The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-07-25
JEROME LOOKS into U.P. POOL
BUT HE DOESN'T SEE HIS WAY
TO START PROSECUTIONS. =
District Attorney Calls on Hartman and
schin-Hyde. According to the Records
Was the Only Ono TO Blame--Banker
Isn't Yet Ready to Give Up the stock.

Isn't Yet Ready to Give Up the Stock.
ward H. Hartman and Jacob H. Schi6
yesterday for the purpose Of learning some
thing about that blind pool In Union Padtfao
preferred stock. This is the pool in which
James Hazen Hyde, according to his testi-
mony before the State Superintendent OF
Insurance was interested on behalf Of the
Equitable society to the extent Of t,670,0O0.
Jacob H. SohiT declared b,fore Supt.
Hendricks that Kuhn, Loeb d Co., which
organized the syndicate, had never sold
Union Pacific preferred to the Equitable
society and that the firm knew only Mr..
Hyde Ia the transactions.
Mr.. Jeromes visit to Mr. Hartman was
prompted by the report that Mr.. Hartman
was to leave to-day for six months trip
to Japan. Mr.. jerome examined the syn
dictate agreement and other papers, and,
1t is understood found nothing that will
warrant criminal proceedings against any
members of the syndicate. Mr.. Hartman
will leave. if not to-day. some time this
week
After returning to his Office Mr.. Jerome
issued q formal statement Here 1t u.s.
II went to the Equitable Building to
| lliCOt uli' lldii uiLdit 40 uAANoAoSSS~ SAs~>e
he was going away tomorrow and de-
sired to see the much talked Of Union
Pacific preferred syndicate agreement.
made careful examination Of the terms
OF this agreement. Mr.. Hartman also
stated that his books and papers were in
! the custody Of his counsel, Judge Lovatt.
who was instructed to waive any question
OF personal privilege and to produce at
| ~ thnv,, TINT 7 MIGHT dA4m
Of importance in the conduct Of any investi-
cation of matters within my jurisdiction.
The syndicate agreement was one the
terms OF which would have at any time
been produced for the inspection Of the
Superintendent Of Insurance had he re-
quested it. The Equitable Life Assurance
Society was not a party to the said agree
ment and had not been at any time.
Il then went to Kuhn, Loeb Co. 3 build
ing and had an interview with Jacob
H. schifr who gave me full info rmation in
regard to the details of syndicate opera
tions referred to in the Frick and Hem
bricks reports, producing papers showing
the exact character Of these syndicate
operations and volunteering to give me
any further information or to produce any
other documents which / might at any
time desire"
Mr.. Jerome refused to give out any in
formation concerning his investigation OF
the blind poor other than that contained
in his statement. From another source.
however, it was learned that the syndicate
agreement, of which there are five or six
copies in existence, ia one Of the regular
pooling agreements with which Wall Street
deals almost daily, providing for the hold
| A. IL. 10 do fNro
term OF Ave years unless otherwise de-
termined by the parties to the agreement.
In the testimony taken before the State
SUPERINTENDENT it WAS stated that James
Stillman, Kuhn, Loeb Il Co. and Edward
Fl. Hartman, besides James H. Hyde.
we're parties to this agreement. It was
said Yesterday that there are seven or
eight others.
1t Is evident from the District Attorneys
statement that the syndicate records In
no way evidence any blame on the part
Of the syndicators for the use Of the policy
holders money in controlling the Union
Pacific road, for that, it has been asserted,
was the purpose of the syndicate agree
ment.
The blame for the Equitable's part in the
transactions should fall, said one Of those
|
Hyde's shoulders, unless the syndicate.
having a private understanding with him,
used him for a tool. and in that event 1t was
about time Mr.. Hyde was heard from.
Mr.. Hyde, at the Hendricks inquiry said
that Mr.. Hartman asked him to go into
the syndicate on behalf of the Equitable.
and that he told him he couldn't without
hrst consulting President James w. Alex
ander. Hartman and Hyde consulted
Mr.. Alexander, and Mr.. Alexander, accord
ing to the Hyde testimony, approved. Mr..
HYDE said that he advised Mr.. Alexander
that it was a good stock and was going to
be better, and that the investment was q
good one.
.Mr. Hartman he testified. Thought
he was doing me favor in letting me in on
behalf OF the Equitable, l myself have
never had any personal interest in the
matter and have never made any money
out OF It,
Mr.. SchiiY testified. on the other hand,
that his firm never knew the Equitabl q
society in the sale of any of the Union Pacific
preferred stock and that all OF the securities
went to Mr.. Hyde personally-this in spite
OF the fact that Equitable checks were
used in paying for the stock and that Mr.
|
proved some Of the allotments as a member
OF the Equitable's finance COMMITTEES. The
records, Schifr says, must be false
Mr.. Schiff it is understood. told Mr.
Jerome practically what he told the State
Superintendent of Insurance-that he waa
entirely ignorant of the Eauitable's con.
nection with the syndicate; that the Equi-
table checks in payment never came to his
notice, and that the stock must have been
transferred by Mr. Hyde to the society
when his underwriting fell due withou,
the knowledge of the syndicate members
Mr.. SchifY, 1t Is understood. ako defendet
the sale of bonds by his society to the Equi
table, asserting that he had been advised
by eminent counsel that these transactioni
we're perfectly proper and legitimate. Thu
!, only point in which the District Attorne,
was Interested. however, was the Uniot
Pacific pool, and it Is said that his hunt II
Mr.. Schiffs offices was as futile as 1t wa
in Mr.. Harriman's.
Not the least interesting announcement
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