Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-06-22
Report of Superintendent OF In
surance Arraigns Methods
of Hyde ct. al.
ELDER HYDE ALSO CLAIMED
Elimination of the Stock and Complete
Naturalization of the Company De-
clared to be the Only Cure - Char
acterized as a Business Cancer -
Tho General News.

acterized as a Business Cancer =
Tho General News.
Albany, n. Y, June 22.-The report
of Superintendent Francis Hendricks
of the state insurance department TO
| Governor Higgins upon his invest1ga-
ton of the Equitable Life Assurance
| Society has been made public.
| 1t is described in the title as pre-
| liminary report and 1t sharply crltl-
cises the management of the society,"
as we'll as the new trust arrangement
| for voting the stock agreed upon by
Thomas F. Ryan, and the three trus-
tees designated by him.
In conclusion Superintendent Hen
bricks says:
mo superficial measures will correct
| the existing evils in this society,"
| cancer cannot be cured by treating
| the symptoms Complete mutualiza-
| ton with the elimination of the stock
| to be paid for at a price only COM
mensurate with its dividends, is, IN my
| opinion, the only sure measure OF re-
| lief.
This report, with a copy of the evil
dence taken on this investigation will
! be transmitted to the attorney general
| for such action thereon as he may
deem proper
James W. Alexander president, and
James H. Hyde, first vice president,
respectively, whose designations were
accepted Tuesday by Chairman Nor
! ton, are severely arraigned in the re-
port Gage E. Tarbell second vice
president, is eXonerated. Mr.. Hen
| bricks finding that no substantial evil
dence appears in support OF the
charges against him. Mr.. Hendricks
says it is an open question whether
President Alexander and the other Of
ficers and directors who participated
with him in the transactions of James
H. Hyde and associates" are not dis
qualified under section SO of the insur-
ance law from hereafter holding any
office in a life insurance company
The report characterizes these
transactions as unlawful. Mr.. Tar
bells name is not in the list of particle
pants in these transactions. The pol
icyholders, however, the report sets
forth, are unler great obligations to
Mr.. Alexander and the other execu-
tive officers for demanding the mu-
tualination of the society and the re-
tirement of Mr.. Hyde from it's con-
troll.
A surprising feature of the present.
ment is that Mr.. Hendricks goes back
to the organization of the Mercantile
lc>. = " HNy
Henry B. Hyde, founder of the So
ciety, and declares that the company
which leases its offices and vault
rooms from the Equitable Life Assur-
ance 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 ninety-six years to run.
OF Henry B. Hyde and the organiza
ton of the safe deposit and other sub
sidiary companies, Mr.. Hendricks
says:
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. But
he did not neglect his own interests
nor those Of his immediate associates
and dependents in the society,"
Another Deposit Company.
The organization Of the Equitable
Safe Deposit Company of Boston by
Henry B. Hyde, and ITS lease Of space
in the Equitable building, Boston, is
criticised and the lease declared to be
Improbable to the parent society. This
;,1,. 80
handled and he notes that the real
estate pays the society only 1853 per
cent on the building, while the Secur-
ity Safe Deposit Company, which
succeeded to the rights of the Equit-
able Safe Deposit Company, pays 1s
per cent.
Under this heading, "The Missouri
Safe Deposit Company" the report
says:
''The late Henry B. Hyde, who, by
this time had become firm believer
and an expert in the safe deposit BUSH
ness, concluded he could improve on
the Boston lease by $4,000 year in
favor of himself and his friends and
{ to the loss Of the society,""
The stock of the Missouri Safe De-
post Company Of st. Louis, consisted
of 1000 shares, par value 500 each. OF
these Las We're in the name of Louis
Fitzgerald and Mr. Hendricks says at
this point:
Looked Out for Hyde.
eve have sent for Mr.. Fitzgerald to
tell us who the real owner Of this stock
was, but he has not appeared. It may
be assumed that most of it was owned
by Henry B. Hyde himself, for while
he favored his intimate friends on the
inside at the expense Of the society, he
kept the lions share himself
In 1902, when it was desired to sell
the ST. Louis building, the purchaser
objected to this lease and the safe de-
post stock was bought by the Equita-
BILE Life at $3.50 share, James H.
Hyde, the owner of 141O shares receiv-
ing 1852, 500 in cash for his share.
OF James w. Alexander's share in
these leases. Mr.. Hendricks makes the
following statement:
James w. Alexander says he signed
these leases under the direction of
Henry B. Hyde. I believe that to be
the fact and 1t is the most charitable
construction which can be placed upon
his acts"
The Commercial Trust Company of
Philadelphia is next taken up. In 1893
the New York state insurance depart
ment refused to admit as an asset the
,ooiaty'c advances To agents The