Fergus County argus. [volume] (Lewistown, Mont.) 1886-1946, 1905-06-28
Head Of New York Insurance Depart.
nent Hands Out Some Warm
Ones to the Managers.
ALEXANDER AND HYDE SCORED
Looked Out for Themselves and Took
Thousands That Should be Re.
turned to the Company.

Governor Higgins upon his inyestiga-
ton of the Equitable Life Assurance
society has been made public here
and in New York
1t is described in the title as a "pre-
liminary report" and it sharply criti-
sizes the management of the society,
as well as the new trust arrangement
for voting the stock agreed upon by
Thomas F. Ryan the three trustees
designated by him.
Superintendent Hendricks said
NO superficial measures will cor
rect the existing evils in this society.
A cancer cannot be cured by treat
ing the symptoms. Complete mutual
ization with the elimination of the
stock. to be paid for at a price COM
mensurate with its dividends is. in
my opinion. the only sure measure of
relief.
This report with a copy of the
evidence taken on this investigation
will be transmitted to the attorney
general for such action thereon as he
may see proper"
Scores Them Both.
James w. Alexander. president, and
James H. Hyde, first vice president.
respectively, whose designations were
accepted yesterday by Chairman Nor
ton are severely arraigned in the re-
port. Gage E. Tarbell second vice
president, is exonerated, Mr.. Hendricks
finding that no substantial evidence
appears in support of the charges
against him. Mr.. Hendricks says 1t
is an open question whether President
Alexander and the other officers and
directors who participated with him
in the transactions of James II. Hyde
and associates are not disqualified
under section SO of the insurance laws
from hereafter holding any office in
life insurance company. The report
characterizes these transactions as I'M
lawful Mr. Tarbell's name is not in
the list of participants in these trans
actions. The policy holders however,
the report sets forth. are under great
obligations to Mr. Alexander and the
other executive officers for demand
ing the naturalization of the society
ana me retirement VI MI. llNtC II oAiA
its control.
Another feature of the presentment
is that Mr.. Hendricks goes back TO
the organization of the Mercantile
Safe Deposit company in 1876 by Hen
ry B. Hyde founder of the society,
and declares that the company, which
leaves its office and vault room from
the Equitable Life Assurance society,
does not pay sufficiently and profits
enormously at the expense OF the par
ent company. paying 20 per cent divi-
dends. The safe deposit lease has 80
years TO run.
OF Henry B. Hyde and the organic
alton of the safe deposit and other sub
sidiary companies, Mr.. Hendricks
says:
HE did not neglect his own inter
ests or those of his immediate asso-
ciates and dependents in the society.
The relations of the Equitable and
its auxiliary companies are discussed
at length. OF Mr.. AleXander's share
in leases to these companies Mr.. Hen
bricks says:
James w. Alexander says he sign
ed these leases under the direction of
Henry B. Hyde; | believe it to be
fact. and it is the most charitable
construction which can be placed up
on his acts"
A loss TO the Equitable resulted from
the consolidation of the Western Bank
of Commerce of New York with the
Western National Bank of New York,
according to the report. The Equitable
Life owned about 10000 shares, or a
controlling interest in the Western
National, and Valentine P. Snyder,
who was it's president, testified that he
could have sold the controlling inter
est at $40 Ga share. In the merger
however the Equitable Life Assurance
Society accepted SO in cash and $40
in stock of the Consolidated bank.
Transactions Are Notorious.
The syndicate transactions Of
James H. Hyde and associates are
referred to as notorious" James w
AleXander's name is given in the list
of participants and it is shown that
in various bond issues of Kuhn, Loeb
& Co., Speyer & Co, ]. P. Morgan X
Co. and Brown Bros. the syndicate
was represented in the underwriting
The total profits of the syndicate are
placed at $1SG1u7. of which S63,I31
each went to James II, Hyde and
James w. Alexander. Another partic-
ipant was William H. McIntire, fourth
vice president of the Equitable, whose
share was $14,420. All of those who
took part in these dealings. the report
says, should be compelled to pay back
the sums received by them. This
is only very mild punishment" says
the report.
In the record of Mercantile Trust
company shares Mr. Hendricks found
that on June +, 1900, one hundred
shares of that companys stock We're
sold to George J. Could at $50 a share
and on the same day fifty shares
were sold to H. c. Frick at $3.50 per
share. On December 90. 1901, one
hundred shares We're sold TO NJ. l..
Schiff at 5000 share AMI on January
2, 1902, 100 shares We're sold TO E. H.
Hartman for $500 share.
The report shows that on the adj
vice of Mr.. Hendricks, Kuhn, Loeb &.
Co., repurchased from the Equitable
s1.00000O of Missouri Pacific gold IS
of 1902, to which Mr.. Hendricks oh,
jected because they We're collateral
bonds.
Extravaganza and waste in salaries
are severely condemned. The in,
crease in this respect in the executive
was from S3SU,Se0 in 1900 to 1913 Zoe
in 1904. 1t was found that President
Alexanders salary was advanced from
$4,000 per annum to 100000 without
his request in order that James H