The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1904-07-14

Ray, Alleged Partner, Thus Ex-.
plains the Joint Ac-
count
KNEW MI, BUT DIDN'T OBJECT ]
Witness Tells Some Things That
Happened on Day Before
tile Failure. II

s NEW YORK, July 13.-Frank II. Ray,
who, creditors Of .. u. SILLY allege. wa o.
partner Of sully, was before McGrare
Coke, referee, to-day for examination u,
the hearing In bankruptcy OF the cotton
brokerage firm OF y. J. sully and Cons Z
5pany. Mr.. sully was present when the
hearing opened. In response to questions
from Mr.. Boothby. OF the counsel for the he
trustees. Mr.. Ray said he Is ice-presl-
dent OF half dozen affiliated tobacco
companies, and has known Mr.. sully more
i than a year. He was at Mr.. sully's office
but twice, and with David Hawley. He
could not remember the ofilce address,.
q Mr. Ray said he had transactions with
Dbl. Sully8 and Company, the firm buy
Ing and selling cotton futures for him
He communicated With the firm by tele
phone. but never In writing, and met
Mr. sully at the Waldorf. MI. Ray said
ifle/ frequently met Mr.. sully In Mt MI 4
IHawley's apartments. III "a s
Kept His Accounts Wrong.
Producing u statement Of the business
done with sully and Company, counsel
asked Mr.. Ray concerning an item sh W.
Ing that on March Sth 10. 900 lbales OF
cotton were bought for Joint account !, q
r., IL Ray and y. j.. ( Sully.'' Tho Wit
ness said that was the way Sully kept
4 his books, but that It was wrong. lie
knew sully kept the account hat We VI
but he did not object. It was not unit
aftersthc failure, Mr.. Ray said, that he
noticed that the statement sent to him
showed 1t was for joint account
In reply Ito other questions by8s Mr. MI
.Boothby, Mr.. Ray said \ he was q a ways
particular about his ord crs, cause sew
seral other persons were interested IN
/: every 1deal ne made. About another
transaction, Mr.. Ray said he took hair
& purchase Of {, 100 bales sully had made,
for 1iawley and Ray and Sully. after
Mr.. fIawley had republic ted his share
THE talk was over the telephone and
Mr.. Ray expl ided that he thong ht& NJ
ESully sd idLfivet or seven hundred pa les
and sit was not until q sta tement was
rendered that he { saw the III ure were
s. 7Dp Tho stat ement was made OUT as as
the former statement, to toints account
No. So
Rode With Sully. y
you see Mr.. sull March 18th !s,
asked Mr.. Boot by. s y; y.
II aid rode down as far as u Fifth
Avenue, my Office, In his q toH1o o.! DIG
Mr.. IIawley was there also "A 4.
Soully
~. VI, DC arred during that rid
3E an 2 N SULLIVAN to- buy cott on He
"a ID lie would RI take II, 900 bal s = MT
,ia wley and II would take s15, 90:
did you blu y :? i,
Mr.. Hawley said he did not want AM y o
Etuy any more. but ! told him IT looked !si
good to me, and we a greed to tak g o0o
tales each ...
o1,ar ado
ssss.sully told me over the phone 30, 600
tales had been bought. think it was
part Nav ana part June delivery.
Il Mr.. Ray said he met Mr., sully again
ga rlyg In the evening az dln g:
Ia ter in the evening. Mr.. sullyS came
10 Mr. IIa Wiley s house. where I wa and
Il suggested buying more cot ton. i5l told
him / had enough. He told MIR. Hawleys
cotton looked weak and he would need ed
some margin. SnIly said II the market
fell a cent. $3.50 900 would be needed TO
carry It. s5 IS 4sss
ibid Mr.. sully say he would need g
large amount Of m oneyt next da "
did not hear him say SO: II III. y
...Were thereinos papers showing the la
bilities OF the sully firm e.
Jo.'' n " 81
II o statements ma de r. EN- S.Sis KS IS
ONLY when Mr.. Sully spoke OF mar
Gin IL told him to consolidate my ac-s
counts and he would find margin enough.
Mr.. IIawley said he could to ke# ca re- IS, Of
his holdings, and that lie was wort h two
and a quarter million dollars. Next 3da W
the day OF the failure. Mr.. Sully$ called a q
Mr.. SHawleys house, " where Mr.. Ray
had slept and drove him and Mr. IEiaR--si
ley down town in his automobile.
.''What did You I ak a bout 2 'Sg
Decided to Sell.
I've told u Mr.. sullys we had made up
our minds to sell our cotton sully want
ed \ to know what we meant. and Mr..
Hawley told him we had de ided to sell
the cotton hut II <he did not want to-
sell 1t, he could bly, All right ,,s he
replied aftersa moments Thought. III
take IT, we lie It him at the w ldorf
and as we left ii said II understand you
take all my colt and he said 7 hats 81
1t. 5sj ;tg u sE
55Ss' did vol, sell any cotton that day?
3s,.tYe s; u sold, through a broker, 1000
bales. was long $500 or 3, 900 bales In \
another offlce than sully's..'''s III 5
y Mr.. Ray could not say at what q price
he covered himself. The hearing was
a Il 3oirp ad a fI,is potn amt n IIv ODD a.