The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-04-10

eel o. f.
Here was a loss aggregating more than
half a million dollars, all due to the par
TALLY Of the Harriman-Hyde directors
10 the Hartman securities. The purchase
e. nearly $4,000 900 in Hartman securi-
ties IL year like 1908 has been severely
commented upon by conservative financial
authoritles Yet Mr.. Hartman, a policy
holdes' Of six weeks standing and a stock
holde' only by the courtesy Of Mr.. Hyde
il made one Of the investigators Of the
transaction.
1t was said yesterday that one Of the
things which the Superintendent Of Insur-
anoe in his examination OF the sooiety's
sfairs and also the soCiety's investigating
committee mi ght look into was the society's
transaction in Western Maryland Railroad
bonds. The Western Maryland line was
bought in 1902 by a syndicate headed by
George j. Gould, a director Of the Equitable
for use chiefly as an outlet for the Gould
Wabash system. On the board Of directors
Of the Western Maryland now are II. c.
Demng, George j. Gould, W H. Mcintyre
and james II. Hyde, all directors Of the
Equitable.
The Equitable now has 81, 900 900 interest
In the bond syndicate and 81 900, 900 OF
the Western Maryland's bonds Subsidiary
companies OF the society, like the Mercan-
tile and the Equitable Trust companies,
are said 10 have more Of the roads securi-
ties. The property was bought by the
syndicate for 3s,75l.OOO. It's funded in
debtedness is now 1s5, 1856, 900, and its capital
stock SIC 200. 900. The last report OF the
Equitable society shows that the market
value Of It's interest in the bond syndicate
and in the Western Maryland bonds Is
$500 900 each. The book value Of each is
given as $4,000 That Is, according to
the Equitable's own statement, there has
been loss to the society OF $4,000 in the
Western Maryland transaction.
The statement was made yesterday by a
man IN touch with the situation in the
Equitable society that the amended charter
Of the society was in the possession OF
representatives Of the board Of directors
In this city when Franklin B. Lord. owner
Of thirty-siX shares of the capital stock Of
the society obtained on Friday from jus
nice Maddox in the Supreme Court in Brook
Ign an order for the society 20 show cause
why its board OF directors and officers
should not be enjoined from carrying the
amendment into effect.
According 10 this man as soon as the
order was ASKED for the telephone and tele-
graph wires were made hot with an EFFORT
to find Supt. HendUcks. IL was learned
that he had left Albany for Syracuse, and
before the order had been served Charles
r Alexander Of the law firm Of Alexander
4 Green was despatched with the charter
for that city. MIR Alexander, IL was said
took fast train on the New York Central
early Friday evening. He arrived in this
city on the ret Urn tip yesterday, but re-
fused 10 be interviewed. The firm Of
Alexander h Green has been represented all
along as counsel for Vios-President James
n. II de.
Counsel for Mr. Lord continued yesterday
20 give IL a. their opinion that they would
be able to accomplish something In the way
Of preventing the provisions Of the amended
charter from being put into effect n the IN
junction asked for should be obtained
after the argument in the Supreme Court
IN Brooklyn to-day, and persons interested
IN opposing the Lord action, although they
would not say 80 for publication, we're not
u was declared, nearly so certain as they
we're on Saturday that the officers and di,
rertors Of the society had legally taken hnal
action in regard 20 the charter.
Lawyers who are advising Mr.. Lord IN
his action assured him yesterday not onY
that the submitting Of the charter 20 the
Superintendent Of Insurance for his ap-
proval and afterward the filing OF Il IN the
State Department Of Insurance oonsututed
separate and distinct acts In the eyes ol
the law, but that still other action 10y, me
Equitable authorities, though not PROVIDED
nv tho state insurance law, was necessary
The charter, II was said, after u had peer
approved by the Superintendent Woulo
have to he referred 10 the Attorney -lienera
for his decision as regards It's legality,
Counsel for Mr. Lord. Immediately. after
the order TO show cause was obtained from
Justice Maddox on Friday telegrapheu
10 the Superintendent OF Insurance, 70
that the latter must have known OF tht
courts action in the matter when Mr. Alex
Hnder arrived in Syracuse with the paper.
Supt. Hendricks has been notified that
Mr. Bord's counsel would like 20 have
hearing before him in regard 20 the ohaf ~
before he afhXes his signature Inc ou-
perintendent refused 10 grant a hearing,
but said that he would be glad 20 acGepl
brief. This brief will be submitted al
once.
Attoney-General Mayer was, in town
yesterday comforting with the lawyers OF
both the HYDE and Alexander sides, a.
well a. with Representatives Of the policy
holders interest. That the Lord in uno3tloL
u disturbing element 20 both taotlon.
" the society Was evident yesterday Nhel