The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-02-16
Mr.. Hartman and the Equitable
Life.

directors of that body. which meets to-
day, demanding that Mr.. JAMES HAzEN
HYDE shall not be reelected vice-presi-
dent of the corporation. 1t is in some
respects the most remarkable and mo-
mentous manifestation that has ever
occurred in the history of great life
insurance company. Mr.. HYDE is a
young man who is ultraconspcuous
in that part Of society which is nothing
if not Conspicuous, and he holds his
present important position in the Equlta-
bile by virtue Of inheritance from his
father. the late HENRY b, HYDE, who
founded the corporation and who died
some years ago, leaving behind him an
excellent reputation in everything which
has to do with the science OF life nsur-
ance. Young Mr.. HYDE also inherited
the control of the stock OF the Equitable
Life Assurance corporation. IL is
stock company, capitalized at 100000
consisting of 1000 shares OF the par
value of 500 each, and limited as to dlvl-
dends to 7 per cent. per annum. Of this
500 900 Mr.. HYDE and his family own
control, that is, they own more than
majority, and it is of common UNDER
standing that they own as much as 10
per cent. of the whole. 1t will be per-
ceived at once that the income which can
be derived legitimately from the entire
capital stock is limited to $1,000 per
annum.
The officials, who include the president
of the corporation, most reputable and
estimable gentleman, recite vaguely in
their petition their objections TO the
reelection Of young Mr.. HYDE. They are
probably sufficient, but 10 US they are
of Indifferent concern. Mr. HYDEs sins,
such as they are are the sins OF youth
and of a kind which large part OF hui
manity is prone 10 envy his capa city to
! enjoy. It is not impossible shat they
have been exaggerated, and that they
arc being exaggerated. for a purpose
which NAV later be better understood.
What concerns every one is tho fact,
which the incident brings into such
unfortunate and deplorable relief that
this great corporation is internally rent
asunder. not by the shortcomings of
young Mr. HYDE. but by selfish and
unscrupulous greed We say that it
| concerns every one because there are
few people who are not directly or in
directly involved or Interested i'll the
| all prevailing question OF life insurance.
! 1t enters into the life Of almost every
| family. from the wealthest TO the hum
/ blest and the Equitable, by reason Of the
/ colossal magnitude of its affairs and the
very enormitv Of it, resources, is perhaps
! the most conspicuous institution in the
whole " orld of insurance and finance. It's
corporate form, az described, has nom
inally served only the purpose of per-
petuating and strengthening the purely
personal character Of its management.
We regard tho situation which has
arisen between Mr. HYDE and his asso-
cates as already involving the most un
fortunate consequences, not only to the
Equitable Assurance Society, but TO the
entire cause OF life insurance.
In the first place. We have the broad
disclosure OF the stock jobbing posi-
biliues of life insurance corporation,
which are inseparable from its pseudo
mutual character. 1t is at once appar-
ent that the Equitable is in no sense a
mutual concern. That the personal and
corporate control has served to conceal
flagitious acts done in the interest of
j those managing the corporation we do
not mean to assert or imply, but that
such has been only too possible is made
plain by the doubt which is universally
EXPRESSED that the board Of directors
will consent TO grant the policyholders
the right TO vote on matters which vitality
concern the administration Of their own
property
All these considerations, however, are
beside the real one which ia at the bottom
of the whole disturbance. It's the propo-
sition on the part of Mr.. EDWARD II. HAIR
RlMAN and his associates TO buy Mr..
HYDE's Equitable stock for s5,OOO, 900,
thereby transferring Mr. HYDEs rela-
lively harmless proprietorship into a
purely personal and speculative control.
II the policyholders Of the Equitable
obtain the power to manage their own
property the stock ownership which Mr..
HYDE possesses has its proper value as
a I per cent. investment of undoubted
security, but nothing more. 1.-THE policy
holders are to be excluded from a share
in the management Of their own prop
erty the speculative value of Mr.. HYDE S
shares makes them cheap on the basis Of
S, 900 600 Of cash for ST. 900 worth Of
actual property
What an entirely new aspect must
the Equitable present to its policyhold-
ors and 20 the insurance departments Of
the several States and countries where
its business is transacted! Five millions
! Of money paid Tor WHAT For fifty
! thousand dollars worth Of a trumpery