Chicago Daily Tribune Newspaper, February 8, 1879, Page 9

THE CHICAGO TRIBUNE: SATURDAY. FEBRUARY B8, 1879- BIXTEEN PAGES 77DGE BLODGETT. Committee Concluded Its Labors Yes= terday. “The The Additional Testimony Re- garding the Post- Office Block. teresting Showing Up o mflm Gu&len City Insur- ance People. How Messrs. Haines, Dore, et al,, Settled Up Its Affairs. Deing AUy Assisted Therein by Messrs. Homer Cook, Smith, and Others. The Rush and Pahlman Charge Withdrawn by the Memorialists. The Judge Explains’ the Walker " Case and the Garden 4 City Matter, Adjonrnment of the Committee-~Their Departure for Washington. THE BIGELOW BLOCK. . A« DRUMMOND. The Dlodgett Investigation was resumed yes- {erday morning, half an hour or so Iate, thetwo members of the Congresstonal Committee hav- fog been engaged o their orivate varlors for soma time i discusslug the ground to be gonc over, and the prospect of winding the thing up, it poestble, during the day, From what followed tbe formal resumption of the proceedings, it could be seen that the Cominittee biad this mat- ter on fts mind. The Chalrman said: The Committes wish to aomounce that they think, with the concluston of thie charges already vreferred, they will have gone over the ground covered by the memorial submitted to the House of Represcotatives, It ot alittie beyonid., Thev have endeavored to do o patiently, and certainly fmpartiolly, pnd destre If posstblo to conclude this investigation todav. It will be concluded if there are no further charges preferred. Ify however, thers shiould be, the Committee will cousider these charges carcfully at the noon hour, and deter- mine whether they feel called jupon to go on with the investiration. The time is short, and the demands of public duty, as well as private bustness, require us to roturn. We hope tbe examivation will bo continucd as rapidly as pos- alble, The examination of witnesses was then pro- eeeded with, 3. Edward A, Drummond was called and ex- anined by Gen, Btiles. Ho rald be remémbered eutering the order of July 20, 1672, which Is fuuud on page 242 of Law-Record, volume 17, amarding 830,000 to Mr, Winston, bat aid not temember how it came to bo cnteredl. Judge Blodgett was present In the court-room when lLe onler was entered, but witncss thought Judge Drummond was not. e did uot recol- Iect whether the uame of the Ifon. Thomas Drummond, Circuit Judge, was uterlined on the record after the origrinal entry was made, It would appear that it was omitted at first; llerwise it would have accupled a line by ltsclf. The evtey was in witness’ own handwritiog, Ile presumed st both Judees wore present; that s vot actually i the conrt-room, but Judge Drummond was In bis own room, astending to badoess, and it was the custom at that t! when Loth Judges were prescat, to lot the r ond reelte thut fact, und also recity the fact | fure whom {lie order was entered. Judge Drum- oiond wes not present In the courteroom when the urder of duly 20 was made, The order of July 20, o aside the order awsrding $30,000 . Winston, appeared, from the record, to bave been entered befors Judge Drummnond alone. ‘Il norning aftee the Urst order was eotered, Judge Drunimond was very indignant that the order bad been made. 4 What made you think ho was fndigoant1” “By hiw lanznage, I caunot remeinber pre- claely'what ho eald,” wCould you give the substance of L1 “1know Lie scolded mo for enterlug up the order. 1 think he bod given ma directions pro- Viouly tot to enter any, or any important or- ders, [ do nat remember which, 0 the cuse with- uat lis knotog it or sceing the orders," *Ju what case " % 1n this matter of the Blgelow Hlock," **Were tieso (ustructious given to you after the order of the 20tly of July had been made lwinv\ghurvu'l!r,. Winston £30,0001" **No, #ir, the ety o 'Y must huve been given to me “* And ul:hmdl"m“ was tho order of whith ho com- “Lue orilerof the 20tk was the ono of which : complainedd, which was afterwards set aside.” -lu‘l\ll the time hy gave you theso {ustructions, " had Leen done, aceording to your recollece Yot fu the matter of the Bieolow Block i o ot remember how far the thing had one," suvthing more Leen dono at thut tune “ Had ;::‘ur:l"!uvu given by the Court to fle the poti- nn-{d,"l'u Dot remember, fndependent of the I¥itiras further sald ho thought he did not S;lllj-f:ldue Blodgett's attontion \glbu fact thut m‘g‘. rununond ned glven bin instructions ol u“ h:x::r “clmk.rs I Lh;x case, ueddhl not y L ¢ noney that was pai Governuent, for the tigclow lllnc"‘:i‘u gzl:i:ll‘: pm.lnur 10 wuat form it was pald over to the 2 I;- that were cutitted to ft. Tle did not o l'tlt by whum the order of July was draft- m.;rm i drafta were eenerally kept umonz the 5 "-’ il o bad looked for this but could not o \Tetsexumination by Mr. Goudy, witness ::3- that b the time the order or.lu'l'r'.’uwn o "C: Jdutgo Hiodgett was presiding as the i '13"" Judge “holding the Circult Court. u‘Kt‘ rummond wes not fn the court-ronta, b"““’i.; fo bis roow. Wituess thougrht that toro e did not eit on the Bench during any Ir dyy o0t 1hat duvs ot that time they frequonte Uy ok together for & single case, or & portion Mot :I).‘uul it would appesr from the record o u]t both sat for ull duy, but in eutering nnk-:"l"" the entry showed 1he uame of the m"“.u Judee hefure whotn it was actually s He dld not remember how long it wus lm":..”n s urder waa entored before he raelved el u; ous from Judye Druminond not to en- Iflud-q:" I that tusc. He pever told Judge M’MLV il Judve Blodgett knew uothing b The arder was awde In the afternoon, gy nedlately afterwards s certlied copy of Tl hade, Hlodud an fmpression tiat Judge mrmb.“'"d had gone bome, He ald not re- o 1hie person who obtained the o e ‘l:». antustion by Gen. Ntiles, witus cuty-one urders made on Ju‘y 23, 1573, ogbe,were cutered Lefore both Judges, e sanie Bl ot befure gy o D ol were Balt-brofLer AMaWer to tea, Stiles, ho Gioimbell wes s sou-la-taw d Mr. Qeorge of Mr. J.%- - W IL BRADLEY, nfl: :: 1{'. Uradiey was called by Geu. Btiles, T u; ;d it he buard the couversation on N of Judee Druwiaond In relation to thls mmmnponn;l Which Mr, E, A. Drummond bad by, Teblled st bo Qidu't tulok be boDid sou b i tergn i g ter iy ar statements made by Judgo felation L e same subject wat- 'f:.l]]lfl;:nmnn;l spoke to mo about it af- thy g ¢n~1 thiuk the duy bo entered el U Tevenslug the order of Judge Biods - Do yuyy, Py ecollect what b satd "t Well, by seanark. Was with refereuce 10 Ed- ward Drummoond, He salil Edward shouldn't have entered that order without submitting to hhin pereonally, as he badhad alniost cverything to o with referetice to the condemnation of the Tielow Block ainl the payment of the Hens aind claims upon the fund in the matder," ** What ubjections did he ake to the order, it unfl" “ [ie didn't explain to me the objections, Ho salil but very little to me about it Continuintr, witness sald the £1,2; matter was paid through the Collector of the Port in money upon certified copies of these orders of the Circult Court, Ile presumed & certifled eopy of the $ULI00 order was_given to Winston, but was very rure Winston didn’t gret the money on that onder, because It was ro- versed, and the certilicates returned, canceled, amd held for naught. On cross-examination by Mr, Gondy, witneas sald he didn’t remember Judire Dinmmond’s eaying that e rights of rome infants were fn- volved in this matler, nor did he think Judee Drummond sald that the matter should o to the Probate Courtrather than the United States Court. Witness recollected very well that he trled Lo explaln Mr, Edward Drimmond’s entry of the order bv telling Judee Drunmond he un- deratood thie entry was made upon a stipnilation by all the partles fn the case, ‘There was o apecial fund, or rather the amount of §1,230,000 was placed at tho disposal of Collcetor $letiean 10 be distributed to the varlous parties under orders of the Court. ! HUGII A, WINTE. Mr. Hugh A, White was called und examined by Mr. Knickerbocker, 1l stated that he knew Geoarge A, Bigelow in his lifetime, and was Iis solicitor from the sammer of 1871 till his death in 1872. He knew of tlic contract made hetween Mr. Bigelow and F. H, Winston some time in Jnnuary or February, 1672, by walch he was to sell to the Qovernment of the United States Hlock 121, Schiovl-8cetion Addition, for & 1ost- Ofticeand Custom-House, There were partles owning property on Dearhorn street who were very anxious to have the Post-Office retained near the old site; aud he had many different persons coming to hiin, as representing the Big- clow estate, Twhich, together with the De Ilaven estate, owned Black - 121, to sco if some arrangement conld not be made whercby they could procure this site, which was considered at that 1{me’ probably the most clizible location fn the eity, The partlcs In interest selected Mr. Winston na the man to maka the contract and carry out the srrangement. The question was discussed In the Arst {nstance at his oftice, Mr. I1. H. Honore insisting that Mr. Winston waa the man to he put in - that place, owing to his Influcnce with B. C. Cook, who was then a Congressman from an adjolning dlstrict, sl with the Judges on the Benel, und owing to some relatlons exist- ng between him aud Mr. Glover, then Dlstrict- Attorney of this district. Mr. Wivston was not preaent ot this discussion, but witoess met him after that. Do you Lknow what kind of rervices Mr. Winston rendered under that contract 1 [ do not fieummll\'.” © Do you know in any other way, from rep. resentations made Ly him or anybody else, whether or not it was what Is commonly known as lobby services?” 1 had wy owwn impresstons.'? # What did you derive them from1* | can hardly say, except general reputs- jon."" g Mr. Goudy—Therc 18 no_such Lhing as lobby services, ‘The Becretary of the Treasury way suthorlzed by law to choose the ground, 1t was not a matter of leetalation, Mr, Knickerbocker—I suppose I need not eall your attentiun to the fact that the Buprome Court of thy United Btates have held, two or threo times, that the procuring of a contract with any of the Departments is in the nature of Tobby sérvices, for which the faw will not ultow any. ‘compensation. VDl you get any knowledge or Information ns o what had been done by Mr. Winston under this contract after it was inade " I know he went to \Washington, but what he did there I only know from what lie told me upon his return.” Ho had been beforo the De- partments, sl presented the facts and state- ments of prominent citizena of Chlcngo as to the deslrabliity of Lhta location, nnd thought that ho had succeeded i procuring them to select this locatior. 1 donot know that I should use the word ‘Departmient,’ but he had been to Washington, und arranged the matter with the proner partics, whoever they were, Ile subse- quently went to the Legislature at Sprinetleld, and obtalned the vacution of an alley,—whot Is known as Quincy street,—beenusesthe Govern- ment objected to taking thie block until that strent was closed, 20 as to tnclude the property " ther, tog Was Mr. Winston at that time a membor of tho Legfslature” 41 think not," % And his visit there was for the pnrpose, and resulted n his procuring the passneo of an act through the 1inols Leglaluture for the purpose gou have stated ' w1 understood it so.”” %o you know anything abont an order hav- {ng been_entercd in the” Civenlt Court of the United States for this district on the 20th day of July, 1872, allowing 830,000 to Mr, Winston out of the fund set aslde by the United States for the payment for this property ' 41 know there was on urder entered,” “DId you have any confercoces with Mr. Winston about that order{" H8eyeral,? “When " # Prior to the ontry of it." ‘fl\l‘,',num did you iave these confereuces with bim - At my office in Chicago,” Wy your request ' “No, sir"” 4 Mr, Winaton sought an interview with you?"” “lle dle." 4 \What was the topic of discussion between u and Mr. Winston at these futerviews " *Uolni back une nng. after thisurrangement had been entered futo between Capt, Bigelow and Capt. Do Mayen on the 28th of March, It seems it beeamu o question in_ Mr, Winston's mind how hc should recelvy the $10,000 that was «lue or owing from Georze A. Bigvlow to bim, He came in to me and suid thut ho thought he waa a8 mucl entitled to a llen for hie services ns the mechaniea and muterfal men who had proved ur largo muns agalust the property; nnd he thought he ouglit to be secured In sonie way, Capt. De Haven wos o man that he was not very well acquainted with; Mudamoe Bigelow wus & lady; and be thouglh 't he ought to be pro- vided for'in somo way, su thut thero should be no trouble about his getting his woney. § told him o substance that 1 did not sce any way thaut he vould be pravided for, but that no doubt Do would bu pald; that the part that was come fug from Georgs- A, Bigeluw’s castate there might be delay about, but that I considered the cstate undoubitedty solvent, aud it would ho paid In tiwe, Hewanted to know 1 sowmo ar- rangemont could pot be made by which be could get his money without it golug through thelr ~bands at all I told bhim did mot know of any way; but, If he could think of uny way, [ should conseut tu It. Ilo hud curned his moaoy, as ] ugderstood. Ithink he went off sayioe he would look the matter uu. Very soon after that | saw him agsin, snd [ understooa bim to say at thut time that he Liad secn somcbody, and the matter could be arranged so thut he conld have it allowed 1o the Cuited States Court mlong with the other clalms thut bhad Leen al- lowed uralust the estate, I told him it secmed to me a doubtful question; still, f the Coure was willing to grant bim such an order, it was immaterial totbe estate and the parties in in- tereat; they {otended to pay blm, aud it was & matter of very ewmall finportance to them whether they paid it througlh an order of Court, or whether they pakl it In wuy other way. He was stilf very anxiousto have someihing douo by which he could get it directly from the Court. [ to)d blin 1 would sce the parties, and, i there wus no objuction such an order, 1 should raise no guestion. Puarsu- ant to_ that saw Mme, Bigelow and Cupt. Delayven. Mme. Biyelow “Instructed mg that vut of her estats she wanted ull detits thiat were due and owing by George A. Bigclow to be pald {u full, whether Thero were asscts (o bis estuto or not. 8le Lad so estate timt [ valued at $250,000 or $300,000 at that tune. | told Mr, Wineton that thers was no objection to Lts getting sny order that the Court was withug to grant. He had already dled a petition, waich 1 do pot_ remember ever to bave seens und upoen that be bruught mo 8 paver saying thatthe Court had cousented that sn order nlnlgm' be made provided there was no objec- tlon.!" % DId be sav to you he had seen the Court 1" 4 | cannot ssy he sald he had secorthe Court, but that was the fimpression wado on my mind, —that bo or sumebody bad secu the Court, st the Court was willing to make suéh an order.”? % Who made that {inpression ou your nsnai’ © P, H. Winston. He brought ine zn order that e said the Court was wllliue to ente d that order § objected to, nud told bim that was vot my uuderstanding, and that [ would draw an order Io secordsncs with what 1 understood to be the couseut of the partles. which Fdid."” * To that the stipulstion which you sigued for blm i Al stipulstion. This {s the stipu- “ [ should tatlon I drew. ' Did you sigo it on the representation that BMr. Wiaston bad seen the Court,uud that the Court would graut the orderi” b That was my undergtadiog,” Witneas furticr suld Lis doudts as to the Court granting an_order aroee from the facf that, ae a Jawyer, he could not rce how Mr. Winston could have a lien for eervices, IHa signed the rtipmlation with the understandine it §t would be perfeetly agreealde to th United Stutes Court to yraut the order, Tl matiey was palil by three checka for £10,00 each, dnted July 2, 1872, Auz. 5, and Bept. 15, 1802, The second was In doised by F. I, Winstao, per 0. R. Glover." O. R. Glover was Mr, Winston’s eashier, nnd a son of J. O, Glover, The last cheek was pald after the Lounty Court had ordered the caim against the eatate. dome thine after this order was entered, and nefore he pald anvthing on aceount of it &t all, he learned that it was set aside. Judge Drnmmond told bim so: he could not reeotlect hils exact waords, hut the impression they made on hia mind was that Judge Drun- mond dld not pronose 10 have the records of his Court show an allowance of any sieh nature to ANF person for such services in such a ease. The cnlate also pafd $1.5)) for: the expenses of the condenuation proceedings, healidea the allow. anea to Mr. Winston, ‘The last check for $10,- O to Mr. Winston was delivered to Anthony C. Mesine. ¥ DU sou get anything from Mr. Hesing when you delivercd (t'1o him 1" ‘I got sn indemnifying bond,” “This indempifsing bond {s signed by Mr. Piceee, Hesing, and Joel 1. Harvey. Do you know who Jacl 1, Harvey 181" ' He is Collector of [nternal Rovenue." * He was one of 1he Commissioners appotnted fn the condemnation proceedings, was he nutt*t “ Yes, air,” 10 you know how much he got I' him 81.000 as Commiraioner.” “What was said to you when this £10,000 was pot,—this last ove, where the bond was taken " ‘There was very lttle snid sbout It, except prior to that time Mr. Heslng had bcen?n my office two or three tines to see when be could get this mmmf.unylm{ he had some inter- estinfts and I finally gase the check, Idid not give it to Mr. Hestnes 1 gave It to Mr, Winston. e wanted me to give the check di- rectly to hiny but I told it I hiad nothing to do with lim in the matter. Mr, Wiuston was the party I dealt with. e satd art of the money was coming to iim, und ke was " anxious J shoula glve the cheek to bim direetly. 1 think I spoke tn Mr. Winston nbout it, on’ the street, some- time after. tTle sald ¢ That was all right ; Hesing had got a little to keep bim sl * What was sald to sou by Mr, Hunore, at the time this contract was first made, about the de- sirability of hasing Mr. Winston rake hold and manage this thing, as he belonged to the combi- natfon, or ring " 1 think I havo stated, as nepr as I rocotlect, all thut was snfd in that eegard. ' You caunot sav whether that was so or not 1" 1 nhave uo recollection ol his saying a word about n rinw or combinatfon,” Mr, Culbersou—\Why did you exact that In- demnity ! v Becauso [ didn’t know whether the estato wounld pay 100 ceuts on the dollar, and I pro- vosed "lo sccure' mysell ngaiust that coutin- geney. ¥ g Mr. Campbel!l conductea the cross-cxamiva- an. ‘Do you remember,” ho asked, * that you and Mr. Winston came fnto the ofllce where [ tated bow this matter stood, and that Mr. on clafmed that this contract was Jolnt amd reveral, you gugpeeting that George Blge- low was dead mul couldn't pay until there were proceedings In the Probate Court, or some other order of court; that Mr. Winaton {nslsted that be bad nothing to do with that matter; that his control was jolot and several, nnd the partics were of full nge, and could pay the money ami uut‘l I!'u\.-h proceedings therealter as they de- sire: **Not In that form porin that substance, I remember the fact of lmvln;i,lcuuvursnfluu. probably in your presence, but I never knew that he elalmed that it wus for the reason thut it wan a Joint und eeveral contract that he had this ¢iatis {n the United Slates Court,” -‘Dun'l.fyou remember he jusisted be was en- titled to afi the maney then, nid that thero was o lavpe amount coming o Capt. Dellaven and the other partles, uind they could pny It and fouk to the Probute Court therealter for such portion as George Bizelow's estate was resvonst- Ul for{ Do you remember thero was sucha conversation {1 . I remember he was very anzlous to get his money. I remember that fuct very distinet]y,” “Don't yuu remernber that was the subject of conversation "’ 4 don't remember that be lald ony stress on the ground that these parties then surviving should pay ft. I understood he was tryfng to deviee sarmt: way in which the l’ln!cl could pay 1t undl be proteeted In dotng it “Don't you remember you were equally soticitons that each party slivuld pay only what they themsolves had to pavi? Y7 certainly nover thouiht of anything else,” Mr. White furthier testited thnt thiere was no objection to paying the money over so long us it voutd bo dono leeally widl properly. He didn't remember sltting down and talkime with Mr. Campbell as to what method could be devised. “Don't’ you remember that I called your at- tentlon to the fact thet Judge Druinmond hiad {riaisted thut no money whaterer should be paid to your clieuts unthl éverv Hon on that property waa mude known to the Court nnd discharged, ‘That was true In polnt of fuce, was it not s “No, ¢ir, [ think not. The Commisslon had already pussed ou the commission to be paid, ‘uml he waa proposing to pay nothing exeept what had veen passed on." “Didn't he propose to nnr on every lien on the property before he should determine the residuuin to the partiest'? * Iu proposed to liave aufllefent reserved to pay the other parties thut lindn't been allowed auything by that Commission.” i Didn't he {osist thut every oue who appeared by the recorda to have a llen of any character should be made a party to this procecdlug " +01 course.” Witncss hud no_ recollection of having read the petition of Winstou, uor of any notles be- ing n-miu on bl that the petition would be filed. ‘Lhe stivulation was In his (witness’) hundwrftiog, There were twvo stipulations pre- sented ‘to hiin by Winiton, ‘The first was un. sutisfactory, nud witness had it ch-n;ied in cordance ' with Madame Bigelow’s Tdon. The stipulution which he then dratted and signed, and which was now before him, was satlslactory to Lfin, The petition was alsu shown witness, und lie read It over, While the witness was thus engsged, Col. Cooper _aunotnced that when the Comnmnitteo roturned to Washiugton he deared to huve 1a- troduced befors ft the oflivlal correspondence on tile fu the ‘Freasury Departmnent of Judge Blodgett in relation to the whisky matters; lhu vorrespundencs ou file tiere n relation to the Bigelow Block, whatever it might boj the cor- reapondence i flie with the Clerk of the Su. preme Court with reference to the sppuintment of Ih-‘;lm:u 1o the Second and ‘Third Congres- slonal Districts; ulso Uso gorrespondence au file in the Attorucy-General’s oflice betweon Juldeo Modgett, the Attorney-Ueneral, und the Dis- trict-Attorney. Mr. Gowdy made no objection, but stated that hie would at once fulrodyce in evidence the leg- ter from Chief~Justics Chaso to Judye Blodgett, which has been referred Lo severan Lines dunug the {uvestleution of the thbbard Indictiment chargo, und 1o which the Chiet Justice stated, in brief, that Judge Bloduete had exhausted his appoloting powers, and fu which, also, the Chilef Justice withdrew bis numfoation of M, Dun- ning. ‘Ihe witness had read the petitlon by this time, and sald thut e facts as stuted wero substau- ttally correct, bus there was evidontly a mtstake 83 Lo the wmount of the set-olf 1O Louiss U, Uigelow, which was $100,000 too much, It wus veryevident, e satd, that Lo bad never scen the petition belure. Alr, Cutnpbell nsied if that wasn't the correct amount at the thne, und {f 18 wasn't subse- atly diminished ] he witness reptied that it was not,—lat the amount wus $106,000 instcad of $206,000, a6 it appearced in the {uenllun- Ar, Campbell thoughs that might be a mero clerical error. Mr. Koickerbocker fntroduced n evi- denca the fndemnity bood reterred to, and au- noanced bis futention to offer in evidence Giov- er's petition (o the same. THE GARDEN OITY. JUDGE BLODGETT'S ANRWER, Gen, Btlics suid the Garden City charge could be taken up, 3 Alr. Gondy asked If counsel were ready to go oo with the Rush and Pslilwan malter. : Gen. Btiles reptied “No™; two jurors had been sent for, and if they reachud the clity the wmeworialists would be reudy; It uot, they would not. Mr. Kuott asxed Mr. Goudy 1if he bad no wit- nesses In the Bleclow matter, Mr. Goudy replicd, **Not st present,” but when the memoriallsts got through they wight. Ihe Gurden Chy cbarge, published o Tus TRIBUSE yesterday, was theu taken up, Br. Cuipbell read the following anewer: This reapondent, Henry W. Bludgetr, denl whilo Us bus been District Judsu bo has engsued in au unlawful schemeto defraud tho creditors of & bankrubtustaty pending Leiore Bl s snid District Conrt, sud by the uae of the wacaery of gaid Dis trice Court, and by utcaus of bie persunal advice aud inducnce, aded the consuimialion ol & schewe by whicn the crealiors were defrauded out of suy #um of money woatever. Answer 10 iby drel rpecification: “This respondcat adunts that prior (o the 14tk day of August, 1372, thefs Was 8 COFPUILIUD KBUWD us Ity Insurance Companv in existence in the City of Chirago. and that it had et with £reat Jowes from the fire of the K1k, and fth of Oc- tunar, 1715 aod that a potition in_ bankrnptey was fited in Diatriet Caurt on the 14th day of August, 1872, by flenry Newton and Taw- I rence K, Beardaley, partners onder the siyle of 11, 1 Newlon & Co. i and that subrequenily sall Com: pauy was adjudicated a bankrupt, bat this rernond - ent hae o knowledge an to the smonnt of asets orof iabtiltics of carporation, and he further mayn that he has nbever ‘heard of any schene or cambtuation whatever havinz for fla ohject the avoidunor of the jegal labilitles of the stockhald- ctn and oflicera of satd Company, or that aaid peti- ton In bankruntey was filed in fartherance of any aniawful or frandulent seneme whatever, Anawer to the second apecification: Reapondent further aays that he has never had any information that the adjarication under #aid fyitsion wan la prevent b an finuronee i of sald ateict Canre the Htigation threatened againat aaf Comoany fonnded upon the claima of indebiedness acainat i1, or (o coerce nnd rompet the ereditors of Company to ncll their cialmp, or thas it had any unlawinl or frandulent destzn whatever, Answer 1o the thisd apeciiicasion s This respondent farther admita that while eatd pjoceedings In bankraptcy wern pending before him ae District Judge & petition was filed {n aald krapt catate by a creditor thereof, amking said Court to enter arule npon sald bankrupt Con .n( to compel it to file u achedale of the asrets of mala Company; but he denles that he, by the influence of his judicinl oMce, Improperly adyieed and urged the petitioner's atiorney in said petiton to desist from asking him s auch District Judge to enter such rule, and advised patitioning creditor's attornes that the ofiicers and stockhoid- era of said Comnnany had siready offercd the nald petioning ereditor for his elanin all that they con.d reasonabiy pay, and that sald creditor ought to rell hin claim, und ha denles that after the eniry of #id rule, and bofure the expieation of the time fxed therein, s@d creditor, in view of the circumatange r under the Influence or at the Instance of th pondent, sold hiz clalm for n nnch e 1 1te value, And be further de- liat be, an such Disteict Jadze, neglecicd and refuned to téquiee acompliance with sald arder en- tered by him {d bankrupt estate, hut he sare that he wan willing anid ready, npon proper applica- tion. and upon anficicot cause rnown, 1o require said Company ta comply with the 1ule enfered againat it, &nd to proveed with said proceeding when moved by any person Injercated therein: and thin reapondent furt ‘A that when he entered .the rule on the 16th day of Joly, 1875, requiring the rald haakrupt Company to fle sehiduies by 25th day of Julv, 18756, he alan ordered that an al taciment fasne for contempt in defanlt of & enm- plianco with said rule, and that the priitioning creditor waa entitied under the order which hethen entured 10 take out his attachment for contempt in case af » neglect to comply with the rale within the thwe Axed by the order, Anawer ta the fonrth specification: Thin re- apontent denfes that any nnliwful combination wan carrled out through the medinm of the INstrict Court, #o that no schedulc of inventory wan filed of antd Company, or that satd cuuse was dismissed out of sald court by means of the lmpraper aid of 1hir respondent, and he svers that he has bad no fuformation whatever In regard to ony of tho ma tera nljegen In sald charze, or of the apecificatione herein, until the presentation thereof to him on this Gth day of Febroary, 1 THE RECORD, Mr. Kemp was recalled, und, gutded by Col. Cooper, du out the followlug from the records of the District Court: Aug. 15, 18i2; entered rule to show cause why Garden City should not be adjudged baok- rupt. 4 Oct. 16, 1872; leave to Homer Cook to be- come parly to petition, und to prosecuts fu case of faflure of petitioner to do sv, Bame day. Adjudieation entrance, Witness sald the petitioning creditors were H. Newton & Co.; Lawrenco 8. Beadsley was one, M. P 8mith was thelr attorney. Sept. 10,1873, Rule on bankrupt and officers to make and deliver schedule and inventory of cstate, or show cause why {hey should not be attached for contempt In cveut of fallure to comply. Oct. 7, 1873, Filed motlon, and entered order vacoting order of Bept. 10, 1873, March §, 1874, Filod petition, and rule re- fused. Petitioner, Willlatn . Slsson, sct out thut hie was a creditor, and, os Assfenec of Jacol Rolle, bad made proof to smwunt of 600 be- - fore [libbard; thut, Aug. 14, petition in bank- ruptey was flled nratnst Garden City Insurance Company, and such _proceedings had upon the snma that, Oct. 16, 1872, the Combany was ad. Judicated bankrnpt; that upon suchadjudication an order was made for warraut of selzure, nnd to file schedule within twenty days; that no warrant was ever lssued, and 1o schedule filed ; thst no meeting of the creditors had been called or token place, or any Assignee appoiuted, or any oth teps takewas preseribed by law to catise a scttlement, nithough) nearly & year had olapsed slncé the adjnditation; therefore petl- tlotier prayed thut. the Court biake the necessa- ry order for the Company to file a schedule nid liave su assiznmien’, and “distribution of the as- seta an by law requlired. ‘This petitionwas fndoraed, in Judge Blodgett's handwniting: “Rule refused, it not appearing that vrouf of luss was cver furnished, or that loss hud ever been ndjusted, " April 18, 1874, Filed two petitlons and en- tered additional rule returnable in five days. ‘I'hie prayees in (hese were for s order to compel the Company to file a schedule, ete, May 12, 1875, Filed petition und entered ad. ditlunal rule on Compuny, ‘Chis also coutuined a simliar prayer. ‘The {ndorsement was, “Entered rule that %(vmg:?'uv flle schedule in tweuty days. H. dJuly 16, 1875. Enterad additional rule that bankrupt ille schedule by 25th, or attachment {ssue tor contempt. Tiiis waa based oo the petition of the executors of C. M, Recd, who sct out the sume focts ss wero contained fu BSlsson’s regardiog the ad- Judicatlon, vte., and further thut the cause lLiad not been referred to the Register hy Bank- runtey, who liad been obllged to Inform credit- ord wilo appeared before hiin to flle proofs of debt that fie hiad no jurisdiction; that & uim- ber of peoplo had obtalvel judgment agaiuat the bankrupt since the lling of the petition, and, on aceount of such Judginent, bad obtalned un- fair ndvantages In sottlement; that vetltioner could get no information with ::f-nl 1o the us- seta and lablilitiess that he had been offered 8 per cent for his claln one day, and ou another 10 vur cent by & _gentleman who purported to represent the Company; therefore be prayed for o rule to shiow causa why the bankrupt should not file a schedule, ete. Col. Cooper asked what tie next order was, o witness resd that of July 16, 1875, stating that rule had been entered for bankrupt to (ile schedule by the 2ith inst., or attachment would Irsue for contempt. ‘Phe pext order was that of Aug. 28, 1875 ¥ Filed notive of stipulution to dismise, und cu- tered rule thutull persons loterested shiow cause Bept. 11 why procecdings should not ba dis- wissod,” ‘The minute ou the back of the stipu- fution was: ¢ Enter rule that all persons fnter- ested 10 sald bankrupt estate sbuw cause ou the wmornjug of the 11th day of September next wh such procecdings should wnot be dismissed. Notice aix duys fn Jouraa', H, W, B.? ‘The witness aiso read the application of Homer Couk, stutlng thut previous orider bad beeu published e required, und asking the Court to make & damissal of the pruuuefilum absolute, ch nobody had sppeared Hepta 11 ow cause, ‘Tha minute ou the back of the upolication was: *Enter order ting aslde ad)udicatiou snd disimissing ca In respouse to (urther questious, witness said the Combant was put into bankruntey und the petition filed suatust it Aug, 14, 1872; that it was adjudivated bsukrupt Oct, 16, 1873 and that hankruptey provecdings were dismissed Oct. 2, i, During_the interval from October, 1578, to October, 1870, the court rerords abowed 1t there were uo schedules on file. They did not shiow, eitlier, thut thero bad been any croditors’ meeting for the election of an Assignes. 'The secords did show) however, that there were nu- mer.us applications made 10 have schedules flled, and Wint Judge Blodgett in most cases ai- revted tho eutry of milcs to show cause, wid {n Aome cares an ’btachment (1§t wasn't done, and then nothing furiher was done. On cross-cxmnination, witness said the order of vavattun of Oct, 7, 1874 was eutered on & petition of Lawrence Beardaley, which ho bro- ceeded 10 read, The petition” set out, amongy wther things, that only Cook aud Newton had proved up claling; that no creditor with @ legal aud solid clalin sgainst tho baukrupt desired the continuancs of these bankruptey proceed- ings, vrovided & compromise coulu by wade; thut, besides the cestificates fssued for losses whichh bad beeu duly proved up after the Con- {:ny bad reinsured und after tie ire, sults hud cen commenced against the Company for sl- leged lusses; that the Company was ready to di- vide up its assets among alt tgel craditure who were willlug, wuhouzexnununu. that such distri- bution and diviston should e mady without sny further prosecution of thematter in bankruptey; that, Io accordance with s cluise i the pollcy, all suits sgatost it wust be begun withio twelve wooths Irow thie date of loss; thut there ro- walned only $12,000 of claims not then settled or compronifsed; thut the clain of Ferdinand Jaeger had uot been proved up; it the Com- v was ready to scttlo up If oot forced iute Kruptey; and that, in short, thers was no Just reason why the Comvany should nut bo competed to 011 schedules or Juventorles. Heardsley therelore asked that the previous or- der bo sct aside. i SN In reaponss to further questions, witaess said thut Ferd Jaceer bad sceepted notic of the pe- titlon wnd qé;huuun tu vacaty the order ru- qutring the Company to fily schedules. wivute on the buck” ol this mpulication, Ale Oct. 7, 13 10., was:_ ** Enter ordor vacating ri entered Oct. 161879, requiriog Company to tile schigdules. H, W, B2 AMr. Kewp ulso resd the stivulation fled Auz. l B, under which the proceedings wers dis- fondy—In this cranection 1 wish to call the attentton of the Committee ton declsion made by Judge Blodgett in 1853, prior to any of there mations for rules in the Fircnien's Insur- ance Company cace, In which ft was dechicd that no claim should be allowed In bankruptey that had not been in kome form sned upan within twelve months, or had not heen proved In bank- ruptey within twelve months, or sdjusted be- fore bankriptey, Thatdecision was confirmed by Judge Drummord, Judge Blodgett—It is but due to myselt and Judes Drummond both, in this connection. that 1 should atate that my deciaion In the Fircmen's Insurance Company” was afirmed by Judge Dranmond. The decision was not challenged, hut was generally acquicsced in 1o this dintrict untll within about!wo vears, when, ingoma hank- ruptinsarance company matter,the guestlon was tuken on review hefore Judge Drummond, and he was lucllned [ think I may say without Im- nrnprlel{. to differ with me upon the original proposition to some extenl, but that, innsmuch as It had been the ruio of the District Court so long acqulesced In, nbd 50 many bankrupt es- tates having becn adjusted and settled upon that hasis, it was not desfrable to diaturb it, and tlicrefore, I think, never wrote any opinion, but simoly {n that case aflirmed mé decislon, Mr. Goudy handed to the Committee the 84 Bissell, containing a report of Judize Blodgett's deciston in re the Firemen's [nsurance Oom- vany in February, 1873, ut page C. 8. CRRANE, Mr. Charles 8, Crane was then recalled by Mr. ‘rrumbull, Hesaid he did pot authorize ir. Hougkins to hid more than $40,000 for the dredgiog property belonglog to the bankrupt estate of Fox & Howard, e was not required, and did not yoy 40,500, He did not peraonally offer to inake his hid as zood as that of Conro & Carkin, who offcred $40,500, but something of that kind might hare been done by his coun- el in court. Judge Druminond, in bis finsl order and decree in e Circult Courd, set forth that the petitioner offered to make good to the ertate the difference between i bid and that of Canro & Carkin, it there was any, and referred thie matter to the Reglter, the petitioner wiving his bond to pay the difference. Mr. Cooper aulhs thut offer in court by witness' Instruc- on. In snswer to Mr., Cultierson, witness said the matter was referred to e Register under that order of Judze Drumsond, but the Register never calicd upon him to psy suything. Un cross-exatntnation by . Cooner, witness eaid {t was cluimed before Judge Drummond that Conro & Carkina got more proverty than was embraced fu his bla, nnd that reaity his bid was better for the estate than Conro & Curking' hid of #40,500. Me never had a woid with either Mr. "E. W, Hlatchford or Mr. Gaytes about this investivation, und never callea Junge Blodgett a scoundrel to them, nor had he pald any fmoney, nor had ythivg to do with Lhis Investication. e never iwas asked to pay any mouney; he had keot away frow It, und never came down town until tiic previous day. 1le il nover heard of o dollar belng asked by the memorialists fu thin case of snybody. M1, Trumbull—Has not your firm, Crane Brothers & Co., beea asked ¥ Col. Cooyer—No, sirs hot a man {p the city of Chlcago has been asked to pay ane dollar fn this matter, Iunderstaud now that some peo- ple think persans cannot act from miotives of the public goud, Mr. Trumbull—=Well, I heard that Crane Brothers & Co, pald, Col, Couper—Then you beard a falschood. L. oJ. J. NISSEN, Mr. L, J. J, Nissen was then catled and exam- ned Ly Col. Coojer. He eald he had prace ticed law eince 1856, sud was formerly a vurte ner of W. H. Barnum, and represented several clafms on the Uarden City Iosurauce Company of persous who had sustalned losses under poli- cfes fn thut, Company by the great fire of 1871, He commenced suit, but never prosecuted any of these claima to judgment. They were com- promised. e proved three or four claims in bankruptey in 1872 When he examined the record of proceedings. and found that nothing had been done In the Garden City Fire-Insurance Company matter, he presented & petition to the Judge of the District Court to force the oflicers of that Company to fiie & schedule of their assets. The bankrupiey procecdings had then been pending some tine. Before he went to see Judge Ulodgett sbout {t, offers had been made to his clients to buy thele clalms, Ile did not remember the offer cxactly; he thought it was 30 per cent. When he filed his_petition to compel the Company to He fte schedule and in- ventory, Judge Blodzett said he thougnt it was natural, probably that nothing further had been done, owing to the efforts of the Company in tnaklve scttlements with thelr creditors, He seemed to be aware of the fact thut they had been makiog ofers, ns all these companies did, 4 Did he give you any adviced” *1 cannot exactly kay bie gave mo any ad- lee.?” ** DId he make any sugcestion to you " “ Yes, alr: he sugpested sthut probably It was best for the creditors to efect a scttlement; it would cost n_great deal of expenso, this bank- ruptey proceeding, wnd the creditors ouzhit to acrept u reasouable offer in order to avold this expense; s thut was probubly the reasun wothing furiher had been done in the matter, 1l conciuded they stood in their own way it they dia not accept 8 reasonable proposition, awfthought thut the ofiicers of the Company were disposed to ?ay us mnuch 88 thelr asacts would possibly Justify. und thut ereditors ought nat unreasonably to force thin bankruptey vro- ceeding if they bad a conyiction 1hut the Com- pany were ol what they possibly cowd, and ne bad no doubt the oflicers of the Company were honestly dlaposed.” «Did he “say how much they were offering? Was that talked overi” * No, afr."! sid ho not say substantialiy thia: These oftlcers of the Company are offeriug as much or more than they can slfurd to pay for thesc clalms?” * No, air,” 4 But e did say they were lsposed to pay all they could afford to iy " “Wall, ho raid he bl no reason to supposa that they were pot dung the best they could, wnd that the eredltors ought not unressouably to mak expenses,’ “10id be object to the entering of the order” 4 No, sir; he dild not,™ » How did you come to get {nto conversation with Wim " w\Well, it came very naturally, T expressed ny surprise thut nothing had Leen done, uml 1 think [ expiained to the Judge bow I eamo to exawine 1tn thist, 1 think 1 explained to b that they hud been offering s settlement which Tadviscd my clients not to aceept; that 1 had brought sulia fv the Circult Court,and that they had put fn 8 defense there, and that they bad comenced mysterious proceedings In chancery o the Cireut Court which I conld not tind eut that there had been o bill o chancery fled by Homer Cook, and that Mr, 8mith, who oflices with Mr. Cook, bud taken the bill olf the tles, und when I weut to look st it 1 coutd not tiud " ¢ What Hlnllb was that—Ilarlow P, Bmithj”? “Yed, alr. 3ir. Campbell—What Circult Court was it 1 Mr. Nissen—The Cirenlt Conrt of Cook Couns ty, before Judics Far When thut rule ox- vired 1 went over there, und Judge Farwell fu- furined ine that they bLad been there the duy previous uud dismisscd their blll, and ob- tained leave to take the bill from the fles. Col. Cooper—That Is what you tuld Judge . Hilodgettt Mr. Nissen—That s what I told Judge Rlod- eeit, and thut was the fact. 1 knew theie were petitlons i bunkruptey pending. t had nled tuy claim there, wifll wanted to find out whut they were dolng there, 1 thought there wus something ysterions—somo underhund gae. S What did " Judee Blodgett say to all thatf? “1 o not remember it he sald suything ' “Hle gave {uu the onler which has been ruad In evideuce here, and entered a rule to show cause why they could not tilo their schedulef” * Yes, sir,)" “[lu did uot euter any rule for them to fils & schedule peremptorily did bel” 1l made that order, thut s w1l “After thut order was entered, did you ast- tle your clabin " W1 settlea the clalm within & few days,—I think within swo or three duys prior to the time the rule was retdruable,” **How wuch did vou settlefor]l More or less than the sum that was offured to you!" K ] settled it for moe. * How wuch wore (" 'wouty per cent mure.” [hen you bad ecttled ull your clafims when you slened the Nua) stivulation to dismiss the proceedings (o bankeuptey ¢ Yes, siry we unsigned our claims, [ think, lo blank to sumebody. Ldon’t know to uhum.luu toa mau by tue nawe of Miller,—soie iusuraucy w And your clslns were to be considerea as stil) before the Court? “8ull before the Court, and whalover was necessary to be doue be would either do it, or Liave somebody else do it." * Whtle your clicets had ln fact euded thelr conuection with the watter, yot wd a part of thelr bargalu vou were Lo go 08 uud represent thew du anythiug that was usefully wanted ' 4 Yes, air? Ou crusa-examluation by Mr. Goudy, witusss ted that he rememberad an applieation b e to vacate the order Jndee Blodgett lifn. He settied bia c.aim before the vacatfon, After the nettlement, lie paid no further stten- tlon to Ihe mat He ‘reniembered 1t she apvlieation was made mnd notico served upon him. He did not. appear. “Did Judze Hlodgett tell you st that thme that he or an estatc he represented bad a policy to rettle with the Company 1" *That ls morsthan lcan tell. member," “*1le gave you the order for which you spplled without ohjection !’ 0 yes Col."Cooper—Did vou ask for a rule to show cause or a peremplory order to file a schedule? *The petition abows," Mr. Culterson—\Vhat was the fact about that? The petition shows that you asked for a rule AL, “I think that was al! 1 consldered myscll en- titled to. In fact, I was Indiffercnt whether I gotoneor theother. [ stmply waoted to stir them up." Cal, Cooper—To make them offer you more for your clalm? *Yes, sir.? Mr. Goudy—The Judge helped you lo accom- le"‘l‘ ;mt“i p\lrWs‘l‘a dluln't Iml" % hat ix more than 1 cao tell,' 4 " Didn’t he " Uaughter) *¢ He gave me the order. I thought I was en- titled to the order by right, and 1 told the Judge 50, too," * le thought so, too, dida’t hel He agreed with you," + I'nunpose he aja." Mr. Culbierson—I don's understand yun tosay that Judue Blodeett gave you that urider with a vle|w to alil you in making s settlemeut ! * Tdldn't think ansthing of the sort. I had na reason to auppose anyihing of the sort. 1 simply atate wiat the facts were." ‘'Te Le MILLER. T. L. Miller was called and examined by Cal. Covoer, e 13 & farmer and stock rafser, and lives at Beecher, 11l In 1832, '3, '34, amil %55 e was Luylwe clalms agalnst insolvent Insurauce com- pantes. Before the fire of 1571 he wus o the fnsurance business, having lved in Chicao from 1850 to 1871, He kuew John U. Haines; had kuown Wm for twenty years, He knew Lawrence Beardsicy s bad known him ten yeurs, probably. Beardasley is Haincs' sou-in-law. He knew Jubn C. Dore; bsd known him about Lwenty years, At any time after the fire of 1871 did vou know or learn the situstion of the Garden City Insuranve Company?" Mr. (Goudy—I take it from the f!lll'lllfllll ask- ed thut the ‘purpose {8 to establish a purtion of 1he allezation in the specification that there was a combination among the stovkliolders and offl- cers of the Company to buy up ita policies at Jeas tl y were worth, We have not denled in er liat there was such combinatlon, but simply satd that Judge Blodeett didn't know whetlier theen was une or pot, We have no fn- formation on tlie subject, and don't see that it In 1uaterial whether there was one or not, The only question I8, whether Judge Blodgett was a party to ity or knew it, or uided or avetted it. Col. Cooper—This much has appeared: That Judpze Blodgett kuew thcse people. This Comn- pany was In bavkruptey, In the Bankrupt law there Is a vositive requirement thut u schedule and inventorles be flled lu case of a voluntary bankrupt withiu s certain period, Here woas a concern In bankruptey frow 1872 until 1870, during all of which time a combingtion wus in force 1n Chicago to_buy up thess policies and to et them at as small a brice as they could; and, durfug all that time, not one stuule step w taken in this bankruptey proceeding to collect thie nssel Not even the first creditors’ meet- 3R 1 don't re- og w MNed. Mr, Campbeli=We will coucede the Court dldu't some down off the Bench und prosecute this suit, Col. Cooper—Not only thnt, but we ahall prove by the relatfon which his Honor sustained to the ‘partics foterested that he, as & roason- able, prudent man, must have ki that these people Were engaged fn thls procecding, amd that he ajded it. | do oot mean to suy that Judge Blodrett alded these men |u swindling the policy-holders, or that he knew they were swindllng he don't churice, bat that he knew these men were engaged fu buging up the clufms, und that be lent the influeuce of his judicial office to ald thern In getting clalms nt prices Judge Blodgett might belleve they were worth; granted thal, thal b ieved they were otfering all they were worth; yet, at the same time, it {s an unjudicial proceeding, The Judge 8 bound to see that the law was executed. Tt made vodifference whether thuse people destred 10 trade vutshle of court and buy theee polivies at what the dudggo belfeved thievwere wortl,—no dtifference, if no oue was harmea by it, fu the Judue's upinton, What we complaln of s What the Judge, by not enfurcing the Jaw as (t is clearly latd dows, fu this way caused Injury 4, coute to peopls who were lishrunta befure” hoy Court,—nolley-holders of the GardenCity In- surance Compuny. Mr. Cawnpbell—What do you propose to provu by the witness{ Col. Couper—\When we get what the witness will state under oath, then we will know it. Mr. Camnpbell-=You refuse to sav whether this is what you will prove by this witness! Judze Trumbull—No evidence bas been glven that Judge Blodgett knew they wero buytne up the clat Siwply settling, 1 thiok, was all that was teatilled to. " Col. Cooper—I think, when you read Mr, Nis- seu’s testimouy you will be pretry well satisted in your wiod, from whut Judge” Bludgett tld Mr. Nissen, that ho kuew ihese people were buying these claling, and that they wore d posed 1o pay what thiey were worth. Judge Trumbull—They were settllog, Col. Couper—0 ves, suttling, und the Com- pany was in kruptey, Nubody had power to settle. Thao nescts belog fn the bankrapt court, the assiznee wag the only man to settl Mr. Knutt—\We uodurstand thut the materfal things to be Inquired into here {awhetherdudue Blodgett corruptly conuived st any irregular proceeding in this case with 8 vlew of alding any party to the injury of others; thut s, whellwr e knowlugly ubused his judiclal dis- ceretion in making these ordors, Col. Cooper—As to lhe lust proposition, that {s what we pronose to prove, Mr. Knott—If you ean direct your evidence 10 that volut it might, perbups, sbridgethe mat~ ter considerably. Col, Couper—As in all cases of this kind, the evidence will perhaps have to depeml upon circumstances. I propose to prove something by this witoess which it is probubly not falr tor me to stute here (1 1am aot sllowed to o on. But § will undertako that it shull lead to Judire Blodge:t,—thut fs, lu this wuy: That ho knew all this titue that the ollivers and stockholders, were buying up these cluims, Judge Blodgett (s0tto voce)—Tt fea lle. Cul. Cooper—1 do uot undertake to prove thut Judge Modgett knew they were buying up thy clafing at swindliug prices; but tie, by not exceuting the law as prescribed, becume w party to the injury of litizunts in his court, Mr. Kuoit—1 don’t known what the witoess knows, or what bearing it way have upon the reul polut to be fuyuired into, I wuppose it Is better to ko aloug with the Immensg latitude wo bave ullowlfll dlronl the start. |To Col. voper.] Go aliead. ch?:tllmlnlllnu of tho witness was then con- Inuesd. by At any tima after the great fire, or do you know now sbout the affairs of the Garden'la- aurance Company 1" 41 do know." “ ]y wus & corporation exlsting here fo Chi- cagot” W1t was.? Mr, Goudy-~Thin {s & perslstent course to run Intu & general oroof of a consniracy which ey ar inay not hiave existed. For sught we caro it did exlst. The counsel avers thut he docun't expect to show any fact except that Judee Blodgett knew that the officers uud _stockhold- era were buylng in theso polleles. Buppose he diil, for the purpose of thearcument, “He [Col, Cooper] avers al the same timo that he docan't espect to prove tat Judee Blodgett knew they were being run-luur:l 10 the disadvantags or hi Jury of auyboly, That very statpment’ ougnt cud this cuse, Mr. Knott—Wa think it very difticult for the mumorialists to prowe thst” Judge Bradeett knew anythlug about Lbe consplracy unless tbey pruva that the covspiracy did actually exlst, Cul. Cooper understood the rule tu be lo cuses of consplracy that the couspiracy could be proved by different Hoks In the chafo aud con- vecting the people with it Mr, Kuott—Froceed. “ The Uarden City Company bad a capital stock of how imuchi *Two bundred thous id doll 4 Befors the tire of 1571 1t bad riskst™ 4 Yes, sirs In the Commerciul Tusurance Com- pany of Cbicago.” #'\Wost waa done with the sssets oo band when It relusured ! " ?"I#’ were divided smovg the stockhold- ers.” * Who were the principal stockboldersi ™ 9 The Btate Sayls lostitution, Juba C. Haloes, Dr. Fustar—e! ** That will do.” Mr. Coumpbell—Let us bave them ull. W wuut to ses who Judge Blodizest’s friends were, Bome shorliug followed, which was stupped by Mr, Kuott, who ssked the gentlquen to pro- ceed quictly without Laving disbutes, “ [low much stovk the State Savings ln- stitutlon boldt " “One busdred sud seveutcen thousuud dollaa? cinsured fts And John C. Halnes1" “Fiftr-ono thousaml doltars and rome 0dd hundred.” **In addition to the £200,000 which hal been divided nmong the stockhnlders, was it under- stoud that there was a atock lability i “That questfon was raised. 1 never was fally Informed about It myself.” i *"The stock had never beep pald (n fall1"” “"The £200,000 included the stock notes.'” ‘* Ilow much were the lisbilitles of the Com- ‘:?'z. a8 they have finally been determined to * Ahout £450,000," 5 Which were reinsared fn the Commerciai?”? !*Yes, sir.") 2 ‘* Did rou bring any clalms agafnst the Come pany In 1871, after the fire, and in 18737 1 did 0 1872, T Gon't think 1 did in 171, ** Did you have » talk with any offlcers or slockholder of the Company with referemce to the price that these claims were wortli 1" 4 I did; with Lawrence Beardsley and John C. Dore, the Presidcnt of the State Sayings In- atitution,” ‘¢ What did they tell your” * Beardsley told me (tnis was {n 1571) that the clalma were not worth over fivo cents on_the dollar; Dore told me they wera not worth 10 per cent,—that they were paging 10 per cent, and that was more than they were worth.” "Dm'!ou buy any claimsi"? “1 did in 197" For how muchi” Ten and 12 centa.” 4 * Ilo you know what general arrangement the officersof the Btato Saviogs Institution (John €. Dore)und John C. Halnes made in 1672 with reference to huying these outstanding clalms?’ “lu 19 1 do not. I know that each was buging them," **In the spring.of 1973, do you know whather there wasany arrangeraent made?’! ** There was an urrangement 1ade then with the 8tate Savings and John C. Halnes—1 mads an nrmm{l:mcnl with the State Saviogs to buy claims, hud John C. Haincs was to contribute his nro!vonmn—onc-unrd, and theStata Savings two-thirds, ! *\Was It impressed upon you by Haines and the ofllcers of the State Savings Institution that fhe relation thie Stato Saviugs and Haines bore to the Company as to this large Hability should be carefully concesied from the publicl 1t was, ' * With whon were you drawn into connection in this matteri? . “ Mostly with John C. Dore." Were you with Homer Cook?? otmtichy sumewhat," ¢ you with H. P, Smithi " 1 was In the (irst negotiations,” Were {l\ll with Beckwith{” Only had one or two luterviews with bim," *Ou ihe tigures they gave you did you make any extimate of the valite of the cluims i '’ 1 did. That was lu the first quurter of 1873, 1 estimated they were worth 17 cents.” * Have you since found out that was un- truet” “Yes; they wers worth about 30 cents. I bought at 17 cents, and afterwania ralsed the price to 25 cents. ' *How mauy clnims dil you buy up alter thix arranzement was madel * Abonut $1.2.000," * What was the reason given you that the connection of John C, Halues und the State Bavings' Iustitution as stockbiolders of this Combpany sbould be concealed iromn the policy- holdersi™ “The "damaging effect it might have on the futeresta of 1he bunks with which they were cone nected. Jobn C. Huines ot thut time was Presi- dent of the Fidelity Savings Baok, nud John C. Dore weans prestdent of (he State Savings Baok." “11d you at thnes have duficulty about the baukruptey proceedliugs being pressed! Waoat was sttd about that Y Well, they were afrald that they would bo presecd to an adjudication In bankrupter, and if thut should be done it world be very disustrons to thetn und to thelr banks. by making o run upon thefr hanks, and cuusing distrust of the banks, beeause the parties {otercsted fn the Uurden City were Interested aleo in the banks, ‘11 the hankruptey proceedings were pressed, ond schedules nnd “inventories were flley, then Aheir connection would becvine public, and that would cause & run on the baoks ¢’ “Yes, sir."” ““And that Is what they partlcularly flesired toaroid{" “Yes, 8in" At tie pame thme they wished toget up thiese elatma ut us ciieap prices as they could " “Yes, sir.'? *Dig yon ever have any talk with anyof these gentlenen about what arrangements they l'mld|'|'|'ndu to huve the bankruptey proceedings el **'These motions that were made lo the Bank- ruptey Court were known to me, and they wers mattére of diseaselon, Mr. Halnes sod Mr. Dore both said thut, as far asthnt was concerned, Sr. 3L P, Binith and Homier Covk controlled th Through Judie Blodgett.'t They could atop it *Yan, sir.” “1id you bear them say that on more thaa one ocension ™ “Mr. Ifalues once or twice during the pen- dency of the buviug of claims, und once or twice after the c¢lalms were bought up, and winle [ wus endeavorniog to make a settlement; and Mr, John C. Dure, with whom'[ had wost of my ne- gotiations white buring.' “Did vou understand what relations they tained to Judga Blodgett 1t T did not.” #1)o you now " . *1 dv not,—nuo, Mr; I do not know that I Kuow suvthing about it, except that they are frivndly with hit," * Weil, now, take for Instance Nissou's clalm here, When he storted these proceedlngs, and you to flle schedules, whag Id you do " iy sAVetl, we bad cooslderable nogotistion with Barnuwn uwml Nissen about buying up what clatins they had. This was when these proceed- #tarted. We mado terms with thew; cy were 1 do not remcibor,” “The Feault of [t all was, Uit when the thinge ot too bt furthese creditors you bod tu go undd pay 1hems what they asked i R'u dig.” + These clatms were bought malnly in 18731 “The bulk of them were, but soms were bought in 1874, 1874, and 1876, 'ha bulk were bouht at 25 cents on the dollar, but, as it tioul- 1y proved, they were worth about 8. The cun- tribution of “the Commerclal Iusurance Com- pauy came tu toward the Jaat, and 1 found at was un gasot wo hadn't made account of,” “From August, 1873, when the petition In bankruptey was tlled, down Lo February, 1573, what was pald for these clulme " “AIL the way from 5 Lo 13 per cent,” ""llm-. I-m-r v::lu u:;tl‘uuld, l‘llnc price went up to 17 cents on the dollar, ind you svou found llu'r\l:uul’d ufford to pay 254" G o Did they say how they controlled IL'I" ) 4 ut the bulk were bouglit before you wmads this ‘urrmvvgumuut |3 W hers were left ouly how mnuch to buy " “AhouL $150,000.% Y T he other $500.000 had &to 12 cents on the dollar?? “Yes, alr.* On the cross-examination witness eaid he bought soms claluis for bimsel! 0 1a71 and 1872, but the arrangement was mado lo the early purt of 1873 ‘Ihe arrancement between blmaelf, - Dore, und Huines was entered ito n Avedl, 1973 ‘The figures they cavy Ll were given along in February. As Halnes guve them, there wers assets of $180,00, of which #3000 wera nog z00(), leaving tha not aniount at $160,000. The hnhlnuu. according to Halocs, were 8000,000, On these ligures be esttimated that the clalms were worth 17 cente, ot which be bought a fuw until the arrangmwent went ioto operation, when be was buying ut 25, It was an undertake fng on his part to pay the polivy-holders all ne believed the ctaims fo be worth, snd there was no purpose on bis or thelr l)url to buy thew tor Tyss Lusy the Compuny could honestly pay. ‘I'ne ubject was to protect the credit of ‘the bauks with which Dore anil Halnes ware connected, 1f the Company had been wound up in bankrupt- beon bouglt at from cy these. clalms would wpot have been worth ony more ut the first than e patd " for them: but, with tue contribution from the Cuimercial, be thuught Ihey would be worth a 5‘“' deal more. ‘Tha $20,000 which Halvoca sald was not good wae afterwards collocted. Ia fact, this clalin w o the thue, and Hajoes ought tu hu kuown it. It was true, also. that the Hablliti proved to ho less than Haiues' figures wade them. There was & diffrence of vpinfon te- tween wituess and Smith as 0 the necesalty of vroving up clalios within uwelve months; wit- nuss holding that they could be proved up at the uxpiration of the tlae, and Bmith tehivg bia I was & d—d fool for thinking su. [Laurhter, Dore wud Harrs trequently said that Bunth and Cuok could *“manage’ ‘matters fu the Biuk- rupicy Court, Hulues told i thut Smith was uis attorney, aud thut Couk cawe In after- wards (o advise Smith. When be wasunpazed in e buving thees cluius, the questivn ol orders came up, und Dore clatmed that It wasi't o much the witness who had worked the thiug but Suith aud Cook, who bud kept the bankrugtcy ceediuge quict. proce 5 arked Mr. Goudy, **dida’t you rely on Ju 15'“35“‘ W protect you from paying wiora for theas » Well, we supposed thers was s Mmit to that ¢, [Laughter.) " You just came down or pald what was aco- enury_dlu"gct the clalws when those ordess wern entered ! + 1t was usually dove by payluyg the stterae)s whio el thoso i ke ek 4 1