New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-03-30
HYDE SC0RNS CHARGES.
SCHIFF DEFENDS ACTION.
As Equitable Director He Got Com
missions Illegally, Says LazOyer.

James H. Hyde declined to make any COM
ment yesterday the allegations of wrongful
expenditure of funds of the Equitable Life AS
surance Society brought against him in the Pc
tlton presented to Attorney General Mayer
by Senator Bracket. as attorney for certain
policyholders of the Equitable. William C. Gull
liver, one of Mr.. Hyde's counsel, said that he
had not seen the petition. but that it's state
nents would be answered at the proper time in
the proper way before the proper tribunal Until
then there was nothing 10 be said
The Bracket petition also alleged that Jacob
II. Schiff of Kuhn, Loeb & Co., who is a di-
rector Of the Equitable Life Assurance Society.
had received commissions on bonds worth So
100000 sold to the society by his own banking
firm, and therefore had violated the law forbid
ding participation in such transactions by a d.
rector of an insurance company Mr.. Schif yes
terday issued the following statement in ref
erence to these allegations:
1t must not be expected that I shall dignity
by any defence of my firms position the wild
allegations made, which have basis in fact.
Suffice it to say that my firm has recently sub
mitted to eminent counsel the transactions it
has made heretofore with the Equitable and
has been advised by all of these counsel that
in their opinion no reason exists why these
dealings should be discontinued, and similar
transactions not be made in the future by Kuhn,
Loeb & Co. with the Equitable Life Assurance
Society.
policyholders' committee said of Mr. schif"s
statement:
If the counsel consulted by Mr. Schiff have
assured him that the transactions between his
firm and the Equitable have been in all respects
proper and unassailable, all that can say is
that he has been very badly advised. Mr. Schits
statement does not mention the vital point OF
the charges, that the receipt by Mr.. Schiff.
a member of Kuhn, Loeb & Co, of commissions
the sale of securities to the Equitable Life
Assurance Society, of which he Is a director, is
in express violation of the statutes 1t is said
in other quarters that the extensive bond pur-
chases of the Equitable have been highly profit
able, but this assertion may be found to be open
to question.
Probably a consequence Of the fling of the
Bracket petition and the adjournment for a
week, with the object of endeavoring to reach
a compromise of the hearing set for Tuesday
before the Superintendent of Insurance. meet
ing of the executive committee of the Equitable
was called for yesterday morning. The session.
which began at IL a. m, unusually long,
and is reported to have been stormy. Besides
President Alexander and Vice-President Hyde
there were present Presidents Gage Z. Tar
bell and William H. Mcintyre and Senator
Chauncey NJ. Depew. At 1870 o'clock the meet
ing adjourned for luncheon, which
served in the boardroom, the discussion being
continued while the directors ate It is under
stood that arrangements are being made to re-
cefve the Superintendent of Insurance, who is
trying to adjust amicably the existing troubles
Superintendent Hendricks is expected to be in
New-YOrk to-day TO confer with Equitable effi-
Gals and representatives OF policyholders.
John d. Crimmins, chairman OF the policy
holders committee, said that he could not say
that a compromise would be effected. The
tire affair in the hands Of the Superin-
tendent of Insurance, and Mr.. Crtmmins
pected to see everything satisfactorily adjusted
within a week.
Albany. March 29.-Attorney General Mayer
said this morning that Senator Bracket had
filed with him application for leave to bring
action against James H. Hyde, Jacob H. schif
and possibly other directors OF the Equitable
Life Assurance Society. He said he should
take no action of any sort in the matter for
some days
I'm view of the important conferences which
I understand are in progress looking to an ami
cable settlement of the questions involved" said
the Attorney General ''I shall not take up the