The New York herald., 1879-02-08
JUDGE BLODGETTS CONDUCT.
THE ATTEMPT TO PROVE IMPROPER RULINGS IN
BANKRUPTCY CASES.

THE ATTEMPT TO PROVE IMPROPER RULINGS IN
BANKRUPTCY CASES.
CHICAGO ILL.,. Feb. 7. 1879
In the Blodgett investigation to-day Z. A. Drum
mond was recalled. He identified the pages Of the
minute book wherein orders of the Court
corded awarding Winston $4,000 in the Bigelow
block case; witness entered the order; Blodgett
presiding, and Drummond was in Chambers. but not
on the bench; witness remembered Drummond
indignant that the order made and entered.
William H. Bradley testified that Judge Drum
mond. revoking the above order, said it never
should have been made without consulting him.
The defence read Blodgett's denial of the charges
and specifications that his court had done illegal acts
to deraud the creditors of the bankrupt Garden City
Insurance Company.
INSURANCE BANKRUPTCY CASES.
George W. Kemp identified orders from the minutes
Of the Court the Garden City case showing numer
GUS applications of creditors to have schedules filed
and that the order requiring schedules set aside
and no meeting of creditors called
Mr.. Goudy for the defence. called attention to the
rule Of Judge Blodgetts court in 1873 in the Fire
which sush estates were usually settled.
Judge Blodgett said the rule stood until some two
years ago, when Judge Drummond had occasion to
differ with him. but not to the invalidation OF pro-
ceedings then ended.
L. j.
City creditors testified that he appeared before Judge
Blodgett with petition to have the schedule hied;
Mr.. Blodgett thought the company was doing its ut
most TO pay, and extreme measures would only
trouble and expense; Judge Blodgett made no objec
ton to entering the order. and in few days settle
ments made at forty fifty per cent. although
the best previous offer was thirty per cent Witness
told Judge Blodgett that Mysterious proceedings
were taken by the company in Chancery.
HOMER COOK AND II. d. SMITH INFLUENTIAL.
T. L. Miller testified that after the fire he was buy
ing insovent insurance companies claims
Mr.. Cooper, for the memorialists. said il was pro-
posed to show that the proceedings In Judge Bodg
etts Court favored q combination OF insurance
officials in buying up claims
companys liabilities s65000O. and its secretary
told him claims were not worth over five per cent in
1871; bought claims at ten TO twelve per cent
In 1872. by an arrangement which
ccaled from the public. The price finally rose to
thirty per cent Had the schedules been filed IL
would have shown large connection Of the state
Savings and Fidelity banks with the officers Of the
Garden City company and caused run on tho
banks. II was understood that Homer Cook and II.
u. Smith could get the proceedings in bankruptcy
stopped through their influence with Judge Bodgett.
About $500.OO of claims were bought a: fve to ten
per cent; when the bankruptcy proceedings
pressed they brought more. Witness said on cross
examination ne had difficulty with the attorneys
on the part of the estate regarding compensation.
T. +. Miller, son OF the preceding Witness testified
TO similar state OF facts.
Further evidence given on the Bgclow block
charge
The memorialists gave notice they would, when
the committee returns TO Washington. put in evil
dcnce numerous documents relating to some OF the
charges.
Blodgett's counsel introduced q letter from Chief
Justice Chase, written in 1872, 20 the effect that
additional Register in Bankruptcy here was not adj
visabe.
Howard Cook for the defence. denied the principal
points of the evidence respecting himself In the
Garden City Insurance Compsnys case. lie cspe-
clally denied that he ever had conversation with
Judge Blodgctt regarding the Affairs Of the estate
ever professed TO have influence with the Court.
John II. Haines and others testified on this case
and generally confirmed Cooks statements.
Tho niemorialists having been unable to secure
the attendance of witnesses the charge that Judge
Blodgctt demanded verdict of guilty In the Rush
4 Palmer whiskcy case. asked for a continuance.
MIR. Knott said
As all ground IN tho memorial has been covered the
| investigation may he considered closed.
The charge then Withdrawn.
Judge Blodgett then called for the defence
He explained his action in the Of George A.
Walker, who claimed TO have been disturbed In his
possession Of rooms In Honorc Block. lie said he
| had no idea of being abrupt with Walker. but was
very busy in Chambers. He had no knowledge OF
scheme by the stockholders of the Garden City
Insurance Company to buy up the CLAIMS
believed tho company was honestly anxious
to settle had always been disposed TO grant every In
diligence before the Jerpier rsort 10 bankruptcy ma,
have advised parties as testified to- TO settle ON th'
hest terms they could get without enforcing bank
rpcy: did not act any information obtained out
side the records.
| The committee then adjourned TO meet IN Washing
ton and report 10 the fun Judiciary Committee.