Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-11-15
First Witness on the Stand in
Insurance Inquiry
NEW YORK CITY TODAY
INTERESTING DETAILS OF METH
obs OF THE EQUITABLE.
Some Unwritten History of the Manip-
ulations for His Holdings of
Stock-Four Offers.


the Armstrong committee on insurance in
vestgation. He asked to correct his tesu-
mony of yesterday relative to offers for his
stock. He said he did receive four offers
beside that of Mr.. Ryan. Two of these
came from Mr.. Hartman and Mr.. FricS
He was offered $1,000 600 for his entire hold
Ings and 81 500 eco for half of them. George
Gould also made such offer but these
were all declined because witness did not
think one man should control the society
Gage +. Tarbell made an offer, and said
lie had a syndicate ready to buy the stock.
George w. Young also offered to buy Mr.
Hydes stock. These all verbal offers.
The largest price offered was $1,000 600, by
George w. Young, former president of the
United States Mort gage and Trust Com
pany. Mr.. Gould's offer was made first.
THAT was in the beginning of the row.
said Mr.. Hyde. 1T must have been in the
beginning OF February; the second offer
was made by Mr.. Frick a few moments before
the first board meeting In February of
s5,O00,00O for the entire holdings or of two
and one-half millions for one-half of the
holdings. l declined both of these offers, as
did not think It was for the best interest
OF the society that I should then part with
my stock or if | did part with it, l didn't
think ii for the best interest of the society
that one individual should control it,"
Had No Idea of Selling Stock
Il had no idea of parting with my stock
at this time | offered 10 trustee it to the
society for five years. That was at the
beginning OF this trouble. l first offered TO
trustee it for five years and then after
ward offered it to the society 10 buy it, and
then / afterward discovered the society
didn't have the right to buy it,"
What was the third offer?
'The third offer was an offer of one mill
lion dollars from Mr.. Tarbsn. He informed
me that he had a syndicate of gentlemen
ready to purchase it. This was some tine
in February"
What was the next offer?'
Then l also received an offer from Geo.
w. Young of 100000. l should say that
was at the end of February or the begin
ming Of March. 1 am not sure of the exact
date"
Mr.. Hyde testified that the only offer for
his stock made after the Frick report was
Mr.. Ryan's.
Source of Charter Revealed.
Reading from the acts of 1868, 1869 and
1870, Incorporating the Fireproof Ware
housing Company and amending the act to
change the name to the Mercantile Loan
and Warehouse Company, and subsequently
in 1875 changing the name to the Mercan-
tile Trust Company, Mr. Hughes brought
out the source of the Mercantile Trust
Company's charter. He then read a bill
introduced by Senator Amber IN the SEN
ate in March, 1904, TO repeal all these acts
and amendments. The effect of this bill, If
passed, would have been to leave the Aiec-
camille Trust Company without charter.
Mr.. Hyde here made a statement denying
that he or the Equitable Life Assurance So
ciety had anything to do with, or any in
terest in the United States Shipbuilding
Company or its securities.
on March IT, 1901, the Equitable Life AS
Eurance Society bought 0UO shares of the
Lawyers Title Insurance Company at S1I4
per share. and two days later sold l 100
shares at the same price to George II.
Squire
Did Not Know of Any Deal
Mr. Hyde said he did not know of this
deal. though he was a member of the ex-
ecutive committee. and did not know that
the stock was worth a great deal more a
short time after.
Mr. Hyde said he sold to the society on
October IL, 1904. 2SS shares of this stock
at 8l5 and that was the only transaction
he had In this stock. The price was the
market price at that time. Stocks were
bought on Mr. Hydes account from Will
hanson & Squire. but Mr. Hyde denied that
he had bought from them. and said that no
one had his power of attorney
He knew brokers Were picking up this
bought for any of his own committee,
Some of the purchases, he said were made
for Thomas ID. Jordan. but Mr. Hyde knew
nothing about IL, and never had any con-
verSauon with Mr. Jordan upon ii.
After the change Of name from the Amer
lean Deposit and Loan Company to the
Equitable Trust Company, officers of the
Equitable Life Assurance Society were buy
ing the stock o. the Lawyers Title Insur-
ance Company In the name of the Ameri-
can Deposit and Loan Company. and TAX
Ira.r
first Mr.. Hyde had heard of this trans
action.
Hyde Could Not Remember
Mr.. Hyde said he could not remember
that he had ever received any money or
division OF profits from George H. Squire
and Il would be difficult to refresh his
memory because his books have been in
most confused state since he left the
Equitable Life. He did not know that 1t
was possible for Squire TO sell stock to the
society without the knowledge of the
executive committee. but thought il could
be done 10y an arrangement with the presi-
dent.
Mr.. Hyde said he was unable to ascertain
who held his power of attorney while he
was abroad because when he returned the
papers were always destroyed.
Senator Armstrong asked the witness IL
an obligation purporting to have been made
at time when Mr.. Hyde was abroad
should turn up now how he could deter
mine If II was a legitimate transaction
Mr. Hyde replied: II don't know, sir. 1t
would be very embarrassing"
Expense Not Discussed
The amount Of expenses incurred by Mr.
Hyde on behalf of the society was not gone
into. Mr. Hughes announcing that this
matter was covered in the report to Super
intendent Hendricks. and it not his
purpose TO go into matters so covered. be-
cause of the limitation of the committees
time.
Mr. Hyde added to his statement in that
report, an explanation OF the care used in
making up the report of these expenses.
He said that he would have been glad at
any time to have gone over these ex-
penses with any members of the executive
committee but he was never asked a ques-