New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-05-18
!SULLY IN NEW VENTURE'
Tells at Hearing of Interest IN +.
". ReynOldS s Co.

AT the hearing in the Daniel J. sully & Co. bank
,-uptcy proceedings. which was resumed yesterday
before the referee, Macgrane Coke, by order from
Judre Holt Nj Sully was examined in connectlol
,n5tb the account of Frederick Zerega q Co. OF
15verpooI He said the account in the ledger rep
resented dealings in futures Tor Harris Di'eS q
Co as customers. and that the dealings were III
,be name of Sully & Co He said he had per
konaI account with the Liverpool firm, but ne oIu
not recall any other future dealings
1.-The spot cotton transact iOns, said the witness
.'yvith zerega & Co.. previous to 1901 were on my
z,ersonal account except in cases such as lnat VI
Harris Gates q Co After January - -
dealings were for F. w Reynolds Co. through
Suuy & Co. Sully & co. in turn bought throuSh
George H McFadden & Bro. The McFadden
firm took the Liverpool cotton on CONSIGNMENT ana
advanced the money Daniel J. Sully q Co
Ibid Won get a check for sl94 900 about the time
Won delivered cotton TO McFaddenE asked 1ohh
W Boothby. counsel for the receivers
Il do not recall receiving it. but my books VIII
show il. My cash book ought to tell
Odd you or any member Of your f i'm o notify
Zereca A Co. 10 sell that cotton-the $ls4V" a.
count? A-Ao SIR V NJ R thg & CO noti-
5cd Zereca & Co through the latter,s agents Nc NC
Fadden & Bro, not TO sell It o nfrea IN
futures If it done it was against me ~lshTS
suliy & Co. excepting the equity OF r w Reynolds
oDo you know 2sr OF sur o nF0u Know Of such
p suit; do not know the status Of it.
John McFadden told on the morning fol-
lowing my suspensian that Zerega co. had sold
the futures" said the witness. He showed me d
cable dispatch or a copy Of one McFadden or
dered the sale. 1t was OF futures had open with
McFadden."
Mr.. sulIy said that three weeks ago he had been
succeeded by David NJ Thompson as president OF
the F W. Reynolds & Co. The company is CAPT
talized. he said at S25oON. all paid in lie holds
5000 OF the stock.
Not as part of the record, Mr. Taft said the
witness was 20 have given his stock certificate to
the receivers, but had not done Mr. .Sully
trstled up at this and said he supposed the recev-
ers had the certificate. He assured his in
tegrity in the matter not questioned, and then
said II the certificate in his possession. the
receivers should have IT.
Mr. sully said the stockholders Of F. W. Reyn-
olds & Co, OF Providence. were his father-in-law,
David NJ. Thompson, the president; Mrs. Sully, Ed
win Hadley, 5r. OF the firm of Daniel J. Suly &
Co: F. ". Reynolds and some Of the employees.
lie said Mrs. sully owned s2ls.0oO OF the F. w.
Reynolds & Co. stock.
Sully said r ". Reynolds & Co. were cotton
merchants and, beginning in August, 1903, acted as
agents for Sully & Co. The arrangement was made
between the witness and Hadley. The latter then
was treasurer Of Reynolds Co. and did not be-
come member OF the Sully firm until March.
1904
o-Do you know .. McAdams. of Utica and do
you know he recently paid sle5lo 10 F. w. Rey-
holds & Coz Ayes; Mr.. Miller told me about it.
o.-Do you know any reason why money paid by
AcAdams Reynolds az CO. should not be paid
10 the receivers? Al do not.
Mr Boothby said the receivers had been Informed
o1 $50 paid by the Cornwall and York Mills and a
note S145oo paid by Calder & Wilcox. OF Provi-
dence, 20 Reynolds G. Co The had ma
tured. Suly said. 1t given TO balance an ac-
count with Suly Co. He knew no reason why
these amounts should not be turned over 20 the re-
ceivers. He had not advised against it.
Reynolds g. Co. sald Mr.. Sully. operated indie
pendently OF Sully Co., though the latter firm. Il.
January February ana part OF March. operated
largely for the Providence firm.
G.-When ard where were tho errangernents made
Tor Suily az Co to purchcse 70: Reynolds & Co Z?
An my own head.
o-.-Any written contracts between the two firms?
A-No.
Q.-Hou sold an Official OF the one and bought
as an oIcsal OF the other7 A.-Yes. and Daniel J.
sGly losAed Daniel J. Sully < 90 the money 10
do Il with.
Q.-What about Interest and commissions? -
Interest was charged. or should have been The
gate q interest was not fixed. so far I rercem-
Der The commissions went 10 Suy d Co
The examination adjourned to Thursday OF
* week at 30 p. ~.