The Morris County chronicle. [volume] (Morristown, N.J.) 1877-1915, 1905-07-18
EQUITABLE DISCLOSURES
Amazing Testimony From Grafters
Who Looted the Concern.
CRIMINAL PROSECUTION NEAR

Tho New York World Publishes SUM
mary Of the Sworn Evidence Upon
Which The Hendricks Report WAS
Based--COnFessions of Depew, schiT.
Hyde. Alexander and Others.
New York City-A summary and
large section of the testimony upon
which the Hendricks report on the
scandals in the Equitable Life Assur-
ance Society was based were made
public by the New York World.
So damning a document has never
before emanated from a public Office
It calls into question the veracity,
honor and even the common honesty
Of men who have long stood high in
financial and social circles in New
York. It does more. 1t actually CON
victs some Of them ON their own testi-
m0ny OF offences punishable by peni-
Tertiary sentences.
Nothing that has occurred since the
beginning of the plutocratic age in
America has been so startling in its
revelations of greed. graft and whole
sale buccaneering
1t has shattered forever the glamour
that has heretofore surrounded certain
multi-millionaires Of the eminently re-
spectacle class, and shows in revolving
details the methods employed. by them
to rob the trust funds of widows and
orphans left in their hands.
Every member of the ring which
which preyed on: the Equitable is now
in danger of relentless criminal prose-
cution.
This testimony shows that the guilty
officials Of the Equitable have diverted
more than $20.O00.OO0 Of the funds of
the society within the last few years.
a summary of the most important fea-
lures OF the testimony follows
Chauncey M. Depew, director, tes-
titled that the Depew Improvement
Company, suburban land enterprise,
of Buffalo, had obtained from the
Equitable loan Of $25O.000 on prop
erty which the State Insurance Depart
ment had valued as only S15O,0OO. and
which was afterward sold on foreclos-
ure for $4,000 As a member of the
Executive Committee OF the Equitable
Dir. Depew said he had voted for the
loan, but denied that he advised 1t. He
admitted that later he with others in
terested had agreed to protect the
Equitable against loss, but said, as
lawyer, he did not consider that prom
ise binding. Mr.. Depew testified that
since 1889 he had been paid $4,000 an
nually by the Equitable for legal coun-
sci, and that for thirty years he had
received money from the Equitable ION
q sort of general retainer" Mr.. De-
pew said he lifted young Hyde's salary
to 100000 a year at Hyde's request
because of what his father did. He
raised Alexander's salary to make it
even with Hyde's.
James II. Hyde on his own tes-
timony, is shown to have been in eight
Syndicates which sold securities to the
Equitable His widely advertised res
ituti0n of SCI, 900 he confessed to be
merely formal, as the money has not
reached the treasury. He admitted
that the society paid for the Cambon
dinner and that it purchased for him
$4,000 private car When the CAPT
tai stock of the Equitable Trust Com
pany was increased he grabbed the
profit for himself Mr.. Hyde said that
1t was true that several persons car
ried on the payrolls of the Equitable
did most Of their work for him person
ally.
Former President Alexander testified
that he was in eight syndicates; had
offered to return the profits made in
two, but even this small share of his
loot had not reached the treasury. He
admitted the charge that host Of
members of his family were carried on
the payrolls at salaries ranging as high
$25, 900 annually He admitted sane
tioning the leases of Equitable prop
erty to Hydes safe deposit companies
at nominal rental at the expense OF
the society
Jacob IL. Schiff admitted that up to
the time OF the exposure be had been
neither policyholder nor stockhold-
er in the Equitable, though, as a direc-
tor. he threw great part of his invest
ment business to his firm of Kuhn,
Loeb & Co. He admitted selling bonds
to the Equitable which he thought I'M
tit Investments for life insurance socie-
ties; selling Japanese bonds to the So
eiety and buying them back at q lower
figure; selling Metropolitan Street
Railroad bonds on which the society
suffered a large loss. The sensational
part of the Schin testimony was his
impassioned charge that the records Of
the society had been falsified in so far
as they showed sales of Union Pacific
stock to the company by his firm. Yet
the books of the company show that
Sehiff voted TO approve these records,
and the officials of the company pro-
duced checks in payment for this stock
made out to his firm and Endorsed by it,
Valentine P. Snyder testified that in
operations conducted by him to effect
the merger of the Bank of Commerce
and the Western National Bank the
Equitable Society lost about 81, 200, 600
Evidence was presented showing the
purchase of Western bank stock by the
Equitable for 800 and Its sale for 150
More extraordinary yet. it bought
Equitable Trust Company stock for
about 1000 and sold 1t for half as much
TO George Gould and e. II. Hartman
on the same day.