The evening world., 1904-07-13
Frank II. Ray Tsstifies About
Cotton Transactions at Hear
lhg Before Referee .in.Bank-
luptoy Proceedings.
THROWS SOME LIGHT
ON the "J0lNT ACCOUNT
Never Talked with SuIIy on that
Subject. He Says-SevsraI
Other Persons Interested in
the Deals.

Nearing In the Daniel J. suflv bank
pupsey proceedings IVES resumed to-day
hafors NcGrsne Coke. the referee. at
his once. No. G. avn street. Mr.. sully
Gas present TO hear the testimony OF
Ysank II. Ray, who, the creditors A.
hUs. wss his partner In certain Cotton
Exchange transactions. Mr.. Ray has
pspudated tho alleged partnership and
s~opseauent lAbfNty.
Mr.. Ray was accompanied by his
counsel. JOSEPH s, Auerbach. and NJ
sully sat with his attorney. John r
Dos Passo,. Mr.. Boothby. OF counsel
for the trustee. started the sxamina-
don OF TIE witness.
Mr.. Ray said ma IL vice-preslden. 81
halt a dozen sfhliated TOBACCO com-
panies and has known Mr.. Sully mora
than q year. He was at Mr.. Sully's
odbes only twia. He could Vol remem-
Der the once address. He went there
With David Hawley.
Ray TESTIFIED that he had transactions
with Daniel J. sully 4 Co. and that
they bought or sold cotton futures FOR
him. He said he communicated with
them by Telephone or verbally 10 Mr.
suly. but never In writing. He said
he net him frequently In Mr.. Havley'.
apartments.
Talks About "Joint Account"
Did you talk over the cotton market
ct those meetings."
Among other things
But mostly cotton?'
About ons~tenth cotton and nine
tenths other things
Ray said he gave him orders Al those
meetings. He said the meetings we're
between Fsbr uary and May hast, He
produced At Mr.. Boothby's request the
statements Of ,hs business done. sent
10 him by sully q Co. Taking up one Of
The statements, Mr.. Boothby said:
Il notice that this statement shows
en March . that 1900 bales OF cotton
we're bought, FOR Joint account OF $. and
y. II, Ray n Daniel J sully, What
does that mean"
That was the way hs kept HI. books.
but 1t was wrong" replied Mr.. Ray.
He admitted that he knew the &C.
count vas kept that way, but dd not
The account was for Nav delivery
and showed a profit 10 IN sjoint accouu,
% Hiss. Half OF that account was Nj.
RAY.
eoy the 1000 oalss' Mr.. Boothby
No; gave him an order to buy and
TO sell my share OF the i5,00. | think !
ordered 5000 and then a,aD shares. do
not remember the exact transaction"
Cheek Never Reached Him. He
says.
IL was not until after the failure, Mr.
Ray said, that he noticed that the
statement sent to aim showed ID wa
FOR Joint account" Two or three state.
nents OF his transactions With Mr.. Sui.
Hs arm. Mr.. Ray said. had asyer
reached MIN. He had asked over the
telephone, Tor a statement TO show what
cotton had been bought and sold for hi.
account.
He said he never talked IN sully On
ths subject after the cotton was bought
ana that he never got a check for his
Stare OF that transaction.
To other questions by Mr.. Boothby Mr.
nay said he was always particular
'FF'h we VAlFirs V-eth-t NfNfIhl Ollcl
persons were interested in every deal
he made.
~ pool quried Mr.. Boothby.
did not say a pool repl ed tie
witness sternll.
ABOUT another transaction Mr.. Ray
. ssio ne took half a purchase Of $50
nd'es suily had made for Haslev, Say
- s'hIN. .lr. Hawity epualltel =.
snare, saying he had given no ~instruc-
uohs Tor the purchase, and Mr.. Ray,
a. Mr.. Sully's request. said he would
take half the lot II Sully would take
the other half.
The talk VAS over the phone and
az. Ray explained that 10 thought NJ.
sully said six or seven hundred bales.
and II MAS not until a statement vas
900. "
Mr.. Ray said he kept no sepsrate ac-
. OF cotton transactions and that
mere never Has any written agreement
between him and sully.
Saw sally Day before Failure.
Did you Sc Mr.. sully on March li7'
asked Mr. Botohbv.
II did. | rode down as far as 40.
III FIFTH avenue. my once. In his auto.
mobile. Mr.. Hswley was there also.
Mr: syilys failure was announced on
What occurred during that ride
MI. sully wanted TO buy cotton. He
said he would take 1900 bales Of Mr..
Hawley and | would take 1900. Mr..
Hawley said he did not want 10 buy
any more, but | told hin. Il looked
good and We agreed 10 take 100 bales
each"
Was the cotton purchased"
Mr.. Sully told me nver the 'phon,
h,eO bales lad been bought. think IL
vas part May and part June delivery
Next day. tn. day AFTER thu tailur,
Mr.. 6ully called at Mr.. Hswley's house
where Mr.. Ray had slept. and drov,
him and Mr.. Hswlsy downtown In Nj,
automobile. He said they told Mr.
sully they had made up their minds /,
sell their cotton and that Sully and
he'd take Il.
did you sell any cotton that day-
y ives. sold through 4 hrak.r 30,
bales. was long 400 or 500 bales II
smother once than Sully's"
Mr.. Ray could not va at what pricl
kf covered himself. III. hearing wa
adjourned st this point until July p.