The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-05-20

and those to the various safe deposit com
panies and various restaurant keepers IN
the Equitable building, '.
1t Is further charged that said defendant
Hyde has directly. wrongfuly taken ano
drawn from the treasury Of the defendant
society large sums of money ~ expenses
without rendering any items OF surh OK
penses to the society, and upon hls aP-
proval and without other audit than nus
own; that In many such cases the only
voucher given therefor to the defendant
society has been "a receipt gwen ny salo
Hyde and approved by him; that the SUITS
thus taken wrongfully have neen ihucn
greater than any expense actually incnrred
by said Hyde FOR or on account Oh sa4o
society," ,,
The plaintiff says that she IL unable 20
state the entire amount OF funds wasteo
by Hyde, but that the amount runs INTO
many thousands OF dollars IN the aeRre-
gate At. e
Cha,ncry n Depew be directed to account
for the salary OF S25 900 year which he
has drawn from the Equitable.
The complaint charges Jacob h. Schin,
a director Of the Equitable ano neHper
Of the finance committee, az member on
Kuhn, Loeb r Co., with having SOLD large
quantities Of bonds and securities to the
Inuitabls and with having received COM
missions on such sales amounting to many
hundreds of thousands OF dollars.
duty. saws the complaint .fer the de-
PENDANT, Jacob n. SohifI. or said copartner-
chip of which he was q member, to receive
any commissions on such sales TO saio
society, and il was contrary to the express
provisions Of the statute III such case mace
and provided"
or Edward II. Hartman the complaint
sayssh; d.,ord,nt Edward II Hartman
has been director OF the defendant society
IVA ~ ~ a
and since has been member OF the eIecu-
tive committee thereof which committee
has had general charge Of the management
Of the said society; that In truth and in fact
said Hartman had no stock nor any money
interest in said society and was not legally
qualified as a director thereof; that never
theless he has been and has acted as such
director during said time and during the
three years next prior to this action. and. dis
regarding his duty as such trustee director
and to the defendant society, has cold large
blocks OF securities to said society and has
voted to, and caused said society to- invest
large sums Of Its money In securities OF
corporations in which be was largely In.
terested. by means Of which sales said
Hartman would and has made very large
sums ar Of money which in good conscience
belong to the defendant society. Tor which
he should account and which he Is liable
to pay into the treasury Of the society; that
the receipt and retention Of such profits By
trary to law and constitutes waste Of the
funds Of said society
The plaintiff asks that the 3l35 COO which
Gage +. Tarbell received from the society
for his renewal account, just before the
present controversy broke out. be returned
John }. MeCook, Charles b Alexander,
Henry C.. Derning. Alvin W. krech and
William n. McIntyre, who have UNDER
written the securities of various corpora
tions and caused the Equitable society
TO take them at figure higher than the
underwriting, lee compelled to make an
accounting and return their wrongful
profits.
The charge is made that the payment OF
$4,000 a year sa,,,, as salary 20 Fourth wee,
$4,000 year to the financial manager.
ciety 8 funds. Such payments. 1t is charged
have been made solely because of the
friendship between these officers and Mr.
Hyde.
The complaint charges President Alex.
ander, a. the head of the society, az well
as all the other directors, with being re-
sponsible for allowing all these things.
ii contains this unexplained paragraph:
society have not been conserved, but great
waste thereof has been permitted by said
defendants. other than the defendant
society and such funds have been used in
illegal ana Improper ways anu III paying
various persons who were not creditors
Of the society and we're not entitled thereto.
large sums of money, and in settling and
paving claims against some OF the directors
of the society
The complaint also charges the directors
and officers with negligence in failing to
prevent the funds of the society from being
used in the purchase Of stock of various
trust companies at larger figures than the
market price of such. stocks For large
block Of the stock Of the Equitable Trust
Company the defendant society, it is alleged
paid nearly s2,OCO,0oO more than it was
worth. The officers and directors were
also negligent, 1t is alleged, in not prevent
ing the funds Of the society from being
used for improper and unlawful purposes,
to secure in various States legislation
supposed to be favorable to the society
and to prevent in various States lepisla-
tion supposed to he iniInical to the inter-
estS of the society This it is asserted, was
contrary to law as well az good morals
The plaintiff asks finally that each of the
defendants be- directed to restore TO tho
treasury OF the society the amount of waste
- IL