Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1905-07-07


profits:
James II. Hyde ............... s6s. 81 AZ
James W. Alexander ............ IS 7H %
George h Squire .-.--............. I4.430. 50
William H. Mcintyre .............. II. 400 so
IA c. Deming ...-..-............... 1915 -
Valentine p. Snyder ............... 1910 50
Alvin W. Krech ...........-..... 30Gs n
Louis Fitzgerald ............... "a 40
The Equitable Trust company. 61s1 20
The Western National bank ... son OS
Commercial Trust company OF
Philadelphia .........-........... s.O21. os
Franklin National bank ...... son O3
Mercantile Trust company ........ 3.140. IS
Total .s1S6. 1O7 IA
THE corporations mentioned were
taken in and given a small participa-
ton because they were affiliated with
the Equitable society, and the other
associates were interested in their div
idends. All of these gentlemen who
divided these profits were directors of
the society and six Of them members
of the executive and finance commit.
tees. AS syndicatOrS they took these
several allotmentS of securities, and as
directors of the society they caused it
to purchase of Kuhn. Loeb & Co. sub
lnG WHICH
were allotted to them. To illustrate
from the first transaction above set
forth:
ION June II, 1902, Kuhn, Loeb &
Co. allotted to James II. Hyde and as
SociateS q participation of $1.000,000
in the Metropolitan Street Railway
per cent bond syndicate at "a, and one
week thereafter the Equitable society
bought the same amount at about 81.
This participation was allotted to these
men because it was known they could
dispose Of them, and when they ac
Cepted the participation they knew
where they could sell them.
Society Took Risks For Nothing.
why should the officers of the so.
ciety make this 3 per cent profit?
Why not allow the society itself this
participation and save this $4,000.
since it was the intention that it should
buy the bonds and take the risk? That
was not contrary to its rules, for it
was given a small participation in
some of these syndicates. The simple
truth is that they preferred to make
these several profits themselves.
VII. I1N uc dSSOGlultS EdlSe II1e
point that the society did not lose by
the purchase of these bonds, but that is
no excuse for them. If the market
went down the society would have lost,
and if it went up the society should get
the profit. They were trustees. Their
first obligation was TO the trust es-
tate which they represented. They
should not be permitted TO make money
for themselves at the loss or even at
the risk of the society. The profits
which they and each of them realized
belong to the society. Mr.. Hyde and
Mr.. Alexander seem to have thought
SO or were so advised Ivy their counsel
after the trouble began, for one of
these gentlemen turned over to Mr..
Murray as trustee all and on the other
a large part of his profits from these
transactions. All of these men should
be compelled to pay back to the So
ciety these several amounts with inter
est This is only very mild punish
ment. And the affiliated companies
should also pay to the society the sew
eral amounts received by them less any
portions thereof which the society has
received in the form of dividends"
Salaries.
Referring to salaries, the report says:
An examination of the society's sal
airy lists cOnVinces me that the Ordina-
ry clerks and employees are not over
paid. So far as l have been able to
learn or observe they are faithful and
competent and earn their money. The
extravaganza and waste in the form of
nnrGnnal in no
salary list of the high executive officers
and their immediate and favored as
siStants.
The following schedule shows the
total amounts paid for salaries to ex-
ecutive officers since 1900:
1900. $3.50 100 1903 ........ $55s 600
1901 ....-..... APP 300 1904 ............ 613 COO
1907 49l,100
Mr.. Hyde was advanced in salary
the most rapidly. He graduated from
college in 1898 at the age of twenty
two. In 1900 he drew q salary Of $780,
600, also in 1901; in 1902 his salary
was advanced to $4,000, and in 1903.
at the age of twenty-seven, it was
jumped TO an even 100000.
The salaries of the president and
vice president were fixed by the exec
utive committee. In this case the mat
ter of these salaries was referred to Il
subcommittee composed of the Hon.
Chauncey NJ. Depew and Valentine +.
Snyder.
1T should be borne in mind that in
addition to this salary which 1Ir. Hyde
has been drawing from the Equitable
society he has been drawing a salary
of $4,000 from the Equitable Trust
company, $500 from the Commercial
Trust company of Philadelphia, $4,000
from the Mercantile Trust company
and 81 900 from the Mercantile Safe
Deposit company-all told, S12S,OOO
year, although he has spent several
months in each year in Europe.
in passing it mayl not be inappro-
pirate to mention a little matter of di-
rectors' and committees fees. Mr.
MCINTYRE saws no il a HiFpFfOr in flllT-