The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1912-07-09
SENSATIONAL TESTIMONY
in IMPEACHMENT TRIAL
OF JUDGE HANFORD

Opening up the inyestieation o'
Judge Hsnford's alleged judicia
abuse In bankruptcy cases, lnvolv
inc n. A. BalIinger and other prom
inent Seattle attorneys and the
Scandinavian American bank In
what 10 known as the Hickman 4
Hansen Bankruptcy case, JeroId l.
Finch. former deputy prosecuting
attorney. today resumed his sensa
tionsI narrative begun yesterday
afternoon before the congressional
committee.
Ftch's testimony was easily the
mos, sensational yet brought out In
the Harford trial aside from the
testimony given BY Witnesses direct
iy accusing Hanford Of drunken
ness.
Estate Cobbied Up"
Finch testified that In the Heck
man a. Hansen bankruptcy matter
in which he represented clients
whose property WAS worth 500. 600
and against whom there we're only
s23. 600 liabilities. the whole estate
Was allowed by Judge HanfoFd q
be sobled up, According To the wit
ness. Judge Hanford never allowed
him TO present the facts In the case
and the bankruptcy matter was re-
fcrred TO Judge Smith, VINO refused
10 make report on all OF the eYi
dence.
Finch told the congressional com
mlttec that he had personally warn
ed the judge that there was con
apiracy to give the Scandinavian
American bank possession OF the
property involved In the bankruptcy
proceeding. that five creditors with
total claim OF s23. manipuiat
ed the appointment or trustee II
bankruptcy. and that the receives
made a report that there was as
property in the estate, Ia spite d
the fact that IL Was shown by eyi
dsnce that the property was wortf
three times the amount OF the liza
bilitics.
Accuses HalIinqer
Attorney Jerold l.. Finch, contin
ulng his sensational testimony this
morning involving Judge c. H. Han
ford and Former Secretary OF the
Interior X. A. BalilnEer in what he
alleged to be a fraudulent bank
ruptcy proceeding. made the direct
charge that Ballinger. az attorney
Represented both parties IN negotia'
tiona between Hickman & Hanson,
shlpbnIlders. and the Scandinavian
American bank
Finch said that Balllnger nego.
tiated q $4,000 loan as attorney for
Hickman a Hanson. shipbuilders,
from the Scandinavian American
bank. Hickman wanted the loan
for five years az 81 .0o0 and author
izcd Ballinger by power OF attor-
ney to sign such note. Finch said.
Hickman later discovered that Bal
linger signed only a three-months'
note for the money, and while this
matter was being Strengthened out.
said Finch. ,he firm Of Hickman &
Hanson WAS allowed 10 draw on the
bank for repairs 10 steamer
Alice" on which the bank had q
$4,000 mortgage.
BaIlinqer Sued Former Clients
When the bank wanted Hickman
A. Hanson 10 allow II 20 libel the
ship. on some claim. and this was
refused. the bank determined 20
ruin the firm OF Hickman a. Han
son, Finch declared, and Ballinger
threw down his former clients and
appeared as the banks attorney.
Suits we're started by Ballinger 10
recover the $1,000 due on the note.
and some $4,000 or more drawn by
Hickman a Hanson for repairs
on the Alice" but now claimed as
overdrafts on the firms deposits.
Several other suits were started
al the instlgation OF the bank.
Finch alleged. Four garnishmcnts
were sued out and the firms money
tied up where II would cause as
much damage as possible, Finch
testified
Hickman & Hanson, overwhelmed
by multiplicity OF suits agains,
them, secured the services first ol
J. r. Metcalf, former state attorney
general. then c. II. Reynolds. to de
fend against their former attorney
r. A. Ballinger. representing the
bank.
A receiver had been appointed In
the state court. In which Heckmar
agreed 10 handle the business of tn,
firm pending the settlement OF the
number of suits. The receiver
Peter Larson. according to Finch
received $4,000 from the bank. I
transplred. His attorney. Richar,
SAKE Jones. is implicated by Finch
together with Ballinger, Reynolds
and Metcalf