New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-12-17

trust he may have been clothed with absolute
discretion and power, but in the absence OF
some such express grant of authority the qaes-
tion recurs, What authority had the trustee to
mako fine investment of which he published
notice7 Third: If the securities TO "Hlch
reference has been mado should continue TO
decline in value as they have before and since
"Trustees" examination who Is reSpohaIpic
for the loss, past, present, and proSpecIFe-hc
or his ccstm gue HUSt1 Fourth: As the III
turc was all Unknown To "lrustcc,' and values
deprnd mon successful results OF very un-
certain and precaIious business, how could he
have been so assured that the supposed sur
plus would be adequate, and never melt away,
as many a supposed surplus had done before
We have made particular reference to tins
case simply 10 illustrate and enforce the arSu-
mcnt. I'm this State the law IL absolutely
stated and defined by the Court OF Appeals III
the case of King VS.. Talbot (lO N \" 10
that a Trustee holding funds for investment Tor
tbe bcucit of minor children must invest the
same in Government or real estate securities.
ANY other investment is a breach OF duty
which makes the trustee personally DaDe. III
the ease above quoted, the late distinguished
judge Woodruff held it to be conceded Ill
England-where great losses to trust estates
have been occasoncd by investments in com
mcrcial and speculative cnterprlSes-that the
rule is and has long been settled That
trustee holding funds to invest for the bcncht
Of his ceslui qpe trust is bound to make such
investment in the public debt, for the safety
Of which the Government is pledged, or in
loans for which real estate is pledged rs sccur-
ity. II would be better for ali trustees ana
ccsf,,i oae trust that this SamtaIy rule which the
wisdom Of ages has adopted and winch the
| courts are absolutely certain to enforce WIN
inexorable rigor, should be observed by all to
whom it applies.
Tins necessarily excludes all speculation, all
investments for an uncertain and doubtful rise
in the market. and Of course everything that
does not take into view the nature and object
of the trust. and the consequences OF mis-
take in the selection of the Investment to be
made.
The court therefor, concluded that the
trustees were not at liberty to invest the fund
bcqueathcd TO the ceytli lUe trust IN stock o.
| the Delaware and Hudson Canal Company, OF
the New-Yor, and Harlem Railroad Company
OF tie Ncw-Nosk and New Haven Railroad
Company, oi the Bank OF Commerce, or OF
the Saratoga and Washington Railroad Com
pany; and that the cestai qae trust WAS not
,,,,,,J q, accent those stocks Is and for his
l...,,c, or tL.. investment thereof. In regard
T., tro b,pds M fine Ind.,1 River Railway
C,iu,a.iy. and of the Delaware and hudson
Canal gou..ry. it appears by a schedule
given in evidence That he former were mort
gage bonds; bat what WIS the extent o. sur
nciencJ OF .Ie security Afforded ~ aHch mort
gage or what property was embraced il IL Gi"
not appear nor dia 1t appear whether there
was any security Whatever Ioi 'ho pay iicN' VI
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