New-York tribune., 1905-11-17
MORE "DUMMY" LOANS.
Clerks Names Used In Transactions
InuoIuing $50, 900 900.

The disclosures regarding the year end
dummy loans" supplied the main interest to
the late afternoon session and one of the
most intricate of the methods of Juggling" that
existed in the former Equitable regime. The
apparent purpose of the $200O000O in such
: dummy" loans. shown to have been made in
the years 1903 and 1904, was to reduce the ap-
parent cash balances of the Equitable. The
theory about this seemed to be that this money
was kept for speculative purposes by the officers
of the Equitable, but that in the annual report
1t seemed to them advisable to show this amount
was invested in collateral loans rather than
carried as free cash. and that to this end the
loans to clerks in the firm of Kuhn, Loeb &
Co. We're employed. John Gilchrist, of the se-
curities department, and Henry Rogers Win
throp. financial manager of the Equitable, testi-
fed to this detail
In 1908 these loans amounted to 50 900 600 in
1904 to S1O,250,OO0. The clerks mentioned In
the loans were Jerome j. Hanauer Simon Sieg-
man. e. F. steiman, Herman Woog and T n.
Paul Explaining the method of these loans Mr.
Gilchrist said:
All All CHECKS & G Were drawn to the order OF Kuhn
society holding the same 1t was understood that
no interest should be allowed the certificates of
societys deposit account The certificates Of de-
Collateral on Which the loans " were ee ade 5ae
with Kuhn. Loeb & Co., but envelopes containing
sent Sc tt to the Equitable This happened at the end
Teope was returned the whole maebnerx gSr sne aS e
run backward, and then the Equitable had its
and the interest ensS eonad eff ali
from the SAFE ssIged Tss that Of Of
the report to him they appeared bona fde col
The interest of the Equitable in the Cafe
Savarin shown by Daniel NJ junk, its
mnaager. Mr.. Junk testified that the Equitable
paid all the salaries of the Savarin managers
The Equitable held 495 shares of stock I'm the
savarn and the company rented it's Offices
from the Equitable. Mr.. Junk testified that
Equitable officers got no free luncheons and in
dicated material increase in the Savarin's
earnings in the few months since the Equitable
shake up"
The last witness Louis NJ. Bailey, whose
name was attached to one of the yellow dog"
accounts. Mr.. Bailey declared he never had
any drafts on this account, but made one de-
posit Of a check received from W. H Nc
intyre- George H. Squire, whose name was
attached to another yellow dog" fund.- was the
person who asked for the use of his name in
this connection Mr.. Bailey testified. He did
not know whether he had right to draw on
this account but he was positive he never
had.
Ihe most interesting point In Mr.. Bailey's |
testimony related TO some remarkable real |
estate transactions that seemed to be clear |
cases OF evasion of the law. These We're in |
many cases carried IN his name. to insure !
,heapness
Mr.. Bailey added that the names of Mr.. Todd |
md MIR. Taylor. clerks OF the Equitable. were /
lso used in real estate transactions. Many OF |
he transfers seemed to be plain evasions of the
provisions of law which prohibits the insurance /
company from holding real estate longer than
i've years, Property taken in his name he ex-
'ained, would be mortgaged back to the So
iety, and he would also execute deed for it,
was the custom of the society TO record the
mortgage, but the deed would not be recorded.
Srticularly when building operations were 60
ng on.
Bailey said he did what the company in
tructed him to do He said that when the COM