The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-01-02
Public Supervision OF Trust Estates.

There are some suggestions i'm regard 10
the accountability OF private trustees
which are now especially in order. While
we reiternte the opinion that both for
public ard private good great many
such trusts might be dispensed with. we
nre awar, that there are many cases
for example those of women and minor
children. in which they are almost in
dispensabie. Rich testators. however, who
intiust to one or more trustees an un-
limited aud unaccountable discretion as
TO the Investment and care of their estates,
DO. IN fact. create situation OF great ex-
posure OF their property aud of all who
are interested in 1t. The question is.
whether legislation can do anything
to protect the bcnehciaries from
the improvidence Of the testators This
again involves the question of the oxpe-
diency OF any legislative interference. As
general principle. the tostameutarv
power over property should be restrained
Us little us may CONSIST with the best
interests of society. Bat then the in
terests of society require that the tes-
tamentary power should be limited in
many ways, aud in all highly civilized
states IL is limited more or less. The lin
Itation which II seems to us II might he ex-
pedent TO make would be not so much u
Restraint upon the power TO create trusts,
rs check upon the administration Of
trusts that repose an unlimited confidence
in the trustees.
II may be said, on the one hand. that
if rich testators are 90 unwise as TO create
trusts of this kind the legislative power
need not concern itself with their want of
wisdom or its consequences. But, on the
other hand, it is not entirely true that the
public has no interest in the situation in
which large estates may ut any time be.
Large properties are neither an unmiXed
good nor an unm Xed evil. As society is
constituted, they are necessity; and
being necessity, il IL u matter Of some
concern to society that they should not be
squandered, even If those who create or
inherit them should not take the best pre-
| cautions against that result. We believe
that the experience OF the best members
of Tho legal profession, who have had much
| 10 do with the drafting of wills, will belr
us out in the assertion that few verY rich
| men make wills that are entirely wise in
| all respects. We do not think Il neoIful
to do ipuch in the way OF helping
men TO be wise about their own affairs, by
| legislation; but in this one matter OF
| creating private trusts with unllmite1
| confidence in the trustees, we think that
| something useful might be accomplished.
| There is IN general no difficulty in deVising
and executing systems of public snpervl-
sion over the management Of corporate
| trusts; and although Theses systems do not
and cannot always prevent dcfaloations
| and ombeZz lements, yet tho great bulk of
| our mOneyed institutions arc undoubtedly
kept in a condition Of greater soundnes5
| and security by the exercise of public SUI
| peryison than they would be without it,
We do not 500 why some analogous systom
should not be applied TO the private trusts
created by wills, marriage settlements,
| and tho like.
The personal responsibility OF trustees
| who are guilty of abuses Of their trust j. II
very inefficient security. II comes int
play Only after the mischief has been done
and III nine cases out of ton il amounts t.
loihing Now II there were Z judiclal
| tubuual--for eXlmple, n special public
! officer TO whom all private trustees OF
| property exceeding ccrtain amount wer.
obliged 10y law 20 exhibit periodically their
accounts and statements of their invest
| 'rell-, with pONer u chango tha trustees
| or iO direct n change Or the investments
mach mischief might be prevented
| Courts of equity can exercise something
vi this power now; but they cannot inter