Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-03-18
Daniel J. SuIIy Claims DAM
ages of John Hays Hammond.
ON CHARGE OF CONSPIRACY
Alleged Attempt to Ruin the Repu.
tation of Complainant.
OUTCOME OF BUSINESS DEAL
Claim Of Profits in Connection With
Sale Of Patent Rights in
Cotton Gin.

John Hays Hammond, special ambassa-
dor of the United States at the corona
tion Of King George Of England, and mil
lionaire mining expert. was sued today
in the Supreme Court of the District OF
Columbia for 81. 10000 damages by Dan
iel ]. Sully Of New York. formerly known
as the cotton king Alleged conspiracy
to ruin Suliys reputation is the basis Of
the damage suit.
With Mr.. Hammond are named as de-
PENDANTS his son, Harris Hammond;
Frank 5. Bright, Dolph r. Atherton. John
p. Miller, William w. Baldwin and G.
Scott Dalgleish.
A conspiracy to ruin his reputation and
character as an international cotton eX-
pert and to deprive him of large profits
in connection with the General Cotton
Securities Company, is charged by Sully
against Mr.. Hammond and his co-defend-
ants. Sully says "he has been greatly in
Jured In international financial circles,
and branded man unworthy OF be-
lief and of no financial integrity by the
actions of the defendants, and Is unable
to secure employment in the cotton in
dustry as q result of alleged misstate-
ments by Hammond and his associates.
Known as Expert.
MIR. Sully tells the court he has always
borne a good reputation, and for ten
years has been known in the interna-
tional commercial world as an expert and
authority on all matters pertaining to
the cotton industry. In the spring of
1909, he states. certain articles appeared
in a New York magazine over his sigma
ture which attracted wide attention
among persons interested in the cotton
industry.
Among those interested, he says. was
John Hays Hammond. at whose request,
Mr.. Sully says, he formulated plan for
the wafehouSing Of cotton, and while SO
engaged had his attention attracted to
the cotton gin invented by Willard D.
auested him to examine the Doremus In
vention and report its worth and prac-
ucahility.
Mr.. suily says he raperted to Mr.. Ham
%sns ssss gee wsu,a snd asyissd ssyG,u
Hanunend - aee1iAtA coatrellins intersss-
A corporation With 4 capital OF 81. 100000
was formed as preliminary step and
ves followed in the fail OF 1909 by the
incorporation In Delaware OF the General
Cotton Securities Company, with a capi-
tai Of $1O,O00.000.
Sully's Share Of Stock.
Dully took 100000 Of the stock under
q voting trust, and In January, 1910. made
q private partnership contract. he says.
with Hammond to divide equally all the
profits arising out Of the contract. Sully
states he sailed for Europe in March,
1910. after being appointed syndicate man
ager Of the company, and sold the Ameri-
can and European patent rights to the
Hirsch syndicate Of London
After protracted negotiations. Sully
said. he again visited London. and. much
Aa~ %r~ ,l.Yn
was advised that the London syndicate
declined to close its option to purchase.
When he returned to America, Sully says,
Hammond avoided him and he was unable
to get an interview with him. Then Sulfy
says he began negotiations with an
American syndicate Of southern cotton
operators. headed by Col W. s. Fordyee
OF ST Louis. for the sale of the stock.
In the interval. Sully asserts. Hammond.
without his knowledge or consent. began
private negotiations with the Hirsch syn
dicate and T. Suffern Taller. New York
cotton operator, for the sale of the Amer
lean and European patent rights.
Conspiracy Alleged.
sully charges that Hammond and his
associates then conspired to defraud him
Of his stock and to prevent his pending
sales by altering the Official records of
tho company at an alleged illegal meet
ing IN washington In November. ISlO
At this meeting, he charges, his con-
tract as syndicate manager was Cancelled,
and at later meeting he was deposed as
vice president OF the corporation. His
stock. both common and preferred. was
cancelled he alleges. and Hammond sent
his co-defendants to st. Louis to Col
Fordyce. and represented. 1t is alleged
that SuIly was a man Of mo financial in
tegrity or veracity and in which no de-
pendence could be placed and it is al
legged did falsely state, through his ennis
saries. that Sully had no power or au-
thority to make any contract for the
company.
Attorneys Cuttings and Chamberlin rep
resent Mr.. Sully.