New-York tribune., 1919-07-01
Court Sustains Charges of
Brother Frank and
Sister Anna, Stressig,g
NJ Mingling Of Funds
Trustee Accused
OF Taking Profit
Was Able to Shift Loss
to Estate, Says Judge;
Il | a I'M G q for Failures

George j. Goul3 was removed yester-
day as trustee and executor of the es-
tate of his father, Jay Gould. by de-
cision rendered by Justice Whitaker, of
the Supreme Court
This action followed hearing q
month and one-half ago, when Justice
Whitaker heard argument in the suit
brought by Frank j. Gould, brother
of George J. Gould. In this, the
petitioner was supported by his sister,
AnIa, Duchesse dc Talleyrand. Edwin
an and Howard, the other brothers, sided
with George, while Mrs Helen Gould
Shepard, another sister. maintained for
the time an attitude of neutrality
Frank }. Gould oascd his demand for
his brothers removal on charges of
mismanago ment Of the estate. of wasted
assets and wrongful acts, which he al
legged caused the estate d loss Of S25.-
100000. On the argument of the action
the term larceny was openly used by
counsel Tor the pctltloning brother and
sister.
Following yesterdays decision by
Justice Whitaker, it is expected that
an action will be instituted to sur
charge George j. Gould with the al
legged $25,0O0,OO0 loss. Because OF the
character Of the proceeding Mr.. Gould
may carry his appeal only as far as the
Appellate Division.
Points Out Eleven CHARGES
Justice Whitaker called attention to
eleven points MADE in the arraignment
of George y. Gould. One Of these was
his alleged failure to divide his fathers
Ss0000,OOo estate into six separate
trust funds, one to be held for each
OF Jay Gould's six children, upon which
1allurc the court laid great stress.
Mrs. Shepard, who, according to
George, took an active interest in the
estate Of her father and was Informed
CT most OF his acts. is specifically re
!leved by Justice Whitaker Of any La
biity.
Justice Whitaker summarized the
charges against Mr.. Could as follows: /:
Il. That George Gould dominated
the administration Of the Jay Gould
estate, debating all the policies.
-. That in this management he has
babltually subordinated the interest g
OF the estate and his tiduciary OBJ
ligatlons IN respect thereto to his in
dlYld1al and personal interest
Estate Assumed Losses"
D. That he has frequently taken ad-
vantage of his powers and opportunj-
ties to make individual and personal
profits for himself for which he has
not accounted to the estate and caused
the estate 10 assume the burden of
Ioases arising cut Of his personal
transactions
II. That he has conducted specn)a-
tlons IN securities in which the estate
was interested in such a manner that
When there vas a profit he could and
d'd frequently take il for himself
ana "hen there was a loss he could
and dld frequently cause such loss to
be assumed by the estate.
a~l hat he failed TO exercise COM
mon prudence and diligence in his in.
veslments; that he invested large sums
~ hlghly unsafe securities, both specu-
iatlVe and non-productiye, which he
should have disposed Of, but which he
Kept for Purposes Of his own, thereby
causing the estate loss
BcneGciarics Disregarded
"e-That he wilfully disregarded the
interests OF thr life hcneticlarjes nv h,s
Investments.
"7-JEat he was largely responsible
for the failure of the executors and
truatees TO divide the estate as direct
ed by will
"8-That he habitually abused the
olscTetion ami powers intruatcd to him
for his own pereonal benefit.
That he failed 10 keep proper &C
counts.
"lo-That he has mingled the estate
FUNDS and transactions with his own
ana has destroyed large number of
nla own records and accounts whereby
the tacts thereto might appear.
"l1-1hat he has demonstrated that
ne has no adequate realization Of the
duties Of a iducjary"
Justice Whitaker said It was almost
impossible with the aid only of nfida-
Wits to unravel "this apparent legerdc-
main Of finance" Upon three admit d
charges. said the court, did he decide
that George J. Could should be re
moved-the failure Of the trustees
with George Could as the dominating
factor to establish the separate trusts
The rninging Of the estate funds with
Mr.. Gould'B personal funds and his nc
ccptance Of S62O.4O as commission on
The sale Of 2lo,O2s shares of Western
Union Telegraph Company stock be-
longing TO the estate
Calls Act Not Unjust
Mr. Gould, who for eight years re-
tained this commission and then Of
fered to turn it over to the estate
contended there Was nothing wrongful
or unjust IN taking this commission
az member Of the Stock Exchange
The executors and trustecs.' said
1uztice Whitaker. "bave administered
the estate, which amounts to over $50
600 900, for twenty three years. and
accounted nor attempted 10 account. J,
is nnanifest from ali the facts before
C0n fiuued on 1o00e ef0hk