The sun., 1919-07-01
GEORGE ] GOULD IS
OUT AS TRUSTEE
Continued from First Page.

Continued from First Page.
rand. were Samuel Seabury and Walter
B. Walker. Walter F. Carter and Will
liam Nelson Cromwell. appeared for the
children of Anna Gould.
Justice Whitaker said the motion was
for the removal of George J. Gould as
trustee under the will of Jay Gould,
which was probated in 1898 and created
six separate trust funds aggregating
sS0,ooo.o00 for the Gould children.
Justice Whitaker said pertinent pro-
visions of the will, those relating to
specific requests, we're conceded as haV-
ing been paid. The trustees with George
J. Gould were Helen C. Shepard. Edwin
and Howard Gould. The Justice con-
tinued:
"The executors and trustees have ad-
ministered the estate, which amounts to
over $4,000. 900, for twenty-three years
and during that entire period have
neither accounted nor attempted to ac-
count. II Is manifest from all the facts
before the court that the respondent.
George J. Gould. was In pract cal con-
troll OF the management of the entire
estate. This. of course. was natural
consequence OF the provisions Of the
| testators Gay Gould) will. which indi-
| Gated that the testator had great con-
fdence in the Judgment. ability, integrity
and experience OF the respondent. George
J. Gould, ard, as matter OF fact, the
will made him sole arbiter under GER
tain conditions"
Charges Against George j Gould.
| Justice whitaker summarized the
charges made against Mr.. Gould. He
found eleven specifications:
1. That George J. Gould dominated
the administration OF the Jay Gould
estate. debating all the policies.
2. That Is this management he has
habitually subordinated the interests
of the estate and his hduciary obliga-
lions and respect thereto to his indl-
vidual and personal interest"
3. That he has frequently taken
advantage OF his powers and oppor-
tun.ties to make Individual and per-
sonal profits for himself for which
! he has not accounted to the estate
and has caused the estate to assume
the burden of losses arising out of
his peronai transactions.
4. That he has conducted specula-
| lions in securities In which the estate
was interested In such a manner that
when there was a profit he could and
did frequently take 1t for himself.
and when there was loss he could
and frequently cause such loss to
be assumed by the estate.
5. That he failed to exercise COM
mon prudence and diligence In his
investments: that he invested large
sums in highly unsafe securities
both speculative and non-productive.
which he should have disposed OF.
but which he kept for purposes Of his
own. thereby causing the estate loss.
6. That he wilfully disregarded the
interests OF the life benehciaries by
his Investments.
Z. That he was largely responsible
for the failure OF the executors and
trustees to divide the estate as d.
rected by the will
s. That he habtually abused the
discretion and powers entrusted to
him for his own personal benefit.
8. That he failed to keep proper
accounts.
No. 10-That he has mingled the
estate funds and transactions with
his own and has destroyed a large
number Of his own records and &C.
counts whereby the facts thereto
might appear.
No. 11-That he has demonstrated
that he has no adequate realization
Of the duties Of a hduciary.
False Reports Also Charged.
II was also charged that Mr.. Gould
made false quarterly statements for the
purpose of deceiving those interested in
the estate, land that his dishonest &C.
| lions. ignorance of his duties as trustee
and abuse OF discretion through which
the estate is alleged to have lost some
millions OF dollars have rendered him
UNIT to administer tho estate entrusted
| to his care"
Justice Whitaker said that a large
number of specific instances OF wrong.
doing were alleged in the moving papers
and that some OF these at least are al
legged to have resulted in large persona
and secret profits to George ]. Gould
He added:
| 1T is practically impossible to un
ravel and see completely through this
apparent legerdemain of finance by tht
aid only of affidavits. Suffice It to say
that while most OF the transaction!
themselves are admitted the wrongful
ness OF them Is either denied or "a
tempted to be explained in such a wa,
as to excuse George ]. Gould of any
violation OF his duties as trustee. AM
although the evidence preponderate!
against George J. Gould's denials anC
attempted explanations concerning som,
of these charges. inasmuch as thes,
matters are controverted. the court will
not pass upon them nor base Its de
termination upon them in this motion
Justice Whitaker declared there were
however. three specific charges Of dere
LECTION Of duty and abuse of trust which
were admitted and indisputably proved
The first OF these. the Justice asserted
was the failure OF the trustees to divid
the estate into six separate trusts, on
for each OF the heirs living at the tim
Of Jay Goulds death.
Specific Order Unheeded. \
1.-THE will contains specific and manda
> tory provisions that this should be done,
declared Justice Whitaker. THE Who'll
: scheme of the will shows that the testato
/ was especially insistent upon this direc
ton. This is accumulated by the fac