The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-07-12

Equitable TrustY 4. Yes. sir.
O., And save 1t harmless from taxing those
bondsi A.. Yes, sir.
A. No. Why, that never went through
really don't know. ,s.,
Yo agreed to That soud
have to refer that to the manager and the
aSyet Sh lew u do YOU think that this paper
nxes any liability on you OF any kind? a;
As la wyer don t think So and am informed
by the counsel Of the receiver that II aoeS
Further testimony regarding Mr.; De
pews liability was given by Gerald y.
Brown, superintendent of the Equitable. :
bond and mortgage department: he sad
that H. b. Anderson, counsel for the
DepeT coMmpaWTy sb ha an aSMi Mr.
Depew contended that there was no per-
sonal liability against them. Mr.. Brown
said that he had spoken to Mr.. Depew on
the subject and that Mr.. Depew led him
to believe that he was going to see the
Equitable through without loss.
said in substance that he had been dragged
into this matter by Wal tier WebbLwhQ Is now
deceEsed-1 believe. brother of pr PA SeW ~S,nr
sunk SUM- SIS. 600 to $50, 900 OF his own money in
It, which Dt he mora %4s to S bep 70 the
and get 1t out without loss. 49,. ~
O, Did he say IL g. substance ... that 9at NJ, he
d TIa,a save A. y es. he sD did MAJ nav
o That promise on his part has never been
REDUCED ,bs Sr,hnfS except 80 shr as 1t
O. And l suppose that you understood a
personal promise of the sort was not Legally
6Gdq 81 a yoa Know yS% If Mr. if Dpsx made the
same statement to. any other person IN your
presence? A. lie made that statement to the
Comptroller Of the society IN my presence
q. To Mr. Jordan? A. Yes. sir,
pEpEw PART IN SALARY INCREASES.
MIR. Depew was reminded that he and V. P.
Snyder recommended the increase OF the
salaries Of President Alexander and Vice
President Hyde and was told that some per.
sons thought that Hyde was getting a
pretty large salary. for tho work he was
Of the increase the company's business had
been increasing so we'll that he felt that the
salaries were justified. He said that had the
elder Hyde paid more attention to his per-
sonal fortune and less to the society he might
have left much larger estate and admitted
that sentiment had much to do in making
the increased allowance for young Mr..
Hyde. Mr. Depew admitted that when he
recommended the increase of Hyde's salary,
to 100000 he was not aware that Mr..
Hyde was receiving about SIS. 900 from sub
sidiary companies of the society.
Jacob H. Schiff was questioned mostly
about the dealings which his firm, Kuhn,
Loeb / Co.. had with the Equitable, of which
Mr.. Schih was member Of the finance COM
mittee. Mr.. SchiT, according to his own
testimony, was dummy director for about
twlve years. When he became a director,
he said Ave shares Of so-called Hyde stock
were transferred to his name to qualify
him, but when the trouble in the society
came to head he bought five shares of the
associations stock from Comptroller Thomas
II ii I.,s ii oh rC
for it.. Many of the questions asked OF Mr..
Schi~ were prompted by parts OF the records
OF the association.
Il note by this paper" said Mr. Hen
dricks," that on May 25 1904, you sold
81. 700 900 Of the Japanese 6rer cent. sterling
you sold 81. 4s5 $50 of that loan at 931a and
interest. 1t appears that on Nov. is they
resold 81, lOl, 253 at 9lis fiat to your com
pany. Do you think that was good sale
to them at that time|
1.-THE executive committee decided, unn-
fuenced by any member of the firm Of Kuhn,
Loeb 4 Co, when they want to buy and
when they want to sell securities, replied
Mr.. Schiff. Il have never thought to in
iuenoe officers or members of the executive
committee as to what they should do. II
they had waited longer they would have
made a very large profit on these bonds.
Perhaps the officers thong ht they needed
the money perhaps they Thought ii was a
good time to sell perhap p, they though they
could buy them cheaper again.
KUHN, LOEB co. bond SALES
The Equitable then bought 81 900 900
OF second series bonds from Kuhn, Loeb
Il Co. at $50 and sold them at ai+. a
few days after the sale the bonds went to
par. Mir. Schiff made this explanation Of
the con.any's selling :.
an a few days there was probably
great victory for the Japanese. | want
OF the T.; luitable society to sell liz some
thing that they had; i; tl'oy wanted to resell
sonnet hing it Is for some reason which their
own committee has decided, and naturally,
we being dealers in those bonds, when
they said make us an a..z r we did, which
was almost the market price. We offered
the bonds to them, but have never solicited
a resale to u.s..
1t was also brought ou' that on July s
Mr.. Schff's firm sold to tho Eeuitabln
81 900 600 in Metropolitan A. OF 200! n, h.'a.
less onehalf and interest, and tia. these
bonds are now worth only ii.
Mr.. SchiA declared that his firm had
never sold any Union Pacific preferred 70
tho EQuitabe, or, in fact, any other stocks.
RECORD FALsIYIEp. SAYS sCHlPr
q. Tn, record shows TINT on Jan q. 10000
D, eh" .ed " from Khn Scb CO. aid a
thorized ~ the fiaanc" committee Feb 2.
1903. at 100
a
first place. the finance committee, could not
other il that the record must he wrong. for
repeat my statement that Kuhn. Loeb 4 Co.
never sold Union Pacific preferred stock
TO the Equitable Life company
q OF course. | am only giving You the
record 4 The record mus, be false,
q 1t was approved Feb 2. loDa, by tho
finance committee" present Krech. Wilson.
Drpew. Schif, Snyder, the president and
vice pres ident 4 The EQuitabl" Life In
surauce company may have bought Union
Pacific preferred stock it certainly never
bought an" from Ku I'm. Loeb 4 Go.
q. The statement here IL from Kuhn. Loeb
4 Co A The statement must be wrong
@. Is the Equitable Life in n syndicate to
buy Union Pacific preferred stock: A. To
my certain knowledge the Equitable Life is
not In any syndicate for Union Pacific pre-
ferred which is under the charge Of kuhn,
O. Is James H. HYDE A. Wouldn't you
better ask that question of Mr.. ]ar"s IL.
HYDE
Q. The record shows that the Equitable
Life Insurance company paid to Kuhn, Loeb
X Co. on Jan. %, 1909. S500.oo0 for thun.Op of
that stock; on July 10. lao3, it paid sDou, VIp to
Kuhn. Loeb Co. for spOn. O00 of that stock.
and on July ~. 1904, they paid s27o,ooo for
DeminG wcr" III" only non al the fnancr
of July 10 were present Mr.. squire. Mr.. SchiN,
Mr.. Snyder and MIR. Deming. \. cant
remember details of these, but can only an
swcr for Kuhn. Loeb 4 Co. that they never
sold any preferred stock of the Union Pacific
to the Equitable Life.