The Democratic banner. (Mt. Vernon, Ohio) 1898-192?, 1913-08-12

Evidence Sufficient, According to
Chairman Frawley of the lnvest-
eating Committee, to Warrant Pro-
ceedings Against the Governor For
Alleged Violation of the Corrupt
Practices Act-Executive Silent.
New York, Aug. 9. - According to
the testimony adduced at the hear
ings of the Frawley legislative COM
mittee, Governor William Sulzer was
nearly $4,000 in debt as the result
of stock market speculations at the
time of his nomination and used con-
tributions to his campaign fund to
make additional purchases of stock
while this debt was hanging over him.
According to Senator Frawley,
chairman Of the committee, the evil
dence brought to, light is sufficient to
warrant proceedings to impeach the
governor for violation of the corrupt
practices act
The committee closed its hearings
to consider what action should be
taken. A decision is expected by
Monday.
The governor, according to the evi.
dence, had dealings with three differ
ent stock exchange firms, and was
saved from being sold out by one firm
by L. M. Josephthal, Wall street
banker and member of the COVER
nor's staff as naval reserve aid. Jo
sephthal, it was brought out, paid a
debit balance of $26,739 still standing
against the account on July Is last
This was after the governor had re
ceived repeated calls for more mar
gin.
The governors transactions with
the other firms were for cash, and il
was in connection with one of these
that Governor Sulzer, according to the
evidence, used campaign contribu
tions.
WI at Testimony Shows.
Arranged chronologically, the testl
mony appeared to show that on Jan
/, 1912, there stood on the books .ot
the stock exchange firm of Harris
Fuller an Indebtedness of $4S,59t
against the purchase by Governor Sui
zer of 500 shares of big Four" 2O(
shares American Smelling and Rein
ing company and 100 shares of South
ern Pacific. This testimony was giver
by Melville B. Fuller, a member o.
the firm. There were no other pur
chases of stock recorded on this ac
count, according to the witness, unit
Dec. 8, 1912, when the governol
bought 100 shares of big Four,
making 600 in all. On Dec. IL, tn,
/ firm, according to letter produced
by the witness, made it's first call OIL
the governor for more margin. TIL,
books showed that on the Nov. 18 pre-
vious the governor had paid in $4,000
against the account, and that on Dec
16, apparently in response to the cal
for margin, he paid $4,000 more.
In October the same year, the evi
dence indicated that Frederick Col
we'll, the governors alleged dummy,
purchased from Boyer, Griswold 4
Company 200 shares of big Four
railroad stock outright at 60, for $12
025, the $25 representing commission
This was at the height of Mr.. Sulzer'
campaign for the governorship, an
transcripts from the firms book
showed the stock bought on Oct.
was paid for partly in checks, at leas
two of which were identified in tn
testimony as Sulzer campaign contr
buttons. There were seven checks il
all, and the others are charged b
Eugene L. Richards, counsel for tn
committee. as having been also cair
paign checks.
Seen at Albany. the governor df
clined to comment on the testimon
developed before the Frawley CON
mittee.