South Bend news-times. (South Bend, Ind.) 1913-1938, 1913-10-01
NEW RUMOR
THAT SULzER
WILL RESIGN

ALBANY. y. y. oct. when the
impeachment court, before which
Gov William SulZer is being tried on
charges OF high crimes and misde-
meanors convened Wednesday there
were persistent reports that an agree
ment had been reached with Tam
many Hall by which the governor had
agreed TO resign if the Impeachment
proceedings We're dropped.
When announcement was made that
the sessions would be adjourned from
Wednesday until next Monday. the
belief that such agreement had been
made Was strengthened. Grave doubts
were expressed. however that the ac-
tual Judges who are sitting with the
senators in the high court of impeach-
ment would thus allow the case TO be
halted.
The three-day cessation was ex-
planned by a member OF the court on
the ground that a religious holiday
lntervenes.
ALBANY, \. Y. oct. 1.-Evi-
dence that Gov. Suffers stock transac-
tiOns with the New York brokerage
firm Of Harris & Fuller were for the
account OF Mrs. Sulzer. was Tuesday
disclosed at the trial of his impeach-
ment The articles Of impeachment
charge that the governor made use
OF some of his unreported campaign
contributions in these transactions.
Melville 3. Fuller. head of the firm.
said that the governor had told him
that Mrs. Sulzer had a loan with the
now defunct Carnegie Trust company
of New York and that in order TO
take up the loan, for which he had
given his note he had deposited Sc
curities belonging to Mrs. Sulzer with
Harris q Fuller and borrowed money
thereon 10 pay the note.
Fuller said the governor had told
him this in the executive mansion in
Albany. on July 80 last when he had
called there at Mr.. Suffers request
after receiving a subpoena to appear
before the Frawley investigating COM
mittee.
Mr. Fuller. you know that these
securities were Mrs. Suffers don't
your" the governor asked him, ac-
cording TO the witness.
The broker said he replied in the
negative.
well said the governor, those Sc
curities belonged to Mrs. Sulzer when
; brought them to you.'" Fuller testi-
fed.
Borrowed the Money.
"'She had a loan with the Car
negie Trust company. They required
and IL was very annoying, so L took
the securities down TO you and bOr-
rOwed the money from YOU
Il said to Gov. Sulver: That may
be all true. There is no evidence OF
anything OF that kind on my books
and cannot be proven by me. IL IL is
true. you'H have no trouble in prov
ins II, as the books of the Carnegie
Trust company must be matter of
record"
The governors account with Har-
ris * Fuller. which the impea achment
managers charge was a marginal or
speculative account not a loan ac-
count. was opened in 1910. according
10 the books Of the firm which Fuller
presented today. The Carnegie Trust
company. II was recalled tonight was
in financial difficulties that year and
subsequently It 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 securi-
ties. calls for margins, and the de-
posit by Sulzer Of cash payments of
stock in response TO these calls. The
account began in June, 1910. when
the governor deposited 100 shares OF
big Four worth at the then market
price $500, and obtained thereon a
$4,000 loan. The next day however,
he brought through the firm 100
shares OF the same stock against
Equity in his first 100 shares.
Big Four TumbleS.
Then Big Four began 70 tumble In
the market and the rest Of the &C
count was a record Of efforts by Mr..
Sulzer 10 keep up the margin" as
disclosed In letters Harris & Fuller
wrote 10 him using that term in de-
handing that the deficit In the ac-
count be made good.
Sixteen thousand dollars IN cash.
which the impeachment managers
claim formed part OF the governor S
campaign contributions. were used IN
meeting these calls for margin. ac-
Cording 20 the books. Finally. in July
1913. Lieut. l. N. Joserthal. a New
York banker and a member or the
governors staff, came TO the rescue by
paying Off a debit balance against the
account OF $26,739 and taking up the
securities.
At this time the governor had put
into the account. according to the
books. S7S.439 In stock or cash and
his net loss excluding the amount
paid in by Josephthal. was SS.414
The governor authorized JOsephthal
TO close the account in a note TO Har-
ris & Fuller, produced in evidence. as
follows:
Introduce Note.
Please deliver 70 Lieut. COmman-
der L. II. Josephthal. the securities
now held as collateral in my loan upon
the payment OF the debit balance
thereon. (Signed) William Sulzer. for
Mrs Sulzer.'
Fuller denied Tuesday that TO his
knowledge Mrs. Sulzer ever had any
thing 10 do with the account and said
he had never seen the note presented
by Josephthal until IL had been shown
TO him when he was called before the
Impeachment managers in New York
city. The note had been delivered &c
his partner he explained
in controversion 70 the characteri-
ZatiOn OF the account as a loan. Coun-
sci for the governors accusers drew
from Fuller a statement that on Dec.
3. 1912. two days before the governor
was inaugurated. the debit balance on
the account had been entered as a