New-York tribune., 1919-05-09
Brother Seeks
To Gust Gould
As Estate Head
Continued from page j

continued from page j
is supported in the, proceeding by his
sister Anna, Duchess de Tallyrand,
that through tne action of their
brother, George J. Gould, the estate
has suffered a loss of Upward Of
s25,ooO,OOO.
Edwin Gould, another brother and
a co-trustee, is mentioned in the pro-
ceeding as having neglected his duties
by. permitting George J. to do the
things, charged, the latter, it being
alleged, acting as the dominating trus-
tee. Mrs. Helen Gould Shepard, an
other sister, takes sides with George J.
Gould. Although not directly figuring
ard filed an affidavit in which she said:
Taken as a whole, these allegations
are distinctly inaccurate and mislead-
ing"
In his own defense George j. Gould
replies in detail to every charge that
is made against him. Also he goes
back to 1911, at which time began a
series OF events, he alleges, that ac-
counts for the hostility which his
brother Frank has since shown toward
him.
Gives List of Happenings
Mr.. Gould enumerates these happen
ings as follows:
"l-Refusal of our families to recog-
nlze Franks second wife, whom he
married, | have since learned, while
travelling together in Scotland in Oc-
tober 20, 1910, and whom he is now
suing for a divorce on the charge of
immortality.
"2-The refusal in 1912 of George
and Edwin to let the estate further
'hahce FRANKS management of the In
tefnatlonal & Great Northern Railroad,
which, down to the time when the es-
tate support was withdrawn, had lost
the estate, roughly, about $3,O0O,0OO.
5-The claim by Edwin in October
or November, 1912, that Frank, when he
knew the [. & G. N was in a bad fl
nancial condition, had borrowed S1O0.-
600 from the Bowling Green Trust
company (Edwin's trust company in
the name OF the |. & G. n and rep
resented note would be personally en-
ooTsed by Frank and that he got $780,
ooO IN advance of the endorsement and
then refused to endorse the note rs
ing the 100000 to pay off an indebt-
edness to himself by the |. e. G. N.
Marriage Question Arises
Efforts on my part for the last
year and half, known to Frank. to
nave the executors for their own pro
Iectlon secure an Interpretation of the
second codicil of my fathers will con-
cernlng marrying without consent and
us n erect upon payment of income to
FRANK since his second marriage"
when Jay Gould died and George ].
and Mrs. Shepard were designated as
a sort OF supervisory committee over
him. 0NA
The action of Frank j. Gould yester-
day really. is continuation of a pro-,
ceedlng started in 1917, when George
). Gould and Edwin Could asked Tor
a judicial settlement of their accounts
as trustees, which showed an estate of
about $SO,O0O,000. Frank j. then
opposed the approval of the accounts,
but made only general charges of
negligence and mismanagement. These
he amplified through Mr. Walker
yesterday, when he again opposed the
settlement of the accounts of the
trustees and obtained an order direct
ing his eldest brother to show cause
why he should not be removed as
trustee.
Charges Involve Commission
One of the chargts of bad faith made
against George j. Gould is that in sell
ing Western Union shares belonging to
the estate, he took for himself $62O,4O1
commission on the transaction and
gave $l25,OO0 to Charles l.. Chadbourne,
who aided in the negotiating Of the
sale of the stock to the American Tele-
phone and Telegraph Company. After
retaining this money eight years, it is
alleged, Mr.. Gould returned the COM
mission to the estate without paying
any interest. The return of the com.
mission, it is pointed out. took place
only short time before Mr.. Gould's
examination before trial of the present
action.
Mr.: Gould in his affidavit seeks ito
justify the sale of the Western Union I
stock and also his collection of com
mission on the transaction. He said
that before the sale be analyzed the
financial condition Of the Western
Union and found it bad.
lie also made experiments by the |
sending Of dispatches over the Western |
Union wires and those of the Postal
Telegraph company, and found, he said. |
that the rival company invariably was
quicker in the transmission of mes
sages than the Western Union. some
times by several hours.
He and his brother Edwin decided to
sell the stock, he said. They received
SS5 share, the buyers later Offering
the stock back at $50. 1t developed dur |
ing the negotiations that in case a
contract for the sale were closed the
tact should be kept secret, so as to
accustom the public gradually to the
idea of the telephone companys control
of the telegraph line.
1t was because of this impos: ton of
secrecy, explained Mr.. Gould, in an
swering another point made by his .
brother that they did not inform theirf
sister, now Mrs. Shepard, of the pend
ing negotiations. Not only did Mrs.
Shepard have a sentimental attachment
for the properties left by her father,
but also she was an intimate friend
of the late Mrs. Russell Sage. Mr..
Gould feared that Mrs. Shepard would
tell Mrs. Sage about the impending
sale and then the promised secrecy
would be destroyed
AS 20 collecting commissions on the
sale OF the estate shares, Mr. Gould
said that he, as we'll as Edwin, are
members OF the New York Stock Ex-
change, and as such are entitled to re-
ceive commissions on any transactions
made there by them AS a matter of
fact, the commission came from the
buyers and not from the estate. Mr..
Gould contended there was no differ
ence in principle in that sale and any
other. He was advised, however, to
hon hA o,.o IL.