The Mankato free press., 1896-01-10
MR.. BURDICK TESTIFIES.
HE EXPLAINS ON THE WITNESS
STAND

Secured Only $S, 1880 on $40, 900
Loan From Trust Company--His
Agreement With J. II. Ray Regard
ing the Building and Overdrafts--
Action Dismissed as to Mr.. Ray and
the Mankato National Bank.
The taking of testimony in the
disclosure proceedings, to ascertain
the amount and disposition of the
property of the E. @. Burdick Co. be
fore the assignment, brought by
Assignee Richards, was commenced
Friday before Judge Caldwell. Owing
to the illness Of his son, Judge Cad
we'll could not hear the case this
morning, but returned this noon, and
the case was actively taken up in
chambers. The room was full Of at
torneys, creditors, reporters and
stenographers, and great deal of in
terest was manifested in the proceed
ings. as though important develop
mentS were to occur. In this, the
listeners have been disappointed.
The first move was the securing of
the dismissal of the proceedings so
far as they related to the Mankato
National bank and J. FL. Ray, on the
ground of the absence of jurisdiction
on the part of the court.
E. G. Burdick was then placed upon
the stand. G. j. lockwood, of Min
neapolis, appeared as his attor-
ney, while j. A. Flittie appeared for
Mr.. Richards and was assisted by
Lorin Cray, who also appeared for the
National Citizans' bank. A. r. Pfau,
w. l.. Comstock, Benz. G. Taylor, G.
L. Benedict and other attorneys were
present representing creditors or
others.
Mr.. Cray subjected Mr.. Burdick to
CloSOt OAdL dUiOu. luC lCCCHU lOdu
of $4,000 from trust company was
touched upon and Mr.. Burdick said
that he secured SS, 1880 in cash on
this loan. Of this he deposited
81, $50 in the Union bank of St. Paul
to the credit of Mankato National
bank. Witness had met Mr.. Ray iD
St. Paul the day the loan was made,
and told President Dunn, of the
trust company, OF the arrangement.
The S4,330 was placed to the bank S
credit because witness had given
out checks against this money
for work done at New Ulm.
These checks were S55S TO
Wheaton & Reynolds, of Minneapolis,
5000 to G. w. Babcock & Co., of Kaso-
ia, and S274 to Hansen & Lampert,
and none of these had been paid when
witness went to ST. Paul. Witness
told at home that he expected to go
to LeSueur Center that day.
Verbal orders on the Mankato Ma
tional bank to be paid from the loan
money were given to A. w. Robinson
for ST, $50, to Laird. Norton & Co. for
1851, and to Joseph Manderfeld for
$500. Messrs. Robinson and Mander-
field already had liens on the Ray
building, and Laird, Norton & Co.
had threatened to put one on. Other
creditors werepromised small amount s
in the same way, and all of these a
little overdrew the account at the
bank.
Witness said that he had made an
agreement with Mr.. Ray, two or
three weeks before the assignment,
to have money enough 60. into the
Mankato National bank to care for
his building and the overdrafts.
Mr.. lockwood objected to this line
of questioning, as it tended to show
preference Of creditors, which was not
alleged in the petition for the dis
closure.
AAA' OAoy Ct1iu UudU dUU6IuDU
to show that there is money in the
bank yet, belonging to Mr.. Burdick.
Further objection by Mr.. lockwood
was overruled by the court,
Mr.. Burdick said that he had heard
in various ways that most or all of the
orders and checks referred to had
been paid by the bank. Mr.. Ray had
told him so week after the assig n
ment, but did not say when they were
paid.
Witness had no other money at the
time of his assignment except S45
collected just before assignment.
Had about $40 when assigned. Had
10 shares stock in National Citizens
bank when assigned. Had used it as
collateral for money to amount of
81 800 about year ago. Never said
he had not used it for collateral. Had