New-York tribune., 1915-07-18
MRS. GUGGENHEIM
SUESFOR 100000
IN ALIMONY DEAL
Saws Four Brothers-in-
Law Agreed to Pay After
Divorce Expose.
CHICAGO LAWYER
TESTIFIES FOR HER
Asserts Agreement Was Sought
to Remove Doubt of Validity
of Husbands Remarriage.

Senator Simon Guggenheim. of Colo
RADIO, and his brothers Solomon, Isaac
and Murry. Of the family of mine
owners and smelters, were sued in the
Supreme Court yesterday by Mrs.
Grace Wahl Guggenheim. former wife
Of William Guggenheim, another Of the
brothers, TO recover about 100000 un-
der an agreement by which the plain
tiff alleges the defendants guaranteed
TO her the payment of s42,5O0 in back
alimony and $500 month for life.
In 1901 Mrs. Guggenheim obtained
divorce In Chicago, and eight years
later sought to have the decree set
aside on the ground of fraud. Much
litigation has grown out of this move.
Mr.. Guggenheim has remarked. The
alleged agreement now sued on was
made In November, 1918. and followed
the efforts Of the Guggenheim brothers
to bring TO an end the Chicago action
by the first Mrs. William Guggenheim.
This was at the time when it seemed
likely that indictments might be hand
ed down against persons involved in
the alleged collusive divorce obtained
by Mrs. Guggenheim.
Several lawyers figured in the ne
gotiations for a settlement Of the ali
mony matter, among those mentioned
being John B. Stanchfeld, the chief
Thaw counsel, Samuel Untermyer and
the firm of O'Gorman, Battle & Van
diver. The testimony of Stephen s.
Gregory, chief counsel in 1913 in de-
Tending the action of Mrs. Guggen-
helm, reveals some Of the efforts to
settle. Gregory called on Untermyer.
The latter. it is alleged, had charge
Of the Chicago divorce case for Mr..
Guggenheim. and he received S65 1000
for his services.
Greed of a Gentleman.
Mr.. Gregory told Mr.. Untermyer that
the case of Mrs. Guggenheim to undo
the divorce ought to be settled, as it
was possible that the case might be
decided in her favor.
81 told him." Mr.. Gregory went on,
that whether it was the law or not
that a man should support his wife,
even though divorced, if she really
needed support. | thought it was part
of the creed OF gentleman that if a
man was married TO woman it didn't
make any difference who she was or
what she was, nor how many times
they were divorced, if she was in need
and he had the means il was his duty
TO support her; and that | thought if
this woman would come in and recog-
nize the decree by claiming under il
and asked to have a readjustment Of
alimony it would be a judicious and
humane thing 70 do to make a perma-
nent provision for her support-not
give her a lot of money for her TO
squander then, but provide for GER
tain stipulated income which she
should have. Mr. Untermyer told me
10 have that case settled"
Mr.. Gregory said he then called on
John n. Steele, general counsel for
NJ. Guggenheim's sons. 81 made the
same general statements to Mr.. Steele"
the lawyer testified, that | had just
made to Mr.. Untermyer. He wanted
to know if the thing could be done
legally and in what manner said
| thought it could be done, and that
il she would come in and ask to have
her alimony adjusted, why that would
at least establish beyond doubt the
integrity of the decree so that she
could never assail it, and thus secure
the validity of the marriage of William
Guggenheim and his present wife and
establish the legitimacy of his son, and
that the consequences of a possible ad-
verse decision were so serious to con-
template that this was a very impor-
tant consideration. Mr.. Steele repeat
ed what Mr.. Untermyer had said to
me-that it was the plan OF the four
brothers other than Daniel and Will
lam. to make an adjustment of the
matter"
Gregory went on to testify that
John B. Stsnchfeld was then author
lied to meet him in Chicago on the
settlement. Stanchfeld was unable to
60 to Chicago, but the negotiations for
settlement were continued. the lawyer
said.
Indictment Was Discussed.
It was at this stage that the law
firm of Senator O'Gorman came into
the case as counsel for the four Gug-
genheim brothers, who were trying to
settle the alimony claim. Mr.. Gregory
again came to New York. this time ac-
companied by his colleagues in the
case, and conferred with Senator O'Gor-
man, Mr.. Battle and Harold Content
The threatened criminal proceedings
in Chicago were discussed, and Mr.
Content said, according 70 Gregory,
that "it would be a terrible thing if
man like Daniel Guggenheim were in
dicted in that connection" IL was
then agreed that counsel for Mrs. Gug-
genheim was 10 move before a judge
for the readjustment OF alimony, she
thus recognizing the validity of the
decree.
"My impression would be- Mr.
Gregory testified, that il was stated
or referred to that there was some
thing like $4,000 to be paid in the
nature of back alimony and that pro-
vision was TO be made that Mrs. Gug-
genheim- Wahl should be paid $500 a
month during her life, and that she
should release all interest in her hus-
bands property, right OF inheritance.
etc"
Judges Afraid Of II.
Mr.. Gregory said ne argued the mat.
ter before Judge McGoorty In Chi
cago. The court announced that he
was disposed TO consider only q motion
TO expunge the decree from the rec
ords as fraudulent. Mr.. Gregory said
that in conference with the 0'Gorman
firm il was suggested that there might
be a settlement out OF court. bccnuse
the Chicago Judges "n!l seemed afraid
OF H."
There the negotiations ended George
Gordon Battle having raised the paint
that tho Bar Association or Presiding
Justice irErahati. Of The Appellate III |
vision, might hay9 some objection 30
n settlement with Mrs, dasFeHhsim /