The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1905-06-22
HYDE And
ALEXANDER
Vigorously Scored in the
Hendricks Report
NATURALIZATION A CURE
Ryan Plan OF Reorganization is
Also SsverIy Criticised by
Superintendent.
NATURALIZATION A CURE

ALBANY. y. A., June 22-Thc re
port " superintendent Francis Hen
bricks OF the state Insurance depart
mrnt % Governor Higgins upon his ln'
vcstigation Of the Equitable Life A.
surancc society was made public here
aud IN New York las night.
II II described 10 tho title as pre-
limlnnry report" and Il Is decidedly
critical OF the management OF the socl'
city a. we'll M N the now trust ar.
rnngcmcnt Tor voting the stock agreed
upon by Messrs. Thomas I. Ryan aud
the ihre" trustees de-, grated by him.
The report says in part:
NO superficial measures will correct
the existing calls In this society. A
cancer cannot he cured by treating the
symptoms. Complete naturalization
with tie elimination OF the stock. 90 be
paid FOR at a price only commensurate
with It's dividends. Is. In my opinion.
the only sure measure Of rollef.
This report. with a copy OF the evil
dcnce taken on this investigation. will
be transmitted 20 the attorney general
for such action thereon as be may
deem proper"
OF the subject OF proposed legisla-
ton he says:
Il think IL important that the next
legislature should take into consdera-
ton the question Of the investment OF
the funds OF life Insurance companies
and establish n standard OF invest
ment AS 10 Just how far or 10 what
extent they should be restricted in
their investments am not prepared TO
offer an opinion nj this time.
There can be no question, however.
OF the wisdom OF prohibiting the in
vestment OF life insurance companies
In subsidiary moneyed and business
corporations controlled by life compa-
MES which occasion the carrying Of
large balances for the benefit OF those
companies and for the stockholders
who are largely associated In the man
agement OF the society. The suggestion
that these large balances were carried
for the purpose of enabling the society
TO avail itself of the opportunity to
purchase securities at low price is
not sustained from the fact that large
balances We're carried during the
years 1903 and 1904, when securities
could have been purchased at much
lower level or the money loaned at
much higher rates than were being
paid by the affiliated companies"
Turning next to the new control I'M
der which the society has passed, Mr.
Hendricks, while not questioning the
honesty of purpose Of the trust under
Cleveland, Westinghouse and O'Brien.
expresses the opinion that the only
thing that will restore confidence and
benefit to the company would be the
of stock control land, what
deem of equal Importance. the elimi-
nation of Wall street control | early
came to the opinion and SO expressed
myself to the legislature in the depart
ment's annual report this year that all
the surplus nccretions of this society
beyond the per cent dividends on the
stock belong to the policy holders. The
charter provides that the business of
the society should be conducted on the
mutual plan and provides that each
policy holder shall be credited with an
equitable share of the surplus
Extravaganza and waste In salaries
are severely condemned in the report.
The increase In this respect In the ex-
ecutive offices was from $3.50, 100 in
1900 to S613,600 in 1904. 1t was found
that President Alexander's salary was
advanced from $4,000 per annum to
100000 without his request in order
that james II. Hyde's salary might be |
to the same figure. Chaun- |
cey NJ. Depew, the report shows, is
paid $4,000 a year ms attorney, David |
B. Hill received $1,000 year and Eli
Ill Root 0or 1909 $4,000 also rs attor-
leys.