The Birmingham age-herald., 1904-07-14
RAY SAYS IT WAS
 NOT JOINT ACCOUNT
CREDITORS CLAIM HE WAS PART NER WITH SULLY IN HIS TRANS ACTIONS, BUT WITNESS DENIES THE ALLEGATIONS.

New York, July 13-Frank H. Ray. whom creditors of D. J. Sully say was a partner of sully, appeared before McGrane Coze, referee, today for examination in the hearing of the bankruptcy of the cotton brokerage firm of D. J. sully & Co. MT. Sully was present when the hearing open ed. In response to questions from Mir. Boothby, of counsel of the trustees MT. Ray said he is vice president of half dozen affiliated tobacco companies and has known MT. Sully more than year. Although he was at Mir Sully's office and then in company with David Hawley, he frequently met Sully in Hawley's apart ments. He could not remember the office address.
 MT Ray said he had transactions with D. J. Snlly Co.,, the firm buying and selling cotton futures for him. He com nunieated with the firm by telephone. but never in writing
 Producing statement of the business done with Sully & Co.,, Mr Ray was asked concerning an item showing that on March 5, fifteen thousand bales of cotton were bought for Joint account of F. H. Ray and Daniel J. Sully." The witness said that was the way Sully kept his books, but 1t was wrong. He knew Sully kept the account but he did not object.
 It was not until after the failure MT. Ray said, that he noticed that the state ment sent to him showed 1t was joint account. To other questions by Mn Boothby, MT. Ray said he was always particular about his orders because sev- eral other persons were interested in every deal he made. About another trans action Mr. Ray said he took half a pur- chase of 6700 bales Sully had made for Hawley & Ray and Suly, after MT. SuIly had repudiated his share. The talk was over the telephone, and MT. Ray ex- piained that he thought Mir. Sully said 800 or 700 bales, and it was not until a state ment was rendered that he said he mo- ticed the figures were 670O. The statement was made out as the former statement, joint account No.l S."
 Did you see Mir Sully on March 172 asked MT. Boothby.
 T did. I rode down as far as il Fifth avenue, my office, in his automobiles; Mr. Hawley was there also
 Mr Sullys failure was announced on March 1S.
 What occurred during the rider"
 MT. Sully wanted to buy cotton. He said he would take 15,OOO bales if Mir. Hawley would take 15O0O."
 Did you buy?"
 MT. Hawley said he did not want to buy any more, but told him it looked good and we agreed to 75OO bales each
 Was the cotton purchased?"
 MT. sully told me over the phone 3O,00 bales had been bought. I think it was part May and part June delivery"
 MT Ray said he met MT. Sully again early in the evening, adding.
 Later in the evening Mir. Sully came to MT. Hawley's house. where I was and suggested buying more cotton. I told him had enough. He told MT. Hawley cotton looked weak and he would need some margin. Sully said if the market fell cent $s50,OOO would be needed to carry it.'
 Did MT. Sully say he would need a large amount of money next day?''
 "l did not hear that; l did noE hear him say so.'
 Were there no papers showing the liabilities of the Sully firm?"
 "No.'
 No statements nader
 Only when MT. Sully spoke of margin. l told him to consolidate my accounts, and he would find margin enough. MT. Hawley said he could take care of his holdings, and that he was worth two and quarter millions of dollars. Next day
  at MT. Hawley's house where MT. Ray had slept and drove him and MT. Flaw ley down town in his automobile."
 What did you talk about?'
 We told Mir. Sully we had made up our minds to sell the cotton. Sully want ed to know what we meant, and Mr Hawley told him we had decided to sell the cotton, but that if he did not want to sell it he could buy it."
 ( A .s-~ . IL thought; 'Tll take it. We left him at the Waldorf and as we left said: You un- derstand you take all my cotton and he said, that's it. "
 Did you sell any cotton that dayg' "Yes, I sold a broked 5000. I was long 25O0 or S5o0 bales, in another office than Sully's."
 MT. Ray could not say what price he covered himself. The hearing vas ad- journed at this point until July %