The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1904-04-08
MR. HAWLEY
TE|:,.SI.|l.FIES
Exhibits Check Book to Show.
Transactions With Sul1y3 Il
& Company.
.fRN Aas,,cIntcd I3resa.l

tBy' Associated Press)
NEW YORK. April 7.--1y,c dlsposinA
| Of tho surplus. about 4 GOO bales. 81 5000
bales Of cotton that had been pledged
| by suly md Company with The Corn.
! Exchange Bark, was settled quickly to-
day before United States Commissioner
Alexander. sitting MS special examiner.
THO commissioner with the approval
OF nil parties TO tho controversy. de-.
l2cided to recommend to tho court that
tho bank should t,irn over the surplus
| to Tho receiver Of suly and Company,
with the Understanding that tho r. w.
| Reynolds Company Of Providence. did
not waive It's claim because OF this dis
position OF tho matter. Tho dispute was
be tween the Snlly Company creditors
and tho r. ". Reynolds Company
The investigation before Commissioner
Alexander. which began n week ago.
brought by, tho receivers OF y. j. Sully
and Company 10 determine what liability.
81 any. wns held by Edwin HaNley and
others in tho cotton pool, was tnued
to-day, Mr.. Hawlcy being the first witt
ness. He was again questioned hy Elihu
Root. special Counsel for tho receivers,
He had his check book with him and
In answer 10 practically q repetition OF
tho questions at the first hearing, with u
others added, identified many entries.
showing that he drew$c,iecks for various
Sims In connect ION with his cottor deals.
Ono check was for $4,000 payable 10
John w. Gntes: one was to u. c. Wcir x
for s44,ss3. and another to a. ". Bnrch
ard for 1850 IT was also shown that
Hawley had received about $4,000 iii
connection with the deals, ard tha,mu
OF this had been paid out by him to
others. Including Gates, Weir and Burch-
ard. One profit payment to Ray. accord
ing to tho check book. was s4s.e6s, the
witness receiving an equal amour I.
~
On March 7th the witness showed, ac-
cordng to check hook. SuIly and Com
pany acted az broker for Hawley. In ~
the purchase OF ono hundred shares OF
Merchants Trust Company stock tor
1880.
ION March 18th check for sso.A2o was
paid to Sully and Company to balance
cotton accounta.'S
8 The witness could not recall the pIr-
pose OF a check for $4,000 paid I 0 Sul!y
and Company on September !. 1903 4,
MIR Root took up n tranaaction known q
us mo. s.. and asked Mr. HawLsy TO give
TIC conversation he had had with Mr.
Sully In regnrI TO that transaction.
II authorized 5000 bales to my 10
count. cannot tell where the converse
tion took place. Mr.. Ray was the only
other person present.
Th.s witness said he could not repeat
exactly the conversation ut the timc but 1t
would be given. The day before the
SulIy failure the witness told Sully lie
would furnish enough money to protect
his Giawleys) account. Prior 10 March
18th nothing about margins was dore,
because It had not been necessary.
The market always advanced after he
had purchased the witness said.
#"Please tell what took place on March
17th.''3
"Mr. sully cams to my office to walk
home with me. but returned to his Of
flee. He was to meet me later at tha
Waldorf. He said at the Waldorf lie
might need money. 7 told him I would
protect my accounts"
Ibid Mr.. Sully indicate no needed
fmoncy-nside from your account?''
Yes. =
do you know what he needed til.
money for?" s8 i{55
mo-. @
DID NOT LIZZIE 5suLLY,s WAY.
II MIR. HawIeys said that when he learned
of tho condition OF Su'ly's firm he de-
cidtd to clos.e his account because no did
not like to do business with house hat
did business as S;uly did, and also be-
cause he did not like tho looks OF the Il
market. Tie witness, Sully and Ray met
on the morning of the failure, and snly
WINS told the cotton he had for them,
IIawoy and Ray, would be transferred to
another house 4f
.'Wc decided to give him up" said Mr..
Hnwley.
Slly took tho pools cotton Mt the pre-
yajllnE prices of tho night before rather
than transfer the account to another
house, I,
The witness said le considered the
vouchers for money received from Sully
and Company as receipts for partnership
Profits In certain specified deals. Others
might call them pools or anything else
The arrangements and understanding
with sully was that any party to the
deal could sell as he chose.
Al The remainder OF tho questioning was
directed to show that "1oint accounts a
term used by Hawley, meant partner-4
ship. The hearing was adjourned until
April 18th.