The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1876-03-30
The Rights and Wrongs OF Trustee
ships.

The excitement attending the flight of Mr..
William G. Barrett from New York, under
circumstances of the most painful character,
opens an interesting question as to the rights
and duties of trustees. The whole question
of trusteeships is one of the most important
in a community like ours where there is no
law of entail or primogeniture, where there
are none of those projections to property
which exist in older countries, but which
are not in sympathy with the spirit of our
laws. With us q large and constantly in
creasing body of property is held by trus-
tees-by men who are selected for their
probity, their special fitness for the
transaction of diversified business affairs,
or for reasons of affection, which are gener-
ally so potent in arranging the last wills and
testaments of the owners of large estates.
We have no data upon which to base an ex-
act statement, but we have no doubt that
the amount of property held by trustees is
enormous. Considering the amount of the
property thus held, the fact that it is in
most cases the sole support of widows and
children, and that there is no security
/ a
ton of honor-which is not always barrier
against avarice and criminal intent--andt that
even the laws against its breach are slight
and insufficient in their operation, we must
regard the whole subject as worthy of the
deepest and most careful attention.
Even the moral stain which falls upon a
trustee who is false to his trust is in many
cases allowed to pass away. It is said of
one who thus proved false that in other
| years and under other circumstances he had
committed crime like that for which he is
now fugitive Now, in addition to the
moral and social ostracism which should fall
upon the false trustee there should be q
penal statute of the most stringent char
acter. Thus we send the poor wretch who
steals a ham to prison for ten years, and we
condemn the luckless forger to keep
him company but when trusted
and honored friend or business asso-
ciate appropriates to his own use or
wastes in foolish investments the fortune
left to his care for orphans and widows he
is not even expelled from his place in the
Bar. but permitted to hold his station where
he may in the future repeat The offence. He
is excused on the ground that he had "made
mistakes in judgment" that his investments
had turned out bad" that he had been
deceived as 10 the security, and that he would
gladly make all right elf he could, and so
on and 50 on. Now there is nothing easier
in the world than to so manage trust rs to
have perfectly secure. This, too, is
matter that should be provided for by law,
and not left to the option of trustees who
have lively imaginations and fancy that
every prospectus of q mining company is
Trustworthy. 1t should be declared that the
only securities open to trustees for invest
mint are the securities of the nation, sound
inst companies and mortgages on real
eAate, we'll secured, and allowing for the
natural depreciation even in that prime class
4 property. Nothing should be left to
hance. The trustee who invests his money
h Pacific Mail or Union Pacific or in the
bonds of States like North Carolina and
Georgia, where tho State credit is subordi-
mate to party ambition and parti-
san strifes, should be criminal