TRUSTS - INVESTMENT OF TRUST FUNDS IN THE SECURITIES OF PRIVATE CORPORATIONS

The trustees of a charitable trust established for the erection and maintenance of a hospital sued the state attorney general as a representative of an unnamed class of beneficiaries to secure the approval of certain investments of the trust fund. The transactions in question were investments in the common and preferred stocks of private corporations. Held, the trustees had authority to invest in the common and preferred stocks of private corporations provided they exercised a reasonable degree of care under the circumstances. Rand v. McKittrick, (Mo.

1940) 142 S. W. (2d) 29.