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2 Kept with Maircellus Ha rtl«y. trustee, was then closed, and t.he balance trinsf erred to the credit or George H. Squire, trustee? A.-I should thmk it did, although I wa* not i»id. „..,,. Q._That M. H. stands for Marcellus Hartley? Mr Hughes— this letter that you give m« under date of April 1. ISO./. I will offer in evidence. It is as follows: (Paper marked Exhibit ISO "April 1, 19W. Equitable Life Assurance Society. George H. Squire, Esq., Finance I>partment, No. "Deer Sir: In accordance with your instructions I have delivered over the collateral to the loan of 2£ Hartley. Trustee. $223,000 Third Avenue 4 per cent bonds, receiving payment therefor $EM.oS3 .o. We have charged accrued interest to the loan, and inclose herewith checks aggregating JTo.fiSl To. bal ance paid, indorsed to George. H. Squire. Trustee acknowledge receipt ajia H >bl^? e p^^ r | G v y truly ' -Vlce-PreWent." Q.— There whs. then, a lean of M. Hartley, trus tee and there was collateral to that loan $223,000 Third Avenue 4 per cent bonds, and that loan was apparently with the Mercantile Trust Company? Q~-And tbe Equitable Life Assui-ance Society re ceived from the Mercantile Trust Company checks aggregating: *55.'31 13. which were Indorsed to Georce H. Squire, trustee, and handed to George H. Squire as» financial manager of the Equitable Life? A.— Yps, fir . , And when <_!eorpe H. Squire, as financial man ns«>r of the Equitable Ufe. got that amount of money he instructed >w. to ma.'cc an entry in the George K. Squire Trustee account that that was to credit balance of the M. H. Tristee account, and then tie $36.63113 was deposited on the same date. April 2 1901. to the credit of H. Squire, trustee, in his account with the American Deposit arid Loan Company? A.— Yes. -Now. to come back to the point from which we d'verged. that audit company stock, you think, h«d something to do with that? A.-I think so. What makes you draw that conclusion. A.— In talking to the accountants I t.»lnk they told me that. I am not positive on the statement, beeaus-e as I say I or.lv had a few mimit £S with them but I told them that I really did not enow where those things came from at all. and they said they had on the . same page, JUst befc-e the account with the American Deposit and Loan Company was opened urde- date of October X: i Tarn referring now to our account book JVSJJ i<« «or identification, to wit. proceeds of klw York CJtv 8 1-3 bond !»yndicate. $5,400 92. f you rTmember what that syndicate was? A.- N o 6 Hav« you pot some voucher or letter relating to It? A^don'* think I have anything relating to that Mr. Hu*hes then -vis.sed to the first draft again« this account and oroceeded: O —Now you called my at >nUon to the fact that theUemVwith which the account opens. of $36.030 98, «ft"e™otal amount of the deposit* down to that "me! less $2.5« first drawn t»y Mr. Jordan on Sep l-De-1l -De- 17 ro 1 u o< know"abo«t that draft? A.-l don't, anything more than that ft was paid to Mr. Jordan. TWO SIGNATURES TO CHECKS. o— He drew a check on the account: he was able to draw checks on it? A.-Well. as I -understand it the acount was— three people cculd sign checks, and en the checks there had to be two signatures of the three? A.-I understand that It was George H. Squire. William H Mclntyre and Thomas D. Jordan; any two of these could d Q-i Me beC Do you remember about this check that ■was drawn, or rather that was deducted in cash? A— Yes That was only told to me. I don t know anything more about that. Mr. Squire told me to enter it and I entered it. Q— As cash? A— As cash. The next important point Mir. Hughes de veloped was the appearance of a missing $25,000 profit due the Equitable from a Chicago and Xorthwestern syndicate. The record show»: Q.— On September 20 there is a credit of $25,000. This was. as stated by you in your book Sep tember 19. a share in the profits of tie Chicago and Northwestern syndicate? A— Q— That was the profit in the syndicate partici pation of the Equitable Life Assurance Society? A.— Yes. it appears to be. Q —That we have already had evidence about to day from Mr. Winthrop? A- —Yes. Q '-The society got a check— or was that a check to Mr. Squire? A.-Probably to the society. Q— And indorsed by the society to Mr. Squire? Very probably. That was the check that was drawn to the order of ihe society. Q— And Indorsed by Mr. Squire, and he gave it to you to bank in this account? A. — That I am net sure whether I made the deposit or not. It was customary for the checks to be sent to Mr. Jordan. Whether I did It I don't know. Q._But you had something to make this entry. X>o you remember what it was? A.— He gave me the items to enter. , . Q —Did he give you any ticket or voucher relating to It? A.— l don't seem to find any ticket or voucher. Q.— You Just made the entry A. — his per sonal request. . Q.— By the way. I find some other Touchers here earlier, regarding these Rope and Twine transac tions, which seem to be stat<*m«nts from William son & Squire to George IL Squire that "We have •old for your account" A.— Yes. that will be al! flown there. — There correspond to tho^e various Items? A.— I think you will find they all co-respond. Q. — Well, what makes you rather positive that this was a check to the society ard induced over to Mr. Squire? A.— From data that I have looked up in regard to syndica:e«. Q.— Well, do you find anything that would enable you to state that that was indorsed by Mr. Squire as trustee? A.— l don't thir.k that Mr. Squire ever Indorsed checks payable to George H. Squire, trus tee. I think that in a ! other case? you will find it was indorsed by some other off.o. r. 1 think the first— perhaps at that date M". Squire may not have been authorized to sign checks, in 1300 I am not sure whether he was or not. Q.— was rot an officer at that time? A.— other word?. if a check was rna£* payable to the Equitable Life he could not ir.dorse it over to any MADE $626,096 LOAN THROUGH A 52,000 CLERK. EQUITABLE'S METHOD OF GETTING ATLANTIC COAST LINE BONDS OFF JTS BOOKS, MR. WINTHROP SAYS, A loan, analajtous to the famous "messenger boy" loans of the New-Tork LJfe. was shown by Mr. Hughes yesterday in the Equitable partici pation In the Atlantic Coast Line syndicate. In this case the amount involved was $626,096 90 and the clerk was E. Barrin^gton, who had charge of the advertising business of the Equi table. Apparently ihe desire was to eliminate these bonds from the books of the Equitable, and to accomplish it a Joan was negotiated on these bonds as collateral in the name of Harrington. Xo record of this proceeding appears save in the letter of the trust company, calling: for the payment of the inter* et on this loan. The testi mony on this point, iv hich occurs in the seriatim discussion by Mr. Hutthes of the Equitable syn dicate participations, follows. Henry Rogers "Winthrop was the witness. Mr. Hughea asked: Q. — The next syndicate is Atlantic Coast Line Railroad syndicate, J. P. Morgan & Co., syndicate managers." This is the syndicate mentioned under the same title In the list, but then you were un able to state the names of the managers? A. — Ten, sir. Q. — Or the allotment? A.— Yes, sir. O. — What is the allotment? A. — We haven't ascertained that yet. We don't know the amounts that were called in. Q. — That was re. reived from James H. Hyde and associates? A. — T«s. sir. Q. — And you doo't know what was the total amount allotted to James H. Hyde and associates? A. No. sir. Q. — And you don't know how much of the allot ment to James H. Hyde and associates went to the Equitable? A. — No. sir. Q. — What papers have you relating to that mat ter? A. — Just these two vouchers. q Showing two payments, on« of $750,000. un der date of October S. 1902, signed George H. Saulre. approved. Thomas D. Jordan, and the other for $636,096 90. similarly signed and approved. Have you any correspondence relating to the mat ter* A —No. sir. q— The first payment of |7SO.<MM was made to j p. Morgan & Co., syndicate managers? A. — "YX sir second payment of May 12. 1901. was Q.'_The second payment of May 12. 1901, was For. Weddings Diamond and Gold Jewelry In Exquisite Conceptions Sterling Silver, Hand-wrought in Beautiful and Exclusive Designs Watches, Cut Glass, Canes, Umbrellas, Leather Goods and Wedding Stationery. Visitors arc cordially invited to visit our new itore. inspect our stock and inquire prices, without obligation to purchase. REED & BARTON CO. FIFTH' AYE., COR. 32d ST. body, became he was not rcce r.tz»d in «ny bark as an officer. . i^v m« of the •SJK 6%fl?t& cJeS?t n o'f '^account? A.- T Q.-And undoubtedly it was Equitable money, as appears from this statement. A.— *cs. "J. W. A. NO. 8 ACCOUNT" BEGINS. After running through the lift of items in the book, including an entry of $16,402. received from profits in a Union Pacific syndicate, a sum hitherto unaccounted for. Mr. Hughes reached the entry relating to the famous "J. W. A. No. 8 account." This entry established the relation between the ' G. W. Squire Trustee" account and the $685,000 "yellow dog fund." The testi mony follows: Q —Now. 1 find on the other side of the account aa i a charge against these credits under date of December 30. 1901. the following phrase: Check drawn to the order of J. W. Alexander and in dorsed over to the Mercantile Trust Company to "educe J. \V A. No. 3 account. $100,000." Do you remember about that? A.— l remember the entry. Q. -There was a J. W. A. No. 3 account? A — Q— And that was kept vrh«»re? A.— l believe in the Mercantile Trust Company. rt __ Q.—Now, this check was drawn on the George H. Squire account and went to the credit of thai other account? A.— Yes. . Q —Do you remember who drew that check . A.— All checks were drawn, so far. as I knew, by Mr. Jordan who kept the checkbook. _i S oe. A.— And they had to be signed, as I Ft a ted before, by two of the three parties I men q!— What was this J. W. A. No. 3 account? A.— I don't know anything about It. It is J. « . Alex ander, you know. M q— Yes. but you don't know anything about It 7 Where did you get the information about this check? A.— From Mr. Squire. Q.— At tho time? A.— lea. Q —Did he give you any ticket or tell you any thing about it? A.— No. sir; he Just told me to enter It. . , . Q.— Did he give you a memorandum from which you could enter it? A.— No. 6ir: I don't remember to have had any, and all memoranda I have had 1 have always kept. PROFIT GOES TO "TELJXJ'W DOG." Q.-Then we go into 1902, and we find this balance of the Marcellus Hartley trustee account, $50,fcl 13. which has already been mentioned placed to the credit of George H. Squire, trustee, and also an account from Pittsburg Company loan, $6,b.050 .Do you remember what that is? A.— l think the Mer cantile Trust Company made a loan to that com pany and the Equitable had part of the loan, on which they received their Interest. It was a loarr Besides that I think they received that yrofit. and instead of that profit going to the Equitable Ijfe s books. It was put to the George H. Squiro trustee account. . Q.— l don't quite understand what you mean t>y getting a profit? A.— Besides, the interes"— Q.— Was there a sort of bonus on the loan? A.— Tes, which they received. Q — For making the loan? A.— For making the loan, or something 10 that effect. I don t remember the details of it, tut I know there was a loan, and thai it was on our books ,«_ w . -r ■* Q.— rou mean by your books the Equitable Life Assurance Society's books? A.— Yes. Q— And the loan is on the books? A.— Tea. Q— And the interest? A.— Yes. Q — And the bonun that -.vas received went to the George H. Squire account? A.— Yes. Continuing his examination, Mr. Hughes turned to an item of deposit In the Equitable Trust Company to the credit of "George H. Squire, trustee," of 540,000, but could find no corresponding item in the book. The witness failed to explain this. Mr. Hughes next took up a $200,000 participa tion In West Virginia Central and Western Maryland Purchase Syndicates, in the name of "George H. Squire, trustee." SYNDICATE FOR THE "FUND." The first payment called was asked from James H. Hyde, in a letter. The letter follows: Equitable Assurance Society. 120 Broadway, New-York. Vice-President's Office. Dear Sir: On or before Maroh 31. 1902. will you kindly send me cheek for $40,000. being 20 per cent of $2)0.000, the amount of the participation in the West Virginia Central and Western Maryland Pur chafe syndicate allotted to George H. Squire trustee, for the benefit of James W. Alexander and Thomas D. Jordan Trustee account. Yours very truly, JAJHES H. HYDE. Mr. Hughes then questioned the witness con cerning the "James W. Alexander and Thorrats D. Jordan Trustee account." The witness de clared he did not know, but, prompted by Mr. Winthrop, Mr. Hughes elicited the fact that he believed it was identical with "J. W. A. No. 3" account, and that the $40,000 was paid to this account. A second call for 20 per cent made by James H. Hyde was then discussed. The letter in this case was addressed to J. W. Alexander, trustee, while George H. Squire, trustee, had the par ticipation. The witness expressed the opinion that this was a clerical error. This $20,000 was paid, as was another similar sum on a further call,' again in the name of James H. Hyde. There was a fourth call for §20,000. Mr. Hughes then reverted to an original credit of $40,000 on the books. The witness admitted that it must have come '"from somewhere," but could not explain the source. At thip point the committee adjourned, hav ing sat for an hour longer than usual. paid to the Equitable Trust Company? A. — Tes, Bir. Q. — Why wa6 it paid to the Eaultable Trust Company? A. — It appearb to have b>%n carried there in a loan. Q.— Please explain that. A.— lt appears that this was put ir.to the Equitable Trust Company as a loan in the name of one of the rierks at the office W— What clerk? A.— E. Barrin^ton. Q.— l don't understand just what you mean by putting it In as a loan; you mean that that was loaned to the Equitable Trust Company? A.— 'Jo the Bquitablo Trust— so as to get it off the books of the society, apparently Q.— Was it a loan to the Equitable Trust Com pany? A— No; the Equitable Trust Company loana money on the collateral. Q— To whom did they loan it? A.— Presumably to the society, and then It was eventually tak<--n up by the society. Q.— Then this amount paid to the Equitable Trust fenpany on May 12, 1904. of $636,096 90 was 1n re payment of a loan? A.— Was in repayment of the loan. Q— Do the books of the Equitable society show that loan? A.— No, sir. Q.— Your information as to that loan is derived from the papers you now show me? A. — Yes, sir. Mr. Hughes then offered In evidence the pa pers, which read: Equitable Trust Company, of New-York. WO. 15 NRscau-st .. New-York, May 12, 1904. Dear Sir: The Eqi itable Trust Company, of New. York, requests the payment of Interest on your loan of $623,730 66, dup May 12, 1904, amounting to $2,366 24. Yours respectfully, I.AWRENCK L. <J ILL, ESP IE, Vice-Fresident. To E. Harrington. October 5, 1902, $600,000. Carried out. $37,800: May 5, 1904. credit. $11,694; carried out. $9 10 Deduct leavinK $37,7!tu paid on account, $35. 424 66. Balance, $2,360 24. Mr. Hug-hes resumed': Q.— Why was there a payment to th« Equitable Trust Company? A.— lt was put there as q. loan. The note of Eugene Barrington, clerk in the Equitable was Riven for a loan, and the payment was In repayment at tho loan Q— How does the transaction appear on your books? A. — Tt doesn't appear. Q.--The payment of the $626,096 90 must appear. A.— l will have to look it up. Senator Armstrong— Who Is this Eugene Barring- NEW-WRfcL DAILY TRIBUNE, THURSDAY. SEPTEMBER 28. 1005. ton? A— is stili in the employ of thaJ&Ugj lie is now a good deal engaged In «« ****/'),"£ business, writing our losers, pamphlets, and so on. He M thin employed in the office of.t he fourth vice-president. His salary is about $2,000 or $2 500. t 7 Q.— From whom did you receive the payments? A.— From J. P. Morgan & Co. direct. George C. Van Tuyl, eecretary and treasurer of the Albany Trust Company, early in the day produced the records of "Judge" Andrew Hamil ton's account In this institution, but tho Ft'RMbHED ALL FUNDS AND SHARED PROFITS. EQUITABLE DID NOT EVEN CHARGE ITS "ASSOCIATES INTEREST IN ONE CASE-ACCOUNTS IN CHAOS. Only less sensational than the new "yellow dog" revelations of the George H. Squire trustee fund was the wholesale disclosure of the exact character of the syndicate operations of the Equitable. It was shown that the Equitable was the third party in various syndicates— that is, that. It took off the hands of Its officers por tions of their allotments in various syndicates which they turned over to It. The Equitable also in certain case* put up all the money for financing the syndicate, not only for it> own share, but also for the various "associates" com binations of Its officers, receiving no interest In at least one case for carrying the participation of all parties. It was also found that not infrequently there was no record of a receipt of profits, and that the efforts of the Morton directorate to find just what part the Equitable had in the transactions were facilitated only by appeal to the various syndicate managers for records of checks sent to the Equitable. It deveioped that expert ac countants have been for days laboring to un ravel the tangles and that the problem is still only partially solved. Time and again Mr. Winthrop testified that he was still without data, but hoped to be able to produce it later. The best example of the curious manipulation of a syndicate was supplied by the 51,500,000 participation in Chicago, Burlington and Quincy. This participation, taken by the Equitable "and associates," was divided among the officers of the Equitable, including James Hazen Hyde and Senator Chauncey M. Depew, In the following ratio: Ecuitablo *500<™> Mercantile Trust Company iX'nnft American Deposit and Loan Company ifLinoo J. \V. Alexander warm General Fit*g«ra!d ino'oOO James H. Hyde :::::::::::::*.:: ioO 000 C. Ha D tF^::::::::::::::::..: iSoOOrt M. Hartfey iSrtOOO XV. A. WhMlock aw'Ortrt George K. Squire and others ko'ooo Fidelity Trust Company •_ ot>wl^ Total »!.800.000 OFFICIALS SHARED "GOOD THING." At the outset of his examination of this trans action Mr. Hughes showed the fact that syndi cate managers J. P. Morgan & Co. allotted the bonds direct to the Equitable. The Importance of this point is manifest, since it demonstrates that the officers of the Equitable then allotted to themselves shares in the apparent "good thing 11 of Chicago, Burlington and Quincy syn didate participation. The stenographic record on this point follows. Mr. Hughes conducted the examination and H. B. Winthrop was on the stand. q —Now, what I want to get at is. what action was taken by any committee or board of officers or the Equitable authorizing or approving of that division In Its Interests? A.-That will be looked up. Q — What was the Chicago, Burlington and yuincy purchase syndicate? A.— We have not the syndicate agreement here. This syndicate was formed for the purpose of underwriting a new issue of Chicago, Burlington and Quincy collateral trust 4 per cent b°Q.-Mb °Q.-M- question is. you have already stated-if Q.— M" question is. you have already stated-if not. I want it distinctly to appear that this million and a half allotment to the Equitable in this syndi cate was made direct by J. P. Morgan & Co.? A.— Yes. Q —To the Equitable? A.— Yes. q —You have a letter there as to that, that you showed me * minute ago. 1 will put it in evidence. A.— Yes we have a letter. Q.— l think you said that a moment ago? A.— Yes, the letter shows it. Mr. Hughes— l will ofler the letter in evidence. J. P. Morgan & Co.. New- York. May 1, 1901. To the Equitable Life Assurance Society, No. 120 Broadway Chicago, Burlington and Quincy Pur chase Syndicate. Dear Siis: We have received from you the original of the Chicago, Burlington and Quincy purchase agreement, dated April 25, 1901. signed by you as a subscriber therefor for 5..5C0.000. Your subscription Is confirmed pccordlngly, and we hand you inclosed copy of said syndicate agree ment fur your tiles. Yours truly, J. P. MORGAN & CO Now. I understate the Equitable- society signed the syndicate agreement? — Yes. Q.— A= stated in that letter? Ye?. Q.— So that, he first thing I want to know is the action of any committee or board or officer author izing or approving the signing of that agreement A.— Yes. Q.— Then. I understand thry required for partici pation !n that way. the Equitable divided it up by allotting an interest in its participation to the in dividuals and companies hi' h were earned a mo ment ago in the list you handed me? A.— Yes. Q.— Have you a copy of that? A.— have not here. Now, this Chicago. Burlington and Quincy purchase syndicate was a syndicate for the purpose of voting the Chicago. Burlington and Quincy joint 4s, or the bonds that were issued against the stock of the Chicago, Burlington and Quincy Railroad— is that right? A —Yes. Q.— The bonds were joint bonds of the Northern Pacific Railroad and the Great Northern Railroad? A.— Yes. And these bonds were secured by the stock of the Chicago, Burlington and Quincy Railroad? A. -Yes. Q.— Now, tell me what the transactions were on the part of the .Equitable after this division of Its participation? A.— The Equitabla paid out on two dates money amounting to three — they paid out on May 16. $160 000 at par; on July 22, 1901. $187, at par; on July 2. the society received back the amount paid out, equal to $337,500 at par, also re ceived interest, July 1, 1902. at the rate of 4 per cent, equalling $13,812 60, and, In addition, a profit on Its participation of $600,000 of $7,723 Now. when a call was mada upon this syndi cate participation whirl) the Equitable had received, aggregating $1,500,000. and which It divided, retain ing for itself $500,000. who paid the amount called for? A.— Each Individual participant. Q— Now, let us see. On May 14. 1901. the fir*', call was made for 10 per cent, wasn't It? Yes, sir. Q.— And 10 per cent of the entire participation of $1,000,000 would be $150,000. Ycu have the letter, I think. May 14, 1901. calling that 10 per cent? A — (Witness pxamlning papers)— Yes, sir, here is the letter, calling Q.— For 10 per cent; that is the first call? A.— Yes. Counsel offers the letter in evidence: «J. P. Morgan & Co.. No. 23 Wall-?t. New-York. May 14, 1901. Equitable Life Assurance Society. New-York. Dear Sirs: Referring to the Chicago. Burlington and Quincy purchase syndicate agreemf-nt. dated April 25, 1901, to which you are a subscriber for $1,500,000. we now request you to pay us at our office No. 23 Wall-St., on or before Thursday. May IC. 1901, the sum of $150,000 on account of your said subscription. Yours truly, J. P. MORGAN & CO.. Syndicate Managers. SOCIETY MEETS ENTIRE CALL. Mr. Hughes now proceeded to emphasize the next significant point— that the Equitable not only took the whole participation and then di vided it, but that it put up all the money to carry the whole transaction, that is, for* itself and for the "associates." The cross examination continued: Q — In response to that call the Equitable pan! the. Whole 060,000. did it? A.— Yes, utr \ Q.— Did the other corporations and 1 pel-sons to whom the Equitable had transferred interest in Its participation then pay t!>-» Squitable any uart of the amounts which had been called for? A.— l will have tlia: looked up; I haven't the facts here. That entry for interest seems to t« their payment of in terest on the moneys advanced, 4 per cent. I will have that looked up Q.— When a moment ago you stated that the various individuals paid iheir shares of the calls; that Is, the Individuals and corporation;! to whom the Equitable had transferred parts of its Interest, you were, under a misapprehension, wer« you noi ? A.— l was ■•peaking' from what appeared to lie the record, which apparently was false. Q— But as a matter <>r Tact, the Kquitablo, having received a participation of t1.800.000, paid the entlri amount of the call, and the persona who hnd re ceived parts of its participation tlid not pay any of the calls? A.— Nut directly to j. P. Morgan & Co. y Nor to the Equitable? A.-Well, that w« Will look ui> und see. Q.— Thai you arc not sure of at the moment. Now the next call that was made v.ns for 12*^, per cent on July 19. l(*01. was it not? A.— i'es. air. (Wit ness produces v paper.) (Nriunsel offers tho said paper in evidence, as fol lows: J. P. Morgan & On., y, Wall- St. New-York, July is. ;:«-■.. Equitable Life Assurance Society. C. n. and <j. Purchase Syndicate. l«-;n Sirs: H«*ferrinK to tii' C. B. and Q Syndicate agreement, dated Apiii 25. ii>oi, to which you are a ■übscriber for t1 .600.000. wo now request you to pay uc at our office. Xo. 2a Wall-st . on <. r before Monday. July tt, UML the sum of 1187,500 on account of jrour n»ld subscription, in muking payment please present our receipt for your first payment. In order that we iranscript was without significance, and Mr. Van Tuyl could add no Information to that already obtained regarding the $236,000 fund. At the opening of the session Senator Arm strong made the following brief statement, which may affect to-day's session: 6. Fred Nixon. Speaker of the Assembly, beloved of us all, is lying dangerously ill at h <s home m Westfield, N. Y. Our information leads us to fear that he cannot recover. Should worse news come, we shall Instantly adjourn. may start the second payment there. Tours very truly J. P. MORGAN & CO., Syndicate Managers. """second call paid by equitable. Q.— That entire amount, $187,500, was paid by the Equitable? A.— Yes, sir. , These payments were made on. respectively. May 16 and July 22. 1901? A.— Yes, sir. . Q.— And on July 2, 1902. the Equitable Life Assur ance Society got back from J. P. Morgan & Co. the whole $337,500, with interest, did it not? A.— it got back tho whole amount. Q.— No. it got back the whole amount? A.— Yes, sir; It got back the whole amount. Also received on July ], 1902, interest at 4 per cent, amounting to $13.822 60. From whom did they get that? A.— l will have to look that up. That is what I believe they got back from the other par ticipants. , . That would imply that the other participants were paid interest on the whole $337,500. as at first the Equitable Life Assurance Society retained one third of $1,500,000. It Is hardly supposable that they paid Interest with that interest received from 'he syndicate managers? A.— l will have to look that up. Mr. Hughes; I do not like to testify about some thing which is rather mlx»d up. Q.— No; I understand tha*. you are not testifying from your own person*! knowledge of the partici pation, but you are look'r^ thoss matters up from the records of the society? A.— Yes. sir. Q— Now. the society. In addition, got money back which it paid in these items of Interest— not profit— $7,700? A.— Yes. sir Q.— Have you the letter accompanying the check? A.— Yes. sir. Mr. Hughes— offer it in evidence and will read it: J. P. Morgan & Co.. No. 23 Wall-st.. July 1. 1902. To the Equitable Life Assurance Society: Chicago, Quincy and Burlington Purchase Syndicate. Dear Sir: Referring to our communication of ! June 28. we desire to inform you that the syndi cate is closed and the account made up. The amount of this syndicate is $75,000,000, of which your participation is $1,500,000. You have previous ly paid us $157.500 : the profit on tho account to date is $1,850,000. your share of which is $37,500. The total amount due you is $374,500. Upon presentation of the syndicate receipt at our office, properly indorsed, we will hand you a check to your order for tho above amount. Yours very truly J- P- MORGAN & CO.. Syndicate Manager*. q— Now, Inclosed in that letter was a check to the Equitable Society for $37,500. was there not? A. —I presume so. Q.— the statement you prepared for me you show a profit to the society of $7,729. How is that . A.— That is what appears on the books under th» heading of this syndicate. Who rot the other $29,000? A.— We will ascer tain from our books how the $29,000 was divided. PAID HIGHER MARKET PRICE. Mr Hughes then reviewed a long series of pur chases by the Equitable in the open market of these Chicago, Burlington and Quincy bonds, aggregating nearly $2,000,000. the purpose of this being to show that the Equitable, instead of being able to keep all the $1,500,000 bonds it originally subscribed for, by turning the ma jority of these over to it 3 officers, was forced, if It desired to invest in this security, as it did. to go out and buy them at a much higher figure. The examination of thi* point follows: Q.-What amount of the Chicago. Burlington and Quinsy joint 4s we have referred to are row owned ty the Equitable Life Assurance 9oclety , 7 P?rhaP« you can refer to the published report of Decembe 31, 11-04. for that. I find on that date that the Equitable held in par value $2,306,000 of their issue of bonds, and the $2,805,000 had bnr. *PP"^ £ora rime to time by the Equitable down to that date. but largely in 1301 and 1S02? A --. Ye -*. uUllbla Q.-Bo that it was a security which the Equitable was willing to acquire- and hold? A.-It .was and is. Q.-To an amount not only equal to the participa tion originally allotted to it of $1,500,000. but to an amount far in excess of that A.-Well .at the time they took the allotment they may not na.e been willing to purchasa any more than they did Q.— That we car only conjecture about. That, of. course, neither you nor I know what was in their mind at that time, but it appears thsy did subse quent.y purchase $2,000,000 of these oonds . A.— T«* Q — \nd so far as the facts show, we see no reason for t'i a E^.ulta.'le Life Assurance Society parcelling out the Interest allotted to it; t doe 1 . Sot appear because they didn't want to have a larger Interest In those bonds. That Is a con- Q-So far as you know, there Is nothing to P^Vas a tlns mWaltem W alter A b7for°e the Frick committee? A— l don't know if it was called for. The Frick committee made calls for specific information, whatever they called for they got. Q— So that you don't know whether In fact it was before them or not? I believe it is not men tioned In th'ir report. A.— And then they prob ably didn't ask for it. DIVISION OF DEAL NOT AUTHORIZED. The examination of Mr. Winthrop on thia C, B & Q. transaction was resumed after the noon recesj as follows. Mr. Hughe3 asked; Q—l asked you if you could refer to any action by the executive committee of the finance commit tee of the Equitable Uie Assurance Society author izing or approving any assignment of its participa tion and division of its participation in the Chi cago Burlington and Quincy syndicate transac tion? A—l find no such resolution on the minutes. Have you found any other papers otherwise than the mere list which recites the transfer? A.— We haven't looked through the copy books yet. We have a letter from Mr. Squire in relation to the matter. , Q.— Have you been able to find out whether a check for $8(,000 profits was deposited to the credit of the society? A.— We found that Mr. Squire had written a letter inclosing a chee» for $7,72917 on the Equltable's participation of $600,000. That was on July 2, 1902. It was brought out that the amount would have been $11.233 33 had not $4,604 15, repre senting interest at 4 per cent, been deducted. It was also developed that when tho firm of Morgan & Co. returned the $337,500 which it had received from the society on two calls, it paid $13,812 50 interest, making the amount re ceived by the society from the firm of Morgan & Co. $351,312 50. Mr. Hughes resumed: Q.— Three hundred and thirty-seven thousand, five hundred dollars was returned which the Equitable society had paid out on call of J. P. Morgan & Co. Did J. P. Morgan & Co. make out the check to Mr. Squire? A.— l don't know. Q.— ls It your idea that the Equitable got the payment and turned over that check to Mr. Squire? — Presumably. A.— Plus the $13,812 50 Interest at 4 per cent, and gave the total to the Equitable? A.— Yes. Q.— That amounted to Squire paying Interest at 4 per cent on the call? A. — Yes. Q.— Then Mr. Squire took the check for $37,900 profits, paid one-third of that and 4 per cent In terest on the other two-thirds, so that the Equita ble put up tile money called for on the shares of participation of the various Individuals and com panies interested and subsequently received back Its money, with Interest, with Its third of the profits, whereas the other parties got the profits on their money, less th" 4 per cent Interest on the amount paid by the Equitable? A.— Yes. Q.— lnstead of tho Equitable making a division of profits, thf> company turned over the check to Mr. Squire and let him make the division? A.—Appar ently. SQUIRE'S DOUBLE OFFICE, Earlier in the day an interesting point was made by Mr. Hughes in the transaction involved in a sub-participation of the Equitable in a Union Pacific syndicate, deriving its bonds from the Mercantile Trust Company. The point was considered as indicating the relation of George H. Squire to both companies. — Then I understand that Mr. Squire as treas urer of the Merc-untile Trust Company, after having written to General Fitzgerald for a payment by the Equitable Life Assurance Society of $«00.000 of this participation, then signs the voucher for the payment as an officer of the Equitable Life Asssur ance Society— that is, for the payment for the $fioo.<.ioo? a. — As a secretary of -the committee. He was never an officer. Q.— As secretary of the committee? A.— Yen. sir. Q. Of course that is a minute of the actual transaction by tin; committee? A.— Presumbalv yes. sir ' ' Q.— Those ?re nil the records on that transaction? A.— Yes, sir. Following this transaction Mr. Hughes ran through a long list of syndicates. In many of which allotments of the Equitable were through Squire, or Hyde, as "associates" and In which James W. Alexander was an associate. The other typical "and associates" transaction was that in the Pennsylvania coal purchase syndi cate, in which the following Individual* or com panies participated: Four hundred arm fifty bonds. Equitably Life, amount, $750,000- first payment, January 15, 1901, amount due, $41«.2V>. .Sixty bands, William A. Wheelnrk. $100,000- nrit payment due January 18, 1001; amount due. $55,600 sixty bonds General Fitzgerald. $100,000; first payment <Ju- January IS. 1901, $55,500. sixty bnnda. William Hartley, $100 000; first pay ment due January 15. 1901; amount due, $56,600. Sixty bonds, James W. Alexander. $100,000: _flrst payment due January 15. 1901; amount due, $.>o.ooo. Sixty bonds. Oeorg« H. Squire. $!0a.ooo: first pay ment January 15, 1901; amount due, $55,500. Sixty bonds. C. M. Depew, $100 000: first payment duo January 15. 1901; amount due. $55,300. Fifteen bonds. T. De Witt Cuyler. first payment due $123,000, first payment January 15, 1301; amount due 555. R75. Forty-five bonds. C. P. Alexander. $73,000; first payment. January IK, 1901; amount due, $41,625. One hundred and twenty bonds. Mercantile Tru«t Company, $200,000; first payment, January 15, 1901; amount due, $111,000. Sixty bonds. Commercial Trust Company. $100. 000; first payment, January 15, 1901; amount due, $55,500. Sixty bonds. Western National Bank. $100,000; first paymen^. January 15, 1901; amount dv*. Forty-five bonds. Franklin National Bank, $75. 000: first payment, January 15. 1901; amount due, $41,625. ... „.. Forty-fve bonds. Glrard Tnmt Company. $75,0»0; first payment, January 15, 1901; amount due, $41 62» Total. I,WO bonds, $2,000,000; total amount due, $1,110,000. An almost endless map* of testimony taken on a large number of other syndicate op eration*. involving many of the features illus trated by the foregoing. The most Important point shown otherwise was that of several direct sales of bonds or of syndicate participation by Kuhn, Loeb & Co., to which firm Jacob H. Schlff belongs, In seeming contradiction to Mr. Schiff's testimony before t^.e Superintendent of Insur ance but it is believed that Mr. Schlff will be able to clear these points satisfactorily when he takes the stand to-day or to-morrow, the obvious explanation being that these Items es caped his notice. NO MORE FOR CAMPAIGNS. President McCalVs Statement to Agents — Urges Resolution. John A. McCalt. president of the New-York Life, in a statement issued to his agents under date of September 26, declares 'that at the next regular meeting of the board of trustees he shall ask the passage of a resolution "which will make it clear to every policyholder and to the public that the New-York l^ife will never contribute money to any political organization for any purpose whatever." President McCall's statement is apropos of his testimony before the legislative committee as to the New-York Life's contributions to the Republican National Committee. After re stating a portion of his testimony. President McCall continues : My testimony shows further that this company has never, within my knowledge, except in the three instances named and for the reasons and pur poses stated, contributed a dollar to any campaign fund of any party in any election, general or local. It goes without saying that the business of this company is not politics under any guise. The pol icyholders represent all political parties, the agents of the company are drawn from all political organ izations, the officers and home office employes rep resent all shades of political belief; and aside from all that neither the policyholders. nor agents, nor officers, nor employes are associated together ror a T y he P °contribu P Uons S made in the years in qurtton had no reference whatsoever to politics, They were made to meet a danger that arose in a 8T«« crisis in the economic development of the count. They were made to help kill free silver which, if adopted, meant the destruction of property belong- Ing to the policyholders of this company. The con tributions were made equally for the protection of Republicans and Democrats, equally for the pro tection of the policyholders in Canada Mexico^ Europe, South America and other parts of tne The* contributions have been called ''political" by some people because they were ™ ad h through a political party. They were made through a political party solely because it was not possible otherwise to reach the danger that menaced our assets This company under my administration has never made a contribution for -political'- purposes nor will it ever do so. Answering a question by the investlgat ing committee on this point I said: "If you ask me whether I think It is right to take insurance moneys and devote them to political campaigns. I answer, No. a thousand times, no! Now, as to the future: . , . The gold standard has been irrevocably . »<jopted. Therefore, the question of similar contributions cannot arise again during this or any subsequent administration of the New-York Life. However, in order definitely to express and fix th « company's position I shall ask the board of trustees at Us next regular meeting to pais a res olution which will make it clear .every policy holder and to the public that the ,^J a °, r *."l # will never contribute money to any political organ ization for any purpose whatever. Further interesting disclosures as to Equi table syndicates, as well as to the society's so called "yellow dog fund," are expected to-day when Henry Rogers Winthrop and Henry Greaves resume testimony before the legislative insurance committee. It is doubtful whether Jacob H. Schiff will take tha stand before to morrow. Great interest was expressed in insurance cir cles yesterday as to the nature of Mr. Schiff's testimony. GeorgJ H. Squire, jr. talking from his home in East Orange. N. J.. to a Tribune reporter last night, disavowed any recollection of the "Rope and Twine" transaction mentioned in the testimony of Mr. Winthrop and Mr. Greaves. "I ha\*s no recollection of the affair." said Mr. Squire. "Hundreds of such transactions pass through a broker's office nearly every day." Twenty-two members of the board of directors of the Equitable attended the monthly meeting held at No. 120 Broadway yesterday. President Paul Morton submitted a letter from Nicholas Murray Butler, president of Columbia Uni versity, declining to serve as a director of the Equitable. Dr. Butler in his letter said: With full appreciation of the honor conferred in choosing me to be a director of the Equitable at the present time and under existing circumstance!". and with every desire to help you in. your t*9K or restoring the confidence of tens of thousands of policyholders in the administration of the nocfetj. my academic duties are of such a character as to prevent absolutely my acceptance of the director ship. No suggestion was made at the meeting as to the filling of Dr. Butler's place, and the Cafe Bavarln affair was not mentioned. PRESIDENT BUTLER'S ADDRESS. In his address at the opening exercises of Co lumbia yesterday. President Butler said: Just now the American people are receiving some painful lessons in practical ethics. They are hay ing brought home to them with severe emphasis the distinction between character and reputation. A man's true character. It abundantly appears, may be auite in conflict with his refutation, which is th» public estimate of him. Or late _ we have been watching reputations melt aw|y like snow before the sun: and tha sun in this case is mere publicity. Men who for years have been trusted Implicitly by their fellows and co placed In positions of honor and Krave responsibility are seen to be mere reck less speculators with the money of others and petty pilferers of the savings of the poor and needy. With all thia shameful story spread before us it takes some courage to follow Emerson's advice not to bark against the bad. but rather to chant the bemitv of the irood. Put 'bluntly the situation which confronts Amei> leans to-day" is due to lack at moral principle. New statute* may be needed, but statutes will not put moral principle where It does not exist. The. greed for cain and the greed for ;#iver have blinded men to the time-old distinction between right and wrong Both among business men and at the bar are to be found ailvls»-rs. counted shrewd and suc cessful who have »übetituted the Penal Coda for the moral l*w as the standard of conduct. Right and wrong have given way to the subtler distinc tion between legal, not illegal and illegal ; or better, perhaps, between honest, law honest and dishonest. This new triumph of mind over morals Is bad enough in itself, but when. In addition. Its expo nents secure material gain and professional pros perity. It becomes a menace to our Integrity as a people. Senator Chauncey M. Depew could not be communicated with at his home up to a late hour. In the insurance article printed in yesterday's Tribune it was declared that 'In addition to calling Richird A. McCurdy. II is understood that his son. Robert A. McOtsrdy, will be called before the committee to explain the matter of commissions. . . . Mr. MeCatl Is reputed to receive a percentage on all foreign business of the company as a perpetual bonus on successful work accomplished on a recent trip abroad." As the context shows, "Mr. MeCaU" should, of course, have ivid "Mr. Mi-Curdy." THE "KAHLER" SHOE with high arched instep and modi fied toe, appeals by its style, as by its comfort. Men's Shoes $5.00 up. Women's 54.50 Dp. DR. P. KAHLER & SONS, Surceon Chiropodists. (Established 18«3.) ONLY STORE. 928-930 Broadway. PURITY I* the dlrtlasvtebior characteristic of AK*f C»e<l by Dotted Rtat--i Public Health »ji<J Mtrtae Ha* pltal Service for year*. Contract Ju»t renewed. Cop? of the Araiysls mada by the United SUtei Senate Committee on Pure Food Manufacture* »nd pub!l»hed in th»tr official Report Mai on requ*«t. C. H. EVANS « SOXK Hudson. >. X. DOOLEIf KEEPS WORD. Six of the Women Warned Tuesday Arrested. True to his word to arrest those whom he warned Tuesday night who remained in th» precinct twenty-four hours, Captain Dooley last night ar rested »!x women and marched them through th« streets to the station house, where five, of them were charged with keeping disorderly houses and the sixth with being an inmate of one. The women were arrested In raids made by the staffs of th« captain and Inspector 3chmlttberger. Word of the raids passed rapidly through th«» precinct. Warnings were sent to many houses and the word wan passed that the twenty-four hours of grid was over. There was & hurry call for moving vans, but the general Impression at 10 o'clock was that the police would arrive at sevtral more places before the vans got there. Inspector Schmlttberger said last night: Captain Dooiey and I have walked through the precinct to-night, and we find that the warning given by us ha« produced good results We found no disorderly women on the street?. The women arrested to-night were arrested only after we had secured al! the evidence needed aga.ir.st then. We are after the low places now— the places where vtf itors are in danger— the keerers of those w* will drive from the precinct. NEW FOE FOR TAMMANY. ; Ex-Interborough Employes Form ing Endless Chain Vote. Two hostile bodies of laboring men. at least, : are working to defeat Tammany in the coming I municipal election — the men who lost their Jobs ; as the result of the failure of the strike In the i subway and on the elevated Sines last spring ' and the wagon drivers who are now on strike ; against the contractor who hauls th« United ; States mails from the Postofflce. In both cases the endless chain method to being pursued. One mar undertakes to get five I friends to vote again 3t Tammany. Each of these '. five in turn undertakes to get five of his friends ;to vote against Tammany, and so on. Already. j according to the leaders of this endless chala | enfilade directed against Mayor McClellan and | Charles F. Murphy, 5,000 voters have promised I to cast any ballot but that of Tarr.many. and they assert that by election day 15.000 men will be ready to knife the McClellan ticket. The motive for this effort to defeat the re election of McClellan is the same in both cases. The former employes of the Interborough and the striking mail wagon drivers want revenue. August Belmont, the old elevated and subway men say, when the Interborough strike was de clared, went to Charles F. Murphy and told him be wanted the police not only to protect tha strike breakers, but practically to assist In run nlng the trains. Murphy, they maintain, told Mayor McClellan to see that this was done, and the Mayor gave the orders, which Police Com missioner McAdoo saw were carried out. Andrew Freedman, a director in the Interborough, who could have used his influence in Tammany Hall to stop this, did not lift his finger In the la terests of men who had always voted tlie Tam many ticket. The mail drivers assert that, as in the sub way and elevated strike, Tammany, through Commissioner McAdoo, is employing the police, practically, to drive tha mall wagons. Police men, they say. actually handle the reins and back the horses up to the Postofflce platform. Tammany, the former traction employes say. Is planning to have those strike breakers brought here by Farley who are still working for the Interborough vote on Election Day. Strikers who regained their jobs hay© made a list of these strike breakers and tabulated their pedigrees. On Election Day there will be men at the polling places with these lists, and when a strike breaker who is not entitled to vote ap pears ha will be challenged, and. if possible, prosecuted. Most of the strike breakers, it is well known, came here from Pittsburg. Chi cago and St. Louis. This movement is being led by men who have heretofore worked with mijsrht and main for Tammany. the most Useful Overcoat for all occasions ccatiim«s to N the single breasted fly front sack or €lxs terfitia Coat, cut loose fitting and falling a*o*t v) the knee. this garment is aade front all the new and desirable fabrics, a complete assortment of whlcft ire «• Mbit, $25 tO $40. Burnbam * Phillips CistoM Coloring Only. 119 * i2i nassau St. G^Rp?T — 0.11. BROWN GO, _w" * " "I. _ 22 ! A 223 E Ml* St. CLEANSING tel. sstssc* COMPRESSED " khl| L l ! p L*_ AIM. AltertaK. Tt«toriM _ .^AasVie Cabinets/ 380-382 BROADWAY, COX. WHITt. Results. Results from advertising are what make the ad vertiser happy. The steady increase io Tribune Advertising space shows that Tribune advertisers are having the "goods delivered."