New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-09-30
at WAS ALL HYDE-ALL HYDE AND ALEXANDER"
JACOB H. SCHIFF DECLARES SOCIETY WAS At THEIR
lfERCY-DEFENDS HIS OWN LOTIONS.

control. Finally he inquired as to possible
checks to such possibilities for dishonesty as the
examination had disclosed 1t then that
Mr. Schif declared earnestly that he did not
believe any law could protect against dishonesty.
Mr. Hughes continued:
o.-Do you think it is entirely hopeless to en- en-
deavor to have supervision of the actions OF the
executive officers and condition of things IN
accountable? A-This stats pays the sUperintend-
ent of Insurance salary. He has very high po-
countants Do you expect every director or every
member Of committee be 1t naace or
at his disposal to go into the accounts OF me Sc
insurance ba9k or trust c9mpaydo you expect
him to do that? If you do, you will not find many
members Of the executive committee Of the E9T 1
taoie LIe Assurance SoGlery IN 0ba OF of The
executive committee of any society.
case of the Equitable society the actions of the
executive officers you refer to are audited ex.
now remember which subcommittee there were
executive. take your word for 1t that they
OF notice here that they were Mr.. Mcintyre
ap9 NJ %ho was the chaman ny chair
man OF the executive c9mmteeT Don't Kqo be, VINO
the charman Of the finance committee e., OF late la{e
also. It all Hyde Qaughter)-an Hyde and
o@Weii, that gives point to my question Now
a moment ago you were referring TO a committee
on accounts representing the board OF directors
rectors, and consisting Of very estimable gentle
men? A-Yes. sir.
ALI. AT ONE MANS MERCY"
o.-Now. did those gentlemen act in supervising
posed Of the executive officers themselves? A
to he te n and f he appnted
men; the committee had nothing to say about 1T.
You might as well go Immediately to the very bot
tom Of the whole question, the whole system You
have said before that MI Hyde S%ngd a]9 dye OF
tors you made mistake to become directors OF tne
5sTence and don't 9TH think will follow the same
system again be subject to the consequences OF
% o@Why DO you say that. Mr. schn? Why did
tha{f thew became directors in society which was
not only by CUSTOM but actually, at the mercy OF
0EThen you don't think that It is good thing
for insurance company or the nanagem gem IL
OF one man? A don't think it is good thing for
any corporation to be at the mercy OF any one man.
Mr.. schif disposed OF a suggestion that a
special examination by expert accountants
might have been asked for by directors, by in
dcating that the directors themselves held office
only on sufferance of tho owner of the majority
stock James HaZen Hyde.
Mr.. Hughes then went into the various syndi
cate transactions between the Equitable and
Kuhn, Loeb & Co. with great detail, dwelling
upon the peculiar relation of Squire and Fitz-
gerald to the syndicates. which has already been
described by other witnesses
sYNDICATEs TAKEN UP.
Alter running through long list of Fitzgerald
and Squire syndcates Mr.. Hughes asked:
QWhat you have said with regard to a the al IL
ali 61Inf eb ege? h 2t does
Q-Is the same true of the allotments to Mr..
3Hwbat IS the ii2 distinction? AIR. Hyde re-
seyeE his sBo5d 1h MADE @ M Hgde for f mime
self and the interest affiliated with the society
he participatcns were ali to James H. Hyde and
Associates upon the written request OF the society
6 befws se the d LIFT interests aaed with the
here if you would like to it Chanding counsel
letter..
which you refer? At is.
oao P6 X f6e soeeyS At is Signed James
II HYDE vce-president,' and written on the paper
Mr.. HughesHThe letter is as follows;
@ t4 9 my s0d esT 91 to-
ton with my associates. beg hereby to advise you
Equitable Life Assurance Society in underwriting
syndicates, etc. should be made in the name or
This you viii understand to include and repre-
sent the partcipaions Of the Equitable Life AS
poiitan Trust Company, the Western National
American Deposit and Loan Company the Com
mercial Trust Company Of Philiadeiphia the Frank
sonality l and my associates may designate
Believe me- yop E fstf e HYDE y,oe-Pres6ent
ITO Messrs Kuhn Loeb & Co, New-York."
The Chairman-4Are you familiar with Mr. Hyde's
handwriting? Al think that is his signature.
The Chairman-And are the words 'Vice-presi
dent" there written in his handwriting also? A
! think
Mr.. Cox then asked
O.-Mr Schif this letter seems to be dated here
1901 and then a blue pencil drawn through that
date and opposite written 1902? A-190l
slip of the pen; ii was 1902.
O Who did that-who changed it? Al don't
know: | don't know that: that the year. II
1902 II was In the memorandum. suppose. In pen
iii. the letter was handed to OF that date.
as il came from our books that it was received
said date, 1902.
O-Then that memorandum put your
books that 1902? Al don't know VINO put IL on:
! only know that the proper date OF the letter is
1902.
Mr. Hughes resumed the examination.
o-Mr Schiff I observe that in this letter Mr.
Hyde states at the beginning that, pursuant TO the
conversation with Il member OF your nrm and
after consultation with my associates indicating
Ii personal consultaton-and then at the close of
the letter after reCitnE who shall De considered
participating he adds and such personalities
! and my associates may designat tie A-fes
Q.-Can YOU state whom he refers TO by my
associates"-the words my associates Al cam
not.
Odd you understand these words to be sy
nonymous with the list OF corporations A-That
Is Misunderstanding: that Is my huppoSluofs