Gifford v. Thompson

• Decision Date: 04 September 1874
• Citation: 115 Mass. 478
• Court: United States State Supreme Judicial Court of Massachusetts Supreme Court
• Parties: George H. Gifford v. John H. Thompson & others

115 Mass. 478

George H. Gifford v. John H. Thompson & others

Supreme Court of Massachusetts

September 4, 1874

Bristol. Bill in equity by George H. Gifford, trustee under the will of Pardon Gifford, against the residuary legatees under said will, to obtain the direction of the court as to the disposition to be made of a sum of money received from the New Bedford and Taunton Railroad Company, in lieu of certain shares of the stock of said corporation, in which part of the trust fund had been invested.

The case was reserved by Morton, J., for the consideration of the full court upon the bill and answers, from which it appeared to be as follows:

The last will and testament of Pardon Gifford contained the following clause: "Eighth. All the rest and residue of my estate is to be placed in the hands of a trustee or trustees, and the income arising therefrom to be paid to my two grandsons, viz.: John H. Thompson and Pardon G. Thompson equally between them, annually, during their natural lives and if one of them should die before the other, the survivor to take all of said income during his natural life, provided the one that dies first leaves no children, and at the death of the last one of my said grandsons, namely, John H Thompson and Pardon G. Thompson, the aforesaid rest and residue of my said estate to be equally divided among my great-grandchildren that are living at the time of the death of the last of my said two grandsons. If there should be none of my great-grandchildren at that time, then it is to be equally divided between the widows of my said grandsons, if any living, and the children of my brothers, namely, Isaac Gifford, George W. Gifford, Paul Gifford, and also Ruth Weeden and Abby Robinson, children of my brother Benjamin Gifford, and the children of my wife's sister Barbara Gifford, and their heirs."

A part of the "rest and residue of said estate" was invested in the stock of the New Bedford and Taunton Railroad Corporation. That corporation acting under the authority conferred upon it by the St. of 1873, c. 20, ^[*] sold all its franchises and property, and being about to wind up its affairs and dissolve, its directors passed the following vote: "Voted, that a dividend of $ 150 per share is hereby declared, payable to stockholders of this day on the surrender of the certificates, when the treasurer shall have received $ 750,000 on account of the sale of the road including therein the drafts of our stockholders on our treasurer for and...