Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-04-01
PROBING SULLY DEAL
EDWIN HAWLEY AND FRANK H.
RAY ON THE STAND.
Examination Brings Out Some Inter.
esting Developments Of "Joint
Three" Transactions.

NEW YORK, April 1.-The examination
in which Edwin Hawley, the president of
the Iowa Central railroad and the Mime.
arolis ard. st. Louis railroad, and Frank H.
Ray, head of several large tobacco COM
panies, the alleged partners Of Daniel ].
Sully in his cotton operations, are to be
questioned began today before United
States Commissioner Alexander.
To ascertain fully whether or not Hawley
and Ray were practically Sully's partners Is
the object of the examination, and Com
missioner Alexander was appointed by
Judge Holt to act as a special examiner In
the case.
Ordered to Bring All Books, &c.
Receivers Henry w. Taft and David H.
Miller procured the order from Judge Holt
of the United States district court requiring
Hawley and Ray not only to appear today
before the special examiner, but to take to
the examination room all their books and
papers that would disclose exactly what
were their relations to Mr.. Sully. Former
Secretary of War Elihu Root was retained
to question Mr.. Hawley and Mr.. Ray.
AT the opening of the examination Com
missioner Alexander ruled that the exam
ination would not partake of "litigated
proceeding" Mr.. Hawley was then called
Root Just at this time Mr.. Sully entered
the room and took a seat near the lawyer s
table.
Mr.. Hawley gave his occupation as that
OF railroad officer, and upon further queS-
t.oning stated that he is now president OF
the Iowa Central and Minneapolis and st.
Louis railroads, and a partner in the stock
exchange firm of Hawiey & Davis. He tes-
titled that his business relations with Sully
& Co. began in December last and ended on
March 49,
Objected to Examination.
Mr.. Hawley's testimony did not proceed
very far before his counsel, Mr.. Davies,
took exception to Mr.. Roots line of exami-
nation. Mr.. Davies declared, however, that
his client had nothing to conceal and would
answer all questions touching upon his rela-
tions with Sully & Co., or Mr.. Sully person
ally. Mr.. Hawley said he kept no special
record of his cotton operations, relying
chiefly on the statements he received from
Sully & Co. following purchase or sale.
At the request of Mr.. Root Hawley'
lawyers produced a batch of these state
ments. They showed that on December 4.
1903, 10000 bales of cotton were bought and
sold for account of E. Hawley and D. j.
Sully jointly; on December %, 1900 bales
bought and sold for the same account.
There were also similar transactions on a
smaller scale for December "a and q, and
then came a number of statements OF Varl-
Gus dates in January, all representing heavy
transactions in cotton for Hawley's account.
Mr. Root read from a statement showing
tnat in one particular transaction between
Messrs. Hawley and Sully had divided a
profit of $50, 40.
Extent of Sales.
Mr.. Root read from other statements
bearing February dates. In these trans
actions purchases or sales ran from a
few hundred bales of cotton up to almost
10000 bales. Mr.. Root next read from a
long slip of paper statement Of cotton
transactions bearing the names of Messrs.
Hawley, Sully and Ray. He wanted to
know whether or not this paper repre-
sented the joint transactions of the par
ties named, but Mr.. Hawley said he didn't
know.
Took Out His Share First.
Mr. Sully, it was brought out. used to take
his own share of the profits before sending
Mr.. Hawley his share.
number of Joint three accounts CHaw-
ley, Sully and Ray) for the latter part OF
February nearly all representing heavy
sales were next read off by Mr.. Root.
Hawley's lawyers had in court some half
a dozen packages containing the mem
& Company and Messrs. Hawley and Ray.
Another package was reported to be miss
ing.
"Joint Three Transactions.
Mr.. Hawley said there were other trans
actions for "joint three accounts dated
February "A and 81, something over 10000
bales, which netted a profit of $780, 900. Mr..
Hawley said that he did not take his profit
in these transactions. They were credited
to his account
thar int
showing these purchases of cotton-March
g. q, ZOO bales; March 4, 10,4CO; March z,
IA, GOO, and March 8, 7G0 bales.
1t developed during the examination that
the first transaction Mr.. Hawley. had with
Mr.. Suly was in September, 1903, when he
loaned Sully individually 100000 on securi-
ties.
Letter From Hawley to sully.
A letter from Hawley to Sully, dated
March 1s. was read by Mr.. Root 1t read
in part:
IT inclose herewith statement of account,
showing, so far as my individual interest
is concerned, balance due you of $50. .42O,
for which inclose my check.
(SigneO "E. HAWLEY."
Mr. Hawley said that his check for the
amount named was sent to d. j. Sully d
Co.
1t developed that In one of the Joint
three" accounts, known as number five,
Sully had 30 per cent interest, while that
of Hawley and Ray was 25 per cent each
Mr. Hawley here made a brief statement
denying any co-partnership with Mr.. Sully
That phase of the examination, Mr.. Root
replied had not yet been reached.
Hawley Examination Adjourned.
The examination of Edwin Hawley In
connection with the Sully receivership was
adjourned until Thursday, April Z. at II
o'clock.
Japs Place Big Order for Salmon.
SEATTLE, Wash, April 1.-The Seattle
Trade RaPister tomorrow will saw that or.