Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1905-08-01
PROSECUTION
CONTINUED from Page One.)

cial Trust Co. of Philadelphia. had on
its books, the sum of s4,273,249, COM
posed OF assigned balances and debts
due from agents of the Equitable. on
which the defendant society paid to
the Trust Co. ) per cent. per annum.
although the sum was not taken from
the Trust Co. and although at the
same time, the Trust Co. had on de-
post large sums of the defendant So
cie.y upon which the Trust Co. paid
only per cent. At the time of these
transactions, it is charged that James
IL. Hyde, James w. Alexander. T. De-
Witt Cuylcr and Henry r. Winthrop
We're directors in both companies.
A schedule of the salaries paid during
the last five years to the principal Of
ficers of the society. is appended to the
compla int which declares such salaries
to have been largely III excess of the
value of the services of the persons
named and that the payment of such
salaries resulted in substantial loss to
the society. 1t is also charged that in
addition to the salaries referred to the
individual defendants. as officers, menu
bers of committees. trustees or agents.
"perrIitted the defendant society to pay
to many of the above named officers
and directors and to others large and
unwarraEt,d sums as expenses incur
red by such persons in the service OF
the society and said sums were paid
without sufficient vouchers. without
proper proof Of their amounts and
without it being properly shown that
the said defendant society in any way
benefited by such expenditures or was
legally or properly chargeablc there
with"
The complaint also takes up the pay
ment of salaries and fees to the defen-
dant5 for services as officers, directors
and members Of committees i'll tho
Equitable and 4 number Of other 80
cicties ana corporations in which TIN"
the Equitable was a. large stakeholder.
and il which some of said individual
defendants were also directors and
stockholders.
Especial mention is made of the re-
Ccipt by Mr.. Hyde of salaries aggregat-
ing ST. 900 annually from the Equitable,
Mercantile and Commercial Trust CO.
in all of which the Equitable Life is
largely interested.
mcnt Of Illegal and excessive pensions
to various persons" and Of the pay
mcnt Of excessive" improper and un-
warranted sums to various attorneys
and counsellors ut law. the aggregate
amount of which far exceeded and WAS
entirely disproportionatc to the ser
vices rendered"
OF the loan to the Dcpew Improve
ment Co. the complaint charges:
THAT the defendant improperly. i'm
providcntiy and vast efully procured
and permitted the defendant society to
loan the sum of $250.000 to the Depew
improvement Co, q corporation doing
business in the state of New York, liz
" INCH the company. defendant. Chaun-
cey NJ. Dopew and other of the midi
vidudl defendants were stockholders,
which loan of $3.50, 006 was made upon
grossly inadequate security and which
property securing said loan was APP
praised in 1901, by the insurance de-
partment of the state of New York at
the sum of sl50.000.
THAT the said Depew Improvement
Co. subsequently became insolvent ana
tue property securing said loan was
bid i'll at foreclosure sale Tor ABOUT
$50. 900. thereby resulting in a great
waste and loss of the property of the
defendant society.
THAT the referees deed for said
property was not recorded by said de-
PENDANT society until about July II,
1905, and that in the meantime, no pro-
ceedings were taken to collect the judg-
ment for the deficiency thereon and the
same has ever since remained due and
unpaid.
THAT said Depew and others of the
individual defendants agreed with the