The Washington times., 1912-07-11
LAWYER TEST|F|ES
BALL|NGER HELPED
TO RUIN PARTNERS
Scathing Denouncement Of
Former Secretary BY
Seattle Attorney.

SEATTLE, July 11.--Robert M. Hop
kins. clerk of Federal Judge c. H.
Hanford, was sentenced to two years
In prison yesterday for the embezzle-
ment of court funds. About the same
time the Congressional Committee in
vestigating impeachment charges
brought against Hanford listened to
scathing announcement of Richard A.
Ballinger. former Secretary of the In
terror, by Jerold A. Finch, a lawyer of
tl'6 city.
Flch, who was formerly deputy
0'0s. .cuting attorney, declared that
taotord and Ballinger, with others,
BHpired to throw a shipbuilding firm
into the hands of a receiver and sue
ps=1ed. One of the partners of the
coacern, Finch alleges, they drove to
IN insane asylum and the other is dead
e,tc' being stripped of every dollar by
"I.Anger and Hantord.
IL was a tale of duplicity of Bal
nnger, as lawyer and Hanford as a
Finch started to leli on the stand.
Mercilessly Cross-examined.
All day he was either giving his tes-
timony or was being mercilessly cross
examined by the best lawyers of the
State, who endeavored to break down
-
sf Hickman & Hanson, shipbuilders.
Finch says he has nothing to lose
by telling the story, as he has retired
from the practice of law and Is de-
voting his time now to his mining in
terests.
With Hanford and Ballinger in the
conspiracy, tlnch says, was Ed Ohil-
berg, chief officer OF the Scandinavian
American. Bank, Of Seattle. The firm
was wrecked, 1t is alleged, at the d.
iS in
Europe. Chilberg was involved in the
Alaska coal fraud cases through the Pc
culiar litigation in Judge hanford' S
cout.
Finch says that ten years ago Bal
niger was the attorney OF the Scandi-
naVian-American Bank. Hickman d.
hanson were shipbuilders, ana needed
so,OW. This, he says, they We're in
duced by Balllnger, who became their
attorney. to borrow from the bank.
They believed they were getting the
meney Tor five years TO be paid back
kl,ooo year. ana power OF attorney
close the deal. Acting under this
power of attorney, he declares Ballinger
signed a note Tor ninety days and then
gave as security for 1t a mortgage on
at 10000.
The first the shipbuilders knew of
the transaction was when payment of
the note was demanded. Ballinger then
that as the attorney for the bank, 1t
would be his duty to foreclose.
In this emergency. Finch says, the
shipbuilders engaged James b. Met
'cair and c. E. reynolds as attorneys.
,l1e charges that Ballinger and the
Others Conspired with these attorneys
TO wreck the firm and seize the prop
erty.
- Inc records produced. by Finch show
that a. friendly receiver was appointed.
i hen from Ba1lingers law oInce five
clerks appeared as dummy creditors.
Their claims, amounting in all to but
S2S were used to obtain from Judge
Aanford an order for tinal distribution.
Had No Bearing
The record produced showed that no.
where had a debt been filed, judg-
ment obtained against the co-partner-
ship or that they ever had had hear
ing in any court in any matter relating
to the proceedings whereby their busi-
Finch explained, as the. committee
sat dumfounded, how the records
were prepared and the details fixed
He told how, when he had filed charges
with Hanford against Balhnger and
the other attorneys. the judge exoner'
ated the lawyers and threatened tc
have him disbarred for daring to file
charges against such prominent at
torneys.
Listening to this testimony were
both Ballinger and Hanford. Some OF
the leading lawyers of the Northwest
protested against its admission, and ir
their cross-examination they tried tC
shake Finch's testimony, but he re.
fused to take back anything he said.
An attorney himself, he stated his
case as one versed in law, and wher
records were needed to Substantial
his statements he produced them. The
production of records was as startling
as the testimony itself
Ballinger at the close of the day de-
clared that Congressman Graham, o.
the committee, was endeavoring t
blacken his reputation, to disgrace anC
drive him from his home city of Seattle
aS he did from Washington. Graham
says he will follow every trail that in
eliminates Hanford, no matter where /
leads or how high the person stands
who Is besmirched.