New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-09-30


the F,ouitable under the old regime, the concen-
tration of power and the absolute ignorance of
all but few officials Of the real state OF afrairs
Jacob H. Schiff yesterday supplied the most
concise as we'll epigrammauc statement
when he leaned back in the witness chair after
a series of searching questions delivered by
Mr. Hughes. and said grinlly;
ut was all Hyde-all Hyde-and Alexander.
Not less significant was his, the first positive
statement of Equitable campaign contrlou-
tion apparently made in the name Of James
Hazen HYDE derived from some yellow dog
fund.
Mr. Schiff's testimony covered a variety Of
subjects 1t touched upon the celebrated Union
Pacific blind pool" syndicate, which Mr.. SchiH
defended, standing by his testimony before the
Superintendent of Insurance and attacking the
correctness of the minute in the companys
book regarding the transaction. and insisting
with almost plaintive sincerity that he knew
nothing of Mr.. Hyde's participation actually
being for the Equitable or that the Equitable
was paying the costs until Mr.. Hyde signed an
assignment in blank at the time Of the Ryan
purchase
In his references to Mr. Hyde Mr.. Schif was
particularly severe. He characterized the testi-
mony of the former, which was directly at Var1-
ance with his before Superintendent Hendricks
on the Union Pacific pool question, In the
severest manner, declaring that in his state
rnents Mr.. Hyde was merely attempting 10
shield" himself. In passing he directed sew
eral rather sarcastic references to the Super
intendent of Insurance, indicating that he re-
garded himself as badly treated
MR. scHIFF THE FIRST WITNESS.
On his examination by Mr.. Hughes, Mr.. schif.
who was the first witness called, testified that
he had been a director of the Equitable since
1898 and member of Kuhn. Loeb & CO. for
moro than a quarter of century, and that five
years ago he became member or the Equl-
tables finance committee. Mr.. Hughess ques-
lions and Mr.. Schiff's answers on this point fol-
low:
81 the finance e'- committee and while you were
simply director Of the society what dl9 you 40 as
diractor? Al directed as much as. under the pre-
vang usages in corporations was Permitted me 10
direct In other words went ege % ff listened to the
reports submitted by the executive oTcers aLo
as asked Of And if yen wii permit aabpos s
it will come up laterthat the system Of direS[0f
ship in great Corporations Of the city Of Ne
+ sven non nT in many Instances and may
in most instances, as negligible quantity by the
eSce When it SUITS the executive ocers and it,
under the prevailing system an execuIlVe GtIGer
from his directors to commit irregularities such
6e ge he can only act in an advisory capacity,
and he can only judge Of such things as are SUD-
oVof what use then. are directors, except to
comply with the formal provision Of the law? A he
lieve they of very little practical use
GAVE SOME UNAsKED ADVICE.
o-well. you found that to be the case In the
Equitable Life meetings were
four times a year-you attended those meetings and
would have no first hand information as to the
matter and then there would be speGa baa
was said, and if anybody wanted your advice you
He it, een%e you fn DON'T want to saI gave
you q general view-I don't want to say. howeVeT
that I didn't give advice unless 1t was wanted
Very frequently when things came up upon a whe of
asked, I took the liberty of giving said advice and
gave i, sometimes very forcibiy WOW. at+an.,or
where you thought your advice could be given!
o.1of Course the management of the affairs of
the society was in the hands of the executive OFF,
6sys sa he it IS Generally in Corporations? AThat
is correct-in corporations .
knowing what the executive officers b were e doing TN
less they saw Mt TO e 6cerg guppose
assisted in the transaction Of their duties by com
Equitable is concerned, the management OF the
society practically exclusively IN the hands OF
the executive officers and the executive committee!
AEYes,
Mr. schiff then testified that a place on the
executive committee had been offered him, but
that he had declined. believing that it was i'm
proper since his firm sold securities to the
Equitable. or if not improper not in accord
with his personal sentiments, to serve on a
committee which would decide about such pur-
chases He then testified that he had become
a director in the Equitable at the personal re-
quest of Henry B. Hyde. whose shares qualified
him He showed feeling when it was
suggested that Mr.. Hyde could have forced him
out at any. time. and suggested that he could
have gone into the mar Jet and purchased shares
himself.
Mr.. Hughes then showed that Mr. schiffs
position on the finance committee merely
Of a perfunctory character. 10 pass on things
already done Mr.. Hughes then read the by
laws OF the society. which seemed to indicate
that the committee had the right to pass on
purchases of securities, and the witness testified
that committee on accounts. consisting of
Messrs. Alexander. Jordan. Snyder. Mcintyre
and c. B. Alexander. really exercised this pre-
rogatiye
Mr.. Hughes down various committee ar
rangements. all showing the concentration OF