New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-07-10
STALLO HEIRS CHARGE
IS DENIED BY GEN. IVES
Declares He Was Not Forced
Out as Trust Company PreSl-
dent by Mismanagement.
LOW $2,700,O0O SHRANK
Former Head of Metropolitan in
Affidavit Says Stock Sale Was
Forced-Was Friend of
Girls Grandfather.

General Brayton Ives filed an affidavit
in the Surrogate Court yesterday In
which he denied that he was compelled TO
retire from the presidency Of the Metro
politan Trust Company because Of the al
legged Acknowledgement by that corporation
of the estate of Alexander Mcdonald. who
was a vice-president Of the Standard OH
Company. The sworn statement was
made BY General Ives in connection with
the application of Miss Laura Stallo, a
granddaughter of the late Mr.. Mcdonald,
t. have the Metropolitan Trust Company
removed by Surrogate Cohalan as ad-
ministrator Of the Mcdonald estate on the
ground that it's management by the trust
company had caused 1t loss OF $1,000
00O General Ives explained that he re-
tired on the advice Of his physicians, but
that ne continued as a director and
stakeholder.
Miss Stallo daughter Of Edmund X
Srallo, who was interested in several cor
porations with Mr.. Mcdonald. also made
the application in behalf Of her sister
Helene, who recently married Prince
Michel Charles Joachim Napoleon Murat
The two sisters inherited practically ali
OK the estate of their grandfather
The charge was made that the trust
company sacrificed at inadequate prices
securities that had been deposited by MI
Mcdonald for q loan of S2,70O,OO0. These
securities included stock OF the STANDARD
Oil Company and the New Orleans, Mobile
& Chicago Railroad. 1t is contended by
Miss Stallo that the value OF these stocks
would have been greatly increased II they
had been held.
General Ives told in his affidavit about
10000 shares of stock given him by Mr.
Mcdonald in payment for services in re-
organizing railroad companies In which
the oil man was interested. He said Miss
Stallo told him she knew about the gift
and that she and her sister were salts
fed with the action of her grandfather
whom she quoted as saying that General
Ives was "the best friend he ever had.
Miss Stallo. he declared. added that she
and her sister shared in this view.
General Ives explained that In 1907 and
1908 Mr. Mcdonald and Mr.. stallo asked his
aid I'm reorganizing the roads later merged
into the New Orleans, Mobile Chicago
road. This was to create q sale of Sc
curities of the consolidated roads. Be-
cause the earnings were not up to eX-
pectations there was danger of a receiver
being appointed In 1871 according to Cen
erai Ives. Several offers for the railroad
stock i'm his hands were rejected. Suisse
auently the stock was sold to William c.
Sheldon for $l,55O,000. This sale was made
cf affn N
Ives. James G. Cannon and T. De Witt
cuyler.
However, General Ives denied that he
ever had any interest. for he refused to
assume the liability OF an assessment OF
so share through the plan Of reorgani-
cation and returned the 10000 shares. Nc
Donald and Stallo paid the assessment.
Certificates of deposit on which assess
ments had been paid entitled the holder
10 bonds 10 the amount OF the assess
ment. common stock to I'VE times the
amount and preferred stock for 20 per
cent of the assessment. He, Mcdonald
and Stallo wrote TO the treasurer OF the
trust company to hold the certificate oil
deposit subject TO the order of General
Ives. This said General Ives, constituted
the transfer to him of the stock. He said
the trust company dealt with him as II
would with any holder of certificate OF
deposit and IL was In this way that he
acquired 10000 worth OF bonds, the 1000
shares of common stock and 400 shares Of
preferred stock. The interest Of the Met
ropolitan Trust Company. said General
Ives. was entirely impersonal.
General Ives said he placed the securi-
ties he obtained In the hands Of the law
Arm of Carter. Ledyard e. Milburn. and
authorized them TO use the securities In
enectlng settlement with those who had
claims against the Mcdonald estate.
In a prior proceeding 1t was shown that
the Standard Oil stock held by the Metro
politan Trust Company was sold Tor
500 600. the best market price at that time