The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1913-08-09
DRAFTING REPORT
FOR LEGISLATURE
Recommendations Will be
Submitted at Mons~,'s
Sessions. -. ~
GOVERNOR REFUSES
TO MAKE STATEMENT
Wall Street Deals Brought Into Tessti.
mony-Committee Discuss Wheth-
er 1t Shall Return to New York to
Make Further Inquiry.

New York, Aug. 9.-While Gevor-
nor Sulzer remains silent, members
Of the Joint executive session. which
concluded hearings here yesterday,
began today drafting the report which
1t will submit to the legislature Mon
day, with reference to testimony ad-
duced. showing that the governor
market, and that he used campaign
contributions. which he failed to in
clude- in his sworn statement, accord
ing to law.
In the opinion Of Chairman Fraw-
ley Of the committee there Is no 9TH
er course, other than to recommend
impeachment proceedings, open to
the investigators. The committee on
Monday also will discuss whether it
will return to New York to inquire
further into the governors Wall
Street deals.
Damaging testimony was brought
yesterday. when 1t was testified that
the governor was nearly $4,000 in
debt, as a result Of stock market spec
ulations. at the time of his nomina-
ton, and used the contributions to his
campaign fund to make additional
purchases Of stock, while. the debt
was hanging over him.
Dealt With Three Firms.
The governor, according to the evil
dence. had dealings with three differ
ent stock exchange firms and was
saved from being sold out by one firm
by L. NJ. Josephthal, a Wall street
banker. and a member Of the gov
Jpsephthal. it was brought out, paid
a debit balance of $26,73s still stand
ing against the account on July Is
last. This was after the governor had
received repeated calls for more mar
gin. go: - 4
The governors 5: :,transactions with
the other frms were for cash and it
that Governor Sulzer, according to
the evidence, used campaign contribu-
tons
Indebtedness is $4S,599.
Arranged chronologically. the testi-
mony appeared to show that on Jan.
1. 1912. there stood on the books of
the stock exchange firm Of Harris &
Fuller an Indebtedness Of s4s.5ss
against the purchase by Governor
Sulzer Of 500 shares of big Four"
200 shares American Smelling and
Southern Pacific. This testimony was
given by Melville B. Fuller, mem
Der of the Arm who on Wednesday
had refused to answer the questions
of the committee. Before testifying
today his counsel announced that the
governor had agreed that "Mr. Full
ler's lips should be unsealed."
stock recorded on this account. ac-
cording to the witness, until Dec. 5,
1912, when the governor bought 100
shares of big Four" making 500
in all. On December II the firm,
according to letter produced by the
witness made it's first call upon the
governor for. more margin. The
books showed that on November 1s
previous the governor had paid in
on December 1s. apparently in re-
eponse to the call for margin, he
paid In $4,000 more.
"Big Four" Stock.
In October Of the same year, the
colwell, the governors alleged dunn
my" purchased from Boyer, Griswold
and company, 200 shares of big
Four" railroad stock outright at so
for $12.025. the $25 representing
commission. This was at the height
Of Mr.. Sulzer's campaign for the gov
ernorship and transcripts from the
firms books showed the stock, bought
on October 16. was paid for partly in
identified in the testimony as Sulzer
campaign contributions. There were
seven checks in all and the others are
charged by Eugene L. Richards. coun-
sci for the committee. as having been
also campaign checks. A transcript
Of the amount in the firms books
showing how the payments for the
stock were made:
$500. ~ 'e'A'
Theodore W. Meyers. $1,000.
John Lynn, $500.
Lyman A. spaulding. 800.
Edward F. O'Dwyer, 800.
John w. Cox, 5000.
Frank w. Strauss company, $1,000.
John I: Dooling. $1,000.
Currency. $7,126.
Total, $12,026.
Campaign Contributions.
The John Lynn check was ider 4.
Ned as campaign contribution in tes-
timony on Wednesday and Lyman A.
Spaulding, q lawyer, testified that his
check likewise was campaign con-
tribution.
During the same month 200 more
shares Of big Four" were delivered
70 ColWeli oy Fuller ana Gray, an
other stock exchange Arm. This is
count No. 500." the identity Of which
was solved today when clerk, Efing-
ham f. Sutton. testified that Mr.. GRAY
had told him the account was Cover
nor Sulzer's.
The governors next transaction in
Wall street as developed by the evil
dence was on Jan. 16. 1918. when he
-
epriggs against his indebtedness to
Harris 4 Fuller. On July 8, 1918, he
further reduced his indebtedness by
selling his 100 shares Of Southern
Pacific. for $9,24s. The governors
account with Harris & Fuller, accord
Ing to Mr.. Fuller was known al No.
63. : (
The governor. according to, Mr.
fContinuaA on Pa1n ~