The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1874-04-02
The Durell Impeachment Case.
Norton's Operations in Bankruptcy
Cases.
Durel's Famous Midnight Order.
His Impeachment Probable.
[COr. Of the New York Tribune.

IN regard To the administration of the bank
ruptcN act IS very volnminous. The orders
Of the court appointing Mr.. f. L. Norton
official assignee in every bankruptcy case.
and the Subsequent orders to pre- test him III
his eNorbtant charges, have recently been
printed i'll the Tribune. Under these orders
Mr.. Norton's management has been most
outrageous. He got possession of all the
assets OF every bankrupt. whether an addi-
tlonal assignee was elected by the creditors
or not, and his cha!ges were of such an eX-
orbitant character as in almost every case
TO absorb the entire amount of property
which came into his possession. He EN-
ployed counsel at eNorbitant rates, paying
TO single attorney from $1,000 to
e5U,Ooo a year. and, Of course, added this
amount to the expenses of administering
bankrupt estates He made an agreement
with Z. r.. GlIardey Il Co., anctloneers, to
give them the business of making sales of
property on condition that they would re-
Turn to him one half of the commissions and
from this source he received between June
~, lSbo, and April 30. ls72, S2l, 162 in cash.
In all cases where Norton sold at private
sale lands SUBJECT to the mortgages thereon,
under the order of the court and by author
lty OF the fourteenth and twentieth sections
Of the law, he himself retained the entire
price received, without ever filing any ac
count of it. These sales to the mortya
nave been simply private bargains by W hicli
lie has, under the plea of providing for cX-
penS,s, always cXterted the largest sums
possible, and in The deed of the property
which he has given he has generally named
SO as the sum received, when numerous
witnesses testified that they had paid him
500, $1,000 5000. and even $1,000. and that
| he had demanded even larger sums than
these. A single example will illustrate this
practice:
Mr.. John I. Wyche became a bankrupt
and delivered to the assignee IL plantations
on which Mrs. Peoples held IL mortgage for
more than its value. Mr.. Wyche went 10
New Orleans to arrange for the possession OF
the estate of Mrs Peoples. He first at
teMpted to learn from Norton, aud Stone
his attorney, what amount Mrs. Peoples
wuuld have to pay to get possession of the
property. The following is an extract from
his testimony:
1 1t was two years before l could get them
TO name any definite amount. | therefore
had to blde my time; finally they sent for
ne, and asked that should name the price
that would pay; | proposed the sum of
$500 that | would pay as the agent Of Mrs.
| Peoples III order to have her claim sul,,tan-
tiatrd and the property sold and bought in :;
Mr.. Stone laughed at the proposition, and
SAID thar it would not pay the costs of the
court: that it would not begin to do it. and
that he could not think of it that while he
was disposed to aid and assist me- vet the
costs OF the court must be secured think
before the conference with Mr. Stone came
to an end. he said that he would take S2750
and grant clear title to the property; !
SAID that 1t was impossible for me to raise
the other $3.50, bet that | would try; went
out and spent about IL week trying to raise
$3.50: | then went to Mr. Stone after had
succeeded i'll raising this amount of money,
and asked him to fix up the papers, and
, that then we would 90 and take Il dinner;
when the amount Of $3.50 was mentioned
he said that was not the amount he had
asked; that l was entirely miStaken: in
} sisted that that was his agreement, but he
would rot take the money: | remained here
lew days and we met again. by accident.
when the subject was talked over, and he
finally said that if | would raise $1,000 he
would see that the papers were fixed:
went around again, and did raise S..ut,0 aud
went back to Mr.. Stone: he proceeded then
to fix up the documents, and when it came
to the question of costs, he said: you mis-
understood me; the costs of Mr.. Norton and
myself are only included in this contract.
not the entire expenses" said l. ain the
nane of God, can you expect me to bea:
eyerythngw He said there was Cen Her
ron. the Marshal, and Mr. Pitkin. the Regis
ter, whose accounts would have to be settled
Well says |, after hesitating '.let me
know what the amount of these bills is;''
lie went in and brought Mr.. pitkin's bill
OF 5l5U: asked him If that was all he said
Gen. Herron's account as United States
Mar shal was about the same account: VERY
good says |, fix mp the papers and | will
pay the money! the papers were then fixed
up and he gave me a discharge to the prop
ertN, and also a receipt for 80 and costs
z. How much money did you pay A. |
thiuk s., 4G0.
@. And toi that payment what did Won
get A. | received the title to that prop
erty-at least, Mrs Peoples received the
title to the property, subject to the claims.
G. In other words. shes took the property
subject to her own claims against it, and in
order to get that you paid for her about
$1,000. A. Yes.
Z. What evidence was given you as to the
moneys You paide A Nothing but that re-
ceipt of ten dollars and the title to the prop
erty.
Q. Where is that paper' A. have got
it home think it is on record in he courts
of my parish
At least twenty witnesses testified to SIM
liar proceedings as these.
! Judge Campbell, formerly Of the United
States Supreme Court, gave the following
testimony III regard to the sale of the New
| Orleans, Mobile and Texas Railroad last
spring:
| 9. Since you We're examined before an
order has been presented here, which pur-
ports to have been entered upon consent of
counsel, giving Marshal Packard $4,000
az crier, and / believe the two masters
$4,000 each. 1t purports to have been by
consent of counsel, and drawn up by you.
A. The statement of that matter is this: |
have brought over the decree in the case; II
| is the decree on the bill and answer: tha.
decree was prepared by myself and SUNNI
| ted to the court lut in for he masters i
| chancery in the original draft the name i
Mr.. Gurlay, who had been cIeik Of the cou.t
during the whole time I Was pIes.d.n:-
Judge, and ma. of whose affairs i'll that
! court never heard the first complaint; IL.
was AL exact AID faithful clerk. and ! s.
lected him for commissioner because Of the
Importance of the matter, and desired to
get such pei-"n +" attend to tine business;
the draft of lie order was returned to me
with Mr.. ShaftiIptl :. t.ame lntrOduce1