The New York herald., 1922-05-10
G. J. GOULD BARRED
FROM $644,9O4 SUIT
Howard. Helen and Edwin
Win Injunction in Claims
Against Him.
RAIL DEALS RETOLD
How Syndicate Got Line In
to Pittsburgh Described
in S12,600,00O Suit.
FAMOUS FIGURES NAMED
J. p. Morgan, the Elder. and
A. j. Cassatt Wanted to
Stop Syndicate's Plan.

injunction yesterday restraining
George jay Gould from prosecuting in
the Surrogates' Court a claim Of s644.-
sO4 which he alleges was his share of
the income from the estate which has
been impounded and withheld from
him since December, 1920.
Justice Delehanty in Supreme Court
In issuing the injunction held tnat pro-
ceedings in the Surrosates' Court
would be a needless duplication OF
an accounting action in the Supreme
Court with consequent expenses which
should not be permitted
While this opinion was being handed
down George j. Gould was testifying
in his own behalf at the trial of
suit for $l2. 100000 which the receivers
of the Wabash Pittsburgh Terminal
Railway Company have started against
him and Myron T. Herrick as mem
bers of the Pittsburgh and Toledo syn
dicate which financed the company in
1901 This trial began Monday before
Justice Finch in Supreme Court
Mr.. Gould told of negotiat 'ons for
the acquisition of the Pittsburgh link
in the proposed Gould transcon mental
railroad system twenty years ago.
His .sDereIiction" Is Recalled.
Justice Delehanty pointed out that the
precedence of the Supreme Court over
the Surrogate in such cases already has
been upheld b. the Appellate Division.
In seeking the injunction the trustees
related that George Gould was removed
as trustee by Justice Whitaker in July.
1919. on three specific charges Of dere-
liction OF duty and abuse OF trust that
are admitted and indisputably proven"
II was provided that Mr. Gould may
amend his answer "and apply for such
other relief as may be advised"
When the motion was argued before
Justice Delehanty on April II Samuel
ssabury appeared in behalf of Frank J.
Gould. William Nelson Cromwell.
guardian ad Item for the children OF
Anna Gould. the Duchess of Talleyrand.
also spoke and Morgan j. OBrien
argued for the motion in behalf OF Mrs
Helen Gould Shepard. Mr. Gould was
represented by John w. Davis and by
Edgar T. Brackett. A motion FOR the
pany to be appointed in the place OF
the several trustees also was made. JUS
tice Delehanty has still to act on the
papers which have been submitted on
that motion.
How Railroad Was Bought.
In the s12. 100000 Wabash Pittsburgh
Terminal suit George Gould told OF how
the purchase OF the Wheeling and Lake
IL ~
the undertaking in the Pittsburgh dis
trict. had been ordered by him after
ten minute conversation with Washing
ton f. Connor. railroad financier who
had been associated with his father
For these services Mr.. Connor got
81. 900. .00o
On examination by william Wallace.
Jr.. Of Chadbourne. Babbitt & Wallace
his attorneys Mr.. Gould referred to
cvertures by the elder j. p. Morgan and
Alexander j. Cassatt. then resident OF
the Pennsylvania Railroad. offering the
Gould interests "a handsome profit TO
keep out Of the Pittsburgh district
The receivers of the Wabash Pitts
hurgh Terminal Railway Comrany are
suing for the recovery OF approximately
$4,000. 900 which the syndicate paid for
the purchase Of the Wheeling and Lake
Erie road. for 81. 100000 interest paid to
the Mercantile Trust Company which
furnished loans that enabled the synd-
cate to operate and for more than
$4,000. 900. including the commission OF
$1,000. 900 paid TO Mr. Connor. which
was the balance Of underwriting of the
syndicate.
Mr.. Gould said the project OF the
Pittsburgh and Toledo syndicate. the
= anne then given 10 the enterprise was
first called 10 his attention i'm 1900 by
Joseph Ramsey. Jr.. who afterwards
was president of the Wabash Rail-
oad. Brig Gen. Louis Fitzgerald. then
president OF the Mercantile Trust Com
pany. filtered to undertake the banking
for the syndicate. said Mr.. Gould II
Mr.. Gould would consent 10 enter the
syndicate
This was agreed ana Gen. Fitzgerald
became chairman OF the syndicate: the
financial details were handled by Alvin
w krech. who then was Gen. Fitz-
gerald's secretary and now s president
OF the Equitable Company. and the
field operations in and around Pitts
turgh were handled by Mr. Ramsey
Mr.. Gould was a director and member
of the executive committee OF the trust
company as well as member OF the
syndicate.
Mr.. Gould testified that Mr.. Ramsey
had discussed with him the desira biity
of contract with the Carnegie Steel
Company for the transportation OF its
raw materials and products In and out
OF Pittsburgh. Such contract ap-
peared valuable TO the syndicate. ac-
co-ding to Mr. Ramsey's observn tions.
but an essential link would be the
Wheeling and Lake Erie Railroad. con-
trolling the lake ports OF Cleveland and
Toledo.
That line was then going concern
and Pittsburgh was described as the
greatest freigh, center IN the world"
It's strategic position said Mr.. Could
was very valuable. for II would afford
a connection with the Wabash and .ater
a possible connection with Eastern CEN
tcrs.
The Pittsburgh and Toledo syndicate
accordingly was formed with provisions
for the construction or purchase Under
suitable conditions OF railroad lines
from Pittsburgh TO Toledo.
Mr.. Gould recalled that the contract
with tho Carnegie Steel Company was
signed February 4, 1901. four days after
the syndicate agreement had been exe-
cutca Negotiations In the meantime
we're pending with Mr.. connor for the