The Montgomery advertiser., 1904-04-02
PARTNERS OF SULLY
OF ACCOUNTS
 OF THE Ex-KING.
Books Show the Names of Hawley and Ray-Former Goes on
 the Stand Before Examiner.

Examiner.
 New York. April 1.-The examination
 in Which Edwin Hawley, the president
 of the Iowa Central railroad, and the
 Minneapolis and St. Louis railroad, and
 Frank Ray. head of the largest tobacco
 companies the alleged partner of Dan
 iel J. Sully in his cotton operations, are to
 be questioned, begun today before United
 Staes Commissioner Alexander.
 To ascertain fully wheteher or not
 Hawley and Ray were practically Sully
 partners is the object of the examination
 and Commissioner Alexander was appoin-
 ted by Judge Holt to act as a special ex-
 amner in the case.
 Receivers Henry W. Taft and David H.
 Miller procured the order from Judge
 Holt. of the United States district court,
 requiring Hawley and Ray not only to
 appear today before the special examiner
 but to take to the examination room all
 their books and papers that would dis
 close what were their relations to MT.
 Sully.
 Former Secretary of War Elihu Root was retained to question Mir Hawley and MT Ray. At the opening of the exami- nation Mir. Alexander ruled that the ex- animation would not partake of a litigated proceeding
 Mir Hawfey was then calico and his ex- animation waR begun by Mir. Root. Just at this time Mir Sully entered the room and took a seat near the lawyers table
 Mir. Hawley gave his occupation as that of railroad officer and on further ques- tioning stated that he is now President oi the Iowa Central and Minneapolis and s. Louis railways and partner in the stock exchange firm of Hawley and Da- wis. He testified that his business rela- tions with Sully & Co, began in De- ceniber last and ended March IS.
 MT. Hawley's testimony did not pro- ceed very far before his counsel MT. Da- wis took exception to MT. Roots line of examination. MT. Davis declared, how ever. that his client had nothing to con cea. and would answer all questions touching on his relations with Sully & Co.,. or Mir. Sully personally. MT flaw ley said he kept no special record of his cotton operations. relying chiefly on the statements he received from Sully & Co.,, a purchase or sale.
 At the request of MT. Root Hawley's lawyer produced batch of these state | ments. They showed that on December 4. 1903. 10000 bales of cotton were bought | and sold for account of F.. Hawley and D. J. Sully, jointly. on December 13, 1,9Oc | bales bought and sold for same account | HeT6 were dISO SlNllidE tTdnSdCllOIS on l a smaller scale for December g and 27. | and then came a number of statements l of various dates in January. all repre- senting heavy transactions in cotton for | account MT. Root read state 1 ment that in one particular transaction l Messrs. Hawley and Sully had divided a | profit of $9O. 40.
 MT. Root read from other statements | bearing February dates These purchases | or sales ran from a few hundred bales of cotton tip to almost 100000 bales MT. | Root next read from a long slip of pa per a statement of cotton transactions | bearing the names of Messrs HawIey | and Sully and Ray. He wanted to know | whether or not if this paper represented | the joint transactions of the parties | but MT. Hawley said he did not | know.
 Mir. Sully 1t was brought out used to | take his own share of the profits before | sending MT. Hawley his share.
 A number of joint three accounts | (Hawley, Sully and Ray) for the latter | part of February, nearly all representing | heavy sales. were next read off by Mir. | Root.
 Hawleys lawyers had in court some half dozen packages containing the of the transactions between 5ully & Co.,, and Messrs. Hawley and | Ray. Another package was reported to be missing. .-
 Mir Hawley said there were other for joint three" accounts lated February 24 and 27. something over 10 GOO bales which netted a profit of $149,- O0. MT Hawley said he did not take his profit in these transactions. They were credited to his account"
 Next came another three" account. showing these purchases of cotton. March 3, 25,000 bales; March 1, 10,400; | March '. 14,6O0 and March g, 700 bales.
 It developed during the examination that the first transaction MT. Hawley had with MT. Sully was in September, 1903. when he loaned Sully individually | 5700,O0O on securities.
 A letter from Hawley to Sully dated March IS, was read by Mir Root. It read in part;
 T enclose withwith a statement of the account showing. so far as my individual interest Is concerned. a balance due you of $S2 42O. for which l enclose my check.
 (Signed) 'E Hawley."
 MT. Hawley said his check for the amount named was sent to D. J. Sully & Go. It developed that in one of the joint three' accounts known as No. 5, Sully had a 50 per cent interest while that of Flaw lev and Ray was 25 per cent each. MT. Hawley here made a brief statement de- nving any co-partnership with MT. Sully. That phase of the examination, MT Root replied. had not yet been reached.
 Mr. Hawley said that much correspond ence had passed between him and Mir. sulIv from September l5. 1908. to March 20th' last. He had also seen Mir. Sully very frequently between December and | March. MT. Root read from the seventh and last batch of statements and other all of which referred to pool operations.
 His check was not produced. Ills coun- | sel promised to submit it at the next examination