The Montgomery advertiser., 1904-07-14
THE SULLY CASE AGAIN
FRANK H. RAY ON THE WITNESS
 STAND.
The Man Who Creditors of the Cem- pany Say Was a Member of the Dethroned Cotton
 Kings Firm.

New York July 13.-Frank H. Ray, who. creditors of D. J. Sully say. was a partner of Sully, appeared before McCrane & Company, referees, to-day for examination in the hearing in bank ruptcy of the cotton brokerage firm of D. J. Sully & Co. MT. Sully was present when the hearing opened In response to questions from MT. Boothby of counsel for the trustees, MT. Ray said he is vice president of half a dozen affiliated tobacco compa- nies and has known MT. Sully more than a year. Although he was at MT. Sullys office only twice and then in company with David Hawley. he fre- quently met Sully in Hawley's apart ments. He could not remember the office address.
 MT. Ray said he had transactions with D. J. Sully & Co.,, the firm buying and selling cotton futures for him. He communicated with the firm by tele- phone, but never in writing.
 Producing statement of the busi- ness done with Sully and Company, MT Ray was asked concerning an item showing that on March 8, Is, 900 bales of cotton were bought for Joint ac- count of r. II. Ray and Daniel J. Sully." The witness said that was the way Sully kept his books. but that it was wrong. He knew Sully kept the account. but he did not object.
 It was not until after the failure, MT. Ray said, that he noticed that the statement sent to him showed 1t was joint account"
 To other questions by MT. Boothby, MT. Ray said he was always particular about his orders because several oth- CT persons were interested in every deal he made.
 About another transaction MT. Ray said he took half purchase of 6,7O0 bales Sully had made for Hawley and Ray and Sully after MT. Sully had re- pudiated his share. The talk was over the telehpone and MT. Ray explained that he thought MT. Sully said five or seven hundred bales and 1t was not until statement was rendered that he said he noticed the figures were 6,700. The statement was made out as the former statement, joint ac- count No. S."
 Did you see MT. Sully March TYP" asked Mir. Boothby.
 "I did. I rode down as far as II Fifth avenue. my office. in his automo- bile. MT. Hawley was there also"
 Mir Sully's failure was announced March IS.
 What occurred during that rider"
 MT. Sully wanted to buy cotton. He sail he would take 15.000 bales if Mr. Hawlcy would take 15,000."
 Die you buy?"
 MI Hawley said he did not want to buy any moro, but I told him it looked good and we agreed to take 7,500 bales each"
 Was the cotton purchased?"
 MT. sully told me over the phone. thirty thousand bales had been bought. think 1t was part May and part June delivery"
 Nil Ray said he met MT. Sully again early in the evening, adding: Later | in the evening MT Sully came to MT. HaWIeys house where I was and sug- | gested buying more cotton. I told him had enough. He told Mir. Hawley | cotton looked weak and he would need SC me margin Sully said If the mar ket fell a cent s350,000 would be needed to carry 1t. Did MT Sully say he would need | a large amount of money next day%
 T did not hear that; I did not hear him say so.'
 Were there no pap.rs showing the liabilities of the Sully firm?"
 No"
 No statements made? "Only when Mir. sully spoke of mar gin told him to consolidate my ac- counts and he would find margin enough. MT. Hawley said he could take care of his holdings and that he was worth two and a quarter million dol lars
 Next day. the day of the failure, MT