The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-07-03
NOT IN BUSINESS
FOR HIS HEALTH
The Elder Hyde Knew a Good Thing
When He Saw II.
HIGH FINANCE YEARS AGO
FACTS UNCOVERED BY HEN
BRICKS REPORT.

Syracuse. y. Y, July Before Ieav-
ing for the west to join Secretary Taft's
party to the Philippines, Congressman
Driscoll, who was the investigating at
torney for superintendent of Insurance
Hendricks in. the Equitable investiga-
ton, made a statement on the letter of
James Hyde to the board of directors
several days ago. in which he says:
"Hyde's protest against the rehec-
tiOns on his fathers memory is quite
natural and if his arguments were
based on facts and common sense II
would appeal very strongly to human
sympathy and even prejudice. but &C
cOrding to my opinion his defense IN
the form of special pleading only Veri-
fies and strengthens the charges pre-
ferred in the Hendricks report. out
of his own mouth he cOnVicts his father
of reaping large profits during many
years at the expense of the trust which
il was his solemn obligation to pro-
tect. His father inausurated the sys-
tenn of subsidiary or affiliated COM
panies by which he and his friends con-
tinued to milk the society
Capital Stock Increased.
Congressman DriscoH, speaking Of
the Mercantile Trust company and the
Mercantile Safe Deposit company,
quotes Mr.. Hyde as saying the society,
in 1872, purchase a controlling interest
in the Mercantile Trust company and
Increased its capital stock from $780,
Gee to 8 600 600.
A part of the business of the Mer-
camille Trust company in about the
year 1873 was safe deposit business, but
in that year il was determined that the
Mercantile Trust company sell out the
safe deposit business to another COM
pany. The Mercantile Safe Deposit
company was organized with stock
OF $500 600
He says" continues Mr.. DTiscOll,
that others did not take the stock
Very promptly and that his father took
most of it and paid 100000 in cash to
the Mercantile Trust company for its
lease of the Safe Deposit company
vaults, and the remaining 100000 was
paid into the treasury of the Mercan-
tile Safe Deposit company.
Dominated by Hyde.
why was it that 5000. GOO in cash was
paid to the Mercantile Trust company
for the lease of those vaults unless it
was a one-sidede lease like the present
one? Why was such a One-Sided lease
made by the Equitable to the Mercan-
tile Trust company Simply because
Mr.. Henry r. HYDE dominated the
jug-handled lease with the Mercantile
Safe Deposit company in which he
had stock and could profit thereby. But
why was this profitable lease sold for
$500. 600 in CaSh2 Because the Equitable
society owned a majority of the stock
OF the Mercantile Trust company and
would indirectly receive large part
OF the profits of this lease. That was
not profitable enough to Henry Is.
Hyde. He therefore created the new
organization and named it the Mer-
camille safe Deposit company, got all
the stock. and therefore all the profits,
and the society suffered all the loss.
offer Was Declined.
F. Again. he says that his father subse-
Quently offered this stock to the Equit-
able at cost to him and this offer was
declined and il was decided for the best
interests of the society instead of pur-
chasing this stock to continue the
lease, which is now criticised.
Think of this argument. His father.
as owner of all the stock in the Mer-
camille Safe Deposit company. offered
ii to the Equitable. which his father
a absolutely dominated, and because the
society declined this offer. he has the
nerve to suggest that that was fair
dealing with the pOliCy-hOldeTs.
Again, he states that the committee
recommended that the Equitable Safe
Deposit company should be reorgan-
lied ON a basis Of capital of $500 600. and
in order to make the safe deposit com
pany's vaults more attractive. the So
Ciety should rent the building adjOiu-
ing its own. and devote Il portion OF
the rented building to the accommoda-
ton of the safe Deposit company. Hen
~ p Hyde, as the Equitable society
rented another building i'm order to give
the Safe Deposit company. which he
owned. more space. and rented il for l0l
years or more. and out of the rents gave
the society only 800 a year and tho
Safe Deposit company $4,000 year.
Mercantile Trust Company.
again the Mercantile Trust company
comes in. He says that the Mercantil,
Trust company in 1884 owned the build
ing in St. Louis known as the Equita
BILE building. How did it come to owl
it? I heard. but am not sure of thi.
fact. that the Equitable society had {
mortgage on il. The mortgage Wa!
forecloSed and the Mercantile Trus
company. instead of the society. bid i
company sold this property TO the Equi
table il reserved the right to lease TIT
safe deposit vaults i'm said building
should such vaults be built They WeT
built. Who built them? The Equitable
BY whose money The pOlicy-hOiders
For what purpose? In order that
lease might be made to a new safe de
post company Of which Henry &. Hyd
owned practically all the stock.
Since 1876 to the present time Henri,
D
time and since his death, James II
Hyde and associates. have been Tealiz
ing anywhere from S23 100 TO S46 $50
year. all at a loss to the Equitable so
Giety through the Mercantile Safe De
gOsit company. Since the year 1877 the,
have realized Sass. 2S5 through the Sc
curity Safe Deposit company. all a
the expense OF the society. and from tn
time the lease was made with the Mis-
SOuri safe Deposit company i'm 1855. tn
society has received only IS 900 i'm rent
while the same people have receive,
about $4,000 a year. for the stock of tn
Safe Deposit company has been payin!
10 percent on 5000 600. This is one of tn
ways by which Henry 3. Hyde becam
a millionaire. This is one of the mean
by which James H. Hyde has bee
making money out Of the society sine
Ai~ fathers death"
ExCITES LITTLE COMMENT.
St Petersburg. July 3. 2,O7 a. nth
lon, Of Ea1r