The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1904-05-20
HEARING IN surLY cAsE

Bankruptcy Proceedings Continued
Before Referee Coxe-Daniei j.. SuIly
ON the Stand.
New York. May 1.-THE hearing
in the Daniel J.. Sully and Company
bankruptcy proceedings was resumed
to-day before Referee Coke. instead
!, Of United States Commissioner Alexan-
! Ger.
! Mr.. Ssully, who q; the last hearing |
before Commissioner Alexander was
! on the stand nearly three hours. was
| again sworn. He said that the ac-
count with Zerega n Company. of
Liverpool, which appears In h Sully
and Company books. was OF transac- !
tons for Harris, Gates and Company. |
= customers account. 1t represented
dealings in futures for Harris. Gates .
and Company. as customers. but the
dealings were in the name OF Suliy
and Company. The account repre-
ented IN order for the Liverpool
firm to bay. II was ordered sold
through Sully and Company. The
witness did not recall any other future
dealings with Zerega and
He said the spot cotton transactions
with Zerega and Company. previous 10
1904. were on his personal account
except in cases such as th.t OF Harris,
Gates and Company. After January
l, 1904. the ealing We're Tor f W.
Reynolds and Company, through Sully
and Company. Suliy and Com nany, In
turn. bought through George Z. Nc
Fadden and Brother. The Me- 'dden
firm took the Liverpool! cotton o. on
signment and advanced the mone.s to
Daniel J. Sully and Company. re
cotton was sold when Mr.. Sully G.
rected.
He did not recall getting a check
for s194.0Oo about the time ne deiiV-
cred cotton to cFadd and neither
he nor any member of his firm notified
Zerega and Company to sell the Sls4.-
900 account. On the contrary, he
said, Mr.. Cutcheon, attorney for F.
w. Reynolds and Company. notified
Zerega and Company, through the
latter's agents, McFadden Brothers,
not to sell it. If it vas done, 1t was
against the wishes of F. w. Reynolds
and Company. 1t belongs TO Daniel
]. Sully and Company, e~xceptin~ the
equity of F. w Reynolds and Com
pany.
"McFadden told me on the morning
/ following my suspension that Zerega
and Company a sold the futures,
said the witness. He showed me a
cablegram or a copy Of one. McFad-
!, den ordered the sale. 1t was OF fu-
lures 1 had open with McFadden."
Mr.. SuIly said that three weeks ago
he was succeeded by David ii.
Thompson, as president of the F. w.
REYNOLDS and Company. The compa-
nv is capitalized, he said, at S25O,O00,
> all paid in. He, the witness, holds
$4,000 and Mrs. Sully $4,000 of the
4 stock. Sully said F. w. Reynolds and
: Company were cotton merchants, and
. beginning In August, 1908, acted as
agents for Sully and Company.
Mr.. Sully said that AND
: Company operated Independently OF
Sully and Company. though the latter
; firm during January, FEBRUARY ano
> part of March operated largely for the
Providence firm.
q When and where were the arrange
ments made for Sully and Company
to purchase for Reynolds and Compa-
It n.y."
: In my own head" said Sully.
# Amy written contract between tn
two firms?"
No"
If .Ycu sold as an official of the on'
and bought rs an ofhciai OF I'M
:. other?"
II Yes, and Daniel ]. Sully loaned
Daniel J. Sullv and Company the mon
ey to do it with"
What abou interest and conlmis
- sions?"
Interest was charged, or shoult
= have been. The rate OF interest wa
not fixed SO far as 1 remember. tn
commissions went to Sully and Com
pany."
> The examination was adjourned un
IL til May 26th.
le The schedules of liabilities OF l.
,, J. Sully and Company, it was announc
II ed to-day, will be filed in court mex
y Monday.