New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-09-22
BEDELL IN A POLICE COURT,
WHO MUST PAY FOR HIS BIG SWINDLING
OPERATIONS

| THE FULL EXTENT OF HIS FORGERIES NOT YET
| MOUNTAINEERING QUESTIONS IN
voLvED IN THE CAsE-THE TWO
| POLICY DEALERS INVOLVED IN
HIS CONFESSION HELD FOR
| EXAMINATION.
| Many people with whom mortgages are a favor
| ite form of investment fels some uneasiness yes
terday, when they read how James e. Bedell, the
trusted real estate clerk of Shipman, Barlow La
ROGUE & Choate, had obtained quarter Of mill
| ion dollars by palming off bogus mortgages on
clients of the firm But it is not likely that
the disclosures will cause any depression in the
value of such investments.
Much sympathy was expressed for Shipman
Barlow, Larocque e. Choate. The firms reputa-
ton is frst-class in every respect and this fact
| helped Bedel materially in his sw1ndling opera
| tions. Only opinion is current about Bedel
| he Is thorough going scoundrel. But his
methods displayed much misapplied ability
| They were simple audacious and successful
| TIE firm trusted him implicitly, and referred to
| him clients who wished 20 advance loans on
| mortgages Selecting a victim, he would tell
| him where money could be placed on
mortgages at six per cent interest or
more He would then prepare mortgage on more
property that he had selected for that purpose,
forge the signature of the Register, attach false
seal execute Otncr lOrSerleS JlIdt HiSHV NC
necessary to give the document a thoroughly
| legal aspect He was not at all scrupulous about
their number The victims check and the bogus
mortgage would go through the usual channels
Bcdell would obtain check for the fictitious
mortgage. Upon this Bedell would forge the
fictitious personages Endorsement This check he
took to his young friend John S. Henry and ex-
changed it for a check drawn by Henry on the
| Broadway Bank Henry deposting at the bank the
| check OF Shipman, Barlow. Larocque Il Choate
II is due to the fact that the lawyers clients I'M
pcitly trusted them and they implicitly trusted
Bedell that he was able to carry on this game
proftably and successfully for four years.
WHO WILL HAVE TO PAY FOR TT
The interesting question is: Who is going to
| foot the bill? The general opinion is that the
| bank must refund any money held on forged
Endorsements. If this view Of the case is correct
the Broadway Bank will have to reimburse the
law firm and get what it can out OF Henry
| That can not be pleasant outlook for the bank,
| for Henry is obviously man whose financial
resources are not great He is young notary
public and has desk in the office Of ex-senator
| William q. Traphagen, at No. 80 Nassau-st. As
the Broadway Bank no information about the
matter could be obtained.
! Henry was at his Office, It was said, in the
morning, bu+ left it before the morning news
paper reporters reached him. Ex-senator Trap
hagen, it was said by the Office boy was some
where up the Hudson Apparently there is
little uneasiness among tic clients OF the law
| firm who have been drawing interest on money
loaned on bogus mortgages. Between the law
yers and the court they feel comfortably certain
that they will recover what they loaned whether
Bcdell succeeds IN getting sI29,OVO OUT Oh uoss
d Emerson, the alleged policy dealers, or not.
WHAT WAS SAID AT THE FIRMS OFFICE.
Everybody looked gloomy and depressed at the
Office of Shipman, Barlow, Larocque d Choate.
Clerks spoke in whispers and moved noiselessly
about the Office Ex-Judgc ChOate showed vislbly
the effects of worry and anxiety.
I'VE are amply able" he said, =" to make good
any loss for which we are legally liable, but we
cannot undertake to say what is the extent OF
our legal liabilities until understand fully the
circumstances attending each forgery of a mort
gage. | think that is all that is necessary TO say
But does not the fact that such frauds could
be practsed on your firm, and escape detection
so long, show that there was some ueIect III
the system Of bookkeeplngP
{" | do not think So" replied Mr. Choate. y" we
have, | think, the same system of bookkeeping
here and keeping accounts as is used In every law
firm that is extensively engaged in real estate
business You can't conduct such business
without imposing trust and confidence IN some
one We had implicit confidence in Mr.. Bedell ana
he took advantage of it to swinde us. The
checks were always drawn in the name of the
mortgage and MIR. Bedell mlSipproprlated INC
DO you expect to recover any portion Of the
money stolen p ,o,ro .r+ % !. hut how
] can't now tell you"
Mr. Choatc said that he knew nothing personally
about James s. Henry, but ex-senator Traphagen
had called on him on Thursday and assured MN
that he a very nice and good young man.
TRYING TO FIND OUT THE EXTENT OF THE LOSS
Ex-Judge Shipman said that clerks had been
,ipin boOlxS that
it would take some time to find out how much he
had stolen. Mr.. Bedell," he said, adapted his
roguerv to the peculiar circumstances OF each VIC
tim on whom he palmed off a bogus mortgage
We had no reason to suspect him of dishonesty un-
til this discovery was made lie was an eAcee,i- G
ingly competent man, and had our entlre CONT
dence. We not aware that he had any eA-
trayagaut or improper habits. If we had known
that he was in the habit OF patronIlng Poncy-
shop he would have been at once dismissed
s L. NJ Barlow did not go to the oiiice all DAY.
H. was said that he would go TO the country TO-
day He has been completely, upset by the dscov- Gov
cry of Bcdes dishonesty lie was suffering from rom
severe cold at the time and was therefore less
capable of withstanding the blow. p.ao,,,,
Robert Center had loaned s43,50o on Bedelis
bogus mortgages lie was at the tme coiouVre
mer spent most of his time In his cutter Medusa'
Messrs Shipman, Barlow, lArocque & Choate are ar;
his lawyers and his only address gwen IN the Di-
rectory is their office. Solomon hanIord, wno ls
associated with the firm. has charge of his aialrs
lie called on Mr. Hanford yesterday morning to
discuss the Bedeil matter with him Mr. iiahlora
said IN the afternoon that Mn center was
quite content to leave the. matter In
the hands of the firm. Mr.. llanford
felt confident that Bedell had not
negotiated any more bogus mortgages than thQSe
contained in the list published yesterday; lie
did not think that the firm had been negligent
in any way in conducting It's affairs. lt had Deen
simply swindled by an employe IN whom 1t mad
implicit confidence ,,
The firm of Herman Koop Co. loaned
81 = 900 on bogus mort cages $4,000 on property
Johannes Koop is az present the only representa-
tive of the firm, his brother Herman who made
the loans, having died about seven months ago,
mortgages" he said, ." | should do it through
Shipman Barlow, Larocque q Choate. | have
nv interests / am sure that shall receive full
Justice as their hands"