Norwich bulletin., 1913-10-01

Albany, N. Y., Sept. 30.-Evidence that Governor Sulzer's stock transac- tons with the New York brokerage firm of Harris & Fuller were for the account of Mrs. Sulzer was today dis closed at the trial of his impeachment. The articles of impeachment charge l that the governor made use of some 1 or his unreported campaign contribu- 1 lions in these transactions. Melville B. Fuller, head of the firm, sald that the governor had told him that Mrs. Sulzer had loan with the now defunct Carnegie Trust company 1 Of New York, and that in order to take 1 up the loan, for which he had given his i note, he had deposited securities be- | longing to Mrs. Sulzer with Harris &, 1 Fuller and borrowed thereon with which to pay the note.
 1 SuIzer's Statement to Fuller. Fuller said the governor had told him | this in the executive mansion in AL i bany on July 30 last, when he had called there at MT. Sulzer's request after receiving a subpoena to appear before the FraWley Investigating com mittee.
 MT Fuller, you know that these se- curities were Mrs. Sulzer's don't you ?' the governor asked him, according to 1 the witness.
 The broker said he replied in the negative.
 We'll said the governor, these se- 1 curities belonged to Mrs Sulzer when brought them to you Fuller testified She had a loan with the Carnegie i Trust company. They required me tC 1 give a note every three months, and ii was very annoying, SC I took the se- curities down to you and borrowed the money from you
 Was Marginal Account.
 T said to Governor Sulzer: That may all be true. There is no evidence of anything of the kind on my books and cannot be proven by me If it is true, you'll have no trouble in proving it, as the books of the Carnegie Trust company must be a matter of rec ord"
 The governors account with Harris i Sc Fuller, which the impeachment man agers charge was a marginal or specu- ] latlYe account, not a loan account, was opened in 1910 according to the book: | of the firm upon which Fuller was ex amined today. The Carnegie Trus company it was recalled tonight was in financial difficulties that year anC subsequently it failed
 Big Four" Stock as Security.
 The account showed not only q Ions 1 series of borrowing on securities ] brought to the firm by Sulzer but alsC 4 the purchase and sale of other SeCuri' ! ties, calls for margin and the deposi by Sulzcr of cash payments in respons' to these calls. The account began il June 1910 when the governor deposit ed 100 shares of Big Four" worth a the then market price $S,200, and ob l tained thereon a $6,O00 lCan The mex day, however, he bought through tn, firm 100 shares of the same stock against which he gave no security eX i cept the equity in his first 100 shares. Then Big Four began to tumble il the market, and the rest of the ac count was a record of efforts by MT Sulzer to keep up the margin" as dis closed in letters Harris &1 Fuller Wrot, to him, using that term in demandins that the deficit in the account be re stored.
 $16,ooo to Meet Margins. Sixteen thousand dollars in cash 1 which the impeachment manager claim formed part of the governor. | campaign contributions were used il meeting these calls for margins" ac i cording to the books. Finally in July 1 1913, Lieut.. l.. NJ Josephthal, a New l York banker and member of the gov l ernoTs staff, came to the rescue by paying off a debit balance against tn, account of $26,7 and taking up tht | securities. At his time the governor had put into the account. according tt the books, s73, ,439 either in stock O 1 cash, and his net loss, excluding thu amount paid in by Josephthal, wa Ss.4t4.
 The governor authorized Josephths 1 to close the account in note 10 liar his & Fuller, produced in evidence, a. follows:
 Please deliver to Lieutenant Com 1 nander l.. M. JosephthaI the securities now held as collateral in my loan up on the payment of the debit balance thereon.
 Csigned) WILLIAM SUt.zER.
 For Mrs Sulzer."
 Account Entered as a Loan.
 Fuller denied today that to his knovl- edge Mrs. Sulzer ever had anything tC ] do with the account, and said that ht had never seen the note until it hat i been shown to him when he was call ed before tine impeachment manager, : in New York city. The note had beer ! delivered to his partner, he explained. In cOntrOVersion to the governors 1 charact te1-iza tiOn of the account as i loan. counsel for the governors accus- CTS drew from Fuller an admission tha' i on December 30 1912, two days before l the governor was inauEura ted the ! debit balance on the account had beer entered as 8 loan by the firm to Gov ernor SulZer This balance was ap- proximately 10000 Fuller admitted 1 that it was purely a boollllee pina i transaction and that no note had been given by the governor as evidence ot the indebtedness
 Stocks Not Available as Collateral.
 This transaction. described as a "cross entry" prevented use of the stocks as collateral in the firms trans transactions, the broker explained.
 How did you come to do it?'' he was asked
 "Prebably," he replied. "because my partner thought it was not wise to have securities going around the street in William SulzeT's name
 Dent you rslmember having talk with AIr. Sulzer about December 20, 1s1s, in which he told you, in sub stance, that ewing to the change in his situation by reason of his election he should prefer that the accounts which he was carrying with your firm should be thus transferred into an alleged leaR."
 T de net" replied the witness,
 Was Cross Entry.
 This cross entry' which Fuller ssid was made by his cashier" showed up- an it's faee." Attorney kresel said, that