The sun. [volume] (New York [N.Y.]) 1833-1916, 1879-03-12
DAVID J. ELY'S OPERATIONS.
TIE VESTRYMIN PICTURED IN COURT
AS A MIN or THE WORLD.

AS MIN or THE WORLD
Castles In tho Air Erected In Connecticut, and
Mundane bonds Sold In New York. aud
= About what those Bonds were Worth.
Robert II. Thompeon's suit against the
estate Of tho late David J. Ely was closed yes
terday with verdict for Mr.. Thompson. Mr..
John Tracy. in summing up for tho estate. spoke
OF Mr.. Thompson M ono Of n maraudng crew
that were seeking to tnrnish the fame OF a good
man. Mr.. Tracy hoped that the jury would not
aid in bringing shame upon tho name OF MIR.
Ely. who was wealthy merchant at 101 Wall
street and vestryman OF st. Georges Church.
Tho story told by Mr. Algernon S. Sullivan in
summing up Tor Mr. Thompson was substan-
italy rs follows: Roswell @. Peck was. prior
10 1879. broken down man. said to have been
supported in tho almshouse OF tho town in
which he lived in Connecticut. The testimony
was not clear whether or not he was relative
OF Mr. Ely. A Mr.. Haywood had sunk consid-
cradle money on tract OF land IN Elst Haddnm.
Conn. consisting OF about 400 acres. Whom
Haywood died there were standing on the land
saw mill grist mll.a -four mill, waro-
house. a store and a dwelling Ono Cnrew.
becoming owner ol the property offered Il for
paio for long timo In vain. AT length Peck
$4,000. He got the ready money from MIR;
Anderson and ms security gnye him second
mortgage on The land for $4,000, This WIS in
February. 1872 ~ the. next, April either Peck
or Anderson applied TO Ely for money Ely
advanced $4,000 to Peck. who probably paid
Anderson from it his 1000. and Anderson
turned over his mortgage TO Ely. In this
suspicious way. Mr.. Sullivan said. Fly got con
re rem III s' with 'p eet Probsby Mr sniivHan
continued. Mr.. Ely hoped to deveop tho. prop
erty when he advanced the $4,000. hut he did
not do 81. At all events. the way in which he
became possessOr Of 1t must have mndc him
aware Of its market value. In 1874 n plan was
trust was made by Peck to Ely. which wns in
effect a mortgnge ON the property Tor $4,000;
This decd OF trust was u basis Tor the issue of
seventy five $1,000 coupon bonds; but clause
was inserted 10y virtue Of which no foreclosure
was allowable except unon a written demand
bonds.
In juno. Mr.. sullivan continued Peck came
70 New YORK and selected two men-a Mr..
Frazor and Joseph c. Bowman-to put the bonds
on the Market Frazer was niterward sent to
State prison. Bowman testified that when no
worth OF tho bonds. Peck sent him to
Ely. and that Ely told bowman tina, il was safe
10 lend 10 per cent on the bonds II all the other
claims were paid OF Suppose" Mr.. Bow
man suggested, that tho Interest, is net paid.
replied. not unless the holders of ffty of the
bonds agree 70 do SO in writing" In this way
Ely sent out his agents to sell tho bonds, know
ing their real value. and knowing the practical
impossibility of forcing u foreclosure. To mako
this sure he put away twenty-five bonds. which
after after his O dSah in 1s77 tbs lett only i MY y
bonds to be- put on the market: and Of these he
himself took 10 which were also found in his
enfo in a separate package after his death.
Thompson lent 1900. tnkng four OF these
bonds rs security. first having sent his friend
Vantine. who had accommodated HIM with some
of the money. TO Ely. who. while he consented to
net ms reference. omitted TO tell him the clause
That practically made impossible the forcing OF
n foreclosure. but. on tho other hand told him
that he himself had madean offer OF 80 per cent
for the bonds. but had been Indignantly refused
On tho strength OF this assurance Thompson
lent the money.
The testimony was Mr.. Sullivan went on to
say. that people TO whom these bonds were in
dustriously offered hocked 70 Ely's Office like
crows To show whittier Ely expected tho
money borrowed on these bonds TO 20 MIR. Sui
Ivan iusianced Bowman's testimony that Ely
had reproached him for not bringing the money
20 him instead u 70 Pcck. He said 1t should DO
used to pnv or tho first lion. Again Ely re-
proachcd Bowman. explaining that the money
DO received was TO pay OF his original advance
of 5000. That Mr.. Ely knew the land was not
worth anything Ike the face value OF the seven
time he could have become possessed Of II 10y
forecosing himself All he had 10 do WIS to
bring in the first mortgage. but when Carew
wanted TO forrclose, Ely said No; will not
property that am representing to DO worth SO
much more
Nj. sullivan continued rs follows: ITO
Bowman. Ely said. when served with the COM
poor follow, and we'll worry him out After
ward Peck became the plaintiff in suit TO re-
plevin the four bonds Leld by Thompson. but
Ely. again fcck's yQkelellOw. furnished tho
money to carry il on"
In conclusion. Mr.. Sullivan asked for n YER
dict Of BY, that part Of the So 500 loan which
Thompson had Guaranteed 20 his customer, Tor
whom he had managed the transaction. and
H5S.90 Interest.
The Jury after five minutes absence. gave
Nj. Thompson a verdict for the fun amount
Claimed. An appeal Is 10 Dc made, as was dOnO
In the Whitt,more case.