ports. It is their business to procure goods on freight, or a charter for ships outward bound; to enter and clear vessels at the customhouse; to collect the freight on goods, and generally to take an active part in all business between merchants and ship-owners. Most ship-brokers are also insurance brokers, in which capacity they procure the names of the underwriters to policies of insurance, and settle the conditions of the risk and the rate of the premium. Unlike other brokers, an insurance broker, though he has given up the name of his principal, continues personally liable to the underwriters for the amount of the premium. But he is not liable to make good to the owner of the ship or merchandise, who must look to the underwriter in the event of loss.

A ship-broker is not within the meaning of the statutes for the regulation of brokers, 4 Bing. 301; but a stock-broker who transacts business in the public funds is bound by them. Stockbrokers are paid by a commission, limited by 10 Anne, c. 19, to 28. 6d. per cent, which they are entitled to deduct from the produce of the sale.

An act of 1870, the 33 and 34 V. c. 60, relieves brokers from the supervision of the court of mayor and aldermen of the city of London.

CHAPTER X.
Trustees.

A TRUST is a confidence reposed by one person in some other person, not of necessity expressly, for it may be caused by implication of law. The person in whom the confidence is placed, and who has the legal interest in the property, is called "the trustee," and .the person for whom or in whose favour the trustee holds the estate, or any interest therein, is called the cestui que trust, who has no remedy but by proceedings in any court invested with equitable jurisdiction, as neither the common law nor spiritual courts have any cognizance in matters of trust.

Trusts are, (1) simple, as where property is vested in one person in trust for another, in which case the cestui que trust has the right to be put into actual possession; (2) special, as where a conveyance is to trustees upon trust to sell for the payment of debts. Trusts are also for lawful purposes, as a trust to pay debts, &c.; and for unlawful purposes, as a trust to defraud creditors. There are also public trusts, as distinguished from private trusts. The duration of a private trust is by law limited to the life or lives in being at the time of the commencement of the trust and twenty-one years afterwards. A public (or charitable) trust, on

the other hand, is itself of a permanent character, and cannot be limited in duration.

A trust can be created by the act of a party or by operation of law. A trust by the act of the party must be created by some person, generally called the settlor, who may, if he is competent to deal with the legal estate, vest it in a trustee to execute the settlor's intention.

A trustee must be capable of taking and of holding the trust property. The sovereign may be a trustee, but there seems to be no means of enforcing the trust against the crown. A corporation can be a trustee for personal property, but not conveniently for real property, as no real property can be conveyed to a corporation upon trust without the license of the crown, although the court of Chancery has ample jurisdiction to compel the administration of trust property already vested in a corporation upon the trust attached to it. The Bank of England cannot be a trustee. It refuses and cannot be compelled by law to notice any rights but those of the legal proprietors in whose names the stock is standing. A married woman may be a trustee, but this is inadvisable, as she cannot pass the legal estate without the concurrence of her husband, who is answerable for her acts and liable for her breaches of trust, and who therefore would be obliged, for his own protection, to see to the manner in which she discharges her office. An unmarried woman may be a trustee, but the disadvantages that have been already stated attach to her if she marries. An infant ought not to be appointed a trustee, as he has no legal discretion, and cannot be guilty of a breach of trust. An alien, until lately, could be a trustee of personal estate only, but since 1870 he can be a trustee of real estate also; for by 33 & 34 V. c. 14, s. 2, he is empowered to hold and dispose of all real and personal property (with certain restrictions as to rights) as if he were a British subject. A person domiciled abroad ought not to be a trustee, nor are bankrupts and insolvents proper trustees, though they are not absolutely disqualified. Cestui que trusts are not disqualified, nor are relatives; but still it may be, in a great many instances, inadvisable to appoint them, and the court of Chancery is generally unwilling to do so if it can avoid it.

Care should be taken to choose fit trustees, and also a sufficient number of trustees for safety sake.

On the death of one of the trustees, a new trustee should at once be appointed, unless there are more than two original trustees, when this is not important, so long as more than one trustee is living.

A trustee not having the whole power, and being obliged to join in receipts, is not chargeable for money received by a co trustee ; but where they join in a receipt, and it cannot be distinguished what was received by the one and what by the other, they shall both be charged with the whole. Also, if a trustee be privy to

the embezzlement of the trust-fund by his associate he shall be charged with the am unt.

Trustees are accountable for the interest which they either do or might make from the employment of the money in their possession. They are also accountable for the whole profits they may derive from trading with the trust fund.

As their office is considered purely honorary, they are not entitled to any allowance for their trouble in the trust. Equity will occasionally allow remuneration for the management of the trustfund, where the services of the trustee have been very beneficial, or the duties onerous, as in collecting weekly rents.

Courts of equity will cause trustees, upon their application, to be relieved, if upon inquiry it be found that they have done nothing to render them liable at a future period.

The estates of trustees deceased, who have not acted in conformity with the trust, are liable for the consequences.

Debtors sometimes execute an assignment to trustees of the whole or part of their property for the benefit of creditors. Such trusts can extend only to debts actually owing at the time of executing the deed and though the assignment may purport to be only for such creditors as agree to execute it within the year, yet it is competent to any creditor to come in, even after the year, provided his debt existed at the time of making the deed but after the expiration of a year, it would seem creditors may be compelled either to come in or renounce all benefit from the trust, 1 Vernon, 260. Where personal property is bequeathed upon trust to executors, the probate of the will is an acceptance of the

trust.

By 10 & 11 V. c. 96, means are provided for securing trustmoneys, and for relieving trustees from the responsibility of administering trust-funds, in cases where they are desirous of being so relieved. Trustees, executors, or administrators, or other persons, having in their hands any moneys belonging to any trusts whatsoever, or the major part of them, may, on filing an affidavit shortly describing the instrument creating the trust to the best of their belief, pay the same, with the privity of the accountant-general (now the paymaster-general by 35 & 36 V. c. 44, s. 4) of the court of Chancery, into the Bank of England, to the account of the accountant-general in the matter of the particular trust, and also the court of Chancery may make orders on petition, without bill, for the application of trust-moneys so paid, and for the adminis tration of the trusts generally to which the moneys related. It is further provided that the lord chancellor, with the assistance of the master of the rolls, or one of the vice-chancellors, shall have power to make such orders as from time to time shall seem necessary for better carrying the provisions of this act into effect. To remove certain difficulties under this statute, the 12 & 13 V. c. 74, enacts that the court of Chancery may, upon applica

tion by a majority of trustees or executors, order payment or transfer of trust-moneys, stock, or securities, into the court.

The 13 & 14 V. c. 60, was passed in 1850, to consolidate and amend the laws relating to the transfer of real and personal property vested in mortgagees and trustees. It empowers the lord chancellor to make an order directing that lands or stock, &c., vested in any trustee or mortgagee who may be a lunatic or an infant, or who, being a sole trustee, may be out of the jurisdiction, or whose death cannot be ascertained, or who may refuse to convey or assign trust property to the person properly entitled to it, may be vested in such person or persons in such manner and for such estate as it may think fit. It also gives the court of Chancery considerable power of the same sort in the cases of joint trustees residing out of the jurisdiction, or refusing to act properly in the execution of the trust.

Money payable to infants or lunatics in discharge of lands, stock, &c., dealt with under the act by the court, may be paid into the Bank of England in the same manner as was provided by 10 & 11 V. c. 96, for the payment by trustees of trust-money into

court.

By 15 & 16 V. c. 55, the provisions of the last act are extended in various ways, and the court of Chancery is given power to appoint new trustees in lieu of persons convicted of felony, and to vest the trust estate in such new trustees. And it can also, in explanation of a section in the last act, in all cases where it is expedient, make an order appointing new trustees, where it has been found impracticable or inexpedient to do so without the assistance of the court, whether there be any existing trustee or

not.

By an act of 1859 (22 & 23 V. c. 35), further to amend the law of property and to relieve trustees, a bona fide sale under a power of an estate with timber thereon or any other articles attached thereto, is not to be avoided by reason of mistaken payment to the tenant for life of a portion of the purchase-money as the value of such timber or other articles (s. 13); and when by any will which shall come into operation after the passing of the act, a testator shall have charged his real estate with the pay. ment of his debts, or of any legacy or sum of money, and shall have devised his estate so charged to trustees for the whole of his interest in it, the trustees are empowered, notwithstanding any trusts actually declared by the testator, to raise such debts, legacies, or money, by a sale of the whole or part of the estate (s. 14). The executors named in the will, where there is no sufficient devise, are also given a power of raising money to pay such a charge as aforesaid out of the estate so devised to trustees.

No trustee, executor, or administrator, making any bond fide payment under a power of attorney, is to be liable by reason of the death of the person giving the power.

By s. 30, any trustee, executor, or administrator, is at liberty to apply by petition to any judge of the court of Chancery, or by summons on a written statement to such judge in chambers, for the opinion, advice, or direction of such judge respecting the management and administration of the trust property or the assets of any testator or intestate; and if he acts upon such opinion, advice, or direction, he is to be deemed, so far as regards his own responsibility, to have discharged his duty as such trustee, executor, or administrator, in the subject-matter of the application, provided that he has not been guilty of any fraud, wilful concealment, or misrepresentation in order to obtain such opinion, advice, or direction. By s. 31, every trust instrument is to be considered to contain clauses for the indemnity and reimbursement of the trustees. By 23 & 24 V. c. 38, s. 9, when any trustee, executor, &c., shall apply for advice or direction of a judge under 22 & 23 V. c. 35, the petition or statement shall be signed by counsel, and the judge, by whom it is to be answered, may require the applicant to attend him by counsel, either in chambers or in court, when he deems it necessary to have the assistance of counsel. Trustees and executors

to invest trust-funds in the stocks in which costs under the control of court of Chancery are invested, s. 11. Order to take account of debts of deceased, under 13 & 14 V. c. 35, s. 19, may be made immediately after probate granted.

The 23 & 24 V. c. 145, gives to trustees, mortgagees, and others, certain powers now commonly inserted in settlements, mortgages, and wills. By s. 1, trustees empowered to sell, may sell in lots, and either by auction or private contract. Sale may be made under special conditions, and trustees may exchange or buy in. Trustees exercising power of sale empowered to convey. Moneys arising from sale to be laid out in other lands, or in payment of encumbrances. Until purchase of lands, money to be invested at interest. Trustees of renewable leaseholds may renew, s. 8. Remaining sections relate to powers incident to mortgages, to the investment of trust-funds, the appointment and powers of trustees, executors, &c.

INVESTMENTS.-A trustee may not invest on personal security or in stock of a private company, unless he is specially authorized to do so in the instrument creating the trust. By Lord St. Leonards' Act (22 & 23 V. c. 35, s. 32), trustees, executors, and administrators, are authorized, unless expressly forbidden in the instrument creating the trust, to invest in the stock of the Banks of England or Ireland, or in East India stock, or on real security in any part of the United Kingdom, which includes Ireland. By 23 & 24 V. c 38, s. 12, the section just stated is made retrospective; and by s. 10, the court of Chancery is given the power to issue general orders as to the investment of cash subject to its jurisdiction; and by s. 11, trustees, executors, or administrators, having power to invest upon government security or railway stock, funds,