The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1904-05-07
.SULLY PUT
ON The STAND
He Gave Clear Testimony Con-.
corning Conditions Existing
Before the Firm Failed.
HOW TRANSACTED BUSINESS
Head OF Bankrupt Concern on
/, the Stand for More Than
Two Hours.
OBy Associnted Press.l

(BSA Associated Press)
NEW YORK, May 6.--The examination
In the D. j. sully and Company bank
ruptcy proceedings was continued to-day
before United States Commissioners Alex
ander, sitting as special examiner;
Daniel j. Suly, tho head Of the firm,
wac called to the stand.
"rhe Joint three account" he said
was a mutual arrangement between Mr..
Hawley. Mr.. Ray and myself to buy
cotton"
sully said that on March 18th, when
he had talk with Hawley and Ray, the
market was going down. He told them,
however, that it would be wise to buy on
a falling market. No amount was mem
toned, but they intimated they would
roy what was needed. Later said Sui
is, IT showed them a. statement, includ-
ing a statement OF my funds. Ray and
Hawleyg both saw It. The joint three ac-
count were carrying about 10000 or 49,
COO bales.
"When ] saw Ray the following day."
said Sul1y. '.he said a drop of cent
meant 81 $4,000 to margin It, another cent
meant another $4,000. He said, we
cannot stand It, Somebody has got to
ybey told me they would close the mar
yin account at 1 o'clock the next day..
They wanted me to take over their share
of the account at 1525 for May and 1886
for July" a
Continuing, he said:
ION March 18th l did not know, but
since ] have learned l was liable for
,425, 900 In margins at 10 o'clock on March
18th. I did not know that the calls had
heen made"
sully said when Ray left him on the
morning of March 18th, he had an opinion
as to what was about to happen. Il
thought he was going to sell the market
out on me" he said.
"Tremendous and heavy selling from
certain quarters during the forenoon
! seemed to indicate to me- the witness
said, that somebody knew what was
going to happen.
! The witness said he kept Hawley posted
during the morning, and told him he did
not fear the market If he could meet the
/ O'Clock margin call. The market had
varied only Is to 20 points when Sully
went to see Hawley at o'clock. SIX hum
dred thousand dollars in addition to what
the firm had in collateral was needed,
and Hawley was so informed. II
"He said he was very sorry. but that
he did not have the money, the witness
testified He said he had heard from.
Ray"
During the afternoon sully said he re-
ceived a letter from Hawley enclosing
| ss2. 100. as the latter's share Of one-third
OF 5000 bales, This letter came about 2
or o'clock. but In the meantime at Las
o'clock. Sully had sent notice to the Cot
ton Exchange that he could not meet
engagements.
The witness told how he said to Hawleyl
that he would have to- have money on
March 18th, and Hawley said he wouls:
give his share.
Sully said he next sawt Hawley and Ray
that evening in Mr.. Hawley's room in.
| Flfty-sevehth Street. II did not know
| he said, "the appointment of an assignee
was virtually declaration of bank
r,lptcy. or would not have considered
it,
The witness said he and Ray alone
were In Joint account No. s. The reg
ular "joint account on which HaWley
was Interested, was reported daily by
telephone to Ray and in writing to HaW-
ley,
In reply to series of questions from
Attorney Junkins. Mr. Sully said that
when his firm began business In 1903 he
thought it would be a great moral and
financial help ito have a man like Ha"-
ley associated with him.
Continuing his testimony. snlly said
| that before he went abroad last sum
mer he gave Mr.. sHawley $4,000. and that
| In September Of last year MI Hhwles
| conducted the sale Of about S6oo,ooo III Sc
curities for Mrs. sully.
sully was on the stand about two and
| a half hours. Tie had no papers. no mem
| orandum to refresh his memory, me
examination was adjourned to next Fri
| day.