The Birmingham age-herald., 1904-05-18
Explains Deals Made With the
 Different Companies
LIABILITIES TO BE FLED
Deal of zerega & Go. Was Made With out His knowIedge-Mrs. Sully Owned Much
 Stock.

New York, May 17.-The hearing in the Daniel J. Sully & Go. bankruptcy pro- ceedings was resumed today before Ref cree Coxe. instead of United States Com missioner Alexander
 MT. Sully, who at the last hearing be- fore Commissioner Alexander was cn the stand nearly three hours, was again sworn. He said that the account with zerega & Go. of Liverpool, which ap- pears in the Sully & Co.'S books was of transactions for Harris, Gates & Go. a customers account. It represented deal- lngs in futures for Harris, Gates & Go. as customers but the dealings were in the name of Sully & Co. The account rep- resented an order for the Liverpool firm to buy It was ordered sold through Sully & Go.
 The witness did not recall any other future dealings with Zerega & Co. He said the spot cotton transactions with Zerega & Co. previous to 1905 were on his personal account, except in cases such as that of Harris, Gates & Go. After Janu- ary 1, 1904, the dealings were for F. w. Reynolds & Co., through Sully Co. 
 sully & Go. in turn bought through George McFadden & Bro. The McFaoden firm took the Liverpool cotton on een- signment and advanced the money to Daniel J. Suny & Co. The cotton was sold when MT. Sully directed.
 Did Not Recall Check.
 He did not recall getting check for
 t,o daliNpred cot ton to McFadden and neither he nor any member of his firm notified zerega X Co. to sell the $194O00 account. On the con trary, he said MT. Cutcheon, attorney for F. w. Reynolds & Co.,. notified zere- ga &, Go. through the latter's agents Mc- Fadden Bros, not to sell it. lt Y was done, it was against the yishes oi the F w Reynolds Go. 1t belongs to Dahlei J. sully & CO, excepting the equity Of F. W. Reynolds X Go. "McFadden told me on the morning fol- lowing my suspension that Zerega & O. had sold the futures" said the witness. nHe showed me a cabegram or copy of one. McFadden ordered the sale. II was of future I had open with Mcfau- den" uo MT. Sully said that three weeks ago he had been succeeded by David h. Thompson as president ol the T. ". tse' holds & Go. The company is capitanzeo' he said at s25o,OOO, all paid in. He, the witness. holds $5O00 and Mrs. Sully s2ls,oVO of the stock Sully said F. w. Reynolds S, Co were cotton merchants and begin ming in August, 1905 acted as agents Tor Sully & Co., Mir. Sully said that Reynolds <, Go. operated independently of Sully x Co. though the latter firm during Janu- ary, February and March operated large ly for the Providence firm
 Made arrangements Himself.
 .sWhen and where were the arrange ments made for Sully & Go. to purchase for Reynolds X Cor"
 '.In my own head" said Suly.
 Amy written contract between 'the two frms?'
 .No."
 You sold as an official of the one, and bought as an official of the other?'
 'Yes, and Daniel J. Sully loaned Sully & Co the money to do 1t with"
 What about interest and commis- sons?''
 sInterest was charged or should have been The rate of interest was not fixed so far as I remember. The commissions went to Sully & Co.,
 The examination was adjourned until May 26.
 The schedule of liabilities of Sully x Co 1t was announced tonight will be filed in court next Monday.