Erle Gardner - The Case of the Troubled Trustee

"Yes, sir."

"And did you discuss with Miss Ellis the manner in which you proposed to administer the trust?"

"Yes, sir."

"The first conversation," Mason said, holding up the index finger of his left hand, "let's have the first conversation. What did you tell her?"

"I told her what the income from this money would be; that it wouldn't support her in the rather expensive style to which she had been accustomed; that she would undoubtedly be married prior to the termination of the trust, and that I proposed to give the money to her in such a way that she would have approximately equal monthly installments for four years. That this would enable her to have a good wardrobe, to travel, to keep herself in a position to meet the right sort of people."

"In other words," Mason said, "to exhibit herself favorably on the matrimonial market?"

Dutton frowned. "That wasn't what I said."

"How much have you given her on an average each year during the time the trust has been in effect?"

"Approximately twenty-four thousand dollars."

"What is the value of the money in the trust fund at the present time," Mason asked, "the market value of the securities and the cash on hand?"

"Approximately two hundred and fifty, thousand dollars," Dutton said.

Judge Alvarado leaned forward sharply. "What was that figure?" he asked.

"Approximately two hundred and fifty thousand dollars."

"How does that happen?" Judge Alvarado asked. "You had a trust fund of one hundred thousand dollars. You dispersed ninety-six thousand dollars?"

"Yes, Your Honor, but under the provisions of the trust, I was empowered to make investments, to buy and sell securities and to keep the trust in a healthy condition."

"And you made that much profit?"

"After taxes," Dutton said.

" Well ," Judge Alvarado remarked, "you certainly showed remarkable ability."

"Did you," Mason asked, "tell the beneficiary the extent of the trust funds?"

"No."

"Why not?"

"Objected to as incompetent, irrelevant and immaterial," Hamilton Burger said.

"I think I will sustain that objection," Judge Alvarado said. "The answer is that he didn't tell the beneficiary. To your knowledge, did she have any idea of the nature and the extent of the trust fund?"

"No."

"Now then," Mason said, "the trust fund was created so that you could protect her from herself."

"Yes."

"Did you feel that if she knew the exact amount of the trust, that it would tend to defeat the purposes of the trust; that she would extravagantly espouse some lost cause and-"

"Your Honor, Your Honor," Hamilton Burger literally shouted, "this question is viciously leading and suggestive. I object to it. It is incompetent, irrelevant and immaterial."

"Sustained," Judge Alvarado snapped. "Counsel will refrain from this sort of question."

However, the jurors, exchanging astonished glances, showed that the point had registered and made a deep impression on them.

"Now then," Mason said, "did you know and do you know a Fred Hedley?"

"Yes."

"What was his relationship to Desere Ellis?"

"He was described by her on occasion as her fiance."

"Did you approve of him?"

"I did not."

"Why?"

"Objected to as incompetent, irrelevant and immaterial," Burger said.

Judge Alvarado hesitated. "I think," he said, "I am beginning to see a pattern in counsel's questions. A pattern which may well be pertinent to the defense. I am going to overrule the objection. The answer will be limited as to the state of mind of this witness. Further, it will be limited to the actions of the witness in connection with the trust fund."

"Answer the question," Mason said.

"I felt that he was a fortune hunter."

"And was it because of him that you refrained from telling Desere Ellis- Just a minute," Mason said, as he saw Hamilton Burger on his feet, "I'll reframe that question. Did that idea on your part have anything to do with your actions in connection with giving information of the amount of the trust fund? You can answer that yes or no."

"Objected to," Hamilton Burger said.

"Overruled," Judge Alvarado said.

"Yes, it did."

"In connection with the trust fund, did you have securities of a company known as the Steer Ridge Oil and Refining Company?"

"I did."

"Those had been part of the original securities transmitted to you as trustees under the terms of the will?"

"Yes."

"What did you do with those securities?"

"I sold them."

"Did you ever discuss that sale with the beneficiary?"

"No."

"What had she told you about the Steer Ridge stock?"

"She was very much interested in it. She became somewhat excited because they had sent her a brochure telling about the valuable oil properties they had under lease. She knew that her father had been enthusiastic about the stock."

"And did she make any request to you in connection with those securities?"

"She asked me to hang on to them."

"But you disregarded her request?"

"Yes."

"And then what?"

"Well, I sold the securities and… well, after a while I reinvested."

"In those same securities?"

"Yes, in a block of that same stock."

"Why?"

"I had a tip that- Well, I had reason to believe that there might be a proxy fight, and they might turn out to be a good investment if two different factions were going to fight for control of the company."

"How much did you buy?"

"Twenty thousand shares."

"In connection with those securities, did you have any contact with the decedent, Rodger Palmer?"

"I talked with him over the telephone, yes."

"And what was the nature of that conversation?"

"Palmer told me that he had been in touch with Desere Ellis; that he had been trying to get a proxy to vote her shares in the Steer Ridge Oil and Refining Company; that she had referred him to me; that if I would co-operate with him it would be possible for us to greatly enhance the value of the securities held by Miss Ellis or for her benefit."

"Just what did he want in that connection?"

"He said that it would be necessary for us to have a meeting in great secrecy."

"Did you arrange such a meeting?"

"After he told me that if I would see that he had the proxy for twenty thousand shares, and an unsecured loan of five thousand dollars, he would see that Fred Hedley would be placed in such a position that it would be impossible for him to marry Desere Ellis, I told him a meeting might be arranged."

"And what happened?"

"He told me that at a certain time on the evening of September twenty-first, I was to call a certain number; that that would be the number of a pay station; that the person who answered that number would give me another telephone number to call which would be the number of another pay station; that if I would call that number, I would be advised where to go in order to meet him."

"Did you make such a call as the first one?"

"Yes."

"And what were you told?"

"I was given the number of the other pay station, the number which I was to call."

"Was that the decedent, Rodger Palmer, with whom you were talking?"

"I don't know. The voice sounded disguised. It sounded like a man trying to talk in a high-pitched voice. It could even have been a woman. I thought at the time it was a man. Thinking back on it now I am not so sure."

"And you called the next number?"

"Yes."

"And what happened there?"

"A voice told me to go to the seventh tee at the Barclay Country Club, to be there just as soon as I could get there; that there had been some mix-up in time schedule; that the man I was to meet was going to be forced to leave in just a few minutes; that I was to get there at the earliest possible instant."

"Was anything said in any of these conversations about money?"