Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-06-22
EQUITABLE R011ENNESS IS EXPOSED WHEAT BULBH TODAY

| books of both trust companies as loans
| to the Equitable Life and interest on
| them was charged at the rate of per
| cent. 1t is only fair the report says,
to say that the Equitable Life is a
shareholder in both these trust COM
| panieS and shares in their profits; but
| it is pointed out that James Fl. Hyde
| also is stakeholder in them and has
"a strong interest in seeing to it that
| these trust companies run no risks on
| Them"
The Equitable Life owned about r.,
| 900 shares, or controlling interest in
| the Western National bank, and VAL
| entine p. Snyder. who was its presi-
| dent testified that he could have sold
| the controlling interest at 500 share.
| In the merger, however, the Equitable
Life accepted $40 iii cash and S140 in
| stock of the consolidated bank. OF
this Mr.. Hendricks says:
"Mr Snyder was asked what the
, Equitable society really gained by the
merger and he answered, Nothing ex-
cept promises and prospects, which l
| conclude did not materialize, as he af-
| forwards stated that the present book
value of the National Bank of Com
merce was between 145 and $50.
Notorious" Transactions.
| The syndicate transactions of James
II. Hydc and associates" are referred
| to as notorious" James w. AleXand-
er's name is given in the list of parti-
cipants and it is shown that in various
| bond issues by Kuhn Loeb & Co.,
| Speyer & Co., ]. P. Morgan & Co, and
| Brown brothers the syndicate was rep
resented in the underwriting. The
| total profits of the syndicate are
placed at s1S6,107, of which $66,731
each went to James H. Hyde and
James W. Alexander. Another parti-
| cipant was William H. Mcintyre,
fourth vice president of the Equitable
! whose share was S14,420. 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.
| Mr.. Mcintyre, in testifying before
the state Investigators, held that he
was not member of the Equitables
executive committee and therefore was
| blameless. On this Mr.. Hendricks
| comments as follows:
| His comprehension as to the duties
| of director toward his trust estate
| is not surprising, for he was reared in
the society since the age of and TN
der the immediate tutelage Of the late
Henry B. Hyde"
In records of the Mercantile Trust
company shares, Mr.. Hendricks says:
| THAT on Jan. 4, 1900, 100 shares were
and on the same day fifty shares were
/ cn1d tn II n ENrn OF cho
On December 90 1901, 100 shares were
and on January 8, 1902, 100 shares
were sold to E. II. Hartman at $500
a share
Extravarance' Condemned.
Extravaganza and waste in salaries
are severely condemned. The increase
in this in the executive office was from
s3sO.1OO in 1900 to s613,6Oo in 1904.
1t was found that President Alexand-
er:s salary was advanced from $4,000
per annum to 100000 without his re-
quest, in order that James H. Hyde's
salary might be increa sed to the same
figure. Cheuncey M. Depew, the re-
port shows, is paid 100000 year as
attorney. David B. Hill received So
900 year and Elihu Root for 1905,
$25, 900 also.
AS to James H IIyde's directorates
in various corporations, Mr.. Hendricks
expresses the opinion that he was put
on the boards fsr the reason that he
was the financial head of a great in
surance corporation whose assets We're
so large anG whose ready money was
always available for the purchase Of
securities which these great ''pora-
lions are in the market ely to
SELL
The pension of $4,000 to Mrs Henry
B. Hyde is condemned as unnecessary
and probably illegal.
OF the directors, Mr.. Hendricks
found that only ten of the fifty-two
owned stock in their own right and
most of the others qualified on Hyde
stock.
"Mr. H. c. Frick is the only man"
saws Mr.. Hendricks, who on the rec
ord is not under obligations to Mr.
Hyde, and he qualified by Hyde stock"
OF the financial administration of the
society, Mr.. Hendricks says:
"Tha executive committee transacts
all the business Of the society. The
finance committee is composed of ex-
actly the same men as the executive
committee, With ore additional. dlrec-
tor. viz, MT. Jacob n. Schiff, senior
member of the firm OF Kuhn. Loeb &
Co., which has sold to the Equitable,
according to it's reports, since January
1, 1900, s47,522.0O0 of bonds and ST.
$50 900 of stock"
The report, after the recital of facts
and figures as given above, then takes
up the charges against James W..
Alexander, James H. Hyde and Gage
E. Tarbell, the latter being exonerated.
Of Mr.. Alexander, Mr.. Hendricks says
uncontroverted testimony shows that
he was a participant in the Games
II. Hyde and associates transactions,
that he executed the leases detrinen-
tai to the society's welfare and had
failed to meet the obligations imposed
upon him as chief officer of the So
ciety.
Severe on Hyde.
The summing up against Mr. Hyde.
is more severe. 1t sets forth that he
permitted the society to lose heavily
in it's business transactions with the
Commercial Trust Company:i that he
exacted salaries out of all proportion
to his age. ability or the value of his
services; that he has been accustom-
ed to draw large sums for expenses
on his own unitelnized business; and
that he proceeded to use the society
and it's assets more and more as if
they We're his own, until he was check
ed nv the demand for mutua lizatiOn