The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-04-04
Insurance Department Begins
4 on the Equitable.
HARTMAN WILL NOT TELL
II He Really Owns Any Stock In
Company He Directs.

Bracket Calls for q legislative Inquiry,
but Gov, Higgins i said 10 he AveFse
-CORey Island and Brooklyn Ran.
road Another Case where the Hyde
Directors Invested Equitable Money
In Bonds Sold 20 Them by ThcmsclvcS
President Alexander Issues a state
ment That MIR. Hyde Has Usurped the
Power OF Direction and That Ills Stock
Cannot ne Voted by the Trustees for
Director Not Approved bY Hlmsrlf
The State Department OF Insurance.
began vest erday an Investigation OF the
Equitable Life Assurance Society in pur-
suanoe Of a request made by Presidenf
James w. Alexander as long ago as Feb
| 81. President Alexander announced this
| in a public statement In which he ais
asserts that Mr.. Hyde attempted to usurp
! his powers as president Of the society.
The 100000 policyholders Of the Equitable
| Life will he interested TO read this morning
| that Edward II. Hartman personally and
positively declined yesterday to answer
the following questions:
Are you pollcyholder in the Equltablei"
DO you own any more of the Equitable
stock other than the FIVE shares which
| you hold in escrow for Mr. Hyde to enable
! you to act as a directorY
With Mr., Hartman refusing point blank
10 answer questions Of such vital import
anoe TO the 900 poli0yholders Of the
society il Is necessary to go on and an
noimce that when Mr., Hartman was asked
concerning the purchase by the Equitable
company Of S2l, 1870 4es Of Hartman securi-
ties such as Southern Pacific common
and preferred stock, Union Pacific, Oregon
Short Line bonds, and the bonds Of allied
companies. and the loans amounting 70
Is, $780, 600 on Hartman stocks and bonds,
as announced in the report Of the society
TO the Superintendent ofInsurance on Jan
1. Mr. Hartman said;
Personally / never borrowed a dollar
from the EQUITABLE Life Assurance Society.
The same can be sAid Of the railroad COM
pnnIes In which ! am directly interested.
Personally / have never sold any bonds
TO the Equitable. Neither have my COM
panies disposed Of any securities 70 the
society,"
Mr.. Hartman, Il was remarked, was
careful to say that he had personally
never done 80 and so. Nobody said he
had. The presidents Of great corporations
in Wall Street do not themselves chase about
selling their securities or negotiating loans
on them. That is done by Others. The fact
remains that, according to the society's
report 10 the Superintendent OF Insurance,
the society has made larger loans on Harm
man securities and made larger purchases
than pf CfhaT
securities.
he DIDN'T WANT CHARTER AMENDED.
Mr.. Hartman who holds FIVE shares OF
stock transferred 10 his name by Mr. Hyde
so that Mr.. Hartman can sit in the board
of directors beside Mr.. Hyde, and who Is
not policyhoder in the society and who
with Mr. Hyde has had more 20 say than
any other man of all the ffty-two directors
as TO what disposition should be made OF
the surplus amounting 70 100000, when
asked a few days ago II he did not think
it advisable TO do everything possible 10
amend the charter Of the society so that
the policyholders should como into their
own, replied very vigorously: i would
spend my fortune rather than the charter
should be so amended by the Legislature.
Very reliable people who are interested In
bringing lUt ElNAA AfluAAtAhAN AAAN @ANahAn Ab9
Society 20 an even keel are responsible
for the foregoing information concerning
Mr.. Harriman's remarks and Mr. HarTi-
mans opposition to the naturalization, plan.
Folks who stated that Mr.. Hartman bad
made the remark about spending his fort
une. and others familiar with the situation
united In saying that "Mr. Hartman can
spend his fortune 20 prevent, OF rather In
attempting 20 prevent, the naturalization Of
the company. After he has spent his own
fortune he can borrow another fortune.
and after he has spent that he can 60 on
borrowing several more fortunes, but he
can no more prevent the naturalization Of
the EQUITABLE Assurance Society than
Mrs. Partington could sweep out the At
lantic. The ponoyholders all over the
country are aroused 10 the real situation
The tsct that thirty-eight Of the fifty
directors two are dead) are directors
only because James Hazen Hyde has trans
ferred Ave shares Of his stock 10 each IL
thoroughly we'll understood by the vast
majority Of the 10000 policyholders In the
country.
ISVEspnNTs IN COMFY ISLAND tlSo BROOK
LYN IAILRoAD.
A very interesting chapter was CLEANED
from the report Of the society recently
placed on hle In the Insurance Department
at Albany. Il u In this report that the
loans on Hartman securities aad pur-
chases Of Hartman securities were dis
closed. The new chapter from the report,
tho report which was made up by the HarTi-
man board Of directors, shows that under
their Management the Equitable Assur-
ancs Society Il the owner Of the following;
Five hundred thousand dollars Coney
Island and Brooklyn registered a., bought
at par; 81, iSs, 900 Coney Island and Brooklyn
hrst consolidated 1913 -, bought at 81 ,O9o,-
TO: $4,000 Consy Island and Brooklyn
first mortgage a.
The report Of the Coney Island and Brook
Ign Railroad Company 70. the Railroad
Commissioners on June 30, 1903, shows
thn f,,pdad debt ~ tha cornnanV then TO