The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-06-04
THE FR|CK REPORT
IS TURNED DOWN
Prick, Bliss and Harri-
man Resign.
Though Resolutions is Adopted That
Within Three Months He Be Re-
quested to Divest Himself OF
Stock Control in The
Equitable.
(By the Associated Press.)


New York, June 2.-Disputed claims
of victory by the conflicting factions
in the Equitable Life Assurance So
ciety and an apparent REIMBURSEMENT
of interests, marked the meetings OF
the directors of the society held today
for the purpose of passing on the re-
port of the committee of seven OF
which II. c. Frick is the chairman
The effective results of the meeting,
of which official announcement was
made, were the practical rejection or
the report of the Prick committee, the
resignation of Messrs Frlck, Bliss ana
Hartman from the board of directors
and the passage of the resolutions en-
bodied i'm the following statement
given out by the directors after the
final adjournment:
1.-THE board adopted the following
resolutions:
Il. That chairman of the board
be created with plenary powers over
all departments and affairs of the So
ciety.
"2. That a nominating committee
consisting of j.. O. Mills, john a.
Stewart, A. J. Cassatt T. Jefferson
Coolidge, August Belmont, }. 3. FOR
gan and Robert r. Lincoln be request
ed to report, at a meeting of the board
to be called on Wednesday next, a
candidate for chairman.
SO. That at that meeting of the
board the executive committee be
re-organized, and that appropriate
amendments to the bylaws should be
prepared for submission to that meet
ing for the purpose of carrying out
these resolutions.
"a That James Hazcn Hyde be re-
uuested. within three months. to dlVeSt
himself of the control of the stock of
the society on such terms and condi-
tons as shall be sat sfactory to him
and to the board"
1t was declared by interests friendly
to Mr. Hyde that strong efforts would
be made at the meeting to defeat the
report of the Prick committee and
withhold it from publication, and that
President Alexander and Vice-Presi-
| dent Hyde, both opposed the adop-
| ton of the Frick committees report
The officers OF the society are
sharply criticised in the report, which
condemns the practice of individuals
| connected with the society entering
into underwriting syndicates where
| those syndicates had transactions with
| the society. The report also charges
| laxity and negligence of manage
ment, disapproves certain nigh sal
aries paid and declares that the en-
tire business of life insurance should
| be thoroughly re-organized in the in
terests of policy-holders. The report
| further sets forth that extravaganza
| has existed in practically every depart
ment of the society. Extravaganza in
| expense accounts also is condemned.
One feature of the report of far
reaching consequence is resolution
| that the Equitable abandon the Varl-
| Gus forms of preferred dividend-pay-
| ing policies and confine its attention TO
| the old forms of straight life 1usur-
ance.
The report. it has been ascertained,
recommended the removal of Presl-
dent Alexander, Vice President Hyde
and second President Tarbell.
After the final adjournment 1T was
| learned that the question of the adop-
| ton of the Frick report had not come
before the board. Perceiving that he
would unquestionably be outvoted on
a resolution to adopt the report Mr..
| Frick made no comment and after
rendering his resignation left the
| room.
| NV Hyde in his defense before the
| directors characterized the charges
against him as frivolous and ridicu-
| louS in the extreme. and as having
been overwhelming disproved. He in
sisted that there was not single act
| throughout his entire career with the
society which was the subject of SO
much unjust criticism on the part o.
| a fair-minded man, with the possible
exception Of the Cambon dinner, and
! that was a matter of honest difference
| of opinion as to business methods
Mr.. Hyde defended his participation
in svndicates. and insisted on his right
to the commissions he had received
Mr.. Schiff in his address to the
board declared that no evidence mad
been produced of any guilt or wrong
| doing on the part of the officers named
| i'm the Frick report.
M F.. ingalls, said on leaving the
board room:
cts all gone Hyde's way"
When Mr. Frick came out he SAID:
"Our report has been practically re-
| iected by the board and | have re-
signed in disgust. / shall have moth
ing further to do with Equitable az
| fal's
Mr. Hyde appeared to be satisfied
| and Mr. Tarbell seemed pleased.