The Montgomery advertiser., 1905-11-15
Startling Testimony Be-
 fore Comm. .ttee.
EQUITABLE OWNER BITTER
Says Associates Schemed to
 Send Him Abroad.
wanted Him Ambassador to France In order That They Might Profit by Handling Insurance
 Money.

New York. Nov. 14.-James Hazen Hyde. former vice-president of the EauItable Life Assurance Society, whose resignation followed the sensa- tional disclosures in that company last spring which led to the investigation of insurance company methods by the Armstrong committee--the man whose presence as witness before this com- rnittee has been looked forward to in the expectation that 1t would produce the greatest sensations of the investi- gation, appeared before the committee today
 MT. Hyde's manner on the stand was one of composure and deliberation, ana his replies to questions from counsel were calm and deliberate and oftttmes studied. He was fortified with state rnents and data and was very frank in his explanations. Frequently he would become bitter in reference to some or his associates. and while his entire testimony was of deep interest and cleared up many points that have here tofore remained in the dark. it was not until late in the day that the sensa- tionai feature of his testimony was de- veloped.
 MT. Hyde was called to the stand shortly after the session opened this morning and he was under examina- 
 adjournment was taken. In anticipa- ton of his presence as a witness. there was greater crowd than has attended the sessions of the committee here tofore. -f
 Hyde Tells of ~No. g..
 Mir, Hyde cleared up the matter of the sss5.0oo loan of the Mercantile Trust Company. which appeared on the books of the Equitable Life under the caption of the "J. ". Alexander No. 3 Accounts" The account has been un- der investigation on several different occasions. but none of the witnesses heretofore examined has been able to explain 1t.
 Mir Hyde first heard of this account In the fall of 1902. when 1t was called to his attention by President Alexander. who said that he and MT. Jordan had incurred the loan to take up stock that was heins bid up to fictitious values to ths detrir'ent of the company. to sets tie suits that were hampering the business of the society. and for cam pafgn contributions This contribution was the one to the last campaign and was asked for by Mir. Prick. who sug- gested 1t for the benefit Of the society.
 To procure this money. Mir, Alexander had MT. Hyde write a letter to the president of the Mercantile Trust Com panv and this letter nract'ca1lv uIaced him in the position of a guarantor.
 
 was forced MT. Alexander and MT. Jordan raised all they could toward 1t The stock purchased with nart of the loan was sold to Thomas F Ryan for S212.000. and the balance S"1e 5on Mr. Hyde paid personally. He did this be- cause he understood that Mir. Alexander was financially embarrassed and in a bitter tone said:
 Bitter Toward AIe~snaer.
 ss&Otwit stnndinU 10 sfrafund pAla- tions with those two gentlemen (Alex- ander and Jordan), felt bound to see that the debt was iiauidated by reason of the letter MT. Alexander extracted from me-"
 Mfr. Hyde presented a statement showing that in the seven years of his connection with the Equitable and the allied corporations. his average income had been only a little more than $3S.0O a year. This was figured as seven years salary from the Equitable amounting to $435, 900, from which he deducted his losses in syndicate trans actions amounting to $2S.646, and the $212 500 paid on the $6S5, 900 loan, which left balance of $193,SS4. or an average annual income of $27,6S0, to which was added the average income from his offices in the trust companies of sio.500.
 Witness said he presented this state ment to show that he had been misrep- resented.
 The instructions of MT. Jordan to A. c. Fields, the Legislative generalis. sirno," as Mr. Hughes referred to him today, MT. Hyde knew nothing about He said he never consulted with MT. Jordan about legislative matters and that none of the legislative measures affected him or his interests in any way.
 S5O,0O0,OOO Union Pacific Pool.
 Of the S5O,O00, 900 Union Pacific pool, MT. Hyde said MT. Hartman instigatei it and explained 1t was to be a holding syndicate for five years. It was under stood that 1t was for the purpose of controlling the Union Pacific. MT. Hyde signed the syndicate agreement at MT. Harriman's suggestion and talked only with MT. Hartman on the subject. The Executive Committee was not in- formed of his operation. as Mir. Hyde said that MT. Alexander did not think 1t necessary. and that MT. Hartman requested that the committee be not informed of it.
 EcIipsing all this sensational testi- mony however. were the statements ernor odell and MT. Hartman rela- tive to the settlement of the Ship building Company suit against the Mercantile Trust Company.
 Mir. Hyde said that MT. Hartman came to him and advised the settlement of Odells suit as he feared that power full influence at Albany would be in- voked in retaliatory measures. Mir. Hartman suggested as one of these measures the revocation of the charter of the Mercantile Trust Company.
 Mir. Hyde knew of no actual steps that were taken, nor of any bill that was introduced. but he was beset with rumors that such steps were about to be taken by legislation. The Equita- ble Life, he said. was not interested beyond the connection 1t had with the Mercantile Trust Company.
 MT. Hyde was under the impression that the Mercantile in settlement re- tained the bonds and paid Mir Odell about $75,00o.
 with 50 Cents on Dollar.
 The claim of odell was about $780, 900. The bonds subsequently, netted about 50 cents on the dollar.
 Mir. Hyde said Mfr. Hartman sug Rested the settlement of the suit and that the counsel and members of the eraeutfye committee of the Mercantile