The New York herald., 1922-03-06
.CHADBOURNE FACES
CHARGES BYBAR FOR
.$SO0,OOO GOULD FEE
Grows Out Of Lawyer Sery-
ING as George J.'s Counsel
in Suits 13 Years Ago.
BITTER FAMILY FIGHT
Episode in Struggle to Dust
Executor of S75, 100000
Gould Estate.
STRONG DENIALS MADE
Guthrie Sure There Has Been
No Breach of Ethics and De-
fends Chadbourne.
STRONG DENIALs MADE

Charges that Thomas L. Caad-
bourne, one of the most prominent
lawyers in New York. knew that 4
client, George J. Gould, improperly
made profit out of the sale OF the
Gould estate holdings of Western
Union Telegraph stock. will be pre-
ferred this week to TIE Appellate Di-
vision of the Supreme Court by the
Bar Association Of the city oc New
York.
That was stated last night by Will
lam ID. Guthrie, president of the New
York State Bar Association, and Mr..
Chadbourne's counsel. Mr.. Chad
bourne himself verified the report at
his Eome, 910 Fifth avenue.
! The charges are one of the after
maths of the accounting proceedings
begun against George J.. Gould. eldest
son of Jay Gould. in May, 1919. At
that time Mr.. Goulds brother and sis
ter--Frank and Anna, the latter then
the Duchess de Observation-Disclosures
/
for what they charged was misman-
agement of the estate whereby ii was
alleged to have suffered to the extent
of $4,000, 900.
The charges against Mr. Chadbourne.
who, according to statement issued
last night by Mr.. Guthrie. was Mr.
Goulds attorney in two transactions
i fbirtGan ara
Mr.. Chadbourne was cognizant OF the
alleged fact that his client pocketed
the 100000. which represented the COM
missions on the sale OF the Gould estates
Western Union stock.
Charges Held In Abeyancc.
When Supreme Court Justice Whit
aker recommended that George J. Could
be removed from testamenfary executor
ship of his fathers $4,000 00s estate
certain charges concerning tie Western
| Union stock transaction were made. Mr.
Gould appealed from the decision forcing
him out OF his executorship and the
charges were held in allegiance
Eventually matters were pressed by
o numerous group Of persons who
literally pleaded with the grievance
committee of the Bar Association to
consider the matter and the committee
replied that It would act in perfectly
legal manner and not be dictated TO
nor in any way coerced by any person
or group of persons who were so OBJ
vious in their antipathy to Mr. Chad
bourne. One of the reasons why action
was not taken sooner was because the
! grievance committee desired TO con-
slider every angle of the charges in a
dispassionate manner
The investigation was prompted, ac-
cording to authoritative information, by
the summing up Of Justice Whitaker.
4 few weeks ago the grievance COM
mittee OF the Bar Association found
| sufficient reason to pass the charges
| along to the executive committee This
followed prescribed procedure in such
| cases. 1t Is not known what the griev-
ance committee recommended except
| that IL declared that il had found
reason to believe that there was honest
substance TO them.
/ The Executive Committee. Of which
James Byrne IA Wall street president
OF the Association Of the Bar OF the
| City of New York is eX-oficio chair
man. decided TO continue along the con-
ventional line adhered to when the
4 HSG0C1aiOn UUuS I1uN CldlEtE dEdlISI
one OF its members should be tried by
court or referee. Therefore the Execu-
\ tive Committee is about to pass along
the charges to the Appellate Division.
/ II Is said by persons in position 10
know that referee will be appointed
| and the whole procedure Of the sale OF
the Gould stock in the Western Union
and the $500. 900 commissions derived
\ therefrom will be reviewed once more.
Chndbourne's side OF Case.
Mr.. Guthrie's statement reads thus
"Mr. Chadbourne referred all In
I auiries to his counsel. Mr.. William ID.
4 Guthrie. president Of the New York
state Bar Association, and Mr.. Guthrie
thereupon made thc following state
ment
"The charges against Mr.. Thomas L.
1 Chadbourne. before the Grievance Com
\ mittee of the Bar Association. have
I grown out OF bitter family litigation
connected with the Gould estate, In
which Mr. Chadbourne's firm OF Chad.
bourne. Babbitt 4 Wallace were acting
as attorneys for Mr.. George J. Gould.
"Mr. Chadbourne was attorney for
Mr.. Gould in two transactions thirteen
years ago III which II Is claimed that
Mr.. Gould improperly made personal
pecuniary profit to the knowledge Of
4 Mr.. Chadhourne but In which profit.
however, II is not even intimatcd that
| Mr.. Chadbourne had any share.
These two transactions. with many
others. are involved in pending very
complex accounting suit covering many
years and many millions Of dollnrs and
IL cannot properly be discussed In the
press at the present time
I'm due course the charges against
Mr.. Chadbourne viii be shown to be
\ infounded. as I feel confident. as soon
I as he can have q fair hearing before
I an impartial tribunal For his sake
greatly regret The publicity precipitated
% unnecessarily by this premature dis
L