Aaron
1. Aaron's depositors entrusted him with their money. While given jurisdiction to decide to whom to lend their money, he is required to ensure that the funds are returned. We view Aaron as a shomer, a trustee on the value of their deposits[1] [Dayan Chaim Kohn].
2. Though they did not pay Aaron to manage the Free Loan Fund, the prestige and public trust that Aaron earns as a result of his position, suffices Aaron to assume the responsibilities and liabilities of a shomer sachar, a paid trustee [Choshen Mishpat 72 Pischei Teshuva 10].
3. A paid trustee is liable for losses or theft which he/she could have prevented. Whereas, a paid trustee is absolved from losses due to circumstances beyond his/her control like armed robbers or circumstances of theft which he/she would have been unable to protect [Choshen Mishpat 303:2].
Adler and His Partners
4. Considering that funds generally lack definitive nature, the multiple depositors inevitably form a partnership in the Fund's assets. Losses therefore are to be divided proportionately [Choshen Mishpat 292: 10, Rema].
(In contrast; multiple depositors of definitive items retain their individual ownership over their respective belongings. They do not generally form partnerships with their co-depositors.
For example, Ari give three suits to a tailor to alter. The three suits remain Ari's even if David dropped off two suits that day - even if the suits were all the same model number, style, and size.
The question would thus arise; were armed thugs to run away with two suits; who absorbs the loss - Ari, David, Both?
Milk from a kosher cow is kosher. Milk from a non - kosher cow is non - kosher. How do we know if that the milk in the container in your refrigerator emanated from a cow that was Halachically healthy?
The Answer: Most cows are kosher. We assume the milk emanated from the majority and need not assume the milk came from the minority of cows halachically unfit for consumption. Halachic terminology refers to this principle is referred to as Kol deparish merubah parish.
In the same vein, Kol deparish merubah parish requires Ari, the depositor of three suits, to absorb the loss [ibid.].)
[1] The Torah however, absolves one who has been appointed to appropriate charity funds at his discretion. He is neither deemed a trustee for the contributors nor for the undefined recipients.
Application
Aaron is absolved from paying for theft due to circumstances beyond his control. As Schmell is a 60% owner of the Free Loan Society's funds, sixty percent of the $50,000 stolen belongs to Schmell who consequently absorbs sixty percent of the loss. The remaining depositors divide the remaining forty percent proportionately.
