New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-03-30
ROOT IN SULLY CASE.
TO HELP RECEIVERS.
Retained TO Examine Havrley and
Ray-Hearing on Friday.

An order OF Judge Holt OF the United States
Das-rscf Court was served yesterday on I'd
.sn Bavley and Frank r. Ray. requiring them
a sppear before United States CommlssloHeI
Thomas Alexander in the Federal bul-alIg Oh
Friday a. Il q. m. for examination as 20 NE.
alleged interests IN the cotton pools OF D-i'-''
7 suuv. Judge Holt has appointed Nj. Alex
on6er a speoisl examiner 10 hear the eFioence Ia
the
Tpspe Hollis order requires Hawley and Kay
70 produce ali books papers. writings. account
books. vouchers and other instruments IN WIZ
the" which relate 10 the acts, conduct anu
property OF y J. Sully co. or Dahlei o.
suns. Samuel r. j. Morse, Edward haoiey, ~"
and William j.. Pagan, alleged bankrupis. Inc
order WAS issued on the application OF heIlIS
"a TAFT and David II. Miller. receivers Tor -
J. suIy & Co. and the application declares
that IN view OF the documentary ana other e'i-
5orce IN the possession Of the receivers they
be1ieve that Il is desirable and necessary 10
have Hawley and Ray examined IN court A"
rroceedlng is under Section u or me OI-i'e1
States Bankruptcy Laws, which perini's d &c
oeiver or creditor TO examine any person LO'l-
,thorn Il is believed information can be 0o'alIeu
regarding bankrupt -
7,,o order FOR the examination, Nj Tan said
,,.s.erdav was obtained as means OF 2scs'-
ts,n,nr what assets suIly or his firm may nave
4, c,at-,s against Havley and Ray on account
:, ,ts,r ,o,nt accounts. or pools, IN cotton Inc
-.oa,,,.ru he said. could not bring suits against
r4.v-,a,, and Ray. only the trustees ID OallA-
v,,ntcv having the power 10 bring sucn suI's' OuI
tbe receivers had the right 10 take means %
ssoertaining what the assets Of the PahAlNp'
arrn were. IN order that such SUITS hisH' -
brought later by the trustees.
F-lihu Root. M Taft announced mas DeeN
tanned as associate counsel for the Tecelee.s -
oonduot the examination OF Ha"ley ana ray.
:. !, understood that the selection OF Mr. Root
was 81 the request OF some OF the creoltoIA
Boothby & Baldwin are the regular COUNSEL '''
the receivers -
The orcaltors' committee ana the receivers
were in conference Tor three hours yesterday
afternoon at the Office Of Daniel J. Suly d Co.
considering the firms proposition 20 settle its
,hl,ra+ions by paying 40 per cent IN cash WITHIN
thirty DAYS and the other 90 per cent in non-in-
terest bearing bonds payable in one TWO anu
three years and by reassigning TO committee
q. creditors all the right title and interest Of The
dru1 OF Daniel J. Sully q Co. and Mr. Sully mol
xfdualy IN the claim or claims OF the hTm OF
Mr. sf,Ily against Nessre. IIawley and Ray aris-
ing out OF their alleged Joint transac1lohs ana
oDerations in cotton. The conference closed
without the creditors committee having reached
a decision TO accept or reject the proposition
The Corn Exchange Bank yesterday sold -FOUR
thousand bales Of the spot cotton which Il has
held as collateral for loans 20 Daniel J. Suliy q
% The price obtained was 1880 cents a pound
or about $500 600 for the four thousand bales
yK-l,af Is The firms equity IN this could not
he learned. The receivers had given their Tor 4
mai consent TO the sale, the papers having been 4
signed before Judge Holt, III lhe Nhlleu SeateS ]
District Court.
Referring TO the notice sent by Mr.. Sully 70 4
the Cotton Exchange, the effect OF which, u was 4
said would be 10 restore Mr.. Sully 20 member
shin on a settlement being made, Superintendent \
King said that under 1.-The bylaws OF the TX
change Mr.. Sully could not be reinstated unJi
ne exnirstion OF one month from the time OF .
his suspension or April j..
A Cotton Exchange membership was sold on /
Monday Tor $1,000 and yesterday for the D
same sum. 10 which I'm each case transfer 7
-harge Of $500 replacing the old 500 initiation d
fee Is added The sale Of a seat TO John ID. 4
Berkly OF Norfolk. Va. at S10.Je0. exclusive OF 4
he $500 transfer fee, was reported yesterday.