New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-03-23
BANKRUPTCY FOR SULLY.
RECEIVERS TAKE CHARGE.
T.. III. Hartman Said To Be IN
Pool That Backed Cotton Bull

Determined 70 obtain the full payment Of their
claims creditors OF Daniel ]. sulIy & Co. forced
that firm into involuntary bankruptcy yester-
day. feeling certain that through the investiga-
tious OF the receivers il would be shown that
Mr. suuy was the manager OF pools FOR specu-
lation in cotton. in which the members were
men Of much prominence IN the financial world
That these men had prOhted by many OF the
surIv deals his books would show. the creditors
believed and that these men were under Oollga-
ton to come to the front now 70 help Mr. Suny
vrben he was in trouble was held 20 be only
mart OF the agreement under which they had
taken the profits.
Under the United States bankruptcy laws. the
receivers have wide powers. lawyers explained
Yesterday; powers wide enough to put MI 0uls
on the stand FOR most rigid examinations
rovvars 70 examine any one else with whom MS
h,ots sbo,vad dealings II this were done,
,,~.a+ ,feb+ would be shed on the manipulations
- ~. cotton market. brokers declared. while
s,,ob facts would be shown as to make II ooliga-
.o-,, for those who had been in the pool 10 help
Mr. SuIly pay his debts
D,oo,+tr,a John II. McFaddeu, who Is one OF
.b, 1arga creditors says the forcing OF the DahN-
,,,,tcv proceedings was an act or pad falth Oh
+ba mart Of some members OF the credltors Co'n-
-,,ttaa. The attorney for the assignee had mace
orrangeuents for carrying out the pToPosl'iOHs
.,,b,,ittad 70 the committee by Mr. Sully. ana
expected an acceptance. or at least ue.iiii'7 an
s,rer. Yesterday az p. m Instead. IN the ilo'
-. ~. ,roraedfngs in bankruptcy
There found its way into the offices OF soD'7
r. e,,u,--z creditors yesterday a statement
= ,s,-1v three pages furnished by cre'"I
- ,ssoctatt3r 10 one 81 the largest oahhS III
-. ottv II said that Daniel J. Sully e Co. was
oroozad IN general brokerage business. but
,,o, besides Mr. Suiy was the manager OF
-,r,, orgarized 20 speculate in cotton. the other
r,arrbers OF which we're Edwin Hawley. F. H.
Hartman and Frank n. Ray.
From n Wall street man who Is In a position
IN know the inside of the Sully dealings came
the statement that not only would MI SuHy
toots show that he was the manager Of pools
IN bull cotton. but that the profits ot the other
members were paid to Edwin Havley. who acted
,e @ distributing agent He vouchsafed many
Interesting details as to the formation Of these
Doo1s There met in a room at the Hoffman
House these men. he said. TO play "sweetheart's
polxer." a game different from the common brand
only in that each mans winnings were given TO
bts wife or sweetheart. Between games they
rrannad cotton pools and cotton campaigns as a
recreation.
ONE MAN MENTIONED LEAVES TOWN
Mr. Hav-Iev denied that he had had anything
10 do with the Sully cotton ventures. In Wall
Streets ru7nors another man was mentioned as
being high in the POOLS affairs. lie left town
early yesterday going West. it was said
In the Wall Street speculation concerning the
disposal Of Mr. suIIy's earnings there has al
wavs been more or less inability to account for
all Of them. save on the supposition that he was
paying out much Of them to a pool which he rep
resented. He has frequently said that he did
not trade on his own account for half his market
dealings.
Under the bankruptcy law the receivers guard
the interests Of all creditors. and their actions
take precedence Of any transfer or assignment
Of property within four months previous TO the
act Of bankruptcy IL is understood that the
books Of the SuHy firm will show that Satur-
day morning. after the suspension OF d J. suHy
& Co. there were preferentials entered on the
hooks amounting to about 100000 This money
was paid TO certain of the creditors. among
whom. the Information came. were Gwathmey
& Co, SI5OCOO: Shearson. HammiH & Co.
100000 and stephen NJ. Weld & Co. StJO.OOO
The petition in bankruptcy was fled in the
United states Circuit Court The creditors who
signed Il were s. ". Weld & Co. who declared
they held claims amounting 20 more than $3.50
600. Gwathmey & Co, whose claim was more
than $4,000. and Shearson. Hammfu & Co.
whose claim is more than 100000 Under the
rules Of the Cotton Exchange. the petition says
On March 10 Sully & Co. informed the exchange
and their creditors that their firm was unable 10
meet its debts and made general assignment.
Therefore the petitioners asked that receiver
be appointed 70 look after the outstanding ac-
counts and other assets Of the firm which had
assigned.
Judge Holt appointed David Miller. one OF
the best known cotton brokers' and Henry ".
Taft. co-receivers. Mr.. Taft is brother OF the
Secretary Of War. He is a member Of Strong
& Cadwalader Of No. 10 Wall-st The receivers
bonds were placed at $4,000. These. furnished
by a surety company. were filed. and the re-
ceivers were sworn in before Judge Holt az 3
.. m.
MADE LAWYER WAIT AN HOUR TO SERVE
Mr.. Hardy OF Boothby & Baldwin counsel for
the petitioniag creditors. called at Mr.. Suily's
office at l O'Clock 20 serve on Joseph II. Hoad-
lev the assignee. and members of the firm
titled copies of the courts appointment OF the
receivers. together with an order restraining the
assignee from transacting any business. NJ
Hardy was kept waiting hour before he re-
ceived any attention from those inside the Office
Finally a man emerged, saying he was Mr.
King" and offering 10 accept servtce for Mr.
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