Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-06-04
THE EQUITABLE FIGHT

| CONTINUED from First Page9
of that demanded by the welfare of the So
( ciety he is, has been and always VIII De
willing to sacrifice.
| .aTbe publication of parts of the Prick re-
port has given "A most misleading impress
sion. One of the complaints Mr. Hyue
makes of that report is that. although IL
sets forth in full Mr. Alexander letter con-
/ tanning his complaints against MIR. Hyde, IT
! significantly oinits Mr.. Hyde's principal
reply and defense. Particulars of short
| preliminary letter are given, but the main
| reply is entirely omitted and most sparingly
referred to in the report. This necessitates,
| unfortunately, the publication by Mr.. Hyde
| of his defense, and that will have to be
DONE"
Purchases Made at Hyde's Instance.
| copy of a letter from Mr.. Hyde to Mr.
| Prick, dated May IS, was given out In
answer to the charge that the following
| purchases had been made at Mr.. Hyde s
| instance without consultation with Mr..
| Alexander or other officers of the society:
| The purchase of 100000 par value of the
| bonds Of the Coney Island and Brooklyn
Railroad Company.
| The purchase of 1000 shares Of the Hi
| hernia Bank and Trust Company of New
| Orleans.
The purchase of 81, 100 coo preferred stock
4
| In his answer Mr.. Hyde quotes from the
| society's records in regard to these trans
actions, and says:
You will note that the purchases of the
| Coney Island and Brooklyn stock were
| made in seven installments; that the first
| purchase was made while 1 was abroad;
| that all the purchases were approved by
| the finance committee, and that on six OF
| the seven occasions when they were ap-
proved by Mr.. Alexander Is recorded as
| having been present and as having voted
| approving the purchase.
THE society has for many years prior to
my connection with 1t been interested In
| the securities of the Coney Island company.
| The securities in question are of a very
| high order.
To Cover Certain Improvements.
1.-THE entire issue of debentures pur-
| chased was limited to the 100000. 1t was
| made to cover the cost of certain improve
ments. The stock of the company now
pays, and has for many years past paid
| an annual dividend of II per cent.
THE debentures in question has recently
| been taken up out of an issue of CONSOLE
dated bonds.
1.-The purchase of the Hibernia Bank and
| Trust Company shares were made in five
| installments, extending from January %,
| 1903 to and including September IA, 1903.
| They were approved at four meetings of the
| finance committee, MIR. James w. Alexan-
| der being present and voting in favor of the
| purchases at at least three of these meet
! ings.
| Before taking any action on the subject
| consulted with Mr.. Valentine P. Snyder,
| who advised that it would be wise to Sc
cure this connection by making the pur-
| chase. l thereupon saw Mr. Alexander, ex-
| planned the transaction to him, asked his
| advise and secured his approval of the pro-
| posed purchases.
1.-The cost of the stock ranged from 45O
| to 465. l understand it is now selling at
over 600 and pays an annual dividend of 20
pc: cent.
| THE purchases of Union Pacific preferred
| stock were three in number
| Mr.. Alexander in his letter to you of
| May makes the following extraordinary
| statement with respect to these transac-
| lions:
| Hyde Member Of Syndicate.
| q" These purchases were made without
| prior consideration by the executive COM
| mittee and without my knowledge I am
informed that Mr.. Hyde personally was a
| member of the syndicate Upon inquiry
since made, I am satisfied that this stock,
held by the Equitable, is the proportionate
| amount of stock subscribed for under the
| syndicate agreement of Mr. Hyde individ-
| ually; that one of the conditions of the
| agreement was that the stock should not
be sold by the individual subscribers for a
| period of years, or some provision to that
| effect.
| This particular transaction evidences
| two things, the Improper assumption of
| authority to commit the Equitable to large
| transactions without proper consultations
! and supervision, and the making of the
| Equitable to all practical purposes a party
| 10 an agreement such as, in my opinion, it
is not justified in becoming a party !"
| and which lies entirely outside the pale of
permissible transactions for an insurance
! company.
| In reply to this charge beg to say:
| l. Ihat before the purchases were made
| or agreed to be made the subject was fully
| discussed with Mr.. Alexander and his as
| sent secured
''2. That the syndicate agreement was
| signed by me IL my individual name with
| the knowledge and consent of Mr. Alex
| ander for business purposes ana con
| venience, but not for the purpose of gain
| ing any profit or advantage to myself nor
| have | ever derived any personal rrofit or
| advantage therefrorn-
Alexander's Letter to HYDE.
SO. That SO far from the transactions
having been contaminated without the
| knowledge of Mr.. Alexander, he delivered
to me the following letter with respect
thereto, which confirmed his previous oral
assent:
| " James H. Hyde, esq
Dear Sir: In view of the fact tha. you
| have entered into a contract dated Noyem-
| Der IL, 1902, between yourself Messrs E. H
| Hartman, James Stilman, Kuhn, Loeb &
| Co, and others for the benefit of the Eouit-
able Life Assurance Society, and thar the
| society is to receive the profits resulting
| therefrom it is understood TIA: the so.
| clety, from time to time. will supply such
| funds as may be necessary in the trans
| actions therein contemplated, and thar you
| personally will be fully indemniied and
protected against any personal liability OF
| loss Which you may incur or III any way
n hn antA .aft t.x
| rying out of the said agreement.
| (Signed) JAMES w. ALEXANDER.
| =" President.
| New York, January II, 1893
| This IS a fair illustration of the ac-
| curacy of Mr.. Alexanders statements and
| OF the straits in which ne finds himself for
| causes of complaint against me- The mani,
| fest insincerity of such illustrations OF
| usurpations of authority requires no com
| ment.
But this is not all The records of the
| finance committee show that these pur-
chases were ratified and that Mr. Alexan-
| der was present when the first of them was
| approved.