Omaha daily bee., 1905-09-30

had told him that Mr.. Hyde had con-
tributed to the last campaign, but he did
not know whether it was the society's
money or not.
He knew absolutely nothing as to how
the money of the society was used by the
executive officers until they chose to in
form the finance committee. Mr.. Schiff
said it had been suggested that the So
ciety's accounts be audited by outside ac-
countants, but 1t was opposed because It
was like carrying Goals to Newcastle to
have mere plgmies" of accountants, as
outsiders were looked upon, audit the ac-
counts kept by such experts as the Equi-
table employed.
Taking up the transactions of Kuhn,
Loeb s. Co. with the Equitable, witness
testified that the names of the firms from
whom contemplated purchases were under
Amusement were never mentioned in the
committee room. When Kuhn, Loeb & Co.
had and proposition to make to the Equf-
table, Mr.. Schif usually presented IL to
George H. Squire, who in turn presented il
to the executive committee, then 1t was
passed upon by General Louis Fitzgerald.
Witness said it was sometimes three weeks
before he could obtain a reply. These
transactions continued until General Fitz-
gerald retired and George II. Squire passed
upon the offers of bonds
Trusted Fitzgerald.
OF the transactions OF the Equitable
syndicates Of which Kuhn, Loeb Co.,
were the managers, witness said arrange
ments were made in writing. the terms and
amount and conditions being fully des-
cribed
Mr.. Hughes went into a line Of question
mo haf he
scription of how the syndicates are formed,
managed and closed.
you don't have to beg life insurance
companies to go into these syndicates do
your" asked Mr.. Hughes.
mo, indeed" witness replied.
Its pretty good thing TO be let in isn't
it,"
Witness smiled and nodded and Mr..
Hughes continued:
II Iaeant they are good things to be let
in." whereat Mr.. schiff smilingly nodded.
The list OF the syndicate transactions
! OF the Equitable was taken up and the
| manner of allotment of bonds were probed.
The allotments to General Louis Fitzgerald
were made to him rather than to the
| Equitable, MT Schiff said. because he was
factor In circle OF men whom he de-
sired to take into the syndicates As a
director of the Equitable It did not occur
! to Mr.. Schiff that the profits from this
would not go to the Equitable. He trusted
10 General Fitzgerald's fairness
| Mr.. Schiff stated that he had no knowl-
edge Of what allotments OF the stock taken
in syndcates were made by James H. Hyde
and associates.
I Union Pacific Syndicate.
Using as a text the report of the FricI
committee, which investigated the manage
ment OF the Equitable society. MI schif
was asked by the examining council 10 ex
plain the operations Of a syndicate II
Union Pacific preferred stock. He asked
permission to make the statement in hii
own way and then spoke emphatIcally anC
excitedly, rapping the table to emphasize,
his points. He declared that there had beer
unjust insinuations. He had told the stat,
superintendent OF insurance that when n,
said Kuhn, Loeb & Co, had sold 81 10000
Of Union Pacific preferred to the Equitabl,
society he had circulated a false repor
and Mr.. schif said he stood by that dec
laration now. The Union Pacific preferred
stock syndicate was not formed by Kuhn
Loeb & Co, and they never sold the stocl
to anybody. II was formed by e. II. Har
riman for the purpose OF getting a con
centrated holding OF Union Pacific stock
Kuhn, Loeb 4 CO., he said. acted merely al
a clearing house. purchasing the stock OF
the exchange and selling IL TO the sub
scribers at cost. II made no profit Tn,
syndicate was for t5O.OOOOOO. OF which nearl,
the entire amount had been acquired
Among the names furnished 70 Kuhn. Loci
4 Co. as participants was the name Of