Excerpt from The American Law Relating to Income and Principal The corpus or principal of a trust is not the cash of which it may have originally consisted, or the cash value at the time of appraisal, but the actual property in which it may be invested for the time being. When trust funds are invested in the pur chase of Shares of stock in a railroad company, the principal is, not the cash paid for the stock, but the stock itself, and if that is later sold for more than the trustee paid for it, the increase is not income but belongs to principal. The owner of a mine is likely to consider the product of a mine as income. It is not real income, but is part of the property itself. Although timber is a real product of the land, the production of it covers so long a period that a life tenant or a trustee for a life beneficiary cannot ordinarily treat it as income, because the taking of it strips the land of something which cannot be replaced while the life interest lasts. Other kinds of property, usu ally to a less degree, naturally waste away by being used in the ordinary manner, and the entire product cannot be treated as real income in the strict mean ing of the word. There must be deductions from the product from time to time to replace the waste in the principal property. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.