The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-06-21

orge-NeW Developments Involve
Three Directors Hydc's Lawyer Says
That He WIN Vow Set Out to Rrrnte
the Charges Against Him Hendricks
Report to he Given Out Thursday.
Paul Morton, chairman OF the board of
directors of the Equitable Life Assurance
Society. swung his scvthe yesterday and
IN accepting the designations of President
James W Alexander and Vice President
James Hazen Hyde made it clear to all
that he meant business.
After Mr. Morton had accepted the resig-
nations of Mr. Alexander and Mr. Hyde
THE SrN was authorized to announce that
the Investigations conducted by Superin-
tendent Hendricks and Henry c. Frick
would be pastoral poems compared with the
Investigation which Mr.. Morton : account
ants are now making Of every department
in the society from roofto cellar
Furthermore. THE Sun was authorized
to announce that Mr.. Ale4anders igna-
tion and Mr.. Hyde's resignation were &C
cepted at this time for the purpose of clear
ing the way for the investigation nov being
conducted by Mr.. Morton, accountants
and that with the retirement Of Mr. Alex
snder and Mr.. Hyde other retirements
NAV he expected. Nothing. it VAS added,
and nobody is to stand in the way of the
Investigation by the accountants
Further, the investigation is TO be differ
ent in many particulars from those conducted
by Mr.. Hendricks and Mr.. Fricii, for tho
reason that no considerations of any kind,
roli,ical or personal, are to stand in the way
OF clearing the decks permanently of all
officers and directors who in any way have
participated in profits from syndicates and
outside ventures through the Use of the
funds Of the FGu!ti bic life Assurance
Society and from granting loaI' 1t is to
tie a housecleaning in the most thorough
tense Of the word.
1t was ascertaincd also. and THE SrN
IL authorized to announce. that frequent
consultations with eminent lawyers, to-
eether with the three trustees. Mr.. Cleve-
land, Justice O'Br.en and Mr.. Westing-
house. have resulted in MIR. Morton's TAX
ing the stand that as fast a. the develop
ments Of the accountants are ready he will
prosecute all directors and officers, big
and little who have abused their trust by
using the funds of the society for their
own personal ventures and private profit
announce that many suits are already in
contemplation and will be brought "a fast
As the developments warrant the prepare
ton Of the papers against all these men
to compel restitution of all profits illegally
acquired by the Use of the funds Of the
ocetv. p
The lawyers and other advisers Of Mr..
Norton and the trustees, it was further.
more announced. have already looked
over the books of the society for the last
fifteen years, have become thoroughly
conversant with the statute of limitations.
and they are prepared to move against all
officers and directors who began fifteen
years ago the systematic application of
the socety's funds to personal ventures
for their own private gain, to the great
detrment Of the poicyholders of the society.
No man is to be spared, it was authorita
lively declared, no bunch of men are to re-
ceive the slightest favor or consideration
or are to be treated with pallation. and
no Cancellation is to be thought of for a
single moment. 1t was announced that as a
result Of the investigation by the account
ants already made, three Of the directors.
formerly very active in the society and
auxiliary institutions Of the Equitable Life
Assurance Society, are on the list for de-
captation and prosecution. 1t was an
nounced that one or two men connected
with the Equitable Trust Company have
already been marked for removal and
prosecution.
Chairman Morton, his legal advisers
and three trustees, it was finally declared,
are 70 compel the restitution to the policy
holders Of all moneys diverted from the
Folicyholders by the Use of the society's
funds for personal ventures during the last
fifteen years, 1t was announced that The
srN cannot lie too specific or emphatic in
making this statement,
Already, it was made known, the account
ants have discovered private channels
through which the policyhoders' money
has gone TO enrich certain officers and di-
rectors Of the old regime, The develop
rnents, it was added, are almost Incredible.
Mr. Morton, it was added, intended to keep
cool but that he had his courage with him
every hour in the day
Nothing is to be left undone, it was stated,
n bring to light all the wrongdoing Of GER
tain men connected with the society for the
last fifteen years Certainly within the
next month. it was declared, clean sweep
will have been made, and the Equitable
society will by that time be manned by
officers and directors who have but one
aspration-the management Of the affairs
of The society and the handling of its funds
50 "a 70 insure the complete benefit thereof
10 the policyholders
James W. Alexander and James Hazen
HYDE are no longer connected with the
Equitable Life Assurance Society as execu-
tive officers. Chairman Paul Morton of the
'oclety's board of directors announced yes
'"Fday that he had accepted the designations
which they as president and first vice presi-
cent placed in his hands at the last meeting
OF the board of directors on June 0, The
designations went into effect Immediately
upon their acceptance,
Chairman Morton in announcing the re-