New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-03-27
NAY SUE HAWLEY AND RAY
DUMPED HIN, SAYS SULLY.
Not Backers;; Only Customers and
Broker, They Declare.

Declaring that Edwin Hawley and Frank H
Ray were the only members OF his latest cotton
pool Daniel J. SulIy yesterday afternoon met
committee Of his creditors and practically threw
himself on their mercy. promising to stand BY
the creditors TO the point OF bringing suits
against Hawley and Ray for their share of his
losses. In order 10 place himself in a position
70 bring the suits. sully employed a new coun-
sci, John r. Dos Passos
The committee Of creditors met suliv IN the
office OF Reinhard Seidenburg. IN the Cotton rsx-
change Building. at 3 ?. N. Ia addition TO SIR
Seidenburg other members OF the committee
present were J. Temple Gwathney. Edward
Shearson, G. a. Chaplin and b. s Clark. suIIv
told the committee that IIawley and Raw were
partners with him in the cotton pool and that
they were interested with him in the deals with
the understanding that they were 10 share I'm
the profits. but when the tide turned the vvrore
way they dumped" him and left him TO bear
the losses alone He declared that he would
bring suits to make them pay their share Of the
losses. and would give all he had IN the world
to the receivers in order to settle all the claims
OF the creditors.
MR. DOS PAssOs AMAZED
Before ard after the meeting Of sullv with
the committee Of creditoru. Mr.. Dos Passos
talked with Suiy and with members Of his firm
about the situation. Late in the afternoon Mr..
Dos Passos said:
g. have had several hours. conversation with Mr..
Sully and witnesses. and confess being per
fectly amazed NJ the situation disclosed The fail
witnesses have impaired to us are correct. was
entirely unnecessary. and brought about by d-
dence presented ihoI WeTc raTtTeg N fc f '' and in
Mr. Suy in protecting the Interests which they
were carrying together. As Mr. Sully claims. in
stead Of advancing the money which they agreed
TO- they shufed of and avaded their respons-
for Mr. sully resist the which swept through
Mr. suIy actne uhde- @ or adrce bS ei5cdj j
himself in Close connection with his creditors and
fSes c are isb 5r for & ma 20 ,ie pay an InT[ "hh ,
diminution in any Indebtedness which he is re-
5ss Which S We We have ADVISED Gn HIN he 20 is H6t 5onad ma
TO meet. There are very many questions Of law
which It would De inopportune and indelicate 20
viii make some reasonabe ar~angement Win Mr.
Sully and restore him TO position where he can
created by proceedings in involuntary bankruptcy.
late in the afternoon. Henry, W Taft. one Of
the receivers Of Daniel J. Sully & Co.. said he
knew OF no agreement for a settlement between
Sully and his creditors. He had been informed
at that time of the meeting Of Sully with the
committee OF creditors. Mr.. Taft added
So far as our Investigations have gone to date
they show that the relations between Mr.. Suly's
firm and Messrs. Hawley and Ray may be de-
fcrbed establishing Joint accounts. These rea-
uons do not appear fully from the entries In the
books Of d. J. Suuy x Co. Persons familiar with
the terms OF the arrangement under which the
joint account conducted will ultimately have
TO be examined determine the conditions OF the
agreement The receivers have already obtained
statements from parties familiar with the facts.
a-d are still pursuing their investigations.
There is a regular course which must be pursued
iu establishing any claim growing out OF the pool
or Joint accounts. II is this: When Suly & Co
have been adjudged bankrupts and ana trustees & nave
the trustees TO proceed under the direction OF the
district court institute suits against any parties
liable This suit viii have 10 be prosecuted in the
III IL is necessary fo- the trustees 10 supplement
their Investigations by a formal examination Ct
witnesses they may obtain the power 70 conduct
such an examination through an order or the court
No creditor proceed by independent action 10
under a provision OF the bankrupt law the court
may in ts discretion. authorize an individual cred
itor institute an inquiry upon MS own account
T'he Information thus obtained by him, however.
could only availed OF in suit instituted by the
trustees Presumably the trustees. when they are
appointed will take all necessary steps. by all
means Afforded by the bankrupt law, 10 obtain the
information necessary 20 collect claims due the
estate 80 -. -. ~.
ia vylev and Ray. IL may be proper 10 say that We
understand the contention Cf these gentlemen To
be that the 18th inst. the day q Mr. Sullys
the latter agreed 70 take o.er the IN
fer.sts Of Messrs Hawiey and RAY in the fc Int
accounts Under this agreement M t1aW!ey ira =
,ritts5 a check 20 Nfessrs. Sully Co. for the
stantialiy fact the interesting question arises
a E 10 whether. n time when insolvency was I'm
coi,iS IpsEe an Ggretnent with M Sully 10 close
the accounts which would be binding upon the trus
Coots,-.T IN e..E psrn L