The Birmingham age-herald., 1913-10-01
Deposited Securities With
Brokerage Firm to Pro-
tect Loan Made to Mrs.
SuIzer, Is Claim
HEAD OF FIRM OF
BROKERS TELLS OF
TALK WITH SULZER
Executive Declared Securities Be-
longed to Mrs. Sulzer--Borrowed
Money to Escape Annoyance of
Making Notes-Story of Governors
Losses Brought to Light

Albany, n. ". september 3O.--isvs-
dence that Governor suffers sfoes
transactions with the New horis broiS-
eragc firm of Harris Il Fuller ,yere
for the account ofs Mrs. suizer syas to-
day disclosed Mt the trial Of his Ina
parchment. The articles of inVcnch-
mcnt charge that the governor made
use Of sosae of his interpreted rnm-
paIgn contributions IN these transne-
tfons.
Melville b. Fuller head Of the firm,
said that the governor had told him that
Mrs Sulzer had loan With the now
defunct Carnegie Trust company OF New
York and that in order to take up the
loan, for which he had given his note.
he had deposited securities belonging 10
Mrs suIzer with Harris x Fuller and
borrowed money thereon to pay the
note.
| Fuller said the governor had told him
this in the executive mansion in Albany
on July 80 last. when he had called there
at MIR. Suffers request. after receiving
subpoena to appear before the Fraw-
ley investigating committee.
Mr.. Fuller you know that these se-
curties were Mrs. suffers. don't you?''
the governor asked him, according to the
witness.
The broker said he replied in the mega
tive.
2" Well said the governor, these ge-
curitles belonged 10 Mrs suzer when
brought them 70 you Fuller testified,
Requested to Give Note
. she had a loan with the Carnegie
Trust company. They required me %
give note every three months. and it
was very annoying. SO took the securi-
ties down to you and borrowed the money
from you
Il said to Governor Sulzer, That may
all be true. There s no evidence Of
anything of that kind on my books and
cannot be proved by me. If it is true.
you'll have no trouble in proving it, as
the books Of the Carnegie Trust company
must be matter of record
The governors account with Harris &
Fuller which the impeachment managers
charge was a marginal or speculative ac-
count not loan account, was openel
In 1910, according to- the books of the
firm, which Fuller presented today The
Carnegie Trust company, 1t was recalled
tonight, was in financial difficulties that
year and subsequently II failed. The ac-
count not only showed a long series OF
borrowing on securities brought to the
firm by sulzer, but also the purchase
s..alI f<t-
margin and the deposit by Sulzer IT
cash payments of stock I'm response TO
these calls. The account began In June.
1910 when the governor deposited 100
shares of big Four worth at the then
market price $500, and obtained thereon
a $4,000 loan. The next day. however, he
bought through the firm 100 shares OF
the same stock against which lie gave
no security except the equity In his first
100 shares
Tried to Keep Up Margin
Then Big -Four began to tumble In the
market and the rest of the account was
a record Of efforts by Mr. Sulzer to keen
up the margin, as disclosed in letters
Harris & Fuller wrote to him. using that
term in demanding that the dehcit IN the
account be made good.
Sixteen thousand dollars in cash, which
the impeachment managers claim formed
part of the governors campaign contr5>
buttons, were used in meeting these Calls
for margin, according to the books.
Finally, in July, 1913. Lieut. H. NJ Jo-
sephthal, a New York banker, and a
member of the governors STAFF, came to
the rescue by paving off debit against
the account of $26.739 and taking up the
securities. At this time the governor
had put Into the account, according to
the books. s73.439 In stock or cash, aud
his net loss. excluding the amount paid
in by Josephthal was sstf4