New-York tribune., 1905-06-22
ATTORNEY GENERAL DECIDING On HIS ACTION.

The report of Superintendent Hendrieks oi
I,,s,,ro,,ca department his investi-
+,or o4 the Equitable Life Assurance SoeletS
Yas made public last night. Condemnihs ai-
,,os+ averv phase of the compGnys business
methods outside of the actual handAhs VI III
surance in the agency department Inc 49,,
recommends complete naturalization W." -.
elimination OF the stock, thereby pie
Wall Street control as the only cure iol 'ii0 ca
listing evils.
The report censures severeiy JAM -
FJvde and President Alexander Inc uiie
hoa,, were careless and perfunctory IN per
forming their duties. it says Ihe supeIl'i'
ont analyses causticaly the makeup oi 'he
oyecutive committee and the finance committee.
r1a practically exonerates Gage z. Tarhen heiu
of the agency department, of all the o"''i So
made against him.
Tho renort has been put into the hands OK
Attorney General Mayer for whatever actioh he
oee,os necessary. Superintendent Henol llcAs ue
c1arss that il is an open question Wie'''ei az
the officers and directors who tooi- p.
| ..+besa unlawful transactions"-the sSliuica's
| underwritings not disqualified from i'i'iis
anv nlace in life insurance company
At+ornev General Mayer. who was seen mere
| ,as+ rioh+ while he was his way 10 Washing
| ton said he had read the report ony parry -"N
| bod moi decided as TO any action he might te teNe
| 1I will digest the report to-day his dctioii
would necessarily be a civil PROCEDURE ~
| cover moneys unlawfully diverted 10 the use VI
| the officers and directors. II Ill the couiS u
his suits he accumulated evidence Oh cI'lliiii"'
| acts this evidence would be turned over 10 'He
| District Attorney, who would be asked 10 pros
ecute the criminals
| The report as Superintendent Hehdrichs ae''
| forth the results of his Investigations SHOWS
that a certain few of the officers ana direc ctorS
with their relatives. drew large salaries from
tha Fouffahle or its affiliated concerns, were
directors with fat fees in numberiess companies
| LARGELY influenced by the Equitable, and made
| 1arqe nro6ts from underwriting Wall street
| bond issues.
AS to these underwriters, including the suo-
sidiarv companies which occasionally were let
in" they should pay back TO the society win
interest all their profits, says superintendent
Hendricks They went into the syhalcates
| rather than let the Equitable itself suosefiOe
for the bond issues simply because they pre-
ferred to make those several profits themselves
he says
While in 1903 and 1904 the Equitable was buy
| ing stock OF the EQUITABLE Trust company al
from S64O TO $50 share. it was selling shares
70 individuals at about 500 share, says super
! ,.anaar+ Hendriczs In 1900 the Equitable
| bought stock of the MSTtditliS AiN"N NN'--h'
| at $500 a share and in 1904 and 1900 frequently
bought that stock at about sl.HO a snare ye'
II sold 100 shares in 1900 to George }. Gouiu
| AT $500 a share and the same day Jo shares
| TO I'll C. Frick at $3.50 share In 1901 ii
| sold 100 shares NJ. L. Schin. son or JacoI
II schiff. for $500 share and In l9O2 lO,
shares to F. H Hartman at $500 a share
! Those purchases and sales practically all were
| annroyed by the finance committee.
The report contains a scathing. merciless ar
| 1aignment of James Hazen Hyde. IL credits
| him with usurpng all power in the society
| graspfng huge salaries and raising the wages
| of his favorites drawing unitemiZed vouchers
| for his own personal expenses; introducing ana
| conducting the syndicate transactions uhu
| checked in his seizure of the Equi.abie py the
| demand for naturalization. The polcyhoiders
owe debt of gratitude TO President Alexander