The Barre daily times. (Barre, Vt.) 1897-1959, 1905-09-30
DIRECTORS OF
LITTLE USE
Executive Heads Supreme in
Equitable Society.
j. H. SCHIEF TESTIFIES.
Scores Hendricks and Tells of Big Bond
Deals - Vice of Situation Has
Been Impossible
Power.
]. H. SCHIEF TESTIFIES.

New York, Sept. 30.-Jacob H. Schiff,
senior member Of Kuhn, Leob & Co.,
bankers, and former director Of the
Equitable Life Assurance Society, prov
I'd frank witness before the legislative
insurance investigating committee yes
terday.
His testimony was clear and conclusive
and his answers were given without
hesitation.
just before adjournment he asked
leave TO make an address. In it he
scored State Superintendent of lnsur-
ance Hendricks fer sending out reports
concerning the Japanese bonds at vari-
ance with the testimony taken before
him. These statements, he said, had
been damaging to his firm and himself.
He declared with force that his firm,
wrongfully accused OF monopolizing the
business Of the Equitable, did in reality
only one-sixth Of it, and that in all
cases the transactions had been profit
able to the society-more than could
be said Of certain dealings Of the society
with other firms.
He threw flood of light on the syn
dictate participation methods Of the
| Equitable. He declared his ignorance
prior to recent disclosures of the alleged
! irregularities practiced by James HI.
| Hyde and associates in dividing up al
I lotments of securities awarded to them
! by Kuhn, Leob q Go. He never intend
lea, he said, as 4 member Of that firm,
that there should be individual allot-
ments and profits to officers Of the
Equitable. Personal interest was far
4 ....,sa1 f,.o,,, b;s tla,,.yt,fe mill fhn nx-
plosion came.
Mr.. SchiH said he saw no improperly
lin becoming a director of the Equitable
land member of its finance committee
because the society dealt largely with
his banking house.
He declared that directors in New
York corporations are practically use
less-a negligible quantity and that
the executive officers are supreme in di-
lrecting the policy and course Of bust
ness.
He said the part Of the Equitable fin
ance committee in the purchase OF Sc
lcurities was merely perfunctory The
best is could do was to criticize transae
ltions already executed
He stated pointedly that the Equit
able, prior to reorganization, was yir
tually at the mercy Of one man-it wai
all HYDE Hyde and Alexander.
He denounced such a system az I'M.
lquitous. and believed the executive Of
iicers Of corporations should be subject
ed to greater supervision; but no law
he added, could protect any corporation
against individual dishonesty.
He pointed out singulously anomalous
condition when, with himself the only
member Of the finance committee whc
was not also member Of the executive
committee, the work Of the former com
mittee in passing upon the work OF tn
latter amounted virtually to this; The
I executive committee passing upon IT.
own performances.
J He admitted that a greater number
of syndicate allotments intended to b
divided among various corporations wer'
handed over In bulk to Gen. Louis Fitz
gerald, Kuhn, Leob g. Co., trusting alb
solutely in his fairness to apportiol
them properly and requiring from hin
, no formal statement Of division.
II As to any political campaign contfibu
! tions by the Equitable, Mr.. Sehiff coult
lonly say that Mr.. Bliss, as treasurer o
the Republican national committe
told him that Mr.. hyde had contributed
but he had assumed, Of course, tina
the money was not the Equitable's.