Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1905-09-30
WELL KNOWN NEW YORK BANK
Err DECLARES HYDE RULED
THE EQUITABLE.
RECORDS ARE WRONG


New York Legislature De-
MES Charges That Have Been Made
Against Him.
New York, Sept. 29-Jacob H.
Schiff, head Of the banking firm of
Kuhn, Loeb & Co., testified today be-
fore the life insurance investigating
meeting of the finance committee of
in February. 1903, were false in record
Ing the purchase of $5o0,O00 worth of
Union Pacific stock preferred for the
holding account Schiff said he was
present at the meeting and that no
transaction was made
ut Was All Hyde"
! Schiff expressed the opinion that 1t
was wrong for James Hyde to partici-
pate personally in the syndicate trans
actions. He did not know, he said
that Hyde had done so until these dis
closures. THE Equitable" said Schiff,
was at the mercy of one man either
Alexander or Hyde. It seems to me it
was all Hyde. Everything was Hyde"
Says Charges Are Unjust.
At the close of the direct testimo ony
Schif asked to make statement. He
defended himself from the various at
taeks which he said had been made
against his firm and himself by the
state superintendent Of insurance and
others.
New forms of manipulation in the
management Of the New Y FORK Life and
the Equitable Life were disclosed at
yesterdays sessions of the Armstrong
investigating committee. i's
George w. Perkins, the partner Of
J. P. Morgan and vice president OF the
New York Life, was the most inter
esting witness OF the day.
Hughes Becomes Angry.
Once Chief Inquisitor Hughes of the
committee became angry with the wit
ness. Mr.. Hughes had asked Mr.. Per-
kins to produce one Of the books of
j. P. Morgan & Co. containing an entry
of a sale to the New York Life of
$4,000,000 of ST. Louis Terminal bonds
in September, 1902. Mr.. Perkins said
the books contained such an entry, and
when Mr.. Hughes asked for the book
he replied that he would have a copy
of the entry made and produce that.
Mr.. Hughes insisted that he wanted
the book itself.
Mr.. Perkins said he would furnish
only a copy of the entry. Mr. Hughes
lost his temper and told the young
partner Of Mr.. Morgan plainly that if
he didn't produce the book the commit
tee would make proper use of its power
to compel him to do as he requested
Mr.. Perkins then promised to bring
the book to the committee.
1t was shown during the session OF
the day:
/. That George H. Squire. former
financial manager of the Equitable
Life, to pay on a participating in j
P. Morgan & Co.'s Navigation syndi
cate, borrowed $250,000 from the
Equitable Trust company, the only Sc
curity he put UP for the loan being a
certification of his syndicate participa
ton and the receipts given by the
syndicate managers for the money he
borrowed from the trust company
He raised 100000 in the same way
from the same company to meet calls
Western Maryland syndicate.
2. That John R. Hegeman, presi
dent of the Metropolitan Life, has
been a steady borrower of money from
the New York Life since December
80. 1902 and that for most of his loans
he paid only LIZ per cent interest
John A. Mccall, president of the New
York Life is director of the Metro
politan Life.
n. B. Hyde's Salary Secretly Raised
3. That the late Henry B. Hyde hac
an agreement with the Equitable Life
by which he got commission on the
premiums paid into the society ant
that on February 2, 1888 secret reso
luton was adopted by the finance
committee increasing his salary from
$4,000 to $4,000 year, the increase
to date back to January 1. 1885.
This secret resolution, which was
not entered upon the minute book o1
the finance committed also provides
for pension of s25,oO0 a year to his
wife, to take effect upon his death.
4. That in purchasing s4000,000 o1
st. Louis Terminal bonds in Septem
ber, 1901, from ]. P. Morgan g. Co
for the New York Life Geo. Perkins
made the bargain with himself, act
ing as the buyer for the insurance
company and as the seller for Morgan
& Co.
5. That in its sworn statement tc
the insurance department on Dec. 81
1901, the New York Life gave as its
profits on sales of securities $3,075,
371, when in fact they were s5,253 ,541
This misstatementsw was made to cover
up real estate losses of SS43 ,S90 ad
Continued on Page 80