New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-09-28

Senator Chauncey NJ. DepeW' IN the Iol4o"4hs
ratio:
Equitable $500 600 GOO
American Deposit and Loan Company 699 SS
General Fitzgerald 1006o0
James H Hyde 10y VVS
Ha RfRs~ 10000
George x \ squire and others 10000 10000
Fidelity Trust Company. 49,
ro.., 81 800 900
OFFICIALS SHARED GOOD THING
At the outset of his examination of this trans
action Mr. Hughes showed the fact that syndi-
cate managers ]. P. Morgan Co allotted the
bonds direct to the Equitable. The Importance
of this point is manifest. since it demonstrates
that the officers of the Equitable then allotted
to themselves shares in the apparent "gooG
thing of Chicago. Burlington and Quincy syn
didate participation. The stenographic record
on this point follows. Mr.. Hughes conducted
the examination and H. R, Winthrop was on tbs
stand.
Q-Now what want to get at is, what al; action N
the Equitable authorizing or approving or tnat
QWhat the Chicago Burlington and 9gWnGy
purchase syndicate? I've have not me sgnuiea S
the purpose Of underwriting, new issue Of chicago.
Burlington and Quincy collateral trust per cent
On question is you have already statedl--if
and half allotment to the Equitable in this syndi-
cate made direct by J, P Morgan q Co.? A.
o-To the Equitable? A-Yes.
Q-You have a letter there as to that that t you
showed a minute ago will put 1t IN evidence
Ayes. we have a letter A ,7
81 It think ink. you S said that momens ae01 A.
Mr. hughes-I will offer the letter in eVidence
the EoGita6ie Life Assurance Society. No. 10
dhass nd Saeaso Dear have received
from you the original of the Chicago Burlington OF
1901, signed by you as a subscriber therefor tor
Your subscription is confirmed accordingly, and
we hand you nclosed copy of said syndicate agree
''''n' i0' your MES io"F J. ?. MORGAN CO,
Q.-Now I understac8 the Equitable society
signed the syndicate agreement AYES.
SO that. the first thing want to know is the
action of any committee or board or oihcer antnof,
tzng or approving the signing or that agreement
Often. understand they acquired for .partici,
aIotting an Interest in participation to the in
ment ago in the list You handed me? .A.-Yes.
Q.-Have you copy OF that? Ave nave not
o,-Now. this Chicago Burlington and Quincy
of voting the Chicago Burlington and Quincy joint
As the bonds that were issued against the STOCK
that Hg fights i?4 13Fe at'ls '0-i anu GUM
Q-The bonds were joint bonds of the Northern
Pacific Railroad and the Great Northern Railroad:
Q.-And these bonds were secured by the stock
of the Chicago, Burlington and Quincy RailroadT
Ayes.
Q-Now, tell me what the transactions were on
the part Of the Equitable after this division of Its
a P ogf on ou '% o
May 49, $4,000 al par; on July e. 1891 sl8550o at
amount paid out, equal to s8s75C0 at par. also re
csyed 3gy 1892 at the 9d rate Of r Psf
on it's participation of 10000 of s7,72S
cafe whSn nS Ss s ad BgR had th syRS
@ q G and which t divided re6 s1ad
for? A-Each individual participant:
was made for 10 per cent wasn't ~ AYes. sir.
Q-And 10 per cent of the entire participation of
think May Il. 1901, calling that 10 per CEN? A
!Witness examining papers)-Yes, sir, here is the
Q-For 10 per cent; that is the first call7 Ayes.
Counsel offers the letter in evidence:
j P Morgan s CO. v No Nv e wa q ;ta
Equitable Life Assurance Society New-York
Dear Sirs: Referring to the Chicago Burlington
April Is 1901 to Which You are subscriber for
Office No g on or yq Before 50 qy g at Ma
l6 1901, the sum of $4,000 of your said
]. p. MORGAN & co. Syndicate Managers
SOCIETY MEETS ENTIRE CALL.
Mr.. Hughes now proceeded to emphasize the
next significant point-that the Equitable not
only took the whole participation and then di-
vided it, but that It put up all the money to
carry the whole transaction that is, for. itself
and for the Associates" The cross examination
continued:
Gin response 10 that call the Equitable paid the
whole Sl50,000 did it? A.--Yes, sir. y.
Old the other corporations and persons to
whom the Equitable had transferred interest In its
participation then pay the Equitable any part OF
the amounts which had been called for? Al will
have THAI looked up; haven't the facts here That
entry for Interest to be their payment of in
terest on the moneys advanced, per cent. | will
have that looked up
Q-When a moment ago you stated that the
various individuals paid their shares of the calls:
that is. the individuals and corporations to whom
the Equitable had transferred of it's interest
you were under a Misrepresentation. were you not?
Al was speaking from what appeared to be the
record. which apparently false
Q-But a matter Of fact, the Equitable having
received participation of sl5000O0 paid the entire
amount of the call. and the persons who had re-
ceiVed parts of its participation did pay any
of the calls? A.-Not directly to J. p. Morgan &
Co
Q.-Nor TO the Equitable? A.-weli, that we viii
look up and see.
Q-That you are not sure of at the moment
Now the next call thai was made was for 1914 per
July IS. 1901. was ii not? A--Yes, sir. (Wit-
ness produces paper)
Counsel offers The said paper in evidence as fol-
lows:
J. P Morgan & Co, % Wall-st.. York. July
10. 1901 Equitable Life Assurance Society. {. B.
and Q, Purchase Syndicate Dear Sirs; Referring
10 tho c. r. and Q. Syndicate agreement, dated
ApIl 25 1901. TO which you are a subscriber Tor
100000: wo now request You to pay US AT our
ofHce. No. % Wall-st before Monday. july
subscription: In making payment please present
our receipt for your first payment. in order that We