Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-09-29

THOUGHT RELATIONS PROPER
schiff, Of Kuhn, Loon & Company, In
His Testimony Today Before Inves-
tisation Committee, Said Ho Was
Advised That There Was Nothing to
Prevent Firm From Following Ae.
ton It Did.

New York. Sept. 29--uacob ii. SchlH,
head Of the banking firm Of Kuhn.
Loeb & Co, testified today before the
life insurance investigating COMMITTEES
that the minutes Of the meeting of the
finance committee of the Equitable
Life Assurance Society in February,
1909. were false In recording the pur-
chase OF $500 900 OF Union Pacific pre-
ferred stock for the holding account"
SchieM said he Was present at the
meeting aud no such transaction was
made. Schieff expressed the opinion
1t was wrong for James Hyde to par
ticipate personally In syndicate
transactions. He did not know, he
said. that Hyde had done so until these
disclosures THE Equitable" said
Schieff," was at the mercy of one man.
either Alexander or Hyde. 1t seems 10
me 1t was all Hyde. Everything was
Hyde At the close of the direct tes-
timony Schien asked and was given
permission to make statement. lie
defended himself from various attacks
his firm and himself by the state SUI
perintendent Of insurance and others"
New York, Sept. 29.--Jacob Schlff,
head Of the fir moi Kuhn, Loen & Co.
formerly a director Of the Equitable
Life Assurance Society, was the first
witness called before the legislative life
insurance investigation committee to-
day. Schiff said that he had become
a director of the Equitable In the lat
ter part of 1898. and that his firm had
had dealings with the society for
quarter Of a century prior to that time.
The question of the propriety of his
firm dealing with the Equitable oc-
Cured to him and he took counsel upon
the matter and was advised that there
was nothing to prevent the firm from
properly maintaining such relations
He was director Of the society four
or five years before he became MEM
Der of the finance committee He re-
fused election to the executive COM
mittee because of the relations of his
firm to the society. He thought 1t
would be improper for him as mem-
Der of the executive committee to pass
upon any dealings his firm might have
with the society.
Up to recent time Schiff was quail
flied as director by shares transferred
by Mr.. Hyde. Hyde drew dividends on
these shares. Schiff received no ben
eficial results from them. They were
retransferred to a trustee under the
Ryan purchase. SchiR said that prior
to last February he was not policy
holder in the Equitable, was not in any
different position from many other di-
rectors. and held his position at the
request Of Hyde. He was asked to
become a member of the finance COM
mittee, SO that he could give his judg
ment on the securities which the So
ciety purchased. The question of pro-
priety did not occur to him on this
point, because the finance committee
does not decide the actual purchase.
Schiff said there was practically no
place for the finance committee, as the
executive committee took the initia-
tive in all investments and there was
an auditing committee with powers
equalling those of the finance commit
tee. Hughes stated that he found that
w. III. Mcintyre and T. d. Jordan,
members of the finance committee, had
reported to that committee in 1904
they had examined the securities of
the company and found them correct.
Schiff, said they were appointed by
Hyde. Hughes said: Nov, in consid-
Grafton of the facts that have been de-
veloped at this inquiry that Equitable
accounts were kept in the names Of
parties to whom they did not belong
and that the funds of the society were
not entered upon it's books, l want to
find out what supervision was exer
cised. Now, l understand the execu-
tive officers had complete charge of
the society arfd that the finance COM
mittee dealt with investment and
sales of securities only after they had
been made and that with the important
power to examine accounts, the fin
ance committee did nothing but APP
point two executive officers to conduct
the examination for them. The chair
men of the committees appoints the
sub committees replied Schiff. In re-
ply to question as to whether he did
not think there ought to be more super
vision of insurance companies, Schiff
said: There is no doubt Of 1t, but no
law can secure it. Do you expect ev-
cry director TO have accountants at
his disposal to examine the accounts
of every bank, insurance or trust COM
pany?" He would like to see insur-
ance companies looked after as strict
,Iy as his own banking firm. and its
executive officers held to as strict ac-
countability as his own cashiers. Dur
ing his connection with society, Schiff
said he never heard anything OF nu-
merous trustee accounts. and it was