The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-06-02
WOULDHUSH UPFRICK REPORT
FIGHT TO BE MADE AT TO-DAY'S
EQUITABLE MEETING.
Committee Denounces the Deferred DtN.
dend Policy System and Calls for
New Business Methods-Charges

The directors OF the Equitable Life Assur-
anoe Society will go into the meeting called
for II o'clock this morning to act on the
report of the Frick investigating committee
in thoroughly disorganized condition.
The scope and extent OF the charges Of the
committees findings are beyond anything
that the board had anticipated. All par
,izan lines have been wiped out. each man
nit by the report. and that includes large
percentage Of the directors. Is scurrying to
cover on his own account, and the prin-
ripals in the controversy are demoralized.
If the board accepts the report it will
he Obliged to ask for the designations OF
Alexander, Hyde and Tarbell. To gain
time until some o Their way out can be found
is the purpose now of the three officers
whose management OF the society has
been condemned by the committee. They
Pi 90 into the board room this morning
prepared to fight for further delay and to
urge that the report as originally drafted
be withheld from the public Afor the good
of the society," II any report is to be
made public they would have one much
modified.
bitterly by the Frick committee and by the
directors who are behind the Hartman
SchifY coterie in the present report. They
were opposed to granting even days
grace in the matter and declare that the re-
port in its present form will be adopted
by the board to-day and given to the public.
IL the report comes to a vote, though.
the Hyde-Alexander forces will join hands
IN an effort to vote 1t down.
The report besides practically recommend
ing the removal Of Alexander. Hyde and
Tarbell declares that the departments
which they managed as president, first vice.
president and second vice-president re-
spectively have been conducted e1trav-
scantly and without due regard to the soci-
ety's welfare. President Ale1anders office.
the report says has been managed with
laxity and negligence.
The report goes exhaustively into the
underwriting transactions OF the james d.
HYDE and Associates syndicates, on
account of which Mr.. Hyde has returned
sol 900 to the society. declaring that every
officer and director who has profted by
these transactions should be held account
able to the society. The report recon-
mends that in case the guilty officers refuse
TO refund the money made by them civil
suits be brought against them by the Equi-
table.
The report recommends that the salaries
Of sl2e, 500 year paid to Mr.. Hyde by the
Eauitable Life and it's subsidiary com
,ranies, the Equitable and Mercantile Trust
companies, be readjusted. and that money
used wrongfully either for travelling ex-
penses OF other causes must all be returned.
The report finds that extravagant charges
for travelling expenses were made by Mr..
Hyde.
The report says also that waste and ex-
travagance have existed in other depart
rnents besides those managed by Hyde and
Tarbe, and 1t declares that large sums Of
money have been deposited in different
institutions for the personal use OF certain
directors OF the society. The report, it
was said, set this sum at between oOo0. 900
end $2O.OoOOO0.
The report recommends generally that
the business OF life insurance should be
reoreanized in the interest Of the policy
holders. The most radical recommendation
is that the Equitable should abandon the
writing Of what IL known as deferred divi-
eend policies, which include many of the
tontine policies, from which the Equitable
draws it's greatest revenue. twas said yes
tercay that six-sevenths Of the Eauitabe's
business was Of this nature and that SN,-
100000 Of the $s1 900 900 surplus was held
for these preferred dividend policies.
The charge was reiterated yesterday in
many quarters that the report Of the Prick
committee represented conspiracy on
the part Of Mr.. Hartman and others ASSOC
ciated with him to obtain control Of the
EQUITABLE society in their own selfish in
tarests
II was said that not only Jacob Fl. Schiff
but Henry c. Frick, August Belmont and
others closely identified with the Hartman
and Standard Oil railroad interests were
eagued with Mr.. Hartman in this move
to obtain control of the Equitable assets.
The hrst step in the plan Of the Hartman
control, 1t was said last night! was the
adoption Of the report, accompanied by
recommendation either for the immediate
resignation d the three officers or the APP
pointment OF chairman of the board with
q view to forcing their designations later.
IL was pointed out authoritatively that
not one of the serious charges made against
Mr. Hartman or Jacob H. Schiff Is men
toned in the report. Numerous other
directors, it is declared, whose names haVo
been mentioned in connection with ques-
tionable transactions in the society, but
whose votes are being counted on the Har-
riman side in his plan Of reorganization,
have been ignored.
The plan is, it was asserted, by ignoring
the transa otions OF Mr.. Schiff and the firm
Of Kuhn. Loeb Co. and of Mr.. Hartman
and his Union Pacific holding syndicate
and by eIaggerating the acts Of the officers
20 sweep Alexander. as the chief obstacle
of the Harriman-Schih control, from Office
and also to remove Hyde, because the 40
quiescenoe Of the directors in the removal
of Alexander could not have been secured
from Mr. Bliss and Mr.. ingalls, under any
other conditions.
The Union Pacific holding syndicate
referred to is the one in which 1t is charged
Mr.. Hartman sold more than 100000
worth Of Union Pacific securities through
Kuhn, Loeb d Co. to the Equitable, with
the understanding that the Equitable was
rot to dispose Of the securities for five
years.
Aman prominent in the Equitable society
sald yesterday regarding this feature OF