The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-06-06
HENDRICKS TO FIGHT HYDE.
FILL DEMAND HIS RETIREMENT
FROM THE EQUITABLE
And Ask tho AttOrncy.General to Begin
suit II He VIII Not Quit Voluntarily
--ISchiH Resigns and Pitches Into
Alexander ID Out, Toe.

State Superintendent OF Insurance Fran
cis Hendricks in his report on the Equitable
scandal will find against First Vioe-Presi-
dent James Hazen Hyde on most Of the
points brought out in the Prick report and
will demand that he retire as an officer OF
the society. This statement was made
Yesterday without qualification by a man
who is in place to know. II Mr.. Hyde
should refuse to retire, az 1t Is said that he
will the State Superintendent will recon-
mend TO the Attorney-General that he
proceed against him In the courts.
On the same authority 1t can he said that
the State Superintendent will find President
Alexander guilty OF incompetency and
negligence, but whether his resignation
will be demanded could not be learned.
Mr. Hendricks has completed his report
save for little new material that has been
brought out in the Prick report against the
chief executive officers Of the society
The situation in the society Is fast as
sunling most serious proportions Yester-
day two more Of the directors, Jacob II.
SchT and T. jefferson Coolidge Of Boston
sen In their designations from the govern
Ing board OF the society, and others, in
GLIDING Melville E. ingalls,, d. O. Mills John
A. Stewart, A. j. Cassatt and Brayton Ives.
minated that they might get out at Wednes-
days meeting
Besides this, large numbers Of the agency
force are deserving. From the West comes
the report that almost the entire agency
force in lowe, Montana, Michigan and
Wisconsin has gone over to another COM
pany. Mr.. Tarbell, who Is in charge Of the
agency department, has sent hurry call
to Elmer Dwiggins, general agent OF the
society In Iowa, to come on to this city to
confer on the situation.
Mr.. Schiff's resignation came az a sur
Prise in Equitable circles. He announced
it late yesterday afternoon by making
public letter addressed to President James
". Alexander, in which he declared that
In his opinion there was no longer any OPP
portunity for independent action in the
board. Here is the letter:
JUNE 5, 1905
DEAR SIR: In view of the proceedings
at the meeting OF the board of directors OF
the Equitable Life Assurance Society held
last Friday, feel const strained, after mature
reflection, to tender my resignation as a di-
rector Of the society to take effect at once.
Throughout the recent controversy l
have s.udiously refrained from any action
which might add to the complications with
which the society has been struggling. /
have even remained silent in the face OF
many malicious and baseless statements
regarding the business transactions between
my firm and the society which have been dis
ecrniDated through your agents, notwith-
standing your failure to publicly disavow
and deny these statements instead Of set d.
ing me-, as you have recently done private
messages expressive Of regret for the in
discreet and overzealous actions of your
friends.
The meeting OF the directors last Friday
offered, it seemed to me. supreme oppor-
tuaity for rescuing the society from the
evil situation into which it had been cast
by factionaI disputes and by the conduct
OF its officers. If you and Mr., Hyde had
ben able at this critical moment to rise
to the occasion and had supported my
notion for the appointment OF a committee
OF directors consisting Of men of national
7 n.a.-. for high character and indie
pendent judgment, with authority to select
a chairman Of the board with plenary
power. a just and effective reorganization
OF the management Of the society and the
restoration Of public confidence might
have been possible, but you and Mr.. Hyde
permitted the psychological moment to
slip by and recognized the mistake only
after the disntegration of the board OF
directors had begun and 1t was too late to
repair the damage which had been done.
In view Of the present situation it does
not seem likely that there will be oppor-
tuny for independent action N the board
and | have reluctantly come to the con-
clusion that can no longer be OF service
to the society by remaining upon the board
OF directors, OF which have been a member
for twelve years. Very truly yours,
JACOB H. SCHIFF.'
The resolution referred to by Mr.. Schin
Is not having been supported by President
Alexander and Mr.. Hyde was the one In
which Mr. Schiff named d. o. Mills. John
A Stewart, A. j. Cassatt, T. Jefferson
Coolidge August Belmont, j. b. Forgan
and Robert T. Lincoln committee to select
the new chairman OF the board. An amend
ment to Mr.. Schif's resolution was intro
duced by Alvin ". Krech to the effect that
the board itself should select the man for
the place and was carried. Subsequently
the committee as named at first by Mr..
schfI was authorized by the board to act,
but most of the members say that they
regard the appointment Of the committee
as irregular, as many Of the directors had
retired from the meeting and have not yet
given their consent to act.
Mr. Schif, it was said, feel, that the
selection Of the new chairman will be made
at Wednesdays meeting at the dictation
OF Mr. Hyde Not only Is he angry that his
original resolution was turned down and
bctch finally made Of the appointment
q the committee, but he is much more
angry at the things which Mr.. Hyde said
about him at the meeting in connection
with bis charge that Hartman. Frick, Schih
and others were oonspiring to deprive him
OF his stock control In their own interests.
Another explanation was offered, though.
for Mr. Schiif's resignation. The state
nent was made that he had received in
formation from the State Department
OF Insurance that Supt. Hendricks was
surely going to find against him
for having profted through the sale Of
securities by the firm Of Kuhn, Loeb Co.
to the Equitable, and that he decided to take
time by the forelock and get out OF his own
accord
His action will not. however, prevent the
State Superintendent from instructing the
ACKNOWLEDGEMENT to bring suit against