The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-03-27
Is Alleged That Hawley
Shirked Responsibility
UNTIL TWAS TOO LATE
Statement OF SuIIy and His Counsel
Hawiey Claims No Relations Ex-
listed Between SuIIy and His
Firm Except Customer
and Broker.
(By the Associated Press.)

New York. March 26.-Daniel j. Sully,
that acting on the advice of friend he
had secured persona lcounsel to whom the
prosecution of suit against Edwin Haw-
ley could not be in any sense di5tasteful
John r. Dos Passos is the attorney Sc
lected by Mr. SulIy Edwin Hawley IS
president of the Iowa Central and Mime
apolis and St Louis Railroads and is
one OF the capitalists whose names have
been mentioned recently as the hackers
of the Suily bull campaign. Mr.. Sully
gave out a formal statement setting forth
his reasons for securing personal coun-
sci. Mr.. Hawley also gave out a state
ment, in which he declared that no rela-
tons existed between himself and Mr..
Sully's firm other than those OF customer
and broker.
Mr. Sullys statement reads as follows:
Previous to my suspension, M. Clutch
con, of Hornblower, Byrne, Miller & Pot
ter, had at various times since had been
doing business in New York, acted Tor
ne in several legal matters. | know that
he and his firm had also acted in various
matters for Mr.. Hawley. When was sus-
pended l consulted with Mr.. Cutcheon.
He had no knowledge at that time of any
possible conflict between the interests OF
Mr.. Hawley and myself. When it ap-
peared that there might be such con-
tiict he asked to be released from acting
for my firm or me. and 1 insisted on MS
remaining as our legal adviser and after
consulting his partners and in view of the
exigencies of my situation he consented to
do so. Neither he nor his firm have ever
acted for Mr. Hawley in connection with
any Of the matters over which conflict
may arise, nor been under any general re-
tanner by Mr. Hawley or his interests,
and there was no reason why they should
not act for me.
81 amperfectly satisfied that their en-
tire action has been with a view solely to
the interests of myself and my firm and
my creditors.
"a friend whose advice l feel it wise to
accept has, however, suggested that lem
ploy in addition to Hornblower. Byrne,
Miller & Cutcheon other personal coun-
sci, to whom the prosecution of a suit
against Mr.. Hawley could not be in any
sense distasteful."
Mr.. Hawley's statement is as follows
No relations existed between Mr.. Sui
ly's firm and myself other than those of
customer and broker. The cotton held
for my account by the firm which mad
originally purchased it was disposed OF
by my direction through that firm as q
business transaction without any collater-
al condition or consideration whatever.
TIL, account was therefore adjusted, liqui-
dated and closed out. / exercised my
judgment as to the sale precisely as /
had done as to the purchase. Any Sug-
Gcstion to the contrary Is without foun-
dation of fact. / make this statement
with reluctance, and only at the sug-
gestio nOf some friends of mine who have
urged me in this instance to depart from
the course Of silence and indifference
with which 1 should otherwise have treat
ell the publication.
brief statement was made by Mr.
Frank III. Ray, in which he said that Mr.
Hawley's statement applied to his, Ray
case
John r. Dos Passos who has been re
tziped for the firm OF Daniel j. Sully
and Company, gave out the following
statement this afternoon:
Il have had several hours conversation
with Mr. Sully and witnesses and / con
TESS to being perfectly amazed at the sit
uation disclosed. The failure of Mr.. Sully
Is The facts which he and his witnesses
have impaired to us are correct, was en-
tirel unnecessary, and brought about by
a direct breach of agreement between him
self and Messrs. Hawley and Ray. Ac
e,ording to the evidence presented, they
were partners in fact and in law and were
consequently as much interested as Mr.
Suly in protecting the interests which
they were carrying together. AS Mr.. Sui
by claims, instead of advancing the money
which they agreed to, they shuffied of
and eyaded their responsibility by ambig
cuous responses until it was too late fol
Mr. Sully to resist the tide which swept
through the cotton market and temporar
sly engulfed it. Mr.. Suly
acting under our advice has placed him
self in close connection with his creditor,
and proposes to cooperate with them in
compelling Hawley and Ray to pay al
money which they are liable for under
the circumstances disclosed to us. Mr.. Sui.
Nv does not ask for any diminution in
any ondebtedness which he is responsible
for. IN fact he is, willing to assume La
Utilities which we have advised him he i:
NOT bound to meet. We hope that the
creditors will make some reasonable ar
arrangement with Mr.. Sully and restore
hin, to q position where he can act with
out load upon his shoulders such a,
created by proceedings in involuntor,
bankruptcy"