The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-06-08
new SCANDAL IN EQUITABLE
HINTED AT IN YESTERDAYS HOT
MEETING OF THE DIRECTORS.

Germ an institution over WhiCh Hen.
bricks Has No ContrOi--I.incoln.
Hughitt and Low Resign-( tina ries
stewart Smith Flares Up--The Execu.
tive Committee TO He Reorssni/e ed.
That new improperly In the Equitable
scandal, involving something like SO 900 900.
viii shortly be disclosed by State Superin-
,encient of Insurance Francis Hendricks
was stated yesterday by one Of the society's
directors at the adjourned meeting Of the
hoard called to elect a chairman OF the
hoard and to reorganize the socety's execu-
tye committee. The statement startled
the board.
President James W. Alexander and Vice
President James Hazen Hyde are concerned
in the new scandal Supt Hendricks. It
was said. had ruin across evidences OF
Questionable transactions in his investiga-
ton Of tho Equitables books and had traced
trem TO the doors Of an institution over
vii, n he had no right Of supervision.
i was for this reason, IL was said. that
sup, kilburn of the State Banking De-
yar.mcnt had been called in. Nothing
defnite was learned Of the character Of the
transaction under investigation.
Yesterdays meeting Of tho board was
scarcely less lively than the stormy one Of
lest Friday. There were hot personal en-
counters again and three more members
of the board resigned. They are Robert T.
Lincoln. Joseph T. Low and Marvin Hughitt.
This makes thirteen that have withdrawn
from the directorate, the others being
Edward n. Hartman, Henry C. Frick.
Cornelius n Bliss, Melville f. Ingalls,. A. j.
Cessatt, Jacob H. Sohin. r. Jefferson
Coolidge, John A. Stewart. d, O. Mills and
John Sloane.
Mr.. Low did not get out until he had
Introduced two resolutions calling on Mr..
Alexander and Mr.. Hyde TO retire from
Office In each instance President Alex
ander. a. the presiding officer. surrendered
the chair to Senator Chauncey NJ. Depew,
who ruled that the motion was out Of order
These resolutions called out a storm OF bit
ter remarks by directors on both the Hyde
and Alexander sides and for time it looked
as though the meeting was going to re-
solve itself into proceeding as thoroughly
noisy as last Fridays.
Charles S. Smith jumped up and ad-
mtted that he had been q dummy" They
had all been dummies, he said. He had
attended meetings OF the board for years
and had never had single important thing
come before him for his consideration
He was getting Disguised.
well. why don't you resign then?' one
OF the other directors suggested.
"No. no, no. shouted Mr.. Smith. Il will
mot resign. While may be dummy, don't
propose to run under fire and get shot in
the back. l propose to stay here in this
board as thorn in the side Of some of you
gentlemen who wou d like to see me get out e"
The chief purpose for which the directors
were called together was not accomplished.
Not only was there no vote on a candidate
TOR the new Office OF chairman Of the board
but Mr.. Hyde and his supporters were not
able even to suggest the name Of man
who would accept the place il it we're offered
70 him. A new committee made up OF
Senator Chauncey M. Depew. David H.
Moffatt. Louis Fitzgerald August Belmont
and j. B. Forgan was appointed to select
q candidate and present his name at an
adjourned meeting to be held next Friday.
Mr.. Forgan is the only member Of the origi-
nal nominating committee who is to serve
on the new one. II the committee fails to
present on Friday a name to the board, the
resolution adopted yesterday provides that
nominations shall be invited from individual
directors. The new board is Hyde COM
mittee all the way through. 1t will serve.
Definite action was. however, taken at the
meeting looking toward the reorganization
Of the executive committee. In the future
it is to be composed Of the president. first
vice-president and comptroller as ex-
officio members and four directors who are
not officers. As made up at present the
committee is composed OF twelve members.
including Second vioe-President Gage F..
Tarbell and Presidents George T..
Wilson and W. H. Mcintyre.
Tho resolution passed yesterday means
that Iarbell. Wilson and Mcintyre will be
dropped along with two other committee
men to he designated later.
further resolution was adopted provid-
Ing that the salaries of the society's execr-
tive officers should tie reduced to corre-
spond with those paid by other insurance
tanking and trust corporations, the exact
amounts to he determined upon later. A
general reduction of the running expenses
OF the society also was recommended.
The salary paid to President Alexander
of the Equitable corresponds pretty closely
to the salaries paid to the executive heads
OF the other big Insurance companies, but
the other officers OF the Equitable draw
salaries considered to be excessive. Mr..
'Hue' LOT ihsIanCe, 8ets $lOO'uVV year rs
first vice-president Of the Equitable. while
the vice presidents OF other companies get
on the average about $4,000.
1t was further resolved by the board
that no advances to agents or other agency
expenditures should be made without the
approval Of the executive committee;
also, that all investments made by the
executive COMMITTEES should in the future
he made subje to the approval OF the board.
and that the amounts Of deposits uniformly
carried in banks and trust companies
should be reduced to working balances
and the residue invested In improved Sc
curities. The board voted further that
In the future all questions Of real estate
transactions should be submitted to it by
the executive committee.
The action taken by the board vest er day
was regarded in Wall Street as step to-
ward reform. All Of the resolutions had
Mr.. Hyde's support. They could not have
been passed II they hadn't, for he was in
complete control Of the meeting. The
action in regard to the agency advances
was regarded as q direct slap by Hyde