The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-09-30
WESTERN LEGISLATURES
ARE ALSO LOOKED AT TER


ought TO be more supervision of insur-
ance companies Mr.. Sehif said:
There is no doubt of il, but no Law
can secure il. DO you expect every di-
rector to have accountants at his dis
possl TO examine the accounts of every
bank, insurance or trust company ?"
Mr.. Schiff said he understood that the
Equitable society WAS audited only by
two of it's executive offlcers-Mr. Nc
Intyre and Mr.. Jordan-aEd that Mr..
Hyde appointed them. Said Mr.. Schlff;
81 think he made mistake because he
actually kept q board of directors aD-
solutely at the mercy of one man.
Mr.. Schiff said he would like to sec
an insurance company looked after as
strictly as his own banking firm, and
its executive officers held to strict
accountability as his own cashiers.
During his connection with the socle-
ty. Mr.. Schiff said he never heard any
thing of the numerous trustee ae-
! counts. and it was never brought to his
| attention that moneys of the society
We're carried under an account III
| which they did not belong.
Hyde Contributed.
Mr.. Hughes asked him about cam
! paign contributions by the Equitable
I society Mr. Schiff said in reply that
1 49,
Mr. HYDE had contributed to the last
| campaign. but he did not know whether
| il was the society's money. Witness
| knew absolutely nothing as to how the
money of the society was used by the
executive officers until they chose to in
form the finance committee.
sir Schiff said ii had been suggested
that the society accounts be audited by
! outside accountants, but IL was opposed
/
| Newcastle to have "mere pigmies' OF
! accountants, as outsiders were looked
| upon. audit the accounts kept by sueh
| experts as the Equitable employed.
Kuhn, Loeb & Co. Transactions.
Taking up the transactions of Kuhn.
| Loeb & Co. with the Equitable, witness
| testified that the name of the hrms
from who contemplated purchases were
under advisement were never men,
| toned in the committee room. When
| Kuhn. Loeb e. Co. had any proposition
| to make TO the Equitable Mr.. scnin
usually presented it to George n
Squire, who in turn presented II 10 the
| executive committee, and then II was
passed upon by General Louis Fitzger-
aid. Witness said it was sometimes
three weeks before he could obtain q
reply. These transactions continued
then George II. Squire passed upon th'
offers of bonds.
| OF the transactions of the Equitable
syndicate of which Kuhn, Loeb q co
were the managers, witness SAID INT
! arrangements were made in writing
| the terms and amount and conditions
being fully described Mr.. Hughes Wen
into a line of questioning that brough
| from the witness a description or how
the syndicates are formed, managed
and closed.
Syndicates a Good Thing.
you don't have to beg life Insurance.
companies 10 go into these syndicates
do you?" asked Mr.. Hughes.
mo, indeed" witness replied.
It's a pretty good thing to be let in
isn't it?"
Witness smiled and nodded and Mr.
Hughes continued:
II meant they are good things to b'
let in whereat Mr.. Schiff smilingl1
nodded
The list of the syndicate transactions
of the Equitable was taken up and thu
manner OF allotment of bonds wa'
| probed The allOtmentS TO Genera
Louis Fitzgerald were made to hin
rather than TO the Equitable. Mr. Schif
said that he was financial factor in I
circle of men whom he desired to tak'
into the syndicates. As director o
the Equitable il did not occur to Mr.
Schif that the profits from this would
not go TO the Equitable. He trusted e
General Fitzgerald's fairness.