Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1905-07-07
New York State Superintendent of Insur-
anCe Francis Hendricks Points Out
Astounding Irregularities.
Says That Officials Who Have PrOfited by Reason
of Their Positions Should Pay Back to
the Society Large Sums.
The Indifference of High Financers Sacred Trusts, Dis
closed In This Remarkable Report, Distinct
Shock to the Investment Public

James H Hyde as well as his father.
the late Henry Il. Hyde. founder of the
Equitable Life Assurance society, are
severely arraigned in tie report Of
Francis Hendricks, New York state su-
pcrintendent of Insurance, on the con-
dition Of tie Equitable society. 4 less
harsh criticism Of James W. Alexander
and an exoneration of Gage L. Tarbell
are included in the report. Henry Il.
Hyde's business operations are plainly
discussed, and his methods are brand
ed as outra geOus. Interesting revela-
tons are made concerning profits ac-
quired from syndicate transactions.
Dealing with the question OF invest
mcnt OF life Insurance funds, Mr.. Hen
bricks recommends complete mutual
cation" and elimination OF stock con-
troll. Only in that way, he says, eau
the cancer be cured. The report in
part follows:
1.-THE late Henry Il. Hyde, father of
James II. Hyde, was its founder and
leading personality in its creation and
growth until the time OF his death,
which occurred in May, 1899. Early in
the history of the society he secured
stantIy held and transmitted by deed
of trust TO his son. BY reason of his
stock control and his commanding abil-
ity he absolutely dominated the society
in all directions.
Under his direction and manage
ment the society grew In public conf
dence, and before his death il became
one OF the largest and most extensive
insurance companies in the world. AS
business Increased and money began to
flow into the treasury and the real or
apparent surplus began to grow he con-
ceived the idea Of constructing or buy
ing office buildings in the larger cities
In this country and also in Europe.
Mercantile Safe Deposit Company.
1.-The present home office building at
120 Broadway, New York city, was the
first of these, and IT occurred to Mr..
Hyde that its lower floors would DE a
convenient and desirable place for safe
deposit vaults and that such business
would be profitable. He therefore
some time prior to Jan. /, 1879, organ
lied a corporation known as the Mer
camille safe Deposit company, and on
ciety leased TO this Mercantile Safe De-
posit company rooms and accommoda-
tons in the Equitable Life building.
The lease was for twenty five years.
from Jan. /. 1915, until Jan. 1. 1901,
with the privilege to the lessee OF re-
newing il for twenty five years more
at the expiration of that period. The
annual rent reserved was as follows:
The first $4,000 received by the ten
ant as net rental for said vaults, safes.
places of deposit after the payment OF
all expenses went TO the landlord. the
second $4,000 went TO the tenant. and
the balance was equally divided be-
tween the landlord and the tenant.
'"This Tease was executed on the part
OF the society by II. b. Hyde, presi-
dent, and attested by Samuel Borrowe,
secretary. Thereafter and on Jan. 8.
1883, seventeen years before the eX-
piration of the lease above referred TO,
the society made 81 new lease with this
same tenant with no apparent reason,
unless it may be 10 extend the term
ana have another officer than Ii. Il.
Hyde execute il on the part of the SO
ciety. This second lease provides for
tlit SGllC rent anu NO4ilulhS SubSloh
TALLY the same conditions as the one
for which il was substituted. 1t was
TO terminate on Jan. l. 1901. but pro-
Vided for two renewals at the option Of
the lessee Of fifty years each. which
will continue il until the year 20O1. on
the same terms and conditions contain
ell in the old lease. This lease was
signed on the part OF the society by
James w Alexander. vice president,
and William Alexander. secretary.
Again and on Oct s, 1900. the So
ciety entered into another lease with
this same tenant. which was really
the exercise Of a renewal option con-
tanned in the former lease. The Safe
Deposit company is now in possession
under this last lease All these leases
provide that the lessor must make all
improvements. alterations and repairs
and must light heat, water, janitor,
watch and clean the premises and in
cur all expenses Tor care and main
tenance. Yet it receives only one-half