The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1913-10-01
TELLS HOW SUlZER
BOUGHT STOCK
ON MARGIN"
Bio -Four" Tumbled and He
Was in Trouble
FRIEND TO The RESCUE
According 10 Broker Fuller the Gov
ernor Dropped Ss4i4 IN the
Transaction.

Albany. oct. l-Eyidonrc that
Gov. suffers stock transactions
with the New York brokerage htm
II Harris A. fuller we're Tor ,hc &c.
count OF Airs. Sulzcr was yesterday
disclosed at the triai OF hls impcach-
ment. The articles oi Impeachment
charge that the governor made use
of some of his unreportcd campaign
contributions Ia these transactions.
Melville %. Fuller. head Of The hrm,
aid that the governor had told him
That Mrs. Sulzer had lean with the
now defunct Carnegie trust com
many of New York and that In order
TO take up the loan. for which he had
.iyen his note, he had deposited Sc
curitics belonging to Mrs. Sultzci
with Harris d Fuller and borrowed
thereon with which 10 pay the note.
Fuller said the governor had told
him this in the executive mansion IN
Albany ON July 30 last, when he hau
called there az Mr. Suffers reques.
after receiving a subpoena to appeal
before the Frawley investigating
committee. Mr.. Fuller you know
that these securities were MIS-. SUI
,er's. don't you?" the governor ask.
ed him according TO he witness
rhe broker said he replied in the
NEGATIVE. "Won.' said the governor
these securities belonged. TO Mrs.
Sulzer when / brought them t.
YOU Fuller testified. She had q
loan with the Carnegie Tus, com
pany. They required &c 10 give d
note every three montAf and it was
very annoying, $50 took the securit
les down to you and rrowed the
money from you.
Il said to Gov Sul1cc, That may
all be true. There is no evidence OF
ANYTHING of that kind on nay books
aud cannot Lc proved by me. II
is true, you'll have no trOubl, IN
proving it. as the books of the Car
negie trust company must be a mat
ter of record. "
The governors account with Har
ris & Fuller, which the impeach
ment managers charge was mar
einal or speculative account not
loan account, was opened in 1910
according to the books Of the firm
upon which Fuller was examined
Yesterday. The Carnegie trust com
pany, 1t was recalled last night, wa
in financial difficulties that year and
!. subsequently it failed.
The account showed not only
long series of borrowing on securit
les brought 10 The firm by Sulzer
but also the purchase and sale o
other securities, calls for margin
and the deposit by Sulzer Of casl
payments OF stock in response &
these calls The account began Il
June, 1910, when the governor dc
pcsited 100 shares OF Big Foui
worth then at the market price $500
and obtained theron $4,000 loar
The next day, however, he bough
through the firm 100 shares of tn
same stock, against which he CAV
no security except the equity ia hi
irst 100 shares.
Then Bis Four began to tumble i
she market and the rest OF the az
count was a record Of efforts by Nj
Sulzer to keep up the margin a
disclosed in letters Harris x Fulle
wrote to him using that term in d.
manding that the deficit in the az
count be restored. Sixteen thou
and dollars in cash. which the il
parchment managers claim forme
r part of the governors campaie
p, contributions, were used in meetiI
! these calls for margin" accordir
b TO the books Finally, in July, l9l
Lieut. l.. NJ. Josephthal, a New lor
banker and member OF the COVE
4 nor's staff, came to the rescue
paying off a debit balance agaj~
the account of $26,739 and takli
y up the securities. At Ibis time Il
! governor had puf into the accoun
according to the books, $73,439 cit
: err in stock or cash, and his n
loss, excluding the amount paid
by Josephthal, was $S414.