New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-03-29
GIFTS LOOSE FROM HAWLEY
.SULLY OFFERS CLAIMS.
Clears Way for Creditors SHits
Against Pool Partners.

urOnOalLlDn Apl % H'-N--
creditors OF Daniel J. sully & Co was maze %
!. oo-,r,frree OF the creditors late yesterday az
-.-,,on Ike suHy's first offer. made inlIne-
6is,erv after his suspension. IL contains proNls-
to- FOR having 40 per cent in cash ana the re-
,,airde- Of the claims in notes, but IL also
makes provision for turning over 10 tne cieo
sto-s q 4 right title and interest 81 the nfl' al-
81 eullv individually. in the claims against S--
,,r F4awlev and Frank II. Ray. members OF
SuIly's cotton pools
su,v's first offer for a settlement was reJec'-
- a. the creditors because they wanted 70 get
A. the other members OF Suny's pools Inc
offer made yesterday afternoon is hEely 20 De
soce,-ea while the committee OF creditors
-o,,l5 not agree 10 the proposition because OF
lack Of power 10 speak for all the cTeoiOois'
r-eDarations were made for a meeting OF most
OF the creditors to-day, with the expectation ta'
tbe-A viii be a settlement. and that suy VIII be
able 10 resume operations Whlie su''s aie
pressed against Hawley and Ray.
e,,rl,y met the creditors committee yesterday
a., +be office OF Reinhold Seidenburg, on the fifth
aoor OF the Cotton Exchange. soon after 3 p. m
Others members OF the committee, IN aooluoh
10 M Seidenburg. who were present were D
Tennple Gwathrney. Edward Shearson' .. A
C~osrl,n and 3. S. Clark sully was accompanied
10 the conference by his counsel John X DOS
T7assos II was about O'Clock when Suly ano
hts counsel left the meeting room. They went
20 the Office OF Mr.. Dos Psssos who little later
,,s.zs ont the following formal statement Of the
proposition:
NR. DOS PAssos's STATEMENT
Mr.. Dos Passes. counsel for NJ. suIy, appeared
hsfore q COMMITTEES OF creditors on the cotton EN-
change this afternoon; alI Sg $780, stated ir be-
bslf OF M sully. that the latter ceslTel 70 nave
he AUTHORIZED a proposition 10 his creditors or =
per cent cash. payable within thirty GayS, - -
2 vrrf ,rrr In
TWO and three years In addition 70 ne ABOVE, rs
proposeo 10 TssSslsH .-est ~ The arm Of D j.
suIlv a Co and d !. sully individually, IA ne
lev an6 Raw arising out OF their Joint traIsaotios
a. os PaSsos eTpiained that y the matter were
allowed 10 nun along for an indefinite Tune li!e
tered away by al KINDS OF expenses. elG - 1rsirs
appeared before the committee 70 naNe I - 1rbcb
Involved economy and promptness. -, -
Ihe conRltes ne b bt pfev agreed Immediately
10 confer with the receivers ana with ne CIe1..L
OF - ~ scf mon the proposition The situa-
tior ct the present time IS that II the oooS 81 III
creditors agree Mr.. sullys propositlon ne VII
be enabled 10 resume his business within me very
The committee Of creditors. after the depart
We OF sully and his counsel went 20 the offices
OF the sulIy firm and had conference lasting
more than an hour with the receivers Henry
w. Taft and David Miller. The receivers ana
members OF the committee refused 70 talk later
about SuIly's latest offer or 10 Indicate IN any
way what the probable action on II by the creol-
tors might be. but Il was known that arrange
,,enrs for a general meeting OF the creditors had
been made for to-day. and that the committee
win lay before the creditors with the offer for
a settlement considerable information obtained
from the receivers regarding the extent OF the
assets Of y. J. Suly & Co and the interest
which FIavley ana Ray had IN Sully's pools.
There is reason to say that the assets disoov-
cred by thu receivers. including Suily's indi-
Nidual property. amount TO more than SLlOoeo1
This sum does not include the claims against
EIawley and Ray. who are said TO have been IN
terested with Sully IN four Joint accounts. or
roolg for buuing cotton at the time OF the fail
ure. Mr.. Taft said yesterday that these pools
were stin open when the crash came, although
HaWley and Ray have declared that they were
operating only as customers OF the firm OF =. J.
suIlv & Co In one sense, oIr. Taft said yester-
dsv. they were customers OF the firm. but the
books show that they also were operating in the
3oint accounts with Sully. through the Arm OF
D. J. sully & CO. the brokers. While the con-
tracts for cotton were made by the firm. there
fore, they were made for Suuy. Havley and Ray
IS pool menbers-
Mr.. UNTERMYERs PLAN.
A plan FOR getting al Hawley and Ray in bank
ruptcy proceedings was put forward yesterday
by Samuel Unterrnyer who had been in consul
tation with some OF the creditors as their coun-
sci. Mr.. Untermyer said:
Prom the investigation I have been able 70
make / am fully convinced that the Hawley-Ray
Sullv pool constituted IN law a partnership. Pro-
oee5tras viii be begun to establish their liability
as partners the creditors who furnished the cot
ton for which they had not been paid The at
ne knew Sully was IL difficulties and on the eve
OF the failure was a farce-they could not escape
liability BY any such transparent device.
Mr. T-nterrnver's statement is correct" M
Dos Passos said. The question OF throwing this
cotton partnership into bankruptcy has been dis
ouEsed. and that action VIII be taken II a salts
factory settlement with the creditors is not
made
II was said yesterday that on the day OF
sully's failure Hawley sent TO the ONCE Of d J.
suIly & CO. a check for $4,000. accompanied by
a letter stating that the check was to psy his
losses in a 3oint account from which he wished
&C withdraw. The check not used 4 is said.
because Il got TO the Office OF the firm after the
suspension Of sully had been announced, and il
remains IN the possession OF the receivers along
with the letter. proof OF Hawley's connection
with the pool.
With the apparent intention OF paving the way
for resuming operations as a broker in the Cot
ton Exchange, ID. SulLy yesterday sent to the
exchange formal notice that his affairs were
sn the hands OF receivers and that he un-
able. therefore, 10 file with the officials Of the
exchange a statement OF his affairs before they
we're determined by the receivers. The notice. it
was said. would operate TO restore Sully 10 men,
bership after q settlement
COTTON SPINNERS JOIN FORCES.