Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1904-04-01
Object is to Find Out Who We're
The Cotton Kings Co.
Workers
HAWLEY AND RAY CHIEF ONES.
Ex-Secretary Of War Root Retained
To Question President Of Iowa
Central Railway,

New York, April 1.-THE examina-
ton In which Edwin Hawley, president
Of the Iowa Central railroad and the
Minneapolis & ST, Louis railroad, and
Frank Ray. head of several large to-
bacco companies, the alleged partners
Of Daniel j, Sully, In his cotton oper-
ations, are TO be questioned began to-
day before United States Commissioner
Alexander. To ascertain fully wheth-
er or not Hawley and Ray were person.
ally Sullys partners is the object OF the
examination and Commissioner Alex
ander was appointed by Judge Holt to
act as a special examiner In the case.
Receiver Henry w. Taft and David
L. Miller procured the order from
Judge Holt OF the United States dis
trict court requiring Hawley and Ray
not only to appear today before the
special examiner but TO take to the ex-
animation room all their books and pa
pers that would disclose exactly what
were their relations to Mr.. Sully.
Former Secretary Of War Elihu Root
was retained to question Mr.. Hayley
and MIR. Ray, At the opening Of the
examination Commissioner Alexander
ruled that the examination would NOT
partake Of Obligated proceeding"
Mr.. Hawlcy was then called and his
examination was begun by Mr.. Root.
Just at this time Mr., Sully entered the
room and took seat near the lawyers
table.
Mr.. Hawley testifes that his bust
ness relations with Sully a. Co. began
In December last and ended on March
49, Mr., Hawley said he kept no special
record of his cotton operations, relying
chiefly on the statements he received
from Sully & Co, following a purchase
or sale.
At the request of Mr.. Root, Hawleys
lawyers produced issued batch OF
these statements,
They showed that on Dec. L. 1903.
10000 bales Of cotton were sold for the
account of Il. Hawley and ID. J. Sully
Jointly and on Dec, 30, 1900 bales were
bought and sold for the same account
There were also similar transactions
on smaller scale for Dec. "a and o..
and then came number OF statements
OF various dates In January, all repre-
sentIng heavy transactions in cotton
for Hawley's account, Mr.. Root read
from statement showing that In one
particular transaction Messrs Hawley
and Sully had divided a profit OF $780,
400.
Mr., Root next read from other state
ments bearing February dates, Mr.
Root next read statement OF cotton
transactions bearing the names OF
Hawley, Sully and Ray.
Mr., Sully II was brought out used to
take his own share OF the profits be-
fore sending Mr. Hawley his share. A
number OF "joint three" accounts
(Hawley, Sully and Ray for the latter
part Of February, nearly all represent
ing heavy sales, we're next read of by
Mr.. Root,
Hr Iawley said there were other
transac ions for Joint three" ac-
counts dated Feb, "a and 27, something
over 10000 bales, which netted n profit
Of $4,000 Mr.. Hawley said that he
did not take his profit In these trans
actions, They were credited to his
account
~ u'NNlbINu uuilHk lHt examination
that the first transaction Mr.. Hawley
had with Mr.. Sully was IN SEPTEMBER
1908, when he loaned Sully individual.
~ 100000 on securities
a letter from Hawley to Sully, dated
March is, was read by Mr.. Root. It
read In part
Il enclose herewith statement Of ac.
count, showing, so far as my individual
interest is concerned, balance due
you OF sS2,420. for which enclose my
check.-E Hawley"
Hr. Hawley said that his check for
amount named was sent to ID. ]. Sully
& Co.
Mr.. Hawley here made brief state.
ment, denying any partnership with
Mr., Sully. That phase OF the examna 4.
ton Mr. Root replied, had not yet been
reached
The examination Of Edwin Hawlcy
IN connection with the Sully receiver.
ship has been adjourned until Thurs.
day, April T.