Los Angeles herald., 1905-09-30
LOOKED AFTER
THE LEGISLATORS
BIG INSURANCE COMPANIES
HAD POOL
"chipped In" to Hire Counsel to Guard
Their Interests-Jacob n. Schiff
Makes Defense of His
Course

ing information which he was unable
to supply.
He was followed in the afternoon
session by Edward I. Devlin, the real
estate manager of the New York Life
for the United States and Canada. Mr..
Devlin was called to testify as to the
cost of the buildings in Paris. He had
only the transcripts of the reports this
department made to the home office,
but it was brought out that the Paris
building was carried on the books of
the company at valuation of $1,1O2, ,6O4,
on which account, with the Official
costs and improvements on the build
ing, actual money to the amount OF
$2,55S, 1o4 was paid, over one million
being charged off the valuation on the
books of the company.
Mr.. Devlin said the net income on the
building to the New York Life was
11 per cent on the actual amount In
vested in the building, or between 3
and 31h per cent on the amount at
which the building was carried on the
books of the company. Mr.. Devlin
was on the stand when adjournment
was taken, but he will be called again
to submit transcripts of the records
to supply further information.
Not the least important development
of the day was the appearance on the
stand of Jacob B. Schiff, head Of the
banking firm of Kuehn, Loeb & Co.
Mr.. Schiff was the first witness Of the
day and he remained on the stand until
2 o'clock Mr.. Schiff had been waiting
in the committees session chamber for
a day and a half, being under sub
poena, and when the usual time for
recess arrived Mr.. Schiff desired to pro-
ceed, as he had an engagement for
the afternoon. Mr.. Hughes explained
the situation to the committee and it
was agreed to continue until Mr.. Schiff
had concluded his testimony. Most of
the time Mr.. Schiff reclined leisurely
in the chair on the witness stand. but
as one point after another was brought
out he grew excited and vigorously
claimed his firm had acted in a con-
scientious manner in all its dealings
with the society.
Schff Defends Himself
At the conclusion of his testimony
and before the committee could adjourn
Mr.. Schiff asked to be allowed to make
a statement. He was permitted and
he stepped forward on the platform
and made an impassioned attack on the
state superintendent of insurance and
statements he had made concerning
Kuehn, Loeb & Co. during the investi-
cation of the Equitable. Mr.. Schiff
emphasized his remarks with rappings
on the table and frequently he raised
his voice until it was almost shout.
During his testimony, too, Mr. Schiff
made the charge that the minutes of
the finance committee regarding a GER
tain meeting were false. He later
qualified this, however by saying If
the transaction under consideration,
one in Union Pacific preferred, was
actually made he did not hear of it, al
though he was present at the meeting.
Again during his testimony regarding
the power of the finance committee of
the Equitable society Mr.. Schiff waxed
warm in his explanation and said that
the entire committee was at the mercy
of one man. "It was all Hyde" said
Mr.. Schiff, "all Hyde and Alexander
Mr.. Hyde wrote the messages regard
ing the offers made by my firm for par
ticipation in the syndicates; Mr.. Hyde
signed all the receipts; Mr.. Hyde wrote
all the letters"
In the matter of the James H. Hyde
and associates" syndicate Mr.. schife
hotly accused Mr.. Hyde of trying to
shield himself. He said the position of
a director in the Equitable was that
Of a negligible quantity and that the
directors were mere figureheads. He
said further that he had never asked
any favors of the Equitable society.
II have granted many favors." he
said. "I have not done. as a director
of the Equitable, any wrong of COM
mission. I may have done Of omission.
1t is a case Of hindsight and not one
OF foresight. But my conscience frees
me of my bond. have been as good
a director as I knew how to be, and I
did my duty"
The committee adjourned until next
Wednesday morning.