Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-07-03
SCOR[SHYDE
Gives Out Statement In Which
Says Hyde Filchcd Half Mil
lion From Policyholders
THOSE AFFILIATED COMPANIES
The Elder Hyde Started the Scheme
and Ellis Son Has Been An Apt Pu-
piI--lnmense Sums Taken From the
Insurance Society to Pay Subsidiary
Company Dividends.

SSn'Hauy S'S'SS''>'Ss
Syracuse, N. Y. July 3--Before leav-
ing for the west to join Secretary
Taft's party to the Philippines. 'Son-
gresham M. e. Driscoll, who was the
investigating attorney for Superlden-
dent of Insurance Hendricks In the
Equitable inquiry, made Il statement
concerning the letter of James H. Hyde
to the board of directors Of the Eluit-
able Life Assurance Society some days
ago.
He declares that the former vice
president juggled with facts In detail
ing the formation and control o., the
famous safe deposit company, and
shows by statistics that in this purtic
ular way the Hyde family appropriated
nearly 100000 of the policyho ders'
money between 1877 and 1904. He
says:
"Mr. Hyde gives some of the early
HlStOIy vi ltlG McISditllJt NsotiI-
pany and the Mercantile Safe Deposit
Company, declaring that the Equitable
society, in 1872, purchased controlling
interest in the Mercantile Trust Com
pany. and In 1873 Increased its capital
stock from 100000 to $1,000.000 and III
1878 increased its from $1,000,0D0 to
81, 600. 900 and that the Equitable So
ciety had always owned controlling
interest in the Mercantile Trust Com
pany.
"He further states that a part Of the
business of the Mercantile Trust Com
pany In 1875 was safe deposit business,
but in that year, after full discussion
among its directors and stockholders.
1t was determined that the Mercantile
Trust Company would sell out the safe
deposit company business to another
company.
''In order to do so the Mercantile
Safe Deposit. Company was ongilnized
with a capital stock of 100000. He
says that the lease now criticised was
then In existence. and was assigned to
and assumed by the Mercantile Safe
Deposit Company upon its organiza-
ton. In that statement think he errs,
because the lease now In existence is
dated 1888. Perhaps there was a prior
lease and probably 1t was as one sided
in 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 society to
subscribe for this stock in the new cor
poration, the Mercantile Safe
Company; that others did not take it
promptly, and his father took most Of
1t and paid 100000 in cash to the
Mercantile Trust Company for its lease
and the remaining 100000 was paid to
the treasury of the Mercantile Safe
Deposit Company.
Right here let me ask. why was 1t
that 100000 In cash were paid to the
Mercantile Trust Company for the
lease of those safe deposit vaults UNI
less it was a one sided lease substan-
TALLY like the present one?' Why was
such a one sided lease made by this
Equitable Society to the Mercantile
Trust Company? Simply because Mr..
Henry B. Hyde dominated the Equit-
able society absolutely, and made q
jug handled lease with the Mercantile
Safe Deposit Company, in which he
had stock and could profit thereby.
Equitable Bore the Loss.
But why was this profitable lease
sold for 100000 in cash? Because the
Equitable society owned majority Of
the stock Of the Mercantile Trust Com
pany and would receive large part Of
the profits of this profitable lease
That was not profitable enough to
Mr.. Henry B. Hyde. He therefore
created the new organization and nam
ed it the Mercantile Safe Deposit Com
pany, got all the stock, and therefore
got all the profits and the society suf-
fered all the loss.
'4sThis juggling with facts and fig
ures, with the Mercantile Trust Com
pany constantly In evidence as con-
venient medium In those manipula-
tons, shows how the results set forth
in the Hendricks, report were accom-
plished.
tThe facts remains that since the
year 1876 to the present time Henry B.
Hyde and associates during his life
time! and since his death James II.
izing anywhere from $23,879.57 to $46.-
$500 a year, all at the loss Of the
Equitable Society. thru the Mercantile
Safe Deposit Company. Since the
year 1877 they have realized $46S, 2S5.26
thru the Security Safe Deposit Com
pany, all at the expense of the So
ciety; and from the time the lease was
made with the Missouri Safe Deposit
Company in 1888, the society has only
received $4,000 rent, while these same
people have received about 100000 a
year for the stock Of the safe deposit
company has been paying 10 per cent
on 100000.
This is one Of the ways by which
Henry b. Hyde became multi mill
ionaire.
Younger Hyde an Apt Son.
"This is one of the means by which
James n. Hyde has been making
money out Of the society since his ia
Tiers death, and Mr.. James H. Hyde
was quite an apt son, for when the
question of the increase of the capital
stock Of the Equitable Trust Company
from 100000 to s1,o00,O00 came up,
James II. Hyde, as chairman of the
executive and finance committees of
the society. thought it was unWise for
the society to take its share Of that
allotment but II was a wise thing for
him to take his own share and q large