The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1905-07-07
WIN

VIII
The committee, upon the receipt OF
those communications from Mr.. Hyde,
verified all of the persons named by
Mr. HYDE as members of the syndi-
Gates whose operations he detailed, ana
invited their respective statements re-
lative thereto So far as responses were
received they are filed herewith
The committee also made the follow
ing requests for information from Mr.
James w. Alexander
"The committee has instructed me to
inquire of you especially in regard TO
the allegation that Mr.. James II. Hyde,
first vice-president of the society had
from time to time purchased, without
proper authorization, securities for the
society: when this practice upon his
part first came to your knowledge; and
what steps, if any, you took to bring
this alleged practice of Mr. Hyde to
the attention of the executive commit
tee. the finance committee, or the board
of directors of the society.
The committee also especially desires
to know when you were first informed
the society were held in the name Of
James H. Hyde and were utilized by
him for the purpose mentioned in your
letter. and what steps, if any, you took
to bring this matter to the attention
of the executive committee, the finance
committee, or the board of directors.
This inquiry is intended to extend to
each case specified by you in your let
! ter of May 2 1905.
! The committee would likewise have
! you explain the process by which the
societys funds were drawn from its
| treasury to pay for securities whose
/ purchase had not been previously au-
! thorized, and also whether the securi-
ties of the society standing in the name
! of Mr.. Hyde, to which you refer, were
originally issued i'm his name or trans
/ ferred to him subsequent to their pur-
chase, and if transferred by whom.
| The committee Will thank you to in
form it how, under the charter and by
/ laws of the society, investments are
authorized for the society, and what
! officers are the proper officers to con-
duct the negotiations and see that the
purchases. Also, whether in the prac-
/ tice of the society the legal rule gov
erning such matters has been deviated
from by others than Mr.. Hyde, and if
so, by whom. In a recent communica-
ton received from Mr.. Hyde he states
that you were a member of va
riOus syndicates whose operations
were conducted under the name
of James H. Hyde and Associates, -
and that you participated in the distri-
button of the profits of those syndi-
Gates to the extent named in Mr..
Hyde's communication, a copy Of
I which, in so far as it bears upon this
subject, | herewith enclose you.
Very respectfully,
H. c. Prick, chairman.
To this communication the commit
tee received a reply from Mr. Alexan-
der, dated the 18th Of May, 1905, a copy
of which is filed herewith. In this re
ply Mr.. Alexander does not claim t2
have brought the Irregularities of Mr..
Hyde to the attention of either the
finance committee, the executive COM
mittee, or the board of directors, at
any time previous to the Sth of Febru-
airy, 1905, and then only in connection
with his argument to the special COM
mittee of twelve in respect to the mu-
tualization of the society," wherein, as
he says, he referred lin general terms
to the transactions above described.
further details as to which were given
in my letter to you of the % instant -,
meaning the I'd of May, 1905. Mr.. Alex
"a N n1sf- ,1l.,, To-,
bring these alleged Irregularities of
Mr.. Hyde to the attention of the pro-
per authorities in the society is that
he was not aware of them until Janu-
airy, 1905. In view of the grave duties
and responsibilities and large powers
cast upon the president of the society
by its bylaws to which the COMMITTEES
has referred at length in a previous
portion of this report, this explanation
in the committees opinion, convicts
Mr., Alexander of gross neglect of his
duties to the society. Transactions of
such magnitude and so numerous. and
extending over such a long period of
time, and affecting so many of the So
ciety's holdings of securities in SO
many corporations, could not have
oNN'NbNN hilS hiONltuBe OF pre-
sident who was giving to the af-
fairs of the society such attention AZ
is contemplated by his acceptance OF
the office with the powers which it car.
ries with it.
We will first consider the James H
Hyde and Associates" syndicates.
The syndicate known as James II
Hyde and Associates" was not a per
manent association, but changed it.
personnel frequently.
AS shown in his letter, Hyde and AS
sociates conducted a considerable,
= number of transactions. In nine O
them the Equitable Society became tn,
purchaser of some or all of the securi
ties involved.
In these nine transactions secur
ties to the par value Of $4,000, 900 wer.
handled. The total profit to the syndi
cate in the nine operations was 1904
EOl