The Birmingham age-herald., 1904-01-12
HAD ALWAYS REGARDED
 THE DEAL AS 4 "HOLO UP''
Drennen Says Money Was to Go to the Firm of Drennen & Co.,, and Says the Members
 Knew of 1t.


 nen against his company for $1o,ooo on an alleged agreement in the bank ruptcy court that MT. Drennen told him the $10,ooo would have to be distrib- uted among three members of the Jeff ferson county sanitary commission in order that certain contracts might be secured.
 MT. Drennnen entered his claim on the grounds that the Donelson Construction company, the Pennington Construction company and c. M. Burkhalter and com pany agreed to pay him s1o,0oo for acting as adviser In securing certain contracts from the sanitary commission.
 MT. Donelson testified that MT. Dren- nen told him that $5o00 of the amount was to go to Commissioner E. J. Smyer, and that Commissioner Thomas H. Mol ton and James Gillespy was each to re- ceive s250O. MT. Drennen, who also testi fled, denied emphatically, that members of the commission were to be compen- sated He said that such was never even considered.
 The hearing commenced yesterday morning shortly after Il o'clock before Referee N. W. Trimble of the bankruptcy court On account of the large crowd attending the hearing it was found neces- sary to hold the sessions in the United States court room on the third floor of the Federal building.
 Prlma Facie.
 pafaraa V-,.itnbla ctatad tbot if tho understanding when the claim of MT. Drennen and the others were filed that they were allowed prima facie and upon condition that any creditor of the trus- tee of the bankrupt company might ask for re-examination of any claim.
 Attorneys for the claimant asked that the trustee make affidavit to the petition filed to expunge the claim, under the rules of practice of the court, which was done.
 Claimants Attorney Moves.
 Tie following motion was presented by Attorney Drennen:
 Now comes D. M. Drennen, the cred itor, for the re-examination and dsallow- ance of whose claim a petition has been filed by the trustee in the above matter and moves the court to strike out the pe- titon of said trustee from the file, be- cause the s.tIne is not supported by afl- davit as required by law.
 '2. Because the said petition does not state any cause for such re-examination that is verified by law
 a. Because there is no affidavit that the facts stated in said petition are true.
 A. The affidavit does not show that the legal objections are true"
 Motion overruled.
 The motion was overruled by Referee Trimble and this motion was presented:
 Comes D. M. Drennen and moves the court for an order directing that the facts set up in said petition for a re-examina- tion of his claims be set out with partic- ularty.
 "2. That said petition be so amended as to show what facts are relied upon by said trustee
 This motion was also overruled by the referee.
 At 1;2O o'clock the witnesses in the case were sworn by the referee. Attorney White asked for the rule as to witnesses Donelson and Burkhalter which was granted.
 Drennen on Stand.
 MT Drennen. the claimant was placed upon the stand the examination being conducted by Captain White. He testified:
 q am the claimant in this case, and am the party referred to in the con tract. The agreement with the con tractors was entered into on June 7, 1902. The matter had been up for about a week before the agreement was signed.
 Mr. Burkhalter was fn my office the day after the first bids were received by the Jefferson County Sanitary commission on some other business, and the matter came up at that time, I think Do not remember who approached the subject.
 Talked to Burkhalter.
 'I never talked to D. B. Pennington or John E. Donelson about the matter, until the contract was signed. They were in my office when 1t was signed. Think we had a conference later at the city hall We met there for the purpose of discuss ing prices the contractors would accept the contract TOT. In1nK the sanltary com mission was in session at the time in the city engineers office at the city hall Think we were in the mayors office, and do not remember whether anyone but the contractors and myself were present. Do not know whether or not the sanitary commission was at that time considering bids for building the sewer. Don't think that I had been in the room where the commission was In session.
 ''One bid had been made at that time which was declined. This was before I entered into the agreement with the con- tractors. The contract, I think, was en- tered into between the time the first bid was rejected and the second bid was off, fered
 q only talked to G. B. Burkhalter He informed me that he was the representa- tive in this matter, of the Donelson Con- struction company, the Pennington Con- struction company and c. M. Burkhalter & Co., Think the firm of c. M. Burkha.- ter Co. is composed of C.. B. Burkhalter and c. M. Burkhalter At the time the contract was entered into John E. Done- son was the president of the Donelson Construction company. Do not know any of the other officers of the company. Do