Downing Estate

Opinion by

Rhodes, P. J.,

This is an appeal from a decree of the Orphans’ Court of Philadelphia County surcharging the appellant, as trustee, for a portion of the loss on an investment. The court in banc held that appellant, in purchasing for trust investment a mortgage of $125,000 formerly held in its commercial department as collateral security for a loan of $70,000, violated the rule forbidding self-dealing by a trustee.

Appellant recognizes the rule, set forth in Tracy et al. v. Central Trust Co., 327 Pa. 77, 192 A. 869, and Lewis Estate, 349 Pa. 455, 37 A. 2d 559, which forbids self-dealing…