The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1913-10-04

Albany, n. y, Sept. 30.-EVidence
that Gov. Suffers stock transactions
with the New York brokerage firm of
! Harris & Fuller were for the account
Of Mrs. Sulzer was disclosed today at
the trial Of his impeachment. The ar
ticles of impeachment charged that
the governor made use of some of
unreported campaign contribut. ~
these transactions. =
Melville B. Fuller, head of the firm,
said that the governor had told him
that Mrs Sulzer had loan with the
now defuct Carnegie Trust company
of New York and that in order to take
up the loan, for which he had given
his note, he had deposited securities
belonging to Mrs. Sulzer with Harris
& Fuller and borrowed money thereon
to pay the note.
The governor told him this in the
executive mansion in Albany on July
20, last, Fuller testified when he had
called there at Mr.. Suffers request,
after receiving a subpoena to appear
before the Frawley committee.
"Mr. Fuller, you know that these
securities, were Mrs. Suffers, don't
your" the governor asked him, ac-
cording to the witness.
The broker said he replied in the
negative.
"'Well," said the governor, these
securities belonged to Mrs. Sulzer
when 1 brought them to you,'" Fuller
testified
She had a loan with the Carnegie
Trust company. They required me to
give note every three months. and
it was very annoying, so 1 took the
securities down to you and borrowed
the money from you.'
II said to Gov. Sulzer: That may all
be true. There is no evidence of any
thing of that kind on my books and
can not 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 q matter of rec
ord"
The governors account with Harris
& Fuller, which the impeachment
managers charge was marginal or
speculative account, not loan ac.
count, was opened in 1910, according
to the books of the firm which Fuller
presented today. The Carnegie Trust
company, it was recalled tonight, was
in financial difficulties that year and
subsequently it failed. The account
showed a long series of borrowing
on securities brought to the firm by
Sulzer, and also the purchase and
sale Of other securities, calls for mar
gin" and the deposit by Sulzer of cash
payments of stock in response to these
calls. The account began in June,
! 1910, when the governor deposited
100 shares Of big Four worth at
the then market price $1,000, and OBJ
tanned thereon a $4,000 loan. The
next day, however, he bought through
the firm 100 shares Of the same stock
against which he gave no security
except the equity in his first 100
shares.
The Big Four began to tumble in
the anarket and the rest of the ac-
count was a record of efforts by Mr..
Sulzer to keep up the margin" as
disclosed in letters Harris & Fuller
wrote him. using that term in de-
manding that the deficit in the ac-
count be made good.
Sixteen thousand dollars in cash.
which the impeachment managers
claim formed part Of the governor 5
campaign contributions, was used in
meeting these calls for margin" ac-
| cording to the books.
Finally, in July, 1913, Lieutenant
Commander l.. NJ. Josephthal, a New
York banker and a member Of the
! governors staff came to the rescue,
paying off n debit balance against the
account of $26,739 and taking up the
securities. AT this time the governor
had put into the account, according
to the books, $73,439 in stock or cash
and his net loss, excluding the amount
paid by Joscphthal, was $S,4l4.
The governor authorized Josephthal
to close the account in Il note to IIar-
rs Fuller, produced in evidence as
follows:
please deliver to Lieutenant Com
mander J.. NJ. Josephthal the securi-
ties now held as collateral i'm my loan
upon the payment of the debit bal
/ anCe Theron"
(SgneO William SulZer for Mrs.
Sulzcr"
Fuller denied today that to his
S,,I1