The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-09-28
NO MONEY PUT UP
Testimony Before Insurance In
yestigating Committee
Shows Enormous Profits With
out Dollar Invested.
BOOKS ARE DEFECTIVE
Many Important Transactions
Are Not of Record.
Geo. w. Perkins Recalled to
Clear Up Some Matters.
BOOKS ARE DEFECTIVE

a SACAh ClklPlOS GU ny luE EQulldDlS Lie
Assurance society. continued his testi-
mony before the legislative committee
today. He gave further details of the
payment of checks to the George H.
Squire trustee account. Concerning one
entry of $4,000 deposited to the account
on July II. 1901, and the immediate
withdrawal of the sum, by draft, Mr..
Greaves said he knew nothing. He did
not know where the money came from,
nor whom it was withdrawn by. He
could supply no information regarding
the Chicago and Alton deal
Other syndicate profits in 1902 and
1903 deposited with the American De-
posit and Loan company to the credit
of this account, witness was unable to
explain. On May 1, 1901, a new book
for these entries was opened and a bal
anee of $62,770 was credited. The bank
deposit book was kept by Thomas D.
Jordan, at that time comptroller of the
Equitable. Checks for deposit to this
account, Mr.. Greaves said, he delivered
to Mr.. Jordan.
Another entry in the George H. Squire
trustee account under date of May 2,
1902, was the first payment of $62, 700
on a Navigation Securities call by Or
der OF James H. Hyde. This money
was borrowed from the Equitable Trust
company by James H. Hyde on May
5, on the participation scheme. Witness
knew nothing of this, merely making
the entries at the direction of Mr..
Squire. Another entry showed a loan
from the Equitable Trust company Of
$65, 900, being the second call on the
Navigation Securities and this was paid
on the order OF Mr.. Hyde. On October
s, 1902, another loan of $4,000 was made
from the Equitable Trust to cover an
other call on the Navigation Securities
and January Is, 1903, a ten per cent call
required a loan of $4,000. July 20, 1908,
fifth call demanded 200 which was
also loaned by the Equitable Trust COM
pany. These calls were paid on the Or
der of James H. Hyde.
Mr.. Squire drew a check for $4,000
and on April Is, 1904, another for $500
to reduce the loan from the Equitable
Trust company on account of the naVi-
cation Syndicate but when the divi-
dends came in they were not credited
to the general Squire's trustee account
This account is still running and is
carried on the books of the Equitable
Life Assurance society.
winthrop Recalled.
Harry Rogers Winthrop, financial
manager of the Equitable was recalled
to the stand. He said the Gen. G. H
Squire trustee loan is carried as a loan
for the Equitable Trust company in
the same manner as other loans are
carried.
Mr.. Winthrop, in answer to a ques-
ton by Mr.. Hughes, counsel to the
commission said that in his opinion all
| the money used in the transactions was
money really belonging to the Equita-
BILE society.
| A letter to the president of the Equi-
| table Trust company dated March o
| 1903. signed by Geo. H. Squire, stated
| that he was acting in the matters, re-
lating to the George H. Squire trustee
| account for the Equitable Life Assur-
ance society, that he was not person
ally responsible that all checks were
subject to the signatures of William
M Mcintyre, Thomas D. Jordan anc
George H. Squire and that all moneys
| in both the deposit and loan accounts
belonged to the Equitable Life Assur-
| ance society.
Mr.. winthrop was asked about 6
check drawn to the order of the socl-
ETY. on August %, 1896, for $23,9l9, wh1cf
was the profit in the participation II
the ST. Louis and San Francisco syn
dicate He said a careful search failec
to disclose that it has been recorded IL
any of the books of the society. Exper
accountants are still searching. This
| was also true of a check from the Mer'
! camille Trust company for $2l,9O6 or
April 30, 1897, and another for $72,t9'
on August 26, 1897
u p. Reorganization.
Taking up the Union Pacific reorgan'
ization, Mr.. Winthrop said there were
! a number of syndicates all related tt
l
Mr.. winthrop said the Equitable soci-
| ety received 1888, Ats in profits.
| The next Union Pacific syndicate net
| ted the society $58,96S on participation
of 1915, ,0O0.
the Equitable participated to the
| amount of $2,90O,O0O, from which it
secured profits of $912,S25.
From a fourth Union Pacific syndi-
cate on a participation of 100000,
| ~. NH mOnGV,
it derived a profit of $43,475. Another
one, participation of 100000, netted a
profit of $4,000.
No money was put up in these
transactions.
| Previous to this transfer Mr.. Win
Ithrop was holder of twenty-five shares
of the stock of the Equitable Life. Mr.
winthrop testified as he did before the
| state SUPERINTENDENT of Insurance thai
he believed sthe owner of this stock
was James H. Hyde because he turned
| over the checks for dividends to Mr.
Hyde.
The subject of salaries of the officers
was then taken uD. In the minutes
of the finance committee for February
q 1888, mention is made of a "specia
minute relating to compensation OF
officers, but it does not appear on the
hooks of the society. Mr.. Winthrop
lhad. seen it when he was given copy
to show to President Morton. This
| finance committee fixed the salary OF
Henry B. Hyde
George w. Perkins. vice president OF
the New York Life company, was ther
| called. He stated the New York Life
Insurance company had no interest in
the syndicate. The Equitable Assur-
ance society paid 80 u for their Navi-
cation bonds. Mr.. Perkins was asked
to clear up some of the questions thai
he was unable to answer when the
Investigation started. He said there
was no account of the authorization OF
the approval by the financial commit
4 t.,a c,f hn1ads x.-l1ieh 11rare