New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-05-11
JAMES H. HYDE A WITNESS
PROBE FOR EQUITABLE.
Director Says Management Has
Been ETtraCdgdRt.

against President Alexander III IAS Ne"'
control Of the Equitable Life Assurance society
President Alexander himself had similar SEES
sion with Mr. Hendricks on Tuesday afternoon,
xbep lie was examined as 20 the management OF
the society and the part he look in it
Il, connection with the charges Of extraFa-
r.,,,ce and misnlanagement, there is on foot
among the directors a movement TO reduce the
salaries of the officers which are considered en-
ti~eIy out Of proportion TO their places. 1t was
said 6y one of the directors yesterday that
never in his memory had a director had any
him, 10 say about the officers salaries
various Equitable underwriting syndicates IN
The last three years have sold S1O0OO0O00 OF
securities to the Equitable. exclusive Of the
So. 100000 sold by Kuhn. Loeb & Co, it was
said Yesterday Mr.. Hyde il was said, was
elected second vice president in September, 1898.
and first vice-president IN May. 1899, about a
week after his fathers death. About July. 1888
being then about twenty-five years old, Mr.
HYDE had a. salary Of $4,000. This was raised
on February 2 1900. to $4,000 and about the
end Of 1902 to 100000. The present figure
Superintendent Hendricks began this investi-
CATION quietly enough on Tuesday, when he put
Mr. Alexander on the rack for most Of the after
noon. Mr. Alexander said at first yesterday
that he had had IAN interview" with Mr. Hen
bricks Later he declined entirely TO speak
about the examination saying that whatever
was told about It must come from Mr.. Hen
bricks. Mr.. Hendricks declined TO say anything
about It. and declared that he would say nothing
until the end of the week II he did then.
The inquiry yesterday was held in the direct
ors' room OF the Equitable at the end OF the cor
r1dor from Mr.. Hyde's Office Superintendent
Hendricks, his counsel VI. z. Driscoll, of SYRIA
cuse. and Assistant Superintendent Hunter were
present The witness was examined under oath.
Super
intendent Hendricks had many papers and docu-
Tnents, which contained notes from the prelim-
fnary examination Of the Equitables affairs con-
Quoted under Mr.. Hunter. When Mr.. Hyde and
his counsel. Samuel Untermyer, went into the
board room at IL a they were laden with
bundles OF papers and account books. Among
these papers were the eight checks in the James
II. Hyde and Associates affair, showing the
profits paid 10 Mr.. Alexander.
JAMES H. HYDE'S TESTIMONY.
The subjects on which Mr.. Hyde inter
rogated, according TO report, included the syndi-
cate dealings of James H Hyde and Associates.
his expense vouchers, his salaries as vice presi-
dent of the Mercantile Trust Company and the
Equitable Trust Company, and the charges that
he kept on the societys payroll personal ser
wants. Mr.. Hyde. it is believed, put in evidence
before Superintendent Hendricks the checks
writings and told Mr.. Hendricks that he and
President Alexander were jointly engaged In the
underwriting transactions, and that in one of
them Mr.. Alexander appeared as the principal
MI Hyde had to answer questions about the
Cambon dinner. whose expenses were paid by
the Equitable's advertising account. until he re-
turned his share of the cost. The examiners
went thoroughly into the question of the Hyde
stock and the dummy directors" whom Super
gnfa has
In President Alexander's examination Tues
Gay, It is understood, he asked about the
beginning Of his fight for naturalization" In
connection with that he asked to explain |
how he came TO send round the petition TO have :
Mr.. Hyde removed from the society, and on |
what grounds he wou!l base his belief that Mr. |
Hyde should 90. Superintendent Hendricks
wanted to know, it is understood when Mr.
Alexander learned first of the ''extravagance"
and misuse of funds" which have been charged
TO Mr.. Hyde If this came TO his knowledge |
only when he circulated the petition asking for
the Yice-presidents removal, how did he ex-
plain his ignorance OF the evils in the Equita- |
be? How, as president, could he account for |
the laXity Of management which would permit |
such conditions? Inquiry made about the |
checks he received, and the money he turned |
over TO the Equitable. as we'll as the money for
some OF the undertakings about which he said |
he knew nothing
Mr.. Tarbell, if he goes on the stand to-day |
II is expected, viii be asked about the handling
Of the agents, and how they came TO be so mt
Tersally for naturalization. Their commissions
on hrst year premiums viii be investigated
with the broad field Of Relating" The liberal
lily which the Equitable Is said 10 have dispIayed
IN its loans on renewal accounts TO agents viii
come in for explanation from Mr.. Tarbeu, it is |
IN This connection a former agent said yes
terday that some OF the Equita ble's agents at
on HF1a do arr4fr1.
notes Tor the nrst years premiums on policies
These they promised 10 hold until the end of
the year, when, if the assured declined to con-
tinue the policy. the company was bound by the
agents promises to return the notes. Mean
time the company had carried the policy for a
year for nothing, for, in most cases, in the
opinion Of the agent, these note bought policies
laDsed al the end Of the first year.
MOVE TO REDUCE THE BIG SALARIES.
One Of the directors Of the Equitable said to a
Tribune reporter yesterday that one of the
things that would certainly come up before the
next directors meeting was the general ex-
traVagance in management of the Equitable
The Equitable is either accommodating too big !
surplHs or II is charging too much for insur- |
80 lolcles' or DONG both Of these things"
SAD the director. From what I know of the |
investigations into the Equitable affairs there |
Ia Dee 40 incorporation Of funds only gen
eral extravaganza in management extrava- |
saice' 100, IN the lhings charged 10 TO adver-
using. As 10 official extrava gance Mr. A1evan-
DER and Mr.. Hyde receive a salary If S10o0oo
year each George L. TarbeI S6OO0D George IT I
NIson S-o.vo' and even q stenographer $1,000 J
Not that the Equitable by anv means stands |
alone among the insurance con1panjes Il, ,beea /
%NtraEagances- but the whole system in tbis !
se5aau oushl 10 be changed TO that of a con !
S'-IN awe paIhlig business Take the United |
states Trust Company. John A Stewart an ~ !
time he was president never received NOR t7a,7 |
S-''vW 4 year and, outside Of one or TWO banl,e
possibly no president Of a banking cororar1,- M
SeiNes more than this figure
Until the matter was called TO my a+tep,io, |
no has