The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1904-07-15
HEARING IN SULLY CASE.
Frank HI. Ray Examined as TO His
Connection With SplIy In Any Of
His Cotton Dealings.

New York, July 13.-Frank II. Ray,
who. creditors Of Daniel J. Suily allege.
was a partner of Sully, was before
McGrane Cox, referee. today for exam
ination in the hearing in bankruptcy
of the cotton brokerage firm Of D. j.
Sully and Company. Mr.. Sully was
present when the hearing opened.
In response TO questions from Mr..
Boothby, of counsel for the trustees,
Mr.. Ray said he is vice-president of
the half a dozen affiliated tobacco COM
panies. and has known Mr.. Sully more
than a year. He was at Mr.. Sully's
office but twice and with Daniel Haw-
ley. He could not remember the office
address.
Mr.. Ray said he had transactions
with D. ]. Sully and Company, the
firm buying and selling cotton futures
for him. He communicated with the
firm by telephone but never in writing.
and met Mr.. Sully at the Waldorf. Mr..
Ray said he frequently met Mr.. Sully
in Mr.. Hawley's apartments
Producing a statement of the busi-
ness done with Su!ly and Company,
Mr.. Ray was asked concerning an item
showing that on March Sth $1,000
bales of cotton were brought for Joint
account of F. H. Ray and Daniel -.
Sully." The witness said that was the
way Sully kept his books. but that it
was wrong. He knew Sully kept the
account that way, but he did not OBJ
ject.
1t was not until after the failure,
Mr.. Ray said. that he noticed that the
statement sent to him showed it was
for Joint account" To other questions
by Mr.. Boothby. Mr.. Ray said he was
always particular about his orders, be-
cause several other persons were III
terested in every deal he made.
About another transaction. Mr.. Ray
said he took half a purchase of 6,70U
bales Sully had made for Haw1ey anG
Ray, and Sully, after Mr.. Hawley, nao
repudiated his share. The talk was
over the telephone and Mr. Ray ex-
planned that he thought Mr. Sully said
five or seven hundred bales and it
was not until a statement was render
ed that he saw the figures were $780,
The statement was made out as the
former statement was made out as the
No. S2."
Did you see Mr. Sully on March
i ?" asked Mr.. Boothby.
Il did. / rode down as far as III
Fifth avenue, my office, in his automC-
bile; Mr.. Hawley was there Also
Mr.. Sully's failure announced on
March 18th.
What occurred during that ride 2"
Mr. Sully wanted to buy cotton. He
said he would take 900 bales, if
Mr.. Hawley and I would take 5,000.'
Did you buy?"
Mr.. Hawley said he did not want
to buy any more. but I told him It
looked good to me, and we agreed to
take $500 bales each.'
Was the cotton purchased?"
Mr.. Sully told me over the phone
that 10000 bales had been bought. 1
think it was part May and part July
delivery
Mr.. Ray said he met Mr.. Sully again
early in the evening, adding: Later u,
the evening, Mr.. Sully came to Mr..
Hawley's house, where I was. and sug-
gested buying more cotton. I told
him 1 had enough. He told Mr.. Haw-
ley cotton looked weak, and he would
| need some margin. Sully said if the
market fell a cent. s350,000 would be
needed to carry it,
Did Mr.. Sully say he would need
| a large amount of money next day?'
Il did not hear him say So
Were there no papers showing the
| liabilities of the Sully FIRM"
| No
No statements made?''
| Only when Mr.. Sully spoke of mar
gin, I told him to consolidate my ac-
counts, and he would find margin
enough Mr.. Hawley said he could
take care of his holdings, and that ne
was worth two and a quarter million
| dollars"
Next day, the day Of the failure. Mr.
Sully called at Mr. Hawley's house,
where Mr.. Ray had slept, and drove
him and Mr.. Hawley down town in
his automobile.
What did you talk about?"
| I'VE told Mr.. Sully we had made
up our minds to sell our cotton. Sulfy
| wanted to know what we meant. and
Mr.. Hawley told him We had decided
| to sell the cotton. but if he did not
want to sell it. he could buy it. All
| right he replied, after a moments
thought, TIL take it. We left him al
the Waldorf. and as we left I said. 4
understand you take all my cotton;
and he said, That's it."
Did you sell any cotton that day?'
Yes, L sold through a broker 5000
| bales. I was long $500 or 5000 bales
in another office than Sully's."
Mr.. Ray could not say at what price
| he covered himself. The hearing was
adjourned at this point until July q
| A NOTABUE OCCASION.
Il ~ (NH.- ~ g.