The Providence news. (Providence [R.I.]) 1891-1906, 1905-06-22

% with the elimination or the stock 10
8 rate with its dividends is in my opin
ees:<asssA9.%ss.3.:. %. e~:s:-:.:s:<:s:.:@:
This report. with n copy OF the evil
dcnco taken on this investigation. will be
transmitted 10 the attorney general for
such action thereon as he may deem
proper
or the subject OF proposerd legislation
he says: 81 think it important that the
next legislature should take into con-
sideration the question OF the investment
OF the funds OF life insurance companies
and establish a standard OF investment.
''As 10 Just how far or 10 what extent
they should be restricted In their invest
mcnts | am not prepared TO OFFER an opin-
ion at this time.
There can be no question. however,
OF the wisdom OF prohibiting the invest
ment OF life insurance companies I'm sub
s!diary moneyed and business corpora
tions controlled by life companies which
occasion the carrying OF large balances
for the benefit OF these companies and for
the stockholders, who are largely asso-
ciated I'm the management OF the society.
"The suggestion that these large bal
ances were carried for the purpose os
enabling the society 10 avail itself OF the
opportunity 10 purchase securities at
low pr!cs IS not sustained. from the fact
tnat later the balances carried during the
year 1905 and 1904 when securities could
have been purchased at a much lower
levt. or the money loaned at much higher
rates than they were. being paid by the
affiliated companies"
AT EXPENSE OF PARENT.
Turning them 10 the pew control under
which the society has passed. Mr. Hen
dricks, while not questioning the honesty
OF purpose OF the trust proposition ,ex-
presses the opinion that the only thing
that will restore confidence and benefit
10 the company would be the elimination
OF the stock control land what / deem
Of equal import, the elimination OF Wall
street control"
A surprising feature OF the presentment
is that Mr. Hendricks goes back TO the
organization OF the Mercantile Safe De-
Do sic company in 1876 by Henry II. Hyde,
founder OF the society and declares that
that company. which leases It's offices and
vault rooms from the Equitable Life AS
surance society, does not pay sufficiently
and profits enormously at the expense OF
the parent company. paying 20 per cent
dividends. The safe deposit lease has 80
years TO run
The organization OF the Equitable Safe
Deposit company OF Boston by Henry b.
Hyde and it's lease of space In the Equit-
able building Boston, is criticised and
tho lease declared TO be Improbable TO
the parent society.
Under tn. heading. Missouri Safe De-
post company" the report says:
THE late Henry p. Hyde who by this
time had become a firm believer and an
expert In safe deposit business concluded
he could improve on the Boston lease by
$4,000 a year in favor OF himself and his
friends, and 10 the loss on the society"
KEPT LIONS SHARE.
The stock OF the Missouri Safe Deposit
company OF ST. Louis consisted of 1000
shares. par value 800 each. OF these l1i5
were In the name OF Louis Fitzgerald,
and Mr. Hendricks says at this point;
1--WE have sent for Mr.. Fitzgerald TO
tell US who the real owner or this stock
was. but he has not appeared. II may
be assumed that most OF IL was owned by
Henry b. Hyde himself. for while he
favored his intimate friends on the In
side at the expense or the society he
kept the lion share himself"
In 1902. when II was desired 10 sell the
81. Louis building the purchaser object
was bought by the Equitable Life al $40
per share James II. Hyde, the owner OF
iTO shares, receiving $352,50o in cash for
his share.
A loss 10 the Equitable Life resulted
in tho consolidation OF the Western bank
OF New York with the National Bank
OF Commerce in New York. according
10 the report. or this Mr.. Hendricks
says:
"Mr Snyder was asked what the Equt-
able society really gained by the merger
and he answered. Nothing but promises
and prospects, which | conclude dd not
materialize."
The syndicate transactions OF James
IT. Hyde and associates are referred
90 as notorious" James w. Alexan-
der's name IS given in the list OF par
ticipants. and Il II shown that in va
rlous bond issues by Kuhn, Loeb a.
Co. Snyder e. Co. j. r. Morgan & Co.
and Brown Brothers. the syndicate was
represented IN the underwriting
The total profits Of the syndicate are
placed at s1S6iO7. OF which se3,73i each
went 10 James H. Hyde and James w
Alexander
Extravagance and waste I'm salaries are
severely condemned The increase In this
respect In the executive offices was from
tssn.ioo -in-la00- ia Ssi3 e0o In 1904. II was
found that President Alexanders salary
~as advanced from $4,000 per annum 10
10000 without his request IN order that
James II. Hydes salary might be In
creased to the same h9ure
Chauncey NJ Depew the report shows.
paid $4,000 year as attorney: David
p Hill received s5ooo = year, and Elihu