The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-12-30
The Insecurity of Trust Money.

The dishonesty of OTIS ID. SWAN reaches
much further in its consequences than
merely TO the persons whom he has robbed.
Coming, as il does, upon the heels OF n
number OF similar rascalites, il strikes a
serious blow at the already lettering conf
dence of the public in trusteeships, and
may possibly overthrow It.
The practice of giving property to one
person to hold for the benefit Of another is
as ancient rs civilization. Custom first and
legislation afterward have prescribed its
forms and defined its limits, until it hls be-
come "a familiar method OF providing for
women, children, aui others, on whom il
lie desired TO bestow an income without the
risk and care of the principal. In this city
alone there are thousands whose sole sup
port is derived from property held by trus-
tees under wills, marriage agreements and
similar documents. Dcfacltions like those
of NIcoLL, BARRETT and SWAN plant the
seeds OF doubt aud anxiety in the breasts
of every one Of these. aud throw discrcdit
upon a system which they have hitherto
regarded rs the perfection Of safety Ricli
men who have contemplated il rs a pro-
vision for their families after their death,
may well pause and consider before they
place their hard-earnCd fortunes at the
mercy OF men whom they now suppose 10
bo honest, but who may, when it Is too
late, be found TO be unprin1ip led scouu-
drels.
One remedy for the evil might be found
in n law max ng breach of trust crimi-
nal offence, punishable, like larceny or
highway robbery, with Imprisonment in
would not meet the requirements of the
case. The men who are usually selected
Ms trustees are quite rs sensitive TO the
ignomiuy which already attaches to fail
nre in their duty rs they would he to that
of Il felon's cell. When they yield to
temptation II IS in the face OF dishonor
Rs terrible as any which a court could IN
nict. They do not mean to rob their VIC
Tins; on the contrary, they firmly expect
10 restore every dollar they take. Their
inability TO do 50 Il as much dlsappoiul-
ment TO them rs to anybody, and when
they discover IL, no fear of consequences
will help thein to reirace their steps. The
money Is gone, and all the penalties in the
world cannot bring It back.
II has also been suggested that greater
safety would be attained by selecting cor
porations instead OF individuals rs trus-
tees. Tue objection is that corporations
have 10 be managed by individuals, SO
that we come back 20 individual RESPONSE
bilty after nj; aud the frequent ruin oil
banks, trust companies, ana savings nsu-
buttons by their officers proves that hui
man nature is rs weak in then case as IN
that ~ unofficial persons. When tue ohio
Life and Trust Company, for example
failel, il was found that its Secretary had
been permitted TO have Unlimited oontrol
of las funds, aud that he had dissipated
every cent IN speculation. Tho Freedman 5
Savings Bank, which hnd Mt one time a
national repuiat on, was robbed by It's Re-
publican managers OF everything, so that
IL cannot make any dividend whatever 10
Its credilOr-. Aud some OF the broken
mvin1s banks now winding up = his city
Will be able 10 return only "a few cents on
the dollar. As SHAKESPEARE says, ~ en-
arc but men, aud whether you call them
by thcir own or by n corporate name
makes no difference in their character.
settled conviction of the Insecurity Of
money pat into the hands of trustees
would not, however, bealtoscthor harmful.
IL ii for the public interest that living
without work shOuli not hs absolutely
safe. II the estates Of richinon should mere
after he let moro directly within the
control Of their heirs, II would be a benz
eft both 10 the hers and to the COM
munity. They would take an interest in
public Affairs which as mere recipients OF
al INCOME from Invested property they
cannot lecl aud The occupation wi IA which
IllaNas a
.uem from many foliies which idieness
Inevitably breeds. Their wealth would
w made useful IN ways in which trus-
Noe cannot employ it, and the stagna.
Lou which attends trust funds would be
A'0'aed' cons. 1eration Of these factl