In re Gould's Estate

• Decision Date: 04 October 1898
• Citation: 51 N.E. 287,156 N.Y. 423
• Parties: In re GOULD'S ESTATE.
• Court: New York Court of Appeals Court of Appeals

156 N.Y. 423

51 N.E. 287

In re GOULD'S ESTATE.

Court of Appeals of New York.

Oct. 4, 1898.

Appeal from supreme court, appellate division, Third department.

In the matter of the appraisal for taxation of the estate of Jay Gould, deceased, under the act taxing transfers of property. From an order of the appellate division (46 N. Y. Supp. 506) affirming an order made by the surrogate adjudging the amount of taxes to be paid by the property of the estate transferred by will, the state comptrollers appeal. Modified and affirmed.

David B. Hill, John R. Dos Passos, and Edmund Francis Harding, for comptrollers of the state and city of New York.

John F. Dillon and Harry Hubbard, for executors and trustees of Jay Gould's estate.

PARKER, C. J.

In a codicil to the last will of Jay Gould appears the following: ‘My beloved son George J. Gould having developed a remarkable business ability, and having for twelve years devoted himself entirely to my business, and during the past five years taken entire charge of all my difficult interests, I hereby fix the value of his said services at five millions of dollars, payable as follows: Five hundred thousand in cash, less the amounts advanced by me for the purchase of a house for him on Fifth avenue, New York City, and such amount as I shall hereafter advance to purchase stables; five hundred thousand dollars in Missouri Pacific Railway Co. six per cent. consolidated mortgage bonds; five hundred thousand dollars in St. Louis, Iron Mountain & Southern Railway Co. consolidated five per cent. bonds; five hundred thousand dollars in Missouri Pacific Railway Co. trust five per cent. bonds; ten thousand shares of the stock of the Manhattan Elevated Railway Company; ten thousand shares of the stock of the Western Union Telegraph Company, and ten thousand shares of the stock of the Missouri Pacific Railway Company,-all the foregoing bonds and stock to be treated as worth par; and the receipt of the said George J. Gould in full for the said services and all other services down to the time of my death, not otherwise paid for by me during my lifetime, unless I shall hereafter by a different testamentary provision provide, shall be all the voucher required by my executors and trustees.’ Upon the hearing before the appraiser evidence was introduced tending to show an agreement between Jay Gould and George J. Gould that the latter should perform services of an important nature for the former, who in turn should compensate George J. for such services, and that the provision quoted was inserted to provide such compensation, and for no other purpose; and, further, that such sum was agreed upon by the parties. In the appraisement proceedings this was found as a fact, and, the appellate division having affirmed such finding, it is not open for inquiry in this court, and the further discussion will treat as established that it was the purpose of the testator by this provision of the codicil to his will to discharge his debt to his son. It should further be observed that George J. Gould consented to accept payment for his services under this provision. He testified upon that subject as follows: ‘Q. You are the son of the late Jay Gould? A. Yes. Q. Mr. Gould, in the eighth article of the second codicil of your father's will there is a provision which I shall ask you to read for the purpose of refreshing your mind. [Copy will handed to witness, who looks at same.] When did you first know of that provision, and in what manner and under what circumstances? A. A week before my father's death,-about a week. Q. State the circumstances. A. He was sick in bed, and he told me where his will was, and told me to go and get it; and when I had gotten it he asked me to open the envelope, and read it through, which I did. Then he asked me if I understood it. I said I did, and then he asked me...