The Washington times., 1905-09-23
MANY SyND|CATES
IN THE EQUITABLE
James HI. Hyde Followed
Established Custom.
INSIDE DEALS OFTEN
What Becomes of Certain Moneys Is
a Great Mystery-Investiga-
ton Stirs Many.

NEW YORK, Sept. 23.-That James II
HYDE spoke the truth when he declared
he was merely following a long-estab
hshed custom in the Equitable Life As
surance Society when he went into six
underwriting syndicates was proved at
yesterdays session of the insurance
investigating committee
Henry Rogers Winthrop, assistan;
secretary and financial manager of the
Equitable Life, was On the Witness
stand during most of the afternoon ses-
sion Mr.. Winthrop made an ADMIR-
witness He did not try to conceal any
thing or dodge or evade questions.
His demeanor was in sharp contrast
to that of some of the recent witnesses
questioned about the affairs of the New
York Life. Mr.. Winthrop belongs to
the old regime in the EQUITABLE. and
is one of the few officers who came out
of the bitter war in the society with
an absolutely clean record.
Old Syndicates.
1t was shown that long before James
ii. Hyde entered the EGuitab bic Life
other officers headed syndicate groups
The first of these appears to have been
Louis Fitzgerald and Associates"
Then came George II. Squire and As
sociates-" These were the predecessors
of James II. Hyde and Associates.
In one of the Fitzgerald syndicates the
members included George J. Gould.
Myron I. Herrick, Alvin w. Krech. and
A. w. Ramsay.
These syndicates sold securities to the
Equitable 1t is believed that in every
instance the syndicates made profits.
but in no case is there any record of
such profit on the books of the society.
What became of these profits or who
got them are mysteries.
The new management of the Equita-
BILE has had two firms OF expert account
ants at work on the books of the So
ciety since the early part of last June,
but so far they have been unable TO
clear up the mystery
Mercantile Trust.
1t was also shown that in the old
DAYS the Mercantile trust Company put
the Equitable Life into a number of
syndicates The Mercantile Trust would
subscribe for a certain amount in 4
syndicate and then ailot a share of its
subscription to the Equitable Life.
When these transactions were made
Gen Louis Fitzgerald was president of
the Mercantile Trust and a director Of
the Equitable Life.
Except in one or two instances there
is no record on the books of the Eoui-
table Life of the profits made on the
syndicates which the society went into
through the Mercantile Trust.
That neither the Frick committee nor
Superintendent Hendricks. Of the State
Insurance department. went thoroughly
into. the syndicate participations of
James H. Hyde and associates was es-
ta5lished by Charles F.. Hughes before
lfr Int hnd h.1n-1 10
half an hour
He disclosed two syndicate partic:pa-
tons made by James H. Hyde and as
shared. neither of which was foucfed
upon by the Prick committee nor Su-
perintendent Hendricks IN their reports
Additional Facts.
New facts were also brought ont nv
Mr.. Hughes relative TO some OF the SIN
dicate participations Of James H Hyde
and associates which the two previous
Investigations had supposedly fully
probed.
One of the syndicate participations Of
James II. Hyde and associates. revealed
for the first time yesterday. concerned
the International Mercantile Marine
bonds underwritten bytJ. =. Morgan &,
Co. Through James II Hyde and as
focia.es the Equitable Life was saddled
with AN allotment of 500. 900 of these
bonds at par
BY some Subsequent arrangement the
Equitable Life got and paid for these
bonds at the rate of 921z. the total cost
being s4s2, 500. The final payment for the
bonds was made on January 4. 1905.
The price paid by the Equitable Life
for the Mercantile Marine bonds was
regarded as an interesting revelation,
because the New York Life had TO pay
par. or 100000 In cash for 81 O06 Og
worth of bonds. Why the New York
Life should have paid a higher price
than the Equitable Life. especially il
view of the fact that George w. Per
k'ns. of J. p. Morgan & Co. is vice
president of the New York Life. was =
ES3blem beyond the understanding o1
- legislative committee. The matter
Will be sifted thoroughly