The sun. [volume] (New York [N.Y.]) 1833-1916, 1896-05-29

Why He Gave II to q Lawyer and Arter-
ward stopped Payment OF II.

NEwBURGH. May 2s.-An interesting case, In
which Russell Sage OF New York and Lawyer
Frank p. Demarest of Rockiand county figured.
was before Judge Dickey in the Supreme Court
this morning. In 1894 4. c. NJ. Rand acquired
By purchase q Rockland county farm. At first
he mortgaged 1t to Mary F. Ward, and then to
Kate Reese-Terris. the latter mortgage being
for $4,000. Mrs. Ward. the first MORTGAGE.
wanted her money. and to get 1t she started
foreclosure proceedings. Russell Sage. who is a
IF end Of Rand. bid the property In at the sale,
but subsequently, refused to pay the required
10 per cent. Then the farm was offered for sale
q second time. and Sage again bid 1t in at .
greatly reduced figure.
The case came before Judge Dickey to-day on
application Of Sage's friend Rand to compel
Demarest to give up his claim for $1,000. AL
legged to have been secured by trickery. The
Reese-Terris mortgage and interest amounted
to s.. 700. She alleges that Demarest led her
TO believe that Mr.. Sage would pay $500 for the
claim. and as she was also led to believe that
that sum was all she could get she accepted the
amount. Demarest's fee, she said, WAS TO be
$50 for securing the $500. She says this deal
was fixed between the two sales, and that when
the pai srs were executed assigning the mort
gage Demarest oficiated as her lawyer. He
made out tho papers. she alleges. in the name of
his wife. and for the $500 Mrs. Demarest be-
AT the second sale Demarest, with this
document IN his possession. made terms
with Sage. who paid Demarest 81 500 for the
assigned mortgage which cost $500. Sage gave
his check on the Importers and Traders Ma
tiona Bank in New York for the amount.
II is the 81 200 which Demarest made out of
the deal that Is in dispute, sage's friend Rand
claims that he is entitled to II. as he believes
that he ought TO have the benefit OF the mort
gagee's liberality in accepting less than one
quarter OF the .ace OF the mortgage. Sage evil
IDENTIFY thought so. too. for he stopped the pay
mont Of his check.
Mr.. Demarest appeared to-day with an attor-
his client Mrs. R~eese-Terris. was fully informed
OF the transaction. including the fact that the
assignment was taken by his wife. He said he
gave Mrs. Reese ferris o check for the $500,
and she paid him back $50 for his services.
Judge Dickey asked Demarest II he consid-
cred It honorable for an attorney 20 thus treat a
client. using his knowledge OF what could be
against her pecuniary interests. DO you
think an attorney can AFFORD to take such q po-
sition as this :" he asked.
Gen. Ira Heiges's Haverstraw National Bank
Is out of pocket by the cashing OF Sage's 81 500
check. The banks lawyer said that the check
was presented % that Institution aad was hon:
ored. BY the time IT. reached, the Importers
and Traders Bank in New York Mr.. Sage had
got his eyes open about the, deal, and stopped
payment OF the check. Az the case now stands
Gen. Hedges's bank 10 out 81 800, and the Ques-
ton Is ny whom 10 the bank To be reimbursed
Judge Dlckey sent tho case to the Hon. Roswell
c.. Coleman Of this city to take evidence and
Rubmit IL TO the court.
After court adjourned Mrs. Reess-Terris told
Demarest's lawyer that she had been swindled
and lied 20 In order to get her TO execute an as
slgnment OF the mortgage.