New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-04-08
GATES SHARED PROFITS.
BAWLEY YIELDS TO ROOT.
Tells Gains IN Suuy'S Pools, but Is
Vague on Joint Accounts.


hfr, with Frank Il. Ray and Daniel J Sully
were Of such character as &c make MessrB
Eavlev ana Ray liable for come OF the Suly
obligations. was sesrchingiy questioned again
Yesterday by Mr.. Root. at the adjourned hearing
before United States Commissioner Alexander
sitting a special examiner. MT. Hawley IN
the course % the examination. told an interest
Ing story OF daily conferences, extending over
many weeks. between MI SulIy. Mr. Ray and
himself al the Waidorf-Astoria- where the day
to-day moves were planned: disclosed from his
checzbook his profits. some OF which were shared
by John X. Gates and others. as well as By
Frank H. Ray; and described Sully's appeal for
financial aid last month. which the witness and
Mt. Ray answered by selling their own cotton
holdings. the failure following. Pressed for a
definition Of his own conception OF Joint ac-
count" Mr.. Hawley would not commit himself
to any int5Iligibly positive statement Of his
views or the subject.
aIr. Eawiey had his oheckbook with him yes
terday. and n answer to questions. practically
G repetition Of those asked ct the first hearing
with others added. Identified many entries show
ing that he distributed or deposited to his &C
coun, individually many large amounts received
ny check from Daniel J. sully & Co. Between
November. 1903. and March. 1904. inclusive. the
witness identified checks amounting to about
$4,000 received from Sully g. Co. Parts OF
Feveral Of these amounts received were paid by
the witness ne testified. 20 Frank II Ray. IA
c. Weir and John w. Gates. Mr.. Ray. however
according 70 Mr.. Hawlev's testimony was the
chief participant in the profit sharing. John w.
Gates received S4ESS0 the same amount paid to
A Y Burchard and L c Weir on January %
These were pool profits IN a 10000 bale pur-
chase.
WHAT THE CHECKBOOR SHOWED.
80. -,---.o,-+ .o~o-sfDo IN
the checkbook. was S4S.9G8 GO. the witness re-
ceivnE an equal amount. On March Z. the Wit
ness showed from the checkbook. Daniel J. Sully
& Co had acted as brokers for Mr.. Hawley in the
purchase Of 100 shares Of Merchants Trps- Com
panv stock for $500. on March IS a check
Cor $50 s2o paid to sully & Co. TO bal cot.
g" SO the checkbook shows The witness could
not recall the purpose Of a check for $4,000
paid 20 Suily & Co. on September 1, 1903.
The witness then said Il was his custom 20
meet Nj Sully and occasionally Mr.. Ray al
the Waldorf about o'clock each evening, when
they always discussed the condition OF the cot
ton market. Frequently after dinner, Mr.. Haw-
ley said he consulted with Mr.. Sully at his
apartments, in West Fifty-seventh-st. Occa-
sionauy AIr. Ray would be present Mr. Haw-
ley denied that he had ever discussed the cotton
market al his home with any one other than Mr..
sully OF Mr.. Ray.
WHEN GATES TOOK A HAND.
The witness then told Of having attended a
dinner at the waldorf, in which order 10 pur-
chase $4,000 bales Of cotton was given. There
were present he said, John ". Gates Mt. Ray.
NJ Sully Mr.. Burchard and himself Mr.. Gates
gave the dinner. and they talked cotton As
result OF this he said. order was given to
purchase 10000 bales Of cotton for the account
OF each man present.
Where did you usually meet at the Waldorf
asked Mr.. Root.
In what was known the gold ROOM" an
swered Mr.. HaEley.
Happy augury.~ rejoined oIr. Root, at which
every one laughed. even Mr.. 7Sully.
M Root then asked Mr.. Hawley to give the
exact language or the substance OF each con-
versation he had had with Mr.. Sully as TO the
purchase OF cotton.
That's a pretty general proposition" replied
Mr.. HawIey. I couldn't do it, If you VIII
name a transaction I viii try and recall it."
Nr Root then took up transaction No. : and
asked Mr. Hawley to give the conversation he
had had with Mr.. sully in regard TO that trans
action.
y authorized 10000 bales to my account
cannot tell where the conversation took place.
Mr. Rav was the only other person present.
AIr. Hawley replied.
Of you Go not know where this occurred how
CO yo1 know Mr.. Ray was PRESENT. A-5ecause
Dir Ray authorized purchases al the same uIlie'
believe. .-,.. -. - 49,.
uss57 ~f h,-Y o Sou S5lf tel tel you. -
C.-can you tel me any OF the conversation IN
oo yo einesE , aaytaAing t6@t any one sai1
have Been genera converse lions.
Q-There no writing: A--No .,
c-Are YOU sure thar no one else was present.
Al am.
RAY AND sULLY ~ EQUAL DEALS.
C-was there any express stipulation that Ray
END suily were 70 purchase equal emountsE A
. Did you exact It? At one OF the con-
arranged to order g00OO bales? Yes. -.
g-Nasnt Z on me same Gay lllat ne $500 $500
bales were ordered? A--No tins was on a thurs
c-FioW iong after the other transsctiOn2 A
Q-Where were you at the time7 A-COming
o-7ho was with You? A-suIy and Ray.
- fsiss Ra1 GO les ana suy Is 90 bales?
o.-Was that all that was talked about IN The
carriage that morning. Al do not recall any
the cotton was 10 be purchased A-The price
spec fed a minimum and a maximum limit vas
o,-were you n the. habit Of riding downtown
Q.-when? A.-oh. in December ana January.
sg!ly used 70 can for me,
ali? A.-Oh. yes.
THE DAY BEFORE THE FAILURE.
Anything saia about rnargins7" asked NIr.
Root
Not until the day before the failure. when 1
tole Mr.. suIly would furnish enough money TO
protect my account Prior to March IL nothing
about margins vas done. because it had not
beer necessary. The market always advanced
etier had purchased"
2-Please tell ne what took place on March i.
70 NJ Ss.!g ea5ne 70 my oIlce q walk nome vic