The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-04-18

ALTER v. LEE ......... o.. Asst. So TethTy
NH. y. kCk................2 I'd Asst, Secretary
committee from the board can be trusted
to make an impartial vestgation and de-
cision, Every member Of the board Il
either improperly interested in the schemes
| to be investigated or has shown himself
to he incompet ent or unwilling to give the
subject proper treatment
There are some men, like Mr.. Bliss
I whose integrity cannot be questioned,
but even these men have shown themselves
! unable to cope with Hartman and Hyde.
/ The conduct Of all the members OF the
board has shown either corruption or in
, capacity The original protests against
Hyde's reelect ion stated that he had com
riitted acts that rendered him unfit for
reelection not one member Of the board
asked for an explanation or investigation;
in contempt Of the protest Of the officers
Of the society and their charges the board
unanimously reelected Hyde as vice-presi-
dent. This is the same board that ia now
making investigation, only because it has
been forced to do so TO save its face.
The board passed a resolution that the
poloyholders should be given the right to
vote at the earliest possible moment, and
then appointed a committee Of Hyde's ad-
herents to prepare a plan to defeat their
own resolution. Upon this committees
report the board than passed a four year
plan. which not only left the actual control
with HYDE, but il made Hyde's position
even stronger by providing hat no iuIther
right should I've given TO the pohoyholders
without the vote Of three-tifths of the stock,
that is to say Hyde. This plan was 20 pre-
posterous that It was reject ed by the super
intendent Of Insurance. Can board
which would do this be expected to investi-
gate and act properly?
1t is known that many members OF the
board have been Interested in syndlcates
which have made profits out OF sales OF
securities to the society. Some OF these
men. notably Hartman, have been put
upon the investigating committee The
committee II composed partly OF men
who are to investigate charges against
themselves. These men have not the
capacity to understand the immortality
Of their own conduct. MIR. Schii. one
Of the members of the board, after having
sold securities TO the company, JUSTIFIED
himself by saying that he had the legal
opinion Of MIR Jntermyer, showing that
it was lawful and right man who has
to get a legal opinion upon a question OF
morals Of that kind does not know what
morality means. There may be men on
the committee who know that trustee
cannot make a profit out Of the trust FUNDS
IN MS UduUSt llI lllt ildIpl ny VI wv 'NAAA
mittee undertake to justify these transaC-
tions by stating that the society has made
a profit out Of the transactions. In other
words, a trustee can excuse himself by
dividing profits with his cestui que trust. [
The truth il that the society has not made /
a profit out Of these transactions. Some B
Of them show a loss at current market /
prices Most Of the tran sections snow /
that the market price OF the securities 1
to-day il greater than II was when they ,
l. L hn
until the securities have been sold. and TO /
assume to sell the securities, which have I
been put upon the company by these d. /
rectors to-day. would cause panic In
Threadneedle Street,
How can a committee with such ideas
Of financial morality properly investigator
Even one member Of the committee whose
mind is so tainted gives color to the whole
committee The chairman Of the COM
mittee himself has been interested in the
disposition Of securities to the society
Several Of the members Of the committee
are men who have always protested TO be
warm personal friends Of Mr.. Alexander
and yet when Mr. Alexander sought 10
clear the society from corruption, they
turned against him and joined with Mr.
Hyde, for whom every one Of them had
the most supreme personal contempt. .
Are they the men 70 investigate the COM
pany? other members Of the committee
showed themselves TO be utterly sub
servient TO Mr.. Hyde from beginning to
end. Most Of the members Of the COM
mttee are men who are qualified a. direc-
tors only by the fraud Of holding five shares
Of Hyde's stock.
-On April / Mr. Hyde and Mr.. Harri-
man, backed 10y Mr.. Root, entered into an
agreement with the policyholder-' com
mittee and the Superintende Of Insurance
with a. much apparent solemnity as was
ever put into an agreement to put through
the board a plan Tor naturalization in two
years and for a reformation Of the eXecil-
tive committee. u IL plain that they never
intended to keep this agreement Al the
subsequent Hoard meeting Mr.. Bliss moved
to call upon the policyholders' committee
to nominate it, two men, in accordance
with the agreement The HYDE majority
voted down this proposition promptly, 20 to
II. Then Mr. Krech, one OF Hyde's men
who was to be removed from the executive
committee TO make place for the policy
holders committee men produced a care
fully prepared typewriter resolution
which was passed that the two year scheme
OF naturalization be passed by the hoard
and that a committee Of three Hyde men
he appointed to confer with the policy
holders committee as 10 its nominations
after the two years naturalization scheme
had been approved by Supt. Hendricks
On lie face this was violative Of the agree
ment, because II should all have been
carried through at that board meeting,
but the intention TO defeat the whole scheme
becomes plain when It is understood that
il was known TO Hyde and Hartman at that
time that the Lord suit to prevent the
plan was TO be brought
They knew that they could intervene in
that suit, and so prevent the consumma-
ton Of even that part Of the agreement.
and yet at the same meeting q committee
Of the board, which sustained HYDE and
Hartman in this fraud. was appointed
20 investigate the society The person
who expects anything from that committe
will he disappointed
NO LEGISLATIVE MOURN: