Milford chronicle., 1913-10-03
HID SUI zER DEALS
IN BO0KS,HE SAYS
Broker TeStitleS Changes WGT
Made Before Inauguration
BORROWED TO AID Wife
Declares Governor Told Him 1t Was
to Aid Her That He Borrowed From
Stock Exchange Firm.

The books Of the stock exchange
firm of Harris & Fuller, whom Cover
aor Sulzer dealt with for three years,
were changed two days before his in
'auguration, so that it appeared that in
rtead Of his account being specula'
tive one, the firm had merely loaned
the governor money, according to evil
dence adduced at his impeachment
trial in Albany, N. Y.
Mrs. William Sulzer had borrowed
money from the Carnegie Trust com
pany, OF New York, and it was TO aid
her in her financial difficulties that
the governor borrowed from the stock
exchange firm of Harris & Fuller. This
was the explanation which Melville B.
Fuller. head of the firm, who was un'
der examination, said the governor
made to him.
Mr.. Fuller, who produced the firms
books, testified that a "cross entry
had been made in the governors ac-
count under date of Dec 80, 1912,
showing that the firm had loaned him
$4,000, or the debit balance against
the account on previous stock trans
actions These dated back to early in
1910, and there was put into evidence
letters showing that during that time
the firm had repeatedly called upon
the governor for more margin because
OF the steady decline of the stocks in
yolved in the account.
Some Of the securities Mr Sulzer
had bought through the firm; others
ne had deposited as margin against
those he had bought, and at the same
time had borrowed money on them.
His total borrowings, including the
$4,000 debited against him in the
cross entry transaction, amounted
to SlS0,O00. according to the books.
The cross entry" was made, Fuller
testified, because his partner though
lit would not be wise to have stock
floating around the street in Governor
Suffers name" Otherwise, as is ire
auently the case, the stock might find
its way mo the collateral put up in
the FIRMS transactions with banks.
Mr.. Kresel, attorney for the i'm
peachment managers, intimated that
this "cross entry" was not made on
Dec. 80, 1912, but at later date The
books showed that on June 10, 1913
another cross entry had been made
alter check for $4,000, given by Tor
mer Governor A. E. Spriggs, Of Mon
tana. had been paid into the account,
and that, as in a regular speculative
account, dividends on the stock had
: been credited and interest charged.
Fuller identified a note written by
Governor SuIzer to his partner in rela-
tion to the Spriggs check. 1t read:
What Governor Spriggs says is agree
able to me"
Fuller said the Spriggs message re-
lated to closing the account and that
the outcome of the conference was
that Lieutenant Commander L. J. Jo-
Isephthal of the national militia, and
member OF the governors STAFF, look
up the account on July Is.
Did he present an order?" He
did"
Kresel produced the order. Fuller
said he never saw it until it was pro-
duced before the F'rawley investigating
committee and couldn't say whether it
was the same now as at the time 1t
was presented. 1t was dated July IA,
1913. and read: please deliver to j..
NJ. Josephthal the securities held as
collateral for my loan on payment of
debit balance due thereon" 1t was
signed "Wm. Suffer- for Mrs. Sulzer.'
Did Mrs. Sulzer ever have anything
0ft ttNn -
Did she at any time ever call at
your Officer" mo"
Did your firm ever have any com
munication from Mrs. Sulzer?' No"
Did she ever pay any money to
your firm in connection with this ac-
count?" mo"
Kresel brought out that Josephthal
paid $25,7S9 to take up the account
and that the net result of the transac-
tions on July Is was a loss of s74l4.
Fuller then said that On the day af
ter he was subpoenaed to appear be-
fore the Frawley committee the gov
ernor sent for him and that he saw
him at the executive mansion.
"What was the conversation" 1t
took place in the governors library af-
ter dinner | told him had been sub
poenaed before the Frawley committee
and that l felt that any client of our
Office was entitled to all the protection
the law could give him. I added that
l would have a consultation with my
attorney, and if he advised me not to
testify or appear with my books,
would not do so.
"The governor said to me THAT Mr.
Marshall was not there. The governor
said Marshalls opinion was that they
could not force me to produce my
books and that the committee was not
legally organized. said I'd rely on my
own attorney. Then the governor said
to me, Did you know those securities
deposited with you were Mrs. Sui
zers? She had loan with the Carne-
gle Trust company, which was very
annoying, and that's why I borrowed
the money from you said that moth
ing like that could be shown on my
books. and if he wanted to prove taat
the books of the Carnegie Trust com.
pany would show it"