Direct Family

Charles Hugo (Chappie) Seilern         1899 - 1988

Freiheit

Nr. 1298 Samstag, 21. November 1931

Translation

Three Viennese Counts inherit 200 million dollars

The Counts Seilern from their American grandmother

About a truly unusual American inheritance, which the three brothers living in Vienna, Counts Karl Hugo, Oswald and Antoine Seilern, recently began, we learn the following:

The three brothers are sons of Karl Josef Johann Nepomuk Grafen Seilern und Aspang, who was born on 14 May 1866.

He married in New York on February 10, 1898, the daughter of the very rich American philanthropist, Mrs. Antoinette Woerishoffer.  They had three sons:

Karl Hugo, who was born on 23 March 1899 and married Countess Marie Johanna Larisch von Moennich, daughter of Count Friedrich Larisch von Moennich, in Vienna on 16 January 1924.

Oswald was born on 20 August 1900 and married Countess Franziska Baworow-Baworowska on the 11th of January 1928; and Count Antoine, who was born on 17 September 1901 at Farnham in the English county of Surrey, where his mother, Countess Antoinette Seilern née Woerishoffer, passed away after giving birth.

After the death of his wife, Count Karl Josef Seilern returned to Austria with his three sons.  Later, in 1913, he married Ilse Olden of Baden-Baden (next page).

The three half-orphaned children grew up to be men, their rich grandparents in New York provided for their upbringing and well-being so generously that they were even able to keep racehorses.

The youngest, Count Antoine Seilern, who is still unmarried and who has expressed a greater interest in racing, was even able to take over the Kleinhart stud, where he breeds thoroughbreds for his racing stable, in addition to the important racing stable of 18 horses he owned the previous year.

He also undertook a trip around the world last year, from which he only returned in May.

He is currently back in New York, where he must be present in matters of legacy.

The fortune inherited by the three Seilern brothers after their grandmother, who recently died, amounts to no less than 210 million dollars, each of the brothers inheriting 70 million dollars.

Converted into Austrian currency, this amounts to one billion five hundred million schillings (rounded downwards).

One gets an idea of the size of this sum, considering that the Austrian federal budget is 1’900 million schillings.  The three Seilern brothers could thus rehabilitate Austria with their inheritance without further ado.

Today, perhaps each one of them is much richer than Baron Louis Rothschild, who was once estimated at more than 500 million shillings.

*           *         *           *

The $100’000 fiddle      1975

In the early 1970s the Swiss franc broke away from the 4.30 mark against the dollar and started to sharply decrease in value.  Paps complained bitterly how he was ruined and did not have enough income.

He was in Lausanne in April 1975 and I came across a fresh sheet of carbon paper which had been used to produce a copy of a letter he wrote to Pandia C. Ralli (partner Carter Ledyard & Milburn, US Trust Co. lawyers).

I held the carbon paper (see Note below) to the light and read the letter which went something like this

“My financial situation has become very difficult due to the weakness of the US dollar, and I would therefore like to ask whether the Trust Company would be willing to pay an extra $100'000 a year out of capital for the next 10 years."

At that time the trust must have been worth somewhere between $10-12 million.

I relayed the information to Boy, Nettie and Henriette so we were prepared for what was to come.

Note: For the younger generations, a sheet of carbon paper was used in a typewriter between the page which was being typed and a blank page behind.  Typing allowed carbon to be deposited on the blank page thereby producing a copy.  A carbon copy.

The Trust Co., obviously not wanting to take any chances, answered as follows :

United States Trust Company of New York

Barry J. Geller, assistant Vice President

Count Charles Seilern
Wasserburg
3140 Pottenbrunn
N. Oe, Austria

May 6, 1975

Dear Count Seilern:

I received a copy of your letter to Mr Ralli and your original to me with regard to your request for a discretionary principal distribution of $ 100.000 per year from the trust under will Anna Woerishoffer for your benefit.

First let me say that we cannot consider a request for a ten-year period because as you know, market conditions and dollar equivalents change on a daily basis and although your request may have merit today, it may not have the same merit in 1976 or in years to come.

Therefore, taking this year’s situation as a separate problem, we have considered your request for a $ 100.000 distribution for 1975, based on your loss due to inflation and monetary exchange conditions, and would look favorably on granting your request this year.

As these distributions eventually would affect the shares passing to your children and due to the large amount involved, we would appreciate your advising your children of your request and having them write to me acknowledging their approval.

As soon as we receive the letters, we will be ready to transfer the additional $ 100.000 to you. We would also be willing to consider a similar request next year based on conditions that then exist.

I hope this will find you in good health and I hope that on my next trip I will have the opportunity to see you again. Should you have any questions on this matter, please feel free to write me directly.

Sincerely yours,

Assistant Vice President

cc: Mr Pandia C. Ralli

Then followed a (kind !!!) letter from Paps to me (and presumably to Boy, Nettie and Henriette):

Wasserburg 14. May 1975.

My dear Peter

As I already told you I have written to the Trust Co. asking for release of trust funds for a number of years and the inflation going on. I am enclosing their answer in which, as you see, they agree to the release for this year and the coming one of $ 100’000 each. But, as this money would come from a trust fund, which would be distributed amongst my children after my death, they ask for their approval.

I hope you will have no scruples to give this, for which, of course, I would be most thankful.

In this case, I would ask you to write to the Trust Co. a letter, the contents of which I have sketched in also enclosed copy.

Best love

DRAFT

Dear Mr Geller (or Barry ?)

I approve to (sic) the release of $ 100.000 in the years 1975 and 1976 from the trust under will Anna Woerishoffer in favour of my father Charles Seilern.

Yours sincerely

and my answer:

26th of May 1975

Dear Paps,

Thank you for sending me a copy of the Trust Company’s letter.  Their decision to ask us to endorse a release of capital has forced upon us a responsibility, which involves everybody’s future.

The Trust Company is in effect asking us to go against the very reason the trusts were created which was for our wellbeing and that of our descendants.

By reducing capital at a time when both the dollar and US stock markets are at low levels would ease the problem momentarily. At the same time it would delay a lasting answer to the problem which might then become extremely difficult at a later date.

Would it be possible to look at all ways of reducing expenses before choosing a solution that will engage our future and that of succeeding generations.

All my love

then a letter from Paps to Boy:

5th June, 1975

My dear Boy,

Thank you for your letter of 26th May.  First of all, I want to point out that the « Family Trusts » you speak of are not quite the right expression. The trusts which U. Antoine and I inherited from our grandmother were left only to us and we could nominate as heir or heirs just whom we liked. But in case the main trust, which dissolves with my death and would become free capital, could be left to anybody else but my direct descendants, i.e. my children, death duties would have to be paid- otherwise not. I, therefore, many years ago waived my right to name anybody else than my 4 children. (Later you all 4 created 4 revocable trusts for this case).

If U. Antoine has made any special arrangements which, I think, is not the case, then, should he die before me, his trust would go straight to me. But here, too, have I also relinquished this possible inheritance in favour of my children. This, I wish you all to remember very well!

With my death the trust, as already mentioned, would become under you a revocable one and every child can dissolve it at any time. I would take any bet (which, unfortunately, I will be unable to cash !) that in more or less a short time one or the other of you will want to withdraw capital from the trust to make other investments – like such in other countries or to buy land etc. and you will dissolve the trust again for your children if times do not change radically, the risk of devaluation is too great.

The amount the Trust Co. was willing to release out of the main trust for the next 2 years is in comparison to the size of the trusts and to the value of the free property you will inherit from U. Antoine and me is, despite the devaluation of the dollar, so small that it would hardly have played a role at all – far less than 1%. But where money is concerned things and feelings seem to change. Forgotten what I have done for you all – the houses, property, flats, cars, liberal allowances etc. etc. which were given to my children in good times. The very first time I make a request it is turned down. I am bit bitter and disappointed and have learnt a lesson.

Best love

P.S. : I would also like to point out that I have been economizing since a long time. Here in Wasserburg amongst many other things 5 employees have been disposed (sic) of, our travelling has been reduced (no safari in the past 3 years, no winter trip this year) and a lot of other things which I cannot give in detail. But, as you will know or find out, it is easier to economize in theory than in practice !

As you and Peter wrote more or less the same letters, I am sending a copy of this letter to him.

and a last letter to me: 5. June 1975

My dear Peter,

As you and Boy wrote very similar letters I am sending you here a copy of my letter to him.

Best love

The matter was not mentioned again.

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