In Re the Accounting of Sanford

In City Bank Farmers Trust Co. v. Cannon (291 N. Y. 125) we stated the . rule of undivided loyalty which, in the absence of statute, contrary directions in the instrument creating the trust, or estoppel, is applicable to retention or purchase of its own shares by a corporate trustee. The respondents urge that the rule óf undivided loyalty there stated is not applicable here because the shares in the corporate trustee came to the trust from the estate of the testator and because of the broad powers granted to the trustees with respect to investments.

The testator died on October 5, 1926. His…