In the Matter of the Accounting of Frederick H. Stevens, as Trustees Under the Will of Julia A. Brooks…

Summary

The Court of Appeals affirmed that the appreciation from the sale of the Brooks Locomotive Works stock is principal, not income, and that premiums paid on bonds purchased by trustees must be deducted from interest to preserve the trust principal. It modified the lower court's decree and remanded for a proper accounting. Justice Edward T. Bartlett dissented, arguing that the hard rule should not apply and that the life tenant should receive the full income.