The Montgomery advertiser., 1904-05-07

 TO D. J. SULLY 'Ex-Bull Leader on Wit-
 ness Stand. TELLS OF PARTNERSHIP Hawley Promised to Stand
 By Him. Instead, suily Intimatss, Hs soid Cotton and Forced sully to the waii-Hsartng in New
 York.
TELLS OF PARTNERSHIP

New York. May 6.--The examination in the D. J. sully case. bankruptcy pro- ceedings was continued today before Commissioner Alexander. sitting as | ! special examiner. Daniel J. suliy. the head of the nrm, was called to the stand. !. D. F. Jun Ken of Philadelphia. one of the Iatterss counsel. expressed the wish that the examination of MT. suliy be restricted to the acts. conducts and profits. of his business and it's dealings with Ed- win Hawley, Frank H. Ray and others. MT. Suily described the membership of the firm of Suliy & Co. The capital was S500.000., all paid in. was contrib- uted by him January l, 1900. The part nership existed in 1908 without any formal papers being signed. The wit ness was asked by his counsel, EIihu Root. to tell about the orders he receiv~ ed to make purchases and safes for what has been called the joint threa account"
 Mutual Arrangement.
 Tt was mutual arrangement be- tween Mir. Hawley: MT. Ray and my- self. to buy cotton" said Mr. suiiy.
 Can you recall 1t in words?" | 4 on every occasion. The mutual agree ment about the last joint account was made while we three were riding in an automobile about March L"
 Mir. Suliy said the matter was talked about for several days and finally at that date 1t was decided to buy May and July cotton. Mir. Hawley thought it would be advisable to have MT. Gates in the pool. said the witness. I thought the fhWM1 r.% I<s1. A. From 150.000 to 190,000 males were con sidered. Hawiey and Ray had asked my opinion about the same amount,
 Now start at the beginning of the con- 'yarsation: tell it's the story. r T was about to so on k avacaffou, but they thought tho market strong and a good time to make the purchases. 1t was talked over by us at the Waldorf for several days and finally we decided to do it,
 Did they ask you to buy it for them as individuals7''
 No sir''
 -Anything said about separate and in- dividual accounts?'
 'No sir"
 "were your orders to purchase for your respective selves separately or collective 1y?'
 For Joint Account. IL was kor the ,1ofnt account
 Mir. Sully said he had discussed his affairs with Hawley on March IT. Witt ness then told how he said to MT. Haw- ley that he would have to have money on March IS and Hawiey said he would give his share.
 What was the particular reason you thought you would need money the next day7'
 T had put up s7oo,ooo in margins and thought 1t was time Hawley and Ray dld something
 ''were you at the end of your re- sources7"
 'sNo sir. had about s9o0.ooo in cash and securities and s4O0,0oo due from cus- toners. I thought it was time Hawley and Ray shared with me the burden. I was carrying about S5O,00o bales of cot ton."
 suliy said that on March r. when he had talk with Hawiey and Ray the mar ket was going down. He told them. however, that 1t would be wise to buy on falling market. No amount was men, tioned. but they intimated that they would pay what was needed.
 Later" said sully. T showed them a statement including statement of my funds. Ray and Hawiey both saw it."
 How much was the joint three ac- count carrying?"
 About 10000 or 115.ooo bales"
 "Did you know how much money you wanted and when?" "Yes"
 When was it neededT'
 cAt 1 o'clock the next day"
 When I saw Ray the following day.. said Sully, he said a drop of a cent meant q ,250,00O to margin 1t. another cent meant another $1.25OO0O. He said:
 Sacrifice Necessary.
 We cannot stand 1t. Somebody has got to be sacrificed. It might as well be you They told me they would close the margin account at o'clock the next day. They wanted me to take over their share of the account at 1525c for May and at l5.36c for July
 Continuing he said:
 "On March r I did not know but since have learned I was liable for $l25000 in margins at 10 o'clock on March IS. I did rot know that the calls had been made" 'Gon the morning of the 18th did Hawley say anything about carrying you over?'' s"No, only as I have stated. Hawley said they would stay until 1 o'clock They had agreed to furnish money on my collateraIs and to furnish what other funds were needed to carry me over o'clock"
 ''That was one of the conditions of your assuming the joint three &C., count'?'
 Yes, sir"
 "Dld they do it?"
 No. sir
 Sully said that when Ray left him on the morning of March IS. he had an opinion as to what was about to happen. ss 'where did the heavy selling orders come from?"
 some from the Waldorf by tele- phone"
 Was that where Mir. Ray went after leaving you and Hawley in the car- riage?"
 T don't know; he got out at the Waldorf"
 Kept Hawley Posted.
 The witness said he kept Hawley posted during the morning and told him he did not fear the market if he
 Continued on Page Three,)