Omaha daily bee., 1905-09-30

James H. Hyde, individually, for $500, 900.
Il did not know until the disclosures of
the Prick committee" said Mr.. Schiff,
that the Equitable had any share In that
syndicate"
In the finance committee of the Equitable
he voted for the purchase of STOCK but
did not know then that 1t had been bought
in a syndicate. He maintained that the
purchase was wise and that there was no
better investment in the world than Union
Pacific preferred.
President Morton of the Equitable, he
declared HAD refused to sell the stock at
par, although the syndicate had tried to
buy it back. Not until NJ Hyde told Mr..
Morton that he had transferred his hold
Ing to the society did any member of Kuhn,
Loeb & Co. know it, AS syndicate managers
they did not think a life insurance com
pany was a desirable associate and had
wanted to buy the stock back.
Mr.. schiff testified tina. the minutes Of
meeting OF the finance committee of the
Equitable Life Assurance society in Feb
ruary 1903 were false in recording the
purchase of $4,000 of Union Pacific pre-
ferred stock for holding account"
Mr.. Schiff said he was present at the
meeting and no such transaction was made.
that meeting he desired to be understood
that the Equitable records were false.
Mr.. schiff said If such a transaction were
made he did not hear It.
Too Much Hyde.
Mr.. Schiff expressed the opinion that II
was wrong for James H. Hyde to par
ticipate personally in syndicate transact
tons He did not know that Mr.. Hyde
had done so until these disclosures.
"The Equitable" said Mr.. Schiff, was at
the mercy of one man, either Alexander or
Hyde. 1t seems to me 1t was all Hyde.
The vice OF the entire insurance situation
has been irresponsible power"
Mr.. Hughes showed Mr.. Schin the tes-
tImony Of James II. Hyde before the state
superintendent Of insurance. in which Mr..
Hyde maintained that the underwriting
OF Union Pacific was not a personal mat
| ter and that Kuhn, Loeb Co. knew he
| was acting for the Equitable society
| Mr.. schiff replied that Mr.. Hyde was
| trying to shield himself. AS for Hyde's
= statement that one of the partners OF
Kuhn, Loeb & Co. had been sent down
| to the Equitable society to arrange the
transaction Mr.. schihf said was not true
'You did not regard this as a proper
transaction for the Equitable to go into?'
IF had heard that the Equitable
thought of going into the syndicate should
! probably have checked IT,"
| Mr.. Schiff said he thought 1t was mad
visable for an insurance company to inves
| in stocks to hold control Of a railroad. He
replied that the company should not con
| troll anything nor invest in common oil
speculative stock. but in dividend-paying
preferred stocks
schiR Makes Explanation.
At the close Of the direct testimony, Mr.
schin asked and was granted permission
to make a statement. He defended him
self from various attacks which he said
had been made against his firm and him
self by the state superintendent OF insur
ance and others. He became very ami
mated and his remarks were accompanied
with dramatic and emphatic gestures HI
declared that 1t was untrue, as charged by
the state superintendent of insurance, tina
the Equitable Life Assurance society SOLD
bonds TO Kuhn. Loeb a Co. at a loss L
the society OF ~ per cent. He said Their,
wes no such loss and that the superin
tendent OF insurance had fallen into errol
In computing the rate Of sterling exchang,
which liked the value of bonds. He sait
further that IL was not true that Kuhn
Loeb & Co. had monopolized the best hnan
cial business Of the Equitable Life Assur,
ance society. IN the last i've years, he
said, the Equitable had bought slS7. O00, 90
OF securities, and OF these 81. 900 900, OF
about one-sixth, were purchased from
Kuhn. Loeb & Co. Furthermore, he said
that the present value of securities sold
! by his firm to the Equitable while he MAJ