The Savannah morning news., 1904-05-07
SULLY THINKS RAY
SOLD OUT ON HIM.
DethrOned Cotton King Gives Evil
dence on the stand in His Case.

DethrOned Cotton King Gives Evil
dence on the stand in His Case.
New York May 6.-The examination
in the d. j. Sully & Co. bankruptcy
proceedings was continued. to-day be-
fore United States Commissioner Alex
ander, sitting as a special examiner.
Daniel j. Sully. the head of the firm,
was called to the stand. The Joint
three account" he said, was a mutual
arrangement between Mr.. Hawley, Mr.
Ray and myself to buy cotton"
Sully said that on March II. when
he had a talk with Hawley and Ray,
the market was going down. He told
them, however, that it would be wise
to buy on a falling market. No amount
was mentioned. but they intimated
they would pay what was needed"
Later" said Sully, Il showed them
statement, including a statement or
my funds. Ray and Hawley both saw
1t" The Joint three account" he said,
were carrying about 10000 or $4,000
bales.
When saw Ray the following
day." said Sully, ''he said drop of
a cent meant $1250OOO to margin it;
another cent meant another $1.250,000
He said, We cannot stand it. Some
body has got to be sacrificed. 1t
might as well be YOU They told me
they would close the margin account
at l o'clock the next day. They want
ed me to take over their share of the
account at 15.25c for May and 1850 for
July"
Continuing he said: "On March II
did not know, but since l have learned
! was liable for S425,000 in margins at
10 o'clock on March is. l did not know
that the calls had been made"
Sully said that when Ray left him
on the morning of March IS he had an
opinion as to what was about to hap
pen. Il thought he was going to sell
the market out on me-" he said.
Tremendous and heavy selling from
certain quarters during the forenoon,
seemed to indicate to me-" the witness
said, that somebody knew what was
going to happen"
The witness said he kept HawIey
posted during the morning and told
him he did not fear the market If he
could meet the / o'clock margin call.
The market had varied only Is or 20
points when Sully went to see HawIey
at o'clock. Six hundred thousand dol
lars in addition to what the firm had
in collateral was needed, and Hawley
was so informed IN
He said he was very sorry, but that
ne did not have the money! the wit
ness testified. "FIe said ne had NOT
heard from Ray"
During the afternoon. Sully said he
received a letter from Hawley, en-
closing $50, APO as the latter's share of
one-third of 90,700 bales This letter
came, about 2 or 3 o'clock, but in the
meantime. at 1:45 o'clock, Sully had
sent notice to the cotton exchange that
he could not meet his engagements.
The witness told how he said to
Hawley that he would have to have
money on March 49, and Hawley said
he would give his sha-s.
Sully said he next saw Hawley and
Ray that evening in Mr.. Hawleys
rooms in F'ifty-seventh street. Il
did not know" he said, the appoints
declaration of bankruptcy or would
not have considered it,"
The witness said he and Ray alone
were in "joint account No. 81 The
regular Joint three account" in which
Bawley was interested, was reported
daily by telephone to. Ray and in
writing to Hawley
In reply to a series of questions by
Lawyer Junkins. Mr.. Sully said that
when his firm began business in 1908
be thought 1t would be great moral
and financial help to have a man like
Hawley associated with him.
Sully was on the stand about two
and a half hours. He had no papers
nor memorandum to refresh his MEM
ory. The examination was adjourned
to next Friday.