New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-05-07
THINKS RAY SOLD Hin OUT
ID. J. SULLY ON THE STAND.
Declares He WGs Sacrffced-Sdys
Promised did Failed.

Orleans cotton exchanges had in Il the ele-
inents Of The book end the play recently staged
here The Pit" with the love motive lacking.
Mr. Sally. with no show of excitement. bat IN
mater Of fact tone, expressed the belief that
Prank u. Ray who had shared in the profits
OF the 'Joint three account" knowing that
Suliy stood on the brink Of financial ruin,
pushed him over, by selling out the market
him" AR. Sully asserted that Ray tod him
that some one OF the members OF the Joint
three account must be sacrificed; that il might
wei! be he (SuyD and that, though they
promised 10 take care" Of him afterward, he
oonsenting to bear the brunt Of the blow that
all realized was coming they failed to go 10
his aid.
This testimony Of Mr. Sullys given at
the hearing in the bankruptcy proceedings of
his firm, Commissioner Alexander sitting a
special examiner the Federal Building. He
examined by Elihu Root. ex-Secretary of
War. special counsel for the receivers. The eX-
animation restricted entirely to the Joint
three account" or Sully- Hawley-Ray pool, and
its relation and that Of its members TO the Sully
failure.
Speaking without memoranda 70 refer to. IN
clean cut. concise phrases, Mr.. sully told of the
formation of this pool and of its operations; Of
how they laid their plans In the Waldorf Cafe,
in cabs and automobiles and over the telephone,
and Of how he paid HaNley Sl25 600 az his share
Of the profits OF Sully & Co. of which he was
made a silent member by Mr. Sully. member
who was 10 PUT in capital but was TO have
% per cent OF the profits his share. Mr..
Suly contradicted fatty statements already
made by Hawley.
Mr.. Sully was on the stand for three hours and
half and not once was he tangled or at a loss
for an answer. replying frankly to al ques-
tions and seeming rather to invite the most
searching inquiry than 10 avoid II. When he
left the witness stand he put in HIS pocket, with
laugh. a witness fee Of So.
The witness began by describing the three
sont account" as n mutual arrangement
among Mr.. Hawey. M. Ray and himself TO
buy cotton. He had instructions verbally
every occasion. The agreement was made while
the three were riding in automobile about
March J. Previous to March / he rendered
statements Of the deals to Hawley alone. Re
garding a G0TGO bale purchase for the Joint
account the examination was as follows:
Mr. .Hawley thought It would be advisable TO
have Mr. Gates in the pool, thought the IN inTSe roe
10 10000 bales Were considered ] was about 10 20
S Sn sood f De' to make the purehsse It VAS
talked over by us at the Waldorf and elsewhere for
several days and finally decided 10 do il In the
Waldorf cafe We had decided about it in a general
way in the automobile in the afternoon.
Odd they ask you to buy for them as indi-
Q.-Anything said about separate and individual
Cl-Mere orders your agreement TO pur-
chase FOR your respective selves separately col
lecuvely? Alt was for the Joint account"
deciding 10 make these purchases? Al think /
saw them twice the next day I usually saw them
Q.-Were your purchases the subject Of daily
phone when the market closed.
Q.-Dd YOU report the transactions as gross
transactions did you divide them up? Al
always reported the gross amount.
Q.-Dd you use the phrase. Joint three &C
count,2 Ave never referred to 1t in any other
way.
ON March il witness had two conversations
with Hawley and Ray on the condition of the
pool. He told Hawley at the latters office that
he would have to have money the next day.
Hawley said he would give his share Haw-
ley never put UP margins Witness had put
up 100000 in margins and thought it was
time Hawley ana Ray did something Witness
had about 100000 in cash and securities and
100000 due from customers. He did not expect
that he would need it. but thought it time
Ha%ley and Ray shared the burden with him.
Witness was carrying about $4,000 bales and
could have stood a drop in price
Telling Of meeting Hawley and Ray at the
Waldorf, the witness said:
IIawley. Ray and ! didn't talk about cotton un-
down bur to8 them ii would be Wise @i it s9'5 o
,h aatihg InarKet No amount was mentioned. but
Later, after dinner, they wanted know how
much cotton was carrying / showed them
statement' including statement Of my funds
Ray and Hawley both saw H.
Yes. ] was carrying $1,000 bales for myseif The
s'leent aia no. show What my firm was carrying
carrying? About 1l0C.0 or ll5.O00 bales
0-Dld you say how much money you wanted
Q-when was il needed? AIT o'clock the
s S- How about % s, The pgrehass? AHswiey and
o.-AP;ytiing on March j SAID about using your
,o-sss Ray next day. =. A,-yes. lie said a drop
% een1 meant 81 25eee9 TO Tnargin IL another
stand H. Somebody has got 10 be sacrificeS ~
ought well be you" They told me they woaId
close account after the margin account al o'clock
share OF the account at 1875 for May and 1886 for
,Q-Was the proposition FOR you personally. or
fof your firm At meant me personally ]
asheo the conoltlcn that they would furnish me
Win funds 10 protect myself against further de-
III ~ Wonle nave protected them against any
ring subsequent 10 the o'clock margin call On
rsrch 4 ! did not know. bat since / learned j
1aIch q. i cld not know that the calls had been
made; IN fact thought the price and the mar
OF course, anybody had the right 10 cali anv time
nut die not anticipate on March L our margins
1875 O'clock on the 18Th At Gs o Gers the tRe
prices were l470 10 1890 for MAY and July
.e-On the morning % the 18th. on YOUR way
ing you overe 40: ony as 5nLe ABOUT carry
ley said they would stay i'm untii o,ciocL IT,
hsd agreed 10 furnish money my collaterals and
70 furnish wat other funds were needed carry
.o.1Thai was one Of the conditions to your assum-
ing the joint three account'? A.-Yes.
9-Did they DO &? A-No,
me interests Of Hawley and Ray. what ala they
49, A.1Ihey said they would take care of me
Q.-Mhat were the words7 A-Ray raid. we
- .ake care OF you' as near as can remem-
9;-What did you say, when he said somebody
nad a 60: Al said Il was absurd Ray re-
haa 70 be sacrificed he SAID. and they would take
Z ed -