The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-09-30
Stock Broker TestifieS That He
Changed the Account
OF Sulzer Two Days Before
Governors Inauguration.
PROSECUTION NEAR CLOSE
Defense Probably VIII Be TAX
en- Up on Thursday.
Impeachment Article Seven
Eliminated by the Court.

Albany. Sept. 3O-The books of the
stock exchange firm of Harris & r uA-
err with whom Governor Sulzer deall
for three years, were changed Two
days before the inauguration so thal II
appeared that instead of his account
being a speculative one, the hrrn hao
merely lent the governor money ac-
cording to evidence adduced at ms
Impeachment trial today. Mr.. Mel
willie B. Fuller, head of the hr1n' VINO
produced the books, testlled tnaI M
a cross entry had been made IN the
governors account under date OF De-
cember 80, 1912, showing that th7
firm had lent him $4O,OOO-
These dated back to early IN ISIo
and there was put into evidence let
ters showing that during that time the
firm had repeatedly called upon the
governor for more margin because of
the steady decline of the stocks in
voIVed in the account. Some of the Sc
cIlrities Mr. Sulzer had bought through
the firm others he had deposited as
margin against those he had boughI
and at the same time had borrowed
money on them. His total borrowings.
including the $4,000 debited against
him in the "cross entry transaction,
amounted to S1S0,00O according to the
books.
The cross entry was made, Fuller
testified. because his partner thought
''it would not be wise to have stock
floating around the street in Cover
nor Suffers name. Otherwise, as is
frequently the case in margin ac-
counts, the stock might find its way
into the collateral put up in the firm
transaction with banks.
Attorney KreSel for the 1mpeacn-
ment managers, intimated that this
"cross entry had been made after a
check for $4,000 given by former Gov
ernor A. E. Spring of Montana had
been paid into the occount, and that,
as in a regular speculative account,
dividends on the stock had been cred
tied and interest charged. These lat
ter transactions reduced the COVER
nor's debit balance to about $35, 900
and the second cross entry showed
that on that date the firm had made
the governor a new loan of $4,000
Mrs. William Sulzer had borrowed
money from the Carnegie Trust com
pany of New York and it was to aid
her in her financial difficulties that
the governor borrowed from the stock
exchange firm of Harris & Fuller. This
was the explanation which Fuller said
the governor made to him.
His Memory Bad.
Albany, Sept. 3O.-The end of testi
mony of witnesses for the board OF
managers in the Impeachment trial
of Governor Sulzer was in sight today.
Another day and the last of the wit
nesses will have been heard, the
managers attorneys said, and so by
Thursday. it appears, the court will
begin to hear witnesses in the COVER
nOr'S behalf. Despite the prOSecu-
TONS statement that no testimony on
new features is likely, counsel for the
board may be able to spring a surprise
at the last minute. 1t is known that
detectives have been working on a
new angle of the case, but as yet they
- = Il fhaxr
want. If they fail, more testimony on
the money charges will wind up the
direct evidence of the board.
The charge that the governor mis-
used campaign funds is the one on
which the board of managers case
now appears to rest. Testimony re
gar ding this will be driven home with
all possible force. Up to today, al
most all of the testimony which the
court permitted in the record touched
on the governors money deals. Those
wer named in Impeachment articles
1. and 6. Article I, charging that
the governor bartered his political in
fluence collapsed yesterday when pre-
siding Judge Cullen refused to admit
the testimony. Accusations on which
no testimony has been offered up to
today were included in articles 4, )
and s. The first of these accuses the
governor of practicing deceit, fraud
and using threats and menaces and
being guilty of misdemeanors "in con-
by the Frawley committee
Articles 3 and s.
Article accuses him of dissuading
Frederick L. Colwen his alleged
Wall street dummy from testifying
Article 8 alleges that the governor
used his office and influence corruptIy
to affect the current prices of securi-
ties in which he was or had been in
terested. The testimony of Louis A.
Sarecky. the governors campaign
secretary, and Friedrich l.. Colwell was
expected to touch on articles 4 and g.
Sarecky was subpoenaed several days
ago. Colwell promised yesterday to
testify if guaranteed freedom from
arrest for refusing to testify before
the Frawley committee.
While the prosecution is finishing
Its presentation of testimony Governor
suffers attorneys are preparing for
the introduction of their witnesses
They were happy today over the turn
OF affairs in their favor yesterday
Ihe1r heaviest burden in the case thus
1ar is the fact that the governor never
mas unburdened himself fully to them
HIS attorneys do not believe that he
mas wllfully misled them or concealed
anything but they have been con-
fronted by surprises day after day in
the courtroom because angles of the
case of which they never had heard
were brought out.
Every day the governor recalls de-
ta1ls or his side of the case that he
should nave told his counsel months
ago A poor memory is blamed bv
the governors counsel for his over
sights . If his memory had been bet
ter, assuming that to be the causa of /
nus falIure to tell complete story
from the start, his ATTORNEYS thinix
they would not have burned half so
much midnight oil with him
Fuller Is Recalled.
Melville B. Fuller of the brokera ea |
urn OF Harris & Fuller. recalled to the |