The Hattiesburg news. (Hattiesburg, Miss.) 1908-1917, 1913-08-09
CAM PAIGN funds
USED To BUY
STOCKS
,SULzER NEARLY $4,000 IN DEBT
AS RESULT OF sPEcULATioNs,
ACCORDING TO TESTIMONY.
MAY IMPEACH THE GOVERNOR
Sen. Frawley, Chairman of lnvestigat-
ing Committee Says Evidence Al
ready Brought to Light Is Sufficient
to Warrant lnstituting Proceedings

New York, Aug. 9.-Gov. William
Sulzer of New York was nearly $780,
900 in debt as the result of stock mar
ket speculations at the time Of his
nomination, and used contributions to
his campaign fund to make additional
purchases of stock while this debt was
hanging over him, according to testi-
mony adduced Friday at the hearings
of the Frawley committee of the legis-
lature
The evidence brought to light is suf-
ficient, according to Senator Frawley,
chairman of the committee, to warrant
proceedings to impeach the Governor
for violation of the corrupt practices
act. The committee closed its hear
ings here Friday to consider what ac-
tion should be taken decision is ex-
pected by Monday.
The Governor, according to the evil
dence, had dealings with three diff
feTent stock exchange firms, and was
saved from being sold out by one firm
by L. n. Josephtal, Wall street bank
er and a member of the Governors
STAFF as national reserve aide. Joseph
tai, it was brought out, paid a debit
balance OF $26.739 still standing
against the account on July Is last.
This was after the Governor had re-
ceived repeated calls for more margin.
The Governors transactions with
the other firms we're for cash, and it
was In connection with one of these
Governor Sulzer, according to the evi-
dence, used campaign contributions.
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 & Full
Ter an indebtedness OF $4S,599 against
the purchase by Gov. Sulzer of SOC
shares of Big Four, 200 shares of Amer
lean Smelling and Refining Company
This testimony was given by Melville
r. Fuller, a member of the firm, who
on Wednesday had refused to answe,
the questions of the committee. Be
fore testifying, his counsel announced
that the Governor had agreed tina
"Mr. Fuller's lips should be unsealed
There was no other purchase o
stock recorded on this account, accord
ing to the witness, until Dec. l. 1911
when the Governor bought 100 share
of Big Four, making 600 in all. o.
Dec. II the firm, according to a lei
ter produced by the witness, made 1t
first call upon the Governor for NOR
margin. The books showed that o
Nov. IS, previous, the Governor ha
paid in $4,000 against the account
and that on Dec. 16, apparently in r'
sponse to the call for margin, he pal
in $4,000 more.
In October of the same year the ev
dence indicated that Frederick Coli
well, the Governors alleged dummy
purchased from Boyer, Griswold & c.
200 shares of Big Four Railroad stoc
outright at 60, for $12,025, the $25 rel
resenting commission. This was 6
the height of Mr.. SulZer's campaig
for the Governorship. and the trai
scripts from the firms books Shove
the stock bought on Oct. 16 and wa
paid for partly in checks, at least tw
of which we're identified in the test
mony as Suffers campaign contrio
tions. There were seven checks
all, and the others are charged B
Eugene L. Richards, counsel for I'll
committee, as having been also car
paign checks. A transcript Of II
account in the firms books. shown
how the payments for the stock wei
made, reads:
"William Sulzer (personal checl
5000, Theodore w. Myers $1,000, Jot
Lynn $500. Lymen A. Spaulding $40
EdwardF. O'Dwyer $10O, John W. Cc
5000, Frank w. Strauss Company 500
John Doeling $1,000; total $4,000 Cu
rency SIPS: total $12.o25."
The John Lynn check was identil'
as a contribution in testimony \
Wednesday and Lyman A, Spauldin