River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1913-08-14
SAY SULzER USED
FUNDS ON CHANGE
STOCK SPECULATION WITH
ELECTION MONEY CHARGED
TO N. Y. GOVERNOR.
BROKERAGE FIRM TESTIMONY
Evidence Held Sufficient to Impeach
by Senator Frawley, Chairman of
Legislative Committee-The
Evidence Presented.

New York, Aug. 11-Governor VIII
liam Sulzer of New York was nearly
$4,000 in debt as the result of stock
market speculations, at the time of
his nomination and used contributions
to his campaign fund to make addi
tional purchases of stock while this
debt was hanging over him, according
to testimony adduced at the hearings
of the Frawley committee of the leg
islature.
The evidence brought to light is
sufficient, according to Senator Fraw-
ley, chairman of the committee, to
warrant proceedings to impeach the
governor for violation of the corrupt
practices act. The committee closed
its hearings here to consider what
action should be taken. A decision
is expected at once.
The Evidence Presented.
The governor, according to the evil
dence, had dealings with three differ
ent stock exchange firms and was
saved from being sold out by one
firm by l.. M. Josephthal, a Wall
street banker and member of the
| governors staff as naval reserve aide.
Josephthal, it was brought out, paid
| debit balance of $26,275, standing
against the account on July Is last.
This was after the governor had re-
| ceived repeated calls for more mar
gins. The governors transactions
with the other firms were for cash
| and it was in connection with one of
these that Governor Sulzer, according
to the evidence, used campaign con-
| tributions.
Arranged chronologically, the testi-
mony appeared to show that on Jan.
/, 1912, there stood on the books of
the stock exchange firm Cf Harris &
Fuller an Indebtedness of $48,599
against the purchase by Governor
Sulzer of 500 shares of Big Four"
200 shares American Smelling and
Refining company and 100 shares Of
| Southern Pacific. This testimony was
given by Melville B. Fuller, member
of the firm, who on Wednesday had
refused to answer the questions of the
committee.
| Lips Are "Unsealed."
Before testifying, his counsel stat
ed that the governor had agreed that
| "Mr Fuller's lips should be unsealed."
| There were no other purchases Of
stock recorded on this account, ac-
cording to the witness, until Dec. s.,
| 1912, when the governor bought 100
shares of big Four" making 600
in all. On Dec. IL the firm, accord
ing to a letter produced by the wit
ness, made it's first call upon the gov
ernor for more margin. The books
showed that on the Nov. Is previous,
the governor had paid in $4,000
against the account, and that on Dec.
16, apparently in response to the call
! for margin, he paid i'll $4,000 more.
| In October of the same year the
evidence indicated that Frederick Col
well, the governors alleged dummy"
purchased from Boyer, Griswold & Co.
200 shares of big Four" railroad
stock outright at 60 for $12,025, the
$25 representing commission.
This was at the height of Mr.. Sui
Zer's campaign for the governorship
and transcripts from the firms books
showed the stock, bought on Oct. l,
was paid partly in checks, at least
two of which were identified in the
testimony as Sulzer campaign contrib
utions. There were seven checks in
all, and the others are charged by
Eugene Richards, counsel for the com
mittee, as having also been campaign
checks.