The New York herald., 1873-08-07
Expose Of the Real Estate Opera
tiOns of G. M. Leslie.
PHILADELPHIA in A FERMENT
Hundreds Of People Ruined-How the
Swindler Amassed q Million of DOL
lars-Leslie a Fugitive and
or for Europe

pose OF the great frauds in the office Of the Re-
corder OF Deeds. 1t is a subject that affords food
for intense alarm in every circle to-day, and Is
vital to the interests Of every of real estate
throughout this great city. The frauds have been
performed so systematically and in such q
surprising and successful manner that but
few individuals who have purchased prop.
erty Of late years can leel safe until
his or her title has been searched thoroughly by
hands whose integrity is undoubted The rumors
concerning the swndle were 80 startling and con-
hicting late at night that 1t was matter OF mpos-
sibility at the time when the HERALD's exclusive
account was prepared for any one to approach
within hundreds of thousands of dollars the exact
figure which the alleged cOnspirator, Leslie, had
succeeded in obtaining from his victims. At one
time 1t was placed at over million dollars,
another moment 1t was seven hundred
thousand, and finally IL was settled
that his fraudulent transactions amounted to
$36000O. This morning these figures have been
considerably reduced, and 1t will be weeks yet be-
fore the whole is made known, and even then II
may far exceed the calculations OF those who are
now at work examining the records. The Recor-
der's Office In Chestnut street has been thrOnged
throughout the day with anxious property
owners who have had dealings with Leslie.
1t was painful to watch their movements. Some
have given up in despair, aud settled feeling OF
ruin seems to abide with them. They have loitered
around In knots of twos and threes, with the title
deeds Of their property in their hands, many Of
which have as Is alleged, been manipulated disas-
trousy for their interests by Leslie, and discuss the
matter; Others more excitable, rush frantically
here and there, vainly demanding that Leslie be
given over to them for summary execution, while
dozens fly around the law offices OF Third and
Fourth streets, consulting legal gentlemen as to
the best means for obtaining redress. One poor
German, who lost $4 900 through the alleged mis-
representations and fraud OF Leslie, was violent
in his
DENUNCIATION OF THE swINDLE
that he had to be carried away by an Officer, and
was evidently insane. Many ladies were also
present, looking after their interests, and were
greatly excited. In fact, 1t was sort Of "Black
Friday" for property owners, and will long be re-
membered in this city. q. M. Leslie, the alleged
originator and chief worker the swinding scheme
is q native of this city and is man OF fine ply
sique and splendid business qualifications. He has
for years been one oil the largest dealers in real
estate OF every description that Philadelphia has
produced, and his yearly sales have in times past
reached hundreds OF thousands Oi dollars. Exactly
ness s at present Unknown but it is coniectured
that he began three years ago. 1t is said that TO
successfully accomplish his designs 1t became
with the clerks or the Recorders office. This
during the administration OF Mr.. Hous.
man. His success In this respect was only
too nattering as the result proves. His
previous sterling integrity and unblemished repu-
tation as man OF honor gained him the goodwill
OF not only the Recorder but the search clerk, and
as he was frequent visitor TO the Oflce on busi-
ness appertaining to his profession he began to be
every facility in
SEARCHING FOR TITLES OF ENCUMBERED PROPERTY.
At last, having become involved heavily through
unfortunate speculations, It is supposed that ne
resorted TO this huge and ingenious mode OF SWIM
ding as the only means by which to clear MS IN.
bankrupt in the courts he more assiduonsy culti-
waited his acquaintance in the Recorders office.
that no suspicious were entertained OF
ANYTHING being being wrong, and uo the search search
him to make his own searches for encumbrances on
all properties, and when he had fixed them to suit
himself would afix the seal OF the Recorder to the
examination. In this manner Leslie Is alleged to
have disposed OF hundreds Of lots of ground that
inc "ciear certlacate.n under iSe n Recorders
SEAL disposed OF them at 'great profit to himself"
He had made himself such an authority on real es-
tate encumbrances and transfer matters that his
experience and advice were sought by people
OF every grade. During the past three years he
was heavy operator as a builder, and erected on
speculation large rows OF city residences, some of
which have created great deal Of attention by
their beautiful locations and superb designs.
one known as ST. Adams" The ground on which
it was erected was taken Yp by him at price OF
nearly quarter OI u mlluOn OIL 0OllarS, IOr winch
he gave heavy purchase money mortgages, and
then subdivided the ground into numerous lots.
BY
SERIES OF HoKUs.PoKus coNvEYANcING
through dummies" ground rent, having prin-
cpal OF 81, 500, was saddled to each OF them. TINS
part nicely fixed, and having placed the operation
In the usual manner of "bonus" building transac-
tons, he Is alleged to have laid his first great base
work for fraud To make success douby sure, he
named and just here the same dummy"
which had acted as ground landlord turned mp,
this time, however, appearing in the r0,e OF mort
gagee TO the amount OF twenty-five hundred dol
lars to thirty-fve hundred dollars on each prop
erty. Like the ground rents, the mortgages were
presumably without consideration and no money
passed. Thus the encumbrances on the properties
exceeded their value. Consequently he either sold
them outright % tat at heavy discount, or the ground
lateral for loans. Wishing still farther to IN.
additional "coateras" on the same by getting
''clear certificates" from the Recorders ofice as
he mad done hundreds Of times before, and none
but he was the wiser, with the possible exception
OF the clerk, whose duty IL to do the searching
and for which the Recorder Is allo wed certain fee
by law. To make the swindle the more complete
and plausible to the dupe IL was requisite that the
existence of one set OF these claims against the
properties should be concealed and searches clear
shape and accepted by the lenders and the money
on the third liens paid over. Such was
THE system PRACTIsED BY LESLIE
No doubt the head Of many family will
awaken ere the week closes to the knowledge
that the homestead Tor which he has wrought
has been encumbered for far more than its intrin-
sic value by heartless knave who is to-day a wan
derer on the lace OF the earth, with q load OF sin
resting on his soul that none but hend lncarnate
could carry.
AT last, as in almost every case OF fraud, the
whole long string OF knavery was brought to light
by the Sherln, who advertised some of the prop
erty thus manipulated by Leslie for sale. Careful
searches were made by mortgages at this time,
and the result was the great tumult and
tnmbling in real estate. The present incumbent,
Mr. Walton, was called upon by the HERALD
representative this morning, who, after waiting
some time for the rush to subsIde, was enabled
to have short talk with him as regards
ectly ast0unded at the altogether sudden and
unexpected denouement. As for Leslie he con-
sldered him very shrewd man, but he never en-
tertalned the idea that he was the scoundre that
II would appear he IS. He could give no definite
estimate as TO the amount OF the frauds, but said
t was large. All OF this had been carried on pre-
vious to ms election to office and he thought IL
strange indeed that his predecessor could have
been so blinded to the real situaton as to permit
o man, 1t made no difference how respectable