The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-11-15
SENSATIONAL EVIDENCE
IN INSURANCE INQUIRY
James Hazen Hyde Clears Up Many Obscure
Transactions.
Ex-Governor 0deI of New York. H. c. FrCk and E. H..
Hartman Implicated BY the Former Vice
President of the Equitable.

n EW YORK. Nov. Thames Hazen
Hyde, former vice president of the
Equitable 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 of the legisla-
ture; the man whose presence as a
witness before this committee has been
looked forward To i'm the expectation
That IL would produce the greatest SEN
Stations of the investigation, appeared
before the committee today.
Mr.. Hyde's manner on the stand was
one of COmpOSuTe and dclibeTatiOn, and
his replies 10 questions from counsel
We're calm and deliberate and Oft
times studied. He was fortified with
statements aud data. and was very
frank in his explanations. Frequently
ne would become bitter iu his reference
10 himself and his associates. while his
\ entire testimony WAS of deep interest
%nd cleared up many points that have
heretofore remained in the dark.
Great Crowd Present.
1t was not until late in the day that
tAV oGil0dtlbiidl FEATURES OF MS LeSll-
mony We're developed, Mr. Hyde was
called to the stand shortly after the
session opened this morning and he was
under examination all day until few
minutes before adjournment was taken,
In anticipation in his presence as a
witness there was a greater crowd
than has attended the sessions of the
committee heretofore and extra police
were stationed i'm the corridor without
The comm room a kaaU order
Mr. Hyde cleared up the matter Of
the S6Ad,OU0 loan of the Mercantile
Trust company. which appeared on the
books Of the Equitable Life under the
caption Of the j. W. Alexander No 8
account This account has been under
investigation on several previous occa-
sions but none of the witnesses here
tofore examined had been able TO ex-
plain it.
Campaign Contribution.
MIR. Hyde first heard of this account
IN the fan Of 1902, when il was called
10 his attention by President AIexan-
der, who said that he and Mr.. Jordan
had incurred the loan TO take up stock
that was being bid up 20 fictitious
values 60 the detrimeut Of the COM
pany, 10 settle suits that were ham
pering the business of the society. and
Tor campaign contributions. This con-
uibuu0n was the one 10 the last cam
pdign, and VAS asked by Mr.. Frick
who suggested il Tor the benefit of the
society. To procure this money MIR.
Alexander had Mr. Hyde write a let
ter 10 the president OF the Mercantile
Trust company, and this letter practi-
cally placed him in the position of a
guarantor.
Later. when the settlement of the
loan was forced. AlT Alexander and
Mr.. Jordan raised all they could toward
IT, The stock purchased with part of
The loan was sold 10 them by Thomas
F. Ryan for SIP zoe, and the balance,
S2l25O0, Mr. Hyde paid personally.
Hyde Was Feeced.
He did this because he understood
iAlr Alexander was financially embar-
irassed. In a bitter tone he said. Not
lWiJhstanding the strained relations
with these TWO gentlemen alexander
aud Jordan), l felt bound 10 see that
the debt was hquidated, by reason of
the letter Mr.. Alexander extracted
from me-"
Mr.. Hyde said that he first received
a salary. of $4,000 seven years ago. In
1902, when he became chairman of the
finance committee, this was advanced
TO $4,000 and i'm 1908 il was advanced
TO 100000, at which il remained until
he resigned as vice president of the So
ciety.
Mr.. Hyde presented statement
showing that in the seven years of his
connection with the Equitable Life and
the allied corporations his average in
come had been only a little more than
S3S,000 a year. This was figured as
seven years salary from the Equitable.
amounting to S435, 900. from which he
deducted his losses i'm syndicate trans
actions, amounting 20 S2S6l5. and the
S212,50O paid on the $685.. 900 loan. which
left balance OF $193.SS4. or an average
annual income of S27.691 90 which was
added the average income from his of
fees IN the trust companies of $40 500
Witness said he presented this state
ment TO show that he had been mis-
represented.
instructions to Fields.
The instructions TO Mr.. Jordan by A.
z. Fields. the Legislative generalissi-
mo" as Mr.. Hughes referred To him
today, Mr.. Hyde knew nothing about
he said he never consulted with Mr.
Jordan about legislative matters and
that none Of the legislative measures
affected him or his interests i'm any
way.
The syndicate operations of ]. H.
Hyde and associates were gone into
very thoroughly, and il was shown
that in tWenty-three syndicates Mr.
Hyde sustained personal losses Of S2S.-
clio. Mr.. Hyde ascribed his apportion-
ment Of the Equitablc's allotment of
bonds i'm syndicates TO officers Of the
Equitable Life To the customs and
usages of Wall street.
OF the formation of the J. II. HYDE
and associates syndicate, Mr. Hyde
said Mr. Alexander suggested it for
the convenience OF bankers.
Union Pacific Pool
y OF the $4,000 600 Union Pacific pool
Mr. Hyde said Mr.. Hartman instigated
it, and explained il was 20 be "a holding
syndicate for five years IL was I'M
derstood this was for the purpose Of
controlling the Union Pacific. Mr.
Hyde signed the syndicate agreement
at Mr.. H3rriman's suggestion and
talked only with Mr.. Hartman on the
subject. The executive committee was
not Informed of this operation, as Mr.
Hyde said that Mr.. Alexander did not
think IL necessary, and that Mr.. Har-
riman requested that the committee be
not informed of H. He said that Mr.
Hartman even refused 10 give a state
ment of the purposes of the pool 10 the
superintendent of insurance when he
was "clamOring for it," last spring.
odell and Hartman.
Eclipsrg all this sensational testi-
mony, however, We're the statemnts
OF Mr.. Hyde concerning former Gov
ernOr Odell and Mr.. Hartman relative
TO the settlement of the Shipbuilding
company suit by the Mercantile