The sun., 1905-09-05


There was not word Of consequence In
the report In regard to Edward II. Harrt-
mans relations to tho Equitable; not single
referenoe, to the $4,000 900 Union Psoiho
pany's loan OF $3.50, 600 from the society was
Ignored utterly; the Senator's explanation
OF his go, COO year retainer was passed over
With out notice; that $osS, 900 loan account,
from which lobbying fees and blackmall
diversions, all Of which took place within
the rang, Of Henolrickss official duties, were
omitteU.
The full copy Of the testimony s shed. she; I.
fs is sGs sh' IN the s''s nes
Pacific pool. 1t appears that the State
Superintendent not only had the word Of
James H. Hyde under oath that Mr.. Harri-
man and Mr.. Schif knew that the
guiring the 81 $40, 600 Of Union Pacific pre-
ferred stock under Ave year holding
agreement. but he also knew that the entry
OF that stock In the socety's annual report
had been changed from Union Pacine
Preferred Stock Syndicate, In 1904, TO
Hyde testified that Mortimer L. schiff,
a son of Jacob H. schiff. and q member
Of the firm OF Kuhn, Loeb d Co.., called
at the Equitable Office and said that ne
wanted the society to publish the Union
Pacific preferred syndicate not as a syndi-
cate account, but as an out and out holding
of the stock.
Jacob II. SchifY swore that he had no
knowledge that Equitable funds we're being
used in acquiring the stock under the nolo-
ing agreement, although. according TO the
records, he voted his approval as member
OF the society's finance committee. He
declared that he knew only Mr.. Hyde IN
the transaction and that the records OF
the Equitable were false when they re-
corded the sale OF the stock by his 1rm
to the society Here is some further tessi- st.
mony by Mr.. Hyde on that feature OF the
Equitable scandal
Q. In your, judgment Kuhn. Loeb 80; SO
understood that you we're acting 10 Tor oiie We
Equitable ~ sosIety YES s'T' am ao''
p'oepeMSGo Mr.. sohii! @ says that Kuhn, Loeb Co:
never sold doaTs worth Of tso stock x OF dsyy sny
NS wi'S him; ,H x? he sent member Of his rm ana s,
suggested that It should be carried In q dil-
feIent shaRHe re- Ennit.bIe Ehiih showed ne S"e"
Mr.. Hyde testified also that Hartman
had visited President Alexander with him
when he got the latter's consent to 60 into
the syndicate. Yet, IN spite OF the fact that
the evidence showed conclusively that the
poicyholders' money was used IN the trans
more or less than transaction TO help n. q.
Hartman get control Of the Union Pacific
road, Mr. Hendricks failed even to call the
railroad mAgnste to the stand
Mr.. Hyde testified further that Mr.. Har-
sn had the the 9n Sa ad pi tue to Se
il to him. Mr.. Hyde told the SuIerin-
tendent that Mr.. Hartman had said that he
might let the State Superintendent look at
its terms. Mr.. Hendricks questioned all the
other officials Of the society who had any
knowledge Of this transaction. but he did
not summon the ringleader In the syndicate,
the mar, who held the syndicates records
and who had been charged by Mr.. hyde
With having gone before President Alex
ander with him to get the presidents con-
Mr.. Harriman's Office s in the Equitable
Building, not far from the room In which
MI. Hendricks held his hearings, but IN the
month that elapsed from the time that Mr.:
Hendricks began to take testimony nnth
Mr. Hartman Tss enedh h, as ,ar any
ton regarding the Equitable,
M. Hartman himself said, after the re-
port was made public, that he would have
been glad to shoN the document TO any
properly delgated onical. snd , II DstIiGt ts;t
To Mr.. Harriman's Office that the Super
intendent Of Insurance might have had &C.
cess to the document at any time II ne nad
90 desired. 49,,
Mr.. Hendricks's official opinion OF this
Union Pacific transaction, as disclosed IN
tHe testimony, is that it was purely specu-
htive and entirely unpermissible for an
insurance company. Yet the TRANSACTION
was consummated in 1903 and Mr.. hyoe's
defense was that the Insurance Department
had never criticized OF oo}eSosso 10 w hes
port as as indicate account
Mr.. Hendricks has assumed the entire
responsibility for not having called Mr..
Hartman, stating that Mr.. Hartman was
a member Of neither the executive nor
the department had been unable to dis.
cover that MI. Hartman had ever sold
TO or bou sht any securities from the Equi-
table except 100 shares Of Mercantile Trust
Company stock which he acquired from
the society at $50 shars o snd ~nsn sae for IT,
he didn't think it necessary to get the facts
in gard to Mr.. Harriman's relations TO
the E9uita bic at first hand
He didn't think it necessary to question
Mr.. Hartman in regard to the accusauons
nonspired to get control Of the Hyde ma,
ioritv stock or to ask him about the persona!
loan Of n. 100. 900 which Hartman confessed
he cot from the Equitable when he had
denied point blank that he ever 6orrSwed
s,,nperini.ndsnt pii didn't think 1t worth .while
to AK Mr. Hartman whether the charge
was tr,,e that he acquired control OF the
Union Pacific Railroad or that tho celebrated
Northern Pacific corner through money
which he borrowed from the Equitable and
ia subsidiary institutions and then dumped
Il e7o 600 Of the preferred stock on the
Enuitable under . Ave year holding agree
nnent. He didn't think 1t worth while
to find out from Mr. Hartman whether II
was true, as charged, that he was member
OF several OF the big syndicates which dis-
nosed OF SECURITIES to the Equitable or now
happened that the society IN the year
iooaHa wear OF great financial depression
howg wght IN 81 Z, ,3l2, $40 Of the Hartman seouri-
ties at net loss OF $3.50, go.
Policvholders who are interested IN hav-
inc the methods OF the State department
laid bare express the opinion that these
matters and others ignored by the state
SUPERINTENDENT we're pertinent to the m
ouiry and they want to have the committee
disclose II possible the reasons for the
evasions and suppressiona. They want to
and ont Il Mr.. Alexander's statement Pc.
fore the State Superintendent is true that
he might easily have escaped all this trou-
he nv ANN annoyance and sacrifice. BY simply
letting things 20 as they were They want
20 ascertain, toe, in greater detail why
two former Superintendents OF insurance
The Weather.