New-York tribune. [volume], May 10, 1919, Page 8, Image 8

About New-York tribune. [volume] (New York [N.Y.]) 1866-1924

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Suit Is Result
Of Family Row,
Gould Replies
George J., Defendant, Says
Animus Exists Because
of His Opposition to
Anna's Second Marriage
H o u 8 e Was Divided
Trustee and Helen Were
Arrayed Against Frank
and Anna, He Declares
Additional affidavits, on file in the
Supreme Court yesterday, contain more
detnils of the differencea existing
among the children of Jay Gould and
emphasized a personal elcmcnt that
didn't apnear in those quoted before in
the proceeding brought by Frank J.
Gould to have his brother, George J.
Gould, oustcd as trustee of the estate
of their father.
They tell some of the diffcrences that
led up to the present division of the
family of the great financier with
George J., Edwin and Mrs. Helen Gould
Shepard on one side and Frank and
Anna, Duchess of Tallyrand, on the
other, with Howard apparently neutral.
Also these documents set forth more
fully George J. Gould's side.
Action Called Animus
The Duchess de Tallyrand has joined
with Frank in asking that George J.
be removed by thc court from the trus
tccship. The affidavits reveal, too, the
opposition of Brother George and Mrs.
Shepard to thc second marriage of their
sister.
In reply George J. Gould says that
the action is the result of personal
animus.
"My sister Anna," he says, "has long
been unfriendly toward me. Her state
of mind is explained by the foilowing
features:
"1 -In 1896 she complained of in
vest.ments by Helen and myself as her
puardians. These investments were
made in accordance with our father's
desiro to lenii aid to thc Missouri Pa
citic system. We charged her nothing
for. services. She later executed full
releases to us as guardians.
"2?She at one time, with Frank
Gould, threatened suit against the ex
ecutors unlets they would forthwith
distribute to tne life tenants intereBt
on the International and Great North
era loan, which the executors withheld
because of certain questions raised.
She and Frank forced the distribution,
of which the guardian chosen for her
children now complains.
Second Marriage Opposed
"3?My opposition and that of my
sister Helen to Anna's second mar?
riage aroused in her a bitter feeling.
She employed counsel and caused a
complaint to be prepared as a basis of
a suit to test the validity and applica
vion of the seventh paragraph of the
second codicil of our father's will.
These proceedings ended because we
finally gave our formal consent to her
proposed remarriage.
"4?After the beginning of this suit,
and before my examination began, I
underatand Anna expressed her pur
pose to array herself against me. She
and Frank refused to accept the guard?
ian suggested for their children. In
1916, when the suit was filed, there was
no indication that it would be other
than a friendly accounting to get the
estata operations, which have been cov
ered by yearly settlements, in perman?
ent shape by this eourt accounting."
The Duchesse de Talleyrand, through
Phihp L. Miller, her attorney, says in
her petition that a large loss resulted
to the estate by the acquisition df 2,500
shares preferred and 5,000 common
stock of the Denver & Rio Grande
Railroad for $96,225.
"Gambled for Big Stakes"
"This is one of the large number of
investments," says the affidavit filed
m behalf of the duchess, "totalline
milhons, to which. through the efforts
of George J. Gould. the trustees com?
mitted the funds of the estate, which
were directly or intlirectly connected
with an endeavor, which resulted in
disaster, to build up around the Mis?
souri Pacific and its subsidiary roads
a great transcontinental system ex
tending from the Atlantic to the Pa?
cific.
"Their stocks have been of a highly
xpeculative character, subject to ex
cessive market fluctuations, and either
non-dividend or uncertain dividend
paying. He knew this to be a fact, and
'n pursun of his grandiose scheme of
transcontinental expansion, of which
George J. Gould was the prime mover.
tne trustees committed the funds of
the estate to enormous amounts. Pat
ently they ran the risk of disastrous
tailure, however alluring may have
seemcd the rewards of their success.
Investment Called Xegligence
t Jhe. Project was known to George
???? , t0 be a hazardo?s gamble for
t-rcat staKes, requiring for success and
connummation exceptional executive
and financ.al ability, the power to se
euw and hold the backing of gr"t
!m?^ 'nterests, and unremiuing
"gilance, adroitness and resourceful
nes?in meeting the opposition of com
??v,r %%m1'. '" addi^on thereto, the
thl f??J f?rtU^- The '"vestment of
?he funds in this project was eross
SfifSftunlawful and ,n m?&??"
A* to the qualities referred to bv
j; K'ster.!n ??? foreg-oing statement,
Mr. Gould says he felt much pride
ever -the ?i,em in which ,???
held me afu-r twelve years of c!o*e
daily obscrvation." He qU0tes from
two lettora from Jay Gould, "a greTt
and shrcwd judge of men." ()?f *f
'hese dated March 18, 1892, the vear
???? Gould died, read, "My <]par ?on
"??; "*t work hard. 'Take plenty 0f
OUtdoor ?M?iM and plenty of air I
?????"? not think what would happen" if
?mything went wrong with youT So
!&**&&? "* "*' ifr*'
iHUr^J. ,*?Mr' "ritt*n t"? "ftMltha
I? w;H 1 M,y<ie?'-son: What you
wavi t*?.M*r* be ?"*?????<?. I have
.^ytk-nT"8 'ty UP?n th? "POt
Trles to Justify Investment
Geyge j. Gould in his affidavit un
;.'i-.*/?-. tp justify the purchase Qf
n ? DenreJand Rio Grande control in
Mnair of the Missouri Pacific. Ho de
' ihnt it was part of a transcon
inental seheme.
"The welfare of the Missouri Pacific
'.'fm"'1?? demand it," says the ?ffi.
'lavit. Had the estate not owned the
..Iissoun Pacific and its allied lines It
WOttid not have been fnvestinj? in rail
UtmA stock. The Missouri Pacific waa
?n mherited condition and not -
theory. It* repre*?nted too great
property intereat t<^thc estate to be
jettiaoned ftuvsHy yh thc courae of
7...~ TC '? ' ~
i administration. Able business men, in
cluding John D. Rockefeller and his
counsellors, were of the opinion that
the acquisition of tho Denver control
was wise and prudent action in behalf
of the Missouri Pacific.
"While the transcontinental control
; was urgcd by bankers and through
newspapers it was not the moving con
sideration for Denver control which
, was to build up the Missouri Pacific
business. No hazardous gamble was
i designed by the persons who counsclled
| Mr. Rockefeller and the executors to
secure the D. & R. G. control.
"Mrs. Shepard Knew Business'
"I have np doubt that Mr. Rockc
j feller's action was with an eye singlc
! to the benefit of the M. P. and quite
j apart from the idea of a transconti?
nental line, and I know that the ac
i tion of my brothers and myself was
? prompted by the same reasoning."
Answering allegations by Frank
Gould- that his sister, Mrs. Shepard,
j knew little about her father's railroad
| ir.terests and did not understand
George's handling of them, Mr. Gould
quoted from a letter written by Mrs.
Shepard after a trip over the Gould
railroad properties. "I send you a few
suggestions which I gathered on the
Western trip in July," she wrote.
"With the great competition in rail
roading, I presume it advisable to do
as much as possible to diminish opcr
| ating expenses in the way of lcssening
i grades and having good equipment. It
1 would seem a pity to have the Missouri
I Pacific relegated to a second place,
! would it not?"
Mrs. Shepard inclosed a memoran
dujfti suggesting a number of exten
sions and branch lines, with ideas for
the purchase' of competing lines and
the buildihg of new depots in three
cities. Further understanding and in?
terest by Mrs. Shepard is shown in
this letter to her sister Anna, written
in 1896:
"George has let me know that you
feel dissatisfied with our conduct
as guardians and , particularly that
some of your money should be used
in protecting the property in which
you hold ?o large a financial inter?
est. My dear sister, I do not think
you fully realize the conditions. Not
only was it our father's desire that
: we stand by the properties" that he
had built, but the loss to you, as well
as to ourselves, would be very great
if we should not sustaln our Interest
in these bad times. The last three
years have been unsually hard on
railroad properties and many have
been forced into the hands of re
ceivers because of insufficient back
ing."
George wrote the Duchesse de Tal
leyrand In 1914, in part:
"Some weeks ago the railroad Bit
uation was looking so uncertain that
Ed and I, in consultation with How
ard, decided to sell the Missouri Pa?
cific stock held by the estate and
have all go except one share. It
looks as if we might drift inloa re
ceivership, and if the road does there
is no telling where the stock might
go to. As we stand now, we are the
biggest creditor and can afford to take
chances with the rest. I don't think
Helen approved, and I know she did
not like the way the sale was made.
She thinks Mrs. Sage and a lot of
others should have been taken Tn,
but that was impossible."
Mr. Gould says in his affidavit. "The
business of the estate may be likened
to^that of a department store. Some.
of the departments show losses, but
their continuance is nevertheless nec
essary to insure success of the whole.
The executors could not wait to finish
one part of a general project before
starting another. Had this been done
competitors would have sensed the
ultimate object and by blocking one
phase the whole plan might have been
destroyed. This throws light on many
transactions which, standing alone,
might, as Mr. Walker (attorney for
Frank Gould) has asserted, seem to
involve questionable investments of
funds."
Any amounts he came to owe the
estate, says Mr. Gould, were paid in
full. He says that for several years
prior to the financial panic of 1907 he
owed the estate nothing. "I stood be?
tween the roads and the estate," he
says, "bearing a large-personal risk."
"I often asked my brothers and Helen
to assist me in the support of the
roads, but they were unable to do so
at the time," he continues. "Edwin
need.ed all his ready cash to support
the Southwestcrn and the Bowling
Green Trust Company, which he did.
Howard was improving a large estate
on Long Island. Frank was interested
in racing. Helen was interested in her
charities and Anna's income was tied
up by her creditors. They were in no
position to help out with their individ?
ual funds. The burden fell wholly
upon me.
"My co-executo/s knew this and also
how I came to owe the estate from time
to time, and, because thereof, they
made no demands upon me of any kind.
They then appreciated the situation,
but time has caused some of them to
forget. My personal fortune was such
that I could always have settled with
the estate at. any time."
! Stecher Beats Zbyszko,
World's Mat Champion
Victor Used Body Scissors and
Bar Arm Holds; Won
in 1:45:15
LOUISVILLE, May 9.?Joe Stecher,
of Nebraska, defeated Wladek Zbyszko,
of Poland, world champion wrestler
here to-night in 1:45:15.
Stecher used the body scissors and
bar arm holds.
President Stays Death
Sentence of 4 Soldiers
WASHINGTON, May 9..Commuta
i tion of death sentences ordered by
courts martial was announced to-day by
the War Department in four cases.
Private Richard L. Stierheim, of the
79th Division, wha, was found guilty
of deserting from Company D, 315th
Infantry, when the organization was
about to face the enemy, was restored
to duty for bravery in action. While
being taken to the front as a prisoner
Stierheim volunteered to go out at
night to rescue wounded men.
Private Julius Cresce, Quartermas
ter Corps, found guilty of being Ab
sent without leave and disobedicnce!
of orders, was sentenced to death by
musketry. The President rcduced this
penalty to two years confinement at
Fort Jay.
Private James Workuff, of the 349th
Machine Gun Battalton, was found
guilty of murdering Private William
R. Ripley. The recommendation of
Major General Ballou, the review'mg
authority, to reduce the sentence to
twenty-five years imprisonment was
approved by the President. Death scn- !
tence imposed on Private Henry L i
Jackson, Battery C, 350th Field Ar-!
tillery, who shot and killed George :
Deskin, was commuted to fifteen years ;
imprisonment by the President.
?-? ?
Last of the Old 69th
WillQmtMills To-day
CAMP MILLS.L. I., May O.-The l?it
offieial detachments of the 185th In- j
fantry, the old 69th Regiment of New
York. were scheduled to leave to-day<
for Carops Funston, Dodge and Gnmt, <
where they will be discharged. Therti
are ten officers and 216 men in the de- '
taehments. Reglmental headquarter*
has been close'd.
Of the lfiSth there will remain here
only a few men who ovcrataved leave
and missed their trains for the domo-'
bilizatton camps. Each must stay until
another ooatingent is going to the'
canrpto which he is assigned.
Last of 77th
Gets Discharge
i ^
Papers To-day
: 10,700 Argonnc Veterans,
Released From Service,
Iteturn lo City to Be
gin Onslaught for Jobs
Many to Go It Alone
Officers Cheered as Men
Hurry 'to the Trains in
Droves, Eager for Mufti
Staff Carretpondence
CAMP UPTON, N. Y? May 9.?With
j cries of "Finis la gucrre," and with
j their last army pay clutched in their
j fists, 10,714 discharged members of
the 77th Division left here to-day for
industrial warfare in the city. Scores
of the men declared just before leav?
ing that they intend to win a comfort
able living by commercial onslaughts,
rivalling in energy and determination
those which took them through the
Argonne.
Records for rapid demobilization
were broken in the discharge of the
men. From 6 o'clock in the morning
until 8 at night they tramped, singing
and cxultant, through the streots of
the camp to the pay office, filed
through at the rate of 1,500 an hour,
purchased tickets and climbed aboard
trains. As they passed through the
gates into the station officers handed
out discharges.
By a new order of Brigadier Gen?
eral Nicholson, camp commander, of?
ficers of the divisional staff were dis?
charged. Field and line officers will
be discharged to-morrow, after their
commands have been demobilized. Ap
proximately 30 per cent of the of?
ficers accepted industrial furloughs,
entitling them to fifteen days' leave
at full pay until they can obtain cm
ployment.
All Physlcally Examined
Every man of the division was physi
cally examined by 11 o'clock to-day.
Less than 130 were held up because of
failure to pass tests. According' to
Captain J. W. Kirkpatrick, medical offi
cer of the 305th Field Artillery, the
men register an improvement of 50 per
cent in their physical condition.
The last of the division wiil leave
for the city before noon to-morrow. A
total of 4,017 men, virtually all of the
152d Field Artillery Brigade, will be
discharged.
The Argonne heroes who prefer to
take their chances in business repre
sent a wide range of occupations. Cor
poral Michael Gilfeather, military
police, of 189 Lake Street, Brooklyn,
was a bartender in pre-war days. He
announced his intention' of opening an
ice cream parlor. Private Vincenzo
Bellidino, of B Company, 308th ln
fantry, was a driver. He is going into
the express business, using his home,
189 Washington Avenue, as his office.
Private Tony Galono, G Company, 307th
Infantry, 37 Mulberry Street, was a
bootblack. He said he spent his first
few days back in this couutry looking
over sites for a chain of chairs. Pri?
vate Abraham Gollub, of 730 Garden
Street, is going to work at bricklaying
independenly. Corporal Rube Lassof,
of 106 Ridge Street, a chauffeur, in
tends purchasing or leasing a taxicab.
Of forty men waiting for the home
wardt-bound train twelve expressed a
determination to use their war ac
quired vim and "go it alone."
To Learn Trade
Five decided to remain in the army,
feeling that conditions in industry for
unskilled men are too unfavorable now.
They prefer to learn" a trade before
donning mufti. The men chose branches
other than those in which they served.
Corporal James M. Scott, of Syracuse,
a former member of E Company, 307th
Infantry, asked for Hawaiian service.
Private Cornelius Farren, of 60 Herki
mer Street, Brooklyn, of C Company,
302d Field Signal Battalion, also wants
to see the Orient. Private Earl Lake,
of the 305th Infantry, gassed at the
Vesle; Private Tony Javino, 91 East
Seventh Street, and Private John P.
O'Connell, of New Haven, Conn., both
of E Comr^ny, 308th Infantry, also re
; enlisted.
Others rushed back to civilian life.
They left the camp in uniform, but an
: nounced that this was the.r last pub?
lic appearance in olive drab. The part
j ing of the officers and men was de
i void of sentiment. A strong handclasp
1 here and there, a cheer, and it was
i over. The mtmberij of the 302d Field
! Signal Battalion started the echoes
. with their cheers for Major Powers,
Captain Matthew HammonJ and Lieu?
tenant Chapin. Captain Percy Ham
rnond, of 746 Dcan Street, commander
of Company I, 305th Infantry, glowed
under his tanncd countcnan:o when tha
Company I men gave him aTusty fare
; well.
"When these men landed back in
America," said Captain Hammond,
, "they were fairly stormed by the_ir rel
i atives. And yet not a man was separat
'? ed from his outfit. When it left he
; pricd loose all his rclatives and just
tagged on. You could hardly expect
real men like that to express any emo
| tion."
a .
| Demobilization of
! Armv at Home To Be
Finishetl bv June 15
War Department lo Keep
Southern and Western
Troops Ready for Service
on Border;, Can Parade
After Discharge
WASHINGTON, May 9.?Commar.d
ing generals of the Northeastern,
Eastern, Southeastern and Centra! de
partments and of Camps Knox, Bragg,
Benning, Humphreys, Eustis and Fort
Sill were instructed to-day that it is
the dcsire of the War Department to
have discharged by June 15 all men
drafted or enlisted for the emergency
who are eligible for discharge.
The exception of the Southern and
Western departments from the order
was understood to be due to the fact
that the units under the supervision
of those departments are largely on
duty on the* Mexican border and that
it, therefore, might not be practicable
to release the men by June 16.
It was explained at the War Depart?
ment that the nren affected by the
order were those whose service has
been entirely within the United States
| and who are now attached to "line or
i ganizations of the regular service."
Similar instruction will be sent to com
I manders of each of the twenty-three
I demobjlization centres, but in their
\ cases previous orders regarding the
I discharge of soldiers within forty
| eight hours after their arrival still
. will be enforced.
Commanders of demobilrzation camps
also were informed that in discharging
i organizations sent to them all men
i coming from a given city orcommunity
i are, as far as practicable, to be dis
| charged on the same day. This is to
j enable the men to return in a body
| to their community for such welcome
i as may be contemplated for them.
Wrist Watches to Stay
|A11 Jewelry Popular, National
Convention Hears
ATLANTIC CITY, May 9.?Wrist
I watches for men are in style to stay,
? according to speakers at the twelfth
: annual convention of the National
Wholesale Jewelers' Association at the
session here to-day. The popularity of
this type of timepiece began with the
war, but peace has brought no abate
ment oi the demand.
There is also an especially big de?
mand for diamonds, while all types of
jewelry are so popular that it is likely
to be a question of filling orders rath?
er than drumming up trade. The un
precedented demand for jewelry, ac?
cording to the speakers, is due to high
wages and general prosperity.
f*/Uk For , . . a." , ";: ?>
i ^Horhcks
ThcORIGlNAL
Malted Milk
Safe
Milk
hr Infants
(k Invalidt
NvCeekiag
A Nutritiou8 Diet for All Agea.
Quick Lunch; Home or Office^
OTHERS aro IMITATION*
To help New Yorkers
bee it Through"
Astor Truet Buiiding
The Astor Trust Office of the Bankers Trust
Company, Flfth Avenue and 42nd Street, will
remain open this evening
TO RECEIVE SUBSCRIPTIONS FOU
THE VICTORY LIBERTY LOAN
If you are in this vicinity to-night?this last
evemng of the campaign for the Fifth and
1 inal Liberty Loan?come into our office and
let us take care of all details of your subscrip
tion, free of charge. F
This loan must and will succeed. Shall it be
with your help or without it?
Bankers Trust Company
Member Federal Reserve System
Downtown Office:
16 Wall Street
Astor Tru?t Office:
Fifth Ave. at 42nd Street
I
His Foot In
A SMALL boy the other day walked up to one of those splendid
i^V marble pillars before the Victory Arch and stuck his foot in.
I went over and stooped down and felt of the crust. It was about
an inch and a half thick.
Then I stood in the middle of the avenue, all New York boiling
and swirling around me, and looked up at The Arch of Victory,
massive, majestic, white and heavenly, soaring against the sky-and
my heart ached!
Something made me feel suddenly close to the small froy.
What he wanted to know with his foot was what this splendid
Victory Arch he had watched his big, brave brothers march under
and flags w: i.nder and bands play through four hours was made of;
how much it amounted to, how dcep the glory had struck in. , i
I thought what a colossal, tragical, honest monument it was of
our victory over the Germans.. .Forty nations swinging their hats
and hurrahing and eighty-seven million sullen, unconquered Germans
before our eyes in broad daylight making a national existence from
now on out of fighting their bills!. . .Eighty-seven million Germans
we have all got to devote ourselves nationally to sitting on the necks
of six hundred years!
I am not sorry the small boy stuck his foot in. Millions of Amer?
icans, though in a politer way, are doing it all this week. We want
to poke through to the truth. We want something more than a
theatre-property Victory Arch, our soldier boys marching under it
as if it were a real one!
We want four and a half billion dollars this week to make it
honest to take down our lath and plaster arch and put it up in marble
instead.
We make this week a wager to a world?a four and a half billion
dollar dare, or cry to God that we are not a superficial pebple, that
the American people will not be put off with a candy victory, all
sugar and hurrahs and tears and empty, watery words; that we will
chase Peace up, that we will work Victory down into the structure
of all nations?into the eternal underpinning of a world.
In the meantime this glorious, alluring, sneering, beckoning
Victory Arch, all whipped cream and stone froth, a nation's gigantic
tragic angel cake, with its candy guns and its frosting on it, and
before our eyes the grim, unconquered souls of eighty-seven million
Germans marching through! We will let it stand, haunting us,
beckoning us along to a victory no small boy, no Bolsheviki nation,'
can stick its foot in!
4E3j?
GOVERNMENT LOAN ORGANIZATION
Second Federal Reserve District
Liberty Loan Committee, 120 Broadway, New York
)??
This space contributed to Help Finish thc Job by thc foilowing
members of the
LADIES' NECKWEAR TRADE
G. Sidenberg & Co.
Siegel & Goldschmidt
George FL Taylor Co.
J. A. Scott, Inc.
Engel, Bauer & Co., Inc.
Oppenheim & Baruch, Inc Schwarz & Levy
L. & E. Levy S. Epttein & Co.
Lewek & Friedman
Morris S. Mayer
D. KUch Co., Inc.
Tausick & Co.
Wni. Strauss, Inc.
Lowenstein Brot.