The Washington herald., 1911-04-29

for Mr.. Sully. and Attorney Philip Walk
er. Mr.. Hammond's representative The
hearing took place in the ONCE Of Dolph
B. Atherton. one Of Mr.. Hammond's CO.
defendants. In the Union Trust Building.
Glancing around the room. Mr.. Cuttings
made the request Of the examiner that
all those not directly connected with the
suits be excluded. There were a number
Of newspaper men present. the son Of
Mr.. Hammond. one Of his secretaries. and
others. Attorney Walker objected. and
the hearing began with no one leaving.
Attorney Cuttings requested the examiner
to make note Of his demand.
Proposed Cotton Company.
Being asked to relate what took place
at the first interview or meeting he had
with Mr.. sully. Mr.. Hammond said he
met Sully in the spring of 1903. Sully
said he proposed to organize a company.
establish cotton warehouses. and build
cotton gins. Hammond said he had q
great deal of business on hand; that he
could not judge the merits Of the scheme:
that he did not care for profits; that he
would cooperate with him and Give him
letters Of introduction to friends in the
South. who were competent to Judge; that
II they reported favorably and showed
confidence in the financial merits Of the
scheme. he would then endeavor to put
him (Sully) in touch with other parties.
Hammond told Sully that he CHammond)
would not assume any responsibilities,
but that he would spend a few thousand
dollars IL necessary in the way Of ex-
aminations and tests.
THE Doremus gin proposition was not
included in our conversation" said Mr..
Hammond. John J. Welsh. Of New
York, first called my attention to the
Doremus gin. I brought Sully and Welsh
together and told Welsh that Sully was
competent to Judge in these matters.
Welsh said it was undoubtedly a valuable
gin. but I do not recall that he said 1t
was a commercial gin."
Mr. Hammond testified to seeing the
gin the latter part of October. 1909. after
his teturn from California. in this city.
day. and that both were tested. but that
he had no knowledge of either.
Objected to Blanks.
'I strenuously objected to the issuing
of blanks inviting investments" said Mr..
Hammond, ''on the ground that the COM
pany was not ready to sell stock to the
public"
A copy of agreement Of purchase" Of
preferred and common stock of the Cen
eral Cotton Securities Company was
placed in evidence. also an agreement
between John P. Miller on the one hand
and Hammond and Sully on the other,
dated December 2S. 1909; also agreement.
dated January 7, 1910, signed by Sully,
Hammond. Atherton, NJ. d. Rogers, and
Harris Hammond Hammond stated he
had no knowledge Of the Doremus Hold
ing Company. and had no interest in II.
That Mr.. Sully put 5000 which should
have been used by him IN the business
in his private pocket, and never reim-
bursed him. was the statement made by
Mr.. Hammond. A cable from Sully to
Harris Hammond in this connection was
produced.
A telegram from Sully to Hammond,
dated Boston. September s, 1910. read:
Have been successful in selling foreign
rights Of gin contract and money paid; !;
am now negotiating with the same people
for American rights"
He absolutely lied to me in stating
that the money had been paid" said
Hammond.
Puzzle Letter Produced.
letter from Sully to Hammond. which
the latter pronounced a puzzle, was
placed in evidence. 1t was dated October
II, 1910 and read:
Pardon my intrusion, but you and I
are fully aware that the value of in
dividual opinion and service within all
spheres of useful activities are deter
minable quantities. The solution of i'm
portant questions involves careful con-