Omaha daily bee., 1905-09-30

no place for the finance committee, as the
executive committee took the initiative In
all investments and there was an auditing
committee with powers equalling those of
the finance committee.
Custom Outweighs Bylaws.
do I understand" asked MT Hughes,
that In corporations custom outweighs
bYlaws7"
TN the Equitable this was the case"
replied Mr.. Schin.
Mr.. Hughes stated that he found that
w. H. Mcintyre and d. J. Jordan, MEM
bers of the finance committee had reported
to that committee in 1904, that they had
examined the securities Of that company
and found them correct. Mr.. Schiff said
they were appointed by Mr.. Hyde, the
chairman Of the committee.
Mr.. Hughes said: Now in consideration
OF the facts that have been developed at
this inquiry that the Equitable accounts
were kept in the names of parties to whom
they did not belong, that funds of the
society were not entered on its books,
want to find out what supervision was ex-
erclsed. Now, 1 understand that the
executive officers had complete charge Of
the society that the finance committee
dealt with the investments and sales of
securities only after they had been made
and that with the important power to ex-
anime the accounts, the finance committee
did nothing but appoint two Of the executive
cflcers to conduct the examination for
them"
1.-THE chairman in all committees APP
points the subcommittee" replied Mr.
Schift
Checks are not necessary II all men are
honest" said Mr.. Hughes.
Hyde Made Mistake.
81 have always believed every man hon
est until I found him dishonest" said Mr..
Schiff This has always been my theory
and practice through life"
In reply to question by Mr.. Hughes as
to whether he did not think there ought
to be more supervision OF insurance COM
panies, Mr.. Schin said:
There is no doubt OF II, but no law
can secure 1t. Do you expect every di-
rector to have accountants at his disposal
TO examine the accounts of every bank, in
surance or trust company" Mr. Schiff
said he understood that the Equitable So
ciety was audited only by two of it's ex-
ecutive oficers-Mr. Mcintyre and Mr..
Jordan-and that Mr.. Hyde appointed
them.
Said Mr.. schiff: IT think he made a mis-
take because he actually kept board of
directors absolutely at the mercy of one
/ man"
Mr.. schlff said he would like to see an
insurance company looked after as strictly
as his own banking frm and its executive
oficers held TO as strict accountability as
his own cashiers.
! Bylaws Presented.
| copy OF the bylaws governing the
| finance committee was introduced and was
| identified by Mr.. Schiff. These bylaws pro.
vided for an auditing committee Of five
directors to pass on all matters thus de
| priving the finance committee OF much OF
it's power. A list OF FIVE names was handed
| Mr.. Schid, but he was unable TO say
whether the men named on It composed the
! committee They were c. b. Alexander
Valentine p. Snyder, Thomas d. Jordan
w. II. Mcintyre and William Alexander
| Mr.. Hughes said this list was handed hin
by an oficer OF the Equitable, subject &c
correction. Witness testified that the chair.
| man Of the finance committee annually
appointed members to audit the society.
accounts and report to the finance com
mittee. and in that way attempted 10 main.
tain supervision of the socisty's funds
| During his connection with the society
Mr.. Schin said he never heard anythinl
| OF the numerous trustee accounts, and q
was never brought TO his attention tina
| moneys OF the society was carried undel
an account In which they did not belong.
| As 10 Political Contributions.
Mr.. Hughes asked him about compaigI
contributions by the Equitable society. Mr.
sehin said in reply that Cornelius n. Bliss