The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-05-20
STRANGE OELRICHS
AGREEMENT Barred
Despite Contract Appraisal
Shows Schwab Bought
Worthless Stocks.
SECRECY SOUGHT BY ALL
Deceased Partners Interest in
Business Is Valued at
A11,267.

Documents and testimony submitted to
Transfer Tax Appraiser John r. Martin
In fixing the value OF the estate OF Gus
tav ". Sehwab. member of the firm Of
Oelrichs & Co., agents for the North Ger
man Lloyd Line. became public yesterday
in spite OF efforts by the Schwab estate
and Oelrchs firm to keep them secret.
They disclose an unusual partnership
agreement which began with the establish
ment of the business In 1898 by Casper
Maier. The concern has been known as
Oelrichs x Co. since 1851. At the time
OF MIR. Schwab's DEATH in 1912, he and
Herman Won Post were surviving part
ners OF the firm, having been members
since 1875 and 1856: respectively. The
late Hermann Oelrichs was also "A mem
The features OF the appraisal OF Mr..
Schwabs estate in view of the unusual
partnership agreement were his ownership
OF many securities found to be of no value
b. Appraiser Martin and the fact that he
held many worthless notes The makers
OF some OF the notes were not known to
Gustav Schwab. executor under his
fathers will. who described the business
Of the maker OF note for $4,000 as
borrowing money"
The Oelrlchs partnership agreement
said:
the use Of due economy In his per-
sonal expenses, which he promises
to restrict to such sums as may be
IN accordance with his capital or
share OF the profits OF the business.
The conservative principles which
have guided the business since its
foundation and have successfully
carried 1t through many mercantile
crises will be rigidy adhere to. All
stock speculatlons on the part of the
firm or the partners are absolutely
forbidden. and no speculative pur-
chases shall ever be made without
the full consent of each partner.
The agreement also provided that the
name Of the firm should never be USED
to indorse notes or other documents for
accommodation, and that no member Of
the firm should indorse notes without the
consent OF the other partners No mem
her was permitted to accept a drectorshn
in bank. trust company, Insurance,
realty, railroad or industrial company,
Without the consent OF the other partners.
All differences between tho partners we're
to be settled by arbitration. The good will
of the firm passed to IN. survivors.
The assets OF the Schwab estate in
Guided claim of s66.il7 against the
Reynolds Ice Machine Company. Of which
the decedents son. Gustav, was treas
drer. The estate estimated the claim as
OF no value, out " was appraised AZ
y1,074. Concerning claim OF S7.s4l
against the Londonderry Mining Company
the executor said that the company was
organized by his father and his friends.
but that the company was "A failure and
the amount represented the sum advanced
by Mr. Schwab. Notes Of $1,000 made
by the Nicaragua Cold Mining Company
In 1905 and by the Whitewater Placer
Company in 1906 for $3.tcl are de-
scrihed az worthless. AS are large hold
ings OF stock In these companies.
The appraisal shows that Mr.. Schwpb's
| interest In his firm was estimated al
s4ll.26T, of which sss.76s was his share
Of IS per cent. of the firms profits fol-
/ 1912 \ deduction for Mr.. Schwab's shar,
Of the firms bad accounts amounted &c
sl59O2. At the time of Mr.. Schwab':
death the firm had sl,o?5.ss5 invested II
securities OF twenty-five railroad and IN
7 dustrial corporations.