New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-10-27
BEDELL TELLS HOW HE DID III.
EXPLAINING HIS RAsCAILY METHODS.


THE IMMENSE REAL ESTATE BUSINESS ooN-
QUOTED BY THE FIRM HE IMPOSED UPON
James f. Dedell was further examined in the SIT
preme Court, Chambers, yesterday, In inc sun "
shipman, Barlow, Larocque choate' against 'he
pant NJ the state NJ New York He took his seat at
a small table placed In the corner Of the court room
with tho counsel in the case, Elihu Root appearing
for the plaintiffs and william Allen Butter ior ho
bank Justice Barrett was on the beneh oispos'ns VI
the ordinary business Of the court and the examination
of Bedel in the conducted IN low tones anu
was with difficulty understood by the crowd Oh III
terested persons who gathered around. In response
to questions by Mr. Butler, Bedell described 'he
method pursued in the loan transactions OF the hrm
as follows
When Judge shpman into the firm look
charge OF the real estate business After Judge
Choate was admitted. practically controlled the &c
partment In half dozen or so cases hanoeu
him the abstracts and he examined them ana ques-
toned me about them prepared the searches ana
papers myself and closed the title myself In my own
noon and at NV own desk. asked Judge Choate
about questions Of title and he would pass upon them
and acted under his direction In point OF fact
never became actual head of the department. Mr.
Cboate used to take my statements regarding search
es closing Of loans titles etc. and then sign checks
in accordance with them had as an assistant De
tween May 1884. and June. 1883, Charles I. Mar
shall and for part Of the time. George L. Prentiss
They examined the deeds In the Registers Office Wills
etc. and reported me- The real estate Depart
ment was considered large part Of the firms bus-
ness 1t amounted to never less than $1Oooooo' ana
sometimes reached &c 100000 year
passed upon questions as what loans should be
made upon bond and mortgage so far as tide was
concerned, and persons lending money passed upon
questions Of sureties Brokers daily came 10 me TOT
loans and would submit their requests to the firms
clients and report TO the brokers' The borrower was
seldom produced before the firm. ] prepared re-
quests for searches, attended to examinations VI
title. and generally fixed the compensation to the
firm except in largo loans The clients checks gen.
orally went into the firms bank account, and they
rave the borrower check the amount less their
own commission. delivered the firms checks to the
borrower. The Bank Of the State OF New-forh was
the sole bank Of deposit for these transactions de-
livered the bonds and mortgages to the lenders.
requested checks in every case from the cashier and
he drew them and procured the firms signature, and
then handed them to me. The firm never refused 10
sign / was frequently called in at the signing to
explain The borrowers were never present.
Bedel stated that his salary in 1884 was $1,000 and
afterwad was raised to 1900. In 1883 or 1884 he
bought his farm in Westchester County He first
bought eighty acres, to which he added two small
pieces afterward. The property was free and clear
The total cash paid was about $1,000 He aferward
spent from $4,000 TO $4,000 for stock and
improvements. Mr. Butler examined Bedeu further
in regard the checks. In each case Bedcu said
that the Endorsed were those of real persons
There fictitious names The witness said he
had recollection Of any members Of the firm having
ever made any inquiry before signing the checks
Dodge and he had keys TO the office safe, and he could
get at 1t without consulting them. he had borrowed
$50 900 from the Farmers Loan and Trust Company
on property of Henry d. Sayer in West Forty-second
St Sayer knew nothing about this. In order to Dc
ceive the firm Bede entered the properly on the
books as being I'm Fiftyeghth-st. The examination
will be continued on Tuesday.