Hughes v. Drovers' & Mechanics' Nat. Bank

Page, J., delivered the opinion of the Court. The object of this proceeding is to require the appellee corporation to deliver up to the appellant, trustee, fhe certificate of twenty shares of its stock, or a new certificate for that number of shares, or the equivalent of them in money. There are but few facts in the case, and these are undisputed. John Carnes of Baltimore City, deceased, by the. second clause of his will devised and bequeathed to his “married daughter, Margaret Pawley, house No. 128 N. Eden street; I also give her twenty shares of the Nat.

Drovers’ and Mechanics’ Bank, par value one hundred dollars each ; I also give her one ground rent on the N. E. corner of Monument and Durham streets, and I also give her whatever may be due me from two shares of the East Balto. Permanent Land Co. and Building Society, all of which is to be transferred to her in her own name, to use the interest ⁴²¹ thereof as long as she may live, and at her death to be equally divided among her children, unless she becomes a widow, then she is to have full control of this bequest, to do with it as she pleases. I also give her the amount as shown on my book due me by her husband, Finley Pawley. ” On the 15th of May, 1884, the Orphans’ Court of Baltimore City ordered and directed that the “said executrices have transferred to the legatees under the will, viz: Margaret Pawley 20 shares of the National Drovers’ and Mechanics’ Bank of Baltimore ; Andrew J. Carnes five shares of the Consolidated Gas Company. ” Thereupon the stock of the National Drovers’ and Mechanics’ Bank, being the stock now in question, was transferred to Margaret Pawley, who later on sold it to various persons, and used the proceeds thereot for the support of herself and her family. It is not contended that the bank had other knowledge of the condition of Mrs. Pawley’s ownership than that which appeared from its own records.

None of the stock was purchased by the bank on its account, and it had nothing to do with the transactions by which the title passed from Mrs. Pawley, except to permit the transfers to the purchasers to be made on its books. Upon these facts, it is contended by the appellant that Mrs. Pawley had only a life-estate in the stock, and it was the duty of the bank to see that no transfer should be made by her that did not protect the interest of the persons entitled to the fund after her death—and this, notwithstanding the order of the Orphans’ Court. This conclusion, it is argued, ensues from the fact that by reason of the transfer of the executrices of the will of John Carnes, the bank had notice of or was bound to know the contents of that instrument, and such knowledge, as was said in Ehlen's case, 72 Md. 218 , “ continued all the way down.” Passing by, however, the effect of the order of the Orphans’ Court and assuming, for the sake of the argument, that under all the circumstances of the case, the bank must be charged with full notice of the will and its contents, let ⁴²² us inquire what were the rights of Mrs. Pawley in and concerning the stock. It was insisted by the appellee, that “no trust whatever was created” by the second paragraph thereof; that the words—“to use the interest thereof as long as she may live and at her death to be equally divided among her children, unless she become a widow, then she is to have full control of this bequest, to do with it as she pleases ”—when taken in connection with the direction to “ transfer to her in her own name,” ought to be regarded as words of recommendation only, and insufficient to raise a trust.

However that may be, it is clear that some force must be given to the words, “ all of which is to be transferred to her in her own name.” It should be noted, that in the first paragraph the testator employs the same words in reference to the gift of real and personal property to his other daughter, on whom he unquestionably intended to bestow all the property therein named,