New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-08-18
GARNER ESTATE VALUE
DROPS MILLION A YEAR
Story of Troubles BeSettlng
Property Of Cotton Goods
Firm Told in Court.
HEIRS BLAMED TRUSTEES
Referee Attributes Fact Any
thing Was Saved to Good
Work, Energy and Skill
Of LawyeT.


| The story Of how an estate worth more
/ than ST. OoO.C9o could dwinde in value at
/ the rate of 100000 a year for seven con-
/ secutiye Years was told before Justice
| Greenbaum in the Supreme Court by
I Abraham Stern, referee Of the estate Of
! Garner 4 Co, a cotton goods firm al
| West Broadway and Worth street Ac-
/ coriing 20 the accounting Of the firm. the
estate was worth Si1.62,.l22 in 1905, and is
worth to-day s3.tpogO. The figures were
/ submitted 20 Referee Stern. and his re-
! port was approved hy the court
William r. Garner, founder Of the firm
began business more than sixty years
ago re was one Of the founders Of the
New York Yacht club. and in 1876 he and
his wife were drowned when his yacht,
the Mohawk was capsized off staten
Island.
Under Commodore Gamers viii the
estate was loft I'm trust. with the pro-
vision that the business % Garner & 60.
was 10 continue until after the death Of
Mrs Garner and his daughter. Florence
Garner Then II was 10 be distributed.
cellite and Edith. All three married titled
foreigners. Marcellte chose the Marquis
de- Breuteu and Florence became the
wife o. Sir William Gordon Cumming,
hero Of many wars and owner Of many
thousand acres Of land in New Bruins
wick Edith became the Countess de
Moltkc- Hutfeldt.
Between 1908 and 1912 the character OF
the Garner business underwent a great
change When the accounts were settled
In 1905 the valuation was fixed AT sll,
C2ll2e. the estate including cotton mills
and sums realized from the sale Of goods
IN May. 1912 Justice Greenbaum valued
the estate AT 52.SOS.976 comprising cash,
securities and mortgages exclusively
There Is said 10 be no other instance in
the court records OF so radical a change
in the character Of an estate within the
period OF It's accounting After 1905 the
concern engaged in manufacturing cotton
cloth was on the verge Of bankruptcy,
and the plants had 10 be sold and the firm
incorporated 10 prevent its being wiped
ont by litigation.
Robert Grier Monroe guardian for the
infant heirs Of the daughters OF the
founder. declared the trustees OF the es-
tate. who were officers OF Garner & Co.
had incurred great losses 70 the estate
los speculation and Encouragement. He
charged they had paid excessive commits
slons 20 themselves from the sale Of the
manufacturing properties He also main
tained the money had been distributed to
the adult heirs. the parents OF the infant
children from the principal OF the estate
as income when there really was no In
come
The three daughters all OF whom had
large incomes from their marriage. held
out FOR larger payments on account %
the income from parts Of the sums real
tied by the sale OF the mills and from
the larger stock dividends paid ~ the
estate Their counsel told Justice Green
baum that during 1905 and 1909 the in
debfedness 81 the estate. due 10 the poor
operation Of the cotton mills. amounted
10 more than 100000 and could not he
extended any further The mills were
kept running for two years in order that
they might be sold For more than three
Lady Gordon Cumming and Countess de
Breuteun received nothing from their
fathers estate
The daughters counsel held that 10
press these claims against the trustees /
would wipe out the estate through the
cost % litigation. and he doubted /.
whether anything could be recovered even /
II the claims were pressed. n was shown /
that oscar Huhsa. vice-presdent of the /
trustees. died I'm 1901. leaving no prop /
erty. and William T. Ghorn. the presi- /
dent during tho longest period ~ trustee
ship. had resigned about a year before /
Huhsa died. His place was taken by Lo-
renzo Semple. a lawyer and membet Of .
the firm % Coudert Bros. who was asked .
10 take hold Of the estate TO save 1t from .
total loss.
Referee Stern said IL was due 10 the |
good work, energy and skin OF Mr.. .
Semple that the estate was saved from .
receiyership and total ruin What saved /
II was the sale OF the Duchess County /
and Rockland Paint Works and Clinton
and Frankindale mills. with certain real /
estate for $1,000 The Newburgh Steam
Mills. which started In 1aS were sold /
for $4,000 to the Caldwell Lawn Mower
Company. After much trouble the Read
ing Mills. at Reading Penn, were sold
for $4,000