Oliver Broderick in their joint names. (2) “Daniel I. Broderick and Dannie Oliver Broderick under power of Attorney. “D. O. B.” This entry was numbered 6872-A, and in it were included all the securities mentioned, in the July 12th, 1930, letter, as belonging to Dannie Oliver Broderick. ⁴⁰⁵ (3) “Daniel I. Broderick and Fannie Oliver Broderick under power of attorney. “D. I. B.” This entry was mimbered 6872-B, and in it were included all the securities mentioned in the July 12th, 1930, letter as belonging to Daniel 1. Broderick.

In September, 1918, Daniel I. Broderick, who had recently married Fannie Oliver Broderick, who was about thirty years his junior, had his bank account at the Mercantile Trust Company changed "from his name to “Daniel I. Broderick, Trustee, in trust for himself and Mrs. Fannie Oliver Broderick, joint owners, subject to the order of either, the balance at the death of either to belong to the survivor and it so continued to the death of the wife. Into this bank account both deposited their individual funds, including the income' of $42.50 derived from $2,000 of United States Treasury bearer bonds, which were delivered with the letter of June 12th, 1930. They also deposited in that bank account the income derived from their jointly owned securities, which amounted to about $1,100 a year, and after the letter of June 12th, 1930, the trust company deposited in the joint account the income from all of the securities so deposited with it by the Brodericks. On August 5th, 1930, the trust company received the sum of $568, the proceeds of $4,000 of bonds of the Indianapolis Northern Traction Company, which were among the securities deposited Avith it June 12th, 1930, and this sum, together wdth $5,081.75 wdthdraAvn by the Brodericks from their joint bank account, was given to' the trust company to purchase, with their approval, $2,500 Virginia Electric & Power Company bonds, $2,000 Wheeling Steel Company bonds, and $1,000 Public Service Company of Northern Illinois bonds, and these were entered on ledger entry No. 6872, and so included in the account of that number.

December 12th, 1930, schedules of the three ledger entries were furnished the Brodericks. Included in ledger entry 6872, and delivered with the let ⁴⁰⁶ ter of June 12th, 1930, was a certificate for fifty shares of stock of the Western Maryland. Dairy Company and registered: “Daniel I. Broderick, in trust for himself and Fannie Oliver Broderick, joint owners, subject to the order of either, at the death of either to> belong to' the survivor.” On February 2nd, 1931, this stock was sold for $2,750, and entered on the ledger account 6872, until February 26th, when the trust company bought $2,500 of Virginia Electric & Power Company five per cent, bonds, and entered this in the same ledger account, 6872. This change of investment was consented to and approved by the Brodericks in a letter of January 29th, 1931.

On June 13th, 1931, Mr. and Mrs. Broderick wrote the trust company: “We hand you check for $2,000 on the Mercantile Trust Company (there held in a joint account). Please invest the amount in your discretion for our joint account.” With this money the trust company bought $2,000 of 4% per cent, bonds of the Consolidated Gas Company of New York, and entered them in ledger sheet No: 6872. This purchase had been “approved” by Mr. and Mrs. Broderick by their letter of June 5th, 1931. By letter of March 17th, 1931, at which time all of the bonds involved in this controversy, except the Consolidated Gas bonds, had been bought, Mr. and Mrs. Broderick wrote the trust company as follows: “As the majority of our stocks and bonds which you hold, under Power of Attorney, are in our joint names, it is our wish that those standing in our individual names, be also’ placed in our joint account, with right of survivorship.” On April 13th, 1931, Mr. R S. Cpie, assistant vice-president of the trust company, telephoned the Brodericks for more definite instructions and more exact information.

Following this conversation, and in confirmation of it, Mr. Opie wrote the Brodericks as follows: “Dear Mr. and Mrs. Broderick: “Referring to the telephone conversation which the writer had today with Mrs. Broderick, we return herewith the direction which you sent us. We understand ⁴⁰⁷ that it is not your intention to have any of the bearer bonds placed in your joint names, but that as to the registered securities which are now in the name of Mr. Broderick you wish them to be put in your joint names. Accordingly, we enclose form of direction, and if it is satisfactory to you will you please sign and return it to us, together with the powers in respect to the securities which should be signed by Mr. Broderick. “Very truly yours, “R. S. Opie, “Asst. Vice-President.” The direction mentioned in said letter as. being returned to the Brodericks is the letter of March 17th, supra.

The direction which was inclosed with the letter, to be returned to the Safe Deposit & Trust Company, executed and dated April 14th, 1931, was as follows: “April 14, 1931. “To Safe Deposit and Trust Company of Baltimore: “We hereby request and direct you to have registered as follows: “ Daniel I. Broderick and Pannie Oliver Broderick, his wife, as joint tenants with right of survivorship and not as tenants in common,’ the following securities now registered in the name of Daniel I. Broderick, viz.: $2,550 Balance $3,000 Chicago Railway Co. 1st mtge. 5% bonds due 1927 Oft. of Deposit Harris Trust & Savings Bank. “$2,000 Baltimore City Sewer Serial 4%% stock due 1950.