Arizona republican. [volume] (Phoenix, Ariz.) 1890-1930, 1913-10-01
Melville B. Fuller Says
Governor Told Him His
Wife Had Loan With
Now Defunct Trust Com
pany Of New York.
MONEY BORROWED
TO PAY NOTE
Also Claims SuIzer Had
Personal Margin Account
Later Changed to Loan
Transaction On Which He
Lost Thousands.
ASSOCIATED PRESS p1sPArcHl

ASSOCIATED PRESS DISPATCH
ALBANY, n ". Sept 3O.-F.vi-
dence of Governor Suffers stock
transactions with the New York
brokerage firm of Harris & Fuller
for the account of Mrs SuIzer. was
disclosed today a the trial of his
impeachment. The articles Of i'm
peachment charge that the governor
made use Of some of his unreported
campaign contributions in these
transactions,
Melville B. Fuller, head Of the
firm said the governor told him
that Mrs. Sulzer had a loan with
the now defunct Carnegie Trust com
pany of New York, and in order to
take up the loan, for which he had
given note, he had deposited Sc
curities belonging to Mrs. SuIzer
with Harris & Fuller and borrowed
money thereupon to pay the note
The governors account with Har-
ris & Fuller, which the impeach-
ment managers charge was a mar
ginal or speculative account. and
not a loan account, was opened in
1910, according to the books of the
firm. which Fuller presented TODAY.
The Carnegie Trust company. it
was recalled today, was in financial
difficulties that year, and subse-
quently failed. The account not only
showed a long series of borrowing
on securities brought to the firm by
Sulzer, but also the purchase and
sale of other securities calls for
margin" and deposit by SuIzer
of cash payments in response to
these calls.
The sixteen thousand dollars cash.
which the impeachment managers
claim formed part of the governors
campaign contributions, was used in
meeting these calls for margin" ac-
cording to the books. Finally IN
July, 1913, Lieut.. L, NJ. JosephthaI,
a New York banker and a member
of the governors staff. came to his
rescue by paying off a debit bal
ance against the account of S26.739
and taking up the securities At
this time the governor put into his
account according to the books.
$73.439 in stock or cash. and his net
loss, excluding the amount raid by
JosephthaI, was sS.414.
Fuller denied today that to his
knowledge. Mrs. Sulzer ever had any
thing to do with the accounts and
said he had never seen the note
authorizing the closing of the ac-
count presented b1- Josephthal until
it was shown to him when he was
called before the Impeachment man
ayers in New York The note had
been delivered to his partner, he
explained.
In controversion of the character
ization of the account as loan,
counsel for the governors accusers
drew from Fuller the statement that
on December 80, 1912 two days be
fore the governor was inaugurated
the debit balance account had heen
entered as loan by the firm TO the
governor This balance was ap-
proximately $4,000. Fuller admitted
it was q bookkeeping transaction
purely, described as a cross en-
try which prevented the use of the
stocks as collateral for the firms
routine transactions. the banker ex-
planned
How did YOU come to do it?" he
was asked.
Probably" he replied, because
my partner thought it was not wise
to have securities going around the
streets in William Suffers name"
With Fuller on the stand counsel
for the assembly managers also be
gan 70 lay the foundation for proof
of the charges in the eighth article
Of impeachment. that the governor
used his official position to affect
the current prices of securities listed
on the New York stock exchange, in
which he was speculating. The