The Montgomery advertiser., 1905-06-22


 these trust companies run no risk and reap good profits"
 Where Society Lost
 The organization of the Equitable Trust Go. of New York. originally the American Deposit and Loan Co, was gone into thoroughly by Mir. Hend- ricks and he calls attention to the fact that the EduitAble Life paid $500 a share for i0.563 shares of Equitable Trust stock and that this stock now has book value of $2S3.33 per share. loss to the Society of s11e.es a share. Mfr. Hyde, however, and certain other shareholders. secured holdings at si50 a share and have Q book profit of s233.33 per share. This transaction shows, MT. Hendricks declares, that the officials and executive committee of the Equitable Life were not solicf- tous for the Society's welfare but were active in promoting their own private interests.
 A loss to the Equitable IAfc result ed from the consolidation of the West ern National Bank of New York with the National Bank of Commerce in New York. according to the report The Equitable Life owned about 12,0oo shares, or a controlling interest in the Western National and Valentine F. Snyder. who was It's president. testi- fled that he could have sold the cons trolling interest at s7oo share Tn the merger, however. the Equitable Life accepted s70 in cash and $40 in stock of the consolidated bank. or this Mir. Hendricks says:
 Mir. Snyder was asked what the Equitable Society really gained by the merger and he answered. Nothing ex- cept promises and prospects which conclude did not materialize, as he af- terward stated that the present book value of the National Bank of Com- merce stock was between 145 and i6o."
 The syndicate transactions of James H. Hyde and associates" are referred to as notorious" James W. Alexan- ders name is given in the list of par ticipants and 1t Is shown that in vari- ous bond issues by Kuhn. Loeb & Co.,. 5peyer & Co. ]. P. Morgan & Go. and Brown Brothers. the syndicate was represented in the underwriting. The total profits of the syndicate are placed at $lg6,1 TOT. of which $63,731 each went to James H. Hyde and James w. Alex ander. Another participant was Will liam H. Mcintyre, fourth vice-president of the Equitable, whose share was $14,420. All of those who took part in be compelled to pay back the sums TO- ceived by them. This Is only mild punishment" says the report.
 Sold at Various Prices.
 Tn the records of the Mercantile Trust Company shares Mir. Hendricks found that on Jan. 4, 1900. ona hun dred shares of that conipany's stock were sold to George J. Gould at $500 share and on the same day fifty shares were sold to H. c. Prick at $S50 per share. On December 20, 1901, 100 shares were sold to M L. Schiff at $500 Q share and on January 3. 1909, 100 shares were sold to E. H. Harriman at $500 share.
 The report shows that on the advice of Mir. Hendricks. Kuhn. Loeb & Co, repurchased from the Equitable $1,0O0,- 900 of Missouri Pacific gold tours of 1946 to which Mir. Hendricks objected because they were collateral bonds
 Extravagance and waste in salaries are severely condemned. The increase in this respect in the executive offica was from $3B0.i00 in 1900 to $t1s.600 in 1904. It was found that President AIexander's aaiary was advanced from S1bQ00 per anuam to $i00.po0 without his request in order that Jamea 1T. Hyde's salary might be increased to the same figure. Chauncey M. Depew, the report shows is paid s20.00o a year as attorney. David B. Hill received S5,- 900 a year and Eiihu Root for 1905, s25,000, also as attorneys. Or James H. Hyde's directorates in various cor porations Mir. Hendrick expresses the opinion that The was put on these boards for the reason that he was the financial head of great insurance corporation whose assets were largo and whose ready money was always available for the purchase of securities which these great corporations are largely in the market to sell.
 The pension of S2s.0o0 to Mrs. Henry B. Hyde Is condemned as unnecessary and probably illegal" Of the directors Mir. Hendricks found that only ten of the fifty-two owned stock in their own right and most of the others qualified on Hyde stock. MT, H. c. Prick is the only man." says MT. Hendrlcks. "who on the record IS not under obfiga- tions to MT. Hyde and he IS qualified by Hyde stock
 Of the financial administration of the society Mir. Hendricks says:
 The executive committee transacts all the important business of the socie- ty The finance committee is compos- ed of exactly the same men as the executive with one adition-Mr Jacob H. Schiff, senior member of the firm of Kuhn, Loeb Ss Co.,, which has sold to the Equitable Society, according to its reports since January 1. 1900 $47.- 52Aoo0 of bonds and t1.7so.00o of stock"
 Charges Discussed.
 The report of the recital of facts and fiures as given above then takes up the charges against James W. Alex ander, James H. Hyde and Gage E.. Tarbell, the latter being exonerated. Of MT. Alexander. MT. Hendricks says uncontroverted testimony shows that he was a participant in the James 1T. Hyde and associates' transactions. that he executed the leases detrimen- tai to the society's welfare and has failed to meet the obligations imposed upon him as chief officer of the society.
 The summing up against Mir. Hyde is more severe. It sets forth that he permitted the society to lose heavily fin it's business transactions with the Commercial Trust Company; that he exacted salaries out of all proportion to his age, ability or the value of his ser- vices: that hs has been accustomed to draw large sums for expenses on his own unitemized vouchers; that he as- sumed domination of the society's af- fairs until the presidency was reduced to a position of secondary importance and that he proceeded to use the so- ciety and its assets more and more as if they were his own until ne was checked by the demand for mutuali- zation and his retirement The polf- cyholders," says Mir. Hendricks, "are
 d.