Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-11-24
INSURANCE INQUIRY
More Developments Of Inside
Methods Of Equitable.
RENTALS EARNED OUT
INTERESTING TESTIMONY OF
GERALD r. BROWN TODAY.
Further Revelations In Syndicate Par
ticipAtions By the New York Life
Company-Dig Profits.
RENTALS EARNED OUT

NEW YORK. November 24.-Gerald n.
Brown of the Equitable Life Assurance 3d.
ciety, was the first witness called by the
Insurance investigating committee today.
Mr.. Brown produced list OF the ten
ants Of the Equitable building at 10 Broad
way. Mr.. Hughes looked the list over and
asked the Witness II he thought the rem
tails were adequate. Mr.. Brown said he
considered the rental Of the Mercantile safe
Deposit Company was Inadequate. He also
thought the Equitable Trust Company
rental Of $4,000 year was inadequate. He
thought that about $4,000 year would be
a proper rental for the trust company.
Mr. Brown said the matter OF increasing
the rent OF the Mercantile Safe Deposit
Company and Of the Equitable Trust Com
pany had been considered by the executive
committee and that after the work Of this
Investigation is finished those rentals will
be raised.
Mr.. Brown said, in deply to questions,
that the King Model Houses I'm 13Sth street,
New York. were taken by the Equitable So
ciety under foreclosure. sold to d. H.
King. IT.. and that the Equitable Society
supplied %. 100000 for construction and i'm
provements.
Meantime the society held mortgage on
the houses, and when completed Mr.. King
decided them back to the society. Mr..
Brown said he supposed King was there
to make a profit I'm subietting the con-
tracts.
Put Up Money for Kings Profit.
1.-The Equitable put up all the money and
King took all the profit?" asked Mr..
Hughes.
yes, If you want to put it in that way"
said Mr.. Brown
What officers were responsible for this
transaction?"
THE executive committee said Mr..
Brown, who added that Henry b. Hyde
had the matter in charge.
Mr.. Hughes asked the witness about
placing the fire insurance of mortgaged
property in the hands of Frank B. Jordan,
son Of the controller of the Equitable So
ciety. Mr.. Brown said the arrangement
was one of convenience and safety and
that Mr. Jordan had been appointed at the
recommendation Of former President Hen
ry B. Hyde and not by his father, the
former controller. He said that 1t was not
just in this instance to consider the indi-
which was a good one. The fire insurance
companies paid the commission to the
broker
The Syndicate Dealing.
Milton NJ. Madison, bookeeper in the
Office of the New York Life Insurance Com
pany was a witness today. He said that
the list Of syndicate participation Of that
company furnished to the investigating
committee was prepared by Mr.. shipman,
the assistant treasurer. and that he be-
lieves 1t is g. compete list of the direct syn
dictate participations of the New York Life
In response to questions by Mr., Hughes,
however. he said that the New York Se-
,curity and Trust Company participated In
the United States Steel Corporation synd!-
cate to the extent of s2,325.0O0. and Mr..
Hughes produced a blotter showing that
the New York Life Insurance Company
received from the Security and Trust Com
pany So All as one-Quarter profit OF the
account
What Webb Wrote.
Alexander s. Webb, secretary of the Sc
curity and Trust Company. in forwarding
the check, wrote Of the account as being
carried for the New York Life Insurance
Company Mr. Madison said the New York
Life Insurance Company did not pay any
money on that account. but had deposited
50 325 900 with the Security and Trust Com
pany George Perkins, vice president OF
the New York Life Insurance Company
he said had charge of the transactions
and J. p Morgan & Co. were the syndicate
managers.
Profit on One Big Loan.
Mr. Madison said that in 1904 he received
a check for $4,000 as the profit on a loan
of 1920, 600 to the firm of Kidder, Peabody
& Co. of Boston, he got the check cashed
at the First National Bank and gave the
money to George w. Perkins vice president
of the New York Life and member OF
the firm of j. p. Morgan & Co. He did not
know what Mr.. Perkins did with the
money, because no account of the trans
action appeared on the books Of the COM
pany.