The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-06-29

he says. were opened for subscription and
every director ii, the Equitable Life Assur-
ance Society was invited to sur scr1ce,
but there was little response His father;
Mr.. Hyde says, personally took and paid
for nearly all of the stock Of the Mercantile
Safe Deposit Company.
AS a result of this $500 900 In cash was
paid to the Mercantile Trust Company for
It's lease Of the safe deposit vaults and for
the good will OF its safe deposit business,
and the remaining 100000 was paid into
MIR. Hyde sui sequently offered this stock
to the Equitable Life Assurance Society
at cost to him. This offer was declined
after the directors OF the society and its
legal advisers had looked carefully into the
whole matter, and 1t was decided for the est
interests Of the society, instead OF p,lrchas-
ing this stock, to continue the lease which
is now criticized
The stock in the Equitable Safe Deposit
Company in Boston, on account OF which
Henry B. Hyde was criticized IN the Hend-
subscribed for and taken by his father at
the request Of the Equitable Lies board
of directors. The society, he says. had an
option to take all this stock al par, whenever
it desir~d 70 do 80. The stock was trans
ferred TO the Mercantile Trust Company
cash MI HYDE Organized The Security
the Mercantile Trust Company for the
stock which he had transferred TO them.
and which cost SIS 900. 500 COO in cash.
In the cast, Of the Missouri Safe DEPOSIT
stock transa ctions, Mr.. Hyde says, TO help
the Mercantile Trust Company.
1T will be SEEM" says Mr. Hyde, that
the three leases criticized by Supt Hen
bricks were in substance in existence be-
fore my father subscribed for and took
ha 81 ha Gafa
panies. 1t will also be seen that for the
purpose Of saving the credit of the Mer-
camille Trust Company and OF preventing
its insolvency my father paid into the
treasury OF the Mercantile Trust Company
sum Of 5000 o0O almost ali Of which he paid
out of his own pocket. These transactions
showed profit Of S55o,ooo in cash to the
Mercantile Trust Company"
In short says Mr.. Hyde, at great
father took up these safe deposit company
businesses. then an asset considered OF
little or no value, thereby producing a
profit Of a tout 81, 300 900 to the Equita lie
Life Assurance Society and incidentally
erecting the safe deposit business from an
MIR. Hyde then takes up Supt Hendricks's
criticism concerning the advances to agents
which had teen credited as deposits in the
Commercial Trust Company Of Philadelphia.
Mr.. Hyde denies that the society sustalns
any loss by reason OF these transactions
looked the fact that the society itself collects
per cent. on these very agent alances
in addition to the 8 per cent, which 1t
receives for the deposit from the trust
company.
In regard to the Superintendent. criticism
OF the increase in the Equitable Trust Com
panvs capital stock from 81 100000 to
s., 900 600, and the failure Of the society
to take the 1885 shares to which It was
entitled and which went partly into the
hands of the Hyde family, Mr.. Hyde says
that can be explained from the fact that at
the time when the increase was made the
Equitable Trust Company was by no means
an assured success. He desires to point
out, however, that the 7o2 shares taken in
the name of James II. Hyde and, w. II.
Mcintyre. trustees, were distributed among
people who it was believed. would furnish
valuable business to the trust com
panv. As it turns out the investment: Mr.
HYDE admits. would have been good one
for the society. but unfortunately the
society had not then as accurate con-
ception of the mathematical facts OF the
future as the Superintendent OF lnsura
now has of the mathematical facts OF the
past and could not be certain that such
purchase at that time would have been
profitable"
In regard to the syndicate transactions
MT. lStt6 saws tIlau ne Noulu lctu tHO
money to the society were 1t not that 1t
thought it would be more satisfactory to
all concerned to have the matter settled
once and for all by the. courts.
Mr.. Hyde refers to the Superint endents
statement that he did not hesitate to ex-
tract from the society's treasury 1852 500
for his stock in the Missouri Safe Deposit
Company, and says that he desires to state
AGAIN. as he had TO the Superintendent,
that this sale of stock was made while he
was in Europe and was conducted on behalf
of the society by James W. Alexander,
no wrote to him as follows
willie will tell you that the executive
committee has passed a resolution to buy
out the stock Of the Missouri Safe Deposit
Company at s35o,OOo. They all seemed to
think that it was good business. Snyder
signed the report with me recommending
it. don't think it Is necessary for you
to thank anybody, because the whole thing
was done on commercial basis for the
interest of the Equitable
Mr. Hyde concludes his letter as follows:
Il have Teen wronged by the inatten-
ton of the superintendent as well as OF the
Prick committee to the evidence which /
have given, the exhibits that have fur
nished and the statements have made as
to these syndicate transactions and other
transactions complained Of. The COM
plants against me seemed to have re-
ceived their anxious and minute consdera-
ton, but my answers to these complaints
have been completely overlooked. There
fore l feel justified in at least indicating
to you some of the instances in which mis-
takes have crept into these reports and IN
asking your board Of directors to suspend
Judgment on. these charges until all the