The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-04-07
SULLY'S COTTON.
Six Thousand Bales Ordered
Turned Over to Receiver.

New York, April THE disposal
of the surplus of 5000 bales of cot
ton that had been pledged by Sully &
Co. with the Corn Exchange bank was
settled quickly today before U. S.
Commissioner Alexander, sitting as
special examiner The commissioner
with the approval of all the parties
to the controversy decided to recon-
mend to the court that the bank
should turn over the surplus to the
receivers of Sully & Co, with the I'M
Outstanding that the F w. Reynolds
company of Providence did not waive
its claim because of this disposition of
the matter. The dispute was between
the Sully company creditors and the
Reynolds company.
The investigation before Commits
sioner Alexander, which began a week
ago, brought by the receivers of D. J.
Sully & Co. to determine what liza
bility if any was held by Edwin Haw-
ley and others in the cotton pool, was
the first witness. He was again ques-
toned by Elihu Root, special counsel
for the receivers. He had his check
book with him, and in answer to prac-
the first hearing with others added,
testified to many entries showing that
he drew checks for various sums in
connection with his cotton deals. One
John w. Gates. one was to L. c. Weir
for S44,880, and another to A. w.
Burchard for $44.SSO. 1t was also
sh own that Hawley had received about
$500, 900 in connection with the deals
and that much of it had been paid
out by him to others, including Gates,
Weir and Burchard. One profit pay
ment to Ray. according to the check
book, was $4S4,966, the witness re-
ceiving an equal amount.
On March 10. a check for $50, 42O was
paid to Sully & Co, to balance cotton
account
rrbe ,,-i+nass could not ,ara14 tho mr.
pose of check for $4,000 paid to Sully
& Co., on September 4, 1903.
In connection with 13 checks for a
total of about $780, 900 received from
Sully & Co., to Hawleys order during
the five months including March of
this year, the witness identified vouch-
ers signed by him or his secretary.
Questioned by Mr.. Root the witness
said the purchases of cotton by Suily
& Co., in which he was concerned,
were made with his knowledge. M.
Ray, however, had given such orders
on his, Hawley's, authorization. Haw-
ley said that he and Mr.. Ray frequent
~ met at the Waldorf hotel and that
they discussed the cotton market. Mr..
Hawley told OF a dinner at the Wal
dorf at which there were present John
w. Gates, Mr. Ray, Mr.. Sully, Mr.
Burchard and himself. Mr.. Gates gave
the dinner, he said, and they talked
cotton. AS result of this, he said,
an order was given to purchase $1,000
bales of cotton for the account of each
man present.
The day before the Sully failure the
witness told Sully he would furnish mon
ely to protect his. Hawley's, account.
Prior to March II nothing about margins
was done because it had not been neces-
sary. The market always advanced after
he had purchased, the witness said.
Please tell me what took place on
March 17?'
Mr. Sully came to my office to walk
home with me, but returned to his Of
fee He was to meet me later at the
Waldorf and he said at the Waldorf he
might need money. 1 told him would
protect my account.
Did Mr. Sully indicate that he needed
money, aside from your account
DO you know what he needed the mon
ey fOr?''