New-York tribune., 1905-06-22
THE DETAILS OF THE REPORT.
DIRECTORS rs OFFICERS OF SUBSfDIARF TRUST
CONPANIES RE1PED GAINS WHILE SOCIETY LOST
Profits cf Syndicate Should Be Returned Big Fees for Laoyers
Surplus Belongs to Pohcyhodes

first 500 go to the Equitable Society the next s18
income exceeds SIS e5 per s4nam The E EauabIe go
eey gets half the surplus s,o until ope.half ali @ OF spen
the rights OF the Equitable society cease, and the
tepant man gets all the remainder -.
ceive is $4,000 in any cne year. and when ii re-
ali PRe lease ee
II @ eas each at at fno the option OF Rs
5 lss} and then en- for renewal Of o years from rom
continue it in force until January l. 5ose It was
@ ad me Sf f fSSy Bo4fdwe by saT B.
It seems 5 that on or before Noyember 1898 an
Deposit Company was organized under the laws
Of the State of chusetts which succeeded to
and that the Equitable society had CONSTRUCTED
November s. iSsS the society entered into a new
lease of the basement and ground floor of the
BY the Equitable safe Deposit "i5s Company The
basement to the space occupied under the old lease,
without receiving apparently asking any add-
cuted the part Of the society by james W Alex
ander, president, and William Alexander. vice-pres
Again on December 20 1904 the society by a
accommodatlons to the rooms and space ft occupied
by the lessee without any additional rent
on the part of the society by James w Alexander
No one would anticipate that such an arrange.
ne nent would prove profitable to the society. and
ent ment furnished US by the officers OF the society,
post copa3y Gl fen and e Rs Egs6e SAFE De
Company its successor, from the year 1875 TO the
rms statement contains no items OF expenditure
prior TO January 1891 but the expenditures and
terati2ns and additions in and for the Security
Guiding Nay Is s Was TG ss iat qse @ vepy to and e n
Tbe tsa safs the @ Gent Teosyed during that period
70 26 the same as the Equitable Society and the
1s sum OF $lS 200 year since January J.
Ee While the Equitable Society has paid out mans
ments in these vaults. safes places of deposit
more m rnan II IN has received and has also incurred
Of ughandied lease It is not MTh s1nrftin Ih's sort sort
The real estate pays the Society eny s 'het pe
f6 G6nt On the whole building while the stock Of
ers Is per cent on its capitalization OF s2OO000
THE MISSOURI SAFE DEPOSIT COMPANY
The The late Henry B: Hyde, who by this time had
f. become firm believer and expert in safe de-
post st business eonclnded he could improve on the
and friends and to the loss of the society there
lore Pri6r & 70 the nlnt6 day of November 1855 he
building in the city Of St oda L. RaroRh5e Mo an and 9Ge 6T
named it The Missouri safe Depost rdt 9ta1e So
pahy, and on the ninth day of November 1855
this Corporation This lease was No axecnad Ease m
James w Alexander, president and William Alex
BY this lease The Missouri Safe Deposit Company
the oe 6s ace dg pays M at 1 @ in
Society the next $4,000 goes 10 the safe Ganos9
aPd + Of fae 9c e.aes re
Society and one-half 70 the safe deposit company
to $4,000. which is the maximum rent which the
that to the safe deposit eompanS m Excess M aPobe f e
undenstood that the society receives nothing under
dos eopan has ua @ fer eer he anp safe
aboye all expenses while the society Keeps up ali
Thereafter and on peeem6er Pee ds 20 1891 the Equitable
additional rooms without any additional rent
Under this lease the society received in rents
79R fS of nTaa whfR ere
magnificent of 500 n year. from 1895 to
reason why the rent was Jumped T. from from
these S 10 geemen @ e am oppofnnIP POSSIBLY 81 to give
superficial inquiry, to say that the rent was in
From 1886 to 1904. INCLUSIVE, the society received
the total rental of g 800. while from February
account of alterations. additions, repairs etc
fSF he an OF 4fcfa S hd i safe n
thereto during the whole term of the lease, the
janitors. watchmen. elevators and cleaning. The
amount expended BY the society oo on these leased
pear. The society has realized only l.85 per cent
the investment While the tenant had its prsmses
practically free. and received very large prof
stock of the Missouri Safe Deposit Company was
sold to the society in the year 1902.
The leases by the Equitable society these three
I c,tsih a ,potPsions Win refetenG he ~ iLey
ton IN case IF disaereeneuf between the 1tfas
as 10 the expenditures OF the lessee Three arbi-
traitors to be chosen, one by the lessee one by
the lessor and the third by the chosen. and
the decision of such iFbitratOrs SHALL he
conclusive upon the parties When il is clearly
understood that the gentlemen who caused the SO
ciety TO make these long leases great loss
society the same men who reap he profits
from The leases it is manifest that if ever arbI-
trat~e question should come up as matter OF
form. the society's interests would be looked
after. That all that need be said
These leases are ali sided unfair and unjust
TO the society dSr thss hss 1T is prastc9 s in to
which may be made: for is difficult TO he
lieye that trustees of sacred trust would make
ouch contracts against the welfare OF the society
and in their interests. In order that the
polieyholders may read for themselves if they de-
sire, and the kind OF leases which the society
has beer making. copies Of them appended 70
and made part of this report.
But who the gentlemen who realized these
profits? The Missouri Safe Deposit Company was
capitalized 10000 consisting of s0o0 shares OF
500 each and the following is list Of the original