New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-05-17
J. H. HYDE'S BOND DEALS,
PROFITS OF EQUITABLE.
Frick Committee Hears Story of
Syndicate Purchases.

.rhe syndicate. James II. Hyde and Associates
His testimony showed that, although the Equi-
cable had bought S13,000OOO of the bonds under
written by the syndicate it had bought not one
snond from James H. Hyde and Associates.
The Frick committee, with the testimony it
obtained from Mr.. Hyde and Superintendent
hendricks. with the evidence acquired in his in
vestigation satisfied, it was said, that
there had been no violation of Section Sc of the
Insurance law, which provides a penalty for
director Of an insurance company who, by un-
derRriting transactions or similar dealings,
makes 4 profit from his company. Mr.. Hyde or
any Of his associates need fear no prosecution
under that section, it was declared.
In to instances It was learned Mr.. Hyde
told the Investigators the Equitable itself had
been q member Of the Hyde and associates syn
dicate which only one of about one hun
dred underwriters for the various bond issues.
Jacob Z. Schin, Of Kuhn, Loeb & Co. a mem
Der Of the Equitables executive committee,
never was a member Of the Hyde syndicate or
Of any syndicate underwriting the bonds which
the Equitable purchased. it was said
HUGE TRANSACTIONS IN BONDS.
From the examination Of Mr. Hyde and the
transcripts ot records the committee has learned
that there were eight syndicates in which J. H
Hyde and associates were considered as only
one Of an average Of 10 underwriters. The
total amount Of bonds involved in the eight
transactions was about S300OG0000. The bonds
were all heavily oversubscribed. In no case was
there a single bond allotted TO any Of the un-
derRri,e-s. it was said. so whatever. securities
came into possession of the Equitable were pur-
chased in open market or acquired in regular
subscription fashion
An analysis Of the syndicate transactions, it
was learned. shows that for the $300C00,o0O of
bonds there came in subscriptions for about
S700.000000 If the syndicate underwriters in
Guiding the Hyde syndicate. had been compelled
10 take what bonds tie Equitable did not buy,
1fr Hydes proportion Of the $500 100000 would
have been about $4,000. according to the anal
ysis All the bonds, with one exception. are at
4 large premium. so that the Equitable has made
a profit Of about S2,0Oo,000 In view of these fig
ures, said a Wall Street man TO whom they were
submitted it was foolish to think the Equitables
executive committee decided 70 buy certain
bonds 10 relieve any underwriting syndicate.
In the eight underwritings in which the Hyde
syndicate figured. different people composed the
associates" In some We're three members; in
others five; in others twelve. In the first Jap
anese loan in May, 1903, of which there were
Two series, for the first James II. Hyde and As
sociates took S750,000; James ". Alexander,
$4,000 and Mr.. Hyde $25o.e00. In the second
series the Equitable Society took S25OO00, B1r.
Alexander $4,000 and Mr.. Hyde $150,000.
Gage E Tarbell It was said, was not in any Of
these undertakings although he and Mr.. Alex
ander were in the shiDbuiIding transactions.
WORK OF STOCKHOLDERS COMMITTEE
strong effort is being made, according to
persons in close touch with the Equitable situa-
tion, 70 get another chairman for the poHcyhold-
ers committee, Of which John D. Crimlnins is
the head. This, it was said, was being urged by
Frank Il. Platt counsel TO the committee, who
has taken the Alexander side in the Equitable
fight, while Mr.. Crimmins, at first in favor OF
naturalization preached by Mr Alexander.
has swung round TO the Hyde side This effort
10 change the makeup Of the committee was be-
ing strongly resisted by various members. ac-
cording 70 Of Mr. Hyde's friends, because
they felt that the chief objection really that
Mr. Crmrnins had not been plant enough TO suit
the purposes Of the Alexander people. Mr..
Crimmins himself refused 10 discuss the differ
ences which had arisen in the committee but he
said
The committee is not going to disband. It has
lot held q meeting Tor some days because it
has not had anything 10 DO. The committee
has accomplished every hing that ii set out 10
90 up TO now. But everything has now been
put in q state Of allegiance by the various court
proceedings that have tied up naturalization. As
soon as the suits are disposed OF our committee
VIII get together and name the TWO directors
10 i'll the vacancies on the board, which by an
agreement we were 10 be permitted TO do
The Frick committee IS going ahead with it's
work and We want TO see what it viii report
The Frick committee. I really think, is going
about its Investigation honestly.
SENATOR PLATTs COMMENTATOR.
In connection with Mr.. PIatt's campaign
against the present management Of the Equita-
BE. the following letter to the society from
his father, Senator Platt made public yes
terday. as illustrating the work Of the society:
I have just received your statement regard
ing my policies. Nos 43S, 472-3. issued by your
society fifteen years ago, on the free tontine
plan. have concluded to accept option No
as being the most advantageous 10 me at my
Present age. I find that this option entities me
10 credit Of over ~ per cent Of the total
amount OF premiums paid upon these policies
during fifteen years, thus enabling me to con-
tlnue these policies for $3.50 more insurance
Than the original amount without an increase
OF premium over the original premium paid.
This is certainly a most excellent and satisfac-
tory showing, and take great pleasure in COM
mendlng the Equitable and It's excellent man
agerent to those contemplat ting life insurance.
The suit OF Mrs. Ida i, Woods against the
Mercantile Trust Company an outgrOwth of
khipbuiding affairs. viii come up in Mlneola on
The first Monday in June. it is expected. This
suit involves between $500 900 and $500 900. II
IS likely to have a close bearing on the Equitable
situation, for Il is expected that both Mr.. Alex
ander and 8fr. Tarbell will be called Wit
nesses. The Hyde people expect that from their
testimony viii develop many facts Of advantage
70 Mr.. HYDE
Superintendent Hendricks did not come TO the
city yesterday. He Will be here to-day. il is
expected. 10 resume his investigation. but if he
cannot cor1a his counsel, Mr.. DriscOll, and
Deputy Superintendent Hunter win garry On the
examination Henry Rogers winthrop the
financial manager Of the Equitable will be
allied, II Is expected. to be followed by W. Il.
dcIntyre fourth vice-president
Mr. Hunter said yesterday that no charge
isd been made yet by either party which would