Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1879-02-08
THE BLoDGETT INQUIRY.
The Examination of the subcommittee
Closed, but the Memorlalists Promise
Additional Evidence to the Full Ju-
dietary Committees

The Examination OF the subcommittee
Closed, but the NemorIalists Promise
Additional Evidence to the Full Ju-
dietary Committee.
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 Winstonj$30, 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 Drnmmond was indignant
that the order was made and entered.
MIR. Cloudy, for the Defense called attention
to rule OF Blodgetts court in 1878, in the
Firemen's Insurance bankruptcy case rs a
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.
L. J. Nlssen, formerly attorney for some
Garden City creditors, testified that he appear
ed before Blodgett with petition to have a
schedule filed. Bodgett thought the company
was doing the utmost to pay and extreme
measures would only cause trouble aud ex-
pense. Blodgett made no objection to enter
ing tue order and in few days settlements
were made at AZ or so per cent, although the
best previous offer was 80 per cent. Witness
told Blodgett that mysterious proceedings were
taken by the company in chancerv.
T. L. Miller testified after the fire he was buy
ing lnsolvent insurance companies claims.
The Garden City company's liabilities were
$65O,OOO, and its secretary told him the claims
were not worth over 5 per cent. in 1871.
Bought claims at 10 to II 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 on the banks. It
was understood Homer Cook and 81. B. Smith
could get the proceedings in bankruptcy
stopped through influence with Blodgett.,
About half million of claims were bought at
to 10 per cent. When the bankruptcy pro.
ceedlngs were pressed they bought more. Wit
ness said, on crOss-examination he had a 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.
Blodgctt's counsel introduced letter from
Chief Justice Chase, 1872, to the effect that 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 verdict of
guilty in the Rush and Palmer whisky case.
asked 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 judiciary
committee.