Show millions loaned them by equitable life new york nov 16 former governor benl B odell jr and united state senator C M depew as witnesses before the armstrong legislative insurance investigating committee today denied parts of the testimony of james H hyde in which their names were used abir odell in the course of his testimony called mr hyde s statements base calumny and when he was asked whether he directly or indirectly had made threats to have the charter of the mercantile trust company i evoked his face flushed and striking the arm of the witness chair with his fist he exclaimed there Is no aruth in that statement so help me god senator depew said ho had always favored the deferred ired dividend system of insurance and had seen nothing yet to shake his faith in it he was a firm believer in life insurance but thought it would be in the of public molicy to limit the risk he favored investigations at staled periods on the ground that many suite brought for an accounting would be obviated john gilchrist in charge of the security department of the equitable life followed senator depow mr gilchrist said that in 10 reduce the equitable life assurance socie tys cash on hand at the end of the year he had caused loans to be made to kuhn loeb and company at the end of every year except three since in 1899 1900 and 1901 the loans were of in 1901 was loaned in the name of clerks of kuhn loeb and company but checks were drawn to the order of that firm the equitable society held the certificate of the loan but received no collateral and it was understood that no interest was to be paid on the loans on jan G 1905 the certificates for the loan made a short time before was surrendered to the bank and the check for the sum of the loan was returned to the equitable society the envelopes were returned 10 kuhn loeb and company and there was no further documentary evidence of tho transaction loans made to kuhn loeb and company on december 31 amounting to were made in the same way these were all reported to the state superintend ten dent of insurance for his report as outstanding collateral loans H R winthrop financial manager of the equitable was called and said he instructed mr gilchrist to make cheso loans at the instance of mr jordan it was sir jordans diacre alon what amount of cash balance would be carried in proportion to the companas comp anys assets daniel M junk secretary and treasurer 0 the cafe which is located in the equitable lifo assurance socie tys building in this city waa called he detailed tho organization of the corporation which started this cafe the capital stock is an is held in the name of the equitable lite assurance society except five qualifying shares held by directors who are connected with the society the cafe is charged a rental of none of the management of the cafe receive any compensation from the cafe company all are employed emp loyes of the equitable life assurance society and are paid a salary by the society witness is attached to the cashiers department of the society mr junk will furnish a statement of what profit it any the equitable makes out of the of tho cafe john mcguinness a clerk in the equitable society in charge of the purchasing department was called ha said that this department which purchases the stationary and attends to the printing expended in 1904 the sum of supplies are bought on competitive bids louis M bailey in whose name a trustee account was carried on the books of the equitable was called he had been a clerk in the bond and mortgage department for fifteen year he said george H squire asked permission to place the account in hia name the account was 1904 with a balance from the squire account of this was ini creased to 1208 he ordered a check for the balance of given him by mr and deposited it he did nat know be had authority to draw checks on that account his signature was at the bank where he kept his personal account building operations erat ions had also been carried on by the equitable lite in hia name one of was an entire investment of while the building was being erected the property standing tn baileys name he gave a mortgage to tho equitable lite and upon its completion he transferred tha title to the society asked why this roundabout method was taken the only reason he gave was that an individual could build cheaper than a corporation witness said relative to the trustee account he had executed no declaration of trust to the society neither had he done so in the building operations with the mortgage the equitable society he also gave deed that was not recorded but wag held by the society witness said that prank B jordan son of the former comptroller had the monopoly of writing tse fire insurance on properties upon which the society held a mortgage abi has been true tor a period of five years he did not know what the commissions on that business amounted to thomas D jordan the comptroller a few days ago directed that anat clause be inserted in the equitable mortgages reserving the right of the society to place fire insurance no properties on which it took a mortgage |