New-York tribune., 1905-06-26
TO ACT DESPITE REFUND
HENDRICKS TO PROCEED.
Restitution of Equitable OHc'ds
WiU Make No Difference.

working over the evidence taken py Supeii
emf Hendricks. of, the State Insurance Depai.
-, :, b;s investigation of the Equitable Life
,ssurance society," and District Attorney Jerome
also investigating the Equitable proeee9
against the men who Superintendent Hehulicha
saws accumulated profits for themselves at the
scciety,s expense will be only question Oh uas'
The Attorney General and, Alexander l. mason
the deputy charge of MS Office mere, were ~ ~
consultation yesterday, and to-day Mr.. Masoh WIN
begin the actual drawing of the papers against
the directors who, it's alleged plohte2 iioii' ~
syndicate transactions.
Attorney General Mayer will go to Albany to-day
where there will be a long conference between liih
and Governor Higgins Ex-Governor Odei Superlh-
tendent Hendricks and some of the party ieaoes III
both houses of the legislature. The Equitable situa
ton is likely brought at the special session.
and the leaders want to be prepared Dlstrict
Attorney Jerome at -Lakeville yesterday, read
ing the Hendricks report with much interest.
Action by the Attorney General, 1t IS saio 'iu
thoritativey will be delayed or forestaileq pc
of the restitution by President Alexander oi
his profits and the placing of Mr. Hydes pronts III
the hands OF the companys cashier Suits ior tiio
recovery Of the profits will be instituted just the
same and other actions 10 debar the officials from
holding any place any life insurance company In
the State also will be begun. Restitution OF their
profits by the other directors is considered not uh
likely
Paul Morton chairman of the board. will aid the
Attorney General and District Attorney jerome, IL
he should begin proceedings. in every way pos
sible He is determined it has been said Tor hlin'
to have thorough houseceanng. and wants TO
recover as much from the wreck for the policy
holders he can. On his account ne VIII
work within the society to purge IL
MR.. MORTON TO BEGIN WORK.
There will be a meeting of the directors on
Wednesday preceded by meeting of the execu-
tive committee, which will also meet to-day Al
these meetings Chairman Morton will begin his
reorganization of the board and the executive com
mttee. At the meeting Wednesday. 1t is ex-
pected. he will announce his decision as to the
designations of Gage E. Tarbell. George T. Wilson
and W. II. Mcintyre, which he holds.
Mr. Morton in the city yesterday. He saw
Thomas F. Ryan, and had a short talk with Attor
ney General Mayer. assure him that he would
cooperate in whatever action the Attorney General
should bring
James Hazen Hyde spent the day in the country.
He had nothing to about the situation, but his
friends spoke a little for him. denouncing the Hen
bricks report a political document" which
would be torn to shreds' when Mr.. Hyde came to
make his defence to the threatened suits Only
two pertinent questions could be asked to Mr..
Hydes connection with the Equitable, said one of
his friends-was his salary too large. and were the
syndicate transactions Illegal? The salary. he ad-
mftted, was large. but that, he said. surely
crime. The syndicate transactions were legitimate
he maintained, and would be held so by the courts
Superintendent Hendricks's criticisms of the re-
lations OF the trust companies the safe deposit
companies with the society were based on q mis-
understanding, said another friend. These con-
Germs, it said did a large business which in
turn profitable to the Equitable. Their bust
built up by personal solicitation the
part of their officials. Large polcyholders in the
Equitable and business who had transactions
with the society asked to deposit with the
Equitable's subsidiary concerns. The sale of the
stock of the Equitable Trust Company e. H.
Hartman NJ. l.. Schn and others, at figure
lower than the market quotation. to induce
them to do business with the Equitable's companies.
he said.
H. B. HYDE'S WORK PRAISED.
An official of the Equitable. who declined to let
his be used. said that Henry B. Hyde who
was being subjected to criticism for his share
In building up the Mercantile and Equitable
companies personally saved the Mercantile Trust
|. Company from disaster at a critical time in its
history thereby assuring to the Equitable Society
investment which shows profit of 100000
After the panic of 1873 the Mercantile Trust and
Safe Deposit Company, in which the Equitable
held majority Of the stock, shaky, he said
The stock worth about 25 the dollar.
1t thought advisable to reorganize the con-
Germ. selling the safe deposit branch, and confn-
ing the business the other departments strictly
to that transacted by bank trust company,
thus bringing in much needed money The pres-
dent fixed 100000 the maximum figure for the
safe deposit department
Henry B. Hyde guaranteed to get S50,000 for the
new Soon after he began his work of rails
Ing the subscriptions for the capital the bank ex-
aminers inspect the Mercantile Company.
Henry B. Hyde realizing its plight, tried to get
100000 for the safe deposit business to have the
money for the other end of the business. Those
who had subscribed refused to take up their stock
when they heard of bis contemplated raise in price.
so Mr. Hyde personally got the 100000. said the
Official and saved the Mercantile Trust Company
An old poicyhoIder of the Equitable said, with
reference to the large fees paid to attorneys, that
he believed Senator Depew had received almost
81 600 900 in fees and salary during his connection
with the Equitable. Said this pocyholder:
te must certainly have realized many years ago
founder the Equitable obtained him
simply as a director. and not of its attor
neys The Commissioner. in giving a schedule of
the fees Maid attorneys, goes back to 1900 only in
stating the salary Of MIR. Depew but this payment
has been continued for very long period. while
other lawyers have had the fighting to do, and the
Senator's chief duty has been to attend the COM
| mttee and board meetings and accept. in addition
10 his big salary. fees, just other directors have
Fully thirty years ago was of a committee
with the elder Mr. Hyde who went carefully over
pen in hand. paused at each name. When he
reached the of Mr.. Depew he said: What!
Is he getting that yet? Why. thought that was
stopped long ago" We all understood that Mr..
HYDE said this for effect.
He knew very we'll that the payment had never
been stopped and he knew just well that one
would stop it himself. And now, In this ex-
| amina ton of Commissioner 1t light
| of s25O00 She received a large fortune when her
| husband died and required no aid from the Equi-
| table. The blood of the poicyholders may well
boil when they learn of the lavish in which
| the widows and orphans funds have been poured
| These two annual payments to Mr.. Depew,
who never had a wolf at his door. and Mrs. HYDE,
practically lock s1.00o0oo of the Dolicyholders'
funds for they receive in the aggregate $4,000
at is O nj a