The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1907-09-27
DIVIDENDS
WORRYING
EXECUTORS
Trustees Of BalIantine Es-
tate Ask Directions From
Court About Estates.

John o. II. Pitney and Henry Young
IT,, trustees with Jeanette Ballantine
and ]. Herbert Ballantine, of the immense
estate left by the late John II. Ballantine'
who died lin this city April 81, 1895, were
before yIce-Chancello Stevens today on an
application to have the court establish a
binding decree on all the heirs of the es-
tate with respect to the continuance and
further maintenance Of a sinking fund ana
premium account established by the tesla
tor for preserving the book value of his
securities and to prevent depreciatlop
thereof by the amortizlng or maturity OF
the bonds.
The formal parties to the suit, which Is
entirely friendly. are. Jeanette Bailantine,
widow of the t~estator, complainant, and
Alice l. Young. the only daughter, de-
PENDANT. Mrs. Young is the wife of Henry
Young, jr. Former Judge Gilbert Collins,
Z. @. Keasbey, John o. II. Pitney. Prose
cutor Henry Young and Henry Young, jr,
appeared as counsel.
The papers in the suit are volumlnious.
The bill shows that at the time of the
testator's death he named as executors his
widow, Jeanette: his sons, Robert f., }.
Herbert and Robert d., who proceeded
after the probate of the will and the issu-
ance to them of letters testamentary TO
discharge all the debts. legacies and other
obligations in the will and its codicils. II
shows that on May 26, 1902, by a decree
of the Court of Chancery, Robert D. was
discharged from trusteeship and John 0. H.
Pitney was substituted in his stead.
The two brothers Robert L. and Robert
D., died respectively December 10 and ..
1896, the latter while travelling in Alber-
marie County, Virginia. On January IL
the surviving trustees nominated Henry
Young, jr., trustee, in place of Robert f.
In the will left by Robert D.. he directed
that Henry Young, jr., and John o. Fl.
Pitney be paid over the balance of the
estate TO which he might be entitled.
The bill also shows that the only liv-
ing beneficiaries under the will of John H.
Ballantlne and under the appointment of
Robert d., are the widow Jeanette; Alice
1. Young aud her husband, the latter as
trustee; the two surviving SONS, j. Her
bert and Percy; Henry Young, 3d., Alice
b. Young and John Ballantine, young in
FAINT children of Mr.. and Mrs. Henry
Young, ,jr.; John II. Ballantine and Her
bert Wilgus Ballantine, children of ]. Her
bert; Peter and Robert w. Ballantine, chill
dren of Percy; John o. Ii. Pitney as truss
tee.
The averrments in the bill set forth that
at the time OF the testator's death he
possessed large blocks OF stock OF the
Pullman company. On August IS, 1898,
this company declared an extra dividend
npon these holdings, of 20 per cent. cash
and on November 90, 1893, an extra stock
dividend equal to so per cent. The trustees
say that on due inquiry they ascertalned
these dividend declarations were the earn
ings and accumulations on the stock held
by the ~testator during his life and they
therefore credited the increase to the prin-
cipal of the estate.
Recently, says the bill, another extra
stock dividend. equal TO &c per cent, repre-
sentlng earnings made on the estate holds
ings since the death Of the ~testator, has
been declared.
1t is this latter big dividend that forces
the trustees into court to ascertain the
proper course to be followed in crediting
this increase. and they ask the court If
the claim of those heirs entitled to the
income of the estate that this extra divi-
dend shall be distributed in the proper
ton they arc entitled to income be con-
firmed by the court, and IL not, that the
court shall determine how much of the
dividend shall be credited to income and
how much to the principal, so that the
trustees may be protected in any pay
ments or allotment they may make, and
that those interested may be bound
thereby.
Besides the large holdings of Pullman
Company stock the estate holds bonds
of the Long Dock Company, Essex
Ct unit Court Housr Morris and Essex
Railroad Company. United New Jersey
Railroad and Canal Company, and some
forty or fifty different varieties of gilt
edged stock in corporations. railroad and
industrials.
In Mr.. Pitney said that on
the death of Mr.. Ballartine his trustees
discovered he had established a system of
accounts for his bond and stock invest
ments which was intended to maintain
them at a fixed value. On bonds having a
long time to run he deducted a certain
percentage of the income derived there
from, as a premium or sinking fund to be
used in purchasing other bonds on their
maturity equal in value and income earn
ings as those they replaced.
These bonds,' said Mr.. Pitney, ARE
always at a premium, so the testator es-
tablished this method so that his estate
would have funds to pay these premiums
without interfering or depreciating the
amount of the estates holdings"
Mr.. Pitney said it had been the pur-
pose of the trustees to carry out this
plan of the t%estator. but that in the work
ing out of the system some division of
opinion had arisen between the life ten
ants and the other lleirs which it was
necessary now TO have the court to sdju-
dictate fol-, the protection of the trustees.
prosecutor Young, who argued in behalf
of the tenants, commended that even if
the court held that the devidends declared
by the, Pullman Company, which nave
been paid out by the trustees should have
been held for the remaindermen as well as
the big tenants, there can be no recovery
so far as tn payments heretofore made.
He contelded that such distribution as
has been made was in accordance with
existing laws, and that even il a recent
decision causes a modification or different
Interpretation of the law. the acts of the
trustees were on good faith and in con-
formity with existing decisions.
Vice-Chancellor Stevens reserved deci-
sion and took the papers IN the case with
the remark that as the case presented it,
self TO him. he would be forced to depart
would meet the peculiar problem pre-
scented.
MONEY ANN ExcuANcr