Not Authorized to Invest More Money in Bank Stocks.

Question 42.— The trustees of an estate are entitled to an allotment of new stock about to be issued by a bank, at a price which would give them considerable profit, but they are debarred by the terms of the trust from investing further moneys in bank stocks. Is there anything in the Bank Act which would authorize their disposing of their rights to the new shares, or are they under any disqualification as trustees in this respect ?

Answer.—Leaving out of consideration the right of the directors to make regulations respecting the transfer of shares, which would not be likely to affect the question, no special authority in the Act is necessary to enable shareholders to sell their rights to the new shares, and trustees have the same power in this respect as other shareholders, which they would, we think, be bound to exercise.