The Savannah morning news. (Savannah, Ga.) 1900-current, 1904-04-02
HAWLEY AND RAY
IN WITH SULLY
DIVIDED UP ON DEALS
U1-T HAWLEY SAYS THERE WAS NO
CoPARTNERSHIP.


Submitted, Showing the Opera
.,ous i'm Cotton in Which SuIly,
Hny,Iey and Ray Had Taken Part.
Nice Profits shown i'm some.
New York. April 1.-The examina-
+ion in which Edwin Hawley, the pres
ident of the Iowa Central Railroad and
the Minneapolis, and St. Louis Rail-
yav and Frank P. Ray. head of sew
eral large tobacco companies, the al
legged partners of Daniel j. Sully in
his cotton operations, are to be ques-
toned, began to-day before United
States Commissioner Alexander.
To ascertain fully whether or not
Hawley and Ray were practically Sui
ly's partners is the object of the ex
animation, and Commissioner Alexan-
der was appointed by Judge Holt to
act as a special examiner in the case.
Receivers Henry w. Taft and David
II. Miller procured the order from
Judge Holt of the United States Dis
trict Court, requiring Hawley and Ray
not only to appear to-day before the
special examiner, but to take to the
examination room all their books and
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.
SuIIy Was Present.
At the opening of the examination
Commissioner Alexander ruled that the
examination would not partake of
Obligated proceeding" Mr.. Hawley
was then called and his examination
was begun by Mr.. Root. Just at this
time Mr. SulIy entered the room and
took seat near the lawyers table.
Mr.. Hawley testified that his busi-
ness relations with Sully began in De-
cember last and ended on March Is.
Mr.. Hawleys testimony did not pro-
Ceed very far before his counsel, Mr..
Davis, took exception to Mr.. Roots
line of examination. Mr.. Davis de-
clared, however. that his client had
nothing to conceal and would answer
all questions touching upon his rela-
tions with Sully & Co., or Mr.. Sully
personally. Mr.. Hawley said he kept
no special record of his cotton opera
tions, relying chiefly on the statement
he received from Sully & Co., follow
q ing a purchase or sale.
Deals in Cotton.
At the request of Mr.. Root, Mr.. Haw-
~lsRas lawyers produced a batch of these
statements. They showed that on Dec.
4, 1903, 10000 bales of cotton We're
bought and sold for account of L.
Hawley and D. ]. Sully, jointly; on
Dec. %, 1900 bales bought and sold
for same account. There were also
similar transactions on a smaller scale
for Dec. "a and Dec. q, and then came
a number of statements of various
dates in January, all representing heavy
transactions in cotton for Hawley's
account. Mr.. Root read from a state
hot in nran nr-tin n
transaction Messrs. Hawley and Sully
had divided a profit of $50, ,440.
Mr.. Root read from other statements
bearing different dates. In these trans
actions purchases or sales ran from
few hundred bales of cotton up to al
most 10000 bales.
Mr.. Root next read from a long slip
OF paper statement of cotton trans
actions bearing the names of Messrs.
HaWley, Sully and Ray. He wanted to
known whether or not this paper repre-
sented the joint transactions of the
parties named, but Mr.. Hawley said he
did not know.
Mr.. Sully, it was brought out, used
TO take his own share of profits before
sending Mr.. Hawley his share.
In "JOint Three" Operations.
A number of 'joint three" accounts
(Hawley, Sully and Ray), for the lat
Ter part of February, nearly all repre-
senting heavy sales, were next read off
by Mr.. Root.
Hawleys lawyers had in court some
half dozen packages containing the
memoranda of the transactions be-
tween Sully & Co., and Messrs. Haw-
ley and Ray. Another package was
reported to be missing.
Mr.. Hawley said there were other
transactions for "joint three" accounts,
dated Feb. "a and Feb. 27, something
over 10000 bales, which netted a profit
Of Sl49,00O. Mr.. Hawley said that he
did not take his profit in these trans
actions They were credited to his
account"
Next came another Joint three" ac-
count, showing these purchases of cot
ton-March 8, $4,000 bales; March 4, 10,-
4OO; March z, 1860, and March 8, 700
bales.
1t developed during the examination
mat the first transaction Mr.. Hawley
mad with Mr.. Sully was in September,
1903, when he loaned Sully individually
100000 on securities.
letter from Hawley to Sully. dated
march lS, was read by Mr.. Root. 1t
read in part:
i enclose herewith statement of ac-
count, showing, so far as my, individ-
ual interest is concerned, a balance due
you of 2.420, for which l enclose my
check
(Signed.) "E Hawley."
Mr.. Hawley said that his check for
me amount named was sent to d, j.
Sully & Co.
SuIIy Had the Long End.
1t developed that in one of the
JOINT three" accounts, known as No.
o Sully had a 50 per cent. interest
while that of Hawley and Ray was
- per cent. each.
Mr.. Hawley here made a brief state
ment, denying any co-partnership
with Mr.. Sully. That phase of the
examination, Mr.. Root replied, had
not yet been reached.
Mr. Hawley said that much corre-
pondence had passed between him
nd Sully from September, 1903, to
larch 20, last. He had also seen
r. Sully frequently between Decem-
r and March.
Mr.. Root read from the seventh and
lit batch of statements and other
Rmoranda. all of which referred to
p)l, operations. Hawleys check book
VS. asked for, but was not produced
counsel promised TO submit ii at
IN next examination.
>, afore the adjournment Mr.. Dos
1tsos, Sully's counsel, said: we are
VIuly interested in this inquiry. We
vat the subject opened very fully"
tplying to this, Mr.. Root said
e will be glad to receive any
nussstions or advice looking to a
'eEthorough examination"