South Bend news-times. (South Bend, Ind.) 1913-1938, 1913-10-01

cross entry prevented use Of the
securities as collateral in the firms
routing transactions. the broker ex-
planned.
How did you come to do it," he
was asked.
Probably = he replied. because my
partner though it was not wise to
have securities going around the street
In William Suffers name"
The witness denied that Gov. Sulzer
had requested that the account should
be transferred 20 a loan.
The cross entry which Fuller said
was made by his cashier showed
upon it's face" Atty. Kresel said. that
il was not made on the date upon il
purported 10 be.
IL was also brought out that in June.
1913. after former Gov. 4. Z. Spriggs
Of Montana, an old time friend OF Mr.
Sulzer, had contributed a check for
$4,000 TO the account, there was an
other cross entry" transaction by
which II appeared that the firm loaned
the governor $4,000.
1T was all simply a bookkeeping
entry, wasn't it?" asked Atty. Kresel.
Paid or one Loan.
1T was a cross entry of one loan
and making another" explained the
witness.
With Fuller on the stand counsel
! Tor the assembly managers also began
To lay the foundation for proof of the
charges in the eighth article of i'm
peachment that the governor used his
| official position to effect the current
prices Of securities listed on the New
York stock exchange, lin which he
was specializing. The article charges
that he first urged the passage of GER
| tain legislation and then withdrew or
| attempted to withdraw IT,
Did you appear before Gov. Sulzer
early in this year with reference to
certain legislation which was pending
affecting the New York stock ex-
changer" asked Atty. Kresel
Il did" was the brokers' reply.
AT that time. Gov Suffers ac-
count was still in your Officer"
1T was"
Fuller was not cross-examined on
this point.
A complete record Of all the "stock
exchange reform bills" introduced at
the regular session of the legislature
/ at the recommendation of Gov. Sui
! eer, was then placed in evidence.
Especial emphasis was placed upon
the executives special measure urg-
( ing the bill designed to double the
| tax on transfers of stock. This meas
ure was introduced Feb. by former
Sen. Stilwell, now a prisoner in Sing
Sing. and was not reported out of
| committee.
VIII Show the Reason.
| The managers counsel stated they
would show that the reason the bill
was not reported was because the
! governor had Withdrawn his advocacy
/ OF it. They announced that in this
! connection they would inquire closely
| into the public statement made by
| the executive March 10 IN announc-
ing that he had Withdrawn the
stock transfer tax bill" At that time
the governor said:
1t has aroused considerable appo-
sitiOn from sagaciOus business people
throughout the state. and 1 think
much of this opposition is well
| founded and that the bill goes too far
in placing to great a burden of taxa
ton on a single industry"
Atty. Stanchfield made an unsuc-
cessful attempt to introduce testi-
/ mony regarding the installation of
Louis A. Sarecky into the immigration
service after his resignation as cam
/ paign secretary to the governor
| Judge Cullen held that the testimony
was not competent at this time, but
might be introduced later.
In outlining what he expected to
prove, Mr.. Stanchfield said the gov
ernOr induced the civil service COM
mission to give Sarecky, without ex-
animation. a position as an examiner
OF the alien insane at $4,000 year.
whereas Sarecky received between
| 81. 90 and $4,000 as secretary.
Was All Preliminary.
| All of this was preliminary how
| ever, to an attempt 10 prove the
/ charge that the governor induced
! Sarecky to refuse to testify before the
| Frawley committee. II will be as
/ serted that Sarecky assumed this at
| titude because he had been given the
/ position.