In III, you can directly take any item from a follower (this causes MAJOR disloyalty from him), and if you defeat generals or rulers with items, they are given to your ruler, to be handed out or hoarded (for example, you can give the red hare to anybody after beating LuBu, and there battle movement becomes +2 (so with high moral troops, you can scale walls without waiting, I always use this to open castle gayes, far faster then breaking down the gate by battle), and there are other horses that give +1, some swords, 7 copies of the art of war, and a few other items.