Evening star., 1905-09-27
PROBING FOR FACTS
Insurance Inquiry Resumed
Today.
SEVERAL TAKE STAND
WINTHROP OF THE EQUITABLE
QUIZZED.
SEVERAL TAKE STAND
Tells of the Bonds Of Reorganized
Union Pacific Railroad-Making
the Purchase.

IOuay morning session Oh the legislative
insurance investigation In New York devel-
oped great mass of technical testimony as
to the syndicate profits of the Equitable
Life Assurance Society. The witness who
was questioned on this subject was Henry
Rogers Winthrop. assistant secretary and
financial manager of the society. He told
of many participations of the Equitable In
syndicate transactions and detailed the
progress of its accruing to the society there
from, but he was unable to tell to what ac-
count on the society's books these profits
were credited. Expert accountants are now
at work on the Equitable's books to discover
whether these profits actually went into the
society's treasury.
Mr.. Winthrop testified that in one of the
Equitable syndicate operations Senator De-
pew was participant to the amount Of
100000. Senator Depew and Senator Dry
den of New Jersey have been requested to
appear before the committee. Senator Dry
den. who is president Of the Prudential In
suranee Company of America, Is not a resi-
dent OF New York. and therefore not subject
to subpoena by the legislative committee,
but he has expressed willingness to testify.
NEW YORK. September 27-Upon the
convening today Of the special legislative
committee investigating the life insurance
companies Chairman Armstrong announced
that owing to the serious illness of s. Fred
Nixon, speaker of the assembly, the COM
mlttee met under distressing circumstances
From information at hand, Senator Arm
strong said. 'it Is feared he cannot recover,
and in the event of his death the committee
will instantly adjourn
1t was announced prior to the opening of
he inv tfeyot tfa,,
of the firm of Kuhn, Loeb & Co., bankers.
has been subpoenaed and will take the stand
for examination either today or tomorrow.
The first witness today was George G. Van
Tuyl, jr., secretary and treasurer of the AL
bany Trust Company, who produced a tram
script of the account of Andrew Hamilton
opened February p, 1905.
He stated that neither the bank nor he
had knowledge of the purpose for which
checks were paid in or out on that account
Mr. Van Tuyl was excused and Henry
Rogers Winthrop, assistant secretary of the
Equitable Life Assurance Society. who was
on the stand last Friday when the commit
tee adjourned, resumed his testimony as to
the syndicate transactions of his company
Mr.. winthrop said that in the syndicate or
ganized to take the bonds issued upon the
reorganization of the Union Pacific Rail-
road Company the Equitable Society was
allotted s750,0O0 of the bonds, and the
profits the society received from this trans
acton were $3.50 shares of Union Pacific
preferred stock
The Equitable Society Mr. Winthrop said
paid only for the amount for which It SUBJ
Scribed.
Paid for Subscription.
Mr. Hughes. counsel for the committee,
asked why 1t was that the Equitable So
ciety had paid $3.50, 900 to the Mercantile
Trust Company. Mr.. Winthrop said 1t was
because the checks were paid that way.
Several vouchers signed by George H.
Squires. as secretary Of a finance commit
tee OF the Equitable Society, were shown
IN evidence, as also was a letter from
George III. Squires, for the Mercantile
trust Company, to Gen. Fitzgerald of the
tiiance ea committee OF the Equitable. asking
Ior payment of S600.0O0 or so per cent of
the Equitable's participat ton in the Union
Facihc syndicate in consequence of a call
by Kuhn. Loeb &c Co.
Then" said Mr.. Hughes, George H
Squ1res, first. as an officer of the Mercan-
tile Trust Company, writes to the Eouita BILE
and asks for 100000, and then as an Off
Ger Ger of the Equitable signs checks paying
lne money 10 the Mercantile Trust Com
pany?" asked Mr.. Hughes
Yes replied Mr.. Winthrop
Mr.; winthrop said that Gen. Louis Fitz-
gerald, chairman of the finance committee
VI the Society, subscribed for
81, 100000 of the Union Pacific bonds and
whoever held the bonds over the allotment
or the S7o0,0O0 to the Equitable also re-
eeived Tor profits $3.50 shares of Union
Pacific preferred stock
Northern Pacific Syndicate.
In a Northern Pacific syndicate the
Equitable participated to the extent Of
100000. and the profits ultimately amount
ed to $41 1862. This was not paid In cash.
but In Northern Pacific shares, which ap-
peared on the societys books.
In the Central Pacific refunding syndicate
the society's participation was s25O,oOO.
Speyer &c Co., the syndicate managers. sent
check for s14,074 on December Is. 1899,
representing the profits. Mr. Winthrop
said he was unable to find in what account
this was entered on the society's books, but
the search was still being made.
A syndicate to handle Southern Pacific
gold bonds was formed, and November 16
Speyer & Co. allotted the Equitable $3.50 COO
of these bonds. In this syndicate also was
the Western National Bank, ]. w. Alexan-
der and George II. Squires, the latter three
each receiving $50, 900 of the bonds. In 1901
the society received a check for $11 031 as
its share of the profits.
The next syndicate taken up was the ST.
Louis and San Francisco Railroad Company
underwriting, in which the Equitable par
ticipated to the extent of 100000 and paid
out on its account April 30. 1896. $4,000
to the Mercantile Trust Company.
''Were there any profts?" asked Mr..
Hughes.
"A check was drawn to the order of the
society August %, 1895, for 500, ,919. I am
now trying to find that" said Mr. Winthrop.
Looking for Record.
Have you any record OF its payment to
the society?"
THE expert accountants now at work on
the books of the Equitable are looking for
some entry of it. 1t was a check OF the
Mercantile Trust Company
Have you inquired of the syndicate man
ayers with regard to the profits of the syn
dicate?"
"Yes. but L have had no definite reply"
The vouchers and other documents were
then put in as evidence and II appeared that
the letter asking the Equitable for payment
of $4,000 was addressed to Gen. Fitzgerald
chairman of the finance committee OF the
Equitable. by @. FL. Squire, as treasurer of
the Mercantile Trust Company and the
check OF the Equitable to the Mercantile
Trust Company was signed by G. H. Squire
as secretary of the subcommittee of the
finance committee OF the Equitable, and T.
ID. Jordan, controller of the society.
In Chicago Burlington and Quincy mr.