New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-09-23

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total taken. aggregating $462, 800 Mr.. Hughes
inquired with an earnestness not appreciated by
| the witness:
Al suppose so.
Q-The syndicate reads. James H. Hyde and
zassoSiates. Do you know who the associates
Q...--Nor how much Mr. Hyde took persona lily?
On your report to the State Superintendent of
Ss ZSo and market value of 1893 9o0 how did you
uC ~ 7 ahccoTdlng to the present market figure.
,S9-Ihat is market value Of about So? A.-Yes
THE UNION PACIFIC DEAL
The Union Pacific deal dwet upon at con-
siderable length. The testimony showed that 27OO
shares Of Union Pacific had come to the Equitable
from Harriman-Schf- stIllman syndicate and
that they were marked, mot to be transferred"
Mr.. Hughes asked:
Glow long were you to hold them? Al don't
oo 9mWas there no minute this point in the
h0 81 T Wen Al don't know,
know 7--'- eS were TO De helo? Al doh
Mr. Hughes then went into the whole question
OF the Union Pacific preferred syndicate partici-
patton as indicative of the loose control over in
vestments exercised by the finance committee.
1t seems that the Equitable's participation was
originally taken by James H. Hyde and asso-
GATES" Mr.. Hughes called for record of the
meetings OF the finance committee to show the
control When it was produced it was seen to
be the proceedings Of the finance committee IN
july 1910. at which the chairman reported that
he had received a written assignment Of ]. H.
Hyde's interest in that syndicate. He asked:
g QL DO understand that until July 1906 theirs
mad peen no written assignment OF these interests?
A-There had never been
end there had been payment of s.s7ooOO by
Q.-Before what committee was there any record
Of this transaction? A.-There was None.
Q.-Now, the details of the payment
recorded in the finance committees minutes? A
Q.The practice was to read from the securities
register and then refer TO that investment? A.
Yes, sir
At meeting of the finance committee on Au-
gust l, 1904 when SOL. $50 worth of securities
was purchased, the record showed that there
were only two members present. Mr. Hughes
asked:
Q-How long are the meetings of the finance
committee? Am hour three-quarters Of an
Q,-The minutes of the executive committee with
regard TO the finance committee entirely stereo-
typed? A-Up TO quite recently
MERELY APPROVED MINUTES.
Minutes Of the executive committee wers then
read. They merely indicated that the proceed
lngs of the finance committee since the last inset
ing are reported and confirmed" The examina-
ton was resumed
O-There is then no specific mention of the Union
Pacific syndicate in the executive committees
go that you find only statement that money
Q.-The syndicate has not been closed yet? A
Q.-There have been no communications about the
matter between Kuhn. Loeb & Co and the society?
Q-Have there been any further payments? A.
Two hundred Ia and fifty thousand dollars on July
Q.-Was it authorized? A.-Yes; at the finance
Q.-Why did the committee take the stock? A
I don't know
In the case of the Union Pacific transaction,
Mr. Winthrop further testified that Kuhn. Loeb
& Co. had declined to recognize the assignment
made by James H Hyde to the Equitable Of
81 $4,000 of the preferred stock. The allotment
had been to Mr.. Hyde and he had turned over
the certificate Endorsed in blank.
I'VE informed Kuhn, Loeb & Co., who repre-
sented the syndicate, Of the assignment" said
Mr. Winthrop, but they told US they had never
recognized the society as a member Of the syndi-
cate and that they could not recognize the
assignment They said the matter would be
taken up at the next meeting of the syndicate
managers"
A good sample Of the Associates syndicate,
not mentioned in the Frick report. furnished
by that Of the Atlantic Coast Line, in which the
EQUITABLE was 'Iet In through James H. Hyde.
i
record of the syndicate managers had been kept
and when there was any call for money 1t
seemed to have been turned over to Mr. Hyde
and paid by him to the syndicate managers.
The testimony on this point follows
o-Now. on December Is, 1904, the society re-
ceived its money back and profit or $14,5O0 A
e. q Iil rot that from Mr. Hyde? Ayes, sir.
6-Who were Mr.. Hyde's associates! Al don't
a. u VS. there any record? A-No, sir.
6-What were Mr.. Hyde's proftsR Al don't
know - 49, ,z,,... ,
gers we're Didn't you know who they were? A.
No O. sTi the Frick committee know OF this
Al don't Know 'hey ASo access 20 |
"a rnt no reference to this syndicate appears in
the Frick report! A-No' SIT.
7-barA we're q number Of other syndicate opera |
lions into which NJ Hughes went in great de- |
-ou 7,bara were several 'associates' syndicatss
N which General Louis Fitzgerald. who was |
y,oa-nrastdent of the Equitable, held the title
ole a,7 others in which G. H. SQuires. Mr.. Win
.tor,,e rradacessor figured. In nearly every |
.esa the data supplied were insufficient, and Mr.. |
-. ,ors+antIv requested the witness to
suT6isb additional details. AGAIN ana again IN
,nnnr+art matters items Of pronf or OF payment
- nar+ies interested were missing, ana tnere
10 ob,,iousIv the greatest CONFUSION ID lnese
,cno,pte Mr Hughes did not compete the ex-
,n7fnation and it Will De contIttu ' tI
" "a e s+ IN this date was taken to enable
a dJouIilIile i 20 examine the testimony already
aiken.
uR CLEVELAND'S LETTER.