Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1879-02-08
THE BLODGETT INQUIRY.
The Examination of the Sub Committee
Closed, but the MeInorialists Promise
Additional Evidence to the Full Jul
dietary COm1nittee.

The Examination of the Sub Committee
Closed, but the Memorialists Promise
Additional Evidence to the Full Jul
dietary COMMITTEES.
CHICAGO, Feb. Tin tie Blodgett investiga-
ton. E. A. Drummond. recalled, identified a
page of tho minute book wherein an order of
the court is recorded awarding WinstonI$3o. 900
in the Bigelow-Black case. Witness entered
the order. Blodgett was presiding and Drum
mond in chambers, but not on the bench. He
remembered that Drummond was indignant
that the order was made and entered.
MIR. Cloudy, for the Defense called attention
to rule of Blodgett's court in 1873, in the
Firemen's Insurance bankruptcy case. as
basis upon which such estates were usually set
tied.
Judge Rlodgett said the rule stood until some
two years ago, when Judge Drummond had Oc-
casion to differ with him. but not to the in.
valuation of proceedings then ended.
Il. j. Nlssen, formerly attorney for some
Garden City creditors, testified that be appear
ed before Blodgett with petition to have a
schedule fled. Blodgett thought the company
| was doing the utmost to pay and extreme
pense. Blodgett made no objection to enter
| ing tue order and in a few days settlements
were made at ~ or 50 per cent, although the
best previous offer was 80 per cent. Witness
told Blodgett that mysterious proceedings were
| taken by the company in chancery.
| L. l.. Miller testified after the fire he was buy
ing lnsolvent insurance companies claims.
! The Garden City oompany's liabilities we're
| $65O,OOO, and It's secretary told him the claims
were not worth over per cent. in 1871.
Bought claims at 10 to IL per cent. in 1872 by
an arrangement which was concealed from the
public. The price finally rose to 80 per cent.
Had schedules been filed it would have shown
large connection Of the State Savings and
Fidelity banks with the affairs of the Garden
City, and caused run the banks. II
was understood Homer Cook and 81. B. Smith
could get the proceedings in bankruptcy
stopped through influence with ;Biodgett:
About half million of claims were bought al
to 10 per cent. When the bankruptcy pro.
ceedlngs were pressed they bought more. Wit
ness said, on cross-examination. he had diff.
| Guilty With attorneys on the part of the estate
regarding compensation.
The memorialists gave notice they would
| when the committee returns to Washington,
put in evidence numerous documents relating
to some of the charges.
Blodgttt's counsel introduced a letter from
Chief Justice Chase, 1872, to the effect shat an
additional register in bankruptcy here was not
Advisable.
Homer Cook, for defense, denies the princi
pal points OF evidence respecting himself in
the Garden City.
John q. Haines and others testified in this
complicated case, and generally confirmed
Cooks statements.
The memorialists having been unable to Sc.
cure the attendance Of witnesses in the charge
that Judge Blodgett demanded a verdict OF
guilty in the Rush and Palmer whisky case
asked a continuance, but it was denied and the
charge was withdrawn.
Judge Blodgett, called for the defense, ex-
planned his action in the case of Geo. A.
Walker, and declared he had no knowledge of
the scheme by the stockholders of the Garden
City insurance company to buy up claims, but
| believed the company honestly anxious to
settle.
The committee then adjourned to meet in
Washington and report to the full judiciar,
committee