New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-04-17
BIG TIM" GOT START
BY BORROWING $4,000
Business Partner in Affidavit
Tells How Tammany Leader
Accumulated Fortune.
NO RECEIVER FOR FIRM
Justice Platzek Denies Applica-
ton for One Made by Com
mittee in Charge of the
Sullivan Estate.

In an affidavit on file in the Office OF the
County Clerk. made by George D. hraus'
PARTNER Of Congressman Timothy ID. oul-
Ivan in his theatrical enterprises, is the
statement that Big Tim" now reputed
10 be millionaire. did not have @o'
in 1898 to put up as his part of theatfl-
cal undertaking. big Tim" was saloon
keeper at the time.
The affidavit of Kraus was in cppoSI'ioi
10 an application made TO the supreme
Court for the appointment Of a receiver
for the firm of Sullivan & Kraus' which
controls theatrical enterprises worth more
than 81. 10000, in which Congressman sur
Nvan has a half interest.
The application was made by the com
mittee in charge of the property OF our
Ivan while he is mentally incompetent
II was denied Yesterday by Justice Pat
EEK 1t was alleged Kraus had overdra"A
his profits and that the firm did not nae
sufficient cash on hand TO meet its oph-
cations
Kraus said that he had been in tue
theatrical profession for thirty-eight years
and that he had known big Tim since
business in 1898 That year, kraus de-
cared, he had an opportunity 10 OBTAIN
control of the Dewey Theatre III Ed''
14th street. Sullvan's only business inter-
est then was his saloon and he was not
man of independent means.
Kraus bought the Dewey Theatre Tor
$4,000. giving a purchase money mort
gage for $4,000 of that amount. Suih-
van was unable TO make a payment oi
5000 on the deal being compelled TO pay
that sum in several instruments Inc
theatre property is now valued at S6oo'-
900 and rents for $3.50 a year. There Is
a saOO.COo mortgage on it. sullivan had to
borrow the 5000 and it marked the oe-
ginning Of his present fortune.
But when Kraus took over the Gotham
Theatre Sullivan's financial status had so
improved that he was able to advance
SlOSQ57 of the money needed. Subsequent
L. Kraus got an option on the Savoy
Theatre. Sullivan and Frank Farrell paid
Kraus for releasing his interest, and then
bought the Savoy for $4,000. Kraus said
il was now valued at 100000.
Sullivan & Kraus then added to their
holdings the lease of the Circle Theatre
each advancing $4,000 for construction
work. The Circle, Gotham and Dewey
theatres with the stores in the buildings,
yield the firm $l44.3oO a year. The two
partners made an agreement in February
1911. by which each was to draw s-'o a
week from the firm.
Kraus maintained his account was over
drawn in June. 1911. and Sullivan knew
about II. He said the firms present short
age of cash was due TO a dispute over the
rental of the Dewey Theatre with Will
lam Fox. its lessee. Also. the firm has
been unable TO get its bills extended on
account Of the illness of Sullivan.
in denying the allegation of the Sulli-
van committee that he is without means
Kraus asserted that the leases of the
Dewey and the Gotham were worth $780,
900 each and the lease of the Circle The
atre 10000. The firm also owns half of
the stock of the City Theatre, which
makes a profit of $4,000 a year.
Charles L. Hoffman. counsel for Kraus.
made an affidavit in which he said: Il
know that II Mr.. Sullivan were here and
could speak for himself he would not for
2 moment think of dissolying the firm
AMI interfering with the defendants man
agement II | thought Mr.. Sullivan want
I'd receiver appointed for his firm |
would not be appearing for the defendant
opposing the application
II know that the initial investment
started with the money borrowed by Mr..
Sullivan. and that the purchase of the
Dewey Theatre was the start of the bust
ness career Of Mr.. Sullivan, and that all
the money he subsequently acquired is
the direct result OF the services Of the
defendant