Evening star., 1905-09-24
SCH|Ff TO Be CALLED
Equitable Affairs Again to Be
Probed.
PROFIT OF DIRECTORS
PROMINENT MEN WANTED AS
WITNESSES.
Investigating Committee is Not
Through With the New York Life
"A Policy Holders Query.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, September 23.-Jacob II.
Schiff will be called to the stand In the
| insurance inquiry next week to explain to
the Armstrong Investigating committee
about the securities that Kuhn, Loeb &
Company have sold which have found their
way ultimately into the vaults of .he Eauit-
able Life Assurance Society. This decision
was reached by counsel for the committee
after the testimony of Assistant Secretary
Henry Rogers Winthrop of the Equitable
made 1t apparent that there are a great
many things yet to be cleared up about
the society's syndicate transac tions and
other purchases of securities.
Two subjects have already come to light
| in regard to which counsel for the commit
| tee want to ask Mr.. Schiff some questions.
| One of these is the Philadelphia, Baltimore
and Washington-Long Island railroad bond
| syndicatej of 1893 out of which James II.
| Hyde and associates took participation
/ of 100000 1t appeared from the testi-
mony yesterday that the Equitable in jan
uary of 1904 purchased $121 200 of these
securities direct from Kuhn, Loeb & Com
pany, Mr. Schiff's firm. Counsel for the
investigating committee are anxious 20
reconcile the Equitable records with Mr..
Schff's testimony before Superintendent
Hendricks that from the first part of 1902,
when Kuhn, Loeb Company received a
letter from James H. Hyde 70 the effect
of the Equitable would be in the name of
James H. Hyde and associates, Kuhn, Loeb
& Company sold no securities to the society
direct.
To Apply the Probe.
In connection with the announcement
that Mr.. Schiff woull be witness. it was
learned today that counsel for the inves-
tigating committee are determined to make
more thorough inquiry into Equitable
co.. ~.
committee or Superintendent Hendricks of
the state insurance department. The cause
of this determination is the lack of de-
tails in the schedules which Mr.. Winthrop
was able to produce at the request of the
committee, showing the Equitable syndicate
participations. The minutes of the Equi-
tables executive committee produced by Mr..
Winthrop contained up to the present year
little more than stereOtyped entry: THE
minutes of the previous meeting were read
and adopted and purchases and sales of
Fseeurities since that time .approYed. : -tFhis
infOrna ton about the financial trans
actions of the Equitable In. past years the
Armstrong committee considers inadequate,
particularly as so many syndicates have
come to light of the James II. Hyde and
associates character, in which directors
and officers of the society have purchased
securities and subsequently sold them at
an appreciated price to the Equitable and
have pocketed the intermediate profit
Desired as Witnesses
The committee is particularly anxious to
find out about the syndicates of earlier
date than those covered in the Frick and
Hendricks Investigations, in which General
Louis Fitzgerald, who was formerly presi-
dent Of the Mercantile Trust Company, and
George H. Squire, until lately the financial
manager of the society, have appeared as
managers.
Funds Given to Hamilton.
The investigating committee is by no
means through with the New York Life
Insurance Company. That part of the New
York Life's activity which was carried on
by means of funds supplied by executive
order of President Mccall and deposited
in Judge" Hamilton's account at Albany
will be taken up just as soon as additional
data have been gathered.
Some figuring has been done with the
known factors relating to the S0S5, 900 loan
in the Mercantile Trust Company to James
w. Alexander and Thomas u. Jordan,
formerly of the Equitable, as trustees.
Political contributions are believed. to ac-
count for about $150,G00 of the money.
George w. Perkins is another witness
whom the investigating committee viii
have on its hands again. Counsel
purpose to ask him for further eXplana-
tfons as to why his personal share of the
profits accruing to the Morgan firm on the
sale of some SIS, $4,000 worth of securities
to the New York Life should be but $4,000:
Counsel want to know also how 1t happened
that Mr.. Perkins in refunding this $l0,0J3
to the New York Life paid some $1,000 by
means of a voucher representing expendi-
lures which he had made out of his own
pocket for the company.
A Policy Holders Query.
By Associated Press.
NEW YORK, September 23.-In an open
letter to President John A. Mccall of the
New York Life Insurance Company,
Franklin Leonard, jr, defeated demo-
cratic candidate for Congress in the
seventeenth district of this city, today
asked Mr.. Mccall how much of his money.
paid on life insurance policy, had been
used to defeat him. Mr.. Leonard's letter
was prompted by President McCalrs
statement before the legislative invesu-
eating committee that he had ordered
contribution of about $4S,000 to the re-
publican national campaign fund In 1904.
The letter follows;
Mr. John A. Mccall, president New York
Life Insurance Company, New York city.
Dear Sir:-Last year l held policy
amounting to $4,000 in the New York Life
Insurance Company and paid the yearly
premium. At the same time l was NOM
iiated for Congress by the democratic
party in the seventeenth district. This
was q close and doubtful district, and you
will doubtless admit that large sums
from the republican campaign fund were
expended in the district. Personally | am
satisfied that those funds helped materi-
ally to bring about my defeat.
:. Iwould particularly like to know how
much of my money paid to your company
in trust for my little family after my
death, together with the funds of more
than 1900 other democrats and friends
who cast their votes for me In the seven
teenth district, was used to bring about my
defeat and to defeat the will of these
voters.
II venture the opinion that even my re-
publican opponents would hardly advocate
the use of my funds and the funds OF
thousands of other policy holders in this
manner Yours truly.
lSigned.) '.FRANKLIN Leonard"
Gov. Frank w. Higgins of New York ar
rived here today on the steamer Celtic from
Liverpool, after a few weeks trip abroad.
The governor. when asked whether he had
read the testimony relative to campaign
contributions from insurance companies.
said:
81 do not care to talk on that subject ex- i
cept TO say that have no knowledge of |
nf