Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1908-12-16

sage W II Tduh w. 0oulu, III duulllOu
to that, Pauley afterward executed a
deed of the premises mortgaged to
Frank w. Gould, personally, and not
in any representative capacity or as
trustee. This mortgage and deed rep
RESENTED an investment of $4,000.
In the Butler transaction the pro-
cedure was substantially the same.
Charles r. White conveyed his inter-
est, whatever that was, to Butler, a
mere nominal grantee, and Butler exc
cuted this mortgage on 5000 acres of
land in Tennessee, for $4,000, to
Frank w. Gould, and at the same time
conveyed these lands to A. B. Town
drow, the son of Benjamin R. Town
drow, who was the manager of the
Illinois Straw Products company, and
who was largely instrumental in con-
summating the trade or deal with
White. But these securities, or pre-
tended investments, to-wit, the Chi
cages or deeds involving the 10000
acres of land in Tennessee are, as it
appears from the evidence, valueless;
the lease held interests in the Chicago
property had to be abandoned as the
expenses and taxes connected with
the same exceeded the income of the
same and a large sum would be re-
quired for necessary repairs and the
light
The Tennessee lands yielded no in
come whatever, in fact, it appears from
the evidence that White, the party con-
veying the same had no title to said
land, or that this title was, to say the
least questionable, even assuming that
| these so-cailed securities were to be
considered as investments of the
| Reyes funds.
Loans Not Authorized.
| 1t appears from these loans Mr.
Gould made as trustee and from the
funds of the trust estate to the Straw
Products company, business in which
Mr.. Gould was personally interested
he having been an active an interested
member of the Moline Land company
and whose property were used in the
purchase of the Illinois Straw Products
company, were wholly unauthorized by
law and Were made in legal disregard
of the trust confided to him and fol
purely personal purposes; for while
these loans were being made he was
himself actively connected with and
interested in the Illinois Straw Pro
ducts company.
/ The only investment of the Keyes
funds in these transactions was rep
resented by the original notes of the
Straw Products company, although thi!
; investment was illegal and unauthor
lied by statutes.
i But when these notes were can
celled and delivered up by Gould WHIT
took for the cancellation the 100000
of the preferred stock of the Illinoi
Straw Products company in his owl
name personally, it ceased to be an in
. vestment Of the Reyes estate; conse
, quently all the subsequent transaction
, and juggling with mortgages AM
, deeds in the names of Jenkins, Pauley
Butler and Gould respectively, doe
, not represent an investment of tn
Reyes funds; the original conversion
, of this fund by Mr.. Gould, in takin
. the preferred stock of the Illinoi
/, Straw Products company, eXtinguishe
: the investment as Reyes investmen
, and gave these transactions the cha
acter of a speculation Or undertaken
of Gould personally; nothing but a
absolute or complete Reimbursement
and the exercise of the strictest goo
!. faith could make reparation, and ther
y is no evidence that such was done.
9 The Masters Findings.
/ Taking this view of the matter
n considering of the evidence adduce
), the undersigned does find:
o THAT all the securities scheduled b
the petitioner herein are securities b.
8 longing to the Keyes estate and il
!, lvestment Of the funds of the same, an
l. should be accepted as such by the tru
4 tees appointed by this court to SUI
;, coed Mr. Gould, with the exception
). No. IA schedule one, being the Butte
Il transaction involving $4,000; No.
O schedule five, being the Pauley tran
a action involving $4,000, and No.
a schedule six, being the Chicago leas
n held property involving 100000, an
o these securities represent no inves
:, ment of the Keyes trust estate ar
- should be repudiated as such by tt
:, trustees.
- ''All of which I respectfully subm
this Sth day of December, 1908.
JOSEPH L. HASS,
Master in chancery in and for Roc
| To1,,.xl zo,ot,, Tll;-1,.