The San Francisco call., 1905-02-17
COE WEY ESTATE
IS IN TROUBLE
Charges of Fraud and ''Fren-
zied Finance" Are Lodged
by Husband of Heiress
SALARY AND DIVIDEND
Four Sons of Deceased Are
Said to Have Conspired
to Defraud Only Sister


Allegations that compose a story
of progressive freeze-out, unfraternal
disregard of the memory of a dead
sister and complex financial manipu-
lation of the sort described by Tom
Lawson are contained In a complaint
filed yesterday by John w. Havens.
executor of the will of Gertrude Goe-
wey Havens, his wife, who died in
June, 1903. The defendants in the
sensational suit are well known here
and across the bay-Charles H., Her
bert S., James M. and Frank B. Goe-
wey, A. Loessel and Frank v. Wright,
officers and directors of the Goewey
Estate Company, as well as the COM
pany itself and the Guaranty Loan
Company, corporation alleged to
have been organized for the purpose
Of assisting the Goeweys in their con-
spiracy to defraud the estate of their
sister out of it's interest in the COM
pany, which holds the 100000 es-
tate of their father. James Goewey'
deceased.
The Goewey Estate Company was
organized In. April. 1903, by the chill
dren of James Goewey, and the prop
erty was then appraised at s17S,000.
Mrs. Havens died three months later.
and on account of her illness had
never attended the meetings of the
directors, her brothers. She was sue
ceeded on the board by Wright, to
whom her brothers each gave one
share of stock. Each of the children
hol cl, of 20
stock. but Franks holdings have
since been transferred to Herbert,
though Havens questions the good
faith of the transfer.
In the complaint, after the various
interests are explained, it is alleged
that the brothers confederated to de-
fraud Gertrude out of her rights and
divert the income of the estate to
themselves. In May, 1903, it is
charged, in pursuance of this con-
spiracy, they voted a salary of $50
month to Charles Goewey as presi-
dent of the company, and $3.50 a
month to James as secretary. but the
duties of their respective offices, it
is said. were not worth SIS a month.
On June 19, 1908, few days after
the sisters death, they resolved to
suspend the payment of dividends,
and Havens expresses the belief that
| since then the large earnings of the
estate have been misappropriated.
PAYS ASSESSMENT.
On March 4, 1904, an assessment of
| $40 a share was levied on the COM
pany's stock. and it is declared that
this act. was in further pursuance of
the conspiracy, the brothers believing
| that their sisters estate was without
| funds. and, a general administrator
not having been appointed, it would
be impossible for money to be raised
with which to protect her stock. How
ever, the husband, Havens, paid the
assessment of $4,000 out of his own
pocket. AT this time. it is alleged
the company was in receipt of S10,-
900 a year, in rents and profits, over
and above all expenses, and the debts
| amounted to only $4,000. In April,
1904, the directors again voted $3.50
month each to Charles'and James as
salaries, and in June added 500 a
month for Herbert, for whom the Of
flee of building inspector" was Gre
ated, although, it is said, there were
no necessary duties for him to per-
form.
On April 90 last another assessment
of IS share was levied and Havens
paid the $1,000, while the debts of the
company were only $4,000.
On June Is, says the complaint, the
Guaranty Loan Company was organ
lied with capital stock of 100000.
none of which was paid in, and the be-
lief is expressed that the Goewey
brothers own all the shares and man.
age the concern for the purpose of
speculating with the funds of the Goe-
wey Company. In that month, it is
charged, the Goewey Company was
out of debt and the conspiring direc-
tors voted to loan $4,000 to the new
guaranty company, which the Goewey
Company was not able to advance
without borrowing for itself. To get
around this obstacle the Goewey Com
pany borrowed $4,000 in July from
the French Savings Bank, giving a
mortgage to secure it. From this the
$4,000 was advanced to the Guaranty
Company and the latter invested the
sum in San Francisco realty.
The $4,000 loan was small begin
ming, according to the complaint, and
on October % the Goewey directors
voted that $4,000 more be borrowed
from the French Bank and that
$4,000 be loaned to the Guaranty
Company. Of this latter sum, it is
said, 1000 has already been paid
and the balance is about to be paid,
and on the strength of the loan the
Guaranty Company is building an
apartment house for speculation on
its $4,000 lot.
NEW JOB PAYS WE'LL.
In August of last year, it is stated,
James resigned the secretaryship of
the company and took the new office
of managing director" at salary of
$500 a month. while Loessel was en-
ployed as secretary at SIS a month
and later paid $25.
| The purpose of all these acts are set
I