Waterbury evening Democrat., 1905-06-24
New York State Superintendent of Insur- ance Francis Hendricks Points Out
 Astounding Irregularities.
Says That Officials Who Have Profited by Reason of Their Positions Should Pay Back to
 the Society Large Sums.
The Indifference of High Financers Sacred Trusts Dis. closed In This Remarkable Report, Distinct
 Shock to the Investment Public

James H. Hyde as well as his father.
 the late Henry B. Hyde. founder of the
 Equitable Life Assurance society. are
 severely arraigned in the report of
 Francis Hendricks. New York state su-
 perintendent of insurance. on the con
 dirion of the Equitable society. 4 less
 harsh criticism of James W. Alexander
 and an exoneration of Gage E. Tarbell
 are included in the report Henry B.
 Hyde's business operations are plainly
 discussed, and his methods are brand
 cd as outrageous. Interesting reyela-
 tions are made concerning profits ac-
 Quired from syndicate transactions.
 Dealing with the question of invest
 ment of life insurance funds, Mir. Hen dricks recommends complete ''mutuali-
 xation' and elimination of stock con
 trol Only in that way, he says. can
 the 4icancer'' be cured. The report in
 part follows:
 ssThe late Henry B. Hyde, father of James H. Hyde, was it's founder and
 leading personality in it's creation and
 growth until the time of his death, which occurred in May, 1899. Early in the history of the, society hel secured a
 majority of the stock. which he con
 stantly held and transmitted by deed
 of trust to his son. By reason of his stock control and his commanding abil- ity he absolutely dominated the society in all directions.
 Under his direction and manage ment the society grew in public conf dence, and before his death it became one of the largest and most extensive insurance companies in the world. As business increased and money began to flow into the treasury and the real or apparent surplus began to grow he con ceived the idea of constructing or buy ing office buildings in the larger cities fin this country and also in Europe.
 Mercantile Safe Deposit Company.
 "The present home office building at 120 Broadway. New York city. was the first of these. and it occurred to Mir. Hyde that its lower floors would be convenient and desirable place for safe deposit vaults and that such business would be profitable. He therefore some time prior to Jan. l, 1876. organ tzed corporation known as the Mer- cantile Safe Deposit company. and on the first day of January. 1876. the so- ciety leased to this Mercantile Safe De posit company rooms and accommoda- fions in the Equitable Life building. The lease was for twenty-five years. from Jan. 1. 1876. until Jan. l. 1901. with the privilege to the lessee of re moving It for twenty-five years more Gt the expiration of that period The annual rent reserved was as follows: The first s15.no0 received by the ten ant as net rental for said vaults. safes. places of deposit after the payment of all expenses went to the landlord. the second s15.oO0 went 10 the tenant. and fhe balance was equally divided be- tween the landlord and the tenant
 This lease was executed on 1he part of the society hy IL F. Hyde. presi- dent. and attested by Samuel Bo-rove. eecretary. Thereafter and on Jan. e 1ss3. seventeen years before the sx- piration of the lease above referred 10. the society made a new lease with this game tenant with 10 apparent reason. unless it may ha to extend the term and have another officer than H. B Hyde execute f on the part of the so- ciefy. This second lease provides for fhe same rent and contains sabst2n- tiaIly the same conditions ss the 0ne for which il was substituted. l. was to terminate on Jan. l. 1901. but pro ~ided for two renewals at the option If the lessee of fifty years each. which rill continue it until the year eisi1. on fhe same terms and conditions contain cd in the old lease. This lease was signed on tbe part of the society by Flames V. Alexander. vlce president. and William AIs1sade-. secretary.
 Again and on Oct. :. 1s.N. ths so- ciNs entered into another lease with this same tenant which was really the exercise 0f a renewal option con fafrei in the former lease The Safe Deposit company is now ia possession under this last Isase- AT these leases provide tha, the Iezs1T must make zu snprOvemeuts. alterations and repairs and must light heat water. tani.1-. watch and clean ths premises azd f-- cur all expenses f1- care and main fenz1ce. Yet ir receives 01ly o1s-hsIs Of the ue- rel1zI from the rz8Its. boxes and places of deposit. whereas ft .hcuid receive all IL nay be eizt0e1 ' ttzt the Safe Deposit company ran Roue risk in s-ef-e ra 1sv S1-fssl ! per 2z1EU ID any evezr Not So IL Iook oo ehsuces- for ths nat rents re ] re1vei ty f froD thee vsuIf<- e--- 11ri1g tAs first year -s-e ssSl474EZ ! md ths i0vesf ret reztzI si1ce sEzr I EzDe vss s47.41zls Bes5ez the sz-I- ] |ord pad all exre1ses. so that the-- I rzs n cha-ce ts io=e and pTz-- I .hs1re tn via ca t1s sale of the rezzr--
 Fruz 1s71 to 1ocz- b5zh f1cs-zsre. s1e NsrEz1tlie Safe DsP@lt co-uz-y pad ts r1s socfe<- as rent the xu- s< e1 m3 647 x<f sr --r-z41 -z-rs~