Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1913-08-09
LEolsLATivE COMMITTEE IN RE.
PORT WILL RECOMMEND uN-
USUAL PROCEEDING.
MISUSE OF CAMPAIGN
FUNDS CLEARLY SHOWN
Committee Finds That Governor Spec.
ulatsd on Wall Street With Money
Raised for Political Purposes
ate and Court Of Appeals to Sit
Jointly as Court Of impeachment.

Sulzer remains silent, members OF the
joint legislative committee, which
concluded its hearing here today, be-
gan today drafting q report which 1t
will submit to the legislature on Mon
day with reference to testimony adj
duced showing that the governor had
speculated on the New York market,
using therefor campaign contributions
which he failed to include in his sworn
statement as required by law. in the
opinion Of Chairman Frawley. Of the
committee. and Of Eugene Lamb Rich
ards. counsel. no other course than to
recommend impeachment proceedinss
10 open to the investigators.
Whether the COMMITTEES will subse-
quently return to New York to inquire
further into the governors Wall Street
deals will be discussed by the commit
tee at a meeting to be held In Albany
Monday prior to the convening Of the
legislature Monday night.
Test Case Of Kind.
Chairman Frawley said yesterday
We've got enough"
Never in the history Of this state has
a governor been impeached. Should
such fate await Mr.. Sulzer he would
be put on trial before the senate and
the state court of appeals sitting
jointly.
The court II now in recess and will
not convene until Sept. 20.
The governor. according to the eM-
evidence. had dealings with
three stock exchange firms and was
saved from being sold out by one firm
by l.. NJ. Josephthal, Wall street
banker. and naval reserve aid on the
governors stan.
Josephthal, 1t was brought out. paid
q debit balance Of $26,239 standing
against the account July Is last. This
was after the governor sshad received
repeated calls for more margin.
erinos- in Campaign Gifts.
The governors transactions with the
other firms were for cash. It was in
connection with one of these that Sul-
zer. according to the evidence. used
campaign contributions. 80
The testimony appeared to show that
Jan. l. 1912. there stood on the books
of Harris & Fuller an indebtedness Of
$4S.599 against the purchase by Sui
ger Of 500 shares Of bug Four" 200
shares of American Smelling and Re-
fning Company. and 100 shares of
Southern Pacific This testimony was
given by Melville B. Fuller. member
of the firm, who said the governor had
unsealed his lips.
No other purchase Of stock were re-
corded on this account, according to
the witness. until Dec. 8. 1912, when
the governor bought 100 shares of Big
Four" Dec. IL the firm made its drs:
call on the governor for more margin.
The books showed that Nov. Ii Sulzer
had paid $4,000 against the account
and that Dec. 16 he paid $4,000 more.
Reveals Deals Of dummy"
In October of the same year the evil
dence indicated that Frederick Col
well, the governors alleged dummy"
purchased from Boyer. Griswold & Co.
200 shares Of big Four" stock outright
at 60 for $12.O25, the $25 representing
commission. This was at theh eight Of
Mr.. Sulzers campaign for the COVER
norship. Transcripts from the firms
books showed the stock bought Oct. Is
was paid for partly in checks, at least
two of which were identified In the tes-
timony as Sulzer campaign contribu-
tions.
The same month 200 more shares OF
big Four" were delivered to ColWell
by ruler & Gray. another stock ex-
change firm. which had on Its books
Account No. 50O." Effingham e. SUIT
ton, a clerk, testified Mr.. Gray had told
him the account was Suffers.
Begins Paying Debt.
The governors next transaction In
urou .+,oo% os deve1oped bv the eyi.
dence was Jan. 16. 1913. when he de-
posted a 5000 check Of A. e. Spriggs
against his indebtedness to Harris e
Fuller. July 9. 1913. he further reduced
this indebtedness by selling his 100
shares Of Southern Pacific for 3s,24s.
Afterward Sulzer failed to respond to
calls for $4,000 margin and the firm
threatened to sell him out. It was
then that Josephthal went to the gov
ernor's aid.