The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-02-20
Significant Testimony Taken in the Con-
greSSiOnal Investigation.
The Famous Order of Me-
chanics' Hall.
lRosEATE JUDICIAL HABITS.
Nortons System of Settling Estates in
Bankruptcy.
His Own Confessions and the
Evidence Of a Victim.
WASHINGTON. Feb. 10. 1874

WASHINGTON, Feb. 10, 1874
The following most important testimony is
among that taken at New Orleans in the inyest
cation OF the charges against Judge Durel look
ing TO his impeachment for corruption and MALE
feasance In once, and is taken from the or1cal re-
cord OF the evidence. Great pains have been taken
here TO keep secret copies for the press having
been persistentiy refused.
Emery E. Norton, the nrst and most Important
witness, Is the celebrated assignee in bankruptcy
appointed by Judge Dureli and who Is generally
credited with much OF the dirtiest work OF the
period OF anarchy IN louisiana, and Is accused OF
having pronted largely from the emoiuments and
perquisites Of his position in roobing from unfor-
tunate debtors and creditors whose anairs have
passed through his hands, TO the full extent OF an
iinsatate and unconscionabls svarce. These
bankrupts and creditors have, IL Is said, furnished
10 members OF Congress, some time since, the
data whereby 1t is supposed that II necessary, his
continuance in the office which has by him been
shade wed in such disgrace and infamy, may be
rendered impossible. Upon his testimony great
expectations have been built BY the ant-Kellogg
party for the impeachment and removal OF Judge
DurelL
THE TESTIMONY.
Emery E. Norton sworn and examined BY
che Dureu committee OF In vestigation Decem-
which appeared that the residence Of the witness
in New Orleans began ten or eleven years ago,
and that he lived prior TO that period in New York
city, he testified that he had been made q custO-
dian Of bankrupt estates from che time OF their
surrender up to the time an assignee was APP
pointed, the law 1t having been found, making
provision for the taking care OF bankrupt es-
tates during that interval, and many OF them hav-
ing been abandoned and sometimes carried away.
He was designated to take charge Of the property.
and was now the custodian Of all bankrupt es-
tates, under the general order OF the Court,
entered on record. He had also acted as assig
nee IN bankruptcy, but Tor the number Of cases In
which he had so acted he referred the committee
to his books.
THE NUMBER OF VICTIMS.
There may have been ffry or a hundred, or nfty
or SIXTY. He had been custodian OF about 1900
cases. In some cases where he had oeen made CO.
assignee IN the settlement Of large estates it HAD
been done without the sanction 10y election) OF
the creditors. He had also been appointed to this
ONCE. ~ the Register OF Bankruptcy, acting in &C
cordance with the genera order Of the Court
giving him the power to do The witness, in con.
Junction with the other assignee. made bills Of sale
property Some of the estates were in Louisiana,
and some in Texas, Arkansas, Mississippi, and even
In Tennessee. The sales OF property were made BY
the assignees. Norton had three auctioneers and q
branch office in Monroe, some 800 or 400 miles rrom
New orleans, where some sales were made. The
witness said that there were about 600 petitions
filed OF estates at that point; the amount OF prop
erty sold there was 5000 or 81, 900.
SCALE OF FEES.
No regular scale OF fees was established. The
witness on this point said:-
The charges that have been made by the as
signee have been made in this way. The statute
says TINS -F1ve per cent Tor receiving and i've per
ms win frat M and
half per cent ior receiving and two and one-half
per cent Ior paying on the next $4,000, and one
per cent ior the balan e, II there Is any. When
reasonable compensation was allowed l have
charged what was reasonable compensation for
Wees ana Where nave reai sssass nave n
cluded The printers and auctioneers bills and the
lees OF the Register, Marshal and Clerk.
u Was this matter OF compensation submitted
to the Courtp A. Yes, CIR.
TAE SYSTEM OF RELEASE OF xsTATEs
q. Anu approved oy the Courtr A. In some
cases; the property that was released, subject to
mortgage, was where property was mortgaged Tor
a mucn larger amount tnan Its value; In those
cases 4 have pe'itioned the Court to allow me 60
release the property Tor compensation which
might be agreed upon between myself and the
mortgage creditor, the party in interest holding
q mortgage, with the vendors privilege.
THE ASsIGNEE's LITTLE HAUL
Alter had agreed with HIM what he would pay
for the services done would then petition the
Court to have 1t allowed me as compensation Tor
services rendered. another class OF cases Is thus
j file my account and notify the creditors that
have 1ed my account ior dividend, II II was
i
am gong to apply y certain day l0r q settle
ment OF my account on d certain estate; IL IL ii
account If there IS no opposlton: should there De
opposition, 1t as reierfed 10 the Court and then
referred to a Master In Chancery or commissioner
to examine tn account, and the report OF the
Master IS either confirmed or rejected by the
Court; then there Is another kind; an estate
md alter gong all through II, Is not sufcent to
produce any money to the creditors; | then petit
ton be court 10 allow me TO nle my nna account
and give twenty days notice 10 ali the creditors
a
count settled and be discouraged from the trust OF
aassshee; On sne nsy nxea appear oe1ore eae
the accounts have been passed; then there IS
another branch 81 cases ~ which there Is not
the Court, stating that 1 have administered
the estate to the best OF nv ABILITY, and
not sunneient TO Cali second or tnrd
meeting o. creditors, and / ask to be allowed
as assignee; Will now cite another class; when
have sold property subject 10 mortgages have
mortgage creditors, rather than sacrifice II;
have agreed with the creditors that Will release
the property Cd tneir paving what would be en-
generally arrange the matter with the lawyers;
! ascertain whether It IL valid mortgage and ex-
anime a. whether the property Will realize any.
thing TO the common creCttor.
ERAsCRE OF MORTGAGES.
Then petition the Court to allow me to release
this property to the mortgage creditors ana allow
me TO settle with them as to the compensation
ment between myself and the creditor; then ap-
ply 60 the Court and state what have done; that
! have made this agreement with the creditor;
that he win allow me ana so to deIray the ex-
penses OF the bankrupt, and ask the Court
20 allow me the amount ! have agreed upon;
that has been the way with moet OF the property
released out OF bankruptcy: will tell you how 1
have disposed Of other property In cases where
had property two more years on my hands, say
a sugar plantation abandoned during the rebel
lion, the Court would grant me TINS order :-AHow
me to petition, stating all the lacts, that the prop.
erty was encountered, and ask leave OF the court
TO erase the mortgages and sell the property ree
from encumbraDces, leaving the person who may
claim the iund 70 come In and claim IL; in this way
] got rid OF good deal OF propert, but the cases
oil That KIND are not very numerous, because l
Ionno u was sacrlncng the property, the expenses