South Bend news-times. (South Bend, Ind.) 1913-1938, 1913-08-09
Enough Evidence to Warrant
Beginning of Impeachment
Proceedings Has Been Un-
earthed Says FraWley.
CAMPAIGN FUND USED
TO SETTLE HIS DEBTS
Was Saved From Being Sold
Out by L. III. JOSephthaI,
Wall st. Broker, Now Mem
ber of His Staff.

NEW YORK. Aug. Gov. William
Sulzer OF New Y oTk was nearly $5O,-
600 in debt as the result Of stock
market speculations at the time of his
nomination and used contributions to
his campaign fund 10 make additional
purchases Of stock while this debt was
hanging over him, according 10 testi-
mony adduced today at the hearings
of the Frawley committee Of the leg
islature.
The evidence brought 10 light IS
sufficient. according 10 Sen. Frawley,
chairman Of the committee, 10 war
rant proceedings 70 impeach the gov
ernor for violation Of the corrupt
practices act. The committee closed its
hearings here Friday to consider what
action should be taken. Decision is
expected by Monday
The governor, according to the evi-
dence had dealings with three diff
ferent stock exchange firms and was
saved from being sold out by one
firm by L. NJ. Josephthal. Wall street
broker. and member of the COVER
nor's staff as naval reserve aide.
Josephthal IL was brought out, paid a
debit balance of S26, 039 still standing
against the account on July 10 last.
This was after the governor had re-
ceived repeated calls for more mar
gins.
Others Were for Cash.
The governors transactions with
the other firms were for cash and II
was In connection with one of these
that Gov. Sulzer, according TO the evi-
dence. used campaign contributions.
Arranged chronOlogically the testi
mony appeared TO show that on Jan.
l. 1912, there stood on the books Of
81 firm of a
Fuller an Indebtedness OF $4S599
against the purchase by Gov. Sulzer
OF 500 shares Of big Four, 200
shares American Smelling and Rein
ing Co. and 100 shares OF Southern
Pacific. This testimony was given by
Melville b. Fuller. a member of the
firm who on Wednesday had refused
20 answer the questions Of the COM
mittee. Before testifying friday. his
counsel announced that the governor
had agreed that Mr.. Fuller's lips
should be unsealed".
There were no other purchase OF
stock recorded on this account. ac
cording 10 the witness, until Dec. 8. |
1912. when the governor bought 100
shares OF big Four making 600 in
all ON Dec II. the firm. according
20 n letter produced by the witness
made a call on the governor for more
margin. The books showed that on
paid In $4,000 against the account
and that on Dec. Is apparently in re-
spOnse 10 the call for margin. he paid
in SO. 600 more.
Paid for in Checks.
IN October Of the same year. the
evidence indicated that Frederick Col !
we'll. the governors alleged dummy |
purchased from Bower. Griswold and
GO. 200 shares OF Big Four railway
stock outright at 60 for S12.025. the
S25 representing commission. This
was at the height OF Mr.. Sulzer's cam
paign for the governOrshtp and there
was transcripts from the firms books. !
showed the stock. bought on Oct 16
was paid for partly in checks, at least
two Of which were identified in the
testimony as Sulzer campaign cOntri |
buttons. There were seven checks in
al.
A transcript Of the account in the
firms books showing how the pay
ments for the stock were made. read
William Suizer personal check). |
$500.
Theodore w. Myers. $1,000.
John Lynn, $500
Lyman A. Spaulding. 500.
Edward r. O'Dwyer. S10O.
''John W. Cox. $500.
Frank ". Strauss Company. $1,000. |
John 7. Dooling, $1,000.
Total $4,000.
Currency. SIPS.
Total. S12.O25."
The John Lynn check was identi- /
fed as a campaign contribution in tes- /
timony on Wednesday and Lyman A. |
Spaulding, a lawyer. testifed Friday |
that his check likewise was a cam
paiga contribution.
Bought 200 shares
During the same month 200 more |
shares OF big Four" were delivered !
20 Colweu by Fuller and GRAY an
other stock exchange firm. This is the ]
firm which had on its books Account !
No. 500" the identity OF which was |
solved Friday when a clerk Ening- |
ham =. sutton. testified that Mr.. Gray !
had told him the account was Gov |
Suffers
The governors next transaction in |
Wall street. as developed by the evi-
dence, was on Jan. s. 1913. when he |
deposited a 5000 check OF A r. |
Spriggs against his Indebtedness to |
Harris and Fuller. on July g. 1918 |
he further reduced this Indebtedness
by selling his 90 shares OF Southern I
Pacific for S9.24S. The governors ac- 1
count with Harris and Fuller. accord /
ing 20 Mr.. Fuller. was known as No. l
e5
The governor, according TO the wit |
ness. ignored the firms calls for more !
margins One letter sent him June g. |
1918. read.