New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-04-02
DEALS INVOLVED MILLIONS.
EDWIN HAWLEYS EXPLANATION OF Joint 9" AND
Joint 5" ACCOUNTS IN SULLY TRANSACTIONS.
Gain of s1000 in One Operaiona Woman Said to Haze Been
Member of Pool-Hoc the Duded

The effort of the receivers of the failed cotton
firm Of Daniel ]. Sully G. Co. to establish their
contention that partnership relations existed
between Daniel j. Sully and Edwin Hawley and
Frank II. Ray, a condition which, If proved TO
exist would have the effect of causing Messrs
Hawley and Ray TO be held accountable for the
satisfaction of considerable share Of the Sully
liabilities, had its public beginning yesterday,
when Mr.. HaYley was examined for two hours
before United States Commissioner Alexander.
sitting as special examiner by direction of the
United States District Court Mr.. Hawley. who
questioned by Elihu Root of counsel for the
receivers. freely admitted that in various pur-
ohases and sales OF cotton in the course of the
last few months he had been associated with
Mr.. Ray and Mr.. sully, but firmly denied that
any relation had a. any time existed between
himself and Mr.. sully other than that OF GUS
toner and broker.
The examination. which began at a little after
II o'clock. was held in Room s. the bis. court
room the third floor of the Federal Building
Commissioner Alexander arrived promptly on
the hour. Soon afterward came Julien T. Da-
vies and Joseph s. Auerbach. OF Davies Stone
& Auerbach. counsel for Messrs. Hawley and
Ray. lust after them Messrs Taft and Miller
the receivers. entered the room. accompanied by
Mr. Root and by John r. Dos Passos. Mr.. Sui
ly's attorney. Representatives OF the firm of
Turner. Ralston & Horan. attorneys for s. NJ
Weld G. Co.. one Of the creditor firms and OF
Guggenheimer. Untermyer & Marshall. attor-
neys for the creditors committee. We're among
thA lawyers present. Mr.. Ifawley and Mr. Ray
sat together Mr.. Suly came in after the ex-
animation had begun. In the large crowd OF
spectators many members Of the Cotton
Exchange which closed because Of Good
Friday. Among them were President McDougaIl
and J. Temple Gwathmey.
Mr. Root announced that Boothby & Baldwin
were present as counsel for the receivers in the
bankruptcy proceedings against u. J. Sully &
Co. and for the applicants in the bankruptcy
proceedings. He formally opened the proceed
ings by reciting the facts relating 20 the bank
ruptcy application and the obtaining of the
order for the examination OF Messrs Hawley
and Ray
READY TO RESPOND.
Mr.. Davies responded that although Messrs
Hawley and Ray had been served only on Thurs
day afternoon, they were both IN court and
ready to proceed. They had, In spite OF the
short notice. brought with them everything in
the way of records called for in the subpoena.
excepting one check given by Mr.. Hawley TO
Mr.. Sully on the day before the suspension.
This he was unable TO bring but he would OBJ
tain it as soon as possible from the bank
Mr.. Davies added that while he had grave
doubts of TIE right of temporary receivers to
call witnesses before the adjudication by bank
ruptcy, because Of the anxiety Of many per-
sons and the general interest in the case the
two witnesses were willing TO he examined es-
pecially they had nothing 10 conceal.
Mr.. Dos Passos Informed the examiner that
Joseph F. D. Junken. of Philadelphia, as
sociated with him counsel for Mr.. Sully.
After several other attorneys had had their ap-
pearance noted, Mr.. Hawley was called to the
stand. and the examination by Mr.. Root began.