The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1904-04-02
DID SULLY HAVE
ANY PARTNERS
Examination Now Being Held
to Find Out.
&
HAWLEY AND RAY UNDER FIRE
@-
Ex-sEcRETARY ROOT CONDUCT
ING THE INQUIRY.
HAWLEY AND RAY UNDER FIRE

New York, April 1.-The examination
in which Edwin Hawley, president of
the Iowa Central railroad and the Min
neapols & St. Louis railroad. and
Frank Ray. head Of several large to-
bacco companies, the alleged partners
or Daniel j. Sully in his cotton opera
lions, are 10 be questioned. began today
before United States Commissioner Al
eNander. To ascertain fully whether or
not Hawley and Ray were personally
Sully's partners is the object Of the
examination, and Commissioner Alex
ander was appointed by Judge Holt
10 act as a special examiner in the
case.
Receiver Henry w. Taft and David
y. Miller procured the order from
Judge Holt Of the United States dis
7rict court requiring Hawley and Ray
not only to appear today before the
special examiner. but TO take To the
examination room all their books ana
papers that would disclose exactly
what were their relations to Mr.. Sully.
Former Secretary of War Elihu Root
was retained to question Mr.. Hawley
and Mr.. Ray. At the opening of the
examination Commissioner Alexander
ruled that the examination would not
partake of a "litigated proceeding"
Examination Begun.
Mr.. Hawley was then called and his
examination was begun by Mr.. Root.
Just at this time Mr.. Sully entered the
room and took a seat near the lawyers
table.
Mr.. Hawley testified that his business
relations with Sully & Co. began in
December last and ended on March Is.
Mr.. Hawley said he kept no special
record Of his cotton operations. rely
ing chiefly on the statements he re-
ceived from Sully & CO. following a
purchase or sale.
At the request Of Mr.. Root, Haw-
Iey's lawyers produced a batch Of these
statements.
gThey showed that on Dec. T. 1903. TO-
600 bales Of cotton were sold for the
account Of +. Hawley and d. J. Sully
Jointly. and on Dec. %. 1900 bales
were bought and sold for the same ac-
count. There were also similar trans
actions on a smaller scale for Dec "a
and p. and then came a number or
statements Of various dates in January.
al representing heavy transactions in
cotton for Hawley's account Mr. Root
read from statement showing that IN.
one particular transaction Messrs.
Hawley and Sully had divided a profit
OF $50, 400.
Mr.. Root next read from other state
ments bearing February dates MI
Root next read a statement OF cotton
transactions bearing the names or
Hawley, Sully and Ray.
Joint Accountants.
Mr.. Sully. it was brought out. used
TO take his own share of the profits be
fore sending Mr.. Hawley his share.
a number Of Joint three" accounts
CHawley. SuIly and Ray) for the latter
part of February, nearly all represent
inc heavy les vt off hxr
Mr.. Root.
Mr. Hawley said there were other
transactions for Joint three" accounts
dated Feb "a and -, something over
10000 bales. which netted a profit Of
Sl49 Geo. Mr.. Hawley said that he did
not take his profit in these transact
tions. They were credited TO his ac-
count"
\ letter from Hawley to Sully, dated
March is, was read by Mr.. Re :. II
read. IN part:
Il enclose herewith statement of ac-
count. showing, 50 far as my individ-
uaI interest is concerned. a balance due
YOU Of $500. for which I enclose my
check. +. Hawley.
Mr. Hawley said that his check for
amount named was sent to D. J. Suly
& CO.
Mr.. Hawley here made a brief state
mCnt. denying any COpaTtnership with
AIR. Sully. That phase of the exam
ination. Mr.. Root replied, had not yet
been reached.
Thorough Examination.
Before the adjournment Mr.. Dos
passes, Sully's counsel, said
we are vitality interested in this
inquiry. We want the subject opened
very fully. one of the persons whom
1t may be desired to- throw into bank
Tuptcy lives in New Orleans
Replying To this. Mr.. Root said:
we Will be glad TO receive any sug-
Eestions or advice looking 10 a
thorough examination"
Addressing Commissioner Alexander.
Lawyer Davies said for Hawley and
Ray:
You viii find our side ready at any
time. We are prepared TO proceed at
any time. We desire to facilitate the
examination in every way"
It was then decided to adjourn until
next Thursday.
Roughly estimated. Mr. Hawleys
profits i'm the numerous accounts. as
brought out by Mr.. Root appropriated
$3.50. 600. Apparently his first serious
loss was just before the suspension Of
Sully & Co. was shown by his letter Of
March is. enclosing a check for $50 42O
10 that firm. Just before the close of
the examination Mr. Root submitted
but failed to make public, a letter sup
posed 70 contain the names of three
persons not heretofore mentioned as
participants in one or more of the
Jiawley- Sully pools. The identity of
these persons. one Of whom was said
10 be a woman, could not be asCer-
tanned.