New-York tribune., 1905-07-03
HYDE LETTER ANALlZED-
Called 4 lIISST1TENENT.
CONGRESSMAN DriscoH Replies to
Sons Defence of Equitable Founder.

ConDressman DriscoH Replies to
Sons Defence of Equitable Founder.
c,.rao,,so Jplv o-Before starting for the
West TO Join Secretary Taft's party to the
PbilinDines Congressman NJ e Driscoi. OF the
29th New-York District. who was the inNesu-
eating attorney for Superintendent of Insurance
Hendricks in the Equitable investigation mace
a statement on the letter OF James n hSue'
cont to the hoard OF directors of the Equitable
Life Assurance Society some days ago In MS
statement Congressman Driscoll said
IIyde's protest against the reflections on his his
were based on faclS anu @ @colIiO 7C,I,1 INV
would appeal very strongly 70 human sS S'ntig' iin,
his defence in the form Of special pleading Ihg ~
verifies and strengthens tne cliIse T'n,,th he
convcts his father Of Tsapind Fl rge F qst Pr9'S which
was his solemn obligation to protect It 4 Is true. M
James II. Hyde states mat the seGess S in the
main is due his efforts. and II IS also tTe rhtc
afiliated companies by which he and his friends
continued TO milk the society history, Of the Ner
Camille Trust ComP9ny s ind ib53 9e tb 7u6e s
ciety about the year 1872 purchased controlIing
interest in the Mercantile LTust f 500 oa0 To-
81 COO 600 and in 1915 increased it from $leOooo9
aIways owned a controlling interest in the Mercan-
tile Trust Company ne dur1nef Tst ' Comppny
obot tbe wear 1915 was safe deposit business but
IN @ snr and stocEbolders ii was determined that the
Mercantile Trust Company sell out tne s'tiT uePoSdt ~
company business another company 10 90 so
the Mercantile safe Deposit Company was organ
lease criticised then in existence and %'ss
assigned to and assumed by Ihe the Me- Mercah'ue 0a'e
IN that think aS sTFI T ssS PThap 9ps
there was prior lease and probably it was as
sided in favor of the Mercantile Trust Company
safe Deposit Company. He says the books We're
Gpny AL and the Equitable Society subscribe for
this in the new corporation me Mrctihtli.e
srS SeIS PrdR@rty SRE1f and his father Of and
pany for It's lease of the safe deposit companys
the treasury of the Mercantile Safe Deposit Com
pany
MADE A ONE-sIDED LEASE
Plight here lot me ask why was it that 100000
In cash was paid to the Mercantile Trust Company
for the lease Of those nf Hep0s ease sbta
TALLY like the present one Why was such one
sided lease made by the Equitable society to the
Mercantile Trust Company? simply because Hen
ry b. Hyde dominated the Equitable society ao- a1
Mercantile Safe Deposit Company, in which he had
proaSc 5iSGk end SSse sod oTf" for aSh
the Equitable society owned a majority Of the the
indirectly receive large part OF the profits OF this
pa Henrv IS Hye S therefora created
the new organization and named it the Mercantile
therefore got all the proaes and the society suf-
Again he saws that h.s father subsequently Of
fered this stock TO the Equitable society at cost to
of the society and It's legal advisers had looked
SaretIy INTO sne %eHe m b a ana ~ "s Gste Gf
purchasing this stock. to continue the lease which
Think of this argument His father; as owne-
Of all or practically all the stock in the & MereaG-
able society. which his father absolutely dOmi-
bv his fnther declined this offer he has the nerve
to suggest that was fair dealing with the policy
Again he says his father took all the stock C25-
Boston which was the predecessor Of the Security
Safe Deposit Company. now in existence. at the
society, and that the Equitable society declined 10
take the stock ASaF R Hfn6E b Hyae as Pres
It unwise 70 buy THIS stock but very wise and
count
Aqain he states. that the committee recommended
he rCorgantzed on a basis of capital Of S3cO.01O
vaults more attractive the society should rcn; the
bgiidng 2dJ9nHs bi,lS les own & ana devote portion
safe deposit company. Consider what this means,
an6e mH 6un m n oTer oRf % SEe s ssSes{ &
company which he owned. more space. and rented
year and the safe deposit company sjs o!e Si''
Again ne says his father organized the Security
Safe DeposiI 1ompany OF Foston. and paid the
Eqg@tahle @ Trust COMPANY. costing $500 the sum
and his associates, and the greater part by himself
WHERE DID HE GET THE MONEY!
Let me ask right here where his father got those,
large amounts of money. / told hV an an
eInrloye of the society that In 1875 his salary was
&,5C0 year, Did his salary IN the FouftahIa 80.
ciety provide him with those large sums on ,yhich
he took those great risks which he feared wCuld
be Improbable for the society to takce
Again. the MercontIle Trust Company comes i'm
II WIS controlled by the Equitable Society and
therefore By Mr. Hyde and was a very useful
Mr. Hyde. "" %
IIe says that the Mercantile Trust Comnanv n,
ISS owned the building in st Louis known as the
Equitable Building.
How did v come 70 own 1t? heard. but am not
sure or this tact that the Equitable society had
mortgage on IT,. The mortgage foreciosed ard
the Mercantile Trust Company Of tbe
society bid II in. But when the Mercantile Trust
Company sold this property - tar EGuitabIe
society II reserved the right to lease the safe
deposit vaults in the said building should such
vaults oe built The vaults built. Who built
them: then The Equitable society. With whose money?
ihe policyhoidef. For what purpose In order
that a lease might be made to a new safe deposff
company OF which Henry B. Hyde owned prac-
tlcal!y all the stock and received all the profits ar
loss 70 the society. because that lease provides
that the society, after putting In all the new vaults
Paying an the expenses of every kn6.in taking care
OF the SaIe deposit vaults. cleaning sweeping light
ms ncaNuss Watching, should 4 he