New-York tribune., 1919-05-09

permitting it. caused the estate a loss
of S210,000 in income, it is alleged;
bad faith being charged because Mr..
Gould held stocks of problematic
value.
Going back eighteen years, Frank J.
Gould recalls his brother George was
party to pool that sought to force
the price of Missouri Pacific stock to
sl25 George did not avail himself
of the opportunity to sell, his brother
charges, because to do so would de-
prive him of the control of the road,
considered in the financial world as a
very desirable position, and also, it is
added, it would have deprived him of
opportunities to make money for him.
self IN pivate deals. In this, it is al
legged, Edwin acquiesed. A few years
later, continues the attorney for Frank
when thehre was q stringent money
market, George disposed of his own
holdings and placed the load on the
estate at the risk of terrible loss"
which overlook the estate.
When, in 1913, George j. Gould sold
Missouri Pacific at prices ranging from
S33 down to SIS, he disposed of SILL
463,557 belonging to the estate for
S3,419,919. This brought loss of
S8,043,638 and is the biggest item of
alleged depreciation charged to Mr.
Gould
Investment Called Bad
Bad faith is charged by reason of
the investment of estate funds by Mr..
Gould in stock Of the Denver & Rio
Grande Railroad, with an attendant
loss of $236,030. This purchase of
stock, it is alleged was not proper
or permissible investment for trust
funds.
Mr.. Gould says in the course of his
lengthy affidavit that the hostility of
his brother Frank manifested itself in
1911 when Frank sought to put out
side interests on the board of the Mis-
souri, Pacific without consulting any
one but Mrs. Shepard. He also tried
to introduce outside interests in the
St. Louis Southwestern Railroad, it
is said.
Two letters written by Mrs. Shepard
to George j. Gould seem to indicate
how the sister and prother regarded
Frank. In one letter she wrote:
peg away at the problem of the |. G.
G. NJ. for l think that the longer we
can hold him here the greater chance
there is for the old habits of industry
to resume their sway and for him to
settle down and be help"
'Frivolling Away His Life"
Concerning Frank Gould's efforts to
get outsiders into the St. Louis e.
Southwestern Mrs. Shepard wrote:
Edwin felt hurt over Frank getting
proxies On the Cotton Belt | sym
pathize deeply with dear Edwin's hurt
feelings, but if we could get Frank
really interested in work it would
make it easier for you and him. 1t
would perhaps save Frank from frivol-
ling away his life abroad or worse, and
1T would be good thing for the
family. | greatly deplore this little
misunderstanding between the two
boys"
Frank used to aid in the management
of his fathers estate. He withdrew
from this activity in 1912 and ex-
pressed his purpose % live in Paris.
He left this country in March, 1918,
and has been abroad ever since.
Further charges made by Mr.. Walker
in behalf of Frank Gould are that in
August. 1912, George j. Gould sold 20,-
400 shares of Manhattan Railway stock
for S2758, ,250, and that he did not i'm
Allege Big Wabash Loss
In the following March, it is alleged.
he paid $1,000,00Q to the estate and
"attempted to apply 10000 shares OF
Wabash stock toward an Indebtedness
of $546,650 at 81 and 32ls share when
the market price was 297s 10 307s."
No dividends were ever paid on these
Wabash shares, it is alleged, and the
holdings were wiped out by reorgani-
zation. George j. Gou4d has refused
to make good the loss to the estate,
it is alleged.
In 1900 and 1901 other sales of Man.
battan stock amounting to $3.50, ,0S7,
il is alleged, We're not reported to the
estate and placed on its books until
1902. Then, it is alleged, Mr.. Gould
paid part Of the sum by causing the
transference of an Indebtedness of
S1,496,037 owed him by the Missouri
Pacific, of which he was then presi-
dent. Later asked to pay the money
to the estate, Mr.. Gould refused, it is
alleged. Continuing the charges of
manipulation of estate funds, the
charge is made thai George J. Gould
owed the estate Of his father $780, 900,
transferring debt from ne Missouri
Pacific. The estate bought $7,000.000
of Missouri Pacific stock and stood to
lose last year $2,450,000.
Estate Withheld Support
Mr. Gould and others entered into
syndicate to reorganize the Wabash
company, hoping thereby to recover
losses, it is said, which plan failed
after the estate refused to advance
more money. Mr.. Gould admits loss
of S15000O in this deal
The estate of Jay Gould received |
$17852,3 1903 for its Western Union |
shares; also some certificates of de-
posit which were liquidated from time |
to time. 1t is alleged that Mr.. Gould |
cashed the certificates and placed them
on the books as George J. Gould stock
account" which made it appear that
the estate owed him money.
The destruction of certain books also I
figures in the charges. Mr.. Gould admits
that these books were destroyed in his |
home, at 857 Fifth avenue, but declares
that they were only books pertaining
to his own affairs and not to the estate.
Under examination before trial MIR.
Gould said he attended to the destruc-
tion of the books personally and was
assisted by his son Kingdom. He did .
this, Mr.. Gould explained, because he
was moving into smaller quarters and
1,roc ~, bic ;lrooJ xrorl,