Morris Cmty. Chest v. Wilentz

• Decision Date: 26 January 1939
• Citation: 124 N.J.Eq. 580,3 A.2d 808
• Parties: MORRIS COMMUNITY CHEST v. WILENTZ, Atty. Gen., et al.
• Court: New Jersey Court of Chancery

3 A.2d 808

124 N.J.Eq. 580

MORRIS COMMUNITY CHEST

v. WILENTZ, Atty. Gen., et al.

Court of Chancery of New Jersey.

Jan. 26, 1939.

Syllabus by the Court.

1. The Chancellor, in his capacity as universal trustee, may in cases of emergency, for the preservation of the trust estate and the protection of the cestuis, authorize and direct the trustees to do acts which under the terms of the trust under ordinary circumstances they would have no power to do.

2. Although the Chancellor always possessed that power as a part of his original inherent jurisdiction, that fact does not deprive R.S. 3:16-17 and 18 of weight and influence, since prior to its adoption, while the Chancellor had exercised the power, there was apparent reluctance on his part as indicated by some of the cases.

3. The Legislature by the enactment of the statute not only made it clear that it recognized that the Chancellor had the power in the premises, but also that economic conditions presently existing were such, in the opinion of the Legislature, that the Chancellor, in proper cases, should act.

Suit by the Morris Community Chest against David T. Wilentz, Attorney General of the State of New Jersey, and others, for permission for complainant to invest and from time to time to reinvest all or a substantial part of endowment fund in common stocks of company named in the complaint and in such other common stocks and investments as might be approved by the court.

Complainant authorized to invest one-third of endowment in common stocks.

Pitney, Hardin & Skinner, of Newark and Frederick Frelinghuysen, all of Newark, for complainant.

Leland B. Garretson, of Morristown, for All Souls Hospital et al.

David T. Wilentz, Atty. Gen., pro se.

STEIN, Vice Chancellor.

The complainant, The Morris Community Chest, is a charitable corporation duly organized under the laws of this State. It was organized for the purposes, among others, of encouraging and engaging in the federation and coordination of the welfare work in Morris County; providing an agency through which worthy charitable relief, social welfare and like activities of general concern in that County might unite their appeals to the public for financial aid and support, and of organizing and conducting campaigns for voluntary subscriptions and contributions to such activities.

Harriet Shelton Sherman died July 9, 1931, and by her last will and testament provided an endowment fund in the fifth article thereof as follows: "I give, devise and bequeath the sum of $10,000. Ten Thousand Dollars to the organization known as The Morristown Community Chest, and to start an Endowment Fund, if one has not already been started, and the interest only arising therefrom to be used yearly as though it were a contribution from my late husband, Gordon E. Sherman and me."

Later, under the last will and testament of Edith Sherman Knox, a legacy of $59.000 was bequeathed to the complainant "to be by the said Morris Community Chest invested and reinvested and the income therefrom to be annually used for the general purposes of the Chest".

Complainant now holds in its endowment fund railroad and utility bonds, the book value of which is $33,075.83, industrial and preferred stocks, the book value of which is $13,763.76, and in cash $22,857.19, making a total endowment fund of $69,696.78.

Complain...