36 N.J. Eq. 405 | New York Court of Chancery | 1883
The bill is filed by a trustee for directions as to investing-certain funds in its hands as sinking funds for certain bonds-issued by the United New Jersey Railroad and Canal Company.. Those bonds are of three issues, one dated March 1st, 1869, of one thousand eight hundred and forty-six bonds for £200 each, amounting to £369,200, with interest at six per cent, per annum another dated April 25th, 1871, of one thousand eight hundred* bonds, for $1,000 each, amounting to $1,800,000, with like interest; and the other dated May 1st, 1871, of two thousand bonds, for $1,C00 each, with like interest. All the bonds are-payable in 1894. As security, the company agreed with the
It is the rule that the directions for investment contained in an instrument of trust are imperatively obligatory on the trustee; but by the direction of a competent court, he may depart from them. The court, however, should exercise its authority in such cases only in view of the existence of a necessity. The power of this court to abrogate or annul any of the terms of the before-mentioned agreements, should not be exercised except for clear and cogent reasons, and with full opportunity to the parties who