Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1905-07-15
DEPOSITS S0FHINDR|CK}

New York. June 1s.-Francis Hen
bricks, State Superintendent Of Insur-
ance, who is making an examination
into the Equitable Life Assurance So
ciety's affairs, is president of the Trust
and Deposit Company of Onondaga.
located in the city of Syracuse. Upon
Mr.. Hendricks report depends, to a
large extent, the action Of Gov. Hig-
gins and the Legislature toward tho
insurance society.
Frederick u. Kilburn, Superintend.
ent Of the State Banking Department,
made an examination on Sept. 20. 1904.
of Mr.. Hendricks's trust company, and
In his published rapport there Is found
this item:
Due from Equitable Trust Com
pany, New York. s3i5.5e2.95."
The meaning Of this entry in the
books is that the Trust and Deposit
Company Of Onondaga keeps an ac-
count with the Equitable Trust Com
pany OF New York, and on that date
had on deposit there the large sum Of
money stated.
Previous to 1903 Mr.. Hendricks's
company kept its New York account
with Mr.. Thomas F. Ryan's Morton
Trust Company; but the State Exam
iner's reports show that in 1903 the
money was transferred across the street
to the vaults OF the Equitable. About
this same time the affairs Of the Equita.
BILE Trust Company were booming, un-
der the patronage Of the Equitable Life
Assurance Society.
BOUGHT BY ASSURANCE SOCIETY.
The Equitable Trust Company for
merly was the Traders Deposit Com
rany, but few years ago the officers
and directors OF the Equitable Life AS
surance Society bought It and turned
II stream of policy-holders' money into
its vaults. so that II paid the purchas-
ers large profits. Twenty-Five of the
thirty-five directors In the trust COM
pany were until recently directors In
the insurance society.
OF its s3,O00.OO0 capital stock, the
Equitable Society holds $1.316. 100. and
most Of the rest is held by the inter
,ested directors.
Therefore. the s3i5,562.95 funds oil
Mr.. Hendricks trust company are In
directly on deposit with The Equitable
Life Assurance Society, which he now
is investigating.
The Frlck report had the following
to say about the Equitable Society and
the Equitable Trust Company:
"The society has acquired large and
in one case tthe Equitable) a control
ling stock interest in banks and trust
companies. Judging these investments
either on general principles or on theil
specific results, their wisdom is graveiy
questionable.
THE very foundation of these ex'
tensive stock ownerships is an attempt
to do by indirect that which may moi
be done by direct means; and this II
itself Is a departure from that dignity
which should attach to every phase o.
life insurance. 1t has been shown tina
the society carries abnormal balances
with those concerns in which It hold
n considerable stock interest. The fac
; that the society does not carry exces
sive balances in institutions In whicl
Il does not have large stock owner
, ship indicates that these large balance
. are maintained for the purpose Of aid
d. ing the concerns with which they ar
deposited.
"The book value OF the society
holdings in Equitable Trust, plus IT
average deposits during 1904 in tha
] institution, amounted to $17.S70, ,000."
This enormous amount is nearly one
third Of the total assets of the trus
company.
CoMPANY's OTHER HOLDINGS.
As president Of the Trust and De
posit Company, OF onondaga, Mr.. Hen
. bricks has had much to do with tn