New-York tribune., 1905-04-16
HYDE MAKES HOT REPLY.
GAVE UP HIS PROFITS.
Says AIerander Shared in Under
oUriting Syndicate Earnings.


In letter to Henry c. Frick. chairman OF the
committee of directors. which is investigating
the Equitable Life Assurance Society, sent last
night. James Hazen Hyde. the vice-president.
replied to certain statements charging him with
profting by misuse of the Equitable's funds
and repaying the money when he was in danger
of being found out. Mr. Hyde acknowledged
that he and associates had formed an under
writing syndicate for banking issues. OF this
syndicate President Alexander was a member.
Some of the securities underwritten by this
syndicate were purchased by the Equitable
When the fight between Mr.. Alexander and
himself for the control of the Equitable came
up Mr.. Hyde declared. both were advised to
make full statement to the directors. Mr..
Hyde did and deposited with the treasurer his
profits from the syndicate transactions, with
interest pending a decision as to his action.
When the Frick committee gets to work one
Of the first points it will take up will be the
placing Of fire insurance on the society's hold
ings OF real estate. This branch of the society's
business would be found to furnish an excellent
example of the "nepotism" and family influ-
ence'' by which the Equitable's money was dis
tributed. declared insurance men yesterday.
Practically all of the insurance on the EqUi-
tables real estate is placed through Frank B.
Jordan, OF No 100 Broadway. an insurance
is the son Of Thomas D. Jordan. the controller
OF the Equitable society. According to the re-
port OF the Equitable for the year ending De-
cembsr 81, 1904. the holdings OF real estate in
this city alone, including the Equitable Build
ing, amount 20 S2O9O6.215 7s. while the real es-
tate outside this city, including some fourteen
Office buildings. amounts to $15,9S9. .431 Sc In
surance men declared yesterday that Mr. Jor-
dams insurance transactions aside from his han
ding Of the Equitable's business were unimpor-
tant. Nevertheless, his commissions on the
Equitables business assured him large income
yearly.
Besides the insurance on the Equitables build
ings the insurance property which the
Equitable makes loans is placed through Mr..
Jordan The value of the mortgages held by the
society is given in it's forty-ffth annual state
ment as $S1. .62S. 700 II. Recently the Equitable
has put into its loan forms a clause stipulating
that all insurance property held as security
for mortgages should be placed by the Equi-
table
Mr.. Jordan, in his capacity as broker, dis
tributes the insurance among all the large fire
companies. One, however the Continental. in
which James Hazen Hyde is a director. is
especially favored. In view of Thomas D. Jor-
dams adherence to the Alexander party in the
directorate, this sending of business to Mr.
Hyde's concern by his is creating some
amusement among insurance writer's.
It's division of the Equitable spoils" one
commented lust as the Republicans and Demo-
Gratis at Albany trade votes to push through
their favorite measures. Mr.. Jordans handling
Of the Equitable's business has been known
among insurance people for some time and has
caused no little criticism, because of his fathers
high place in the society
The reports that Mr. Hyde was restoring to the
society i'll gotten gains caused much discussion
yesterday They were understood to have come
from Alexander sources. From similar sources
came amplihcations of them charging generally
that the syndicate OF Equitable directors had
made much profit from shipbuilding transac-
tions and deals in the securities, of the Union
Pacific Railroad. the Equitable Trust Company
and the Coney Island and Brooklyn Railroad.
These sources declared that the surface Of the
bed of corruption had only been scratched as
yet"
JAMES fl. HYDE's LETTER
Neither President Alexander nor Mr.. Hyde was
at his office. Alexander & Colby, for Mr. Alex
ander, denied knowledge of any such restitution
as was made apparent by the extracts from Mr..
Hydes letter to Mr. Alexander. which had been
made public. Mr.. Hyde was in consultation with
his lawyers most of the day and finally drafted
the letter to Mr.. Frick. follows:
Your committee has enJOineQ and all the
officers Of the society from discussing in the pub
lie press matters covered by your proposed in
vestigation, and i has been impressed upon all Of
that the daily publication OF scandal may
grayely injure the soeiety's business have abso-
the concessions which have made for the benefit
OF the policyholderS and the society and the steps
which have taken voluntarily, to be misrepre-
sented and distorted in the public press by those
who have not kept faith, and who never viii keep
faith.
l propose TO make the facts known. They are as
follows:
At the outset Of the present Equitable contro-
various underwriting syndicates known as James
n Hyde and Associates where participations had
been taken anu where II was claimed that the nm
derwrters had made profit by the use of funds
uf the Equitable Society.
No such profit had. IN fact been made by the use
of the funds of the Equitable but there had been
a syndicate known James II. HYDE and Asso-
ciates" including James w. Alexander president
Of the society (whose participation WAS alvEavs
equal TO my own. and this syndicate hsd teSn
underwriters of "A number Of bankns, issues OF Sc
curities and the Equitable Society purchased i'm
some instances, IN the ordinary course of business
securities which had reen underwritten by this syn
dcate
At the outset OF this controversy James w Alex
ander and botn advised by counsel that as 10
any such syndicate transactions in which any on
GERS Of Equitable Society had been interested a
Coatiaued second page.