New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-09-28
Equitables Inside Wheels Uncovered at Prolonged ses-
sion of Committee.
OFFICIALS PROFITED IN SYNDICATES
Entire Burden Except Taking the Proceeds Occasionally Borne by Society
Share from Some Deals Disappeared

That the Equitable. through Paul Morton, in
tended to seek civil action in the courts to re-
cover interest where loans had been carried for
the officers of the company by the Equitable,
was one of the suggestions contained in the tes-
ttmony Of Henry Rogers Winthrop, George H
Squire's successor as financial manager OF the
Equitable, who was on the stand most OF yes
terday's session.
ACCOUNTS BADLY TANGLED.
In relation to these syndicate participations
through the medium of associates the hopeless.
tangled condition Of the Equitable records OF
these affairs was manifest from Mr.. winthrop's
testimony. Time and again he testified that
pert accountants were still endeavoring to tracs
the receipt or non-receipt OF profits. Not in
frequently his only means of showing that the
Equitable had participated or was entitled 70
profits was through calls made on it by syndi-
cate managers for it's agreements Following
this UP the present management Of the Eotii-
table had communicated with the syndicate
managers. and from them learned the exsct
amount of the Euuitable's participation and ths
amount of the profits which the managers lad
delivered to the company. Then the hunt for
the account to which these profits had beer
transferred began Sometimes they were found
credited to profit and loss. sometimes embodied
I'm the George H. Squire Trustee'' fund. and in
several cases not found at all.
Just how many items OF missing PROFITS
were discovered matter Of considerabl.
doubt because Of the entirely confused state Of
the Equitable books at the present time.
Two such items in Chicago and Northwestern
assrssatins $4,000 were disclosed, and items
amounting to upward of 100000 more, which
might ultimately have to be placed in this cate
CORY, were shown.
In view of Jacob n. Schiffs testimony regard
ing the relation of his firm to the Equitable in
bond sales in syndicate agreements. interest was
shown in the fact demonstrated yesterday that
in several instances the Equitable had definitely
paid checks directly to Kuhn. Loeb & Co.
A minor but amusing detail of Equitable man
agement shown in yesterdays proceedings was
a clerk loan. recalling the famous s1,OO0,OO0
transaction in the name of a SO a week clerk
disclosed in the New-York Life some time ago
This transaction was for S626,oeo in the name
Of Euoene Darlington, a $4,000 clerk. No record
Of the loan could be found the books Of the
Equitable, and the obvious intention, as shown
bv the testimony. to get this amount Of the
bonds of tho Atlantic Coast Line off the books
OF the society.
The EQUITABLE Trust Company. which made
the loan. charged interest on IT. and the only
evidence of the loan to be found by the Edul-
table was the request of the trust company IN
letter for the payment or thls interest
Some suspicion directed toward TINS
transaction as AIr. Darlington is the clerk Wh"
has charge Of the advertising expenditures an"
these items are being carefully scanned
The testimony of Mr.. Winthrop on the Equi-
table syndicate operations not closed last
night nor was that Of Henry Greaves. the
keeper of the George H Squire Trustees" fund
Both will be recalled in the morning session to-
day. The next witness to be called is Jacob
II sobie While the committee took no definite
oc+,on ON the point yesterday. both James Nc
Troon of counsel for the committee. and Ezra
=, rro,+ica the secretary, agreed that both Sen
ators Dryden, of New-Jersey. and DePew would
- oo11sd William A. Day. the new controller
| Of +ba Equitable and Senator Morgan G. Bulke-
| lev nresident Of the Etna Life Insurance Com
nanv. Of Connecticut. were in attendance yes
terday.