New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-09-30

finished the letter. You referred u
a question-to reference-after my conversation
9 20 MI ba Ke s %h9 Is NY S pasSed At that
conversation. and he that at that conyeTsa-
ton Mr.. Hyde said that he wanted to have better
supervision as vice-president Of the Equitable Ire
of the proportion Of the different interests they
are properly entitled to-
letter Of this sort signed by Mr. James H. , HyfS
A.-AIr Hyde had a conversation with Mr.. Kahn
to which he refers and which understand from
would prefer If he made aIlotments single
interests allotments should be made IN this man
be done we want to have official request from
the Equitable Life Assurance Society" And that
els it proper that yqg % vG not .t think
be assented to unless the Equitable Life Assurane
Society officially requested It? Al think that
Lie. makes such request, such written request
on the 0 6 let et ene It Would be
Gent for any banking house; It should BE- T., dis
pose of the alotments which properly would nave
gone to the Equitable society? Al want 10 say
much larger amounts than would nave gone ~ 20
s s!tr pass from us to him the request
Of MT Hyde they were put into amount, and
was wRRat CAPACITY Would he do vice
president individual? A-As yice-preSotent
to himself? A-That would not be right vas
going to 9u take d1en share Himself? NO we heard
nothing of that until these disclosures were maze
He was simply to look after all the parties preVl
Odd you suppose that j. w: Aexanqer rau
he might have bad an interest? A-Not that
1 remember
THE UNION PACIFIC BLIND POOL"
When Mr. Hughes touched the famous
Union Pacific blind pool" Mr.. schiff rose in
his place and made brief address, in which
he protested against criticism OF unjust charac-
ter which he said had been directed against
his firm on this score insisted that his declara-
ton before Superintendent Hendricks that he
had never sold Union Pacific stock to the Equita-
BILE was literally true that the S2,5OO'VOo turned
over to the Equitable by James H Hyde was
stock he supposed Mr. Hyde had acquired for
himself and declared that he would not nave
consented to the Equitable's coming into the syn
dictate had he known about It, although the IN
vestment good. as he regarded insurance
companies as undesirable partners in holding
syndicates.
what was the purpose Of this syndicate?"
queried Mr.. Hughes
.sT do NOT think that is a question I am re-
o,,irel TO answer" was Mr.. Schifs response
Mr. Hughes read the syndicate agreement ana
asked
Was this with other securities signed by James
HYDE ndi y qdEyroa A obtain ydes signature
for the S2,5OO,OOO Of the stock HYDE was 10 take
IWhy do you not regard life insurance COM
panv as a desirable party in such a transactiQn:
n Arefa2 fo deal Of w ifG ntf
Q-When Hyde signed it it vas UNDERSTOOD IS tna0
ne was r8 Wien calls were issued it was the Equ-
table which PAID InS 2ay observation The in
structions those who handle Su j ma oo5 Si
Mr. Hughes read the minutes of the meeting
- 49, snoncs comr-sttee on February 2. 1903.
which contained references to this TRANSACTION
"Is II the practice at these meetings to read
tbe entries as they appear in the securities
register" he asked.
1T is"
Mr. Hughes referred to an entry Of 100000
Union Pacific at 100. Didn't you hear that
read?' he asked.
at have no recollection OF It,
.rDo YOU claim that the record is in any way
inaccurate?"
"Kuhn, Loeb & Co. knew nothing or It,
DO you want your testimony to stand on
the record that, apart from what you under
stood. the record Of the society is false!
NO KNOWLEDGE OF ENTRY
"I would Ike to advise with counsel, but
will say that have no knowledge OF any sucn
entry
Mr.. Hughes read the minutes of the meeting
of the finance committee Of July g, 1915 IN
which there are references to 100000 Union
Pacific preferred stock
81 do not remember that any syndicate trans
actions were brought to the attention OF the
finance committee" Mr.. Schiff said Mr..
Hughes, referring to the testimony taken by
State superintendent of Insurance Hendricks.
asked Mr. Schif If that part of the testimony
referring to the check of the Equitable Life for
the purchase of Union Pacific was false
Mr.. Hughes finished his examination at this
point, but Mr., Schiff asked for permission to
make statement, and rising from the chair,
talked with fearful earnestness for several min
utes, moving his arms and emphasizing his
words with evidences of extreme feeling. He
said:
Gentlemen, I've been before the Superintendent
Of Insurance, and part of my testimony mas been
gardng it to my damage and 10 the uaildse OF my my
firm. 1t has been said that the EqultapIe DouShr
Japanese bonds OF Kuhn, Loeb IL Co, ana AFTER
ward sold them back at a lost OF 212 per cent.
This was a mistake. Perhaps the superintendent
who has so closely watched the insurance com
pantes knows the rate or eXchanse -,
that Kuhn Loeb & Co. monopolized the business
of the Equitable Life. The Equitab bought Sl97,
100000 of securities, OF which hunn' Loeo & 60
have never asked any favor from the Equitable
have granted it many favOrs. 1 am not conscious
OF any sin Of commission. may nave been guilty
of some sins of emission 1 have been the best
director that I know how to be. 1 have done my
duty Kuhn, Loeb & Co. have marketed 81, 900 600
Life. Does that look like favoritism? FOrty-two
million dollars to the Mutual, $31 600 600 to the
New York Life. While many strong securities, such
as the New-York Central, have declined in value
the securities sold by Kuhn, Loeb & Co. to the
Equitable advanced to make a profit Of
$4,000.