The Montgomery advertiser., 1905-07-03
REPLIES TO MIR. HYDE
CONGRESSMAN DRIsCoLL MAKES A
 STATEMENT.
Protest Against Reflections on EQuita- bIe Founders Memory Natural,
 but it is not Based on Facts and Common Sense.

Syracuse, N Y. July 2-Before leav- mig for the West to join Secretary Taft's party for the Philippines. Con gressman M. F. Driscoll. who was the Investigating attorney for Superinten- dent of Insurance Hendricks in the Equitable investigation, made a state ment on the letter of James H. Hyde to the board of directors of the Equita- ble Life Assurance Society some days ago. In his statement Congressman Driscolf said:
 "Hyde's protest against the ref1ec tions on his fathers memory Is quite natural and if his argument were based on facts and common sense 1t would appeal very strongly to human sympathy and even prejudice. but ac- cording to my opinion his defense in the form of special pleading only verifies and strengthens the charge pre- ferred in the Hendricks report. Out of his own mouth he convicts his father of reapng large profits during many years at the expense of the trust which 1t was his solemn obligation to protect. It is true as James H. Hyde states, that the society owes its existence to his father and that its success in the main Is due to his efforts; and 1t Is also true that his father inaugurated the sys- tenn of subsidiary or affiliated com panies by which he and his friends con tinue to milk the society.
 "He states some of the early history os the Mercantile Trust Company and the Mercantile Safe Deposit Company and that of the Equitable Society. In about the year 1872 he says the Equi- table purchased a controlling interest in the Mercantile Trust Company and in 1873 increased It's capital stock from S5o0,0O0 to $1 100000. and in 1875 in creased 1t from $1.000,000 to s2.00O.0O0 and that the Equitable Society had al ways owned a controlling interest in the Mercantile Trust Company He further states that a part of the pusi ness of the Mercantile Trust Compsny in about the year 1875 was safe de- posit business, but in that year 1t was determined that the Mercantile Trust Company sell out the safe deposit com pany business to another company. In order to do so the Mercantile Safe De- posit Company was organized with capital stock of $300,0O0 He says the lease now criticised was then in ex- istence and was assigned to and as- sumed by the Mercantile Safe Deposit Company upon its organization. In that statement think he errs. because the lease now in existence Is dated 1883. Perhaps there was a prior lease and prObably 1t was as one-Sideu Tn favor of the Mercantile Trust Com pany as the present lease Is in favor of the Mercantile Safe Deposit Com pany. He says the books were open for all directors in the Mercantile Trust Company and the Equitable So- ciety to subscribe for the stock in the new corporation, the Mercantile Safe Deposit Company.
 that others did not take it very pru- dently and that his father took most of 1t and paid $200.000 cash to the Mercantile Trust Company for its lease of the Safe Deposit Company's vaults and the remaining s100.00O was paid 10 the Treasurer of the Mercantile Safe Deposit Company.
 Right here let me ask, why was 1t that $200.o0o in cash was paid to the Mercantile Trust Company for the lease of those Safe Deposit Company's vaults unless 1t was a one-sided lease, sub stantially like the present one? Why was such a one-sided lease made by the Equitable Society to the Mercantile Trust Company? Simply because Mir. Henry B. Hyde dominated the Equita- blye Society absolutely and made a jug handled lease with the Mercantile Safe Deposit Co.,, in which he had stock and could profit thereby. But why was this profitable lease sold for $200.- 900 in cash? Because the Equitable