The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-07-01
GEORGE ]. GOULD
OUT AS TRUSTEE
Justice Whitaker DenOunces
Custodian Of $80,00O,0OO
Left by Father.
THREE CHARGES UPHELD
DerelictiOn of Duty, Abuse of
Trust and Secret Commits
sions Alleged.

Supreme Court Justice Edward G..
Whitaker removed George J. Gould
yesterday as a trustee OF the $s0.000.-
600 estate OF Jay Gould. Unless Mr..
Gould succeeds in having this action
reversed on appeal the removal means
that the estate, largely consisting OF
railroad securities, will be divided, as
Jay Gould directed It should be divided.
into six separate and distinct trust
funds.
II was George J. Gould's failure, in
fact. to obey this provision Of his
fathers will which was one OF
the reasons sufficient. in Justice
whitaker's opinion. to deprive him
OF the trusteeship: but there were
other causes mentioned in plain
language by the court. He found
on examination OF the 5000 pages OF
af1idavits submitted in connection with
the petition OF Frank ]. Gould to have
George ]. Gould removed as trustee
and the petition OF George ]. Gould
that his accounting of the condition OF
the estate be accepted by the other
heirs. that there were three specific
charges OF dereliction OF duty and
abuse OF trust which were admitted
and indisputably proved"
These include the ignoring OF the d.
rection to divide the estate into six sep
arate trusts, the fact that George j
Gould accepted s62O.40l.7l as 4 commits
sion on a sale of Western Union Tele-
graph Company stock belonging to the
estate, and that he concealed this trans
action for eight years before repaying
the money. Justice Whitaker charac-
terizes the repayment OF the money to
the estate as Debated restitution under
pressure OF apprehension"
Calls Him Ignorant or Defiant"
The only inference TO he drawn from
this position taken by the trustee, George
J. Could" said Justice Whitaker. In de-
livering the opinion In Part l.. Special
Term. of the Supreme Court late yester.
day afternoon, rs that he is either en-
tirely ignorant or boldly defiant OF the
ordinary principles governing the admin
istration OF trust estates and
the interests especially OF the infant re-
maindermen. who are particularly under
the protection OF the court. demand that
George J. Gould should be removed as
testamentary trustee"
The Justice takes especial occasion
completely to exonerate Helen Gould
Shepard from any suggestion OF partici.
patton In or knowledge OF the bad man.
agement and abuses complained OF. The
suit was brought early in May. Frank
Gould and his sister. Anna, Duchess de
Talleyrand. alleging that George j
Gould's mismana cement had cost the
estate $4,000. 900.
They pointed out that for years
though In complete domination OF the
estate, he had refused to make an ac.
counting TO them. There was an accu-
sation leveled at Mr.. Gould also which
stated that he made private profits OF
$2.0Oo,O00 out of the estate.
The persons concerned were: For the
removal OF the trustee and executor
Frank ]. Gould, the Duchess de Talley.
rand, Helen Margaret Gould. Dorothy
Gould. Marie de Castellane. Georges dc
Castellsne. Jason de Castellane, Charles
de Sagan and Helen de Talleyrand. All
but the nrst two are infant rema inder-
men. Those opposed were George j
Gould and Edwin Gould. trustees and
life tenants. and these remaindermen
Kingdom Gould, Jay Gould. Marjorie O.
Drexel, George J. Gould. Jr., and Frank
Gould. A neutral position was taken by
Helen q. Shepard.
strong Array of Legal Talent.
The case also brought into contact the
most remarkable array OF legal talen,
In many years. Chalbourne. Babbitt a
Wallace appeared for George Gould
Stanchneld q Levy for his children and
Alton b. Parker for Edwin Gould.
The principal attorneys for Frank J
| Gould and his sister, Duchess do Tailey.
Continued on Seventh PGOs.