New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-05-14
ESTATE S6O0,0O0 SHORT
Referee CHARGES Speculation
with ]. B. Hart Property.
JOHN J. NESTElL, TRUSTEE
Heirs at Same Time Enter Suit
Against Brokerage Firm
Said To Be Involved.

There has been filed in the Surrogates'
Court the report of Edward 3. Whitney, as
referee. which shows that John Jay Nestell
has failed to account for about 100000 as
executor and trustee of the estate of Joseph
b Hart, his brother-in-law, Harlem mer-
chant and real estate man, who died in 1873
II is expected that the Surrogate will ap-
prove the report and direct Nestell, who is
now in California, to refund the money due
the heirs of the estate The heirs are Mrs.
Emma ]. Sheridan, Mrs. Irene NJ Collard
and Charles H. Hart, the two daughters
and son of Hart.
The report of the referee charges that
NesteII before he left the jurisdiction OF the
court specialized with the moneys of the
estate. turning over large funds TO his brok-
ers W. H. Goadby & Co, members OF the
Stock Exchange Another phase or the
case came up yesterday in the Appellate
Division of the Supreme Court in the form
of a suit brought by the heirs of the Hart
estate against William III. Goadby and
Charles T. Kflborne, constituting the firm
through which NesteII is said to have dealt,
and in which the allegation is made that
the brokers knowingly accepted more than
$780, 600 of trust funds from Neste1l and per-
mitted him to speculate through the firm
for the benefit of himself and the firm
Harris will made his wife. Nestell and
George W. Hart executors, to serve with
out bonds. Nestell was TO receive $1,000
in lieu of commissions. George w Hart
died in 1896, and Mrs. Hart. the testator's
wife, was never active in the management
of the estate NestelI was removed as ex-
ecutor in July, 1908. The complaint charged
that from the time he became executor to
the date Of his removal he converted and
misappropriated the trust funds, delivering
them to w. H. Goadby & Co. The largest
amounts. it is charged, were used TO buy
industrial and railroad stocks
The plaintiffs were ignorant of these al
legged wrongful acts until after the death
Of their mother in 1907, when they requested
NestelI to give an accounting On August
IS, 1905 W. H. Goadby & Co. delivered to
them securities. some of doubtful value, IL
is charged. But the plaintiffs demanded all
the securities bought with the funds OF
the estate and an accounting of all their
profits and commissions.
The Appellate Division yesterday upheld
a demurrer filed by the defendants because
Nestell was not joined as a party defend
ant. The court also deciued that the suit
for the accounting should be brought by
pointed. %ss saSD
Mr. Whitney in his report to the Surro-
gate says that Nestell failed TO appear be-
fore him for examination on the account
ing which he filed in 1905 His attorney
explained his absence by saying that ne
was sick or was remaining away pending
an appeal But NesteI, it Is stated lelt
the Jurisdiction of the court without eA-
planning his acts
The report gives as a specific instance
Nestelrs withdrawal of $A2S6 from the
estate funds in twelve checks. Whlch dp-
parently have not been returned lie ore"
various amounts, aggregatinS S2Ie'lo'' oy
checks to the order of W. H. GoadDy O.
Co. Pearl & Co. or the Eleventh Waru
Bank. He also drew thirty-four cheeks
aggregating S16,694 to himself INDIVIDUALLY
None of these payments, the referee re-
ports. appears in his account or is sup
ported by any voucher. No explanation mas
been offered by him.
The report details all of Neste1Ps broker
age transactions with the money he con-
troIIed as executor. 1t is shown that NeSteI
had profits on his stock deals ranging from
$50 to A26OOa. The latter amount in secu-
rites was transferred TO him In 1900 These
allegations were the result of an examina-
ton of the brokerage firms books obtained
by counsel for the heirs.
The referee estimates the value OF the
Hart estate at s7S6,sOO- Nestell turned over
property valued at s59s,OO0. leaving sSSS'soo
unaccounted for. The rest OF the money not
accounted for is represented by the income
during Nestel1's trusteeship, which brings
the total amount unaccounted for TO