Farwell v. Tweddle

A trust was created of personal property, to pay the income to a certain person for life; at his death, the principal to go to others absolutely. The trustee invested in United States 6 per cent. 5-20 bonds, at a considerable premium. Afterwards the bonds were called in by the government, under its privilege to pay after five and before twenty years, and were paid off at par. The trustee’s accounts have been settled on his resignation, and it has been decided that he is not personally chargeable with the loss of the premium.

The question is now presented, how this loss should be borne ;…