New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-04-08

militsto against him, well hurt the market
w., We then told him that We would transfer our
the other broker, that It wouldn't hurt Sully
c-Whers' cd dis tSsf Conversation take place?
Ain a carriage. Mr suiiy called at my house
%sg down an t Rs PoEad up Of
stopped at the Waldorf 20 let M Ray out and
-B 5 MT Sally sh2w YOU any state I that
A-Eo sir.
The witness said Sully took the pools cotton
at the prevailing prices the night before. rather
than transfer the account to another house. 1t
In this transaction that the check, amount
ing approximately TO $4,000. was paid. Sully
was glad to do it," the witness said.
o.-Did you sell any cotton on March 1sH A
what ! closed out to suIiy Al
Q.-were ell the orders given to Mr. sully alike7
Q.,,How long have you been in the stock broker
age business? Al never was.
No. sir; we are bankers.
VAGUE AS TO JOINT ACCOUNTS.
The witness admitted receiving partnership
PROFITS in certain cotton deals. Others might call
them pools anything else. ne said. but the
arrangements and understanding with Sully
We're that any party to the deal could sell he
chose.
What do you want TO have so on the record
10 your understanding of the words joint
dNColHNs rs liley appear IN the vouchers you
signed?" asked Mr.. Root.
The witness answered evasively that he had
no understanding about it; that it might be va
riously interpreted. His counsel. Mr. Davies OBJ
jected to the question. but Commissioner Alex
ander said they were proper.
We'll Joint accounts differ. My understand
ing with Mr.. Ray and Mr.. Sully was that I
net in Joint account at all. Ny interest was
separate and distinct" the witness said.
Q-,You say that Mr.. suly said that some one
would have 10 fail. and he might well be the
one? Ale never made that statement in my
obs you ever hear Mr. sully said he WOULD
need Si.25ooeo? A.-No such statement made
In my presence
Mr.. Root then handed Mr.. Hawley the check
dated March IS for 400. and asked him why
he had added 20. X + Hawley." on the back
Of the check under the Endorsement
Because" he said, Il wanted to get the
money-that is. I wanted TO cash It Immediately.
It was brought back to my office at about
p m. and 1 added that o. k to the indorse-
ment Of Sully & Co"
o-Didn't you think that a large amount TO be
drawn in bills? A.-Not If he wanted it that way.
o.-You didn't think that unusual, az yOq-a pc
ne wy - ~ '-S''s4S' u''''' 'i'e''S'
You did not intend to be at the Hoffman
House that evening. did you?" queried Mr.. Root.
Mr.. Hawley smiled and shook his head slowly.
and then, 81 by afterthought. he added:
NO. not that evening"
When you drew the check for $4,000, didn't
you know Sully & Co. in straits?'
NO. sir: I didn't know anything about IT.
This ended the examination OF the witness
Before il was decided 10 adjourn to Friday OF
next week. ]. r. Dos Passos Of Mr.. Sully's per-
sonal counsel. said TO the commissioner that he
might request the privilege OF examining Mr.
Hawley after Mr. Root finishes. Mr. Dos Passes
said he would be Influenced by the views Of the
receivers and their counsel, Mr.. Root Nj
Davies OF counsel for MIR. Hawley said he
might ask the same privilege. though i. was not
certain.
1T may be that what NJ Root has ELECTED or
may ascertain viii he perfectly satisfactory TO
US" Mr. Dos Passos added. grimly.
Samuel Untermyer representing creditors OF
Daniel J, Sully & Co. served the same notice
Of privilege. All the lawyers were informed by
the commissioner that any active participation
accorded them would be as matter Of privi-
lege. and not OF right. He would be controlled
not only by the testimony but by the receivers
later action.
The question Of the disposition to be made Of
the surplus remaining after the amount Of the
loan made by the Corn Exchange Bank had
been paid out Of the proceeds of the sale OF the
six thousand bales of cotton pledged with the
bank by the Suly firm as collateral for the loan
was speedily settled yesterday morning by Com
missioner Alexander at a hearing which was
held a few minutes before the hearing in the
Hawey-Ra matter began. The commissioner,
with the approval Of the attorneys for all the
parties to the controversy. decided to recon-
mend 20 the court that the bank should turn
over the surplus to the receivers Of Sullv & Co,
with the understanding that the F. w Reynolds
COMPANY Of Providence. does not waive It's
claim because Of this disposition OF the matter.
The dispute was between the Sully creditors and
the F. W. Reynolds Company.