Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1905-06-22
Hendricks Reports on
Equitable Management.
Alexander and Hyde Severely
Arraigned-- -TaTbel Exonerated.
Trust TO Vote Hyde Stock Disapproved--.
State Legislation Needed.

IIun his investigation of the Equita bic
Life Assurance Society. WIS made pub
lie here and in New York. tonight. 1t is
described in the title as n preliminary
report" and it is decidedly critical of
the management of the siciety. as we'll
as of the new trust arrangement for
voting the stock agreed Upon by Messrs.
Thomas f. Ryan and the three trust tees
designated by him. In the conclusion of
his report he says:
No superficial measures will correct
the existing evils in this city. A cancer
cannot be cured by treating the symp-
toms. Complete naturalization with the
elimination of the stock to be paid for
4 price only commensurate with its
dividends is, in my opinion, the only
sure measure of relief.
This report with 4 copy of the ovi-
dence taken on this investigation will
be transmitted to the attorney general
for such action thereon Us nc may deem
proI err
OF the subject of proposed legislation
he says:
II think it important that the next
Legisla ture should take into cOnsidera
ton the question of the investment of
me ItfluS VI HE
ami establish n standard of investment.
Turning then to the new control UNI
der which the society has passed, Mr..
Hendricks. while nOt questioning the
honesty of purpose of the trust PROPOSE
tIor. expresses the opinion that the on
IL thing that will restor" confidence and
benefit to the company would be the
elimination Of the stock control, land
what | deem of equal import. the eli
lninntion of Wall Street control.
james w. Alexander, president, AMI
james II. Hyde, first vice president.
whose resign ltiOnS We're accepted, yes
tcrday, by Chairman Merton, are sev-
crely arraigncI in the report. Gage +.
Tarbell second vic" president, is tx
onerated. Mr.. Hendricks finding that
no substantial evidence appears in sup
port of the charges against him.
Mr. Hendricks says it is an open
question whether Pres. Alexander and
the officers and directors who partici-
pated with him in the transaction of
lanes Il. Hyde and associates" are
not disqualified under Section SO of the
insurance Law from hereafter holding
any oftic" in a life in 5ilrahce company.
The report charactrriHrS these transir-
tiors as unlawful. Mr.. Tarbelrs name
is not in the list of participants in thcs'
transactions.
The policyholders. however. the re-
mort $. is forth. are under great oDii-
cations t. Mr.. Alexander and the other
executive officers for demanding the
naturalization of the society and the
retirement of Mr. Hyde from its con-
troll.
\ surprising feature Of the present
meht is that Mr.. Hendricks goes back
to TIE organization "f the Mercantile
Safe Deposit Co. in 1876, by Henry T.
HYDE founder of the society. ana d"-
cliIeS that that company. when leases
its offices and vault rooms from me
Equitable Life Assurance Society, does
rot pay sufficiently and FRONTS fn"'-
lnouSly at the eXDenS2 OF the p'ir'h'
company, paying % per cent. diFidehd'
The safe deposit lease has SO years u
run.
Mr.. Hendricks devotcs considerable
space 10 n discussion and criticism %
Henry j. Hyde and the organization o.
the safe deposit and other subsidiary
companies.
The syndicate transactions OF Jaiiic!
H. HYDE and associates ar. referred U
as NOTORIOUS" James w. Alexander )
name is given in the list % participants
and it is shown that in various pohu -
sues by Kuhn. LOeo & Co, Speytr
ca. J. p. Morgan & CO.. and Brow
Bros. the syndicate was rcpresehieu II
the underwriting. The total prorts ="
the syndicate are placed 1T $lS5.lo'' .
which &C.. 49, each went to James II
HYDE and James w. Alexander All
other participant WAS VII. II. Mclh
tyre. fourth vice preside mt or us
Equitable. whose share WAS $l4.42o. ~
Of those who took part in these oe'''
incs the report says, should be com
PEELED to nay back the sums receive
by them.
."rhis is only very mild punishment
snys the report.
Mr.. Mc!n,yre, i'm testifying before III
stat, investigators, held that ne VII
lot Il member Of the Equitables exec
utivr or finance committee and there
for, was bIameless. On this Mr.. Hen
bricks comments as follows:
His comprehension as to the dutie
of a director toward his trust estat
is not surprising for he was reared
the society since the age of IA ana ui'
Henry y. Hyde"
Extravaganza and waste in saiarle
are severely condemned. The lhcreas
in this respect in tie executive ONE
was from $3.50. 100 in 1900. to $613GOo
1904. 1t was found that President AleN
ander's salary was advanced from 30
600 ner annum to 100000. without nj
request in order that James II. Hyde
salary might be increased to the siii'
figure. Chauncy NJ. Depew. the repo'
Shows. is paid $4,000 year as atlo'
ney, David l.. Hill received $4,000 a yea
and Eihu Root Qor 1905) $4,000 also
attorney.
of james II. Hyde's directOrates
various corporations. Mr.. Hendrlcf
expresses the opinion that he was p'
on these boards for the reason that
was the financial head of a great IL
surance corporation whose assets WEI
50 large and whose ready money WI