The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1905-06-23

Albany, n. :, June 2l.-Ine report
of Superintendent Hendricks of the
state Insurance department to Governor
Higgins upon his investigation of the
Equitable Life Assurance Society was
made public here and in New York to-
night.
1t is described in the title as "a pre-
liminary report and it sharply criti-
cises the management of the society,
as we'll as the new trust arrangement
for voting the stock agreed upon by
Thomas F. Ryan and the three trustees
designated by him.
In conclusion Superintendent Hen
bricks says:
"No superficial measures will correct
the existing evils in this society. A
cancer cannot be cured by treating the
SYMPTOMS. Complete naturalization,
! with the elimination of the stock, to be
paid for at price only commensurate
| with it's dividends, is, in my opinion, the
only sure measure of relief
This report, with copy of the evil
dence taken on this investigation will
be transmitted TO the attorney general
for such action thereon as he may deem
proper.
James w. Alexander, president and
James H. Hyde, first vice president
whose designations were accepted yes.
terday by Chairman Morton, are Sc
verely arraigned in the report. Gage
E. Tarbell, second vice president, is
exonerated, Mr. Hendricks finding that
no substantial evidence appears in sup
lport of the charges against him.
Mr.. Hendricks says it is an oner
question whethc, President Alexander
and the other officers and director:
who participated with him in the tran
sactions of James H. Hyde and asso
ciates," are not disqualified under Sec
ton 36 of the insurance law from here
after holding any Office in a life insuc
ance company. The report character
ICES these transactions as unlawful
Mr. Tarbell's name is not in the lis
of participants in these transactions
The policy holders, however, the fepor
sets forth, are under great obligation
to Mr. Alexander and the other exec
utive officers for demanding the mu
tualization of the society and the re
tirement Of Mr. Hyde from it's contro
A surprising feature of the present
ment is that Mr. Hendricks goes bac]
) to the organization of the Mercantil
Safe Deposit in 1876 by Henry B. Hyde
founder of the society, and declare
that that company which leases its CT
fees and vault rooms from the Equit
able Life Assurance Society does nc
pay sufficiently and profits enormousi
at the expense of the parent company
paying 20 per cent. dividends.
Mr.Hendricks critlcises leases to 9th
er safe deposit companies organized o
Henry B. Hyde as occaioning loss
; the society He says the Equitable pal
$500 a share for Equitable Trust Com
; pany stock, now worth 1888, wherea
, Mr.. Hyde and others secured thc5
: holdings at $3.50. This transactio
. shows, Mr. Hendricks declares, TIA
the officers and executive committee
the Equitable Life were not solicitor
for the society's welfare, but were az
> tive in promoting their own private IL
= terests.
The syndicate transactions OF Jane
8, H Hyde and associates" are reIerre
to as notorious" The total profits
9 the syndicate are placed at s1so,1o4,
!, | which S63, ,731 each went TO james t
+ Hyde and James W. Alexander. Al
other participant was William II. M
r Intyre, fourth vice president OF Il
i Equitable, whose share was s14,42O.
y OF those who took part in these dea
f ings, the report says, should be con
: PEELED to pay back the sums receive
: by them This is only very mild pu'
r ishmeat,- says the report.
e Extravaganza and waste in saiari
q are severely condemned. The lncrea
n in this respect in the executive oiic
= was from $3.50, 100 in 1900, TO S6lo,c
j. in 1904. 1t was found that Preslde
= Alexander's salarJ was advanced FRO
STE, 900 per annurn to 100000 Wltno
y his request, in order that james
Hyde's salary might be increased TO u
,-,x,o 6o1,ro Chaunccy NJ Dep0W. 4