The Washington times., 1938-03-25
M'LEAN " ESTATE
REPORT FILED
IN COURT HERE
Legality Of Post s
Sale Discussed
By RICHARD R. BAKER Jr.

Raising grave doubts as to legal
fly of the sale Of the Washington
Post, with the resulting ''lnbe-
HevableP depletion Of the estate
Of John R. Mclean the report Of
Austin F. Garfield, recently ap-
pointed guardian for Edward B.
Mclean, was laid on the desk of
Justice Jennings Bailey In United
States District Court today.
The report also advised the court
to consider the consideration Of
co-truSteeShip with the American
Security and Trust Company in
handling the affairs Of the estate.
ALL PHASES PROBED
Originally appointed to investi-
gate the circumstances surround
ing McLean's commitment to a
Maryland asylum by a Maryland
court when Mr.. Mclean was a resi-
dent Of the District Of Columbia,
Garfield was recently instructed
20 investigate and report on all
phases Of the Mclean estate.
Consisting of 400 typewriter
pages, the report makes no out.
right Recommendation. but asks
for instructions along certain
lines. based on the two-nonth In
vestigation OF the litigation involy-
ing the vast Mclean holdings,
POST SALE VULNERABLE
Both Rear Admiral Mark Bris-
tol, McLean's committee under the
Maryland court order, and the
formers counsel have investigated
the legality of the Post sale to
Eugene Meyer. Garfield reported
and he was quoted as being Of the
opinion that the sale might prop
erly be attacked up to the time
Evalyn Mclean. infant daughter
of Mr.. and Mrs. Mclean, reaches
her majority"
He referred first to original pro-
ceedings to sell the Post which
failed OF court approval and to the
later auction of the Post property
which was sold to its present
owner for $825.000.
Garfield directed the courts
attention to certain charges made
before q Congressional Committee
in February, 1886, by Col. julius
!. Peyser, attorney for interests
that unsuccessfully sought to pur-
chase the Post several years before
its sale to Meyer.
SALE CALLED COLLUSIVE
'Mr. Peyser made the direct
charge that the sale Of the Post
was collusive and stepped in the
deepest fraud" Canfield's re-
port reads. "He was not under
oath in testifying, but I am In
formed that If the occasion
arose or permitted, he would
make the same charges under
oath.
"They are serious and, If
established and proved, then
Justice Proctor, when he signed
the DEGREES above indicated, was
deceived and lulled into signing
the same without knowing or
having the opportunity to know
the real, true conditions and
facts. thereby perpetrating a
fraud upon him.
"I do not assert here that
Mr.. Peyser's charges are true:
but I believe the court should
read and examine the same in
connection with this report.
Within period of four years
an asset for which $4,000, 900
was first offered by a reputable
purchaser, was finally sold to
net approximately $43, 900 to the
trust estate, and depleted the
corpus thereof to such an
amount that the whole thing
seems unbelievable"
No aspersion is cast by the re.
port upon the purchaser Of the
property, but McLean'S lack Of CO.
operation with the trust company
ut a time when physicians say he
was insane, although acting In
the capacity Of . cO-trustee. are
pointed out as the underlying
factors Of the possible fraud.