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

1 SOCEc1N pdiA Oul luOu-
sands of dollars for additions and i'm
| provements in these vaults, safes,
places of deposit, more than it has re-
| ceived and has also incurred all ex-
pense for light. heat, water, elevator.
| 1anitors, watchmen, cleaning, etc. With
| this sort Of jug handled lease it is
not surprising that the real estate pays
| the society only 1-5S per cent on the
whole building, while the stock OF the
security Safe Deposit company pays
Its owners Is per cent on its capitaliza-
ton of $oOO,OOO."
By this time Mr.. Henry b. HYDE
concluded that he could improve on
the Boston lease by $1,000 Il year in
his favor as well as that of his friends
and to the loss of the Equitable. There
fore prior to Nov. 8, 1888, he caused
the Equitable society to buy an Office
building in st. Louis and organized a
corporation which he named the Mis-
souri, Safe Deposit company, and on
Nov. o, 1855, the society made a lease
to this corporation. BY this arrange
ment the society realized only 1.S6 per
cent on its valuation of this build
ing (much less than the Investment.
while the tenant has had its premises
practically rent free and has received
very large profits from the time of its
souri, Safe Deposit company was sold
to the society in the year 1902.
Leases All Unfair.
''The leases by the Equitable socie-
- IL g.
MES" says Mr.. Hendricks, ARE very
much alike. They all contain provi-
sions with reference to arbitration in
case OF \ disagreement between the
parties as to the expenditures of the
lessee. Three arbitrators are to be
chosen, one by the lessee, one by the
lessor and the third by the two so
chosen, and the decision of such arbi-
traitors shall be final and conclusive up
on the parties. When it is clearly I'M
derstoOd that the gentlemen who cauS-
ed the society TO make these Tong
leases at great loss to the society are
the same men who reap the profits
from the leases it is manifest that if
ever an arbitration question should
come up as a matter of form the So
ClelN WOulu HOl DS IOOkcu
after. That is all that need be said.
"TheSe leases are all so one sided,
unfair and unjust to the society that
it is practically impossible to convey
a clear idea of all their provisions by
any extract which may be made, for
1t is difficult to believe that trustees
of sacred trust would make such
contracts against the welfare of the
society and IN their own interests"
Mr.. Hendricks then shows that the
men who prOfited by these transactions
were Mr.. Hyde and his friends associ-
ated with him in the control of the So
ciety. Continuing, he says:
This is Il brief statement of n few
of the transactions between the Equi-
table society and seven of the ten cor
porations which are advertised as atfil-
lated companies. Time has not per-
mitted even a partial investigation of
its business relations with the other
thrce-viz, the Lawyers Title lnsur-
ance company, the Lawyers Mortgage
Insurance and the Franklin National
bank.
But the facts here stated disclose
a very decided tendency ON the part of
some of the directors and officers of
the society TO sacrifice its interests in
order that they may reap the profits
through the media Of these corpora
tons. The opportunity was there as
well as the disposition, and 1t would re-
Quire a much more thorough investiga-
ton than have been able to make 10
determine the full amount of the loss
Tha of flapir
hands.
Syndicate Transactions In Metropolitan.
1.-The syndicate transactions conduct
ed by James ii. Hyde and associates
have been so well advertised through
the press that they have become noto-
riOus. According TO the evidence of
William Ii. Mcintyre, the letters of
Kuhn. Loeb 81 Co. to Mr.. Hyde and Mr.
Hyde's correspondence. copies of which
he submitted to us, the following are
the material facts relative to one of
these transactions:
Metropolitan Street Railway Per
Cent Bonds of POOP. Syndicate.-On
June IL. 1902. Kuhn. Loeb & Co. al
lotted to James H. Hyde and associ-
ates a participation in this syndicate
of 81 O0O,OO0 at "a and interest. June
Is, 1902, the executive committee of the
Equitable society recommended the
purchase of $1,000,O00 of these bonds at
97I2 and interest. June 90 1902, the
purchase OF these bonds was reported
to the executive committee at 9T1a and
interest. less one-half per cent. and on
July 5. 1902. the bonds were delivered
70 hn law nh A.