The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1904-04-12

New York, April THE disposing
of the surplus, about 1900 bales, Of
5000 bales of cotton that had been
pledged by Sully and Company with
the Corn Exchange Bank, was settled
quickly today before United States
Commissioner Alexander, sitting as
a special examiner. The commis-
sioner, with the approval of all the
parties to the controversy, decided
TO recommend to the court that the
bank should turn over the surplus to
the receivers of Sully and Company,
with h understanding that the F.
W. Reynolds Company, of Provi-
dence, does not waive it's claim be-
cause Of his disposition of the mat
ter. The dispute was between the
Sully Company creditors and the F.
w. Reynolds Company.
The investigation before Commits
sioner Alexander, which began a week
ago., brought by the receivers of D.
j. SuIly and Company to determine
VIVA liability, if any, was held by
Edwin Hawley and others in the cot
ton pool, was continued today. Mr..
HaWley being the first witness. He
was again questioned by Elihue Root,
special counsel for the receivers. He
a his check book with him, and
IN answer to practically a repetition
OF the questions at the first hearing,
with others added, identified many
entries showing that he drew checks
for various sums in connection with
his cotton deals. One check was for
$4,000, payable to John w. Gates;
one was to L. c.. Weir for 1850,
n another to A. w. Burchard for
S44,SS0. 1t was also shown that
Hawley had received about $4,000 0
in Connection with the deals, and tina
much of this had been paid out by
him to others, including Gates, Weir
n Burchard. One profit payment
to Ray, according to the check book,
was S4S, 966, the witness receiving an
equal payment.
On March 9TH the witness showed
from the check book Sully and Com
pany acted as broker for Hawley in
the purchase of 100 shares of Mer-
chants Trust Company stock for
s17.5oo.
ON March 18th a check for sS2,42O
was paid to Sully and Company to
balance cotton account"
The witness could not recall the
purpose of account for $50, 600 paid
to Sully and Company on September
4th, 1903.
In connection with thirteen checks
for a total of about $500, 900, received
from Sully n Company to Hawley's
order during the five months. includ-
ing March of this year, the witness
identified vouchers by him or his sec
rotary.
Questioned by Mr.. Root. the witness
said the purchases of cotton by Sully
and Company, in which he was con-
cerned, were made with his knowl-
edge. He did not go to the office Of
Sully and Company. He could not
recall any order given from his Office.
Mr.. Ray, however, had given such
orders on his, Hawley's, authorize
tor. Hawley said that he and Mr..
Ray frequently met at the Waldorf
hotel, and that they discussed the
cotton market. Sometimes John w.
Gates was present.
Mr.. HawIey told of a dinner at the
Waldorf, at which an order to pur-
chase $4,000 bales of cotton was
given. There were present, he said,
John w. Gates. Mr.. Ray. Mr.. Sully,
Mr.. Burchard and himself. Mr..
Gates gave the dinner, he said, and
they talked cotton. AS a result OF
this, he said, an order was given to
purchase 10000 bales OF cotton for
the account Of each man present.
Mr.. Root took up a transaction
known as mo. g." and asked Mr.
Hawrey to give the conversation he
had had with Mr.. Sully in regard te
that transaction.
II authorized 10000 bales to my
account. I cannot tell where the con-
V~ersation took place. Mr.. Ray wal